Bharti AXA Life Insurance-Dinesh

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Sales Promotion,

Recruitment, Training & Development of Life


Advisors

Submitted in Partial Fulfillment of the Requirements for the


Award of Degree
Of
MASTER OF BUSINESS ADMINISTRATION
By

DINESH PRATAP UPADHYAY


Roll No. : 0814170012
June-August 2009

Under Guidance of : Under the Supervision of :


ASHISH KUMAR SRIVASTAVA MISS SANDHYA KHARE
Agency Manager
Bharti Axa Life insurance Co.
Gomti Nagar, Lucknow

SAGAR INSITTUTE OF TECHNOLOGY AND MANAGEMENT


Barabanki
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

DECLARATION

I the undersigned, hereby declare that this project entitled “SALES PROMOTION
RECRUITMENT, TRAINING AND DEVELOPMENT of Life advisors at
Bharti AXA Life Insurance, LUCKNOW” is written and submitted by me to
SAGAR INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BARABANKI
in partial fulfillment of the requirements for the award of MASTER OF BUSINESS
ADMINISTRATION under the guidance of my company guide Mr. Ashish Kumar
Srivastava. This report neither full nor in part has ever been submitted for award of
any other course of either this Institute or any other Institute.

DINESH PRATAP UPADHYAY


MBA
2008-2010
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

ACKNOWLEDGEMENT

I sincerely thank Bharti Axa Life Insurance for providing me with an

opportunity to pursue my internship at their organization. I extend my thanks to

my guide Mr. Ashish Kumar Srivastava- Manager of Agency at Bharti Axa Life

Insurance and other members of the Division, Bharti Axa Life Insurance,

Lucknow for providing me the necessary guidance.

That project was a great experience for me. As is made aware of professional

culture that exists in an organization, about the market, qualities required work

and how to deal with the customers. I am extremely thankful to our respected

faculty Guide MISS SANDHYA KHARE“SITM Barabanki” for giving me there

wholehearted support, guidance and encouragement to me at every step of this

project. There valuable suggestions and advices have been a constant source of

inspiration to me in completing this project.

Finally, I express my thanks to the Respondents who took part in the survey.

Place : Lucknow
Date : 25.08.09
DINESH PRATAP UPADHYAY
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

TABLE OF CONTENTS

S. No. Contents
1.0 Executive Summary
2.0 Introduction to the Project
2.1 Purpose of the Project
2.2 Significance And Importance of the Project
2.3 Objective of Project
2.4 Scope of project
2.5 Theory on Recruitment and Training
2.6 Training and Development
2.7 Types of Training and Development
2.8 Limitations of the Project
2.9 Brief history of the Insurance sector in India
3.0 Profile of Organization
3.1 Joint Venture Bharti and AXA
3.1.1 Bharti AXA Life Insurance
3.2 Products of Bharti AXA Life Insurance
3.2.1 Products for Individuals
3.2.2 Products for Groups
4.0 Research Design and Methodology
4.1 Research Design
4.2 Sample Design
4.3 Recruitment Process
4.4 Survey Questionnaire
5.0 Data Presentation, Analysis and Interpretation
6.0 Findings and Suggestions
6.1 Findings
6.2 Suggestions
7.0 Solutions
8.0 Results
9.0 Conclusion
10.0 Bibliography
11.0 Annexure
11.1 Annexure 1
11.2 Annexure 2
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

EXECUTIVE SUMMARY
The project is about recruitment, training and development of Life advisors. The
project was undertaken by 6 member team and the entire task was divided into
sub- tasks. The process started from identifying the need, then advertising the
same to prospective individuals by distribution of pamphlets, holding various
activities in residential areas etc. then individuals were surveyed. The
questionnaire was designed in such a manner that it gave a general idea about
the ability and capability of respondent as a prospective life insurance advisor.
Certain scores were allotted depending on the answers given by the respondent.
Those who were high on the scores were motivated to visit the office for
conduction of their interview. After the successful completion of interview
individuals were informed if they were selected for training of Life advisors.
They were asked to fill the NAAF form and a fee was collected from them along
with their photographs. After successful completion of training an exam was
conducted and those who qualified the exam were selected as life advisors.

The project report submitted here covers theory on recruitment, training and
development, flowchart of activities undertaken for recruitment, training and
development, data analysis of the survey and a list of suggestions and
recommendations for the company at the end of the entire study.

During the process of summer project we conducted activities in Residential


colonies like “Lucknow, Gonda, Balrampur etc.. The samples of the pamphlets
that were designed and were distributed for such activities have been given in the
annexure.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

INTRODUCTION TO THE PROJECT

PURPOSE OF THE PROJECT

The purpose of the company project study was to:

• Get hands on experience of recruitment in Insurance sector.

• Understand the external recruitment process of Life advisors.

• Applying theoretical knowledge to the recruitment practices at Bharti AXA.


Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

SIGNIFICANCE AND IMPORTANCE OF THE PROJECT

In the last few years, the market has undergone some fundamental changes in terms of
technologies, sources of recruitment, competition in the market etc. In an already
saturated market, where the practices like poaching and raiding are gaining
momentum, Sales professionals are constantly facing new challenges in one of their
most important function- Selling. They have to face and conquer various challenges to
find the best candidates for their organizations which can meet there targets.

The project focuses on the challenges facing the Sales department in the growing
insurance industry in India. Problems caused by the lack of skilled personnel and the
increasing demand for skilled employees are also discussed in the project.

In addition, challenges regarding the recruitment, training and development of


employees are examined. The project throws light on various measures taken by Sales
department in insurance organizations to improve the environment and the
productivity of employees.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

OBJECTIVES OF THE PROJECT


The objectives were-
R- Recruitment
T- Training
D- Development
C- Coding and Licensing
I- Increase in Sales
 To analysis insurance as an investment Plan.
 To Analysis the pricing of different unit linked investment plans and
handling lindges with other P's of marketing.
 To study the consumer perception preference and behaviour product of
Bharti AXA Life Insurance.

Team objective: To recruit more than 5 Life advisors during two months in
Lucknow region.

Individual objective: To interview prospective candidates to be recruited as LA,


assist Managers of Agency in selecting the candidates, make arrangements for
BOP’s and to assist in their training, coding and licensing thereby increasing the
sales of the company.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

SCOPE OF THE PROJECT

The project involved recruiting life advisors for Bharti AXA Life insurance in
Lucknowregion. The task was taken up by a 6 member team and the entire
process of recruitment was divided into sub- tasks. To further it, the project also
involved arranging for preliminary training of Life advisors.

The process of recruiting and training Life advisors can be broken into the
following steps:
• Identifying individuals who are willing to solicit insurance business as a
life advisor of the company.
• Assisting in scheduling the training and examination of the life advisors.
• Assisting and coordinating with Agency Development Manager of the
company for licensing and coding of Life Advisors.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

THEORY ON SALES PROMOTION

By their very nature, Bharti AXA Life Insurance require higher advertisement
and sales promotion expenses than any consumer product offering measurable
performance. Different kinds of advertising and sales promotion exercises are
required to serve the needs of different classes of investors. For instance, an
aggressive ‘push’ marketing strategy is required for retail markets, where
investors are not adequately aware of the product and do not have specialized
skill in financial market, in contrast with ‘pull’ marketing strategies for the
wholesale market.

There are certain issues with reference to advertisement, publicity literature and
offer documents, which deserve attention. Most of the Life Insurance
advertisements look similar, focusing on scheme features, returns and incentives.
An investor exposed to the increasing number of Life Insurance products finds
that all the available brands are rather identical, and cannot appreciate any
distinction.

The present form of application, brochures and other literature is generally


lengthy, cumbersome and at times complicated leading to higher emphasis on
advertisement. One of the limiting factors is the regulatory framework governing
advertisements of Life Insurance products. For instance, in the offer documents,
Bharti AXA Life Insuranceare required to mention the fund objectives in clear
terms. Immediately thereafter, the first risk factor that has to be mentioned is
that there is no certainty whether the objectives of the fund will be achieved or
not. Some more relaxation in these may facilitate bringing more novelty in
advertisements, within a broad framework, without luring investors through
false promises, and will certainly improve the situation.

Another hurdle is the statutory disclaimer required to be carried along with


every advertisement. Bharti AXA Life Insurancehave to provide risk factors.

