A MINOR PROJECT REPORT ON

CHANNEL DEVELOPMENT AT MAX NEW YORK LIFE

{Submitted in partial fulfillment os Bachelor of Business Administration (2009-2012)}

Supervisor : Ms. Latika Arora

Submitted by: Yatin Arora BBA [GEN]

DELHI INSTITUTE OF RURAL DEVELOPMENT New Delhi

[Affiliated to Guru Gobind Singh Indraprastha University]

DECLARATION

I, YATIN ARORA pursuing BBA from DIRD hereby declare that I have completed this project on the following topic:

CHANNEL DEVELOPMENT AT MAX NEW YORK LIFE

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

Signature of student

ACKNOWLEDGEMENT

It is indeed of great moment to pleasure to express our senses of profound gratitude & indebtedness to all the people who have been instrumental in making it a rich experience. We found it to be a challenging project that gave us a real practical

exposure to the corporate world and it is almost impossible to do the same without the guidance of peoples around us. It gives us immense pleasure to acknowledge CHANNEL DEVELOPMENT AT MAX NEW YORK LIFE , who have been nice enough to give us a chance to do our project and providing us wonderful support throughout our project.

TO WHOM IT MAY CONCERN

This project report entitled (A channel development of MNYL) which is being submitted by me to the Guru Gobind Singh Indraprastha University, for the degree of B.B.A. This work has been carried out under the supervision and guidance of Ms. Latika Arora.

I here by declare that to the best of my knowledge, the work included in this project report has not been submitted either in part or in full, to this or any other university for the award of degree or diploma.

Dr.A.K Chaudhary

(Director)

Ms. Latika Arora

(Project Guide)

EXECUTIVE SUMMARY

Indian insurance industry is emerging rapidly after year 2000. To survive in this highly competitive scenario, managers are being pressured to improve quality, recruit quality and skilled people and eliminate inefficiency. The collective efforts of the employer, managers and other relative people assume relevance in this context. And this is where marketing management and human resources play important role. Recruitment is very important in todays scenario. But still it is ignored and considered as a secondary aspect. In case of insurance industry recruitment only decide success or failure of company. I have made an attempt to study this aspect of Insurance industry in my project. In this project, recruitment for developing channel at Max New York Life is considered. I have tried to find out how exactly recruitment is very important for this firm as well as this industry, which are the different strategies firm use to recruit quality people and so on. It is more qualitative rather than a quantitative data. To get knowledge of above question and to fulfill the requirements for my project on Channel Development At Max New York Life, I have worked in MNYL and searched some internet sites. On the basis of my study, I have included following topics as the important aspect of Channel Development At Max New York Life.

Insurance industry introduction.

Strategies for recruitment. Eligibility of recruitment and so on. In this project I have tried to give attention to all the above topics and study them in depth. But I would still like to receive all sorts feedback to enhance my knowledge on the topics as far as this industry is concern.

TABLE OF CONTENTS.

Executive summary CHAPTER 1: INTRODUCTION 1.1 ABOUT PROJECT 1.2 OBJECTIVES OF THE STUDY 1.3 SCOPE OF THE STUDY CHAPTER 2: COMPANY PROFILE 2.1 ABOUT CHANNEL DEVELOPMENT 2.2 COMPANY PROFILE 2.3 ABOUT INSURANCE INDUSTRY 2.4 ABOUT MAX NEW YORK LIFE CHAPTER 3: CHANNEL DEVELOPMENT STRATEGIES 3.1 ELIGIBILITY MODEL 3.2 DEVELOPMENT STRATEGIES 3.3 SCRIPTS AND OBJECTION HANDLING CHAPTER 4: CHANNEL DEVELOPMENT PROCESS 4.1 NAME GATHERING IN-P200 4.2 SHORTLISTING 4.3 APPROACHING 4.4 INITIAL SCREENING 4.5 NAT 4.6 CAREER SEMINAR 4.7 CAREER INTERVIEW 4.8 FCS 4.9 CONTRACT CHAPTER 5: CONCLUSION 5.1 CONCLUSION 5.2 BIBLIOGRAPHY
1 2 4 5 6 7 9 17 26 40 41 44 49 51 53 54 54 54 55 55 56 56 56 58 59 60

CHAPTER-1 INTRODUCTION

1.1 ABOUT PROJECT

The main objective of the Channel Development is to recruit quality agent advisors (AA) for the company for providing life Insurance solutions to the customers. AA plays a vital role in the growth of company with respect of companys earnings as well as they create value for the organization after achieving some milestones. AA are integral part of the team and sales manager assigned to them help them to groom them in terms of personality development, selling skills and handling objections of customers. Benefits of Becoming AA for MNYL:

Companys Expectation from AA:

Regular input activity. Follow the sales process. Achieve sales targets. Attend training programme. Participate in weekly reviews.

