SUMMER TRAINING PROJECT REPORT ON DISTRIBUTION CHANNEL

UNDERTAKEN AT HDFC SLIC

Submitted in partial fulfillment of the requirement of degree of BBA

Month and year of submission JULY 2011

Under the Guidance of Mrs. Supriya SDM, Bhiwani

Submitted by: Rekha Roll no: - 908 BBA 5th SEM

KEDARNATH AGGARWAL INSTISUTE OF MANAGEMENT, CHARKHI DADRI (Affiliated to MDU, ROHTAK)

CERTIFICATE

PREFACE

We cannot achieve anything worthwhile in any field of knowledge solely on the basis of theoretical knowledge from books. To develop healthy managerial and administrative skills in potential managers, it is necessary that the theoretical knowledge be supplemented with the real business environment. Actually, it is the implementation of theory in practice, which is the life force of management. My training at HDFC Standard Life Insurance had been a wonderful experience. I had the opportunity of getting practically insight into the business world, which enables me to supplement the principles of management with critical working of this leading organization. I have tried to put in our best efforts to make this project really useful to the company. Now it is their satisfaction that decided my success. I am hoping for the best.

ACKNOWLEDGEMENT
A project report is never the sole product of the person whose name appears on the cover. There are always some people who guidance proves to be an immense help in giving its final shape so, it becomes my first duty to express my gratitude towards all of them. I am thankful to MR VIKAS GAJWANI, for giving me his kind permission to carry out SUMMER TRAINING in his organization. I feel especially privileged to work under the kind supervision of Mr. VIKAS GAJWANI (ASM) HDFC SLIC, who guided me at every step to make the project a real success. I also pay my deep regards to Mrs. Supriya, who extended me time-to-time help in this project. I am extremely thankful to god who is the ultimate guide providing me with valuable, insight, courage and determination at every doorstep with deep regard always

(REKHA)

CONTENTS
Significance of study Review of existing Literature Conceptualization y Introduction to the topic y Introduction of the company. y Industry profile 4) Focus on Problem 5) Objectives of study 6) The Research methodology includes:y Universe and Survey Population y Research design. y Sample y Collection of data y Analytical tool. 7) Data analysis and interpretations. 8) Suggestion

1) 2) 3)

9) 11) 12) 13) 14)

Limitations of the study Organization of the study Conclusion Annexure Reference

SIGNIFICANCE OF THE STUDY

Distribution means relinquishing some control over how and to whom the products are sold. But producers can often gain in effectiveness and efficiency by using intermediaries. Through their contacts, experience, specialization and scale of operation, intermediaries make good widely available and accessible to target market, usually offering the firm more than it can achieve on its own.

The channels chosen affect all the marketing decisions. The companys pricing decision depends on whether it uses mass merchandisers. The firms sales force and advertising decisions depend on how much training and motivation dealers need. In addition channel decisions include relatively long term commitments with other firms as well as a set of policies and procedures. Channel choice themselves depend on the companys marketing strategy with respect to segmentation, targeting, and positioning. Holistic marketing ensure that marketing decisions in all these different areas are made to collectively minimize value. Marketing activities directed towards the channel as part of a push strategy are more effective when accompanied by a well designed and well executed pull strategy that activates consumer demand. On the other hand, without at least some consumer interest, it can be very difficult to gain much channel acceptance and support.

REVIEW OF EXISTING LETRATURE

1. Levy (2007) in a study on the media touch has found that The insurance industry including brokers and agent in particular plays the important role of protecting the populace from the vagaries of life. There is therefore an incumbent need to challenge the publicity in the media that is unfair or incorrect about the insurance industry.

2. Venugopal (2010) in a study on Bankssurance in India has found that Bankssurance has emerged as the most popular additional distribution channel after the age old agency channel in view of the wide that banks have. There are 70,000 bank branches in India having more than 20 cores of savings accounts. The article deals with issues, opportunities, challenges and problem in particular reference to life insurance selling through banks.

