A

PROJECT REPORT ON
RECRUITEMENT AND CAREER OPPORTUNITY FOR
AN ADVISOR WITH BARTI AXA
SUBMTTED FOR THE PARTIAL FULFILMENT FOR THE AWARD
OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

MBA IVTH SEMESTER

2010-12

UNDER THE GUIDANCE OF

MRS. SARITA SINGH

ASSTT. PROFESSOR

SUBMITTED BY

KAILASH PRASAD RAJAK

RANIDURGAVATI
VISHWAVIDYALAYA,JABALPUR(M.P.)

1
 CERTIFICATE

This is certify that Mr. Kailasa Prasad Rajak who is a

student of Shri Ram Institute Of Management MBA

IVthsem. Has prepared the project titled Recruitment and

Career opportunities to advisor in bharti axa under
guidance of Mrs. Sarita singh and same is being forwarded
to Rani Durgavati vishwavidyalaya.

2
 ACKNOWLEDGEMENT

I am highly indebted to Mrs. Sarita singh for her guidance and constant super
vision as well as for providing necessary information regarding the project And
also for support in completing the project .

I would like to express my gratitude towards Dr.

.Shri ram institute of management for their
kind cooperation and encouragement which help me in completing the project.

I am gratefull to other faculty member also for their help and valuable
suggestion.

I am also thankfull to the two director Mr. N.N.dubey and S.K. dhoraliya for
their encouragement and advice.

It give me grate pleasure in expressing my heartful gratitude and indebtedness for

the kind blessings showered upon the students by honble chaireman shri
R.Karsolia.

Kailash Prasad Rajak

Shri ram institute of management MBA IVth
sem.

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 DECLARATION

I hereby delare that the project titled RECRUITEMET AND

CAREER OPPERTUNITIES FOR AN ADVISOR WITH
BHARTI AXA.Being submitted for the partial fulfillment for
the award of the degree of Master of Business Administration to
Rani Durgavati vishwavidyalaya, Jabalpur is my own
work done under the guidance of Mrs. Sarita singh.

Kailash Prasad rajak

shri ram institute of management MBA
IVth sem.

4
 EXECUTIVE SUMMARY

In todays competitive market, for life insurance sector, recruiting good agents
has often been considered the number one job & problem in agency
management. It is certainly a task that new companies in the Indian life
insurance market have put much stress on. The reason is that life insurance
remains a product, not many are easily disposed to buy and not many want to
sell either. The survival of agency manager depends on his convincing enough
qualified and competent people to choose life insurance selling as a permanent
career. Recruitment involves selecting the right candidate for the agents job
and selling the agency idea to him.
Recruitment continuously is very much important for life insurance
companies; because FYP (First Year Premium) is directly depend on the
number of Agents/Advisors, Activity Ratio, Case Rate & Case Size. Apart
from recruiting more & more advisors it is necessary to recruit quality
advisors to maintain activity ratio, case rate and case size.
Further, it is very important to know the target segment for recruitment, in this
project work, I have segmented the whole market mainly on the basis of
demographic (occupation, & age), and geographic (urban & sub-urban areas)
segmentation, to identify the potential segment for recruitment.

5
 INTRODUCTION
1.1 Objective of the project
To identify the segment of people for Business Associates (BAS)
recruitment.
Find out the different ways to find the prospects for BA recruitment.
To find the reason behind individual decisions in joining life insurance
company as an agent or advisor.
To collect the data, this would help in formulating strategies for
recruitment of Bharti Axa Insurance Co. Ltd.
To find probable individual for recruitment for the organization.
To know difficulties in recruitment.
To know the process of good recruitment.
1.2 Scope of This Project
As the project is fully based on survey and it can be used for decision
making. By knowing the opinion or conversion ratio of the individual
management can take decision accordingly, management can identify
the segment of people for recruitment on the basis of age, profession etc.
i.e. the people to whom company should target for recruitment.

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1.3 Limitations
Most of the people do not want waste their time to fill up the
questionnaires due to their busy schedule.
Some of the respondents hesitate to disclose their details.
Most of the person thinks that market survey is wasting of time, so they
are not answering the question seriously.
Time constraint: since recruitment is a long process.
The study has been limited to geographical boundaries of Jabalpur Dist.
only.
1.4 Research Methodology
The research is based on the systematic research design to meet the above
mentioned objective. For the fulfillment of the objective of the study
effectively methods of data collection are quite necessary.
Sampling:
The sampling is selected according to the respondents convenience, as I had
to visit them as per their availability.
Sampling method: Stratified Random Sampling
Sample Unit: Teachers, Govt. Employee, Pvt. Employee,
Students, businessmen, Advocates,
Medical Representatives, etc.
Sample Size: 150
Geographical Location: Jabalpur District

Source of data collection: Primary & Secondary

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Primary Data Collection:
The primary source of data collection was through survey through
market survey tool/questionnaires where each respondent were provided
with a market survey form and ask to give their views.

Secondary Data Collection:

The secondary source of data collection Internet, Magazine On
Insurance, & Books On Insurance.

Survey technique used:

The survey method used was Structured Direct interview

technique& also through telephonic interview technique. Where
respondents knew why the survey was being done. The questionnaire
was setup multiple choice questions, simpler questions using YES or NO
or MAY BE options & also by OPEN/CLOSE handed questions by
which we can know about the NEED & PREFERANCE for
supplementary income of an individual, from which we can find out the
segment of people to whom company should target for recruitment.

