A SUMMER TRAINING PROJECT REPORT

On

“A comparative study of the distribution channels of other Life Insurance companies and ING Life Insurance Co. Ltd.

in the competitive market”

Submitted In Partial Fulfillment Of the

Requirements for the Award of the Degree Of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Submitted To: Submitted by Ms. Suman Shokeen Jayant Rana

09314201711

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

VASANT KUNJ

Batch 2011 - 2014

CERTIFICATE

This is to certify that the Project Report (BBA -311) titled “A comparative study of the distribution channels of other life insurance companies and ING Life in the competitive market” done by Jayant Rana, Roll No.09314201711, is completed under my guidance.

Ms Suman Shokeen

(Project Guide)

Date:

ACKNOWLEDGEMENT

I owe my deepest gratitude to all the people associated with this project and helped me in

successfully completing this work.

I wish to extend my sincere thanks to Mr. Ashish Awasthi – Cluster Manager at ING Life

Insurance for giving me an opportunity to work for the organization. He has constantly

encouraged and inspired me to deliver nothing less than the best.

I would also like to express my gratitude to all the staff members at ING Life Insurance for their

support and co-operation during the period.

Lastly I would like to thank all the members of the ING Life for helping and supporting me

throughout this project.

(JAYANT RANA)

CONTENTS

S.NO. PARTICULARS Page No.

3 Chapter1- Introduction

4 Chapter2- Research Methodology

5 CHAPTER3- Company Profile

6 CHAPTER4 Findings

7 CHAPTER5- Conclusion

8 Bibliography/References

EXECUTIVE SUMMARY

Life is full of surprises, some pleasant and some not so pleasant. Our families and we have to

live with these uncertainties. Preparing for uncertainties of life is what insurance is all about.

Why waste precious moments contemplating tomorrow, when we have to live today? Insurance

is a tool, a solution for delegating the worries concerning tomorrow onto a trustworthy institution

so that you start living today.

In other words, Insurance is a legal contract that protects us from the financial costs that results

from loss of life, loss of health, lawsuits or property damage. Insurance provides a means for

individuals and societies to cope with some of the risks faced in everyday life. People purchase

contracts of insurance, called policies, from a variety of insurance organizations.

Almost everyone living in modern, industrialized countries buys insurance, for instance, laws in

most states require people who own a car to buy insurance before driving it on public roads.

The primary purpose of life insurance is therefore protection of the family in the event of death.

Today, insurance is also seen as a tool to plan effectively for the future years, retirement and for

children’s needs. Today, the market offers insurance plan that not just cover the life but at the

same time grow wealth too. When we insure our life, in effect what we are doing is insuring our

earning capacity. This guarantees that our dependants will be able to continue living without

financial hardships even in case of our demise.

ING LIFE INSURANCE CO. distributes its products through two channels i.e. Tied agency and

Alternate channels. The Tied agency comprises over 30,000 ING Life Advisors spread across the

country. The Alternate channel is a fast growing distribution channel and includes banc

assurance partner (ING VYSYA BANK), Cooperative Banks, Corporate Agents and Brokers.

In this summer intern project, I studied the distribution channels of ING Life and its competitors-

HDFC Life, ICICI Prudential, SBI Life, Birla Sun Life, Max Life, Aviva, etc. in the competitive

market, which helped me in knowing their channel partner distribution and their facts and figures

and AUM (Asst Under Management). Hence, my topic of study is “Study on Distribution

Channels of Life Insurance Companies on the competitive market”.

CHAPTER – 1INTRODUCTION

INSURANCE HISTORICAL BACKGROUND

In 1818, a British company called Oriental Life Insurance setup the first insurance firm in India

followed by the Bombay Assurance Company in 1823 and the Madras Equitable Life Insurance

Society in 1829. Though all this companies were operating in India but insuring the life of

European living in India only. Later some of the companies started providing insurance to

Indians with approximately 20% higher premium than Europeans as Indians were treated as

“substandard”. Substandard in insurance parlance refers to lives with physical disability.

Bombay Mutual Life Assurance Society was the first company established in 1871 which started

selling policies to Indians with “fair value”.

Insurance business was subjected to Indian company act1866, without any specific regulation. In

1905, the slogan “Be Indian-Buy Indian” declared by Swadeshi Movement gave birth to dozens

of indigenous life insurance and provident fund companies. In 1937, the Government of India

setup a consultative committee and finally first comprehensive “insurance act “was passed in

1938.

The insurance Amendment Act of 1950 abolished principal agencies. However, there were a

large number of insurance companies and the level of competition was high. There were also

allegations of unfair trade practices. The Government of India, therefore, decided to nationalize

insurance business.

An Ordinance was issued on 19th January, 1965 nationalizing the life insurance sector and Life

Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indians, 16

non-Indian insurers as also 75 provident societies- 245 Indian and foreign insurers in all. The

LIC had monopoly till the late 90s when the insurance sector was reopened to the private sector.

In 1968, the insurance act was amended to regulate investments and set minimum solvency

margins. The Tariff Advisory Committee was also setup then.

The process of re-opening of the sector had begun in the early 1990s and the last decade and

more has seen it been opened up substantially. In 1993, the Government setup a committee under

the chairmanship of RN MALHOTRA, former Governor of RBI, to propose recommendations

for reforms in the insurance sector. The objective was to complement the reforms initiated in the

financial sector. The committee submitted its reports in 1994 wherein, among other things. It

recommended that the private sector be permitted to enter the insurance industry. They stated

that foreign companies be allowed to enter by floating companies, preferably a joint venture with

Indian partners.

Following the recommendations of the RN MALHOTRA Committee report. In 1999, the

Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous

body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory

body in April, 2000. The key objectives of IRDA include promotion of competition so as to

enhance customer satisfaction through consumer choice and lower premiums, while ensuring the

financial security of the insurance market.

The IRDA opened up the market in August, 2000 with the invitation for applications for

registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the

power to frame regulations under section 114A of the Insurance Act, 1938 and has from 2000

onwards framed various regulations ranging from registration of companies for carrying on

insurance business to policyholder’s interests.

Today there are 24 general insurance companies including the ECGC and Agricultural Insurance

Corporation of India and 23 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with

banking services, insurance services add about 7% to the country’s GDP. A well developed and

evolved insurance sector is a boon for economic development as it provides long term funds for

infrastructure development at the same time strengthening the risk taking ability of the country.

Indian Insurance Market ($ bn):2010-2011

In oct.2000, IRDA (Insurance Regulatory and Development Authority) issued license paper to three companies, one public sector are successfully operating in India. The growth of the sector can easily be judged through figure-1. According to a study by McKinsey total life insurance market premiums in India is likely to more than double from the current US$ 40 billion to US$ 80-US$100 billion by 2012.

