SBI LIFE INSURANCE

Bachelor of Commerce (Banking & Insurance) Semester VI (2012-13)

Submitted by HARISH.P.AGARWAL

SMT.M.M.K. COLLEGE OF COMMERCE AND ECONOMICS BANDRA (W) MUMBAI-50

SBI LIFE INSURANCE

Bachelor of Commerce (Banking & Insurance) Semester VI (2012-13)

Submitted In Partial Fulfilment of the requirements For the Award of Degree of Bachelor of Commerce Banking & Insurance

By Harish Agarwal SMT.M.M.K. COLLEGE OF COMMERCE AND ECONOMICS BANDRA (W) MUMBAI-50

SMT.M.M.K. COLLEGE OF COMMERCE AND ECONOMICS BANDRA (W) MUMBAI-50 CERTIFICATE (2012 2013) This is to certify that Harish Agarwal of B.com (Banking & Insurance) Semester VI (2012-13) has successfully completed the project on SBI LIFE INSURANCE under the guidance of DR. A.C. VANJANI. Date: Place: - MUMBAI

(Prof. Mr. Vishal R Tomar) Course Co-ordinator

(Dr. Ashok Vanjani) Principal

(Prof. Mr. Ashok Vanjani) Project Guide External Examiner

DECLARATION

Date: -

I, MR. Harish Agarwal the student of B.Com (Banking & Insurance) Semester VI (2012-13) hereby declare that I have completed the project on SBI LIFE INSURANCE successfully.

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

Thank you,

Yours faithfully,

Harish Agarwal

ACKNOWLEDGEMENT

At the beginning, I would like to thank Almighty God for his shower of blessing. The desire of completing this dissertation was given a way by my guide Dr. ASHOK VANJANI. I am very much thankful to him for the guidance, support and for sparing his precious time from a busy and hectic schedule.

I am thankful to Dr. ASHOK VANJANI, Principal of Smt. M.M.K. College. My sincere thanks to Mrs. Vishal Tomar who always motivated and provided a helping hand for conceiving higher education.

I would fail in my duty if I dont thank my parents who are pillars of my life. Finally, I would express my gratitude to all those persons who directly and indirectly helped me in completing dissertation.

Harish agarwal

DECLARATION

Date:-

I the undersigned Dr. ASHOK VANJANI, have guided Mr. Harish Agarwal for her project, she has completed the project SBI LIFE INSURANCE successfully.

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

Thank you,

Yours faithfully,

Harish agarwal

INDEX SEQUENCE 1. Introduction History of the Insurance 2. Company Profile Organizational structure Financial Performance Recruitment Process Welfare activity Product and market competitors Market Share Various productlines Financial analysis SWOT analysis 3. Introduction of the topic 4. Objectives of the Study 5. Results and Discussion 6. Analysis and findings 7. Limitations 8. Recommendations & Suggestions 9. CONCLUSION PG. No

History of Insurance: At a glance

Life Insurance in its modern form came to India from England in the year 1818. Oriental ife Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly.

Some of the important milestones in the life insurance

Businesses in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life

insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

Indian insurance company

Indian Insurance comprised mainly two Players. Life Insurer: the important are. Life Insurance Corporation of India (LIC) HDFC Standard Life Insurance Company Ltd. Max New York Life Insurance Co. Ltd. ICICI Prudential Life Insurance Company Ltd. Kodak Mahindra Old Mutual Life Insurance Limited. Birla Sun Life Insurance Company Ltd.

General Insurer
General Insurance Corporation of India (GIC) GIC has four subsidiary companies namely: The Oriental Insurance Company Limited. The New India Assurance Company Limited. National Insurance Company Limited. United India Insurance Company Limited. Royal Sundaram Alliance Insurance Company Limited. Reliance General Insurance Company Limited. TATA AIG General Insurance Company Ltd. Bajaj Allianz General Insurance Company Limited ICICI Lombard General Insurance Company Limited. Cholamandalam General Insurance Company Ltd. HDFC-Chubb General Insurance Co. Ltd.

