Professional Documents
Culture Documents
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.
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CHANNEL DEVELOPMENT AT MNYL.
TABLE OF CONTENTS.
Preface
7
Table of Contents
9
List of Abbreviations
11
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CHANNEL DEVELOPMENT AT MNYL.
SECTION A: INTRODUCTION 13
C.2 SHORTLISTING 56
C.3 APPROACHING 57
C.5 NAT 58
C.8 FCS 58
C.9 CONTRACT 58
SECTION E: CONCLUSION 62
E.1 EXPERIENCE 63
E.2 SUMMARY 64
E.3 RECOMMENDATION 65
E.4 BIBLIOGRAPHY 67
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CHANNEL DEVELOPMENT AT MNYL.
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CHANNEL DEVELOPMENT AT MNYL.
LIST OF ABBREVIATIONS.
AA Agent Advisor
PO Personal Observation
SM Sales Manager
• Personal observation.
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CHANNEL DEVELOPMENT AT MNYL.
• Nominator.
• CoI.
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CHANNEL DEVELOPMENT AT MNYL.
Section A
INTRODUCTION.
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CHANNEL DEVELOPMENT AT MNYL.
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CHANNEL DEVELOPMENT AT MNYL.
Historical Perspective
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CHANNEL DEVELOPMENT AT MNYL.
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CHANNEL DEVELOPMENT AT MNYL.
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CHANNEL DEVELOPMENT AT MNYL.
more than 5% in any company (there current holdings to be brought down to this
level over a period of time)
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
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CHANNEL DEVELOPMENT AT MNYL.
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).
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CHANNEL DEVELOPMENT AT MNYL.
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 2006-07.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 2006 and 2007.
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CHANNEL DEVELOPMENT AT MNYL.
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.
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CHANNEL DEVELOPMENT AT MNYL.
• 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.
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CHANNEL DEVELOPMENT AT MNYL.
• 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 in 2005.
• MDRT is an exclusive congregation of the world’s 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.
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CHANNEL DEVELOPMENT AT MNYL.
• It now has 26 life insurance products and 8 riders that can be customized
to have more than 400 products.
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CHANNEL DEVELOPMENT AT MNYL.
E
MDR
T
Ex.
Council
Paul Colgan
Trophy
Centurion
Hi-Flier
Ten-A-Monther
Premium Leader
1) Premium Leader
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CHANNEL DEVELOPMENT AT MNYL.
2) Ten-A-Monther
Lunch.
3) Hi-Flier
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CHANNEL DEVELOPMENT AT MNYL.
Qualifying Criteria- 15 paid cases & Rs. 40,000 FYC at the end of
month 3
Qualifying Criteria- 25 paid cases & Rs. 80,000 FYC at the end of
month 6
Qualifying Criteria- 50 paid cases & Rs. 1.8 lakhs FYC in July- June
for
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CHANNEL DEVELOPMENT AT MNYL.
9) Centurion
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CHANNEL DEVELOPMENT AT MNYL.
Qualifying Criteria- Highest FYC with 100 or more paid cases and
Council Meeting.
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CHANNEL DEVELOPMENT AT MNYL.
Reward and Recognition- MDRT dues for all qualifiers. Top 35 by FYC
will
meeting.
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CHANNEL DEVELOPMENT AT MNYL.
PRODUCTS OF MNYL
• Endowment Plans
• Children Plan
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CHANNEL DEVELOPMENT AT MNYL.
• Pension Plans
Vision
Mission
Be a national player.
Values
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CHANNEL DEVELOPMENT AT MNYL.
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
Top five most respected private life insurance in India according to Business
World survey.
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.
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CHANNEL DEVELOPMENT AT MNYL.
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
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CHANNEL DEVELOPMENT AT MNYL.
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CHANNEL DEVELOPMENT AT MNYL.
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CHANNEL DEVELOPMENT AT MNYL.
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CHANNEL DEVELOPMENT AT MNYL.
Section B
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CHANNEL DEVELOPMENT AT MNYL.
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.
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.
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.
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CHANNEL DEVELOPMENT AT MNYL.
1. Financial stability:
MNYL is focuses on classes and not on masses thus they select strong agent
advisors.
it helps to get higher case rate and case size. Also the chances of policy lapsing can
be less and renewals can be more.
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:
5. Persuasion:
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 I’s.
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CHANNEL DEVELOPMENT AT MNYL.
Desirable Candidates
1) Housewives.
2) Employees having VRS.
3) CA’s.
4) Mutual Fund Brokers.
5) NSC brokers.
6) Tax Consultants.
7) Businessman.
8) Doctors.
9) Travel agents.
10) Lawyers
11) Diamond merchants.
12) Social workers.
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CHANNEL DEVELOPMENT AT MNYL.
1) Prospecting: Identify the right person who fits in the eligibility model.
• 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.
There are several ways for gathering names in order to follow rule of 31.
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CHANNEL DEVELOPMENT AT MNYL.
• 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 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:
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CHANNEL DEVELOPMENT AT MNYL.
Prospects itself are approached. They can be anyone from natural market,
Nominator’s reference, CoI‘s reference or by other means.
• Activities:
• Phoenix mill.
• Nakshatra mall.
• Hirra panna.
• Siddhivinayak temple.