Follow the MNYL ethics and business standards policy.

1.2 OBJECTIVES OF THE STUDY

- Customer and potential agents perception about insurance as a product category. -To study the existing compensation for agents of max . -To study the existing channel development process of MNYL.

1.3 SCOPE OF THE STUDY

A big boom has been witness in insurance industry in recent times. A large number of newplayer have entered the market and are trying to gain market share in this rapidly improving market. In recent times also max has the highest employment. It is the seventh highest insurance company in india. In insurance factor, a person earn huge amount of money.

Chapter-2 COMPANY PROFILE

2.1ABOUT CHANNEL DEVELOPMENT

Defining a Channel Development Strategy is completely relative. There is no right or wrong strategy. A successful strategy could be one that restricts channel development to only one channel type, or it might be a strategy where all potential content providers accept the channel type recommendation of a uPortal committee whose task is to clearly identify the best channel type for any given application. Both solutions are perfectly acceptable. Reality teaches that system implementation expectations have two extremes. One extreme includes the people depending on the functionality of the deliverable; they want it instantly and for free. On the other side of the extreme, people want it done in the most efficient and flexible means available, they want unlimited funding with no clearly-defined deadline. This lesson produces no useful information. For any given problem, there is a window of opportunity and an available amount of resources with which a solution can be implemented. An understanding of the problem, the organization and its available resources is required in order to begin the evaluation process. The result is the definition of a mechanism to be employed to achieve resolution. Organizations with limited resources and a narrow timeframe will most likely adopt channels that can be developed with little effort, sacrificing enhanced features and possibly performance in order to meet their objectives within constraints. Others with a larger time window and less funding restrictions can afford a more complex approach to channel development that could lead to a much more feature-rich portal experience. The likely scenario, though, would be a combination of these types. Installation of uPortal is not a minor undertaking. This fact has a significant impact on Channel Development Strategies. Organizations with existing uPortal implementations do not bear the burden of start-up when deciding which channel type to deploy. Those who must factor implementation into their designs are at a slight disadvantage, resulting in a less functional approach. Steps should be taken to identify those "channels" which are essential and those which can be deferred until well after implementation of uPortal Simple critical path analysis will ease much of the burden of deployment. Existing infrastructure within an organization must also be considered when defining a development strategy. Those with central authentication/authorization mechanisms in place will find it easier to implement distributed processing designs than those without these services. Lack of centralized services may force the strategy decision toward a more complex approach and may negate the possibility of channels as an interactive solution. More complex solutions will tend to push

processes more toward the uPortal host, introducing performance concerns that can only be overcome through efficient design and coding. More complex solutions require a greater level of staff competency that is a scarce commodity for some. Acknowledging the observations above, the remainder of this document consists of a scale of channel types and a matrix of information by channel type. The scale is an attempt to define channel types based on the level of difficulty they present in implementation. However it might be done, the scale is always inaccurate due to opinion, which differs from individual to individual. The matrix presents channel types as defined by the scale and attempts to provide non-biased Pros and Cons for each type. Wherever possible, each channel type in the matrix also contains links to additional resources to assist with their respective evaluations.

2.2COMPANY PROFILE
Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a Fortune 100 company and Max India Limited, one of India's leading multibusiness corporations. The company has positioned itself on the quality platform. In line with its vision to be the most admired life insurance company in India, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. The strategy is to establish itself as a trusted life insurance specialist through a quality approach to business. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's paid up capital is Rs. 907.4 crore, which is more than the norm laid down by IRDA. Max New York Life has identified individual agents as its primary channel of distribution. The Company places a lot of emphasis on its selection process, which comprises four stages - screening, psychometric test, career seminar and final