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 OVERVIEW OF INSURANCE
2.1 What Is Insurance?
Insurance is a contract between two parties whereby one party
agrees to undertake the risk of another in exchange for a
consideration known as premium.
Insurance is an economic device whereby the individual can
substitute a small relatively definite cost (premium) for a large
financial loss (the contingency insured against) that would have to
be borne if insurance was not available.
The party which undertakes the risk is called insurer and the other
one, whose risk is transferred is known as the insured.
The insurer promises to pay a fixed sum of money to the insured
on the happening of an uncertain event (death) or after the expiry
of a certain period in case of life insurance.
The insurer agrees to indemnify the insured on the happening of an
uncertain event in case of non-life (general) insurance.
2.2 Basic Concepts
The concept behind insurance is that a group of people exposed to
similar risk come together and make contributions towards
formation of a pool of funds.
In case a person actually suffers a loss on account of such risk, he
is compensated out of the same pool.

Insurance has two fundamental characteristics:

Risk is transferred or shifted from one individual to a group.

9
 Losses are shared, on some equitable basis, by all members
of the group.

2.3 Fundamental Principles of Insurance

Insurable Interest:
Insurable Interest is defined as the legal right to insure
arising out of a financial relationship recognized under law,
between the insured and the subject matter of insurance.
The Principle of Insurable Interest states that the insured
must be in position to lose financially if a loss occurs.

Utmost Good Faith:

A positive duty voluntarily to disclose, accurately and fully,
all facts material to the risk being proposed, whether
requested or not.
Higher degree of honesty is imposed on both parties to an
insurance contract than any other contract, because-
Insurance product is intangible one.
Principle of Indemnity:
It states that the insurer agrees to pay no more than the
actual amount of loss.
In other words, the insured should not make profit from a
loss.
The principle applies to non-life (property and liability)
insurance contracts only.

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 Principle of Subrogation:
It is the right of one person, having indemnified another
under a legal obligation to do so, to stand in the place of that
other and avail himself of all the rights and remedies of that
other.
In other words, it is the substitution of the insurer in place of
the insured for the purpose of claiming indemnity from a
third person for a loss covered by insurance.
It avoids a situation where an insured might profit from an
insured event.

11
2.4 History of Indian Insurance Industry:
The history of insurance in India dates back to the year 1818, when the
Oriental Life Insurance Company was formed in Kolkata. The Life
Insurance Act of 1912 marked the beginning of a new era in the insurance
sector of India.

The Indian Insurance Companies Act was passed in the year 1928. This act
empowered the government of India to gather necessary information about the
life insurance and non-life insurance organizations operating in Indian
financial markets.

The Triton Insurance Company Ltd. formed in 1850 and was the first of its
kind in the general insurance sector in India. The Indian Mercantile Insurance
Limited was established in 1907, and was the company in India to handle all
classes of insurance.

The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-
degree turn witnessed over a period of almost 190 years.

Some of the important milestones in the life insurance business in India

are:
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.

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1956 - 245 Indian and foreign insurers and provident societies taken over by
the central government and nationalized. LIC formed by an Act of Parliament,
viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the
Government of India.

Some of the important milestones in the general insurance business in

India are:
1907 - The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of

India, frames a code of conduct for ensuring fair conduct and sound business
practices.

1968 - The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India with effect from 1st
January 1973.

The Malhotra Committee, 1993

Reform in the Indian insurance sector was initiated with the formation of the
Malhotra Committee in 1993. It was named after R.N. Malhotra, the then
Finance Secretary and RBI Governor, who headed the committee.

The aim of the Malhotra Committee was to assess the functionality of the
Indian insurance sector. This committee was also in charge of recommending
the future path of insurance in India.

The Malhotra Committee attempted to improve various aspects of the

financial sector, making them more appropriate and effective for the Indian
market.
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The recommendations of the committee put stress on offering operational
autonomy to the insurance service providers and also suggested forming an
independent regulatory body.

Malhotra Committee was constituted by the government in 1993 to examine

the various aspects of the industry. The key element of the reform process was
Participation of overseas insurance companies with 26% capital. Creating a
more efficient and competitive financial system suitable for the requirements
of the economy was the main idea behind this reform.
Due to concerns of
Relatively low spread of insurance in the country.
The efficient and quality functioning of the Public Sector insurance
companies.
The untapped potential for mobilizing long-term contractual savings
funds for infrastructure the (Congress) government set up an Insurance
Reforms committee in April 1993.

In 1993 the Government of Republic of India appointed RN Malhotra

Committee to lay down a road map for privatization of the life insurance
sector. While the committee submitted its report in 1994, it took another six
years before the enabling legislation was passed in the year 2000, legislation
amending the Insurance Act of 1938 and legislating the Insurance Regulatory
and Development Authority Act of 2000.The same year that the newly
appointed insurance regulator - Insurance Regulatory and Development
Authority IRDA started issuing licenses to private life insurers.

14
2.5 LIST OF LIFE INSURERS:
Apart from Life Insurance Corporation, the public sector life insurer, there are
20 other private sector life insurers, most of them joint ventures between
Indian groups and global insurance giants.
SL. Insurers Foreign Partners Regn. Date of Year of
NO No. Registratio Operation
. n
1 HDFC Standard Life Standard Life Assurance, UK 101 23.10.2000 2000-01
Insurance Co. Ltd.
2 Max New York Life New York Life, USA 104 15.11.2000 2000-01
Insurance Co. Ltd.
3 ICICI-Prudential Life Prudential , UK 105 24.11.2000 2000-01
Insurance Co. Ltd.