Introduction SBI LIFE a joint venture between

74%

26%

SBI Life Insurance is a joint venture between the State Bank of India and Cardiff SA of France. SBI Life Insurance is registered with an authorized capital of Rs 1000 core and a paid up capital of Rs 350 carore. SBI owns 74% of the total capital and Cardiff the remaining 26% State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has the unrivalled strength of over 14,000 branches across the country, the largest in the world. Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zones leading Bank. BNP is one of the oldest foreign banks with a presence in India dating back to 1860. It has 9 branches in the metros and other major towns in the country. Cardif is a vibrant insurance company specializing in personal lines such as long-term savings, rotection products and creditor insurance. Cardif has also been a pioneer in the art of selling insurance products through commercial banks in France and 29 more countries.SBI Life Insurances mission is to emerge as the leading company offering a comprehensive range of Life Insurance and pension products at competitive prices, ensuring high standards of customer ervice and world class operating efficiency. The company plans to make the insurance buying process quick, simple and based on well-informed judgment. In 2004, SBI Life Insurance became the first company amongst private insurance players to cover 30 lacks lives. The company expects to carve a niche in the Indian insurance market through extensive product innovation and aims to provide the highest standards of customer service through a technological interface. To facilitate this, call centers have been already installed and help lines will be installed and customers

will have access to their accounts through the Internet or through SBI branches. The company proposes to make available ready liquidity to its Life Insurance policies by way of loans at SBI counters. This will make Life Insurance a liquid asset in the financial portfolio of households. SBI Life Insurance is uniquely placed as a pioneer to usher bank assurance into India. The company hopes to extensively utilize the SBI Group as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans, personal loans and credit cards. SBIs access to over 100 million accounts provides a vibrant base to build insurance selling across every region and economic strata in the country.

Group Corporate

SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans. SBIs access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country ensuring true Financial inclusion .

MANAGEMENT STYLE

FINANCE & ACCOUNTS

INVESTMENT ACTUAR Y IT

MARKETING

OPERATIONS

NEW BUSINESS

UDNERWRITING

CLAIMS

POLICY SERVING ISSUE & PROBLEM SOLVING

FinancialPerformance
SBI LIFE POSTS NET PROFIT OF Rs. 301 Crores Sustains its all-round performance and expansion, YTD DEC FY 10 - 11: Increase in net profit by 52% Branch network increases to 628 branches Employee strength surges to 7334 employees Moves to a new, larger and integrated corporate office building Mumbai, January 18, 2011: Sustaining its holistic business performance, SBI Life Insurance, the leading new generation life insurer, has posted impressive results during the first nine months of the FY 10 - 11. Growing by 52%, the company has set a new milestone, by crossing the landmark figure of Rs 300 Crores in net profit during the period. Reflecting its superior efficiency in it business operations, the company maintains the lowest expense to GWP (Gross Written Premium) ratio in industry of 7.43%. SBI Lifes Gross Written Premium collection grew by 28% to Rs. 7,770 Crores The Asset Under Management jumped by 50 % to Rs 36, 861 Crores from Rs. 24, 613

Crores as on 31st December, 2009. The company has uniquely expanded by adding 134 new branches and increasing number of employees by 1349, during the period, despite tough external conditions. The corporate office has moved to a newly- acquired building in fast evolving commercial hub of Mumbai. The new corporate building was inaugurated by Shri R Sridharan, MD and GE (A & S), State Bank of India. Commenting on the performance, Mr. M N Rao, MD & CEO, SBI Life Insurance said Through continued emphasis on strengthening business fundamentals, namely customer centricity and

operational excellence, we are confident that we will sustain our profitable growth performance. We remain committed to catering to the life insurance needs of Indian population encompassing all socio-economic and geographical segments.