interview. The agent advisors are trained in-house to ensure optimal control on quality of training. Max New York Life invests significantly in its training programme and each agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to sell in the marketplace. Training is a continuous process for agents at Max New York Life and ensures development of skills and knowledge through a structured programme spread over 500 hours in two years. This focus on continuous quality training has resulted in the company having amongst the highest agent pass rate in IRDA examinations and the agents have the highest productivity among private life insurers. 337 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2007. MDRT is an exclusive congregation of the worlds top selling insurance agents and is internationally recognized as the standard of excellence in the life insurance business. Having set a best in class agency distribution model in place, the company is spearheading a major thrust into additional distribution channels to further grow its business. The company is using a five-pronged strategy to pursue alternative channels of distribution. These include the franchisee model, rural business, direct sales force involving group insurance and telemarketing opportunities, bank assurance and corporate alliances. Max New York Life offers a suite of flexible products. It now has 43 life insurance products and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need.

ABOUT MAX NEW YORK LIFE

Max New York Life Insurance Company had started to build the business in 1840 and a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world with more than USD$215 billion assets with more than USD$215 billion assets. According to Moody's, "New York Life's rating reflects the company's good quality investment portfolio. Headquartered in New York City, New York Lifes family of companies offer life insurance, annuities and long-term care insurance. New York Life Investment Management LLC provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds. The mission of New York Life is to maintain its superior 'financial strength', adhere to the highest standards of 'integrity' and demonstrate 'humanity' by treating its customers, agents and employees with compassion, consideration and respect. As a leader in the insurance industry, New York Life continues to bring to its operations new management concepts, advanced technologies, new distribution and training systems and innovative insurance products.

Key Dates:
1841: Nautilus Insurance Company is chartered to sell fire and marine

insurance. 1849: A product shift is marked by name change to New-York Life Insurance Company. 1868: The company opens its first international office. 1892: A branch office system is implemented by company president John A. McCall. 1905: New York state investigation of insurance industry results in new regulations subsequently fought by New York Life. 1929: The company moves to Madison Avenue corporate headquarters. 1951: The first group insurance policies are issued. 1969: A separate entity is created to manage growing commercial and residential real estate holdings. 1984: The company enters the financial services market. 1987: The company purchases one of the largest healthcare companies in the nation. 1996: The company sells its healthcare operations. 2000: The company brings all asset management businesses under one roof.

Company History of New York Life Insurance

New York Life Insurance Company is one of the largest insurance companies in the United States and the world. Ranked as a Fortune 100 company, New York Life has provided its policyholders with financial security and investment opportunities since 1841. As a mutual company, New York Life is owned solely by its policyholders, to whom it pays annual dividends and provides long-term coverage on a wide range of insurance products. The company prospered during its first 100 years of operations, as the growth of the nation's population and economy created an expanding market for life insurance. Since World War II New York Life has maintained its competitive edge by diversification. Building the Business: 1840s-50s In 1840 New York State passed a law allowing a married woman to insure her husband's life with immunity from having the benefits seized by his creditors. Such legislation recognized the use of life insurance in a developing industrial economy and widened its potential market beyond wealthy speculators. New York Life has its origins in a charter granted by the New York state legislature to Nautilus Insurance Company in 1841, for the sale of fire and marine insurance. The company began issuing policies in April 1845 and soon decided to jettison its fire and marine business in order to concentrate on life insurance. By

