Comparative Study and Analysis of Prominent Life Insurance Companies in India

By Narindar Kaur

Topics

Reward & Recognition Performance Management System Training System Agency Development

Objectives

R&R
Compare ICICI Prudentials Rewards & Recognition program with that of other companies.

PMS
To study the Performance Management System of major insurance companies.

Training
To understand the training methodologies used by top insurance companies and evaluate their effectiveness to that of ICICI Prudential.

Agency development
To check the system of agency support in other companies and suggest improvements to the one at ICICI Prudential.

Methodology

The research was conducted in the following ways:

By visiting various branches of companies and speaking to advisors, sales managers and frontline sourcing managers. By written questionnaires administered to the population on the effectiveness of the corporate departments within their organization. By calling the targeted population and administering the questionnaire.

Bajaj Allianz

R&R Contests currently being run for the advisors are Monsoon Bonanza, Chak De , Tare Zameen Par. In addition there are loyalty programmes like Silver club , Gold club & Platinum club . PMS Career Progression in the organization is as follows: Sourcing AD- Consultant- TSM- ASM- SM -SSM Non Sourcing -ESM - MSM- BDM- SBDM- BM- SBM- Dy AMDivisional M - AVM- State M- Additional M Dy SM - RM - ZM CM- HOS- CEO Training Skills, Sales & Product Training is imparted to the advisors. In house training conducted as and when required & guest faculty training imparted once a quarter for 2 days Agency development No formal agency development, since Sales Manager takes care of this arena

Birla Sun Life

R&R Few contests currently being run for the advisors are Policy Bonanza, Gold Star. The loyalty programmes are ,Bronze club , Silver club ,CEO club based on the advisor performance. PMS Sourcing- Advisor / Agency M / BDM / Non Sourcing- BM / MH/ Territory M / RM/ ZM/ VP / President / CEO Training Skills, Sales & Product ,Communication Training is imparted to the advisors. In house training conducted & Ones time in a month for 3 day's. Agency Development No formal agency development, since Sales Manager takes care of this arena.

LIC

R&R Few contests currently being run for the advisors are Weakly contest- Rain cote, Monthly contest- chalo suraj water park , Quarterly contest-Golden Heights. The loyalty programmes are , CEO Club, Zonal club, Divisional club, Branch club . PMS Sourcing - Advisor /ADO- DO Non Sourcing - /ABM / BM / DM / ZM / MD Target - 30 Ad , 400 lives ,7 lac within 1 year TRAINING Skills, Sales & Product ,Communication Training is imparted to the advisors. In house training conducted & Ones time in a month for 3 to 5 day's. Agency development No formal agency development, since Sales Manager takes care of this arena.

Reliance

R&R Few contests currently being run for the advisors are Tactical contest - Barsat ki ek Raat ,Monthaly contest-'Launch Pad" Monsoon Hungama. In addition there are loyalty programmes like Platinum premier Platinum club , Diamond ,Gold club , Silver club, Rising Star -baisd on the advisor performance. PMS
Sourcing -AD /SM / ABM Non Sourcing- BM / ASM/ RM / ZM/ AVP / VP /MD Target- 24 advisors ,50 lac WRP, 150 lives.

Training Skills, Sales & Product ,Communication Training is imparted to the advisors. In house training conducted & in company every Saturday By SM &BM , other viz ones time in 3 month. Agency development No formal agency development, since Sales Manager takes care of this arena.

Kotak Life

R&R Few contests currently being run for the advisors are ,Jitne Logins Utne Coin, Assured Gift The loyalty programmes are , Star club ,Gold club ,Silver club, & 51 Club baisd on the advisor performance. PMS
Sourcing - AD /SM / ABM Non Sourcing- BM / ASM/ RM / ZM/ AVP / VP /MD

Target- 12 Ad , 56 lac WRP,200 lives.

Training Skills, Sales & Product ,Communication Training is imparted to the advisors. In house training conducted & in company every month by company staf. Agency development No formal agency development, since Sales Manager takes care of this arena

Max New York

R&R Few contests currently being run for the advisors are,Jeeto Unlimited. The loyalty programmes are , CEO' s Council, Executive council, Paul Colgn Trophy, Centurion, Fantastic 50, Agent of the year, Career Producer Award,Premium Leader based on the advisor performance. PMS Sourcing -AD /Agency Associate/ SM / Non Sourcing- ASP/ P/ MP/RM /ZVP/Director/ED/Dy.MD /CEO Target - 24 Ad , 25 lac in a year . Skills, Sales & Product ,Communication Training is imparted to the advisors. In house training conducted & in company every month by company staf.

Training

Agency development No formal agency development, since Sales Manager takes care of this arena.