4 Om Kotak Life Insurance Old Mutual, South Africa 107 10.01.2001 2001-02
Co. Ltd.

5 Birla Sun Life Insurance Sun Life, Canada 109 31.01.2001 2000-01
Co. Ltd.
6 Tata-AIG Life Insurance American International 110 12.02.2001 2000-01
Co. Ltd. Assurance Co., USA

7 SBI Life BNP Paribas 111 29.03.2001 2001-02

Insurance Co. Ltd. Assurance SA, France

8 ING Vysya Life ING Insurance International 114 02.08.2001 2001-02

Insurance Co. Ltd. B.V., Netherlands

9 Bajaj Allianz Life Allianz, Germany 116 03.08.2001 2001-02

Insurance Co. Ltd.

10 Metlife India Metlife International Holdings 117 06.08.2001 2001-02

Insurance Co. Ltd. Ltd., USA

11 AVIVA Aviva International Holdings 122 14.05.2002 2002-03

Ltd., UK
12 Sahara Life 127 06.02.2004 2004-05
Insurance Co. Ltd

13 Shriram Life Sanlam, South Africa 128 17.11.2005 2005-06

Insurance Co. Ltd.

14 Bharti AXA Life AXA Holdings, France 130 14.07.2006 2006-07

Insurance Co. Ltd.

15 Reliance Life 121 03.01.2002 2001-02

Insurance Co. Ltd.
(Earlier AMP Sanmar
15
 Life Insurance Co.
from 3.1.02 to 29.9.05)

16 Future Generali India Pantaloon Retail Ltd.; 133 04.09.2007 2007-08

Life Insurance Co. Ltd. Sain Marketing Network Pvt.
Ltd. (SMNPL), Generali, Italy
17 IDBI Fortis Life Fortis, Netherlands 135 19.12.2007 2007-08
Insurance Co. Ltd.

18 Canara HSBC OBC Life HSBC, UK 136 08.05.2008 2008-09

Insurance Co. Ltd.

19 Aegon Religare Life Religare, Netherlands 138 27.06.2008 2008-09

Insurance Co. Ltd.

20 DLF Pramerica Life Prudential of America, USA 140 27.06.2008 2008-09

Insurance Co. Ltd.

21 Life Insurance 512

Corporation of India

2.6 Types of insurance:

Generally, insurance is divided into two categories and is named as;

General Insurance
Life Insurance

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 FRAME WORK ANALYSIS OF INSURANCE

GENERAL INSURANCE LIFE INSURANCE

INDIVIDUAL MICRO GROUP INSURANCE

INSURANCE INSURANCE

HEALTH ULIPs ANNUITY WHOLE LIFE ENDOWMENT TERM

INSURANCE PLANS INSURANCE PLANS INSURANCE

2.7 What are the benefits one get from insurance:

Safeguards oneself and one's family for future requirements.

Life cover.
Peace of mind in case of financial loss.
Encourage saving.
Tax rebate.
Protection from the claim made by the creditors.
Security against a personal loan, housing loan or other types of loan.
Provide a protection cover to industries, agriculture, women and child.

2.8 Distribution Channels in Insurance

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 COMPANY PROFILE
INTRODUCTION TO COMPANY

Bharti AXA Life Insurance Company Ltd.

Bharti AXA Life Insurance is a joint venture between Bharti, one of Indias
leading business groups with interests in telecom, agri business and retail,
and AXA, world leader in financial protection and wealth management. The
joint venture company has a 74% stake from Bharti and 26% stake of AXA.
The company launched national operations in December 2006. Today, it has
over 5200 employees across over 12 states in the country. Our business
philosophy is built around the promise of making people "Life Confident".
As we expand our presence across the country to cater to your insurance and
wealth management needs with our product and service offerings, we
continue to bring 'life confidence' to customers spread across India. Whatever
your plans in life, you can be confident that Bharti AXA Life will offer the
right financial solutions to help you achieve them.

The Joint Venture BHARTI and AXA

BHARTI

Bharti Enterprises is one of Indias leading business groups with interests in

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

AXA Group

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

diverse geographically, with major operations in Western Europe, North America
and the Asia/Pacific area. AXA had Euro 1,315 billion in assets under management
as of December 31, 2006. For full year 2006, IFRS revenues amounted to Euro 79
billion, IFRS underlying earnings amounted to Euro 4,010 million and IFRS
adjusted earnings to Euro 5,140 million.

The AXA ordinary share is listed and trades under the symbol AXA on the Paris
Stock Exchange. The AXA American Depository Share is also listed on the NYSE
under the ticker symbol AXA.

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Bharti AXA Life Insurance

Vision

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

Values

Professionalism

Innovation

Team Spirit

Pragmatism

Integrity

Professionalism:-A professional is a collegial discipline that regulates itself

by means of mandatory, systematic training. It has a base in a body of
technical and specialized knowledge that it both teaches and advances it sets
and enforces its own standards and it has a service rather than a profit
orientation, enshrined in a code of ethics.

Innovation: -Innovation . . . is generally understood as the successful

introduction of a new thing or method . . . Innovation is the embodiment,
combination, or synthesis of knowledge in original, relevant, valued new
products, processes, or services.

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 Team Spirit :-team spirit is the spirit of a group that makes the members
want the group to succeed

Pragmatism:-Pragmatism is the philosophy of considering practical

consequences and real effects to be vital components of meaning and truth.