CHANGING COMPETITIVE ENVIRONMENT:

With the opening of insurance sector in India, the share of private insurer was very less. As

shown in table-1, total share of private insurer was just 2% in 2001-02. It was because of any

reason which includes credibility on private players:-

TABLE-1:

Insurance Sector 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008Public(LIC) 98 94 87 78 73.66 65.28 59.25Private 2 6 13 22 26.34 34.72 40.35

MARKET SHARE OF PUBLIC AND PRIVATE INSURANCE COMPANIES

Figure 2

Years

Market Shares

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

0 20 40 60 80 100 120

PrivatePublic(LIC)

Source: Compiled from Insurance annual reports

But soon because of innovative & customized products, novel distribution channels, aggressive

marketing etc.private players gave a tough competition to public sector company (LIC).

Gradually, the market share of private insurer went up and till financial year 2007-08, total share

of private insurer reached as high as 40.35%. The market share of LIC decreases after the entry

of private insurer but it doesn’t mean that the growth of LIC got down. LIC continue its growth

even after a cut throat completion from the private players.

Distribution channels in insurance

An insurance cover is an intangible product evidenced by a written contract known as

the‘policy’. Insurers market various insurance covers either directly or through various

distribution channels—individual agents, corporate agents (including Banc assurance) and

Brokers. The marketer in the distribution network is in direct interface with the prospect and the

customer.

Life insurance products are sold through individual agents and many of them have this as their

only career occupation. General insurance products are sold through individual agents, corporate

agents and brokers.

Distribution channels such as agents are licensed by the IRDA. To get an agency licence, one has

to have certain minimum qualifications; practical training in insurance subjects and pass an

examination conducted by the Insurance Institute of India.

IRDA regulations on licensing of agents/brokers lay down the code of conduct for individual

agents, corporate agents and brokers. A separate note on the code of conduct is appended to this

note.

Thus it is seen that the dos and don’ts for these intermediaries are given clearly at the point of

sale as well as in the event of a claim. Service does not end with the customer receiving his

document; it in fact only begins here. After sales service is as important or even more important–

like when a refund has to be made or when a claim has to be made.

One of the issues that are of great concern affecting professionalism in insurance activities is

resorting rebating by intermediaries. Rebating is prohibited as per Section 41 of the Insurance

Act, 1938 and the public are advised not to deal with intermediaries offering rebate of any kind.

Rebating means a share of commission receivable by the agent/broker is given to the

prospect/client. This is done to attract the client in the purchase of insurance contract by offering

cash. Competition among agents/brokers is so cut-throat, some agents indulge in such unethical

practices. Public are advised not to ask for any prohibited rebates in premium since commission

payment to an agent is the only income for some to take care of their families. Similarly, agents

are also advised not to indulge in such practices which could cause them loss of agency income.

Code of Conduct for Intermediaries

I. INSURANCE AGENT

Every insurance agent shall, ---

Identify himself and the insurance company of whom he is an insurance agent;

Disclose his licence to the prospect on demand;

Disseminate the requisite information in respect of insurance products offered for sale

by his insurer and take into account the needs of the prospect while recommending a

specific insurance plan;

Disclose the scales of commission in respect of the insurance product offered for sale, if

asked by the prospect;

Indicate the premium to be charged by the insurer for the insurance product offered for

sale;

Explain to the prospect the nature of information required in the proposal form by the

insurer, and also the importance of disclosure of material information in the purchase of

an insurance contract;

bring to the notice of the insurer any adverse habits or income inconsistency of the prospect, in

the form of a report (called “Insurance Agent’s Confidential Report”) along with every proposal

submitted to the insurer, and any material fact that may adversely affect the underwriting

decision of the insurer as regards acceptance of the proposal, by making all reasonable enquiries

about the prospect;

Inform promptly the prospect about the acceptance or rejection of the proposal by the

insurer;

Obtain the requisite documents at the time of filing the proposal form with the insurer;

and other documents subsequently asked for by the insurer for completion of the

proposal;

Render necessary assistance to the policyholders or claimants or beneficiaries in

complying with the requirements for settlement of claims by the insurer;

Advise every individual policyholder to effect nomination or assignment or change of

address or exercise of options, as the case may be, and offer necessary assistance in this

behalf, wherever necessary;

No insurance agent shall, ----

Solicit or procure insurance business without holding a valid licence;

Induce the prospect to omit any material information in the proposal form;

Induce the prospect to submit wrong information in the proposal form or documents

submitted to the insurer for acceptance of the proposal;

Behave in a discourteous manner with the prospect;

Interfere with any proposal introduced by any other insurance agent;

Offer different rates, advantages, terms and conditions other than those offered by his

insurer;

Demand or receive a share of proceeds from the beneficiary under an insurance contract;

Force a policyholder to terminate the existing policy and to effect a new proposal from

him within three years from the date of such termination;

Apply for fresh licence to act as an insurance agent, if his licence was earlier cancelled by

the designated person, and a period of five years has not elapsed from the date of such

cancellation;

Become or remain a director of any insurance company;

Every insurance agent shall, with a view to conserve the insurance business already

procured through him, make every attempt to ensure remittance of the premiums by the

policyholders within the stipulated time, by giving notice to the policyholder orally and

in writing;

II. CORPORATE AGENT

Every Licensed Corporate Agent shall abide by the code of conduct specified below:Every

corporate agent shall:

a) Be responsible for all acts of omission and commission of its corporate insurance executive

and every specified person;

b) Ensure that the corporate insurance executive and all specified persons are properly trained,

skilled and knowledgeable in the insurance products they market;

c) Ensure that the corporate insurance executive and the specified person do not make to the

prospect any misrepresentation on policy benefits and returns available under the policy;

d) Ensure that no prospect is forced to buy an insurance product;

e) Give adequate pre-sales and post-sales advice to the insured in respect of the insurance

product;

f) Extend all possible help and cooperation to an insured in completion of all formalities and

documentation in the event of a claim;

g) Give due publicity to the fact that the corporate agent does not underwrite the risk or act as

an insurer;

h) Enter into service level agreements with the insurer in which the duties and responsibilities of

both are defined.