3. Tuohy (2008) in a study on a competitive insurance market has found that The distribution gears of commercial insurance in efficiency and market distribution, according to European Union regulators. On average, though, across the 25 members of European Union brokers were the dominant distribution channel in 2005.

4. Varadharjan and Susarla (2009), in a study on Championing and institutionalizing insurers TCF charter has found that Treating customers fairly as a corporate strategy should be formulated by the top management and should percolate to the lowest levels of workforce. The article suggests a road map for implementation of TCF. 5. Asthana (2009), in a study on The next frontier has found that The vast growth in the telecom industry across the length and breadth of the country, telecom distribution will be one distribution model to look for in the year to come. With

over 400 million subscribers being added every month, it would be fair to say that this client base would be as diverse as the Indian population itself.

6. Venugopal (2009), in a study on Life insurance agency has found that Life insurance is never bought- it is always sold so goes a saying. This underlies the face that people never go to purchase a life insurance policy as they do for other needs like food, clothing and shelter. Although life insurance can be called the fourth need after fulfilling the three basic needs. It needs an intermediary, an agent or advisor who would sit with the proposer, discuss his need, his capacity to pay a certain amount as a subject. It goes without saying that an agent should be knowledgeable, sincere and service oriented.

7. Kumar Aggarwal (2009) in a study on The role of distribution channels in life insurance business has found that India is moving fast to emerge as one of the strongest economies in the world by 2020. One of the fastest growing industries in the service sector is, insurance. With the entry of private players and foreign collaborators, the life insurance business in India has grown tremendously. The major contributing factor for this growth are the introduction of the new products and channels of distribution as well as the penetration of private insurance companies in uncovered markets. This study aims at exploring the role of different distribution channels in the growth of the life insurance industry.

8. Sathya narayanan (2010), in a study on Banc assurance has found that Banc assurance revolutionized the industry when they are successfully segmented the market resulting in tailor-made insurance plans for each customer segment. This article focuses on the issues related to banc assurance and how IRDA is attempting to address the same.

CONCEPTULIZATION

INTRODUCTION OF DISTRIBUTION CHANNELS

Distribution channels

An important market factor is "buyer behavior"; how do buyers want to purchase the product? Do they prefer to buy from retailers, locally, via mail order or perhaps over the Internet? Another important factor is buyer needs for product information, installation and servicing. Which channels are best served to provide the customer with the information they need before buying? Does the product need specific technical assistance either to install or service a product? Intermediaries are often best placed to provide servicing rather than the original producer - for example in the case of motor cars. A path through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them that flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several interconnected intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer. Also called channel of distribution or marketing channel.

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Corporate agents
Direct marketing

Bank assurance

Brokers

Worksite marketing

Tele marketing

Net marketing

ATMs marketing

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1. CORPORATES AGENTS:-

Corporate agents are entities that are empowered to function as agents for various types of businesses or for a government agency. In most cases, the corporate agent is trust company that has received specifically assigned rights and privileges from the corporation or government entity. Among the several functions that may be assigned to a corporate agent is the ability to handle banking and financial matters on behalf of the client. The use of a corporate agent is often a matter of convenience. By making use of trust companies to handle a number of routine functions such as general banking tasks, the corporation or government entity does not have to make use of internal resources to efficiently manage those tasks. This means that available resources in terms of personnel and time can be effectively diverted to other matters, making it possible to complete other projects in a shorter period of time. Cost may also be a factor in determining to make use of a corporate agent. By outsourcing various functions such as banking services to the agent, it is possible for the corporate to keep staffing at both executive and administrative levels focused on other areas of operation. Depending on the nature of the business of the company, this outsourcing can lead to a significant amount of savings to the bottom line. 2. BANKASSURANCE:Now, more than ever, people take care of their lives by preparing for the future and for uncertainties. Most everyone wants to live their lives devoid of worries, dreaming of living a life that is carefree; most everyone want to sleep tight at night.. Bank assurance is the assurance provided by the banking system through the selling of insurance and other banking products. Banks of today do not only concentrate on financial support and services to business loans and development; they also offer financial independence by merging with independent insurance companies. Other
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banks establish their own insurance companies. It is better to purchase insurance products from your bank rather than from insurance agents because you need not transfer from one place to another in times of payment.