Integrity: -Integrity is consistency of actions, values, methods, measures,

principles, expectations and outcome. As a holistic concept, it judges the
quality of a system in terms of its ability to achieve its own goals.

Innovation

Professionalism Pragmatism

VALUE OF

BHARTI AXA LIFE

Team Spirit Integrity

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 STRATEGY

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

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

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Whom to Recruit?
The agency organizations would be crippled era long if the right kind of
people were not in the ship. The agents job like any other contains a job
description and a job specification. The agency manager needs to be clear
about not only what he requires the agent to do also a profile of who would
play the role well. It is not necessary or even possible to get readymade
MDRT stuff. The key is to discover those people who have the latent potential
to grow and to be groomed so as to emerge as sales champions. As in new
business prospecting, one must build a reservoir of potential candidates who
can be offered an agency career. Let us looked at some of the qualities to look
for (Fig-5a):

BACKGROUND

ABILITY TO
EXPERIENCE RELATE WITH &
COMMUNICATE

QUALITIES
TO LOOK

HUNGER CHARACTER &

TO EXCELL ATTITUDE

Fig-5a

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 The candidate should ideally come from a background where work and life
has been challenging and every meal had to be earned the hard way. An
agents job is essentially entrepreneurial. The only security that there is
comes from the ability to perform & this is often not within ones control.
A great deal of courage, self-discipline, self-confidence, self-drive is
needed to enable one to stick to the course & work in an environment
where results do not come easily.
A person with some business & service experience & who has enjoyed
success pattern may make a good recruit. Such a person is likely to have a
fair amount of maturity of thought and a sense of responsibility. Success
also requires discipline and healthy work habits. Remember, customer have
to be sure about the person from whom they are buying insurance.
The candidate must obviously be one with the ability to relate with and
communicate to people. One of the key things to especially look for is the
social mobility of the prospect- is he actively engaged in community and
social activities where he meet and render services to other people. Is he
someone who is liked?
One of the critical requirements of an agent is character & attitude.
Character is about doing what is right and ethical and in the interest of
ones customers. Similarly, one must be sure of the agents attitude to
insurance and the customer. The agent must be the type who believes in
insurance & the importance of financial security.
Finally, the most important attribute to look for is fire in the belly a
hunger to excel in the agency profession. There are no free lunches.
Success has a price and one can pay that price only when there is sufficient
fire within.

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5.4 Where to Recruit?
The types of people we have profiled above are obviously not likely to be
sitting idle at home. Usually, they are engaged somewhere. It is also obvious
that good prospects do not easily come by. One has to make a search for them
and discover them. Let us look at some of the source from which one may
draw good prospects.
A most potent source lies in individuals and professional/occupational
being displaced by industry wide vocational disturbances. A large number
have taken voluntary retirement (VRS) or face retrenchment. Similarly
many business proprietors have their revenues and profits affected by
competition and adverse trends. These are people likely to be interested in
life insurance sales career. They do not posses maturity and work
experience but also are at an age when fire is still there.
A next source is to liaise with Placement Agencies and other platforms
where people in search of jobs are registered. One may also advertise about
a job opening. The problem is that such recruitment centers are unlikely to
promote a job in life insurance selling. This is where selling the career
become important.
For several decades, the most popular source of agency recruitment has
been members of ones extended family & community, friends circle, ones
customers and center of influence. They may either themselves become
agents or recommend and help in recruiting others. Policyholders,
especially if they are satisfied clients, could provide great support in this
regard. The problem is that many of them are not business minded. They
have valuable personal contacts but the agency manager would need to
work and assist to convert these into professional and business
relationships.

25
 Fourth, there are salesmen in other areas. Those in FMCGs can be found in
retail outlets or moving from house to house. Others from the
pharmaceutical industry visit doctors and hospitals. There are salesmen all
around the place. The task is to ask if they intend to remain in their present
line of sales all their lives. Why not plunge into something a lot more
challenging and rewarding?
One of the most promising sources of recruitment is the housewives
looking for a part time job to supplement family income. Women can
understand personal and family financial problems and are able to interact
on an emotional level. Remember they constitute half of the mankind and
are the pillar of support in every family. In many Indian & Asian
communities, women would not move amidst and talk freely to male
strangers. But housewives would listen to other housewives. Perhaps the
best advantage stems from the fact that millions are seeking new career
opportunities today and are entering the job market in large number.
The college campus is also a possible source of recruitment. One hazard is
that students may not stick with it for long. Those in the top half of class
(academic) performers are likely to search for and find other jobs or go for
higher studies. It would be worthwhile to look for good solid people at the
lower half of the class.
Finally there is the professional financial adviser (e.g. a CA or income tax
practitioner) who may consider the agency as an additional part-time
source of income.

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5.5 How to recruit?
The recruitment process has two steps:

Find out the prospect

Recruitment
Selling the agency to
the selected prospect

The first stage is that of qualifying the prospect- making sure he/she is the
right candidate for the agency. It may be wise to spend some time for the
purpose- observing and getting to know the prospect better. There are many
things to know, such as family background & education, past
achievements, social mobility and connections, dreams and ambitions, how
he looks at life insurance and its selling. Among other issues it is especially
vital to look for the thread of discontentment- is the prospect dissatisfied
with his present job and state of affairs and ready to take the plunge.
Would he have enough fire and discipline to make a success of a job?
These are matters involving judgment and a prudent agency manager
would not hurry.
The second stage is that of selling the agency to the selected prospect. This
may again involve one or more sessions:
Selling the agency career.
Establishing leadership.
Selling the company.

