Professional Documents
Culture Documents
Life Insurance Agents
Life Insurance Agents
2. RESEARCH METHODOLOGY
9
a) Objective Of Study 9
b) Research Methodology 9
c) Sources of Study 9
d) Limitations of study 11
3. COMPANY’S PROFILE 12
CONCLUSION
1
BIBLIOGRAPHY
INSURANCE is such a method which provides security and protection against financial loss
upto some limit. It is a means of shifting the risks to insurer in consideration of a nominal cost
called premium.
a) “INSURANCE AGENT” means an insurance agent licensed under section 42 who recieves
or agrees to receive paymet by way of commission or other remuneration in consideration of his
soliciting or procuring insurance business including business relating to the continuance, renewal
or revival of policies.
b) Life Insurance Business: “Life Insurance Business” means the business of effecting
contracts of insurance upon human life, including any contract whereby the payment of money is
assured on death (except, death by accident only) or the happening of any contingency dependent
2
on human life, and any contract which is subject to payment of premiums for a term dependent
on human life and shall be deemed to include-
1. The granting of disability and double or triple indemnity accident benefits, if so provided
in the contract of insurance.
2. The granting of annuities upon human life, and
3. The granting of superannuation allowances and annuities payable out of any fund
applicable solely to the relief and maintenance of persons engaged or who have been
engaged in any particular profession, trade or employment or of the dependents of such
persons.
Till date, only 20% of the total insurable population of India is covered under various life
insurance schemes, the penetration rates of health and other non-life insurances in India is also
well below the international level. To tap the rest of the 80% of the insurable population in India,
the insurance organization needs a huge and varied Distribution channel to sell the varied plans
to the people . Distribution accounts for the largest element in insurers’ costs and impact the
profitability. Distribution capabilities of any firm effects the product design in insurance due to
the huge feed back from the customer.
Distribution channel strength have a direct impact on the organization’s image . Highly
professional and integrated distribution channel of any firm increases the credibility and
reliability of the product of the firm in the market.
Indians, who had always seen life insurance as a tax saving device, are now suddenly turning to
the private sector and snapping up the new innovative products on offer. Now the insurance
policies are not only the life saving and tax saving device but it has more to offer to the customer
in the form of Investment in the market. Now the policies are the combinations of the Life
Insurance and the Investment and there by these are known as Unit Linked Insurance Plans or in
short ULIPS. Now the agents are not only the Life Insuracne agents , they are the professional
advisor also. Now they are called the Financial Advisor’s who advice their customers to invest
their money in the appropriate policy which suits the needs of their customers. For selling and
providing highly technical knowledge about the product the insurance industry has to make use
of its highly dedicated and knowledgeable distribution channel.
3
Earlier the agents were the only and the primary interface of insuring lives of the people and
these agents were the sole distribution channel of the Life Insurance Organization .
But with the liberalizing Indian community and the advent of the foreign company’s in India;
brought the alternative channel of distribution. With the help of these alternative channels these
private firms has penetrated the market to the great extent. Innovative products, smart marketing,
and aggressive distribution have enabled fledgling private insurance companies to sign up Indian
customers faster than anyone expected. Due to its varied distribution channel the private
insurance player in 2007-2008 these organization’s has taken over the 25%(approx) of the
market share in India and the LIC had came down to 75% from its market share of 87.04 % in
2006-2007.
4
ING VYSYA 14043 7720 11832 3,914 1135
LIC 472076 353773 62758037 479186 442680
MAX NEW YORK 12549 6998 10308 5770 2620
METLIFE INDIA 8343 3374 3196 1463 417
KOTAK
MAHINDRA 7374 2976 6736 3785 1348
SBI LIFE 5112 2175 4281 2224 719
SAHARA INDIA
LIFE 81 0 0 0 0
SHRIRAM LIFE 5937 0 0 0 0
Sub Total 721696 482068 62954910 571160 476872
Due to their huge work force of Financial Advisors the ICICI PRU have claimed 27.7% , Bajaj
Allianz have 22.0%, SBI have 8.8 % , HDFC life have claimed over 8.0% of the retail insurance
in India . The market share in the private retail market in life insurance in India as on April 2007
is shown in the following pie chart.
5
d) International Recognition Of Agents:
1)About MDRT:
The Million Dollar Round Table, abbreviated MDRT is a trade association formed in 1927 to
help insurance salespeople and financial advisors improve their business practices and increase
sales. MDRT is the esteemed pool of advisors who had achieved the yearly goal of collecting the
premium of about 27,14,400 in Indian Rupees OR earned the commission of about 6,78,000 at
the end of each financial year. The amount may vary from country to country in their respective
currency. MDRT membership is a coveted career milestone. It indicates achievement and brings
deserved recognition for the individual. For many, MDRT opens the door to a new world of
knowledge, motivation and professionalism.
2) About COT:
Court of the Table members distinguish themselves within the industry through their superior
performance by producing at a level three times that of MDRT membership requirements.
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Achieving membership in MDRT’s Court of the Table is a career milestone attained only by
those who have demonstrated exceptional professional knowledge, client service and ethical
conduct. Each year, more than 3,500 MDRT members qualify for the Court of the Table. For
becoming the esteemed member of this club the agent have to collect the premium of 81,43,200
in Indian Rupees OR have to earn the commission of Rs 20,35,800 at the end of financial year.
This amount can differ from county to country in their respective currency.
3) About TOT:
Top Of the Table is last and the highest that any advisor can go. These agents are the actual super
achievers in the field of the insurance. An agent qualify for the TOT when he/she collect the
premium of about Rs 162,86,400 OR have earned the commission of Rs 40,71,600 which is
almost six times of what the MDRT collect or earn. This amount can be different from country to
country in their respective currency.
MDRT commission requirement of INDIA and some of the neighboring countries are given in
the table below. The amount given with in the table Is in the currency of the respective country.
Conversion factors have no relationship to currency exchange rates and are used only to
standardize MDRT processing.