Under the present Life Insurance regulations, a prior approval by SEBI is a


must before a Life Insurance can launch its fund. In the regulation itself, a
period of one month has been provided. But in a month’s time, perhaps the
situation may so change, that the timing of launch gets affected. The requirement
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
for getting approval, which normally takes about 2 months’ time, defeats the
purpose for which the fund was designed also.

QUALITY OF SERVICE

This industry primarily sells quality of services, given that the performance
cannot be promised. It is with this attribute along with procedural simplicity,
that the fund gradually builds its brand and its class of loyal investors. The
qualities of services are broadly categorized as:

• Timely services after the sale of the units; and

• Continuous reporting of investment performance.

Life Insurance managers must give due attention and evaluate their
performance on each front. They may also consider an option of conducting a
service audit for controlling and improving the quality of service.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

MARKET RESEARCH
Investment in Life Insurance is not a one-time activity. It is a continuous activity.
The same investor, if satisfied, will come to the fund again and again. When the
investor sends his application, it is not only an application, but it also contains
vital information. Most of this information if tabulated and analyzed, would
provide important insights into investor needs, preferences and behavior and
enables us to target customers need more accurately, to achieve better
penetration, deeper loyalty and reduced costs. It is in this context that direct
marketing will assume increased importance. Knowing the customer thoroughly
is of utmost importance. Unlike the consumer goods industry, it is not possible
for Life Insurance industry to test market and have pilot projects before launch.
At the same time, focusing and concentrating on a particular geographic area
where the fund has a strong presence and proven marketing network, can help
reduce network, can help reduce issue expenses and ultimately translate into
higher returns for the investor. Very little research on investor preference is
available, but the industry can collectively have a data bank, and share the
information for appropriate use.

Market Segmentation Different segments of the market have different risk-


return criteria, on the basis of which they take investment decisions. Not only
that, in a particular segment also there could be different sub-segments asking
for yet different risk-return attributes, and differential preference for various
investments attributes of financial product. Different investment attributes an
investor expects in a financial product are:

• Liquidity,

• Capital appreciation,

• Safety of principal,

• Tax treatment,

• Dividend or interest income,

• Regulatory restrictions,
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

• Time period for investment, etc.

On the basis of these attributes the Life Insurance market may be broadly
segmented into five main segments as under.

1) Retail Segment

This segment characterizes large number of participants but low individual


volumes. It consists of individuals, Hindu Undivided Families, and firms. It may
be further sub-divided into:

i. Salaried class people;

ii. Retired people;

iii. Businessmen and firms having occasional surpluses;

iv. HUF’s for long term investment purpose.

These may be further classified on the basis of their income levels. It has been
observed that prospects in different classes of income levels have different
patterns of preferences of investment. Similarly, the investment preferences for
urban and rural prospects would differ and therefore the strategies for tapping
this segment would differ on the basis of differential life style, value and ethics,
social environment, media habits, and nature of work. Broadly, this class
requires security of the principal, liquidity, and regular income more than
capital appreciation. It lacks specialised investment skills in financial markets
and highly susceptible to mob behaviour. The marketing strategy involving
indirect selling through agency network and creating awareness through
appropriate media would be more effective in this segment.

2) Institutional Segment
This segment characterizes less number of participants, and large individual
volumes. It consists of banks, public sector units, financial institutions, foreign
institutional investors, insurance corporations, provident and pension funds.
This class normally looks for more specialized professional investment skills of
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
the fund managers and expects a structured product than a ready-made product.
The tax features and regulatory restrictions are the vital considerations in their
investment decisions. Each class of participants, such as banks, provides a niche
to the fund managers in this segment. It requires more of a personalized and
direct marketing to sustain and increase volumes.

3) Trusts

This is a highly regulated, high volumes segment. It consists of various types of


trusts, namely, charitable trusts, religious trust, educational trust, family trust,
social trust, etc. each with different objectives. Its basic investment need would
be safety of the principal, regular income and hedge against inflation rather than
liquidity and capital appreciation. This class offers vast potential to the fund
managers, if the regulators relax guidelines and allow the trusts to invest freely
in Life Insurances.

4) Non-Resident Indians
This segment consists of very risk sensitive participants, at times referred as ‘fair
weather friends.’ They need the highest cover against political and exchange
risk. They normally prefer easy exit with repatriation of income and principal.
They also hold a strategic importance as they bring in crucial foreign exchange –
a crucial input for developing country like ours. Marketing to this segment
requires special kind of products for groups of foreign countries depending upon
the provisions of tax treaties. The range of suitable products are required to
design to divert the funds flowing into bank accounts.

5) Corporates

Generally, the investment need of this segment is to park their occasional surplus
funds that earn return more than what they have to pay on account of holding
them. Alternatively, they also get surplus fund due to the seasonality of the
business, which typically become due for the payment within a year or quarter
or even a month. They need short term parking place for their fund,. This
segment offers a vast potential to specialized money market managers. Given the
relaxation in the regulatory guidelines, fund managers are expected design
products to this segment.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
Thus, each segment and sub-segment have their own risk return preferences
forming niches in the market. Bharti AXA Life Insurancemanagers have to
analyze in detail the intrinsic needs of the prospects and design a variety of
suitable products for them. Not only is that, the products also required to be
marketed through appropriately different marketing strategies.

AD’S THE WAY

Increasing sales have given Life Insurance promoters the budget to spend more
on advertising, which has further boosted sales

The Atheists are turning believers. Life Insurances, private sector ones in
particular, who had written off advertising as the “ultimate waste of money”
have nearly tripled their press media spend from Rs.12.20 crore in the period
January to April 1998 to Rs. 31.6 crore in January to April 1999, according to
data supplied by Prudential ICICI AMC (PIAMC) and sourced from ORG-
MARG.

What’s interesting is that in this period the share of the private sector Bharti
AXA Life Insurancein the category’s total media spending has surged from 20
percent to 52 percent. This can be attributed to private sector funds (given the
data available with the Association of Bharti AXA Life Insuranceof India) seeing
an increase share of net inflows relative to the bank-sponsored counterparts in
the public sector.

For proof, take a look at some figures. PIAMC – which spent Rs. 4.5 crore on
advertising in the entire fiscal year 2000 has spent the same amount during the
first four months of the current fiscal itself. Kothari Pioneer Life Insurance
which spent a negligible amount on advertising in 1999-2000 and Rs.163 lakhs in
2001 has already spent Rs. 453 lakhs in the first three quarter.

Birla Life Insurance, which spent Rs. 1 crore on advertising in the year 1999-
2000 plans to double that amount.

Clearly advertising types have something to cheer about. But what’s caused this
sudden attitudinal shift towards advertising? According to experts, funds are
being pushed into advertising more by intermediaries like banks who are
reluctant to sell a product whose name is unfamiliar to investor. Besides, since
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
more open-ended schemes are now available, some form of ongoing support to
keep sales booming has been deemed necessary by the funds.

In the words of Mr. Rajiv Vij, vice president marketing, Templeton Asset
Management (India) Pvt. Ltd., “ The industry has discovered that advertising in
the changed climate today, when investors are most receptive to Life Insurances,
can perk up sales by anywhere between 20-40 percent.” PIAMC managing
director Ajay Srinivasan gives his rationale for stepping up marketing spends:
“we believe that the brand is an important part of the consumer’s decision to
invest in a category that is not yet clearly understood by people.” According to
the Life Insurance marketers, advertising helps bring recall when consumers are
looking at investment opportunities. Srinivasan says that tactical advertising has
raised PIAMC’s brand awareness from five percent in June 1993 to 34 percent
now, as per a recent IMRB survey.

Advertising backed by an integrated marketing and communication campaign


designed to attract investors with long term prospective has helped the fund post
a redemption-to-sales ratio of just about five percent as compared to 20-30
percent for the industry on an average.

But what mode of advertising do these funds choose? “To sell the category,”
avers VIJ, “mass media is more effective because one needs to target a large
segment of the population.” Life Insurance marketers feel that since the category
is ‘information – centric’, press is the best medium to get across one’s message.
Within the print media, most marketers feel that a combination of leading
mainline and financial newspapers complemented by finance/ business
magazines, with relevant thematic appeal and editorial content are the perfect
mix.