27
 Selling the agency career: Every prospect needs to be first of all
convinced that a career in life insurance selling offers a rewarding way
of life.
Let us start with stability. There is tremendous stability in this career,
once the early humps are tackled. Every new policy earns not only 30-
40% commissions but also lots of incentives as in SAMPATI YATRA
(BA Model) of Bharti Axa. The beauty is that the market we are
working in is continuously expanding.
As for the career advancement, the sky is the limit. An agent has one of
those jobs where one can earn more than the company chairman. As
there are tremendous growth opportunities in SAMPATI YATRA (BA
Model) of Bharti Axa.
A third major selling point is the freedom that comes with the job here is
the career where one can set ones own time schedule of work and life
choose ones own clientele; learn continuously on the job and move
ahead.

Establishing leadership: we come now to one of the most critical items

that agency manager has to sell. He has to sell himself and convince the
prospect to accept his leadership and supervision. Let us call this session
a commitment interview. In this interview the agency manager extends
an invitation and a promise that joining his agency group is the path to a
rewarding career. Agency manager may have many examples to relate
about successful agents who made it under his leadership.
Selling the Company: Let us now come to the third item to be sold- the
company. One way of doing so has been to lure agents through higher
material incentives and commissions. For a new agent prime question is
the companys acceptability and whether it can be sold to members of
the public. The other new concern of any newcomer would be about the
company environment & culture.

28
 ANALYSIS PART
6.1 How to find out prospect for recruitment (METHODS)?
For an individual whole market is divided into three segments (Fig-6a):

Fig-6a
Now problem is that how to enter into these markets?
Natural market: is your own market, every individual have its own contact
base. In this market he/she can approaches directly. Size & potentiality of
this market is completely depends upon the relationship, behavior, attitude
& popularity of an individual.
Referral market: Insurance business is highly depended on referral market.
One has to develop the habit of taking reference from other in order to
penetrate more & more into the market. For example an individual has 10
contact base, and again he can get at least 2 reference from each of them,
further he can get more reference from them & so on forming a chain
reaction pattern.(Fig-6b).

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 Fig-6b
So market is there, only there is need to work out.

But main problem is that how to enter into the Cold Market or completely
unknown market?
From this project work I found that market survey technique is the best way to
find out prospect from cold or unknown market.
In the previous chapter (5.3) we have seen the most important attribute to look
for is fire in the belly a hunger to excel in the agency profession.
With the help of Market Survey Tool we can know the NEED &
PREFERENCE for ones supplementary income and also it will help us to get
data base. By knowing the need & preference of an individual one can easily
target the individual for recruitment.

30
I have done market survey of around 150 people randomly at Jabalpur and its
nearby place with the help of market survey tool.
Findings: TABLE 6-i
Happy with their Need for Preference for supplementary income
current job & supplementary
financial situation. Income
As a life Multilevel Part time Tuitions Others
Yes NO Yes May be NO marketing
insurance business
agent.

71 79 69 67 14 21 7 52 47 23

HAPPY WITH CURRENT JOB & FINANCIAL

SITUATION

YES, 71, 47%

YES
NO

NO, 79, 53%

Fig- 6c

Interpretation :
From the above pie chart we can see that 53% people are not happy with their
current job/financial situation, because of increasing cost of day to day life &
limited source of income. So there is tremendous opportunity in the market for
targeting people to recruit as an insurance advisor by showing them career &
unlimited earning opportunities in the business of insurance.
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TO FIND OUT THE POTENTIAL SEGMENTS FOR
RECRUITMENT:
Market segmentation is the process of dividing the total market into relatively
distinct homogeneous sub-groups of consumers with similar needs or
characteristics that lead them to respond in similar ways to a particular
marketing program.
Bases for Segmentation: A segmentation variable is a characteristic of
individuals, groups or organisations that marketers use to divide and create
segments of the total market.
Segmentation descriptors fall under four major categories and include
geographic variables, demographic variables, psychographic variables,
and behavioral variables.
Geographic variables focus on where the customers are located.
Demographic variables identify who the target customers are.
Psychographic variables refer to lifestyle and values.
Behavioral variables identify benefits customers seek, and product usage
rates.

32
With the help of market survey tool I have segmented the market mainly on
the basis of demographic & geographic, for recruitment.
Demographic basis:

Occupation
Table 6-ii (a)
Occupation Happy with current job/financial
situation.
Yes No TOTAL
Teachers 8 7 15
Advocates 6 9 15
Doctors 14 1 15
Pvt.-service 7 8 15
Govt.-service 8 7 15
Businessmen 13 2 15
Salesperson (M.R, 2 13 15
Sahara Agent etc.)

33
 Students 6 9 15
House wife 3 12 15
professional financial 4 11 15
adviser ( e.g. C.As)
TOTAL 71 79 150

14
14 13 13
12
12 11

10 9 9
8 8 8
8 7 7 7
6 6
6
4
4 3
2 2 YES
2 1
NO
0

OCCUPATION
Fig. 6f

HAPPY WITH THEIR CURREN JOB/FINANCIAL SITUATION

Data Interpretation :

From the above figure (Fig. 6f), we can see that 13 salesperson out of 15
(86.66%) are not happy with their current job/ financial situation followed by
12 housewives (80%), 11 professional financial advisors (73.33%), 9
advocates & students (60%), 8 Pvt. Service holder (53.33%), and 7 teachers
& Govt. service holder (46.66%).
On the other hand businessmen (86.67%) & doctors (93.34%) are happy with
their job/financial situation. Therefore, we can say that they cannot be a
potential segment for recruitment.