Highlights of YTD Dec FY 10 - 11 Gross Written Premium Rs 7,770 Cr 28% Premium New Business Rs 4,699 Cr 6% Asset Under Management ( Y- Rs 36, 861 Cr 50% o-Y) All key distribution channels namely, Bancassurance, Agency and Corporate Solutions have demonstrated profitable business growth during the period. The Agency Channel provided a significant thrust to the overall business by contributing 44% of total premium as a result of superior productivity levels of Insurance Advisors. Bancassurance witnessed a remarkable growth of 43% and contributed to over 36% cent of the total premium and Group Corporate contributed to 18% of total premium. In the recent months, the company introduced a series of Simple and Smart products that encompass new IRDA guidelines compliant ULIPs, Pure Protection and Traditional products. The rapidly launched six new ULIPs cater to the investment needs of the varied customer segments. These include HNI-targeted Smart Elite, NAV-Guaranteed Smart Performer, No Medicals ULIP Saral Maha Anand, Flexible ULIP Unit Plus Super, Child Plan Smart Scholar and ULIP with Automatic Asset Allocation Smart Horizon. Innovatively-featured, non-ULIPs rolled out are NoMedicals, pure protection plan Saral Shield, HNI targeted, pure protection plan Smart Shield and No Medicals, traditional savings plan Saral. One of the highlights towards achieving customer service excellence has been the national launch of customer care initiative SMS SOLVE. A first-of- its kind in the life insurance industry, the service allows customers to have their grievances resolved

in a simpler, paperless and faster manner. An innovative SMS-based service, SMS SOLVE provides customers the ease of accessing SBI Life 24 X 7. Customers are able to register their grievances about SBI Lifes service by merely sending SMS SOLVE to 56161. Testifying its multi-dimensional excellence, the company has bagged numerous recognitions and awards recently. Being adjudged the best, SBI Lifes annual report has won Gold Shield from Institute of Charted Accountants of India (ICAI) for excellence in Financial Reporting. Also, International Certification Services (ICS) has awarded SBI Life "ICS Quality Champion Award - 2010" for continual improvement in the Quality Process. NDTV Profit Business Leadership award and Best Life Insurer 2010, Runner Up, award by Outlook Money are the other key media recognitions that have been conferred to SBI Life. Retaining the ISO 9001:2000 Certification for superior claim process, globally topping the prestigious international MDRT Table and reaffirmation of CRISIL AAA/Stable rating are other key distinctions achieved by the company during initial current financial year. As per the latest IRDA report, as of November 2010, the company has a market share of 18.27% among private life insurers and a total market share of 5.10 %.

ManagementPhilosophy

Vision : "To be the most trusted and preferred life insurance provider "

Mission "To emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and become a model life insurance company in India in the post liberalization period".

Values Trustworthiness Ambition Innovation Dynamism Excellence

Distribution channel of SBI InsuranceAgents:

Insurance agents are those individual persons who work for one particular insurance company. An insurance agent cannot work for more than one particular at one point of time.

CorporateGroup:
Targeting Corporate for Gratuity and Group Pension products.

AgencyChannel:
Agency channel have the most productive and active force of more than 25,000 Advisor. Our approach is to provide door-to-door need-based insurance solution to customers after taking into account protection and wealth creation needs. Agency channel has grown more than 300% over the last year and contributed more than 45% to the companys new business premium collection.

PROCESS OF INSURANCE OPERATION

A Without prejudice to the other express terms and conditions of this Agreement and all and any implied rights of SBI Life Life Insurance after the termination of this Agreement, the Advisor shall not: Use for his own benefit or the benefit of any other person; or Disclose to any person; Through any failure to exercise all due care and diligence, cause or permit any unauthorized disclosure of any trade secrets or confidential information of or relating to SBI Life Life Insurance which he may have received, used or obtained during the term of this Agreement. Any such trade secrets and confidential information shall at all times remain the property of SBI Life Life Insurance. a. For the purposes of this clause, trade secrets and/or confidential information shall include, but not be limited to, lists of and information concerning customers, Policyholders, employees, Advisors and agency managers of SBI Life life Insurance, information relating to the working of any product, process, invention, improvement or development carried on or used by SBI Life Life Insurance, information relating to research projects, know-how, prices, rates, discounts, mark-ups, business strategies, marketing, tenders and any price sensitive information concerning SBI Life Life Insurance. For the avoidance of doubt, the obligation of confidentiality in this clause extends to trade secrets and confidential information howsoever stored, whether in hard copy documents, records or computer programs. b. Access to SBI Life Life Insurance computer resources, electronic data and the like may be given to and shall be utilized by the Advisor only for the purpose of carrying out the duties embodied in the Agreement. c. The forgoing provisions on confidentiality and non-disclosure also apply to employees of both the parties to this Agreement and the sad parties assume liability for the breach or violation in any manner by their employees.