Direct mail is another medium, which some funds have successfully used. But
rather than sending out mailers to all and sundry, there is a need for appropriate
targeting.

Educational seminars are the final leg in the marketing and communication
process. In these, investors conditioned by advertising and hooked by an
interesting mailer can have lingering doubts clarified.

Attractive point of purchase (POP) material can also help.


Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
Another very successful media niche, which has been exploited to the hilt by
funds, is intermediary magazines and newsletters. Besides the low costs of
advertising in these newsletters, these publications circulate to those who are
looking for investment opportunities and thus represent an extremely lucrative
target segment.

Advertising content by most of the funds too has undergone a marked change
from concept-selling ads dispelling myths, to selling specific schemes that meet
defined objectives/ goals.

But why is advertising suddenly working for Bharti AXA Life Insurancewhen it
doesn’t seem to have made a difference earlier? A sustained marketing strategy
instead of a few, scrappy ads is now seen to be the key to investor demand.

According to Birla Sun Life AMC chief market development officer


N.K.Sharma, advertising serves as a reminder complementing a sales push by
the distributor. “Since the distributor wasn’t ready in earlier years, advertising
then, didn’t work, “he says. Brand building, is a long-term exercise. Just like
Bharti AXA Life Insuranceadvocate that investors take a long-term approach to
investing, similarly funds need to take a long-term approach to brand building.

Fund marketers and industry observers however, caution against the danger of
selling the product for the wrong reasons. Funds need to focus on sustainable
communication. They need to build brands that strike a chord with investors by
relating to their concerns rather than selling flavour-of-the-month style. The
winning formula as industry watchers put it is the troika of performance, service
and trust for meeting long term needs or goals.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Changes that have taken place since the advent of the Net

• Lower Costs: Distribution of funds will fall in the online trading regime
by 2003. Bharti AXA Life Insurancecould bring down their
administrative costs to 0.75% if trading is done on- line. As per SEBI
regulations, bond funds can charge a maximum of 2.25% and equity
funds can charge 2.5% as administrative fees. Therefore if the
administrative costs are low, the benefits are passed down and hence
Bharti AXA Life Insuranceare able to attract mire investors and increase
their asset base.

• Better advice: Bharti AXA Life Insurancecould provide better advice to


their investors through the Net rather than through the traditional
investment routes where there is an additional channel to deal with the
Brokers. Direct dealing with the fund could help the investor with their
financial planning.
• In India, brokers could get more Net savvy than investors and could help
the investors with the knowledge through get from the Net.

• New investors would prefer online: Bharti AXA Life Insurancecan target
investors who are young individuals and who are Net savvy, since
servicing them would be easier on the Net.
• India has around 1.6 million net users who are prime target for these
funds and this could just be the beginning. The Internet users are going to
increase dramatically and Bharti AXA Life Insuranceare going to be the
best beneficiary. With smaller administrative costs more funds would be
mobilized .A fund manager must be ready to tackle the volatility and will
have to maintain sufficient amount of investments which are high
liquidity and low yielding investments to honor redemption.

• Net based advertisements: There will be more sites involved in ads and
promotion of Life Insurances. In the U.S. sites like AOL offer detailed
research and financial details about the functioning of different funds and
their performance statistics. a is witnessing a genesis in this area . There
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
are many sites such as indiainfoline.com and indiafn.com that are doing
something similar and providing advice to investors regarding their
investments.

Reasons for bad performance of Bharti AXA Life Insurance

Most investors associate Bharti AXA Life Insurancewith Master gain, Monthly
Equity Plans of SBI Life Insurance, UTI and Canbank Life Insurance and of
course Morgan Stanley Growth Fund. This is so because these funds truly had
participation from masses, with a fund like Morgan Stanley having more than 1
million investors. Investors feel that after 5 years, Morgan Stanley Growth Fund
units still trade below the original IPO price of Rs 10.

It is incorrect to think that all Bharti AXA Life Insurancehave performed


poorly. If one looks at some income funds, they have come with reasonable
returns. It is only the performance of equity funds, which has been poor. Their
poor performance has been amplified by the closed end discounts i.e. units of
these funds quoting at sharp discounts to their NAV resulting in an even poorer
return to the investor.

One must remember that a Life Insurance does not provide assured returns and
neither can it "manufacture" returns out of thin air. Returns provided by Bharti
AXA Life Insuranceare a function of the returns in the underlying asset class in
which the fund invests. Good funds can beat returns in their asset class to some
extent but that’s all. E.g. take the case of a sector specific fund like a pharma
fund which invests only in shares of pharmaceutical companies. If the Govt.
comes with new regulation that severely restricts the pricing freedom of these
companies resulting in negative outlook for the sector, the prices of all stocks in
the sector could fall substantially resulting in severe erosion in the NAV of the
fund. No one can do anything about it. A good fund manager would probably sell
part of the fund before prices fall too much and wait for an opportune time to
reinvest at lower levels once the dust has settled. In that case, the NAV of the
fund would fall to a lesser extent – but fall it will. If the investor in the fund has
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
invested in some stocks in the sector on his own, in all probability, his personal
investments may have depreciated to a larger extent.

Most Life Insurance managers took some time to realize the changed
circumstances wherein the open economy ushered in by the liberalization took
the full impact of the global deflation in commodity prices. This problem was
compounded further by the Asian crisis after which cheap imports from Asia
caused severe pressure on profits.

One more issue is that the fund managers in many funds were not
"professionally qualified and experienced". This is especially true of some of the
funds floated by nationalized banks. Some of these individuals were transferred
from the parent organization and did not really know much about investment
management.

Lastly, investors would do well to have a look at the investments, which they
made on their own. In most cases, they would have done much worse than the
Life Insurances. We have received numerous requests for advice from individual
investors on what to do about their own investments. If that were any indicator,
investors would have done really badly.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Market Share of Bharti AXA Life Insurancein India

S.No. Asset Management Company AUM Market Share

(Rs. In Crore) ( in %)

1. ABN Amro 1572.1 0.94

2 Alliance Capital 1341.91 0.80

3. Benchmark 495.85 0.30

4. Birla Sun Life 10722.37 6.38

5. BoB 124.85 0.07

6. CanBank 1895.46 1.13

7. Cholamandalam 910.79 0.54

8. Deutsche 2317.65 1.38

9. DSP ML 7074.2 4.21

10. Escorts 122.62 0.07

11. Fidelity 1495.4 0.89

12. Franklin Templeton 17079.3 10.17

13. Global Insurance Co. 122.09 0.07

14. HDFC 15709.86 9.35

15. HSBC 7569.61 4.51

16. ING Vysya 1925.17 1.15

17. JM Financial 3975.26 2.37

18. Kotak Mahindra 7296.86 4.34

19. LIC 2872.26 1.71

20. Morgan Stanely 1640.47 0.98

21. Principal 611.5 3.64

22. Pru ICICI 17196.43 10.24

23. Reliance 10129.89 6.03

24. Sahara 300 0.18


Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

25. SBI 7182.29 4.28

26. Standard Chartered 8143 4.85

27. Sundram 1871.42 1.11

28. TATA 8164.23 4.86

29. Taurus 176.27 0.10

30. UTI MF 22443.74 13.36

Total AUM 167986.85 100.00


Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

THEORY ON RECRUITMENT & TRAINING

The Recruitment Process: Recruitment refers to the process of sourcing, screening,


and selecting people for a job or vacancy within an organization. Though individuals
can undertake individual components of the recruitment process, mid- and large-size
organizations generally retain professional recruiters. These are the main stages in
recruitment.

A) Sourcing: Sourcing involves

1) Advertising- It is a common part of the recruiting process, often


encompassing multiple media, such as the Internet, general newspapers, job ad
newspapers, professional publications, window advertisements, job centers, and
campus graduate recruitment programs; and

2) Recruiting Research- which is the proactive identification of relevant talent


who may not respond to job postings and other recruitment advertising methods done
in #1. This initial research for so-called passive prospects, also called name-
generation, results in a list of prospects who can then be contacted to solicit interest,
obtain a resume/CV, and be screened (see below).