Every corporate agent or a corporate insurance executive or a specified person shall also follow

the code of conduct specified below:

(i) Every corporate agent/ corporate insurance executive/ specified person shall, ---

(a) Identify himself and the insurance company of whom he is a representative;

(b) Disclose his licence/ certificate to the prospect on demand;

(c) Disseminate the requisite information in respect of insurance products offered for sale by his

insurer and take into account the needs of the prospect while recommending a specific insurance

plan;

(d) Disclose the scales of commission in respect of the insurance product offered for sale, if

asked by the prospect;

(e) Indicate the premium to be charged by the insurer for the insurance product offered for sale;

(f) Explain to the prospect the nature of information required in the proposal form by the

insurer, and also the importance of disclosure of material information in the purchase of an

insurance contract;

(g) bring to the notice of the insurer any adverse habits or income inconsistency of the prospect,

in the form of a report (called “Insurance Agent’s Confidential Report”) along with every

proposal submitted to the insurer, and any material fact that may adversely affect the

underwriting decision of the insurer as regards acceptance of the proposal, by making all

reasonable enquiries about the prospect;

(h) Inform promptly the prospect about the acceptance or rejection of the proposal by the

insurer;

(i) Obtain the requisite documents at the time of filing the proposal form with the insurer; and

other documents subsequently asked for by the insurer for completion of the proposal;

(j) Render necessary assistance to the policyholders or claimants or beneficiaries in complying

with the requirements for settlement of claims by the insurer;

(k) Advise every individual policyholder to effect nomination or assignment or change of

address or exercise of options, as the case may be, and offer necessary assistance in this behalf,

wherever necessary;

(ii) No corporate agent/ corporate insurance executive/ specified person shall, ----

(a) Solicit or procure insurance business without holding a valid licence/ certificate;

(b) Induce the prospect to omit any material information in the proposal form;

(c) Induce the prospect to submit wrong information in the proposal form or documents

submitted to the insurer for acceptance of the proposal;

(d) Behave in a discourteous manner with the prospect;

(e) Interfere with any proposal introduced by any other specified person or any insurance

intermediary;

(f) Offer different rates, advantages, terms and conditions other than those offered by his

insurer;

(g) Demand or receive a share of proceeds from the beneficiary under an insurance contract;

(h) Force a policyholder to terminate the existing policy and to effect a new proposal from him

within three years from the date of such termination;

(i) No corporate agent shall have a portfolio of insurance business from one person or one

organization or one group of organizations under which the premium is in excess of fifty percent

of total premium procured in any year;

(j) Apply for fresh licence to act as an insurance agent, if his licence was earlier cancelled by the

designated person, and a period of five years has not elapsed from the date of such cancellation;

(k) Become or remain a director of any insurance company;

(iii) Every corporate agent shall, with a view to conserve the insurance business already

procured through him, make every attempt to ensure remittance of the premiums by the

policyholders within the stipulated time, by giving notice to the policyholder orally and in

writing.

(iv) No director of a company or a partner of a firm or the chief executive or a corporate

insurance executive or a specified person shall hold similar position with another corporate agent

of any other insurance company.

III. INSURANCE BROKER

Every Insurance Broker shall follow recognised standards of professional conduct and discharge

his functions in the interest of the policyholders.

Conduct in matters relating to clients’ relationship— every insurance broker shall:

Conduct its dealings with clients with utmost good faith and integrity at all times;

Act with care and diligence;

Ensure that the client understands his relationship with the broker and on whose behalf

the broker is acting;

Treat all information supplied by the prospective clients as completely confidential to

themselves and to the insurer(s) to which the business is being offered;

Take appropriate steps to maintain the security of confidential documents in their possession;

Hold specific authority of client to develop terms;

Understand the type of client it is dealing with and the extent of the client’s awareness of

risk and insurance;

Avoid conflict of interest.

Conduct in matters relating to Sales practices— Every insurance Broker shall: —

(a) Confirm that it is a member of the Insurance Brokers Association of India or such a body of

brokers as approved by the Authority which has a memorandum of understanding with the

Authority;

(b) Confirm that he does not employ agents or canvassers to bring in business;

(c) Identify itself and explain as soon as possible the degree of choice in the products that are on

offer;

(d) Ensure that the client understands the type of service it can offer;

(e) Ensure that the policy proposed is suitable to the needs of the prospective client;

Conduct in matters relating receipt of remuneration— every insurance broker shall:—

(a) Disclose whether in addition to the remuneration prescribed under these regulations, he

proposes to charge the client, and if so in what manner;

(b) Advice the client in writing of the insurance premium and any fees or charges separately and

the purpose of any related services;

(c) If requested by a client, disclose the amount of remuneration or other remuneration it

receives as a result of effecting insurance for that client. This will include any payment received

as a result of securing on behalf of the client any service additional to the arrangement of the

contract of insurance; and

(d) Advise its clients, prior to affecting the insurance, of their intention to make any deductions

from the amount of claim collected for a client, where this is a recognised practice for the type of

insurance concerned.

Conduct in relation to matters relating to training — every insurance broker shall:

(a) That its staff are aware of and adhere to the standards expected of them by this code;

(b) Ensure that staff is competent, suitable and have been given adequate training;

(c) Ensure that there is a system in place to monitor the quality of advice given by its staff;

(d) Ensure that members of staff are aware of legal requirements including the law of agency

affecting their activities; and only handle classes of business in which they are competent;

(e) Draw the attention of the client to Section 41 of the Act, which prohibits rebating and

sharing of commission.

Every insurance broker shall display in every office where it is carrying on business and to which

the public have access a notice to the effect that a copy of the code of conduct is available upon

request and that if a member of the public wishes to make a complaint or requires the assistance

of the Authority in resolving a dispute, he may write to the Authority.

An insurance broker as defined in these regulations shall not act as an insurance agent of any

insurer under section 42 of the Act.

Every insurance broker shall abide by the provisions of the Insurance Act, 1938 (4 of 1938),

Insurance Regulatory and Development Authority Act 1999(41 of 1999), rules and regulations

made there under which may be applicable and relevant to the activities carried on by them as

insurance brokers.

E-sales

E-sales or online sales or we can call it as selling of policy through internet medium .E-sales is

an example of direct method. Online sales advertisement by insurer, employees selling policies

to customers directly. Though, it’s a new concept in the insurance sector, but insurers’ starting

adopting e-sales for its sales growth as e-sales reduces the intermediary costs like commission of

advisors, brokers, etc.

STATISTICS

The graph below shows the relative split of distribution channels in new business premium

collections for individual and group segments, based on public disclosures issued by life insurers

for the first three quarters of FY2012-13.

Source: Company quarterly disclosures

Individual agents accounted for approximately 96 per cent of the individual new business

premium collections of the LIC while direct business contributed 97 per cent of its unweighted

group new business premium collections in the period April to December 2012. During the same

period, with 44 per cent contribution, banc assurance was the leading distribution channel for

private life insurers for individual products, followed closely by individual agents contributing

39 per cent. For unweighted group new business premium, direct business was the largest

contributor in the nine month period ending December 2012.