MDRT Qualifying
Membership Court of the Table Top of the Table Commission
COUNTRY Commission Commission Commission Conversion
India 678,600 2,035,800 4,071,600 8.2958
China 149,400 448,200 896,400 1.8264
Pakistan 913,600 2,740,800 5,481,600 11.1687
Bangladesh 993,100 2,979,300 5,958,600 12.1405
Sri Lanka 1,486,600 4,459,800 8,919,600 18.1735
Nepal 777,500 2,332,500 4,665,000 9.5048
Following are monthly goals in Indian rupees to keep you on track for the 2008 Million Dollar
Round Table, Court of the Table and Top of the Table.
7
TABLE 3: Month wise Commission for MDRT, COT and TOT
According to the rule and regulation given by IRDA an FA has to go through the theoretical
training for about minimum of 100 hrs to be completed in all most time period of 18 to 19 days.
During the training they are provide about the knowledge about the market and the basics of the
insurance .There is a further focus on soft skills such as communication, managing long-term
relationships and selling skills, which are very relevant in a service-driven industry like life
insurance. Just before the two days before the examination the probable are given the revision
session through the crash course of Two days. Revision session ensure that the candidates
thoroughly understand the course contents and are well prepared for the licensing examination.
This licencing examination is called ‘Pre-Recruitment Examination for Life Insurance Agents’.
The Insurance Organization at Jalandhar goes for In-house training or Out source their training.
For Example the LIC, METLIFE, KOTAK MAHINDRA etc goes for in house training and
recruit almost 750 FA’s in a year, but the private insurance organization like ICICI, BIRLA
SUNLIFE,MAX NEWYORK etc. outsource the training to the institutes recognized by the
IRDA and affiliated to the Insurance Institutes of India (I.I.I). At Jalandhar the training is
outsourced to the Dream Weaver institute,V2A institute, Federal institutes . The in house
8
training about the product is also provided to these agents in the various agency of these
Insurance organizations. Apart from the this recommended training of 100 hrs the Financial
Advisors are also given the product training to the FA’S by these insurance organization at there
own agencies.
Any Financial Advisor can be a part timer or a full timer agent. Minimum qualification set by
IRDA for being an FA in Urban and Semi Urban area must be that he/she must be of minimum
18 year of age and must posses the minimum qualification of Plus Two standard. And for the
person belonging to the rural area he/she must have attain the minimum age of 18 year plus he/
she must have the minimum qualification of 10th standard. But most of the private Insurance
Organization has their own preference of appointing FA’s. For instant; METLIFE prefer the
person who is married and of age 25 and above, because the person at this age is more
responsible to his profession.
Life Insurance agents have to work without assistant and have to set targets and time for their
own work. So it is needed to motivate them so which can help them in keep in working for the
common cause of the company. All the life insurance companies at Jalandhar have their own
method of motivating their Agents and during the whole process they help in building the career
for the Agents. At these insurance organisation the Financial Advisors are motivated by various
remuneration and paid bonuses for earning the specific premium for the organization. Financial
Advisors are constantly recognized and rewarded for their performance. Numerous competitions
throughout the year promote healthy competition amongst agents and recognition for their
efforts..
Depending on the level of business the agent achieves in a year, he or she is rewarded by the pre
set bonuses by the company.
9
RESEARCH METHODOLOGY
a) Objective of study
1) To know the penetration of the various Life Insurance Organization in Jalandhar.
2) To know the extra benefits that any Financial Advisor or Agent is provided in the
various insurance Organization.
3) To know the career opportunity for the advisors in there organization.
4) To know the Scope for Financial Advisors in the present scenario of competition in the
Jalandhar.
5) To suggest the method to increase the strength of Financial Advisors in MetLife jalandhar
b) Research Methedology
In Jalandhar the number of policies sold in different years has increased with the increase
in the number of the Financial Advisors. The organization having the largest number of work
force of financial advisors sells larger number of policies in a year.
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The present study is the attempt to analyze the benefits and the career opportunity of the
Insurance agents in Jalandhar and what is the effect of strength of Financial Advisors on the
business of any Insurance Organization operating in Jalandhar.
c) Sources of study
The study is based on the Secondary data collected from the various organizations in
Jalandhar. The data is confidential in nature and is not published in any of the website and in any
of the news papers. The data thus here within is collected by using various links in the other
organizations in Jalandhar. For measuring the effect of Financial Advisors on the policies
figures I have made use of the technique of Correlation. The number of policies sold and the total
numbers of advisor from year 2001 to 2007 is collected. Correlation among the number of agents
and the number of policies sold is calculated by using the formula of Karl Pearson’s coffecient of
correlation. The positive value of the correlation indicates that the number of agents will affect
the number of policies sold in a year and thus the company will have greater penetration in the
market. The correlation is calculated for only those organization whose working period in
Jalandhar is at least of two years.
But these policies sold are from all channel of distribution, thus we can not say that the data is
fully correlated. Hence for measuring the significance of this correlation value is tested by using
t-Test. Hence the Null Hypothesis is set that the correlation coefficient of the population is zero.
The value of the ‘t’ is compared with the table value at 5% of significance. If the calculated
value is less then the table value we will accept the null hypothesis of uncorrelated population.
11
______
d) Limitations of study
1) The Data about the financial Advisors and number of policies in a year for various
organization is not available in the print or any other media. It is taken from the various
2) Most of the companies have just started their business in Jalandhar, so the data collected was
3) Information about the recruitment and the benefits of some of the insurance organization was
4) The information about the benefits and career opportunity has to be gathered by personal
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COMPANIES PROFILE
MetLife PVT. LTD. : For 137 years, MetLife has been insuring the lives of the people.
MetLife’s success is based on our long history of social responsibility, strong leadership, sound
investments, and innovative products and services. The origins of Metropolitan Life Insurance
Company (MetLife) go back to 1863, when a group of New York City businessmen raised
$100,000 to found the National Union Life and Limb Insurance Company. MetLife was the
company who insured the lives of million of soldiers of America and UK in Second World War.
It was the only company to settle all the claims of insured person who lost their lives during
September 11 attack on twin Tower in America.
In 1909, MetLife Vice President Haley Fiske announced that "insurance, not merely as a
business proposition, but as a social program" would be the future policy of the company. The
vision of MetLife is, “To provide financial freedom for every one.”