1849 the company was so securely established in this new business that it petitioned the state legislature and had its name changed to New-York Life Insurance Company. Civil War Risks and Postwar Expansion: 1860s-90s The Civil War presented the company with its first major crisis, since it had developed a sizable southern business. President Abraham Lincoln's prohibition of commerce with the Confederate states during the war cut off communication between the home office and its southern policyholders, creating a host of problems, including lapsed payments and unpaid claims. The company compensated for these losses, however, by issuing policies to soldiers and civilians involved in combat. One of the few companies to take on such war risks, NewYork Life managed continued growth despite itssouthern losses. In fact, the company sold more than half of the 6,500 new life insurance policies issued in New York City in 1862. After the war, New-York Life expanded quickly with the nation's booming economy. The company recovered its southern business by paying benefits on death claims left unsettled during the war and by allowing former customers to renew their lapsed policies. New-York Life also became an international name during this era, opening offices in Canada in 1868, Great Britain in 1870, Paris in 1884, Berlin in 1885, Vienna in 1887, Amsterdam in 1891, and Budapest in 1894. by 1900 its growth in sales made it one of the nation's three biggest mutual insurance companies, along with Mutual Life Insurance Company and Equitable Life Assurance Society. World Conditions Creating Volatile Environment: 1900s- 40s New-York Life prepared early for World War I, selling securities and borrowing in order to increase cash reserves and meet wartime obligations. During the war the company also issued war-risk policies. The war's greatest challenges came in its aftershocks. The worldwide influenza epidemic of 1918 and 1919 hit the United States with unexpected ferocity: death claims resulted in a $10 million loss for the company, almost twice the cost of benefits paid during the war. During the Russian Revolution of 1917 the company's assets in Moscow were seized. Soon after, New York Life began its withdrawal from Europe, a reaction to unfriendly regulation and a volatile world economy. Industry on the Rise: 1950s-70s Recognizing the need for housing in the postwar nation, New York Life began moving its assets out of wartime government securities and into real estate development in the late 1940s. The company established a mortgage-loan program for veterans in 1946 and also invested in residential housing developments in Queens and Manhattan and in Chicago and Princeton, New Jersey, during the 1940s and 1950s. In 1969 it established the Nautilus Realty Corporation to handle its commercial and residential real estate operations, which proved to be of

increasing importance as inflation in the 1970s and 1980s made other investments less desirable. In the 1960s New York Life introduced the family insurance plan, a policy of comprehensive family coverage. When economic recession and inflation caused the lapse rate on new policies to increase in the early 1970s, the company created an insurance conservation office to study ways of better serving--and thus keeping customers. Diversification Prompted by Industry Downturn: 1980s Another major growth area for New York Life during the 1980s was healthcare. The spiraling cost of medical care in the 1970s and 1980s strengthened the appeal of insurance as a security against long-term illness. In 1987 New York Life purchased controlling interest in Sanus Corporation Health Systems, one of the largest healthcare companies in the nation. At the time, New York Life's greatest concern in the healthcare field was AIDS. Diversification into real estate development, mutual funds, partnership investments, annuities and pensions, and healthcare preserved New York Life's market position, and it entered the 1990s ready to take advantage of expanding demand for these new products. Reacting to the Changing Marketplaces: 1990s New York Life reorganized its management structure in 1992. A team of specialists from areas such as service, legal, marketing, and actuarial led by a product manager could move new offerings through the pipeline and out into the market more quickly than in the past. In 1993, New York Life rolled out a variable annuity policy and in 1994 its first variable universal life policy. To tap into a market of more conservative investors, the company began selling a variable annuity product through the banking system in1995. New York Life sold its NYL Care Health Plans subsidiary in 1998. Preparing for the Future: 2000 and Beyond The creation of New York Life Investment Management LLC, in 2000, brought all of the company's $115 billion in assets under management into one subsidiary. New York Life followed a trend in the insurance industry-- distancing the financial products from traditional insurance products-- intended to improve competitive strength. New York Life prepared for another venture in the finance end of business by seeking and receiving approval to operate a federally insured thrift, a move made possible by changes in federal regulations during the late 1990s. The company first planned to offer trusts and individual retirement accounts. The trust operation gave New York Life the ability to manage insurance money distributions, a capability it lacked to this point. A matter related to its long dissolved European operation was finally resolved in 2001. New York Life settled claims by the survivors of ethnic Armenians killed by

Turkish soldiers back in World War I. A 1999 class-action lawsuit led to legislation allowing Armenians living in California to pursue claims against insurers for unpaid benefits.

2.3 ABOUT THE INSURANCE SECTOR IN INDIA

Insurance sector is an opportunity for India. This business is growing at the rate of 18-22 per cent annually. Presently it covers market of RS.450 billion. Together with banking sector it contributes about 7% to GDP. Gross premium collection is about 2% of GDP. Still 80% of Indian population is without life insurance. This is an indicator that growth potential for the insurance sector is immense. Insurance sector contribute a lot in economic development. It provides long term fund for infrastructure development. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. There are two legislations that govern the sector-

The Insurance Act- 1938

The IRDA Act- 1999.

Historical Perspective In India

In 1818 it was conceived as a means to provide for English Widows. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and nonIndian lives. The Oriental Assurance Company was established in 1880. Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that it would create much needed funds for rapid industrialization.