B) Screening & Selection:

Suitability for a job is typically assessed by looking for skills, e.g. communication,
typing, and computer skills. Qualifications may be shown through résumés, job
applications, interviews, educational or professional experience, the testimony of
references, or in-house testing, such as for software knowledge, typing skills,
numeracy, and literacy, through psychological tests or employment testing.

In some countries, employers are legally mandated to provide equal opportunity in


hiring.

C) On boarding:
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
A well-planned introduction helps new employees become fully operational
quickly and is often integrated with the recruitment process.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

SOURCES OF RECRUITMENT
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Training and Development

In organizational development, the related field of training and development (T & D)


deals with the design and delivery of learning to improve performance, skills, or
knowledge within organizations.

In some organizations the term Learning and Development is used instead of Training
and Development in order to emphasize the importance of learning for the individual
and the organization. In other organizations, the term Human Resource Development
is used.

Types of T & D

1. Coaching
2. Continuing Professional Development or CPD
3. E-learning aka Online Learning, Distance Learning, Web-Based
Learning
4. Executive education
5. Executive development
6. Leadership development
7. Instructional Animation
8. Instructional Design
9. Instructional Strategies
10. Knowledge Management
11. Organizational Learning
12. Organizational knowledge
13. Mentoring
14. Teaching Method
15. Blended learning
16. Outbound Management Development Programmes
17. Performance Management

The various forms of Training and development are explained below.


Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
1. Coaching is a method of directing, instructing and training a person or
group of people, with the aim to achieve some goal or develop specific
skills. There are many ways to coach, types of coaching and methods to
coaching. Direction may include motivational speaking. Training may
include seminars, workshops, and supervised practice.

2. Continuing Professional Development (CPD) or Continuing Professional


Education (CPE) is the means by which members of professional
associations maintain, improve and broaden their knowledge and skills
and develop the personal qualities required in their professional lives.
CPD is defined as the holistic commitment to structured skills enhancement
and personal or professional competence.

3. Electronic learning (or e-Learning or eLearning) is a type of education


where the medium of instruction is computer technology. No in-person
interaction may take place in some instances. E-learning is used
interchangeably in a wide variety of contexts. In companies, it refers to
the strategies that use the company network to deliver training courses to
employees. In the USA, it is defined as a planned teaching/learning
experience that uses a wide spectrum of technologies, mainly Internet or
computer-based, to reach learners at a distance. Lately in most
Universities, e-learning is used to define a specific mode to attend a course
or programmes of study where the students rarely, if ever, attend face-to-
face for on-campus access to educational facilities, because they study
online.

4. Executive Education is the term used for programs at graduate-level


business schools that aim to give classes for Chief Executives and other
top managers or entrepreneurs. These programs do not usually end in a
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
degree, although there is an ever-growing number of an Executive MBA
program that are very similar and offer a Masters of Business
Administration upon completion of the coursework.

5. Executive development is the whole of activities aimed at developing the


skills and competencies of those that (will) have executive positions in
organizations. While "executive" and "manager" and "leader" is often
used interchangeably, "executive" is commonly used to signify the top 5%
to 10% of the organization. Similarly, "development" and "training" and
"education" are often used as synonyms, however "development" is
generally seen as the most encompassing of the three in terms of activities
that build skills and competencies.

6. Leadership development: Leadership development refers to any activity


that enhances the quality of leadership within an individual or
organization. These activities have ranged from MBA style programs
offered at university business schools to high-ropes courses and executive
retreats.

7. Instructional Animations are animations that are used either to provide


instructions for immediate performance of a task or to support more
permanent learning of subject matter. While both of these uses can be
described as instructional animations, when the goal is to support
learning, the term educational animation may be preferred.

8. Instructional Design is the practice of arranging media (communication


technology) and content to help learners and teachers transfer knowledge
most effectively. The process consists broadly of determining the current
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
state of learner understanding, defining the end goal of instruction, and
creating some media-based "intervention" to assist in the transition.
Ideally the process is informed by pedagogically tested theories of
learning and may take place in student-only, teacher-led or community-
based settings. The outcome of this instruction may be directly observable
and scientifically measured or completely hidden and assumed.

9. Knowledge Management ('KM') comprises a range of practices used by


organizations to identify, create, represent, distribute and enable
adoption of what it knows, and how it knows it. It has been an established
discipline since 1995 with a body of university courses and both
professional and academic journals dedicated to it. Many large companies
have resources dedicated to Knowledge Management, often as a part of
'Information Technology', 'Human Resource Management' or Business
strategy departments. Knowledge Management is a multi-billion dollar
world-wide market.

10. Organizational learning is an area of knowledge within organizational


theory that studies models and theories about the way an organization
learns and adapts. In Organizational development (OD), learning is a
characteristic of an adaptive organization, i.e., an organization that is able
to sense changes in signals from its environment (both internal and
external) and adapt accordingly. OD specialists endeavor to assist their
clients to learn from experience and incorporate the learning as feedback
into the planning process.

11. Organizational knowledge: What is the nature of knowledge created,


traded and used in organizations? Some of this knowledge can be termed
technical – knowing the meaning of technical words and phrases, being
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
able to read and make sense of economic data and being able to act on the
basis of law-like generalizations. Scientific knowledge is ‘propositional’; it
takes the form of causal generalizations – whenever A, then B. For
example, whenever water reaches the temperature of 100 degrees, it boils;
whenever it boils, it turns into steam; steam generates pressure when in
an enclosed space; pressure drives engines. And so forth.

12. Mentorship refers to a developmental relationship between a more


experienced mentor and a less experienced partner referred to as a
protégé, mentoree, or (person) being mentored—a person guided and
protected by a more prominent person.

13. Teaching methods are best articulated by answering the questions, "What
is the purpose of education?" and "What are the best ways of achieving
these purposes?". For much of prehistory, educational methods were
largely informal, and consisted of children imitating or modeling their
behavior on that of their elders, learning through observation and play.
In this sense the children are the students, and the elder is the teacher. A
teacher creates the course materials to be taught and then enforces it.

14. Blended Learning is the combination of multiple approaches to learning.


Blended learning can be accomplished through the use of 'blended'
virtual and physical resources. A typical example of this would be a
combination of technology-based materials and face-to-face sessions used
together

to deliver instruction. In the strictest sense, blended learning is when an


instructor combines two methods of delivery of instruction. However, this
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
term most often applies to the use of technology on instruction. A good
example of blended learning would be to give a well-structured introductory
lesson in the classroom, and then to provide follow-up materials online.

15. Outbound Management Development Programmes are a training method


for enhancing organizational performance through experiential learning.
These programmes generally revolve around activities designed to
improve leadership, communication skills, planning, change management,
delegation, teamwork, and motivation. Participants are divided into
teams and assigned tasks or activities for completion in a specified time.
Achievement and performance during these activities is reviewed in
group discussions to identify behaviors that enhance performance or lead
to failure or decreased performance.

16. Performance measurement is the process of assessing progress toward


achieving predetermined goals. Performance management is building on
that process, adding the relevant communication and action on the
progress achieved against these predetermined goals.

• In network performance management

(a) A set of functions that evaluate and report the behavior of


telecommunications equipment and the effectiveness of the network or
network element and

(b) a set of various sub-functions, such as gathering statistical information,


maintaining and examining historical logs, determining system performance
under natural and artificial conditions, and altering system modes of
operation.

• In organizational development (OD), performance can be thought of as


Actual Results vs Desired Results. Any discrepancy, where Actual is less
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
than Desired, could constitute the performance improvement zone.
Performance management and improvement can be thought of as a cycle:

1. Performance planning: where goals and objectives are established


2. Performance coaching: where a manager intervenes to give feedback and
adjust performance
3. Performance appraisal: where individual performance is formally
documented and feedback delivered.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

LIMITATIONS OF THE PROJECT

Following are some reasons that demotivate and demoralize people from
becoming Life advisors. I came across the following obstacles that arose in the
process of recruitment:

Lack of awareness among the people – This is the biggest limitation found
in this sector. Most of the people are not aware about the importance and the
necessity of the insurance in their life. They are not aware how useful life
insurance can be for their family members if something happens to them.

Perception of the people towards Insurance sector – People still consider


insurance just as a Tax saving device. So today also there is always a rush to buy
an Insurance Policy only at the end of the financial year like January, February
and March making the other 9 months dry for this business.