SALES & MARKETING Key Milestones Financial Year 11-12:

Awarded the most coveted NDTV Profit Business Leadership Award, twice in a row, 2010 & 2011.Awarded Most Trusted Life Insurance Brand - II By The Economic Times, Brand Equity and Nielsen, Most Trusted Brands 2011. Globally topped the prestigious Million Dollar Round Table (MDRT) for having the aximum number of MDRT members, for three years consecutively. CRISIL reaffirmed its AAA / Stable rating to SBI Life, financial strength to meet policyholder obligations. indicating highest

ICRA reaffirmed its iAAA rating indicating highest claims paying ability and a fundamentally strong position. Won one of the most prestigious quality distinction, IMC Ramkrishna Bajaj National Quality Awards 2011- "Certificate of Merit" Awarded Silver Shield by ICAI for Excellence in Financial Reporting for FY 2010 11 under the Insurance category Won Best Presented Accounts Awardby The South Asian Federation of Accountants (SAFA), in the Insurance Category for the Annual Report FY 2009-10.

Financial Year 10-11:

SBI Life won the coveted Bloomberg UTV Financial Leadership Award 2011 "Life Insurer of the year". Won the most coveted NDTV Profit Business Leadership Award 2010. Globally topped the prestigious Million Dollar Round Table (MDRT) 2010 for having the maximum number of MDRT members. Awarded the Gold Shield by

Institute of Chartered Accountants of India (ICAI) for Excellence in Financial Reporting. Won the ICS Quality Champion Award 2010 for Continual Quality Improvement. Adjudged Best Life Insurer 2010 - Runner Up by Outlook Money Launched an innovative customer care initiative - SMS SOLVE for prompt Grievance Redressal. Appraised at Maturity level 3 of Capability Maturity Model Integration (CMMI) Version 1.2 for its ISG Division. ICRA reaffirmed iAAA rating to SBI Life, indicating highest claims paying ability and meeting policyholders obligations. CRISIL, countrys leading rating agency, reaffirmed its highest financial rating AAA/Stable to SBI Life.

Financial Year 08-09

Ranked among global top three in terms of number of Million Dollar Round Table (MDRT) members.

Bagged the coveted personal finance award-Outlook Money NDTV Profit "Best Life Insurer 2008".

CRISIL, countrys leading rating agency, reaffirmed its highest financial rating AAA/Stable to SBI Life. In 2007, SBI Life became the first life insurer in India to receive this rating from CRISIL. ICRA assigned iAAA rating indicating highest claims paying ability to SBI Life Insurance.

SWOT ANALYSIS

SBI LIFE INSURANCE CO. LTD AT A GLANCE

Joint venture between State bank of India and BNP Paribas Assurance. SBI is the largest bank in India and BNP Paribas Assurance is Frances largest Insurance company. Investments: SBI-76% and BNP Paribas 24%. The Company started its operations in 29 January

STATE BANK OF INDIA

Largest and oldest banking franchise of India dating back to 1806 AD. 6 Associate Banks, 16000 Branches all over the country.

BNP PARIBAS ASSURANCE :

4thLargest Insurance Company in France. The Insurance arm of BNP Paribas Bank, the largest bank of France.Operations in 41 countries around the world. One of the oldest foreign banks with a presence in India dating back to1860 AD. A worldwide leader in Creditor insurance products offering protection toover 50 million clients.

STRENGTHS
No.1 Private Life Insurance company in India (as on 2009-10). Leverages the State Bank Group Relationship as a platform for crossselling insurance products. As it sells its products through banc-assurance division of SBI,therefore less need on spending money for establishing separate branch offices. Market share of 18.34% among private life insurers and a total market share of 6.44%. SBIs access to over 100 million accounts across the country provides for a vibrant base for insurance penetration in the country. Growth at a rate of 40%. IRDA has never banned any of SBI Lifes product. Only private life insurance company to have posted profits (Rs 276 crores for they earended March 31st, 2010) and declared bonus. Solvency ratio of 2.2 and share capital of Rs.1000 Crore, SBI Life is one of the most capita lefficient life insurance companies in the industry. Continues to maintain the lowestexpense to GWP (Gross Written Premium) ratio in industry of 6.5% Globally topping the prestigious international MDR Table (Million DollarRound Table 30 Lacs collec tions by an agent in a year). One of the market leaders in Unit Linked Plans by offering products asSmart ULIP, UNIT +, UNIT +2, UNIT +3 etc. Profitable business growth demonstrated by all key distribution channels. Certifications of ISO 9001:2000, ISO 2700:2005 (Information security) AAA rating by ICRA, CRISIL etc.