Important milestones in the life insurance business in India:

Insurance Sector Reforms

In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognising that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included: i) Structure: Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate. ii) Competition: Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the sector. No Company should deal in both Life and

General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state. iii) Regulatory Body: The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance- a part of the Finance Ministry- should be made independent iv) Investments: Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time) v) Customer Service: LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body- The Insurance Regulatory and Development Authority. Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance

companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products.

Present Scenario
The Government of India liberalised the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity cap for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 15 life insurance companies have been registered. A host of private Insurance companies operating in life segments have started selling their insurance policies since 2001. Table shows the current market players in the life Insurance Industry (Source IRDA).

Sr. No.

Name of the Company

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Bajaj Allianz Life Insurance Co. Limited Birla Sun Life Insurance Co. Ltd HDFC Standard Life Insurance Co. Ltd ICICI Prudential Life Insurance Co. Ltd ING Vysya Life Insurance Co. Ltd. Life Insurance Corporation of India Max New York Life Insurance Co. Ltd Met Life India Insurance Co. Pvt. Ltd. Kotak Mahindra Old Mutual Life Insurance Ltd. SBI Life Insurance Co. Ltd. Tata AIG Life Insurance Co. Ltd. Reliance Life Insurance Co. Ltd. Aviva Life Insurance Co. India Pvt. Ltd. Sahara India Life Insurance Co. Ltd. Shriram Life Insurance Co. Ltd. Bharti AXA Life Insurance Co. Ltd.

Life Insurance Market Growth

The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 22 percent of the total 400 million of the insurable population. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. Life insurance business in terms of first year premium has shown a growth of more than 95% over the previous year and non life, or general insurance, is not far behind either, growing at 22% during 2009-2010.The 15 private insurers in the life insurance market have already grabbed nearly 24 percent of the market in terms of premium income. The new business premium of the 15 private players has tripled over last year. Meanwhile, state owned LIC's new premium business has fallen.

Figure shows comparison between premiums being collected by private and public limited players in year 2009 and 2010.

Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unit-linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatisation was around Rs 50,000. That has risen to about Rs 80,000. But a rejuvenated LIC is also trying to fight back to persuade new customers.

2.4 ABOUT MAX NEW YORK LIFE

Max New York Life Insurance Company Ltd. is a joint venture between New York Life and Max India Limited. New York Life is a Fortune 100 company and Max India Limited is one of India's leading multi-business corporations. The company has positioned itself on the quality platform. It has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. The strategy is to establish itself as a trusted life insurance specialist through a quality approach to business. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's paid up capital is Rs. 657 crore, which is more than the norm laid down by IRDA. Max New York Life has identified individual agents as its primary channel of distribution. The Company places a lot of emphasis on its selection process, which comprises four stages Screening, Psychometric test, Career seminar Final interview. The agent advisors are trained in-house to ensure optimal control on quality of training.

Max New York Life invests significantly in its training programme. Each agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to sell in the marketplace. Training is a continuous process for agents at Max New York Life and ensures development of skills and knowledge through a structured programme spread over 500 hours in two years. This focus on continuous quality training has resulted in the company having amongst the highest agent pass rate in IRDA examinations and the agents have the highest productivity among private life insurers. 201 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership. MDRT is an exclusive congregation of the worlds top selling insurance agents and is internationally recognized as the standard of excellence in the life insurance business. Having set a best in class agency distribution model in place, the company is spearheading a major thrust into additional distribution channels to further grow its business. The company is using a five-pronged strategy to pursue alternative channels of distribution. These include the franchisee model, rural business, direct sales force involving group insurance and telemarketing opportunities and corporate alliances. Max New York Life offers a suite of flexible products. It now has 26 life insurance products and 8 riders that can be customized to have more than 400 products.