OTHERS

The IRDA Board has authorised the National Securities Depository Limited (NSDL), Central

Depository Services Limited, Stock Holding Corporation of India, Karvy group and Computer

Age Management (CAMS) Repository Services to act as repositories for insurance policies. The

initiative will allow policyholders to maintain policies electronically and make modifications to

them. The services will be provided to policyholders without any charges as the repositories will

receive compensation directly from the insurance companies.

According to statistics released by Life Insurance Council, the total number of branches of life

insurers and employee headcount decreased by 608 and 10,000 respectively as at September

2012 as compared to September 2011. According to insurers, companies are reviewing existing

networks as the use of technology has decreased the need for physical offices. The number of

agents also reduced by over 200,000 during the same period.

Edelweiss Tokio Life intends to recruit 3,000 personal financial advisers in southern India by

2015 and plans to start operations in eastern India in the current financial year.

Future Generali Life will expand its advisor base by recruiting over 10,000 new advisors from

different sectors of society. This is an initiative to reach out to a wider audience base and

increase its market share.

Future Generali Life has entered into an agreement with Zoom developers, a service center

agency, through which the latter will distribute Generali’s micro-insurance products in Himachal

Pradesh. The company is looking at reaching out to 100,000 households in the region. The

products will be distributed through over 1,000 Common Service Centers delivery outlets in

Kangra, Una and Chamba districts of Himachal Pradesh.

India First Life has recently opened a Financial Planning Centre in Jaipur to intensify its

presence in the Tier-II and Tier-III cities. The set-up would offer services like processing

applications for new business, training of advisors, filing of claims and collecting and managing

customer records.

India First Life announced a corporate agency agreement with a local arm of Calcutta Stock

Exchange (CSE) – CSE Capital Markets Ltd to distribute its products. According to reports, CSE

Capital Markets have about 25 agents certified by the IRDA for selling insurance products. This

initiative is reportedly an effort by the insurer to reduce its dependence on the banc assurance

channel which accounts for 80 per cent of its sales.

Shriram Life is planning to expand its business in north India by adding 50 more branches.

During the expansion the company plans to concentrate on lowering operating expenses and on

targeting Tier-II locations, in order to remain profitable.

CHAPTER-2RESEARCH

METHODOLOGY

Research

Research is a scientific and systematic search for pertinent information on a specific topic. In

fact research is an art of scientific investigation.

Redman and Mory defines research, “As a systematic effort to gain new knowledge”.

According to Clifford Woody research comprises defining and redefining problems,

formulating hypothesis or suggested solution; collecting, organizing and evaluating data;

making deduction and reaching conclusion and at last carefully testing the conclusion to

determine whether they fit the formulating hypothesis.

Research Methodology

Research methodology is a way to systematically solve the research problems. It may be

understood as a science of studying how research is done scientifically.

Research methodology for this study:

Research design – Descriptive Research

Secondary data collection tool – Websites, News papers

Secondary data:

The secondary data was collected through the internal and external sources. The internal

included companies’ brochures various journals. The external sources consist of peripherals,

books and journals, newspapers, magazines and websites of the advertisement etc.

Purpose of the study

The study will help the organization in knowing how the Life insurance companies’

distribution channels are performing.

Objective of the study

To understand the concept of Distribution channels, working and mechanism.

To know the Performance of Distribution channel partners of ING Life compared to the

other companies.

To evaluate performance of Life insurance companies’ channel partners.

Significance

Risk and Insurance

Global insurance

Penetration of insurance sector at world level as well as in India

Saving habits of Indian people

Liberalization of Indian Insurance Sector

Role of the Insurance Regulatory Authority of India

Performance of private players in insurance sector

A comparative studies on private and public sector of insurance companies

Performance evaluation of non-life insurers (public and private

Evaluation of General Insurance Sector in India

Urban and Rural penetration of Insurance sector in India

Role of Insurance Sector In terms of infrastructure development in India

CHAPTER-3COMPANY

PROFILE OF ING LIFE INSURANCE

ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank

Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of

Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was pretty humble. It

was in the year 1930 that a team of visionaries came together to found a bank that would extend

a helping hand to those who weren't privileged enough to enjoy banking services.It's been a

long journey since then and the Bank has grown in size and stature to encompass every area of

present-day banking activity and has carved a distinct identity of being India's Premier Private

Sector Bank.

In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made

rapid strides to reach the coveted position of being the number one private sector bank. In 1990,

the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then

Finance Minister Prof. MadhuDandavate, had termed the performance of the bank

‘Stupendous’. The 75th anniversary, the Platinum Jubilee of the bank was celebrated during

2005.

History of ING

ING was founded in 1991 by a merger between Nationale-Nederlanden and NMB Postbank

Group. During the past years ING has become a multinational with diverse international

activities.

The roots of ING can be traced to the insurers De Nationale Levensverzekering Bank and De

Nederlanden van 1845 and to the public bank services such as De Rijkspostspaarbank and De

Postcheque- and Girodienst, as well as to the Nederlandsche Middenstands Bank. The oldest

legal predecessor is the Kooger Doodenbos from Koog in the province of North Holland,

founded in 1743. During that period many regional funds were created to insure people from

certain communities, professions, widows and orphans against bad fortune. Many of these small

organisations were taken over by larger nationwide operating companies such as De Nationale

Levensverzekering Bank. The fire insurers were the first to undertake international activities,

starting in the Dutch Indies, but later also in the rest of Asia and in America. This created the

foundation for the international company.The pillarisation of Dutch society that separated

Protestants, Catholics and Socialist/Liberals is also visible in the ING history.

The founding of ING as one company was started in 1990 when the legal restrictions on

mergers between insurers and banks were lifted in the Netherlands. This prompted insurance

company Nationale-Nederlanden and banking company NMB Postbank Groep to enter into

negotiations. The merger into Internationale Nederlanden Groep took place in 1991. The

market soon abbreviated the name to I-N-G. The company followed suit by changing the

statutory name to ING Groep N.V. Since 1991, ING has developed from a Dutch company with

some international business to a multinational with Dutch roots. This was achieved through a

mixture of organic growth, such as the creation of ING Direct from scratch, as well as various

large acquisitions.

The top of the company pedigree above shows the 'founding fathers' of ING; at the bottom you

will find the companies that ING has acquired since its establishment

In addition, companies were bought that have in the meantime been sold again. The first large

acquisition took place in 1995, when ING took over Barings Bank. This acquisition increased

the brand recognition of ING around the world and strengthened its wholesale banking presence

in the emerging markets. Some of Barings activities were integrated in ING's business units,

while other parts were closed down or sold. In 1999, ING acquired the German BHF-Bank, but

this Frankfurt-based merchant bank was divested in 2004. CenEbankiers also played an

important role in ING's history. It had been part of NMB since 1966, but in 2004 ING decided

to sell CenE. And then there was Life of Georgia. This insurance company was acquired by

Nationale-Nederlanden in 1979, resulting in a considerable increase in activities in the US. Via

Life of Georgia, the activities in Asia expanded considerably. However in 2004, ING as a group

had become well-established in both regions and Life of Georgia was sold. In 1956 an ING

predecessor (de Nationale) bought de Tiel-Utrecht. This significantly increased the size of the

company. But it was sold again in 1999 to De Goudse.