Benefits to bank 1. Secure an additional and more stream of income. Through diversification into Insurance and reduce their Reliance on interest spreads as A major source of income.

Benefits to insurer 1.Tap into the huge customer base Stable of Banks. 2. Reduce their reliance on Traditional agents by making use of the various channels owned By banks Share services with Banks. 3. Develop new financial products more efficiently in collaboration with their bank partners. 4. Establish market presence rapidly without the need to build up a network of agents. 5. Obtain additional capital of banks to improve their solvency and expand business.

2.

3. Leverage on their extensive Customer bases.

4. Sell a whole range of financial Services to clients and increase Customer retention. 5. Reduce risk-based capital requirement the same level of Revenuirement to.

3. Stock broker stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors. A broker may be employed by a brokerage firm.

Broker and Consultant Advantages

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Relationships Strengthening of existing client relationships and development of new clients Convenient Services Access to services, such as core benefit enrollment, benefit statements, and wellness programs for clients Complete Systemization True expertise and customization of a voluntary benefits program for clients with little additional work for the broker or consultant True Partnership A strong partnership to ensure that we are always working in the best interests of your firm and its clients Top Quality Service Professional enrollment services through a variety of methods with per diem enrollment specialists and best-in-class administrative services post-enrollment Superior Underwriting Offers Strong carrier relationships due to our CEOs continued involvement and support of these organizations, resulting in the best available underwriting offers

4. Direct marketing:Direct mail marketing is one type of marketing strategy which if lucratively conceded out acquires vast booty for the business. Direct mail marketing is said to be the most excellent approach to get in touch with new customers Direct marketing definition states that this type of advertising which is of interactive type, corresponding with customers. Direct marketing is a subsection of endorsements which spotlights on planning the proceedings, analyses and keep tracks of every customer reply and business done to maintain reciprocally advantageous customer associations. Direct marketing agency is office of agents who are ever ready to help in sales of products by endorsements. Any business will always be on lookout for more number of customers, which is directly proportional to increment in the business.

Advantages:

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- Direct marketing involves direct business. So it is cost beneficial for consumers, as there is no price hike due to wholesalers or retailers. - Marketing executives can state certainly of the exact response to their products. - The profit or loss can be more accurately judged.

Disadvantages: - Sometimes, direct mailing offends the customers and many do not endorse it as they say it inhibits their private lives. But most marketing managers are in support of this kind of business. The various forms in which direct business is made are: - Direct mailing: Here, paper mails are sent to the selected groups of people, who likely to give positive response e.g. the paper mails of latest food processor is sent to all homes where house wives are resident so that immediate response is seen. Also CDs can be used as demonstrating media.

5. Worksite Marketing As a first step, it is important to define what worksite marketing is and what it is not. Worksite marketing is not simply the sale of group voluntary benefits or ancillary benefits to a specific captive group. Worksite marketing reflects the fact that the products are being sold to individuals at their place of employment, rather than in the home. While we choose to use the term Worksite Marketing, the process is also commonly referred to as Workplace Marketing. Worksite marketing is a complex process. It begins with educating the market about the various product and benefits, and then listening to the market, brokers, employers and employees, to understand the unique needs of the organization. Carriers and brokers must work closely to develop and package benefits into a worksite marketing plan based on the requirements of the specific organization. Carriers and brokers also work closely to market the plan benefits, a process that begins with educating the individual employees on the products and services being offered, and then selling and administering those benefits.

6. Telemarketing
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Telemarketing is the most interactive marketing medium available. Telemarketing allows you to answer your prospects questions, address their concerns, and overcome their objections.

Telemarketing is the only marketing medium that allows you to adjust your strategy midstream and make any changes at any time necessary to increase results. With telemarketing, you can change both your offer and audience with just one phone call. Telemarketing scripts can be edited with a moments notice. And telemarketing calling hours can be adjusted.