METLIFE covers millions of the people worldwide and pays out billions of dollars to policy
holders. MetLife is one of the fortune five hundred company’s and as on 2007 METLIFE is at
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37th position with revenue of 53,275.0$ million and profit of $ 6,293.0 million. As a testament
to its position of the leadership, MetLife insures 88 companies of the FORTUNE 100
COMAPIES. It has a large global market in more than 12 countries. In 2006, MetLife appointed
""C. Robert (Rob) Henrikson"" chairman of the board of directors, president and ""chief
executive officer"" of MetLife, Inc. Henrikson was appointed ""CEO"" on March 1, 2006 and
chairman of the board on April 25, 2006.
MetLife is undisputed leader of the insurance industry, insuring every fifth man, woman, and
child in the United States and Canada. On the way it supported the country and the community in
many ways. For example,
a) Major Achievements:
• In 1980, The company completes the largest single building purchase (Pan Am
Building) in history.
• In 1998, The board of directors authorizes demutualization.
• In 2000, Metropolitan Life Insurance Company (MetLife) launches the seventh
largest IPO ever held in the United States
• In 2001, MetLife was the first insurance company to establish a financial holding
company with a nationally chartered bank. Leveraging its unparalleled
distribution channels, MetLife entered the retail-banking arena with the launch of
MetLife Bank.
• In 2005, Working Mother magazine honored MetLife by naming the company
one of the "100 Best Companies for Working Mothers," for the seventh
consecutive year.
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• In early 2006, MetLife was also named to the National Association for Female
Executives’ annual list of Top 30 Companies for Executive Women.
It got registered on August 6th ,2001 with IRDA. In India, MetLife India was incorporated on
August 6th 2001, and aims to differentiate itself through customized need based selling, simple
and innovative products, and technology-backed service experience, to tread its path to build
financial freedom for everyone. MetLife India has it’s head office at Basavanagudi, Banglore
and is headed by M.D Mr. Rajesh Relan. MetLife in India has its presence in 72 major cities and
have 90 offices in these cities. MetLife India has the strong work force of 25000 Financial
Advisors in India and is set to reach up to 30,000 by the end of this year. Beside this MetLife
India has the Bancassurance distribution channel and has tie-ups with Axis bank (UTI Bank),
Jammu & Kashmir Bank, Dhanalaxmi Bank and Karnataka Bank, Bank of Punjab to offer its
range products to the customers of these banks. In addition to these institutions the company has
partners which are corporate agents and brokers like Karvy Consultant Ltd, Mini Muthhoottu
Financiaries Ltd , Hexagon Indurance Servicies Pvt Ltd, Geogit Commodities Pvt Ltd and MLM
Consulting Pvt. Ltd. are few of the corporate partner in India.
c) Services:
The Company serves group benefit products and Individual benefit products. International
segment serves these products to groups and individual in the Asia/Pacific region, Europe, and
Latin America. The company's reinsurance business operates as Reinsurance Group of America,
but serves customers around the world. In India out of total lives covered by metlife , 80% of
lives are covered under group policies that provide 10% of the premium income. Metlife India
covers 40,000 employees of IBM under a group cover and the Bussiness giants like SATYAM,
ORACLE , BANK OF AMERICA,PANTALOONS,GAS AUTHORITY OF INDIA LTD,
CENTURION BANK OF PUNJAB,J&K BANK,HCL TECHNOLOGIES are also some of the
clients of group policies.
15
d) Products Offered by MetLife In India :
Met life has a great variety of products, ranging from Life insurance, Long Term Care Insurance
and retirement plans. These product are both traditional and ULIP plans which offers customer
both; life insurance and return on there investment. The List of these product is given below:
Table 6 : List of Product as on 08-08-2007
Financial
Year Name of Insurer Name of the Product
Met Life India Insurance
2001-02 Co. Pvt. Ltd. Met 100 (Non-Par)
Met Life India Insurance
2001-02 Co. Pvt. Ltd. Met Shanti
Met Life India Insurance
2001-02 Co. Pvt. Ltd. Met Sukh
Met Life India Insurance
2005-06 Co. Pvt. Ltd. Met Sukh
Met Life India Insurance Single Pay - Mortgage Protection Plan
2002-03 Co. Pvt. Ltd. - Non Participating
Met Life India Insurance
2002-03 Co. Pvt. Ltd. Met Junior
Met Life India Insurance
2002-03 Co. Pvt. Ltd. Met Junior MB
Met Life India Insurance
2002-03 Co. Pvt. Ltd. Met Mortgage Protector
Met Life India Insurance
2002-03 Co. Pvt. Ltd. Met Platinum - Par Endowment
Met Life India Insurance
2002-03 Co. Pvt. Ltd. Met Gold - Par Endowment
Met Life India Insurance
2002-03 Co. Pvt. Ltd. Met Junior - Par Endowment
Met Life India Insurance
2002-03 Co. Pvt. Ltd. Met 100 Gold - Par WL
Met Life India Insurance
2002-03 Co. Pvt. Ltd. Met 100 Platinum - Par WL
Met Life India Insurance
2002-03 Co. Pvt. Ltd. Met Group YRT
Met Life India Insurance
2003-04 Co. Pvt. Ltd. Met Group Life
Met Life India Insurance
2002-03 Co. Pvt. Ltd. Met Gold - Non Par Endowment
Met Life India Insurance
2002-03 Co. Pvt. Ltd. Met Platinum - Non Par Endowment
Met Life India Insurance
2003-04 Co. Pvt. Ltd. Met Bhavishya
Met Life India Insurance
2003-04 Co. Pvt. Ltd. Met Suvidha (Par)
Met Life India Insurance
2003-04 Co. Pvt. Ltd. Met Suvidha (Non-Par)
2003-04 Met Life India Insurance Met Pension (Par)
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Co. Pvt. Ltd.