Furthermore ING participates in a number of financial institutions, such as Pacific Antai Life

Insurance and the China Merchants Fund Management. It has also established a partnership

with the Bank of Beijing. This has strengthened ING's presence in the emerging markets of

Asia, where ING has a longstanding presence. The Netherlands of 1845 had been active in

China since 1886 and NMB Bank had joint ventures in 1974 (Inter-Alpha Asia).

During its short existence, ING has grown into a global financial institution of Dutch origin

offering banking, investments, life insurance and retirement services.

ING COMPANY

ING In India

 

ING is present in all three fields of banking, insurance and asset management in the form of

ING, ING Vysya Life Insurance and ING Investment Management respectively. The presence

in all three fields signifies the importance that the group attaches to the Indian markets and the

group's operations here, as well as its bullish future outlook on the country.

ING and ING Vysya Life Insurance are headquartered in Bangalore, while the corporate office

of ING Investment Management is situated in Mumbai. The synergies arising out of the three

distinct but complimentary businesses are bound to be an asset to the group in the changing

market dynamics of the future. The first such signs are already visible on the horizon with

combined products being successfully launched by the different entities of the group in

conjunction with each other.

The origin of ING Group

On the other hand, ING group originated in 1990 from the merger between National –

Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Group NV.

Combining roots and ambitions, the newly formed company called “InternationalNederland

Group”. Market circles soon abbreviated the name to I-N-G. The company followed suit by

changing the statutory name to “ING Group N.V.”.

Profile

ING has gained recognition for its integrated approach of banking, insurance and asset

management. Furthermore, the company differentiates itself from other financial service

providers by successfully establishing life insurance companies in countries with emerging

economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization

is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning

retail market share in mature markets. Finally, ING distinguishes itself internationally as a

provider of ‘employee benefits’, i.e. arrangements of nonwage benefits, such as pension plans

for companies and their employees.

About ING Life

ING Vysya Life Insurance Company Limited is an established life insurance company with

over a decade of experience serving over I million customers in over 200 cities in India.

Headquartered in Bangalore, ING Vysya Life Insurance Company Limited is 100% owned by

Exide Industries Limited.

The company distributes its products through key channels like Tied Agency, Banc assurance

and Alliances. The Tied Agency channel comprises over 30,000 ING Vysya Life Insurance

Advisors, spread across the country. The Banc assurance and Alliances business within ING

Vysya Life Insurance is a fast growing distribution channel, and includes the Banc assurance

partner (ING Vysya Bank), Referral Partners, Corporate Agents and Brokers.

The word “ING” and the device are trademarks of ING Groep N.V. and are used under license.

MISSION

At ING Life, our mission is ‘To set the standard in helping

our customers manage their financial future.’

 

VALUES

Our business is driven on our values of Optimism,

Our Mission, Values & Personality

Knowledgeable, Trustworthy and Transparent.

Optimism: We bear an approach of ‘Optimism’

towards our company, towards each other, in our

products and in our care for our customer’s interests.

Knowledgeable: We cultivate the knowledgeable

value through our robust way of working, sharing and

actively communicating.

Trustworthy: We deliver trustworthiness by doing

the ‘right things in right way’, by delivering an‘easier’

customer experience and by being a socially

responsible corporate.

Transparent: Our value of ‘transparent’ drives our

actions, reflects in our products and services.

PERSONALITY ASPECTS

Our values are personified by our people through a set

of‘Personality aspects’. These personality aspects are:

Positive, Professional, Accountable and Transparent.

Positive: ING Life India employees live its value of

optimism by bearing a positive and can-do attitude to

their work.

Professional: At ING Life India, we expect the

highest standard of professional behavior by providing

professional advice to customers, by treating

customers equitably, abide by company’s culture and

act with compliance.

Accountable: ING Life India expects employees to be

accountable for their actions, words and decisions

such that it builds their personal integrity and fosters

ING Life India’s value of trustworthiness.

Straightforward: ING Life India expects employees

to be straightforward in their conduct and work while

dealing with customers and colleagues.

The Brand Positioning

The Brand Essence of ING Life is, ‘Experience the joy of

fulfilling your responsibility’. This essence is captured in the

unique brand positioning‘MeraFarz’, developed in 2007. This

positioning means, ING Life helps its customers fulfill their

responsibilities as provider towards themselves and their

families. ING Life provides its customers with the strength,

reliability and the right balance between long-term savings,

security & reasonable returns.

Product Portfolio

ING Life follows a "customer centric approach" while designing its

products. The Company's product portfolio offers products that cater to

every financial requirement, at all life stages. ING Life has developed an

exclusive tool - the Life Maker a simple tool which helps our customers

choose a plan most suitable to them, based on their needs, requirements

and current life stage. This tool helps build a complete financial plan for

life at every life stage, whether the requirement is

Protection, Savings, Retirement or Investment.

Management  

 Board of Directors (as on March 21, 2013)

Mr. RajanRaheja: Chairman

Mr. A. K. Mukherjee: Director

Mr. Kshitij Jain: Managing Director & CEO

Mr. N. N. Joshi: Director

Mr. Rajesh Kapadia: Director

Mr. Satish Raheja: Director

Executive Team (as on March 21, 2013)

Mr. Kshitij Jain: Managing Director & CEO

Mr. Rahul Agarwal: Chief Distribution Officer

Mr. B. Ashwin: Chief Operating Officer

Mr. UcoVegter: Chief Financial Officer

Mr. B N Rangarajan: Appointed Actuary & Chief Risk Officer

Leadership Profile

At ING, we pay significant attention to the way we manage our talent. This supports the

Company wide effort to develop a Winning performance Culture- a pivotal component of ING's

people strategy that allows us to attract, motivate, retain and develop the very best people for

continued business growth. Talent management at ING enables the leadership team to look

across all employees in the organization and make informed assessments based on three

principle areas: past performance, growth potential and ambition. We look at what has been

achieved against the pre-agreed individual objectives as well as how the performance is

achieved. We use the ING Leadership star as the reference- to measure the "how" of delivering

performance. All our Managers in leadership positions are expected to exhibit the five critical

leadership behaviors, as per ING Leadership Star.