REWARD AND RECOGNITION

1) Premium Leader Qualifying CriteriaRs. 1 Lakh AFYP in a month

Reward and Recognition- Mention in leaders Report, Lunch 2) Ten-A-Monther Qualifying CriteriaAFYP Reward and Recognition- MNYL Crystal Glass, mention in Leaders Report, Lunch. 10 applications in a month and Rs. 30,000

3) Hi-Flier Qualifying CriteriaMention in leaders Report, Lunch 4) Career Success Award Qualifying Criteria15 paid cases & Rs. 40,000 FYC at the end of month 3 Reward and Recognition- Recognition Award 5) Career Producer Award Qualifying Criteria25 paid cases & Rs. 80,000 FYC at the end of month 6 Reward and Recognition- Recognition Award 6) Career Foundation Club Qualifying Criteriafor Recruits during this period. Reward and Recognition- Attend CFC meeting to be held at Zone level 50 paid cases & Rs. 1.8 lakhs FYC in July- June 20 applications in a month

Reward and Recognition- MNYL Silver Medal, MNYL Crystal Glass,

7) Paid Case, FYC, Persistency, rider, Referral and CEIP Leader

Qualifying Criteria-

Top Agent in each category in each GO

Reward and Recognition- Recognition Plaque 8) Agent of the Year Qualifying CriteriaHighest Points in each GO

Reward and Recognition- Recognition Award 9) Centurion Qualifying Criteria100 net paid cases in a year

Reward and Recognition- Centurion Trophy

10)Paul Colgan Trophy Qualifying CriteriaHighest FYC with 100 or more paid cases and 95% Or more 13th month persistency Reward and Recognition- Recognition Trophy 11)Executive Council Qualifying CriteriaJuly 2006 to June 2007: 4,30,000 Council Credits January 07 to June 07: 1,60,000 Council Credits

40 paid cases in the Council Period. Reward and Recognition- Trip to Malaysia to attend the Executive Council Meeting.

12)MDRT (Million Dollar Round Table) Qualifying CriteriaMDRT FYC Rs. 7,19,800 Premium Rs.14,39,600

Reward and Recognition- MDRT dues for all qualifiers. Top 35 by FYC will Bear domestic travel and visa costs. Next 15 will bear Registration fees, domestic travel and visa costs. Rest All will bear international airfare, domestic travel and Visa costs. 13)CEOS Council Qualifying CriteriaCredits Jan 2007 to June 2007: 3,20,000 Council Credits Reward and Recognition- Trip to Amsterdam to attend the CEO Council meeting. July 2006 to June 2007: 8,00,000 Council

PRODUCTS OF MNYL

 Whole Life Plans Unit Linked Insurance Plans Endowment Plans Children Plan Money Back Plans Pension Plans Health & Accident Related Riders

Vision
To become the most admired life Insurance Company in India.

Mission
To become one of the top quartile life Insurance companies in India. Be a national player. Be the brand of the first Choice. Be the Employer of the Choice. Become principal of choice for agents.

Values
This vision to become India's most admired life insurance company will be realized through our unique set of values, which are as follows:

Achievements
First life insurance Company in India to have IS0 9001:2000 certifications. Top five most respected private life insurance in India according to Business World survey. Continuous presence in Top 50 MDRT global list.

CSR
Max New York Life has been instrumental in changing the paradigm of life insurance in India. It is the first life insurance company in India to introduce cause related marketing. Children are at the very heart of Max New York Life's strategy. SOS Children's Villages of India is internationally recognized for its work in giving underprivileged children a wholesome life. The mission of SOS is "to help orphaned and abandoned children, by providing them with a family, a permanent home, education and strong foundation for an independent life." It's mission ties in with Max New York Life's philosophy of helping people secure the future of their near and dear ones. The company donates a part of the total money collected on all policies sold, to SOS Children's Villages of India at the end of the year.

Leadership Team

Chapter-3

CHANNEL DEVELOPMENT STRATEGIES.

3.1 ELIGIBILTY MODEL

From this eligibility model company judge prospective person. The company follows unique eligibility criteria for AA selection by which company is able is to always justify its mission. The basic objective of having an eligibility model for recruitment is to have good retention and greater effectiveness in the delivery of service. Four criterias for AA selection 1. 25 plus years of age: This age shows attainment of maturity and responsibility. People are more consistent in this age. 2. Married: Married people have more eager to earn money. Family pressures increase responsibility and secondly customers are convinced more by the stability of a married AA. 3. Staying in the same city for more than 5 years: Person who stays more than 5 year has huge natural market which helps him to get more business in short period. 4. Graduate: Graduate people have basic skills like communication skills, numerical ability, I.P relation, convincing abilities etc. so it is easy to teach them further. Other criteria for AA selection: 1. Financial stability: MNYL is focuses on classes and not on masses thus they select strong agent advisors. 2. To have a rich and active social circle: it helps to get higher case rate and case size. Also the chances of policy lapsing can be less and renewals can be more.