Met Life India Insurance
2003-04 Co. Pvt. Ltd. Met Suraksha
Met Life India Insurance
2003-04 Co. Pvt. Ltd. Met Suraksha TROP
Met Life India Insurance
2004-05 Co. Pvt. Ltd. Met Saral
Met Life India Insurance
2004-05 Co. Pvt. Ltd. Met Gratuity
Met Life India Insurance
2004-05 Co. Pvt. Ltd. Met Ultimate
Met Life India Insurance
2004-05 Co. Pvt. Ltd. Met Family Income Plan
Met Life India Insurance
2004-05 Co. Pvt. Ltd. Met Smart
Met Life India Insurance
2004-05 Co. Pvt. Ltd. Met Advantage
Met Life India Insurance
2005-06 Co. Pvt. Ltd. Met Credit Life
Met Life India Insurance
2006-07 Co. Pvt. Ltd. Non Par - Immediate Annuity
Met Life India Insurance
2006-07 Co. Pvt. Ltd. Met Smart Plus
Met Life India Insurance
2006-07 Co. Pvt. Ltd. Met Smart Premier
Met Life India Insurance
2006-07 Co. Pvt. Ltd. Met Advantage Plus
Met Life India Insurance
2006-07 Co. Pvt. Ltd. Met Smart Plus - Single Pay
Met Life India Insurance
2006-07 Co. Pvt. Ltd. Met Smart Premier - Single Pay
Met Life India Insurance
2006-07 Co. Pvt. Ltd. Met Ultimate Plus
Met Life India Insurance
2006-07 Co. Pvt. Ltd. Met Ultimate Premier
Met Life India Insurance
2007-08 Co. Pvt. Ltd. Met Easy
e) Future plans:
1) MetLife India has a goal of 5 million customers by 2010, and has aggressive growth plans of
100 per cent year-on-year growth for the next 2-3 years.
2) The company plans to expand its agency and office networks to enable the growth in India.
3) It also plans to expand by setting up bases in not only metropolitan cities, but also Class B and
Class C cities and parts of rural India.
4) MetLife International plans to increase its stake in the Indian subsidiary MetLife India, by
infusing capital to the tune of US$ 100 million over the next 5 years, as it sees huge potential for
17
growth in India. It also plans to capture a market share of 5 per cent in the Indian insurance
sector.
In 1868, the company decided to focus on the life insurance business. A new company was
chartered to sell "ordinary" insurance to the middle class. The founders chose the name because
they had been most successful in New York City, or the "Metropolitan" District.
In 1879, MetLife President Joseph F. Knapp turned his attention to England, where "industrial"
or "workingmen's" insurance programs were widely successful. MetLife imported English agents
to train the agency force in America . The MetLife agent became an important person in the lives
of these striving families. Manuals instructed agents to call at a home at the same time each week
to ensure familiarity and contact. In the process of collecting premiums, insurance agents
listened to the problems, concerns, and hopes of their clients. So successful was this approach
that by 1909, MetLife became the nation's largest life insurer in terms of insurance in force, a
leadership position we continue to hold today in North America.
MetLife’s Financial advisors build financial freedom for thousands of individuals across the
country, allowing them to relax, enjoy. They have the desire to help others, have a genuine sense
of caring for their customers and above all have an immense passion for learning and exceeding.
In India MetLife have the strong work force of 25000 financial Advisors. MetLife India started if
operation at the end of December 2006 and in this short period of 8 months , now it has the force
of about 350 licensed Financial Advisors and which are increasing day by day. To start a career
as a Financial Advisor with the MetLife India, it is not necessary to have a financial background.
Rather it is necessary to possess the desire to help others, project a genuine sense of caring, and
have a passion for learning. Success is based on the ability to be entrepreneurial and build and
nurture long-term relationships. MetLife’s portfolio gives you the tools you need in today’s
highly competitive marketplace to meet your clients’ changing financial needs.
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METLIFE Jalandhar training program focuses on developing skills, knowledge and
competencies through a high-quality curriculum, and allows you to gain the experience you need
to succeed in an insurance career. The program is divided into several components
Career Skill Training (CST) is a course that trains the advisor to write the exam to obtain the
IRDA license, while simultaneously integrating the additional skills that differentiate a MetLife
Advisor from the others in the industry. The pre recruitment training which provide the basic
knowledge of insurance to the candidates are given at Dream Weaver , Model Town
,Jalandhar .FA’S will also learn about the activities associated with this career, including skills in
prospecting, target marketing, need-based selling and customer service Once FA’S have finished
their initial training FA’S are provided all type of support and resources to help them to achieve
the path toward greater professional achievement and success. Classes, self-study courses, and
the attainment of professional designations will always be an important part of your ongoing
training. Product and sales training Is provided by strong and highly experienced trainer at the
MetLife branch in Jalandhar. During the pitching and targeting the sales the Financial Advisors
are provided help and support by the Sales Managers of his area.
As a MetLife Advisor in an insurance career, an FA have the choice of building his/her own
practice for advising his customers. The achivers are given absorbed at the post of Sales
Manager in the company which help him in developing his managerial skills to manage his own
team of advisors. Therefore, he/she decide on what career path he/she want to follow, and then
put in the necessary efforts to achieve your goals.
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1. Rewards And Recognition:
The unique characteristic of this career is that there is no limit to earnings. FA’S earnings are
determined by his own efforts and results. For an example, if he/she sell 50 policies and
generate a business of Rs 5 lakh, he/she will earn Rs 1.5 lakh at a commission rate of 30% on an
average . Or, if generates a business of Rs 30 lakh, he/she will earn Rs 6 lakhs, at 30% on an
average commission rates.
As at METLIFE the new recruited FA’S who achieve the set standards earliest are rewarded by
the Trigger Reward, Silver Eagle and Golden Eagle respectively. And are rewarded by Extra
30.000 to 40,000.Further they can also become a member of various clubs such as the Debut
Star Club, Ace’s Club, SOS (Seed of Strength) etc. Each of these clubs have specific
performance criteria for qualification and members of these clubs are entitled to attend Leader’s
and President conference held at exotic international and domestic locations each year. Advisors
can also qualify for the renowned MDRT (Million Dollar Round Table), COT (Court of The
Table) and TOT (Top of the Table) exclusive international insurance advisors club. MetLife
Jalandhar has 1 MDRT who is further set his target to achieve the status of COT and TOT.
MetLife Financial Advisor can also Play the role of End To End Vendor (E2E) and can help in
recruiting the financial advisor. For this effort he is paid 2500 Rs for every successful
recruitment.
2. Professional Recognition :
To keep Financial Advisor’s motivation at a high level, MetLife have a challenging and
exciting Rewards & Recognition program throughout the year, which rewards FA’S over and
above his commissions. Contests, conferences and benefits at various levels enable him to
realize his true potential, and inspire him to scale greater heights. Each year, sales leaders who
meet challenging company standards receive impressive awards and invitations to MetLife’s
prestigious conferences, within India and abroad. At these meetings, achievers receive
recognition for their superior performance in the presence of their families and peers.