34
 Table 6 ii (b)

Occupation Need for supplementary need

Yes May be No TOTAL
Teachers 7 6 2 15
Advocates 9 6 0 15
Doctors 1 9 5 15
Pvt.-service 5 9 1 15
Govt.-service 7 8 0 15
Businessmen 2 11 2 15
Salesperson (M.R, 13 2 0 15
Sahara Agent etc.)

Students 9 6 0 15
House wife 12 2 1 15
professional financial 4 8 3 15
adviser ( e.g. C.As)
TOTAL 69 67 14 150

35
 14 13
12
12 11

10 9 9 9 9
8 8
8 7 7
6 6 6
6 5 5
4
YES
4 3
2 2 2 2 2 MAY BE
2 1 1 1
0 0 0 0 NO
0

Fig. 6g
OCCUPATION

NEED FOR SUPPLEMENTARY INCOME

Data Interpretation :

From the above graph we can see that 13 salesperson out of 15 says there is
need for supplement source of income i.e. 86.66%.
Again 12 housewives out of 15 i.e. 80% says there is need for supplementary
source of income, followed by 9 students & advocates (60%), 7 teachers &
Govt. employee (46.66%), and 5 Pvt.-Service holders (33.33%).
Only 1 doctor & 2 businessmen out of 15 i.e. 6.66% & 13.33% respectively,
say there is need for supplementary source of income.

36
 Table 6 ii (c)

Occupation Preference for supplementary income.

As a life Multilevel Part time Tuitions Others TOTAL
insurance marketing business
agent
Teachers 1 0 2 12 0 15
Advocates 2 0 8 3 2 15
Doctors 0 0 0 4 11 15
Pvt.-service 0 0 9 5 1 15
Govt.-service 0 0 10 5 0 15
Businessmen 0 0 10 0 5 15
Salesperson 4 7 4 0 0 15

Students 3 0 2 10 0 15
House wife 4 0 5 6 0 15
professional 7 0 2 2 4 15
financial
adviser ( e.g.
C.As)
TOTAL 21 7 52 47 23 150

37
 16
0 0 0 0 0
1
14 2
4 4
5 5
12 6
3 5

10 0 10 2
11
12
8 2
Others
5
6 8 Tuitions
10 10
9 Part time business
4 2
7
Multilevel marketing
2 2 4 4 4
3 As a life insurance agent
2
1
0 0 0 0 0

OCCUPATION
Fig. 6h
PREFERENCE FOR SUPPLEMENTARY INCOME

Data Interpretation :

From the above graph we can see that 7 out of 15 i.e. 46.66% professional
financial advisers like CAs directly prefer life insurance agent is the best way
to supplement ones income, followed by salespersons & housewives
(26.67%), students (20%), advocates (13.33%), & teachers (6.67%).
While no, doctors, businessmen, Pvt.-service & Govt.-service holder preferred
life insurance agent is the best way to supplements ones income.

38
 Table 6 iii (a)

Age group
Age group Happy with current job/financial
situation.
Yes No TOTAL
18-25 15 27 42
26-35 21 25 46
36-45 25 15 40
46-55 10 12 22
TOTAL 71 79 150

30 27
25 25
25 21
20
15 15
15 12
10 YES
10 NO

0
18-25 26-35 36-45 46-55

AGE GROUP

HAPPY WITH THEIR CURRENT JOB/FINANCIAL POSITION Fig. 6i

Data Interpretation: From the above graph we can see that 27 people out of
42 i.e. 64.3% between age group 18-25 are not happy with their current
job/financial situations followed by age group 46-55 (54.5%), 26-35
(54.3%), & 36-45 (37.5%).

39
 Table 6 iii (b)

Age group Need for supplementary need TOTAL

Yes May be No

18-25 25 16 1 42
26-35 18 27 1 46
36-45 21 15 4 40
46-56 5 9 8 22
TOTAL 69 67 14 150

30 27
25
25
21
20 18
16
15
15 Yes
9 May be
10 8
5 No
4
5
1 1
0
18-25 26-35 36-45 46-56

AGE GROUP
Fig. 6j

NEED FOR SUPPLEMENTARY INCOME

Data Interpretation: From the above graph we can see that 25 people out of
42 (59.5%) between age group 18-25 says there is need for supplementary
source of income, followed by age group 36-45 (52.5%), 26-35 (39.1%)
and 46-56 (22.7%). Again we can see that 8 people out of 22 (36%)
between age group 46-56 saysTable
that6 there
iii (c) is no need for supplementary
source of income.
Age Preference for supplementary income.

40
 group As a life Multilevel Part time Tuitions Others TOTAL
insurance agent marketing business
18-25 6 4 9 18 5 42
26-35 10 3 18 12 3 46
36-45 5 0 16 15 4 40
46-56 0 0 9 2 11 22
TOTAL 21 7 52 47 23 150

50
3
40 5 4
12
Others
30 18 15 Tuitions
18 Part time business
20
11 Multilevel marketing
9 16
3 2 As a life insurance agent
10 4
10 0 9
6 5
0 0
18-25 26-35 36-45 46-56
AGE GROUP
Fig. 6k

PREFERENCE FOR SUPPLEMENTARY INCOME

Data Interpretation: Form the above graph (Fig. 6k) we can see that 10
people out of 46 (21.7%) between age group 26-35 prefers life insurance
agent is the best way to supplements ones income, followed by the age
group 18-25 (14.2%) and age group 36-45 (12.5%).