Insurance does not give good returns – Still today people think that
Insurance does not give good returns. They are not aware of the modern Unit
Linked Insurance Plans which are offered by most of the Private sector players.
They are still under the perception that if they take Insurance they will get only
5-6% returns which is not true nowadays.

Lack of awareness about the earning opportunity in the Insurance


sector – People still today are not aware about the earning opportunity that the
Insurance sector gives. After the privatization of the insurance sector many
private giants have entered the insurance sector. These private companies in
order to beat the competition and to increase their Insurance Advisors to
increase their reach to the customers are giving very high commission rates but
people are not aware of that.

Increased competition – Today the competition in the Insurance sector has


became very stiff. Currently there are 14 Life Insurance companies working in
India including the LIC (life insurance Corporation of India). Today each and
every company is trying to increase their Insurance Advisors so that they can
increase their reach in the market. This situation has created a scenario in which
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
to recruit Life insurance Advisors and to sell life Insurance Policy has became
very-very difficult.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Brief History of the Insurance Sector in India

The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.

The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves against
loss and disaster existed in primitive men also. They too sought to avert the evil
consequences of fire and flood and loss of life and were willing to make some sort
of sacrifice in order to achieve security. Though the concept of insurance is
largely a development of the recent past, particularly after the industrial era –
past few centuries – yet its beginnings date back almost 6000 years.

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 these companies were not insuring Indian natives.
• 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.
• Bharat Insurance Company (1896) was also one of such companies
inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise
to more insurance companies.
• The United India in Madras, National Indian and National Insurance in
Calcutta and the Co-operative Assurance at Lahore were established in
1906.
• In 1907, Hindustan Co-operative Insurance Company took its birth in one
of the rooms of the Jorasanko, house of the great poet Rabindranath
Tagore, in Calcutta.
• The Indian Mercantile, General Assurance and Swadeshi Life (later
Bombay Life) were some of the companies established during the same
period.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

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.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Some of the important milestones in the life insurance business in


India are:

1850: Non life insurance debuts with triton insurance company.

1870: Bombay mutual life assurance society is the first Indian owned life insurer.

1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.

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

1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC
Act, 1956, with a capital contribution of Rs. 5 Crore from the Government of India.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI


Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and
recommend its future direction.
The Malhotra committee was set up with the objective of complementing the reforms
initiated in the financial sector.

The reforms were aimed at “creating a more efficient and competitive financial
system suitable for the requirements of the economy keeping in mind the structural
changes currently underway and recognizing that insurance is an important part of the
overall financial system where it was necessary to address the need for similar
reforms…”.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

The Insurance Regulatory and Development Authority (IRDA)

The Insurance Act, 1938 had provided for setting up of the Controller of
Insurance to act as a strong and powerful supervisory and regulatory authority
for insurance. Post nationalization, the role of Controller of Insurance
diminished considerably in significance since the Government owned the
insurance companies.

But the scenario changed with the private and foreign companies foraying in to
the insurance sector. This necessitated the need for a strong, independent and
autonomous Insurance Regulatory Authority was felt. As the enacting of
legislation would have taken time, the then Government constituted through a
Government resolution an Interim Insurance Regulatory Authority pending the
enactment of a comprehensive legislation.

The Insurance Regulatory and Development Authority Act, 1999 is an act to


provide for the establishment of an Authority to protect the interests of holders
of insurance policies, to regulate, promote and ensure orderly growth of the
insurance industry and for matters connected therewith or incidental thereto
and further to amend the Insurance Act, 1938, the Life Insurance Corporation
Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end
the monopoly of the Life Insurance Corporation of India (for life insurance
business) and General Insurance Corporation and its subsidiaries (for general
insurance business).
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

PROFILE OF ORGANIZATION

Bharti AXA Life Insurance is a joint venture between Bharti, one of India’s leading
business groups with interests in telecom, agri business and retail, and AXA, world
leader in financial protection and wealth management. The joint venture company has
a 74% stake from Bharti and 26% stake of AXA.

.
The company launched national operations in December 2006. Today, we have over
5200 employees across over 12 states in the country. Our business philosophy is built
around the promise of making people "Life Confident".

As we expand our presence across the country to cater to your insurance and wealth
management needs with our product and service offerings, we continue to bring 'life
confidence' to customers spread across India. Whatever your plans in life, you can be
confident that Bharti AXA Life will offer the right financial solutions to help you
achieve them.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

The Joint Venture BHARTI and AXA

BHARTI
Bharti Enterprises is one of India’s leading business groups with interests in telecom,
agri business, insurance and retail. Bharti has been a pioneering force in the telecom
sector with many firsts and innovations to its credit. Bharti Airtel Limited, a group
company, is one of India’s leading private sector providers of telecommunications
services with an aggregate of 60 million customers, spanning mobile, fixed line,
broadband and enterprise services. Bharti Airtel was ranked amongst the best
performing companies in the world in the BusinessWeek IT 100 list 2007. Bharti
Teletech is the country’s largest manufacturer and exporter of telephone terminals.
Bharti has a joint venture with ELRo Holdings India
Ltd. – ‘FieldFresh Foods Pvt. Ltd’ - for global distribution of fresh fruits and
vegetables. Bharti also has a joint venture - ‘Bharti AXA Life Insurance Company
Ltd.’ - with AXA, world leader in financial protection and wealth management. Bharti
has recently forayed into the retail business under a company called Bharti Retail Pvt.
Ltd. It also has a joint venture – ‘Bharti Wal-Mart Private Limited’ – with Wal-Mart,
for wholesale cash-and-carry and back-end supply chain management operations.

AXA Group

AXA Group is a worldwide leader in Financial Protection. AXA's operations are


diverse geographically, with major operations in Western Europe, North America and
the Asia/Pacific area. AXA had Euro 1,315 billion in assets under management as of
December 31, 2006. For full year 2006, IFRS revenues amounted to Euro 79 billion,
IFRS underlying earnings amounted to Euro 4,010 million and IFRS adjusted
earnings to Euro 5,140 million.
The AXA ordinary share is listed and trades under the symbol AXA on the Paris
Stock Exchange. The AXA American Depository Share is also listed on the NYSE
under the ticker symbol AXA.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Bharti AXA Life Insurance

Vision

To be a leader and the preferred company for financial protection and wealth
management in India by 2012.

Values

• Professionalism
• Innovation
• Team Spirit
• Pragmatism
• Integrity

Strategy

• To achieve a top 5 market position in India through a multi-distribution, multi-


product platform
• To adapt AXA's best practice blueprints as a sound platform for profitable
growth
• To leverage Bharti's local knowledge, infrastructure and customer base
• To deliver high levels of shareholder return
• To build long term value with our business partners by enhancing the
proposition to their customers
• To be the employer of choice to attract and retain the best talent in India
• To be recognized as being close and qualified by our customers
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

GOOD PRACTICES

The guiding Human Resources principles at Bharti AXA are:

1. Provide Clearly define scope of responsibilities and empower people to deliver


2. people with the means to develop their competencies
3. Consider individual training and development a priority investment
4. Build organizations that are conducive to teamwork and that involve everyone
5. Promote ongoing dialogue between managers and the people who report to them
6. Make cultural difference a key source of strength.

Strategic differentiators:

• Strong partner Bharti - provides access to customer base of more than 20


million.
• Multi channel execution capability.
• Current Asia product range which is a strong match to products sold to the
mass and mass affluent.
• Global scale providing cost effective and speedy re-use of systems, products
and business capability.
• Strong AXA and Bharti brands which can be leveraged to attract and retain a
high quality management team.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Insurance Products of Bharti AXA

Life insurance products for individuals:

Bharti AXA Dream Life Pension

A Unit Linked Pension Product

Dream Life Pension, Bharti AXA Life Insurance’s unique pension product ensures
that your retirement life is your Dream Life.

Bharti AXA Life Aspire Life

Unit Linked Endowment Product.

Aspire Life helps you create a pool of wealth to meet your long-term needs, while
also providing you adequate protection in case the need arises.

Bharti AXA Life Invest Confident

Unit Linked Single Premium Product.

You have always strived hard to achieve the best for you and your loved ones, so
when it comes to making an investment decision, we know that you would expect the
best from it too.

Bharti AXA Life Wealth Confident

A unit-linked investment cum protection policy.