3.Support:
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• Work Space Support- MetLife provide telephones and computers to help FA set
appointments, conduct your business and analyze your performance.
• Marketing and sales Support- To assist with sales procedures, MetLife have several
tools to aid smooth implementation.
• Managerial Guidance- With the guidance and support of MetLife’s highly experienced
managers, FA find several opportunities to build and service your customer base.
COT
TOT
MDRT
PRESIDENT CONFERENCE
LEADER’S CONFERENCE
RAPID FIRE
TRIGGER REWARD
21
FIGURE 2.1
Commission 30 % to 40 %
Exceptional Performer are absorb at the
Career regular employee at the post of Sales
Manager in the organization
Are held weekly, monthly and in festive
season. Contest are also held at the policy
Contest level. And the winner are rewarded with
bags , handy cams , gold coin and vacation
to the exotic places.
Are Paid 30,000 to 40,000 for achieving
early targets after licensing.
Extra Benefits
Are paid Rs 2500 for recruiting Financial
Advisor.
Training Training module is provided free of cost .
Financial Advisor are given office space
and phone and computer for use.
Work support
Team of agency manager is always ready to
help and support the financial advisors.
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Minimum Qualification Plus Two OR any of the Higher
Qualification for the candidate from urban
areas.
Class 10th certificate if he/she belong to
the Rural Area.
Date of Birth Proof 10th standard certificates
ID and Residence Proof Copy of Ration card /License/Passport for
urban area candidate.
Proof from the serpanch of the village in
written , for the candidate of rural area.
The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and
the Life Insurance Corporation of India was created on 1st September, 1956, with the objective
of spreading life insurance much more widely and in particular to the rural areas with a view to
reach all insurable persons in the country, providing them adequate financial cover at a
reasonable cost. Today LIC functions with 2048 fully computerized branch offices, 100
divisional offices, 7 zonal offices and the Corporate office. LIC’s Wide Area Network covers
100 divisional offices and connects all the branches through a Metro Area Network. LIC has tied
up with some Banks and Service providers to offer on-line premium collection facility in
selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer
convenience. LIC continue to dominate the insurance sector even in the Liberalized Indian
Economy .The market share of the LIC is about 75%.
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In Jalandhar LIC is has the biggest network of financial Advisors among all the Insurance
Players in the city . LIC Jalandhar has the mammoth force of 6600 Financial Advisors and had
recruited about 750 Financial Advisors in 2006-2007.
LIC strictly follows the rule and regulations framed by the IRDA for the recrutitment and the
training of the Agents. In Jalandhar LIC have ther own training facility at there own agency .
LIC Jalandhar have there own training staff who provide the basic and the product training to
the Agents . A 17-18 day training schedule covers the mandatory IRDA training requirements
and LIC product-training module. The agents get full support from their Development Officers
and as a career LIC Jalandhar get absorbed in the management if they perform exceptionally
well.
TABLE 09: Requirement and Requisites of becoming the LIC Financial Advisors/Agent’s:
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Minimum Qualification Plus Two OR any of the Higher
Qualification .
Date of Birth Proof 10th standard certificates
ID and Residence Proof Copy of Ration card /License/Passport
Passport size Photographs 5
Fees Rs 350
ICICI Prudential Life Insurance Company Limited, a company incorporated under the
Companies Act, 1956 and licensed under and in terms of the Insurance Act, 1938 and the
Insurance Regulatory and Development Authority Act, 1999 to carry out the business of life
insurance. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudential, a leading international financial services group
headquartered in the United Kingdom. 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's capital stands at Rs.
20.60 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In
Jalandhar ICICI PRDEMTIAL started in 2001.
25
over 234,000 advisors. Out of these huge workforce of advisors; ICICI have the strength of
almost 2500 Financial Advisors in Jalandhar alone. This makes it the second largest player of
Insurance sector in Jalandhar after LIC and gives it the edge over other private life insurance
players in Jalandhar. ICICI Jalandhar due to its huge large force of advisors earn the highest
premium than any other branches of ICICI in India, this is the fact that ICICI Jalandhar alone has
got 10 MDRT members.
In Jalandhar the FA’s of ICICI enjoys all the benefits that there counterparts does in the other
part of the country. The financial Advisors are paid almost the commission of 20% to 40% for
various endowment and investment plans. Except of this healthy commission they are also get
extra remuneration depending upon their achievements of targets predetermined by the company.
ICICI also help FA’S by providing them the financial help to cover their expenses of petrol and
mobile bills. Beside this the ICICI motivates there financial Advisors by holding various contest
for there Financial Advisors. These contests are launched on after every third month on the
festive seasons. For Example ICICI in Jalandhar has launched FREEDOM FESTIVAL to
celebrate the 60Th Independence day of the country . In this contest on achieving the various
targets the FA’S are given various gifts and prizes depending upon which slab did the premium
collected by the Financial Advisors falls. ICICI PRUDENTIAL financial advisors are also paid
1600 Rs for the recruitment of an additional Advisor.
Commission 18% to 40 %
Exceptional Performer are absorb at the
Career
regular employee in the organization
26
Team of agency manager is always ready to
Work support
help and support the financial advisors.
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited
and Allianz AG of Germany. Allianz AG, is one of the world's largest insurance companies, and
Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world.. Bajaj Allianz
General Insurance received the Insurance Regulatory and Development Authority (IRDA)
certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business
including Health Insurance business in India. The. Bajaj Auto holds 74% and the remaining 26%
is held by Allianz, AG, Germany. Bajaj Allianz has a pan-India presence of office network in
over 500 towns of the country and is aided with a strong and trained Agency network of over
90000 Insurance Consultants with 511 MRDT qualifiers in the calendar year 2006-2007.
27
Bajaj Allianz started its operation in Jalandhar in mid of 2005 and till date they had made 1100
Financial Advisors in Jalandhar .Which makes it the third largest organization in terms of the
strength of Financial Advisors at Jalandhar. Bajaj Allianz recruit the Advisors from every section
of the society.