41
 Table 6 IV (a)
Geographic Basis:

Region Happy with current job/financial

situation.
Yes No TOTAL
Sub-Urban 31 45 76
Urban 40 34 74
TOTAL 71 79 150

Table 6 IV (b)

Region Need for supplementary need

Yes May be No TOTAL
Sub-Urban 40 32 4 76
Urban 28 36 10 74
TOTAL 68 67 14 150

Table 6 IV (c)

Region Preference for supplementary income.

As a life Multilevel Part time Tuitions Others TOTAL

insurance marketing business
agent
Sub-Urban 15 1 30 22 8 76
Urban 6 6 22 25 15 74
TOTAL 21 7 52 47 23 150

42
 40
50 45 40 36
40 35 32
40 34 28
31 30
30 25
Yes
Yes 20
20
May be
15 10
No
10 No
10
4
0 5
0
Sub-Urban Urban

REGION REGION

Fig. 6 l HAPPY WITH THEIR CURRENT JOB/ Fig. 6m NEED FOR

SUPPLEMENTARY INCOME

FINANCIAL POSITION

30
30
25
25 22 22
As a life insurance agent
20
15 15 Multilevel marketing
15 Part time business

8 Tuitions
10 6 6
Others
5 1
0
Sub-Urban REGION Urban

Fig. 6n PREFERENCE FPR SUPPLEMENTARY INCOME

43
 Data Interpretation:

From the above graph (Fig. 6 l) we can see that in the Sub-Urban areas, 45
peoples out of 76 (59.2%) are unhappy with their current job/financial
situation. While in urban area it is around 45.9%.
Again need for supplementary source of income (Fig. 6m) is higher in Sub-
Urban areas, i.e. 52.6%, while in urban areas it is 37.8%.
Further we can see that preference for supplementary source of income as life
insurance advisors is more in Sub-Urban areas than urban areas, varying from
19.7% to 8.12%.

44
 CONCLUSION PART
Conclusion:
It is believed that it is a tough task to find out a quality prospect for insurance
advisors recruitment, as every individual has its limited contact base. We
have seen in the above analysis that with the help of references & market
survey tool an individual can enter into cold market easily, and then extend up
to no limit.

The findings presented below will now bring the picture more clearly in view
about the above analysis and its outcome.
Findings;

On the basis of occupation: Table -7A

Occupation Not happy with their Need for supplementary Preference for
current job/ financial source of income. (%) supplementary source
situation. (%) of income (as a life
insurance agent). (%)
Professional 73.33% 26.67% 46.66%
financial advisors
Salesperson 86.66% 86.66% 26.67%
Housewives 80% 80% 26.7%
Students 60% 60% 20%
Advocates 60% 60% 13.33%
Teachers 46.66% 46.66% 6.67%
Pvt. Service 53.33% 33.33% 0%
Govt. Service 46.66% 46.66% 0%
Businessmen 13.33% 13.33% 0%
Doctors 6.66% 6.66% 0%

From the above table we can conclude that professional financial advisors,
salesperson and housewives are the most potential segments of people for
recruitment followed by the students, advocates & teachers.

45
 Though only 26.67% of professional financial advisers say there is a
need for supplementary source of income, but 46.66% of professional
financial advisers prefer to become life insurance agent, because
professional financial advisers are the best person who can advise
people, related to their investment decisions.
Again a salesperson is a another good segment of people for targeting
recruitment, because their need for income is quite higher (86.66%) &
even they are trained enough in terms of sales.

Apart from these two segments housewives is also a good segment for
targeting recruitment, because their need & preference (as a life
insurance agent) is too high compare to the rest of segments, because
women can understand personal and family financial problems and are
able to interact on an emotional level.

Further we can see that students is also a good segment for recruitment,
because their need for income is also high & even 20% of students
prefer life insurance agent is the best way to supplements ones income,
because every students needs money for their personal expense.

Advocates and teachers can also be a target segment for recruitment,

because their need for income is also quite high & even 13.33% of
advocates and 6.67% of teachers prefer life insurance agent is the best
way to supplements ones income, but comparatively these are the less
potential segments compare to other identified segments.

Businessmen & doctors are not a potential segment for targeting

recruitment, because their need for supplementary source of income is
very low & also most of them are happy with their current job/financial
situation.

46
 Pvt. service holder & Govt. service holders are also not a potential
segment for targeting recruitment, though their need for income is
present , but they dont prefer life insurance agent is the best way to
supplements ones income, mainly because of ego problems & time
constraint.

On the basis of Age Group : Table- 7B

Age Not happy with their Need for Preference for supplementary
groups current job/ financial supplementary source source of income (as a life
situation. (%) of income. (%) insurance agent). (%)

18-25 64.3% 59.5% 14.2%

26-35 54.3% 39.1% 21.7%
36-45 37.5% 52.5% 12.5%
46-55 54.5% 0% 0%

From the above table we can conclude that people between the age group of
18-25 & 26-35 are the most potential segments for recruitment, followed by
the age group of 36-45.

64.3% of People between the age group of 18-25 are not happy
with their current job/financial situation & also need for
supplementary source of income is 59.5%. In this group most of
them are at struggling stage of their life and are very energetic, so
it can be a target segment for recruitment.