SBI

R&R Few contests currently being run for the advisors are Jeeto Sona Chandi Jeeto , Golden coin , silver coin .The Loyalty programmes are, Platinum club, Gold club, Silver club. PMS Sourcing -AD/ UM / Ag.M/ SAM / TM Non Sourcing- ABM/ BM /Dvi.SM / ASM /RM/ ZM /CH Target- 75 lac ,30 Ad in a year. TrainingSkills, Sales & Product ,Communication Training is imparted to the advisors. In house training conducted & in company every quarter . Agency development No formal agency development, since Sales Manager takes care of this arena.

Tata Aig

R&R Few contest currently being run for the advisor are, Josh kuch kar dikhana hai, Convention Bonanza, Barsaat ki ek raat The Loyalty programmes are,Prince level , Maharaja level , Shahnsha level PMS Sourcing - Ad/SAD / ExAD/ABDM / BDM/ SBDM /SM / SSM/ BSM Non Sourcing - SBM / AM/ ZH/ VP/ CEO Target- 25 Ad , 26 lac in a year TrainingSkills, Sales & Product ,Communication Training is imparted to the advisors. In house training conducted & in company every quarter . Agency development No formal agency development, since Sales Manager takes care of this arena.

HDFC

R&R Few contest currently being run for the advisor are ,Achievers ,Super Achievers , Dream Weavers.The Loyalty programmes are Bronze club ,Silver club, Gold club , Platinum club. PMS Sourcing - Ad / SDM / BDM / AgSM Non Sourcing - BM /TM / RM / ZM / BusiH / VP / CEO Target- 25 Ad , 40 lac in a year Training Skills, Sales & Product ,Communication Training is imparted to the advisors. In house training conducted & Ones time in a month for 3 to 5 day's. Agency Development Recruitment Sources Open market ,Reference, Online

AVIVA

R&R Few contest currently being run for the advisors are ,Kool Khiladi ,Sachin Ala Re. The Loyalty programmes are, Lakhpati club ,Jewel Club , Pearl , Emerald ,Ruby , Sapphire , Diamond. PMS Sourcing - Ad/ASM / SM Non Sourcing - DyBM/BM /Clu H / RDr / ExDr / CEO / Target-20 Ad , 30 lac WRP, 250 lives in a year Training Skills, Sales & Product ,Communication Training is imparted to the advisors. In house training conducted & Ones time in a month for 3 day's. Agency Development No formal agency development, since Sales Manager takes care of this arena

Significant Feature In Each Company

Bajaj Allianz Cash prize &1 lac insurance free of cost. If Advisor have done 5 lac business then company gives him 12,500 Rs & He / She Eligible for silver club & 1 lac insurance free of cost for advisor & + 6000 Rs.

Birla sun life Higher reward Medical facility is provided to the client at home according to Requirement KOTAK The contest Criteria is good like Jitne Logins Utne Coin . Countdown Program for all new life advisor 51 Club

Significant Feature In Each Company

LIC Target parameter is lives No exit system High Expensive Reward for the internal program Like Home , car , laptop.

Max New York Good training system Sponsorship by company:Fundamental career school (FCS) Business career school (BCS) Intermediate career school (ICS)
Tata Aig Performance Management System

Parameter for comparison

R&R

Initiative for advisor Contest Contest time Target parameter Gifts Gift receive time Loyalty programs Monthly party / Awards ceremonies

Parameter for comparison

Performance Management System

Career path Target parameter for UM/SM Target time Recruitment target Promotion system Exit system Extra target Extra time

Parameter for comparison

Training System

Focus of training Refresher training Mode of training Method of training Trainer Training times Training place