Your wealth, your status ensures that you get preferential status wherever you go. So
why shouldn't your money get the same?

Bharti AXA Life Future Confident

A unit-linked policy which offers comprehensive protection along with wealth


creation in the long term.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Bharti AXA Life Future Confident II

A unit-linked product which offers enhanced protection along with wealth creation in
the long term.

Bharti AXA Life Save Confident

for your family. Traditional money back insurance product for long term savings.

Your changing lifestages decide your financial milestone planning. When you foresee
intermittent financial requirements in the years to come, like regular expenses related
to your child’s education, liquidity becomes a key aspect of your planning along with
long term savings, and protection

Bharti AXA Life Secure Confident

A Long Term Life Insurance.

All of us desire to maximise the happiness for our family at all times, irrespective of
the circumstances. The thought of unfortunate events befalling us may cause us
anxiety about providing a secured happiness to our loved ones.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Life insurance products for Group Insurance:

Bharti AXA Life Mortgage Credit Shield

Mortgage Credit Shield is a Group Product that provides coverage to people who have
availed of a Mortgage\ Home loan\ Home equity loan from an Institution/Bank.

Bharti AXA Life Credit Shield

Credit Shield is a Group Product that provides coverage to people who have availed
of a loan for 1 to 5 years from Group Policy holder.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

RESEARCH DESIGN AND METHODOLOGY


Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It
may be understood as a science of studying how research is done. We can say
that research methodology has many dimensions and research methods do
constitute a part of the research methodology. The study of research
methodology gives the student the necessary training in gathering material and
arranging or car-indexing them, participation in field work when required, and
also training in techniques for the collection of data appropriate to particular
problem, in the use of statistics, questionnaires and controlled experimentation
and in recording evidences, sorting it out and interpreting it. Knowledge of
research methodology plays a key role in project work. It consists of series of
actions or steps necessary to effectively carry out research and the desired
sequencing of these steps.
Data Collection Method
Data can be collected by Primary as well as secondary method.

1) Primary Data Sources


Questionnaire methods and discussions with the HR and the employees were used to
collect data.

Questionnaire Designed: Questionnaire was used for the survey.


2) Secondary Data Sources
The secondary data sources were collected from the company manuals,
handbooks, and management books and are edited to suite the purpose.

Investment in Life Insurance is not a one-time activity. It is a continuous activity.


The same investor, if satisfied, will come to the fund again and again. When the
investor sends his application, it is not only an application, but it also contains
vital information. Most of this information if tabulated and analyzed, would
provide important insights into investor needs, preferences and behavior and
enables us to target customers need more accurately, to achieve better
penetration, deeper loyalty and reduced costs. It is in this context that direct
marketing will assume increased importance. Knowing the customer thoroughly
is of utmost importance. Unlike the consumer goods industry, it is not possible
for Life Insurance industry to test market and have pilot projects before launch.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
At the same time, focusing and concentrating on a particular geographic area
where the fund has a strong presence and proven marketing network, can help
reduce network, can help reduce issue expenses and ultimately translate into
higher returns for the investor. Very little research on investor preference is
available, but the industry can collectively have a data bank, and share the
information for appropriate use.

This study on Life Insurances in India has been based on primary as well as
secondary data sources.

The primary data is collected by the getting the questionnaire filled from the
common investor above the age of 25.

For this research, I have made use of a questionnaire for ascertaining the
investment pattern of a common investor.

The questionnaire consisted of 13 questions in total, each question having


various multiple choices. Depending upon the choice selected by the respondent,
each respondent gets a total score which represents his degree of favorability
towards the kind of investment he makes and his knowledge about the
investments.
The main aim of conducting the survey using a questionnaire was to
understand the perception of small investors, who are the most exploited in
Indian capital Market, analyze the type of funds available for the investor,
understand the investment pattern of a common investor, importance of
marketing Strategies in Life Insurances.
This was done by ascertaining the average response of all the samples for the
total 13 questions asked in the questionnaire. The results for the 13 questions
asked were further graphically represented, showing the favorability towards
different parameters.

The secondary resources used in the study are:

• Books
• Journals
• Magazine Articles
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
• Internet Websites.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

RESEARCH DESIGN

Exploratory type of research designs adopted because sources of information are


relatively few and the purpose is merely to find and to understand the possible
actions. The major purposes of exploratory study are:
 Identification of problem

 The precise formulation of problems including the identification of


variables

 Formulation of alternative course of action

An exploratory research is often the first in the series of projects that culminates
in one concerned with the drawing of inferences that are used as a basis of
monetary action. Exploratory study is often used as a introductory phase of a
larger study and results are used in developing specific technique for larger
study. Of the study the relevant questionnaire was prepared and circulated
among a stratified sample of 50 employees of BHARTI AXA LIFE INSURANCE
Limited. This questionnaire formed the basis for the views on each of the points
raised in the questionnaire. The data thus obtained formed the basis of
information regarding the existing recruitment and selection processes at
BHARTI AXA LIFE INSURANCE. and the same is analyzed and interference is
drawn regarding the various aspects of recruitment and the entire process of
selection at BHARTI AXA LIFE INSURANCE
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

SAMPLE DESIGN
Sampling technique:
Stratified sampling technique is adopted to conduct the research. Stratified purposive
sapling is a selection method for achieving a greater degree of representatives,
therefore decreasing the probable sampling error. It is based on the concept that a
homogeneous population produces samples with smaller sampling errors than does a
heterogeneous population. Stratified sampling is accomplished by placing all the
members of the population into groups according to some characteristics that is
common among them, that is homogeneous subsets of the population. Then specified
number of unit is chosen from each of the groups or strata by purposive means.

Sampling Plans
The sampling plan consists of sampling units, e.g. from functional departments
namely Marketing, Commercial, Technical and Human Resource. These employees
constitute the manpower in the company who are engaged in the day to day
functioning of the company, thus it is very important for them to understand the
various aspects of the entire selection process and also the importance of performance
appraisal system. Therefore, they had been selected for the project sampling

Sample Size:- Sample size was taken 1100 to undertake the survey.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

The Recruitment Process flowchart:-


Following is the flowchart of steps followed in recruitment of Life advisors:

Identifying Vacancy & advertising it



Prepare Job Description and person Specification

Short-listing on the basis of ‘Q’ scores

Conduction of interview

Filling up the compulsory IRDA form

Scheduling the training

Conduction of examination

Final selection as LA

The elaboration on all the steps given in the flow chart above is given in the following
pages.

Identifying vacancy and advertising it: the following changes in the scenario
led to the increasing vacancy for life advisors in Bharti AXA Pune.

Expansion of business as well as market.


Growing competition.
Change in demographics.

After the identification of vacancy pamphlets containing the details were prepared
and were distributed. The pamphlets used by us have been provided as Annexure
1, 2 and 3.

Preparing job description and person specification:

Career Bandwidth as a Life advisor at Bharti AXA:


Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
As a Life Advisor at Bharti AXA, there is only one way to grow. And that’s by
meeting and exceeding your targets.
As a good performer, you stand to get promoted from Bronze to Diamond Club and
enjoy special remuneration benefits.
As a Life Advisor, you can get appointed as an Agency Manager within a span of just
9 months to 1 year.
As a Life Advisor, you also get to participate in various business related projects and
committees.
Compensation
As a Life Advisor, you have the opportunity to create attractive earnings for the first
year and for the long term through payouts.
Higher the business you generate in the first year, higher the income you stand to earn
year after year.
Get rewarded through Best in Class Rewards and Recognition programs including
overseas conventions.
Support
All Bharti AXA branches have HR services for support on all matters related to
compensation and career so you can redress your concerns immediately.
State-of-the-art Distribution Training support.
Comprehensive marketing support in terms of brochures, illustrations etc.
Sales Management Support for on the job training and business closure.
Infrastructure & Technology support through dedicated Life Advisor’s bay equipped
with telephones, computers and internet at Bharti AXA premises.
Customer Service and operations support.
The details about the rewards and recognition are given in Annexure 4.