The recruitment procedure is according the guide lines of the IRDA, and the Financial Advisors
are given the commission of about 20% to 40% on its different plans and policies. Besides that
they enjoy the Membership and reorganization of the various elite clubs depending upon their
performance. Bajaj Allianz outsource its training of financial advisors to the Dream Weaver and
provides the in house training of products to the advisors.
28
d) Kotak Mahindra Old Mutual Life Insurance:
It is a 76:24 joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak
Mahindra Old Mutual Life Insurance is one of the fastest growing insurance companies in India
and has shown remarkable growth since its inception in 2001.
Old Mutual, a company with 160 years experience in life insurance, is an international financial
services group listed on the London Stock Exchange and included in the FTSE 100 list of
companies, with assets under management worth $ 400 Billion as on 30th June, 2006. For
customers, this joint venture translates into a company that combines international expertise with
the understanding of the local market. Kotak Mahindra strated its business at the beginning of
2006. Kotak life success fully recruited the force of 450 financial advisors in the first year of it’s
operations in Jalandhar.
29
Achievers are given chance to be the part of
Career regular sales force in organization and lead
the team of 10 to 15 advisors.
30
e) Reliance Life :
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance -
Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector financial
services companies, and ranks among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital has interests in asset management and mutual
funds, stock broking, life and general insurance, proprietary investments, private equity and other
activities in financial services. Agents are called as advisors in RLI., Advisors occupy a
intermediary position and are remunerated appropriately according to the business generated.
Advisorship in RLI means tremendous growth and empowerment in terms of knowledge,
personality development and wealth. Training at Jalandhar is given at Dream Weaver. The
advisors are paid extra for their expences in mobile and petrol. The Advisor also gets chance to
take part in the contest in which they can win LCD TV , Lap Top and even trip to abroad.Some
benefits of being the advisor at Reliance Life Insurance are
Commission 18% to 30 %
Are held daily, weekly, monthly . Certain
Contest rewards like lap top , LCD TV, gold coin,
trip to abroad.
Extra Benefits Are paid for expenses for petrol, mobile.
In house training and study material is
Training
provided by the organization.
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Qualification .
Date of Birth Proof 10th standard certificates
ID and Residence Proof Copy of Ration card /License/Passport
Passport size Photographs 9 PP
Fees DD of Rs 500 in Favour of “Reliance Life
Insurance Co. Pvt .Ltd” Payable at
Chennai.
Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed
by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the
Tata Group’s pre-eminent leadership position in India and AIG’s global presence as the world’s
leading international insurance and financial services organization. The Tata Group holds 74 per
cent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG Life
provides insurance solutions to individuals and corporates. Tata AIG Life Insurance Company
was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001.
Tata AIG just like other life insurance organization recruit the Advisors having varied profiles.
They are recruited and trained as per the guide lines of IRDA. TATA AIG have its own system
of selecting the right person for the Advisor. The probable person Is first counseled by the
Agency Manager and then he/she has to go through the aptitude test, which the probable has to
give at the spot. After than he /she is approved to be eligible for the training of the FA. TATA
AIG advisors are given 100hrs training at NIS Sparta Institute in Jalandhar and the necessary
product training is given at the agency it self.
Tata AIG agent enjoy the member ship off all the esteemed clubs depending upon the
achievement of the desired premium goals he achieve , beside the membership of these clubs
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Tata AIG offer the unique career opportunity Programme to there advisors. It is the only
company in India to offer this Programme. This Programme depends upon networking. The
advisor can start hi own business without investing any money. Tata AIG provide them to
become the Business Associate and recruit the team of 20 advisors under him and the average
potential remuneration per month can be up to Rs 50,000.
From Business Associate level onward, he can hire as many agen the wants and get Rs 2000 per
agent recruited and Rs 1500 per month for training. After he had recruited the team of 20
advisor under him he can become the SR. Business Associate and can keep two business
associate under him. After this he can also become Manager Business Associate and can keep a
team of 2 SR. Business Associate under him.
Senior
Manager
Bussiness Bussiness
Bussiness
Advisor Associate Associate
Associate
Fig: 2.2
33
Are given Rs 2000 for successful recruiting
Extra Benefits the advisor and are given Rs 1500 for
training of these advisors.
34
In Jalandhar the number of policies sold in different years has increased with the increase in the
number of the Financial Advisors. The organization having the largest number of work force of
financial advisors sells larger number of policies in a year.
So the hypothesis is that :
Number of policies sold by any Insurance organization in any a year is directly proportional to its
Number of its Financial Advisors in that year.
Life Insurance in its modern form came to India from England in the year 1818. Oriental Life
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.
The brief history of Insurance in India with some of it’s milestones in the life insurance
business in India are:
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
35
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalised. 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 business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised 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.
Among the emerging economies, India is one of the least insured countries, but the potential for
further growth is phenomenal. The demand for insurance is likely to increase with rising per
capital incomes, rising literacy rates and increase of the service sectors. After Korean and
Taiwanese insurance sectors were liberalized, the Korean market has grown 3 times faster than
GDP and Taiwan the rate of growth has been almost 4 times than that of its GDP. Further,
opening of the sector to private firms has and will further foster competition, innovation and
variety of products. It will also generate greater awareness on the need for buying insurance as a
service and not merely for tax exemption, which is currently done.
36
The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again. Tracing the developments in the Indian
insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.
Insurance is one sector whose contribution to GDP is quite significant. Post independence, the
Indian Government nationalized the private life insurance companies with a view to raise funds
for the infrastructure developments, which lagged behind pathetically. Insurance is a Rs. 400
billion business in India’s and together with banking services adds about 7% to India’s gross
domestic product (GDP) gross premium collection is about 2 percent of GDP and growing
between 15 and 20 percent per annum. India also has highest number of life insurance policies in
force in the world.