WEAKNESSES
Less sales force than others (LICs 3 field advisor: SBIs 1field advisor) Low productivity of banc-assurance people. People at top management/decision making level are from SBI. So,typical PSU attitude in many aspects. Hassle free online purchase of insurance policy is not available Is less aggressive in generating business compared to other private life insurance players. Over dependence on the banc-assurance channels. Less branch office compared to others.

OPPORTUNITIES
As only 12% of the 40 crores insurable population is insured, thus, a huge opportunity to reach out to more people. It has an edge over LIC as far as service is concerned. So, it can grab more market share from LIC by giving it a tough competition. Not so much requirement on establishment of Brand (already have a good brand image of SBI). A huge revolutionary change (PARIBARTAN) in SBI is going to happen, so there is an immense opportunity for SBI Life in future. Huge market potentiality in Rural markets which has been untapped till now. Higher market penetration by being more aggressive in bancassurance channel of distribution. Huge opportunity to grab customers by being more active through other distribution channels as mall-assurance, brokers etc.. Lower premium ULIP policy (<10000) can attract lower income segment market.

THREATS
Huge competition from other pre-existing 22 players in the Life Insurance sector in India. ICICI Prudential, the market giantal ready pipped SBI Life to

regaint opposition, garnering new business worth Rs.303 crores (source Economic Times,26th May10) New entrants in the pipe line of the life insurance business. New tie-ups of competitors with innovative distribution channels.The

New Insurance guidelines from September10 onwards is really a big challenge or SBI Lifes bus

MARKETINGSTATEGIES&ACTIVITY
Marketing strategy consists of the analysis, strategy development, and implementation activities in: Developing a vision about the market(s) of interest to the organization, selecting market target strategies, setting objectives, and developing, implementing, and managing the marketing program positioning strategies designed to meet the value requirements of the customers in each market target. Strategic marketing is a market-driven process of strategy development, taking into account a constantly changing business environment and the need to deliver superior customer value. The focus of strategic marketing is on organizational performance rather than a primary concern about increasing sales. Marketing strategy seeks to deliver superior customer value by combining the customer-influencing strategies of the business into a coordinated set of market-driven actions. Strategic marketing links the organization with the environment and views marketing as a responsibility of the entire business rather than a specialized function. Because of marketings boundary orientation between the organization and its customers, channel members, and competition, marketing processes are central to the business strategy planning process. Strategic marketing provides the expertise for environmental monitoring, for deciding what customer groups to serve, for guiding product specifications, and for choosing which competitors to position against. Successfully integrating cross-functional strategies is critical to providing superior customer value. Customer value requirements must be transformed into product design and production guidelines. Success in achieving high-quality goods and services require finding out which attributes of goods and service quality drive customer value.

Marketing Strategy Process

The marketing strategy analysis, planning, implementation and management process is described below. The strategic situation analysis considers market and competitor analysis, market segmentation, and continuous learning about markets. Designing marketing strategy examines customer targeting and positioning strategies, marketing relationship strategies and planning for new products. Marketing program development consists of product, distribution, price, and promotion strategies designed and implemented to meet the value requirements of targeted buyers. Strategy implementation and management consider organizational design and marketing strategy implementation and control.