• BSE.
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CHANNEL DEVELOPMENT AT MNYL.
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,
COLD
WARM
HOT
Cold
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CHANNEL DEVELOPMENT AT MNYL.
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.
80 30 8
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CHANNEL DEVELOPMENT AT MNYL.
QUESTIONNAIRE
Hello. This is MRUNAL D. SAMANT from Max New York Life, working here as
a management trainee. I would appreciate it if you could lend me just 2 minutes of
your time for my project on Insurance Industry. I would like to assess if you are
interested in taking a business opportunity available in the insurance sector which
requires no investment of yours.
SHARES
5%
PROPERT
INVEST INSURAN
Y. - MENT CE
OPTION
55 % 15 %
S.
MUTUAL
FUND.
25 %
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CHANNEL DEVELOPMENT AT MNYL.
a. _____________________________________
b. _____________________________________
c. _____________________________________
TATA AIG
BIRLA SUN
LIFE
ICICI
PRUDENTIAL
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CHANNEL DEVELOPMENT AT MNYL.
_________________________________________
a. ____________________________________
b. ____________________________________
c. ____________________________________
b. Money Back
d. Term Plan
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CHANNEL DEVELOPMENT AT MNYL.
a. Security
b. Investment
c. Tax Benefits
TAX BENEFIT
SECURITY
INVESTMENT
a. Rs.20,000 to 30,000
b. Rs.30,000 to 50,000
c. Rs.50,000 to 75,000
d. Rs.75000 to 1,00,000
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CHANNEL DEVELOPMENT AT MNYL.
a. Yes
b. No
YES
NO
a. Communication
b. Networking
c. Both
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CHANNEL DEVELOPMENT AT MNYL.
COMMUNICATI
ON
NETWORKING
BOTH
NAME: ______________________________________
ADDRESS: ______________________________________
______________________________________
Thank You for your valuable time and for your information the agency business in
insurance sector is successfully pursued by businessman, housewife, freelancers,
IT Consultants/CA, professionals like Doctors, Architects, Trader Segments, Auto,
Real Estate, etc.
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CHANNEL DEVELOPMENT AT MNYL.
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.
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CHANNEL DEVELOPMENT AT MNYL.
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.
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
CoI’s.
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.
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CHANNEL DEVELOPMENT AT MNYL.
Section C
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CHANNEL DEVELOPMENT AT MNYL.
Short listing
Contacting
NO
Intereste
End
d?
YES
Initial Screening
NAT
NO
Intereste
End
d?
YES
Career interview
FCS
NOT CLEARED
IC-33 ? Reappear
CLEARED
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CHANNEL DEVELOPMENT AT MNYL.
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.
• Address of Contact
• Age
• Marital Status
• Qualification
• No. of years in the City
• Financial Status
• Profession
• Annual Income
• Natural Market
• Comments
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.
C.3 CONTACTING
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CHANNEL DEVELOPMENT AT MNYL.
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.
C.5 NAT
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CHANNEL DEVELOPMENT AT MNYL.
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.
C.8 FCS
All the selected candidates are required to attend 22 day training session for
receiving the license from IRDA to become an Agent Advisor.
C.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.
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CHANNEL DEVELOPMENT AT MNYL.
60 Cold prospects.
20 Initial screening.
16 Test.
08 Seminar.
04 Career Interview.
02 FCS Batch.
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CHANNEL DEVELOPMENT AT MNYL.
Section D
STATUS REPORT.
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CHANNEL DEVELOPMENT AT MNYL.
Particulars Status
1) Initial Screening 30
2) NAT 6
3) Career Seminar 8
4) P200 8
5) Career Interview 5
6) FCS -
7) Total Recruitment -
8) Contracted -
The above activity chart represents the work done by me in accordance with the
channel development process. The P200 sheet will be attached with this project
where name and contact numbers are stored in format prescribed by the MNYL.
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CHANNEL DEVELOPMENT AT MNYL.
SECTION E
CONCLUSION
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CHANNEL DEVELOPMENT AT MNYL.
E.1EXPERIENCE
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 “Channel Development” was a fair attempt from me. During the project I
was able to make 200 names.
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.
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CHANNEL DEVELOPMENT AT MNYL.
E.2 SUMMARY
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 2006-07. In this market, competitive edge
provided by product innovation can sustain only for a couple of months, since
products can easily be cloned. Hence “Channel development” is the only process
through which an insurer can have SCA over other competitor.
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CHANNEL DEVELOPMENT AT MNYL.
E.3 RECOMMENDATION
Max New York Life as an insurance firm has a very strong presence in India and is
rapidly expanding its operations in India. After working on this project I feel that
following are some of the ways in which the company can improve the current
market base and selection procedure for AAs, the key revenue generating resource
for the company:
HEARD
KNOWN
EXPERIENCED
UNKNOWN.
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CHANNEL DEVELOPMENT AT MNYL.
• Highlight the core strengths of the company like oldest firm in insurance
sector, highest paid up capital, etc.
• Have a re-look at the existing product range and design products which can
attract masses rather than just serving only classes.
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CHANNEL DEVELOPMENT AT MNYL.
E.4 BIBLIOGRAPHY.
• www.maxnewyorklife.com
• www.google.com
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