Telemarketing provides you with immediate feedback & valuable information that can be quickly analyzed.
Telemarketing consistently outperforms all other forms of marketing and is the most powerful, cost-effective marketing vehicle available today. Telemarketing is a powerful, multi-billion dollar marketing vehicle. It should be part of your marketing plan.

Telemarketing is the only form of advertising that requires an immediate response.

Newspaper and magazine ads, radio promotions, billboards or direct mail demand little or no immediate attention. They can all be ignored. Not telemarketing. When the phone rings, the natural response is to answer it. Rarely do you just ignore it.

Telemarketing provides you with a captive audience the minute the phone is answered.
With telemarketing, you can instantly establish a conversation. It is much easier to get your message across when you engage in a dialogue and questions can be answered. Two-way communication using telemarketing is very powerful, and very productive.

Telemarketing provides you with endless opportunities to increase and better your business.
Telemarketing is the ultimate marketing tool. Some popular outbound telemarketing applications include appointment setting, lead generation, surveys, market research, list cleaning, database update, seminar registration, fund raising, phone sales, and client reactivation... just to name a few.

Inbound telemarketing allows you to respond and sell to your clients and prospects 24 hours a day, 7 days a week, 365 days a year.
Telemarketing also has powerful inbound applications. Inbound telemarketing is perfect for order taking, customer service, any type of answering service, after hours/overflow calls, taking credit card orders, voice mail service, dealer locator service, seminar registration, reservation desk, inquiry service, and direct immediate response to print ads and virtually any form of 16

advertisement.

7. NET MARKETING As one of Wales Premier Internet Companies, Net Marketing provide Web Hosting and Design and a range of Internet solutions to the business community. Our flexible and dynamic approach which ensures the services we provide are professional, reliable and different. Designed and constructed just for you, our engineers ensure you get exactly what you want, when you want it.

We are committed to effective, efficient solutions in order for you to achieve a successful internet presence. Our staff work closely with clients to design and develop fully interactive intelligent web sites that can be both informative and revenue enhancing.

8. ATMS MARKETING: Absa Group Limited is one of South Africa's largest financial services organizations, serving personal, commercial and corporate customers in South Africa. The Group interacts with its customers through a combination of physical and electronic channels, offering a comprehensive range of banking services, (from basic products and services for the low-income personal market to customized solutions for the commercial and corporate markets), bancassurance and wealth management products and services.

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INTRODUCTION TO COMPANY
THE HDFC GROUP HDFC commenced operations as a mortgage bank; it raised large wholesale resources (domestic and international) and lent primarily to individual households. In mid 1991, HDFC entered the retail deposit market by offering savings and investment opportunities to households.

y y

Incorporated in 1977 as a public limited company with a share capital of Rs.10 crores To specialize in provision of housing finance to individuals, co-operative societies & the corporate sector

y y y

First private sector retail housing finance company HDFC is listed on both BSE and NSE The corporation has had a series of share issues raising its capital to Rs120crores. The net worth of the corporation is Rs.28, 000crores.

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ACHIEVEMENTS
Indias best managed company by Asia money magazine-1995 and 1996 Most competitive Indian company by Euromoney-1997 One of the 5 best Indian Boards by Business Today-1997 Rated as one of the best companies in India for strategy & management and investor relations by Asiamoney-1998 Shield for the best presented accounts for banks and financial institutions over 11 times (8 years in a row) 1999 IMC Rama Krishna Bajaj National Quality Award in the service category Asia money declared HDFC as the second best managed company in India-2001

Euro money identified HDFC as one of Asias top 10 best managed companies in the finance sector-2001 Rated as the Best Non-Banking Financial company in Asia by Institutional Investor Research Group-2002

Indian No.1 private life insurance-Most Respected company award-Business World2004

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SUBSIDIARY COMPANIES

HDFC Standard Life Insurance:HDFC Standard Life Insurance Company is a joint venture between Indias largest housing finance provider, HDFC, and the Europes largest mutual life assurance Company, the Standard Life Assurance Company (U.K).