Stage 1: Strategic Situation Analysis Marketing management uses the information provided by the situation analysis to guide the design of a new strategy or change an existing strategy. The situation analysis is conducted on a regular basis after the strategy is under way to evaluate strategy performance and identify needed strategy changes. Market Vision, Structure, and Analysis. Markets need to be defined so that buyers and competition can be analyzed. For a market to exist there must be (1) people with particular needs and wants and one or more products that can satisfy buyers needs, and (2) buyers willing and able to purchase a product that satisfies their needs and wants. A productmarket consists of a specific product (or line of related products) that can

satisfy a set of needs and wants for the people (or organizations) willing and able to purchase it. The term product is used to indicate either a physical good or an intangible service. Analyzing product-markets and forecasting how they will change in the future are vital to business and marketing planning. Decisions to enter new product-markets, how to serve existing product-markets, and when to exist in unattractive product-markets are critical strategic choices. The objective is to identify and describe the buyers, understand their preferences for products, estimate the size and rate of growth of the market, and find out what companies and products are competing in the market. Evaluation of competitors strategies, strengths, limitations and plans is also a key aspect of the situation analysis. It is important to identify both existing and potential competitors. Competitor analysis includes evaluating each key competitor. The analyses highlight the competitions important strengths and weaknesses. A key issue is trying to figure out what each competitor is likely to do in future.

Segmenting Markets.
Market segmentation looks at the nature and extent of diversity of buyers needs and wants in a market. It offers an opportunity for an organization to focus in business capabilities on the requirements of one or more groups of buyers. The objective of segmentation is to examine differences in needs and wants and to identify the segments (sub- groups) within the product-market of interest. Each segment contains buyers with similar needs and wants for the product category of interest to management. The segments are described using the various characteristics of people, the reasons that they buy or use certain products, and their preferences for certain brands of products. Likewise, segments of industrial product- markets may be formed according to the type of industry, the uses for the product, frequency of product purchase, and various other factors. Each segment may vary quite a bit from the average characteristics of the entire product-market. The similarities of buyers needs within a segment enable better targeting of the organizations capabilities to buyers with corresponding value requirements. And Marketing strategy is an ongoing process of making decisions, implementing them, and tracking their effectiveness over time. In terms of its time requirements, strategic evaluation is far more demanding than planning. Evaluation and control are concerned with tracking performance and, when necessary, altering plans to keep performance on track. Evaluation also includes looking for new opportunities and potential

threats in the future. It is the concerning link in the strategic marketing planning process. By serving as both the last stage and the first stage (evaluation before taking action) in the planning process, strategic evaluation assures that strategy is an ongoing activity Key insurance marketing strategies will always include an in-depth review of the a value of follow-up. All successful sales agents understand that consumers need to be contacted again and again in order to make a vital connection. Also, great follow-up protocol lets the potential customer know that good, solid customer service will be part of the over-all package. Follow-up says to a consumer that they are important, thought of, and that their business would be greatly appreciated. The consumer today not only wants a product at a great price, they also want a personal relationship, especially when it comes to financial system sales, such as various insurances. Letters and phone calls are gentle reminders that the salesperson intends to serve with his or her whole heart. And, once a sale is secured, a thank you call is strongly advised .consumers today value information. We live in the information age, and the savvy, faithful customer is one that has knowledge about the products and services offered. The next most valuable insurance marketing tips include the salesperson being the source of financial information for the client. Newsletters, email updates, and notifications will keep customers informed about issues surrounding insurance and other financial programs. There are creative ways to approach these insurance marketing strategies. Newsletters could include contests, special interest areas for kids, safety concerns, and economic updates. There could even be an area for customer spotlights, or encouraging testimonies of how the customers were helped through the office. Of course, all new products and services should be showcased in any informative hard copy or e-mail communication. Community marketing is another great way to get advertising and name recognition. Successful networkers join local community agencies, such as the local Chamber of Commerce, and sign up to help in activities. This is a great way to get name and photographs listed in newspaper articles and other media avenues. Also, charity work cannot only be greatly beneficial to the community and those served, but may also open doors to communicating with other volunteers, who could be potential clients. People enjoy using services extended by like-minded providers. Creating a sense of community is extremely important to insurance marketing strategies. There are other insurance marketing tips and resources available and insurance agents may find investigating several options to be beneficial. Many marketing support companies offer email or publication updates, sharing information and

techniques that are proven to bring in success. Agents may want to browse the Internet and find a few different insurance marketing tips programs to choose from. Not only will these resources help keep salespersons abreast of the latest strategies, but these support programs can also create a sense of community and an opportunity for agents to share their own struggles and challenges with others in the field.