Short Listing on the basis of Q scores:

The five Qs- The Qs are 5 different criteria where the candidates are to be analyzed.
Q1- The candidate should have been a resident of Lucknowfor at least five years.
Q2- He/ She should be married.
Q3- His/ Her annual income should be at least 1.2 to 1.5 Lakhs.
Q4- He/ She should be a graduate.
Q5- Minimum age to be eligible for being a life advisor is 18.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

The significance of Qs
A high Q score implies possibility of better performance by the candidate as a life
advisor (meaning better revenue generation ability). On an average only a
candidate with a score of Q4 or Q5 was interviewed.
A low Q score implies lesser possibility of such performance.

Conduction of interview:

Pre- interview: Preparation of recruitment /selection document for Advertising.


Preparing advertisement
Media selection
Positioning
Response handling
Initial interview online or telephone
Short-listing for interviews
Interview arrangement
Sending emails or calling short listed candidates
Interview details to the short listed candidates
During Interview
HR interview
Technical interview
Conducting tests [Aptitude / Mathematical / Analytical etc.]
Initial final list of candidates
Reference check (if required)
Post interview
Email or Telephone call to unsuccessful candidates.
Technical Manager approval for a start up date.
Email or Telephone call to successful candidates.
HRM prepares a letter of appointment.
Selection Process
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
Starts with the preliminary interview.
Ends with contract of employment.
Different process for different organization.
Different process for different job in same organization.
Selection easy for shop floor workers.
Selection of managers are crucial.
Affected by internal & external environment.
Mutual decision making.

Filling up of compulsory IRDA form: A NAAF (New advisor application


form) is to be filled up by the candidate. Provided as annexure.
Scheduling of the training: Guidelines as per provisions of IRDA Act for
training of life advisors (effective from 31st October 2004).

The applicant shall have to undergo at least 100 hours’ practical training in life or
general insurance business which may be spread over three to four weeks,
where such applicant is seeking license for the first time to act as an insurance
agent.
The training duration should be minimum 18 working days excluding Sundays and
holidays.
No product training/market survey should be included into this hundred 100 hours
training. The product training, if any, to be given by the insurance company
should be over and above the minimum training hours prescribed by the
Authority
The attendance record of the trainees should be maintained at the Institute for
necessary inspection at any given point of time.
In case of short-fall of attendance, extra class may be permitted but the extra hours
may be specified separately with proper attendance and details of faculty.
Every Institute should have at least one qualified permanent faculty who is an
Associate or Fellow from the Insurance Institute of India for each stream i.e. for
Life and Non-Life.
The attendance register of the faculty members should be maintained at the training
institutes.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
The record of the payment made to faculty should be maintained at the training
institute i.e. batch-wise payment detail should be maintained.
The faculty should provide details of the other Institutes with whom they have been
empanelled as part-time/guest faculty.
Register should be maintained at the training institute giving details of batches
completed, strength of the each batch, number of candidates decertified, name
of the sponsored insurer and details of faculty who imparted the training with
dates.
The seating capacity of each class-room should not exceed 40.
The fresh accreditation will be given on need basis after assessing the needs of the
particular city/town.
The initial approval will be for a period of 3 years and consideration of further
renewal up to 3 years would depend on the satisfactory compliance of
requirements of accreditation.
The insurance companies would regularly send their officials to oversee the proper
conduct of the training at the institutes and would not sponsor candidates to
those institutes that are not maintaining the required standards of and facilities
for the training.
The training institute must display the certificate of accreditation to impart training
issued by the Authority at the training institute.
The Institute should not allow a franchisee to conduct courses on its behalf even if the
faculty is that of the Institute. The Institute should conduct the training on its
own premises or hired premises with proper infrastructure.
No marketing fee/consultancy fee payment is permitted for getting the training
batches.
It will be the responsibility of the Insurance Company to check the status of the
institute before sponsoring any candidates for training.
In case of mofussil areas or the cities where there are no accredited institutes and an
insurance company intends to appoint agents, it will be the responsibility of the
insurance company to conduct training.
The Institutes must keep with them one set of records of the training at the place
where the training is being imparted.
The Institute should confine its activities only to the place/city for which it has been
given the approval. No training outside the said place/city is permitted.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
The Institutes must submit a copy of the lease deed/rent agreement at the time of
seeking fresh accreditation/renewal/change of address of the institute.
On successful completion of training the candidates get COT i.e. the Completion of
Training Certificate by Bharti AXA.

1. Conduction of examination:
7.1 Syllabus: the syllabus prescribed by the authority for life insurance agents is
given in annexure 6. it is indicative and not exhaustive. The self study course
material developed by institute in book form only the broad basis of
examination which is available for sale with the institute and its associated
institutes. A candidate is expected to study the course material in depth and
also assimilate general information relevant to the subject. Candidate is also
expected to know up-to-date developments in the insurance industry.
7.2 Pattern of examination: normally objective type multiple choice
questions are asked. A candidate is required to indicate the correct alternative.
A candidate is required to secure at least 50% marks to be declared successful.
But the institute reserves the right to change, the pattern of question paper for
the examinations without notice to anyone to test the knowledge of the
candidate as it deems fit.
7.3 Mode of examination: The test can be taken up in either of the two
modes- online or offline. Depending on the mode of testing the training is also
arranged. For online mode the training is also done online whereas in offline
mode the training is done in the class room format of. The duration of
classroom training is 6+2 days. Where 6 days are reserved for compulsory
IRDA training and the remaining 2 days are for product based training.
7.4 Admission card: No candidate will be allowed to appear for the
examination unless he/ she produces the admission card. The admission card
will be issued by Bharti AXA. Besides admission card candidate must possess
COT issued by Bharti AXA.
7.5 Sample questions: a list of sample questions is given as annexure.
2. Final selection as Life Advisor: the final selection as Life advisor is
communicated to the candidate.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

SURVEY QUESTIONNAIRE
1. Name:
2. Age:
3. Sex: Male Female
4. Occupation:
• Government Employee
• Private Employee
• Student
• Proprietor
• Others

5. Number of Years spent in Pune:


• Less than 1 year
• 1-2 Years
• 2-3 Years
• 4-5 Years
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
6. Marital Status: Married Unmarried

7. Do you live in joint family? Yes No

8. If married do you have children, how many?


• 1 child
• 2 children
• 3 children
• 4 children
9. Which is your biggest concern for future?
• Child education
• Retirement
• Child’s marriage
• Medical illness
10. Have you made provision for future liabilities?
• Yes
• No
11. Given a chance would you like to make extra money?
• Yes
• No
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Analysis 1
Age of respondents: the following is the distribution of age of the respondents.
Age <25 Years 25-35 Years 35-45 Years >45 Years
Number of 584 396 73 47
individuals
Number of individuals

Age of respondents
700
584
600
500
396
400
300
200
73 47
100
0
<25 years 25-35 years 35-45 years >45 years
Age

 Less than 25 years of age individuals constitute 53% of sample size.


 Whereas individuals with more than 45 years of age constitute only 4%.

Interpretation: sample which has been surveyed is dominated by younger


individuals.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Analysis 2

Sex of respondents

Sex of Respondent

male female

female, 286, 26%

male, 814, 74%

Interpretation: Sample is dominated by males which constitute 74% of total size.


Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Analysis 3

Occupation of Respondents

Occupation Student Pvt. Govt. Proprietor Others


Employee Employee
Number 436 395 87 135 47

others, 47 govt. employee, 87


proprietor, 135

pvt. Employee, 395

govt. employee
pvt. Employee
student, 436 student
proprietor
others
Interpretation: Sample is dominated by students and Private Employees (76%).
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Analysis 4
Number of Years spent in lucknow.

Number of years spent in Lucknow


number of years

4-5 years 243

2-3 years 231

1-2 years 158

less than 1 year 468

0 50 100 150 200 250 300 350 400 450 500


number of individuals

Interpretation: Most of the individuals (less than 1 yr) have come to Lucknow to
study or work. The individuals with 4-5 years spent in Lucknow or more are basically
localites.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Analysis 5

Marital status:

Marital status

368, 33%

married
unmarried

732, 67%

Interpretation: two thirds of the sample size is Unmarried people.


Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Analysis 6

Question: Do you stay in a joint family in Lucknow?

Yes – 387 No- 713

Familytypeof respondent

800
7
13
7
00

600

5
00

387
400

300

200

1
00

stayinginjoint family not stayinginjoint family

Interpretation: Almost 65% of Individuals are staying either alone or in a nuclear


family. They are basically students or individuals who have come to Lucknow for job
opportunities.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Analysis 7

Question: If you are married, do you have any children? How many?