HDFC Developers Limited HDFC promoted a wholly owned subsidiary company; HDFC Developers Limited, to undertake housing projects on a selected basis in various regions of the country. HDFC Developers Limited has also undertaken a number of projects for the office premises of the corporation. It is also being engages as a consultant to a number of residential and commercial projects.

HDFC Investments Limited HDFC promoted a wholly owned subsidiary company; HDFC Investments Limited (HIL), to undertake investments in stocks, shares, debentures, and other securities. The Reserve Bank of India under the category of investment Company has registered HIL as a Non- Banking Insurance Company (NBFC). HIL was set-up with an intention of being the investment arm of HDFC.

y y y y y

HDFC Realty Limited HDFC Holding Limited HDFC Asset Management Company Limited HDFC Trustee Company Limited HDFC Finance Limited.

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The STANDARD LIFE Insurance ASSURANCE COMPANY

Founded in 1825, Standard life has been at the forefront of the UK insurance industry for 176 years by combining sound financial judgment with integrity and reliability. The largest Mutual life Company in Europe since 1925, it has operations in the United Kingdom, Ireland, Spain, Germany, Austria and Canada with representative offices in Hong Kong and China.

One of its most recent successes was the launch of Standard Life Bank on 1st January 1998. The introduction of its innovative mortgage product in January 1999 has an immediate impact on the UK market, accounting for 1% of all new lending within the first operational year. The current loans understanding amount to Rs.43, 000crore. Standard Life has total assets of Rs.5, 95,000crore and new premium income last year of Rs.58, 000crore. Its UK investment portfolio accounts for approx. 2% of all shares listed in the London Stock Exchange. It is one of the few insurance companies in the world to receive AAA rating from two of the leading international credit rating agencies. Moodys and Standard & Poors. The later described Standard Lifes ability to meet its claims obligations as overwhelming under a variety of economic conditions. Standard life is rated as one of the strongest companies of the world, in financial terms. The companys reputation in the UK market remains unrivalled. Besides, being voted company of the Year for overall service, for the third consecutive year, Standard Life was recently voted Company of the Decade by independent brokers.

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Experience In The Indian Market

y y y First market entry 1847 Innovative products & processes Last claim settled in 1997

Unrivaled Reputation for Quality

Year Award

y y y y y y y y y

2002 2001 2000 1999 1996-99 1995 1992-94 1991 1990

Company of the Year Best Personal Pension Provider Company of the Year Company of the Decade Company of the Year 4 Star service award Overall best company 3 Star service award Best mortgage services

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Head Office-Edinburgh, Scotland (UK)

Presence United Kingdom: Canada Ireland Germany Austria Spain Hong Kong China

31 branches 11 branches 7 branches 1 branches 1 sale office 31 branches 1 representative office 2 representative office

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Incorporation of HDFC Standard life Insurance Company Limited

The company was incorporated on 14th August 2000 under the name of the HDFC Standard Life Insurance Company Limited. Our ambition from as far back as October 1995 was to be the first private company to re-enter the Life Insurance market in India. On the 23rd of October 2000, HDFC Standard Life was the only Life Company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Lifes existing investment in the HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other Insurance companys in India are measured.

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Our mission
We aim to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like: y y y y y y Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share

Objective of the company

The most successful and admired Life Insurance Company, which means that we are the most trusted company, the easiest to deal with, offers the best value for money, and set the standards in the industry. In short, The most obvious choice for all.

7th February 2006 HDFC Standard Life records impressive growth

Premium income grows by 150%

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HDFC Standard Life has recorded a strong growth of 150% for the period AprilDecember 2005, in comparison to the same period of the last year. HDFC Standard Lifes growth in new business premium is a result of strong growth in policies sold as well as, an increase in the average premium. Commenting on the consistently strong performance of the company, Mr. Deepak Satwalekar, MD and CEO, HDFC Standard Life said, We believe that our success is a result of our efforts in giving customers, the best solutions to take care of their insurance needs.