Again, people between the age group of 26-35 are a target segment
for recruitment because of their increasing responsibility towards
family.

People between the age group of 36-45 is also a good segment for
recruitment, but comparatively less than other identified segments
47
 because at this stage of life most of them are settled & often their
child also grows up.

People between the age group of 46-55 is not a potential segment,

though the 54.5% of people are not happy with their current
job/financial situation, but their need and preference for
supplementary source of income is negligible because of their age
factor.

On the basis of Geographic Segmentation; Table 7C

Region Not happy with their Need for Preference for supplementary
current job/ financial supplementary source source of income (as a life
situation. (%) of income. (%) insurance agent). (%)

Sub- 59.2% 52.6% 19.7%

Urban
Urban 45.9% 37.8% 8.12%

Thus from the above figures we can say that in Sub-Urban areas are the most
potential segment for recruitment than the urban areas, because need for
income is there, and again there is a limited source of income opportunity.
Further we know that in the Sub-Urban & rural areas there is tremendous
potentiality for the business of insurance, because of the less penetration of
insurance.

48
7.2 Suggestions & Recommendations:
Professional financial advisors like CAs, Tax consultant, etc. is the most
potential segment of people for recruitment, BAs should target this
segment of people to get quality recruitment.

Salesmen like Sahara agents, MR etc. is also a very good segment of

people for recruitment, and BAs should target this segment of people to
get quality and even in quantity.

Housewives between the age group of 35-50 can be a target segment for
recruitment, BAs should target this segment of people to get leader.

Students can be one of the target segment, BAs should target this
segment continuously, because students can generally work for short
term only.

Teachers & advocates can be one of the potential segments, for these
BAs should target this segment by conducting homogeneous group
Career Orientation Presentation (COP).

Generally Govt.-service & Pvt.-service holders does not prefers to

become life insurance agent, but there is a need for supplementary
source of income is quite higher, for targeting this segment of people
BAs should give 1:1 COP.

Doctors are not a target segment for recruitment.

People between the age group of 18-25, 26-35, and 36-45 are the most
potential segment for recruitment.

49
 People between the age group of 46-55 can be a target segment, though
the preference to become a life insurance agent is low, but need for
income is quit higher, to target this segment BAs should give effective
COP & make them realize that they are still young and energetic, and
can work effectively.
Sub-Urban areas are the most potential segment for recruitment than the
urban areas, BAs should target more & more on Sub-Urban to get
quality recruitment.

BSP model of the company is the best way to target the Sub-Urban &
Rural area.

50
 QUESTIONNAIRES

MARKET SURVEY AWARENESS REGARDING

SUPPLEMENTARY INCOME NEEDS

1. By how much population grown in the last two decades?

Around 15 Crores Around 20 Crores Around 35 Crores Around 40 Crores

2. In the last two decades, by how much has the workforce in the private sector
grown?
2 lakhs 5 lakhs 10 lakhs 15 lakhs

3. Approximately how many people are currently registered with employment

exchange in search of a job?
Around 1 Crores Around 2 Crores Around 3 Crores Around 4 Crores

4. In todays scenario, supplementing your income is critical. Which in your mind

is a preferred opportunity to supplement ones income?
Agent For Post Office Deposits Life Insurance Agent Multi-Level Marketing
Tuitions Part- Time Business Trading And Investment In Stocks.
5. What is your current occupation?
Professional Service (Pvt.) Service (Public) Self-Employed
any other (please specify)____________________________________________
6. Are you happy with your current occupation?
Yes No
7. Would you be interested in a source of supplementary income that offers
flexible working hours & unlimited earning opportunities?
Yes No Maybe

51
YOUR PERSONAL DETAILS

Name:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_____________________________________
Age: _ _ _ _ _ Marital status:_ _ _ _ _ _ _ _ _ Occupation:_ _ _ _ _ _ _ _ _ _
Telephone:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Mobile:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Tear away & hand over to respondent as giveaway

The need for supplement ones income is ever increasing.

For more information on how to supplement your income, please contact:

Name & Tel. No.:

52
 REFERENCES
8. WEBSITES REFERRED

www.tata-aig-life.com
www.irdaindia.org
www.thehindubusinessline.com
www.nurcmedianext.com

9. BOOK REFERRED
Managing life insurance By Shashidharan K. Kutty.
Books Published By Insurance Institute of India.
Kotler & Keller, Marketing Management, PHI, 13th Edition.
Human Resource Management By K. Aswathappa; Publisher-
HPH, Tata McGraw-Hill Edition-5.
Services Marketing; LPE; Pearson Education; By Christopher H.

Lovelock, Jochen Wirtz.

10. MAGAZINE

Insurance World.
The Outlook Money.

11. BHARTI AXAS MATERIAL

53
 GLOSSARY
i. AML ---- Anti Money Laundering

ii. BA ---- Business Associate.

iii. BSP ---- Business Service Partner.

iv. COP ---- Career Orientation Presentation.

v. FYP ---- First Year Premium.

vi. L1, L2, L3 ---- Level-1, Level-2, Level-3 Training.

vii. MBA ---- Managerial Business Associate.

viii. MCG ---- Market Conduct Guidelines.

ix. NLAs ---- Newly Licensed Advisors.

x. PBA ---- Provisional Business Associate.

xi. SBA ---- Senior Business Associate.

xii. TALIC ---- Bharti Axa Insurance Company Ltd.

xiii. ULIP ---- Unit Linked Insurance Plan.

54