Yet more than three fourth of India’s insurance population has no life insurance cover the
penetration of insurance is very low in India the following indices support this contention. While
per capita insurance premium in developed countries is very high, it is quite low in India per
capital insurance premium in India in 1999 was only $8 while it was $ 4800 for Japan, $ 1000
for Republic of Korea, $ 887 for Singapore, $ 823 for Hong Kong and $ 144 for Malaysia. The
insurance Premium as a Percentage ofGDP was 14% for Japan, 13% for south Africa, 12% for
Korea, 9% for UK and less than 2% in India in 1999 Similarly the insurance Premium as a
percentage of Gross Domestic saving (GDS) was 52% for U.K, 35% for other European and
American countries ,it was only 9% for India in 1999 The share of India in the World market in
terms of Gross insurance premium is again very 1000. For instance, While Japan has 31%,
European Union 25% ., South Africa 2.3%, Canada 1.7% share of the global insurance premium,
it is only 0.3% for India.
The insurance premium in India accounted for a mere 2% of GDP as against the world average
of 7.8% and G-7 average of 9.2% during 90s. The insurance premium as a percentage of savings
in India is 5.95% as compared to 52.5% in UK. The nationalised insurance companies could
barely unearth the vast potential of the Indian population since the policies lacked flexibility and
the Indian life insurance products are not linked to the contemporary investment avenues.
Multinational insurers are keenly watching the transformation of the Indian insurance sector,
mainly because the domestic markets have become saturated for the respective insurer.
International insurers capture a significant part of their business from their multinational
37
operations only. UK’s largest life and non-life insurers acquired 40% to 60% of their total
premium from their multinational operations. The foreign investors are finding the Indian market
more attractive because even a small share of a growing market looks lucrative. For example, the
Korean insurance market, the 30th largest market in the world premium volume in 1971 obtained
the 6th position in 1996, the reason being its multinational operations.
The other reason as to why the global insurers are interested in investing their funds is the nature
of the Indian markets. Generally insurance companies operate on the principle of spreading.
Spreading the area of operations over a wide geographical area would eliminate sudden dips in
earnings due to the unexpected risk spread. Sigma Report presented by the world’s second
largest reinsurer Swiss Re on global insurance, reports complete saturation of international
market.
1.More job opportunities: Opening of the insurance sector to the foreign investors has led to a
renaissance in the Indian economy. Job opportunities show bright signals. The people working in
insurance sector in India are approximately the same as in the UK, which has 1/7th of Indian
population. There is the new concept of bancassurance that has paved the way for more job
opportunities in the financial sector. There would be demand for specialists in the area of
marketing, finance and human resource management apart from the demand for technical
expertise from professionals in the field of underwriting and claims management subjects.
2.Inflow of foreign capital: There would be huge inflow of funds into the country with foreign
capital splurging in the Indian insurance companies as start up capital.
3.Indigenous reinsurance: Even the reinsurance sector looks for opulence with global players
like Swiss Re and Munich Re keen on entering into the insurance industry in India. While there
will be a deep fall in the outward reinsurance, India would receive inflow of funds from the
neighbouring countries. If the legislative support offers a congenial atmosphere, a la Llyods in
India is not far off.
4.Technology transfer: Apart from the above monetary aspects, there would also be a
revolution in the transfer of technologies and knowledge from the global participants in the fields
of training, risk management, underwriting, introduction of new policies etc. With more
38
participants in the market, there would be healthy competition with increased advertisement
expenditure for brand building. There would be scientific pricing methods.
5.Wide distribution channel: The channel of distribution is widened once the products offered
are many. For instance, the seller himself at the point of sale itself can offer insurance for durable
consumer items such as a television or a refrigerator. In such cases, the non-financial sectors also
join in distributing the insurance products and benefit mutually.
The opening up of the market for private players has encouraged international insurance giants to
enter the Indian market through the medium of joint ventures with Indian promoters. However,
the foreign promoters' equity in an Indian insurance company is limited by law to 26%. The
market has attracted participants from across the globe. A rich tapestry of foreign promoters
from U.K., U.S.A., Canada, France, Germany, Netherlands, South Africa, Australia have
descended on the Indian scene. All these promoters have probably sought to re-establish
themselves in the Indian market where they had a presence prior to the nationalization of the
industry.
These companies have varied and rich experience in insurance underwriting and administration
and by joining hands with the Indian promoters have brought to Indian insurance market new
management techniques and practices, underwriting standards, risk analysis and risk
management techniques - all of which will indeed strengthen the Indian insurance market and
afford the Indian customers risk covers at competitive costs.
The participation from the Indian promoters point of view has also been rewarding. The
insurance market has attracted financial institutions, big industrial establishments etc., to enter
the insurance sector. Participation of banks and other financial institutions in the floatation of
insurance companies is also subject to clearance from the industry regulator viz., Reserve Bank
of India or National Housing Bank.
39
systems to the insurance sector and in particular the life insurance companies was the launch of
the IRDA’s online service for issue and renewal of licenses to agents. The approval of
institutions for imparting training to agents has also ensured that the insurance companies would
have a trained workforce of insurance agents in place to sell their products, which are expected
to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 12 life insurance and 6 general insurance
companies have been registered.
In the liberalised insurance era, we have 15 life insurance players apart from the public sector
Life Insurance Corporation of India and 9 general insurance companies apart from the 4 state
owned companies viz. The United India Insurance, New India Assurance, Oriental Insurance,
National Insurance Company. The private insurers have already proved their success by way of
performance during the current financial year by way of 71% growth in the premium income.
TABLE 4: The list off all these Life Insurance companies are given as:
40
15 Bharati –AXA – Life Insurance Co. Pvt. Ltd.
• To bring about speedy and orderly growth of the insurance industry (including annuity and
superannuation payments), for the benefit of the common man, and to provide long term
funds for accelerating growth of the economy;
• To set, promote, monitor and enforce high standards of integrity, financial soundness, fair
dealing and competence of those it regulates;
• To ensure that insurance customers receive precise, clear and correct information about
products and services and make them aware of their responsibilities and duties in this
regard;
• To ensure speedy settlement of genuine claims, to prevent insurance frauds and other
malpractices and put in place effective grievance redressal machinery;
41
• To promote fairness, transparency and orderly conduct in financial markets dealing with
insurance and build a reliable management information system to enforce high standards of
financial soundness amongst market players;
• To bring about optimum amount of self-regulation in day to day working of the industry
consistent with the requirements of prudential regulation.