Table showing Financial Results: Apr-Dec 2004-05 (Rs. Cr.) 330.45 239.07 91.38 Apr-Dec 2005-06 (Rs. Cr.) 829.17 598.70 230.47

Parameters

% Growth

Total received premium 1. New Business 2. Renewal

150.92 150.43 152.21

The Strength of the partners

    Employee: In 2003 No. Of Employee - 1320 In 2006 No. Of Employee - 6000 In 2009 No. Of Employee - 8000

 Financial consultant:   In 2006 No. Of FC - 31,000 In 2009 No. Of FC - 33,288

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 Branches:  HDFC Standard Lifes geographical Presence has also increased and it has now 169 offices across the country (having added 66 new offices from Apr-Dec 2005)

 Others:   12 corporate agents 87 Brokers

 Financial Strength:  Asset base more than Rs. 20,000 corers Rated for 6 consecutive years (only company)

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PRODUCTS
HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family. Protection Plans You can protect your family against the lose of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our protection range includes our Term Assurance Plan and Loan Cover Term Assurance Plan. Investment Plans Our Single Premium Whole Of Life Plan is well suited to meet your long-term investment needs. HDFC provide you with attractive long-term returns through regular bonuses. Pension Plans Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus.

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Saving Plans Our Saving Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your childrens immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Money Back Plan, Childrens Plan, Unit Linked Young star, Unit Linked Young star Plus.

FUTURE PLANS

 TOTAL BUSINESS VOLUME:    In 2007, Retail Channel-57% Alternate-43% By 2010,Retail Channel-59% Alternate-32% By 2010, Direct Sale Association (DSA)-10%

 MARKET SHARE:   In July, 2007- 3.8% By 20095.3%

 COST RATIO:   In July, 2007By 2009125% 100%

 PREMIUM:  Premium target achieve up to 2008 is Rs.11935crore

 BRANCH:  100 further locations (outreach program)

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The Retails Sales Hierarchy of HDFC Standard Life Insurance

F.C. SDM BDM ASM SM SSM ACH CH RM ZM Business/Agency head AS

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INDUSTRY PROFILE

OVERVIEW OF THE INSURANCE INDUSTRY

FIGURES IN THE INDUSTRY:

The Government of India issued an Ordinance on 19th January, 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. In 1972 with the General Insurance Business (Nationalization) Act was passed by the Indian Parliament, and consequently, General Insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973. The insurance Regulatory and Development bill is now an Act, with this India is now the cynosure of all the global insurance players. Numerous players, both Indian and foreign, have announced their intention to start their insurance shops in India. IRDA, under the chairmanship of Mr. Rangachary, opened the window for applying licenses in India on the 16th of August. Dabur- All state the Prudential ICICI was the first of the block to apply on the very first day. But before any one starts to talk about the insurance sector in India, it is important to know the figures that entice each hand everybody in the sector.

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Insurance is a subject listed in the concurrent list (where both centre and states can legislate) in India. The insurance sector has gone through a number of phases and changes. Since 1999, when the government opened up the insurance sector by allowing private companies to solicit insurance and also allowing foreign direct investment of up to 26%, the insurance sector has been a booming market. However, the largest life-insurance company in India is still owned by the government.

FIGURES IN THE SECTOR:

India has an enormous middle class that can afford to buy life, health, and disability and pension plan products. The low level of penetration of life insurance in India compared to other developed nations can be judged by a comparison of per capita life premium.

Table No. 1 Source: Various Newspapers

Country Japan UK USA India

Life premium per Capita US $ in 1994 3,817 1,280 964 4

Clearly, there is considerable scope to raise per capita life premium if the market is effectively tapped. India has traditionally been a high savings oriented country- often described as being on par with the thrifty Japan. Insurance sector in the US of A is as big in size as the banking industry there. This gives us an ideal of how important the sector is. Insurance sector canalizes the savings of the people to long-term investments. This has made the sector the hottest one in India after IT. With social security and security to the public at

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large being the agenda for opening the sector, the role of the regulator becomes all the more serious and one that would be carefully watched at every step.