The long journey of Eighty-three years has had several milestones…

1930 Set up in Bangalore

1948 Scheduled Bank

1985 Largest Private Sector Bank

1987 The Vysya Bank Leasing Ltd.Commenced

1988 Pioneered the concept of co-branding of credit cards.

1990 Promoted Vysya Bank Housing Finance Ltd.

1992 Deposits cross Rs 1000 crores

1993 Number of Branches crossed 300

1996 Signs strategic alliance with BBL

1998 Cash Management Services, & commissioning of VSAT, Golden Peacock Award- for

the Best HR Practices by Institute of Directors, Rated as Best Domestic Bank in India

by Global Finance.

2000 State –of –the –art Date Centre at ITPL, Bangalore.

RBI clears setting up of ING VYSYA LIFE INSURANCE CO

2001 ING Commenced life insurers

2002 The Bank launched a range of products and services like the Vysya paper Plus, the range

Of loan schemes for traders, ATM services, smartserv,personal assistant service, Save

Secure , an account that provides accident hospitalization and insurance cover,

Sambandh the International Debit card and the mi-b@nk net banking service.

2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd,vide their letter of

10.12.02

2003 Introduced customer friendly products like Orange savings, Orange current and

Protected Home loans.

2004 Introduced Protected Home Loans- a housing loan product

2005 Introduced Solo – My Own Account for Youth and customer service line-

Phone Banking Service

2006 Bank has networked all the branches to facilitate ‘AAA transaction.

2007 ING Life join hands with Bangalore One

2008 ING Life launches Golden Life

2009 ING Join hands with South India Bank.

2009 ING Life launches anew saving solution –ING Prime Life

2010 ING partners with Hero Honda FIH World Cup 2010 as major sponsor

2010 ING launches new guaranteed NAV ULIP-ING Market Shield

2011 ING launches ING Ace (Pensions, & Life, Traditional plan with guaranteed additions up

To 8.75%)

2011 ING records in Q 4( FY 2010-2011), aims to grow premium income to Rs 2000 crores

In FY 2011-2012.

2011 ING partners with Bollywood’s most awaited multi starrer Zindagi Na Milengi Dobara.

2012 ING appoints Law and Kenneth as it’s new advertising agency.

2013 ING launches a unique retirement solution- ING Golden Years Retirement Plan

Distribution channels of life insurance companies

ING Vysya Life has a diversified distribution platform. The company distributes it products

through key channels like Tied agency, Banc assurance and alliances. The Tied agency channel

comprises over 30,000 ING Life Insurance, advisors spread across the country. The Banc

assurance and alliances business within ING is a fast growing distribution channel and includes

the Banc assurance partners(ING VYSYA Bank), Referral partners, corporate agents and

Brokers. ING Vysya Life has strengthened its position as the leader in the life insurance industry

in cooperative banks tie ups. The company currently has tie ups with 130 cooperative banks

across the country.

 

We at SBI Life are in the process of strengthening our distribution network. As a

part of it we are now focusing on Corporate Agency & Broking as an alternate

channel. If you are interested in joining SBI Life as a Corporate Agent or want to

get empanelled as a Broker.

 

SBI Life has a unique multi-distribution model encompassing vibrant Banc

assurance, Retail Agency, Institutional Alliance and Corporate Solutions

distribution channels.

SBI Life extensively leverages the State Bank Group relationship as a platform for

cross-selling insurance products along with its numerous banking product packages

such as housing loans and personal loans. SBI’s access to over 100 million

accounts across the country provides a vibrant base for insurance penetration

across every region and economic strata in the country, thus ensuring true financial

inclusion. Agency Channel, comprising of the most productive force of over

80,000 Insurance Advisors, offers door to door insurance solutions to customers.

 

HDFC Life Insurance

HDFC isa joint venture between Housing Development Finance Corporation Ltd (HDFC) and

Standard Life plc. , provider of financial services in U.K.It was established after private

companies were allowed to enter the insurance industry in 2000.

HDFC Life is planning to increase revenues through agency, direct selling and online channels.

Currently banc assurance is the major distribution channel for the insurer, accounting for more

than 70 per cent of its sales. The insurer’s sales through alternate channels have reportedly

increased to more than 12 per cent in 2012 from about 5 per cent in 2011. The company has

successfully launched an online point of sales (POS) system for its distribution channels recently.

--->Banc assurance partners:

-HDFC Bank

-Saraswat Bank

-Indian Bank

-The Ratnakar Bank

->Corporate agents-:

-HDFC Bank

-Indian Bank

-Ratnakar Bank

-HDFC Financial Services

-HDFC Securities LTD

-Saraswat Co-operative Bank

-HDFC Sales Pvt. LTD

ICICI Prudential Life Insurance

ICICI Prudential Life Insurance between ICICI bank, a premier financial powerhouse, and

prudential plc, a leading international financial services group headquartered in the UK. ICICI

Prudential was amongst the first private sector insurance companies to begin operations in

December, 2000 after receiving approval from Insurance Regulatory Development Authority

(IRDA).

ICICI Prudential Life Insurance Company comprises of two structures:

Banc assurance and Alliances

Tied agency

Banc assurance and Alliances: - ICICI Prudential Life Insurance a pioneer in offering life

insurance solutions through banks and alliances.Within a short span of years and with nearly a

large number of partners. Banc assurance and Alliances has emerged as a vital component of the

company’s’ sales and distribution strategy, contributing to approximately 1/3rd of company’s

total business. The business philosophy is to leverage the distribution synergies with their

partners and add value to its customers as well as partners. Banc assurance includes-:

->Banks

-ICICI

-South Indian Bank

-Lord Krishna Bank

-Some co-operative banks

->Corporate Agents

-Bajaj Capital

-India Info line

-Advanced Financial Services (Karvyy)

-Investment Managers

-Muthoot Insurance Group

Whereas Tide agency is the largest distribution channel of ICICI Prudential Life Insurance

comprising a large advisor force that targets various customer segments. The strength of tied

agency lies in an aggressive strategy of expanding and procuring quality business with focus on

sales and people development, tied agency has emerged as a robust, predictable and sustainable

business model. The company has assets under management i.e. AUM – Rs 74,000 crores as on

March, 31, 2013. Generally , this advisors works under the leadership of unit manager , who

motivate them in every step by providing training and guidance to them, usually each unit

manager have 20 to 30 advisors under them:

-Branch Sales Manager

-Sales Manager

-Asst. Sales Manager

-Unit Manager

-Advisors

AVIVA LIFE INSURANCE

Aviva is UK based-5th largest life insurance group. Aviva has joint venture with Dabur.40

million customer based company. The distribution channel of Aviva is Banc assurance which is

the major distribution channel in India. Multi-distribution strategy which means, they sell

products through intermediaries, corporate partners in the workplace and directly to customers.

Banc assurance partnership include: ABN AMRO, American Express, Lakshmi Villas Bank,

Centurion Bank of Punjab and Indusland Bank. Field force over 300000 financial planning

advisors across the country.