3. Greed for money: Firm selects advisors who understand the language of commission. Because people who want fix amount as their earnings are not suitable for this business. 4. Independent: MNYL select people who want to be entrepreneur. Housewives or brokers who want flexible hours for work are prospective person for this business. 5. Persuasion: He should be persuasive in nature because the AA needs to follow up on regular basis with prospective and new clients without being a nuisance value. 6. Excellent interpersonal skills: Because developing and maintaining good relations can get policies. Secondly since most of the insurance companies provide a plethora of similar products, sales depend on the convincing ability of the AA and the rapport the AA is bale to build. Also results in C of Is. 7. Excellent communication skills: Since AA needs to communicate about the organization, products, career as AA, about why insurance is important, which product will suit his requirement etc. Desirable Candidates 1) 2) 3) 4) 5) 6) Housewives. Employees having VRS. CAs. Mutual Fund Brokers. NSC brokers. Tax Consultants.

7) 8) 9)

Businessman. Doctors. Travel agents.

10) Lawyers 11) Diamond merchants. 12) Social workers. 3.2 DEVELOPMENT STRATEGIES Management team has developed certain strategies in order to expand channel distribution network. These model are followed across the country uniformly and top management feels that these rules are the building block of MNYLs success in India as well as across the world. There are 2 basic principles that are required in order to execute these strategies such as 1) Prospecting: Identify the right person who fits in the eligibility model. 2) Selection: Select them for further plan of actions. RULE OF 31 Rule of 31 is associated with the daily activities which is follow to recruit quality advisors. It says that everyday collect at least 3 names of the prospective AA and do 1 screening every day.

Ways of Name Gathering There are several ways for gathering names in order to follow rule of 31. Natural Market: A natural market consist of people to whom you know well from your family, friend circle, relative can be a good prospect. The most admired way for recruitment in MNYL is through natural market. Natural market persons are easily approachable and most of the successful recruitment in MNYL is from natural market. Personal Observation: It means identify the right person through observation. For e.g. a person residing in your locality and very famous in taking initiative in social activities can be a good prospect. Nominator Call: A nominator is a person who is very much influential in the market as well as in societies. Name gathering and identification is easy in this case, but these people are highly unapproachable. These people can be very

productive in giving references of the prospect. They are not prospect by default. Centre of Influence (CoI) Call: A centre of influence person is people who are influential and you know them personally. They are approached for giving references of the client. Prospect Call: Prospects itself are approached. They can be anyone from natural market, Nominators reference, CoIs reference or by other means. Activities: Doing activities such as brand awareness in Public places such as mall, multiplexes can be a good strategy for name gathering. We can have a questionnaire format to fill by applicant for the lucky draw. Phoenix mill. Nakshatra mall. Hirra panna. Siddhivinayak temple. Nirmal life style. BSE.

COLD/ WARM/ HOT

This is another method that helps the management trainee and the sales managers keep a track of the names he has from his natural market as well as through name gathering,

WARM COLD HOT

 Cold Cold is like what u are having. In this column we include all the names which we have as a prospect. It includes C o I names, references, nominators, PO names and so on. It is a list of all the names that we wish to contact in future. Warm Once the names mentioned in the cold column are contacted and if any appointments scheduled at the office wherein initial screening is then conducted the candidate is then entered in the warm list. Hot After being entered in the warm list if any candidate has attended any of the seminars held at Max New York Life after the initial screening done and if the candidate has been given P200 (project 200) then the prospective agent is then said to be entered in the hot list. COLD. 80 WARM. 30 HOT. 8

3.3 SCRIPTS AND HANDLING OBJECTIONS

MNYL has its own scientifically handled script they use worldwide for approaching the future AA for the Company. The company periodically modifies the versions of the scripts if needed as per requirement. All the mangers are required to follow the scripts. There are several kinds of scripts. The classification of scripts is follows: 1) Nominator Script:

Nominator is a person who is not prospect for firm but he gives reference to firm. The main objective of this script is to fix an appointment with the nominator. 2) CoI Script: Centre of influence is a people whom you know. The main objective of this script is to fix an appointment with the CoI or to collect the references from them. 3) Prospect Call Script: With the help of this script, firm tries to motivate people to visit MNYL office. The main objective of this script is to call the prospect in MNYL for the initial screening. 4) In person Nominator Script: This script includes many questions which help to get references quickly. This script is used to entertain Nominators and influence them to collect references from them. 5) CoI in person Nominator Script: This script is used to collect references from CoIs. All the scripts are also contained with expected objections from the prospects/CoI/nominators. These objections are based on the rich experiences and have adequate strategy to avoid objection. In any Case, an objection is found to be unlisted it is responsibility of SM to bring back in the spirit of original script provided them.