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INSURANCE REGULATORY DEVELOPMENT AUTHORITY (IRDA)

The opening up of the sector has been long standing and with the passing of the Insurance Regulatory and Development Authority IRDA bill a significant step has been taken. IRDA is formed as an authority to protest the interests of holders of insurance policies, to regulate promote, and ensure orderly growth of insurance industry and for matters connected therewith or incidental thereto. With the Insurance Regulatory and Development Act, the focus shifted to the following:
y The insurance Regulatory and Development Authority (IRDA) should give

priority to health insurance while issuing certificates of registration:

y Policyholders funds will be invested in the social sector and infrastructure.

The percentage may be specified by the IRDA and such regulations will apply to all insurers in the country.
y Insurers will be expected to undertake a certain percentage of business in the

rural or social sector and provide policies to persons residing in rural areas, workers in the unorganized and informal economically basic:
y In case of the insurers fail to meet the social sector obligation a fine of Rs 2.5

million would be imposed the first time. Subsequent failures would result in cancellation of licenses.

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PLAYERS WHICH ARE GOVERNED BY IRDA

The table below is the list of the likely players in the Indian insurance sector, Apart from Reliance, who has applied for both Life and Non life insurance license; all have gone in with a foreign partner. The idea is that the foreign partner will bring in expertise of global nature with products that are India specific. And the Indian partner will bring in the distribution network and more significantly the required 74% of the equity. Life insurance Reliance life insurance Kotak Mahindra Max India New York Life Prudential ICICI HDFC Standard Life Aditya Birla Sun Non-life insurance Reliance General Insurance ICICI Lombard Insurance Wadia Commercial Union Cholamandalam Axa M A Chidambaram Matlife Life Sanmar Group GIO

Insurance C K Birla Zurich Insurance Hindustan Union Centurion Bank Canada Life Times Tata AIG

Com. 20th Century Finance Guardian Group Punjab National Bank, Vijaya Bank, Allahabad Bank and Bank of India Yasuda Fire and Marine.

Vysya Bank ING

IFFCO Tokyo Fire & Marine

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Apollo Hospitals Aetna

Sundaram Finance Royal & Sun Alliance.

Bajaj-Allianz Tata-AIG Dabur-Aviva Meter life

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FOCUS ON THE PROBLEM

There is a slight difference between focus and the objective. As objective can be many in numbers but the focus concentrate on one thing or in simple way you can say that focus means primary thing you want to find out and objectives are secondary. Research studies have many objectives but all these objectives revolve around one major objective which is known as focus of the study. In this particular report, my focus is on to find out the best distribution channel for HDFC SLIC, because channel chosen effect all the marketing decisions.

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OBJECTIVE OF STUDY
A. B. C. To know about the distribution channel of HDFC standard life insurance. To know about the problems face by HDFC standard life insurance in these channels. To know the best channel for HDFC SLIC.

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Research Methodology

Research Methodology is a way to systematically solve the problem. One can define research as a scientific and systematic search for pertinent information on a specific topic. In it the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind him are studied.

(A) Type of Universe:-

Sample design is to clearly define the set of objects,

technically called the universe. The universe can be finite or infinite. In finite universe the no. Of items is certain, but in case of infinite universe the no. Of item is infinite i.e. we cannot have any idea about the total no. Of items.

(B) Research Design:-

Decision regarding what, where, when, how much, by what

means concerning an inquiry or a research study constitute a research design. A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Infact, research design is the conceptual structure within which the research is conducted.

The research design used for the present study is exploratory in nature. The major purpose of

exploratory study is to set up the priorities for research. It determines the best alternative. Exploratory research is often used to generate new idea.

(C) Sample selection, size and Technique:Sample selection is Bhiwani and Charkhi Dadri Sample size :- Number of person were covered 20. The Sample Technique used for the study is Convenience sampling.

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(D) Source of Data:There are two types of data. 1. Primary data: which are collected afresh and for the first time. 2. Secondary data: which someone else has already collected. The data collected for the study is primary and secondary in nature.

(E) Data collection Technique:-

The study will largely use primary data, gathered

through Questionnaire prepared for the survey population and some of the data I get from my trainer, which is considered as a secondary data.