Number of children 1 child 2 children 3 children 4 children


Number of 97 72 15 1
individuals

Number of children if married.

120
97
Number of individuals

100

80 72

60

40

20 15
1
0
1 child 2 children 3 children 4 children

Interpretation: Only 185 respondents have children, of which 50% have only one
child.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Analysis 8

Question: What is your biggest concern for future?

Biggest concern for future

medical illness,
347, 32% child education,
433, 39%

child's marriage, child education


103, 9% retirement
retirement, 217,
20% child's marriage
medical illness

Interpretation: medical illness (32%) & child education (39%) are major concern
for future.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Analysis 9

Question: Have you made provision for future liabilities?

Yes: 304 No: 796

Have you made provision for future Liabilities.

yes, 304, 28%

no, 796, 72%

Interpretation: 72% of the individuals have made no provision for the future
liabilities.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Analysis 10

Question: Given a chance would you like to make extra money?

Yes: 833 No: 267

Given a chance would you like to make extra money?

no, 267, 24%

yes, 833, 76%

Interpretation: 76% of the individuals would like to make extra money. Such
individuals are identified and then they are motivated become Life advisors for an
extra source of income.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

FINDINGS
The findings are based on the survey undertaken and interview of individuals for
the procurement of life advisors.

Finally
selected Life 8
advisors
Individuals selected
for IRDA training
17

Among the Individuals with scores


> than Q3, those interviewed- 30

Among the individuals who were willing to make


extra money, those with Q score greater than 3-
242

Among the individuals surveyed, the individuals who were


willing to make extra money- 833

Total number of Individuals surveyed -1100

The major findings are:


1. The Individuals finally selected as Life advisors constitute 0.72% of Sample
size.
2. 47.05% of the Individuals who underwent the training cleared the exam.
3. 3.30% of the individuals who wanted to make extra money could finally be
selected for the Job.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

SUGGESTIONS

• The fee charged from candidates as application money should be waved off. It
should rather be paid by the Insurance Company.

• The strict training schedule should be made flexible. For a person who is Q4
or Q5 on score it is difficult for him/ her to be able to come for training
especially in case when he/ she is already working.

• The incentive system should be more attractive to motivate more and more
people for becoming Life Advisors.

• More and more promotional activities should be held for enhanced brand
building which will facilitate revenue generation and increased satisfaction
leading to customer retention in the long run.

• There is need to have in place a properly managed performance appraisal


system even for life advisors that would contribute to effective retention of
personnel.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

SOLUTIONS
The usual procedure to go about the project is to conduct the Group Field
Activity (GFA). In that, the trainees are sent to the market to gather data and leads.
They have only the survey questionnaire with them. We conducted this for the first 2
weeks. But the results were not up to the mark. The main reasons have been cited in
the limitations. To counter the hurdles faced, we came up with the following
solutions:

1. Promotion:

While interacting with the prospects, we had to convey the idea orally. The
retention time is very little as the respondents are in some hurry. Besides, the GFA, is
something such as a brochure could be handed out to the prospects, it would stay on
their minds. The Brochure would contain all the major details such as the benefits, the
compensation, the work flexibility and the requirements of being an Life Advisor.
Thus we designed a brochure/pamphlet on the same lines. But being trainees,
the expenses had to be borne by us. So we decided to print the brochure as flyers on
cheap recycled paper. We decided to distribute these flyers while taking survey.
Along with distributing the flyers, we decided to put the flyers

along with our contact information in the newspapers of the area. For this, we
contacted the local newspaper vendor. This gave us higher number of leads as we
were approaching the right target prospect.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

2. Event:

To generate more leads, we required to attract more people. This could be


done by a small event at some school or a social place like a mall or a shop. We
decided to approach a nearby primary school and offered to hold a drawing
competition for the students. The holiday season was nearing and this would mean
that more students would participate. The parents would come to the event as well and
hence we could generate leads.

3. Initial Screening Forms:

These are the forms which calculate the Q scores of the probable prospects. So
we decided to take the Initial screening form (ISF) questionnaire and get it filled by
the prospects in the first interaction itself so that we could shortlist candidates for the
second process. This saved time considerably as we did not have to go into details to
screen out the candidates. Now we could calculate the Q score directly.

4. Secondary Database:

We approached our respective guides to provide us with the database of the


current and past customers of the nearby areas. That way, we could hold a telephonic
conversation and hence generate leads.

Along with the GFA, the aforesaid actions helped us gather more leads for the
Business Opportunity Presentation.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

RESULT

• After undertaking the entire process of questionnaire survey, individuals were


analyzed on the basis of their Q scores.

• Those individuals whose Q score was greater than 3 were considered better
prospects to be Life advisors.

• 30 individuals were Interviewed.

• 17 individuals were selected for IRDA training.

• 8 individuals successfully completed the training and passed the Exam and
were Finally selected as Life advisors at Bharti AXA Life Insurance, Gomti
Nagar, Lucknow.
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

For the purpose of this report, it was found that the questionnaire and interview
questions, employee manual were sufficient to obtain the information required to
analyze the process of requirement and selection within the organization. It has
been found that the organization has a sound understanding of what process
need to be used in order to achieve effective recruitment and selection of Life
advisors. In addition to this, there are several recommendations for the
organization.
For any firm to be successful the main objectives should be:
• Sustainable long-term growth,
• Stable income and
• Asset preservation;
• Need to emphasize quality and diversification in both equity and fixed
income asset classes.
• Focus should be on long-term consistent investment performance.
• Emphasis towards training and enhancing skills of recruits needs to be
more.
• Invest more in current staff than in Recruitment:
• Conduct internal audit.
• Be Creative
• Understand and manage salary:

The general perception of life insurance has to change in India before progress is
made in this field.

BIBLIOGRAPHY


Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
• www.irdaindia.org

• www.bharti-axalife.com

• NAAF
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Annexure 1
PERSONAL DETAIL FORM

DATE:

NAME: CONTACT
NUMBER:
FATHER’S NAME:
AGE: D.O.B:
OCCUPATION:
ADDRESS:

FAMILY HISTORY:
NAME AGE OCCUPATION
FATHER:

MOTHER:

BROTHER:

SISTER:

E-MAIL:
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

Annexure 2
Broad syllabus for pre- recruitment exam for life insurance agent:

1. Introduction to insurance:
• What is insurance
• Purpose and need of insurance
• Classification of risk
• The human asset
• Insurance as a social security tool
• Role of insurance in economic development

2. Principles of life assurance:


• life insurance contracts
• principle of utmost good faith
• insurable interest
• principle of indemnity
• different risks

3. Premium and bonus


• what is premium?
• Premium calculation
• Life fund
• Actuarial valuation
• Bonus

4. Life insurance products


• basic elements
• some popular plans
• variable insurance plans
• salary saving schemes
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

• riders
• annuities
• group insurance

5. Underwriting
• introduction
• classification of risk
• financial underwriting
• assessing risk
• adverse selection
• non medical underwriting
• recent rends

6. Insurance documents
• proposal form and personal statements
• first/ renewal payment receipt
• policy document
• endorsement
• prospectus

7. Policy conditions
• age, days of grace
• lapse and non- forfeiture
• paid up value
• revival
• assignment, nomination
• surrenders and loan
• foreclosure
• alterations
• married women’s property act policy
Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors

8. Claims
• maturity claims
• survival benefit payments
• death claims
• accident and disability benefits
• claims concessions.

9. Unit linked life insurance products


• what is linked policy
• option of funds
• net asset value (NAV)
• flexibility
• lock in
• charges
• ULIP and traditional insurance
• Annuities and pensions

10. Insurance agency


• definition of an agent
• agents’ regulation
• procedure for becoming an agent
• methods of remunerating agents
• agency as a profession
• functions of agents
• responsibilities of an agent
• pre requisites for success
• ethical behavior

11. Law and regulations


Project Report on Sales Promotion, Recruitment, Training and Development of Life
Advisors
• insurance act 1938
• LIC act 1956

• IRDA act 1999


• Consumer protection act 1986 (COPA)
• Ombudsman
• Income tax act
• MWP act
• Rural and social sector
• Micro insurance

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