Channel partners

IndusInd Bank

IndusInd Bank Ltd., is one of the leading new-generation private-sector banks in India.

It commenced operations in 1994 and had a net worth of Rs.866 crore as of March 31, 2006. At

present, the Bank has a network of 148 branches and 87 offsite ATMs spread over 118

geographical locations in 24 states and Union Territories.

Personal Banking clients in India.

Aviva's relationship with RBS commenced in June 2002 when the bank was known as ABN

AMRO.The Bank introduces its customers to Aviva for insurance and provides access to its

affluent customer base across the country through its operations in 31 branches at 22 locations.

DBS

DBS Bank India is a branch of DBS Bank Ltd., one of the largest financial services groups in

Asia. DBS opened its first branch in Mumbai in 1995. Since opening its second branch in New

Delhi in 2005, DBS has rapidly expanded its network to 12 branches Visit the IndusInd Bank

Ltd. website  www.indusind.com

Royal Bank of Scotland Group

In 300 years, The Royal Bank of Scotland Group has grown to become one of the largest

financial services groups in the world. They operate around the globe to provide banking

services for individuals, businesses and institutions.

RBS offers a broad range of transaction banking, fixed income and foreign exchange products

and services, including sales and trading, fixed income origination, derivatives, structured

lending and commodity financing.

Additionally, they provide a diverse range of product offerings including personal loans, credit

cards, savings accounts, financial planning, investment and insurance services, to meet the

everyday financial needs of over a million and 40 ATMs spread across the country in key

locations. In the last 5 years, DBS India has grown its customer base by about 20 times, and

increased its staff strength to over 800. Today, it is the first and the largest Asian bank in India

and is committed to building a universal banking franchise in India with a significant presence

across businesses, clients, products and services. 

The bank's strong capital position, as well as "AA-" and "Aa1" credit ratings are among the

highest in the Asia-Pacific region and have earned it Global Finance's "Safest Bank in Asia"

accolade for four consecutive years, since 2009. DBS was also acknowledged as “India’s Best

Foreign Bank” by Financial Express – Ernst & Young in 2010 and Dun & Bradstreet for its

Asset Quality in 2011.

DBS leverages its insights, deep understanding of Asia and appreciation of local cultures to

provide innovative and comprehensive financial solutions. The bank offers a portfolio of

corporate banking and financial services to companies, financial institutions and small and mid-

tier clients across industries and segments. These include capital markets, credit facilities,

electronic banking services, securities and fiduciary services, treasury services, cash

management, deposit accounts, international banking and trade finance. DBS also offers wealth

management solutions through “DBS Treasures”, an exclusive wealth management service

offered to the bank’s most valued clients including “non-resident Indians” (NRIs) with products

tailored to suit the needs of customers working or living outside India, to help meet their banking

and financial aspirations. 

For more information, please visit www.dbs.bank.in.

Cooperative and Regional Rural Banks

Rajasthan Gramin Bank

Vidharbha Kshetriya Gramin Bank

Prime Cooperative Bank

Sutlej Gramin Bank

MAX LIFE INSURANCE

Max Life Insurance, one of the leading life insurers, is a joint venture between Max India Ltd.

and Mitsui Sumitomo Insurance Co. Ltd. Max India is a leading Indian multi-business

corporate,while Mitsui Sumitomo Insurance is a member of MS&AD Insurance Group, which is

amongst the top general insurers in the world. Max Life Insurance offers comprehensive life

insurance and retirement solutions for long-term savings and protection to thirty lakh customers.

Distribution Channel

It has a country-wide diversified distribution model including the country's leading agent

advisors, exclusive arrangement with Axis Bank and several other partners. Max Life Insurance

is a quality business focused on delivering excellence to customers through advice based sale

process, customer centric approach to business, financial stability & investment expertise and

strong human capital.

BIRLA SUN LIFE INSURANCE CO Birla Sun Life Insurance Co. LTD. Is a joint venture between Aditya Birla Group, a well-known

Indian conglomerate and Sun Life Financial Inc., one of the leading international financial

services organizations from Canada. With an experience over a decade, BSLI has contributed to

the growth and development of the Indian life insurance industry and currently is one of the

leading life insurance companies in the country.

Distribution channel partner of BLSI

->Banc assuranceIn the initial phase BSLI has entered into a tie up with five cooperative banks

in the different regions of the country. These banks will be the model setup for the region and the

experience will be replicated with other cooperative banks in the region. BSLI has set up a

dedicated team within the organization to drive this initiative. The company is evaluating

possible tie-ups with several other cooperative banks in the country.Contributing nearly 45% of

the total individual life sales. The company currently has tie-ups with Citi Bank, Deutsche

Bank, IDBI Bank, Catholic Syrian Bank, KarurVysya Bank, Development Credit

Bank,HBC Global, etc.

There are close to 2000 urban cooperative banks in India with over 15 million customers and

nearly Rs.110000 crores in deposits. These banks have a huge customer base from the middle

class and very strong relationships with them, which is important in life insurance selling.

BSLI is looking at leveraging the strong relationship banking strengths of the cooperative bank

partners. The strategy will be to sell simple products from its suite initially and move up the

value chain with increasing awareness levels amongst customers and the staff of the banks. The

tie-ups are expected to increase BSLI's reach across the various regions in India.

-In the north, BSLI has tied up with Indian Mercantile Cooperative Bank, Luck now, which has

11 branches across the state. This was the first cooperative bank to commence sales of BSLI's

plans in the month of January 2006.

-In Bhopal the company has entered into a tie-up with Krishna Mercantile Cooperative Bank

which has a strong and loyal base of customers in the city of Bhopal.

-In the west BSLI has entered into a tie-up with the 'Thane Bharat Sahakari Bank', Mumbai that

has 12 branches and has received the license to operate 10 more branches in the state.

-To increase its reach in eastern India BSLI has tied with the Nagaland State Cooperative Bank,

Dimapur, which has a network of 25 branches and the Jamshedpur Urban Cooperative Bank,

Jamshedpur with two branches in the city of Jamshedpur.

About the Aditya Birla Group The Aditya Birla Group has a turnover close to Rs. 33,000 crore

(as on 31 March 2005) and is one of the largest business houses in India. It enjoys a leadership

position in all the sectors in which it operates. With over 75 business units, spanning the South

East Asian belt, Africa, Canada and the UK among others, it is reckoned as India's first

multinational corporation. The group is anchored by 72,000 employees and has seven lakh

shareholders, with a market capitalization of Rs.30, 500 crore.