Chapter-4

CHANNEL DEVELOPMENT PROCESS.

Flow Based approach to Channel Development Process

Name Short with & P200 Career Contract listing CareerFCS Initial Reappea NAT StarContacting En NOT En Gathering MNYL Interested??interview CLEARE Seminar in P200 IC-33 Screening d t r CLEARED Dd

Y NO YES E S

4.1 NAME GATHERING IN P200 Name gathering in P200 consists of people whom you know from natural market and references you get from their sources. As a management trainee were given a task to gather 200 names. Figure shows the P200 format in which the database is created. Name of the prospective Agent

Address of Contact Age Marital Status Qualification No. of years in the City Financial Status Profession Annual Income Natural Market Comments

4.2 SHORT LISTING Candidates are shortlisted from the P200 as per the eligibility criteria laid down by the company. Only eligible candidates are considered for the next process. 4.3 CONTACTING Candidates are called either as nominator, CoI, Prospective Agents and a meeting is fixed with them according to the convenience of both the party. Here script plays very important role in fixing appointment with the prospect. 4.4 INITIAL SCREENING Initial screening is taken if candidate is found eligible using 4 point model. In intial screening, a sales manager first gives the introduction about the company. Then several questions such as his family background, his natural market, traits for a sales person, and his present and past experiences of his jobs are questioned.

Every candidate is required to get at least 3 points in eligibility model the company. The eligibility standards for AA selection are as follows. In case of score less than 3, special zonal head approval is required.

FIVE POINT SYSTEM: Age 25 and over Graduate Married Lived in city more than 5 years NAT score 4.5 NAT Numerical Ability test is taken. Passing Score is 50%. 4.6 CAREER SEMINAR AND P200 All the prospects are required to attend career seminar at MNYL which provides broader aspects of growth as an Agent Advisor. P200 is a worksheet which is given to each prospect to judge his natural market. The prospects are required to mention at least 100 contacts from their natural market. 4.7 CAREER INTERVIEW P200 is evaluated in Career Interview. If candidates market is found worth, he is selected to attend training and Development programme. 4.8 FCS 1 point 1 point 1 point 1 point 1 point (if passed)

All the selected candidates are required to attend 22 day training session for receiving the license from IRDA to become an Agent Advisor. 4.9 CONTRACT All the successful candidates having legal license of IRDA are contracted with MNYL.

In this firm has its own statistic. That means if we will contact 60 person in a month. Then we can convert 2 people for a batch as a AA. 60 20 16 08 04 02 Cold prospects. Initial screening. Test. Seminar. Career Interview. FCS Batch.

Chapter-5

CONCLUSION

5.1CONCLUSION
My Experience with MNYL will always be grateful for me. I learned many things in MNYL. The very first thing I learned in MNYL is to handle objections from the customers. Different type of scripts of MNYL helps in this. Working on deadline for achieving target is most crucial process in this sector and I am thankful to my sales Manager who were always behind me to support during initial call and helps me to complete my training. The GO meet to reward successful AA and SM for the month is another example which clearly emphasizes that MNYL has strong belief in maintaining a healthy relationship with their stakeholders. Overall Recruiting Agent Developing The Agency Channel was a fair attempt from me. During the project I was able to make 200 names. My telephonic conversation with the prospect always gave me a positive direction to build my confidence and even in bad phase of response I learnt the art of making calmness. I shared a lot of activities with my colleagues. All the trainees from different background also remained a source of energy for my daily activities.

5.2 BIBLIOGRAPHY.
BOOKS:-

Marketing Channel Development and Management by Russell W. McCalley Marketing Management by Philip kotler

IC 33 book of Max New York Life.

WEBSITES:-

www.maxnewyorklife.com www.google.com