e) Limitations:
1) The Data about the financial Advisors and number of policies in a year for various
organization is not available in the print or any other media. It is taken from the various sources
2) Most of the companies have just started their business in Jalandhar, so the data collected was
3)Information about the recruitment and the benefits of some of the insurance organization was
4)The information about the benefits and career opportunity has to be gathered by personal
42
DATA ANALYSIS & INTERPRETATION
43
2007-
INSURER 2002-03 2003-04 2004-05 2005-06 2006-07 2008
HDFC STANDARD
LIFE 0 6650 8848 12600 16038 17997
SBI LIFE
INSURANCE 0 0 0 0 3500 5125
ICICI PRUDENTIAL 15704 28425 33695 35595 47035 47500
BAJAJ ALLIANZ
LIFE 0 0 0 9280 22410 24200
METLIFE INDIA 0 0 0 0 0 4856
Max New york Life 0 0 0 0 0 0
Tata AIG 0 0 0 0 0 0
Reliance Life 0 0 0 4326 7920 11400
Birla Sunlife 0 0 0 0 2152 15645
AVIVA 0 0 0 0 2580 10450
ING Vysya 0 0 0 0 2430 9900
Kotak Mahindra 0 0 0 0 9016 10760
LIC 71680 85436 96025 101300 111150 138600
For sample size of 6 the value of t = 12.41969 and t0.05 = 2.920, which is quite higher than the
table value hence the hypothesis is rejected. Hence it is likely that the numbers of agent are
correlated to the number of policies sold in Jalandhar.
44
NO. OF POLICIES(Y) 0 0 0 0 3500 5125
COFFICIENT OF CORRELATION = 0.999903
For sample size of 6 the value of t = 143.66 and t0.05 = 2.920 , which is quite higher than the table
value hence the hypothesis is rejected . Hence it is likely that the number of agent are correlated
to the number of policies sold in Jalandar.
For sample size of 6 the value of t = 80629 and t0.05 = 2.920 , which is quite higher than the table
value hence the hypothesis is rejected . Hence it is likely that the number of agent are correlated
to the number of policies sold in Jalandar.
For sample size of 6 the value of t = 13.23 and t0.05 = 2.920 , which is quite higher than the table
value hence the hypothesis is rejected . Hence it is likely that the number of agent are correlated
to the number of policies sold in Jalandar.
45
NO. OF AGENTS (X) 0 0 0 190 440 600
For sample size of 6 the value of t = 26.79 and t0.05 = 2.920 , which is quite higher than the table
value hence the hypothesis is rejected . Hence it is likely that the number of agent are correlated
to the number of policies sold in Jalandar.
For sample size of 6 the value of t = 4.56 and t0.05 = 2.920 , which is quite higher than the table
value hence the hypothesis is rejected . Hence it is likely that the number of agent are correlated
to the number of policies sold in Jalandar.
46
For sample size of 6 the value of t = 24.52 and t0.05 = 2.920 , which is quite higher than the table
value hence the hypothesis is rejected . Hence it is likely that the number of agent are correlated
to the number of policies sold in Jalandar.
For sample size of 6 the value of t = 43.29 and t0.05 = 2.920 , which is quite higher than the table
value hence the hypothesis is rejected . Hence it is likely that the number of agent are correlated
to the number of policies sold in Jalandar.
47
For sample size of 6 the value of t = 7.06 and t0.05 = 2.920 , which is quite higher than the table
value hence the hypothesis is rejected . Hence it is likely that the number of agent are correlated
to the number of policies sold in Jalandhar.
From all the calculation done above and test for significance it is clear that the Insurance
organization having will have greater penetration in the market. Hence the LIC had greater
penetration in Jalandhar than any other company.
1) Tata-AIG has introduced the concept of NETWORKING which not only give a chance for the
career development to the advisors but also increases the strength of advisors in the organization.
MetLife Jalandhar if possible should follow the same concept to increase the number of its
financial advisors.
48
2) The fees taken by some of the insurance companies in Jalandhar is comparatively lower than the
MetLife. This is causing the desirable person to join those organizations. MetLife Jalandhar must
also try to implement certain schemes, so that to increase the possibilities of person to join
MetLife.
3) The organization like ICICI and Reliance etc. are giving their Advisors for their expenses on
Petrol and Mobile charges. MetLife should also try to provide similar compensation to the
4) For attracting the new comers and to increase the strength of its Financial Advisors; MetLife can
organize the Business Opportunity Programme in the Private Schools and Other private
institutes.
5) MetLife can organize promotional activity in the various teaching institute to raise aware ness
6) Jalandhar has the lots of Travel Agents and Immigration offices, MetLife can make them their
7) ICICI emerge as the second largest after LIC and holds the commanding position among the
Jalandhar. Many of the insurance organizations are providing the office space and their
49
CONCLUSION
1. The strength of the agents In any organization affects the business of the
2. LIC shows the maximum penetration, with the huge force 6600 Financial Advisors. It also
50
3. New entrant like METLIFE has increased the competition in the market due to its innovative
policies for the cuwtomer and for its Advisors. It is evident from the fact that in a short span of
4. Better career opportunities and extra benefit given by the Insurance Organization for
Jalandhar.
6. Many of the insurance organizations are providing the office space and their infrastructure to
7. Every kind of support and training facilities are provided time to time to the advisors.
8. Different contest give chance to the financial advisor to earn extra over and above their
commission.
10. Financial Advisors are also playing the role of End to End Vendor and their by help the
11. Financial Advisors are getting more professional day by day; it is due to the various training
12. Jalandhar has the huge potential for investment. Because Jalandhar alone has all the big player of
insurance in the market and all of these together has given 41 MDRT’S.
These Financial Advisors are the real producers for any Insurance Organizations
51
BIBLIOGRAPHY
References to books:
52
References to Articles:
• Bhaskaran. D. (2007), “ Insurance Umbrella Size To Double , Says Industry”, Indian
Express, New Delhi.
• Chavan. Vijay. (2006), “Channeling The Future”, Mastek ,USA.
• Malhotra. R.N. (1994), “Insurance India”, New Delhi.
• Oza. Arman.(2006), “ Importance Of Delivery system” , IRDA, Mumbai.
• Vishwanathan. S. (2006), “Role of Distribution Channel”, IRDA, Mumbai, India.
• Zabik.J.Joseph (2006), “Agents In Paradise, Producers View on Conferences and
Sales Contests”, LIMRA International, Connecticut, USA.
53
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