CHAPTER-4FINDINGS

1. Market Share (in {percentage} %)

LIC 54.29

ICICI Prudential 7.32

HDFC LIFE

INSURANCE 5.89

SBI LIFE 6.05

MAX LIFE

INSURANCE 3.42

ING VYSYA LIFE

INSURANCE 1.26

AVIVA 1.16

BIRLA SUN LIFE

INSURANCE 3.45

BAJAJ ALLIANZ 2.09

OTHERS 15.07

54.29

7.32

5.89

6.05

3.421.26

1.15999999999999

3.452.09 15.07

LICICICI Prudential HDFC LIFE IN-SURANCESBI LIFEMAX LIFE IN-SURANCEING VYSYA LIFE INSURANCEAVIVABIRLA SUN LIFE INSURANCEBAJAJ ALLIANZOTHERS

2. Business Premium for individuals

( in lakhs)

LIC 3.14

HDFC LIFE 0.48

ICICI Prudential 1.07

SBI LIFE 2.08

MAX LIFE 1.62

ING 1.3

AVIVA 1.13

BIRLA SUN LIFE 0.58

BAJAJ ALLIANZ 0.66

LIC

HDFC LIFE

ICICI Prudential

SBI LIFE

MAX LIFE

ING

AVIVA

BIRLA SUN LIFE

BAJAJ ALLIANZ

0 0.5 1 1.5 2 2.5 3 3.5

3.14

0.48

1.07

2.08

1.62

1.3

1.12999999999999

0.58

0.660000000000007

LIC

HDFC LIFE

ICICI Prudential

SBI LIFE

MAX LIFE

ING

AVIVA

BIRLA SUN LIFE

BAJAJ ALLIANZ

0 0.5 1 1.5 2 2.5 3 3.5

3.14

0.48

1.07

2.08

1.62

1.3

1.12999999999999

0.58

0.660000000000007

3. Business Premium for corporate agents ( in lakhs)

AVIVA 2260.4

BIRLA SUN LIFE 251.58

HDFC LIFE 25717.5

ICICI PRU 8884.11

ING 37.9

MAX LIFE 2348.71

SBI LIFE 1769.24

BAJAJ ALLIANZ 198.33

LIC 444.9

AVIVA

BIRLA SUN LIFE

HDFC LIFE

ICICI PRU

ING

MAX LIFE

SBI LIFE

BAJAJ ALLIANZ

LIC

0 5000 10000 15000 20000 25000 30000

2260.4

251.58

25717.58

8884.11

37.9

2348.71

1769.24

198.33

444.9

AVIVA

BIRLA SUN LIFE

HDFC LIFE

ICICI PRU

ING

MAX LIFE

SBI LIFE

BAJAJ ALLIANZ

LIC

0 5000 10000 15000 20000 25000 30000

2260.4

251.58

25717.58

8884.11

37.9

2348.71

1769.24

198.33

444.9

4. Individual performance of life insurers-channel wise

( premium in crores)

AVIVA

BAJAJ ALLI

ANZ

BIRLA SU

N LIFE

HDFC LIF

E

ING LIFE

MAX LIFE

SBI LI

FE

ICICI PRU LIC

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

Individual Agents Corporate AgentsBrokersDirect SellingTotal individual New BusinessReferrals-New Business

INSURER Individual Agents

Corporate Agents

Brokers Direct Selling

Total individual

Referrals-New

New Business

Business

AVIVA 239.4 248.21 11.08 28.58 527.71 0.12BAJAJ ALLIANZ

1192.86 182.1 9.57 72.85 196.92

BIRLA SUN LIFE

795.27 230.24 101.77 33.03 1249.57 1.92

HDFC LIFE

582.4 1869.57 134.25 129.26 2903.31

ING LIFE 418.17 188.75 6.39 15.36 636.21 15.36MAX LIFE

639.51 689.81 25.54 126.59 1707.64 2.44

SBI LIFE 1729.97 1484.62 81.35 1.58 3343.3ICICI PRU 1374.85 1131.73 168.37 217.92 3049.33LIC 41266.72 1097.89 17.39 264.13 42738.36TOTAL

CONCLUSIONInsurance is a subject matter of solicitation. It is basically done on the request of the

customer, but countries like India, where population in majority is not aware of insurance

product benefits and the illiteracy of the majority population contributes to this fact.

Recently, the opening of the markets for the foreign companies and inflow of foreign

currency and foreign partners in insurance business is contributing for the growth of this

industry at a greater speed. The growth rate of this sector is higher than the other sectors of

the market.

The contribution of the public sector companies at the initial stage cannot be ignored and

being taken lightly.

Most of the insurers whether life or general insurance, were covered by these public sector

companies only.

The private sector companies at large have set the pace and are developing new methods in

channels to approach the masses by making new channels and policies for life.

The Banc assurance is the latest development and now IRDA has even allowed the broker

licences to banks, giving them the multiple choices of different insurers to insure their

customers for the mutual benefits i.e. customer as well as bank itself. Though, insurers, one

or the other has to get the business.

The development of new private companies like ING, AVIVA, BAJAJ ALLIANZ, ICICI,

etc. has aggressively started marketing and are increasing their market shares by adopting the

latest marketing strategies and training the person specialized for specific products and in

particular market segments in insurance itself. Though, even today, public sector is having

the major portion of the businesslike LIC, SBI, etc. but they are not as aggressive in adopting

the latest marketing trends and patterns. Though, gradually they have started realizing the

need of the hours and are placing their executives and a recruiting officer from the institution

setup, specifically for training and education by IRDA and other institutions contributing in

developing the insurance sector for the masses.

E-sales is a direct method of insurance marketing and we used to call it as a ‘online sales ‘.

Nowadays, e-sales become most beneficial method in insurance marketing. Private insurance

companies prefer e-sales as it reduces the intermediary costs like commission or agents and

brokers, etc.

With the help of e-sales, customer could opt for any product which fulfills the customer

requirements as per their needs and the customer could also go through the terms and

conditions of company and would be aware of the products of the life insurers. It’s a mutual

beneficiary method for both i.e. customers as well as for the company.

Limitations of the study

The data collection was strictly confined to secondary data.

No primary data is associated with the project.

Collecting Net Added Value is very difficult.

Timing was very limited.

Data for insurance channel partner’s was not available easily.

Selection of distribution channel partners of life insurance

companies for study the topic is very difficult because of

variances in channels.

BIBLIOGRAPHY

Websites www.Irda.gov.in

www.Nsdl.in

www.Ing.co.in

www.Lic.co.in

www.Sbi life

www.Aviva.co.in

www.Bajaj Allianz.co.in

www.HDFC Life.co.in

www.ICICI Pru.co.in

www.Birla sun.co.in

www.Bima.com

Journals

IRDA Annual Reports

IRDA History Reports

IRDA Annual Disclosure Reports