Parameter for comparison

Agency Development

Sources for the recruitment Process Recruit criteria

Contest Comparison
Company Name ICICI Pru Cost of Reward 450 700 990 1335 2700 3800 6500 11000 19500 33000 54250 80000 135000 175500 262750 450000 812500 Tata AIG Liability 0.6% 0.6% 0.9% 0.7% 0.8% 1.1% 1.1% 1.5% 1.7% 1.8% 1.6% 1.8% 1.8% 1.3% 1.2% Cost of Reward 300 450 850 1000 2500 5600 8289 15000 24799 35000 48000 72899 88999 95000 120000 Reliance Liability 2.0% 2.0% 3.0% 3.3% 3.3% 4.0% 3.7% 5.0% 5.0% 5.0% 6.7% Cost of Reward 1000 1500 3000 5000 10000 20000 28000 50000 75000 100000 200000 AVIVA Liability 1.5% 1.3% 1.5% 1.3% 1.0% 2.0% 2.0% 2.0% 2.0% 1.8% 1.8% 1.5% 2.2% 1.7% 1.4% 1.7% 2.0% 3.2% Birla Sun Life Max New York Bajaj Liability 1.5% 1.2% 1.8% 1.7% 1.7% 2.5% 0.0% 3.0% 0.0% 4.0% Cost of Reward 750 900 1750 2500 5000 12500 30000 80000 Kotak Liability 1.5% 1.3% 1.5% 1.7% 1.5% 1.9% 1.9% 3.2% 3.2% 3.3% Cost of Reward 750 950 1500 2500 4599 9500 14299 32000 48000 65000 WRP slab Liability 50000 75000 100000 150000 300000 500000 750000 1000000 1500000 2000000 3000000 4000000 5000000 7500000 10000000 15000000 20000000 25000000 30000000 50000000 0.90% 0.93% 0.99% 0.89% 0.90% 0.76% 0.87% 1.10% 1.30% 1.65% 1.81% 2.00% 2.70% 2.34% 2.63% 3.00% 0.00% 3.25% Cost of Cost of Cost of Liability Liability Reward Reward Reward 750 2.0% 1000 0.6% 300 1000 2.0% 1500 1.2% 900 1500 2.0% 2000 1.5% 1500 2000 2.0% 3000 1.3% 2000 3000 2.0% 6000 1.0% 3000 10000 2.0% 10000 1.8% 9000 15000 2.0% 15000 1.7% 12500 20000 2.0% 20000 2.0% 20000 30000 2.2% 33000 1.9% 28000 35000 3.4% 68000 2.5% 50000 55000 3.8% 115000 2.3% 70000 60000 4.4% 175500 2.8% 110000 110000 4.2% 208500 3.0% 150000 125000 4.6% 343750 2.7% 200000 140000 6.7% 665250 3.2% 315000 250000 5.6% 840750 2.9% 440000 400000 5.1% 1016200 6.0% 1200000 800000 11.4% 2857000 8.0% 2000000 11.7% 3520000 10.0% 3000000 8.4% 4187500

Contest Comparison

Comparison

PMS Comparison
Company ICICI Pru Tata Aig Reliance Kotak Max New York HDFC Birla Prom otion Level Advisor's Level 1 20 25 24 12 24 24 20 level 2 26 28 30 20 30 30 28 Level 3 32 30 35 Level 4 38 35 Level 5 44 40 Level 6 50 Company ICICI Pru Tata Aig Reliance Kotak Max New York Hdfc WRP (In lac) Prom otion Level Level 1 3.62 26 50 56 25 40 level 2 6.73 32 75 75 45 60 Level 3 9.17 38 80 Level 4 11.35 44 Level 5 14.57 50 Level 6 17.33 Company ICICI Pru Tata Aig Reliance Kotak Max New York Hdfc No. of Cases Prom otion Level Level 1 189 NA 150 200 NA NA level 2 317 NA 250 450 NA NA Level 3 415 NA NA Level 4 514 NA Level 5 612 NA Level 6 618 Birla 4 6 Bajaj 12 20 LIC 30 40 AVIVA SBI 20 28 30 45 45>

Bajaj 10 15 20

LIC 7 10

AVIVA SBI 30 60 75 1.5 cr 2 Cr.

Birla 150 250

Bajaj 125 150 200

LIC 400 600

AVIVA SBI 250 450 NA NA NA

Training Comparison

Company ICICI Pru Tata Aig Reliance Kotak Refresher training for AD 3 day 3-5 day 3 day 5 day Refresher training for UM 15 day 15 day 15 day 15 day Guest faculty, Yes NA Yes Yes Trainer 25 5 5

Focus of training

Max New York HDFC Birla Bajaj LIC AVIVA SBI 10-15 day 5 day 3 day 3 day 3 day 5 day 3 day 15 day 15 day 15 day 15 day 15 day 15 day 15 day Yes Yes NA Yes NA NA Yes 8 15 5 5 5 8-10 8 5 Sales/ Sales/ Sales Product,Comm New Sales Sales Product,Com Sales Sales Sales Sales Sales /Product, unication Skill, Product, Skill,Prod Skill,Prod munication /Product /Product Skill,Product /Product /Product Management 3 types of Sales , uct uct Skill, courses

Agency Development

Only ICICI and HDFC has Agency development department whereas in other companies Agency development is taken care by Unit Manager or Operation System. In HDFC the agency development is recruited through open market & Reference. HDFC Recruitment ProcessAAF ,KYC HDFC Advisors passing % 40-50%.

Conclusion

Top 3 company in R&RReliance Life Birla Sun Life Bajaj Allianz

Top 3 company in PMSICICI Pru Tata Aig Bajaj Allianz

Top 3 company in TrainingMax new york ICICIpru Tata Aig

Thank You