Activity
In the insurance industry there is a new way of thinking which determined the passage from transactional marketing to a holistic marketing concept. In this paper five key elements of holistic marketing are presented: relationship

marketing, integrated marketing, internal marketing, social responsibility marketing and international marketing. In order to be successful insurance companies have to be able to convince their clients of the usefulness of their products and of the solidity of their businesses. In the current crisis situation, trust is a vital element for the insurance industry and even if on short term, liquidity is the target, as it ensures survival, on long and medium term the objective has to be the consolidation of the trust of consumers in insurance companies and the goal of the managers must be to win customer loyalty. Keywords: holistic marketing in insurance, relationship marketing,

integrated marketing, internal marketing, social responsibility marketing, international marketing, trust, customer loyalty, crisis Today the success of an insurance company is based on the quality of the long term relationship established between the company and its partners: customers, employees, broker dealers, banks, hedge funds etc. In the insurance industry this new way of thinking determined the passage from transactional marketing to a holistic marketing concept. The traditional transaction marketing focused on meeting customers needs so that the company could obtain an immediate advantage.

This approach wasnt always benefic for the insurance companies and for their clientsAn integrated marketing is a must in the insurance industry. The insurance company must have a coherent marketing mix in order to satisfy efficiently the needs of their clients. The marketing department of the insurance company must coordinate and integrate all the activities included in the marketing mix in order to maximize their joint effects: the insurance products and services offered must be conceived as a solution for the needs of the client and the setting of the premiums, distribution channels and company communications must be done in an integrate perspective. The role of internal marketing is to ensure that everyone in the insurance company embraces appropriate marketing principles. The internal marketing is the task of hiring, training and motivating the employees who want to serve customers well. Social responsibility marketing is a key element in the marketing activity of an insurance company due to the specific of the product. The role of the

insurance is to protect the insured against different risks, but also to create benefic effects for the entire society. The marketing activity in insurance has important causes and effects in the social, ethical and legal environment. The social responsibility marketing activities demonstrate a corporate culture that is designed to treat consumers fairly

Following are other objectives of recruitment process1. Support the organization ability to acquire, retain and develop the best talent and skills. 2. Increase the effectiveness of various recruiting techniques. 3. This study provides the student a practical insight of various activities functions of the company. 4. The will also be able to develop in depth knowledge of Human Research sector. The study is also required for the partial fulfillment of the requirement for the degree of M.B.A. as per the curriculum 5. The study would help SBI to know the Employee`s attitude towards the company. 6. To know the latest trend of the company. and

MEANING DEFINITION

&

The life insurance contract embodies an agreement in which broadly stated, the insurer undertakes to pay a stipulated sum upon the death of the insurer to a designated beneficiary. --- J.H.MAGEE Life insurance contract may be defined whereby the insurer, in consideration of premium paid either installment, undertakes to pay an annuity on the death of the insured of a certain number of years. --- R.S.SHARMA

Insurance advisor
A life adviser is a broker or intermediary authorized to sell or advise on the policies of life insurance and financial products, such as unit trusts. Typical examples of companies which employ financial advisers are banks, insurance and life companies, general brokers, estate agents and building societies The presence of a life insurance policy is essential in every individual's financial portfolio. But at the same time, it is also important that the right insurance products be bought and that too for the right reasons. With so many insurance products vying for a place in the individual's portfolio, conducting a proper evaluation can become quite a task. Taking the help of an insurance advisor/agent can help solve this problem. An insurance advisor/agent can play the part of the direct link between the insurance company and the insurance seeker i.e. you. He is the one who can help you select the right policy i.e. one which can help you fulfill your insurance needs. But for this, it is important that you connect with an expert and qualified insurance advisor/agent. The task is to choose the good quality advisor those who are having the following quality. Confidence Self motivation And Persuasion Urge to be financiallyindependent Relationship skills I have to recognize where a person (whom I meet to recruit him/her as an advisor) havingall these characteristics or not .If some person is closed enough to these characteristicsthen. I discussed the following support pattern.After getting all these information an advisor basically asked about the workingenvironment. Then I discussed the working environment and try to convince him/her that he/she has the potential to become an agent/advisor. 1. To be part of a world class sales team.