(F) Analytical Tools:-

The data thus collected was tabulated, interpreted & analyzed

with a view to make the study meaningful.

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DATA ANLYSIS AND INTERPRETATIONS

By this study we see that HDFC SLIC deals in four distribution channels in which more business is done in retail but it earn more profits from banks and it faces more problem in direct sale trading.

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ORGANISATION OF THE STUDY

Chapter 1 includes- Significance of the study. Chapter 2 includes- Review of existing literature. Chapter 3 includes- Conceptualization. Chapter 4 includes- Focus on the problem. Chapter 5 includes- Objective of the study. Chapter 6 includes- Research methodology. Chapter 7 includes- Data analyses and interpretations. Chapter 8 includes- Suggestions. Chapter 9 includes- Limitations of the study. Chapter 10 includes- Organization of the study. Chapter 11 includes- Conclusion. Chapter 12 includes- Annexure. Chapter 13 includes- Reference.

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DATA ANALYSIS AND INTERPRETATION Ques-1. How many Channel your company have Launched? AnswerOne Two Three Four

Ques-2. May I know the channel in which your company doing business? Answer-

HDFC
60% 50% 50% 40% 30% 20% 20% 10% 10% 0% Retail Alternate Branch Direct 20% Business

Interpretations: - This table show that in distribution channel retail is more preferred, then branch and direct and only 10% is alternate channel is used.

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Ques-3. Which is your traditional channel? AnswerRetail/Agency Alternate Branch Direct Ques-4. Measurably which channel generates more business? AnswerBank 70% approx. Ques-5. In which channel you are facing more problem? AnswerDirect Ques-6. Which is your highly distributed channel? AnswerRetail Ques-7. In which channel you consume less time? AnswerBanks

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SUGGESTIONS

1. Retail distribution channel is best channel according to this study. 2. In direct sale trading company face more problems because here it have not ready customers. 3. Acc. to this study Banks are also best channels because here it can get ready customers.

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LIMITATIONS OF THE STUDY

y y y y

Questionnaire filling is a time consuming process. We have small survey area, so we cant analyze the universe on this base. Not fair response. Customers have less knowledge of Insurance industry, so we face the problem of describe the whole things.

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CONCLUSION

So on the basis of this study we can say that HDFC SLIC deals in four distribution channels but by banks it generates more profits and it want to set up 100 further locations in future. It has 8 subsidiary companies and HDFC Standard Lifes geographical Presence has also increased. And it achieves Indian No.1 private life insurance-Most Respected company award-Business World-2004. In direct sale trading it faces more problems.

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ANNEXURE
Ques-1. How many Channel your company have Launched? Answery One y Two y Three y Four Ques-2. May I know the channel in which your company doing business? Answer-

Ques-3. Which is your traditional channel? Answery Retail/Agency y Alternate y Branch y Direct Ques-4. Measurably which channel generates more business? Answer-

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Ques-5. In which channel you are facing more problem? Answer-

Ques-6. Which is your highly distributed channel? AnswerQues-7. In which channel you consume less time? Answer-

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REFRENCES
1. Levy (2007), the media touch a short assessment of media coverage of the insurance industry, Insurance Chronicle, February, P.N. 65-67. 2. Venugopal (2010), bancassurance in India- A perspective, Insurance chronicle, January, P.N. 36-40. 3. Tuohy (2008), A competitive Insurance: market sort of, Insurance chronicle, February, P.N. 52-54. 4. Varadharajan and Susarla (2009), Championing and institutionalizing: insurers TCF charter, Insurance Chronicle, August, P.N. 53-57. 5. Asthana (2009), the next frontier- Teleassurance, Insurance chronicle, September, P.N. 39-42. 6. Venugopal (2009), Life insurance agency- is it a numbers game? , Insurance Chronicle, September, P.N. 55-58. 7. Kumar Aggarwal and kr. Upadhyay (2009), the role if distribution channels in life insurance business-An Indian perspective, Insurance Chronicle, September, P.N. 5966. 8. Sathya narayanan (2010), Bancassurance-time to change tack, Insurance Chronicle, February, P.N. 23-26.

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