2. Work from his/her (advisor) own office or residence. 3. Work full time or part time. 4. Earn commission, bonus and incentives. 5.No upper limits On earnins. 6. Flexible career. Therefore the first and for most problem is to convinced that person those who having enough patience to listen my companies idea/views. The role of the advisor is to quite effective to search a good prospect.

ROLE OF AN ADVISOR:
1. Identify future clients/prospect 2. Making appointment. 2. Conduct financial review meeting with prospect. 4. Close sale. 5. Get referral 6. Provide service to clients/prospect. 7. Follow internal sales and reporting system.After analyzing the quality (which the company is looking for), back office service(which the company is giving to that person). Functions to be performed, role to be played .I used to describe the benefits which the advisor can get out of his/her joiningas an advisor in SBI Life Insurance Company.

ROLE OF UNIT MANAGERS

In fulfilling his obligations under the Agreement, Advisor shall scrupulously adhere to, follow and be bound by the Statutory provisions governing life insurance Advisors and more particularly the code of conduct contained therein, as in force from time to time. Without prejudice to the generalify of the obligations of the Advisor to SBI Life Life Insurance, the Advisor shall: a. Faithfully and diligently promote the business of SBI Life Life Insurace; b. Ensure that any representation made and information provided is accurate; c. Act diligently and carefully in providing any advice and ensure that such advice is based on thorough analysis and take into account available alternatives; d. Ensure that any advice is reasonable in view of the customers circumstances; e. Not admit any liability or make any false, misleading, deceptive or reckless statement to the customer in respect of life insurance generally or any particular product of SBI Life Life Insurance; f. Solicit proposals for insurance for SBI Life Life Insurance as SBI Life Life Insurance may from time to time determine during the term of this Agreement; g. Service the needs and requirements of customer introduced by self or assigned by SBI Life life Insurance; h. Meet the validation specified by SBI Life Life insurance including production and persistency;

On successful completion of training the candidates get COT i.e. the Completion of Training Certificate by SBI Life INSURANCE?

Basic aim of the insurance plan satisfies the following objectives:- Protection of economic value of assets. Mechanism to reduce impact of adverse events on value generating assets.

Types of insurance
Insurance is generally classified into three main categories: 1. Life Insurance. 2. Health Insurance. 3. General Insurance. To get insurance an individual or an organization can approach to Insurance Company directly, through Insurance agent of the concerned company or through intermediaries. Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium.

NEED OF LIFE INSURANCE

. The functions of Insurance can be bifurcated into two parts: 1. Primary Functions 2.Secondary Functions 3. Other Functions

The primary functions of insurance include the following: Provide Protection - The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others. Collectivebearingofrisk - Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid. Assessment of risk - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also. Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain.

The secondary functions of insurance include the following:

Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses causes lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured .

The other functions of insurance include the following:

Means of savings and investment - Insurance serves as savings and

investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance. Source of earning foreign exchange - Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways. Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover.

Conclusion
Summer training is a best example for a trainee to learn about the company working, corporate culture under which is operating the functions. SBI life insurance company under which I gained a significant knowledge with respect to life insurance, its importance and applicability as well as undertook the task to recruit capable life insurance advisors which is conducive for the company to grow with more prosperity. What I taught in the management institute utilized them fruitfully leading to the best advantage to the company and to the best experience for mine. In all Public Service jurisdictions, new approaches to recruitment are being used.In many territories, the strategies are manual but, as automated methods become more pervasive; those mechanisms that support its use will assume greater popularity. Whatever the strategies selected for use, the objective is to recruit the most qualified, committed individuals into the organizations and ensure that the provision of government services to the public is timely and effective, that the goods are of consistent high quality and that the organizations achieve the objectives for which they have been established. Life insurance is a noble service which is very important for every citizen to learn and realize its importance because this is the only source which can remain the status where one is with the family bread earner and ever when he is not.With the growing financial sector I would like to opt this industry for my future career advancement and as an opportunity to service this industry.

BIBLOGRAPHY

www.irdaindia.org
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www.liccouncil.org

www.businessconne ct.com www.google.co.in www.netpnb.com www.pnbindia.com business.mapsofindi a.com finance.indiamart.co m www.scribd.com www.nseindia.com www.bseindia.com http://en.wikipedia.org/wiki/consumer_psyche