summer internship_sbi life insurance_abhishek roy

Industry Internship Project - 2013

Understanding Various Aspects & Leveraging OnlinePlatform for Channel Development:- A case of

Bancassurance Channel

Submitted By: -

Abhishek Roy

Marketing Batch

PGDM-1380

Company Guide: - Faculty Guide: -

Mr. Anup Kumar Singh Mrs. Arpita Pandey

Deputy Manager, Bancassurance Assistant Professor, Marketing

Understanding Various Aspects & Leveraging Online Platform for Channel Development:- A case of Bancassurance Channel

Institute for Technology and Management, Navi Mumbai

ACKNOWLEDGEMENTI would like to thank my College Guide Mrs. Arpita Pandey (Asst. Professor, MarketingDeptt.) who have supported me throughout this course of this project indirectly as a moralsupport to me to face any challenges or to overcome any hurdles during part of the Project.

I would also like to thank Dr. C.S. Adhikari (Dean, Academics) who helped me regardingvaluable suggestions and guidelines which helped me to prepare my Project Report.

I would like to thank from bottom of my heart to SBI Life Insurance Co. Ltd. for giving me theprivilege as well as a great opportunity to work with them as a part of Summer Internship. It wasa great experience for me like never before to work with such an esteemed organisation wheretruly the Life prevails in a larger way. I would definitely miss such an organisation whichsupports every young bright mind to carve a niche and achieve a success through sustained hardwork. Not only hard work this organisation taught me to live fuller and enjoy the spirit of being apart of this environment where every new idea gets appreciation.

I would like to thank Mr. G. Durgadas (Country Head, Relationship Marketing, SBI LifeBancassurance) who supported me and gave me a meaningful Project which was not onlychallenging but interesting as well. I would also like to thank my Project Guide Mr. AnupKumar Singh (Deputy Manager, Bancassurance) for giving me unconditional support andinnumerous guidance which was necessary throughout the course of this project. I would like tomention few names of Banca Staffs- Ms. Aakansha Mittal, Mr. Sandeep Belgaonkar and Ms.Richa Bansal for small but important support throughout my Project Course as they helped ingaining insight for the Project.

I extend my gratitude to all the Certified Insurance Facilitators (CIFs) of SBI and associate banksand Business Development Managers (BDMs) of SBI Life Insurance, who took out time andprovided their insights that, have been an important phase of learning in this Project duration.

Finally, I would like to thank entire Bancassurance Team which imbibed in me the unity ofstrength they have shown. I feel proud to be a part of this team which is not only workaholic butalso the Team which is very lively and supportive to each and every member of this team.



TABLE OF CONTENTS1. EXECUTIVE SUMMARY .......................................................................................................5

2. INTRODUCTION......................................................................................................................7

2.1. INSURANCE........................................................................................................................7

2.2. SBI LIFE INSURANCE.............................................................................................. 7

2.3. BANCASSURANCE............................................................................................................8

2.4. SBI LIFE BANCASSURANCE ........................................................................................10

3. OBJECTIVE ............................................................................................................................16

3.1. PRIMARY OBJECTIVE ..................................................................................................16

3.2. SECONDARY OBJECTIVE ............................................................................................16

3.3. PROBLEM DEFINITION ................................................................................................16

4. RESEARCH DESIGN.............................................................................................................18

4.1. RESEARCH METHODOLOGY .....................................................................................18

4.2. SAMPLING........................................................................................................................20

4.3. DATA COLLECTION METHODS.................................................................................21

5. KEY TERMS RELATED TO PROJECT.............................................................................23

5.1. SURAKSHA PLUS ............................................................................................................23

5.2. RINN RAKSHA .................................................................................................................25

5.3. BANCA ONLINE...............................................................................................................27

5.4. ABOUT Z-CARDS.............................................................................................................28

5.5. ABOUT MDRT ..................................................................................................................31

6. KEY ANALYSIS AND FINDINGS .......................................................................................34

6.1. FIELD WORK ...................................................................................................................34

6.2. REWARDS AND RECOGNITIONS...............................................................................35

6.3. LICENSE RENEWAL PROJECT...................................................................................40

6.4. SURAKSHA CUSTOMER CALLING............................................................................45

6.5. MDRT SORTING..............................................................................................................47

6.6. BANCA ONLINE ANALYSIS .........................................................................................49

7. DESIGNING OF Z-CARDS ...................................................................................................57



8. LIMITATIONS........................................................................................................................58

9. CONCLUSIONS ......................................................................................................................59

10. RECOMMENDATIONS.......................................................................................................61

11. REFERENCES.......................................................................................................................63

12. APPENDIX.............................................................................................................................64

List of Figures: -Figure 1: Different Channel Performances of SBI Life.....................................................................11Figure 2: New Business Premium Total Market Share......................................................................14Figure 3: New Business Premium among the Private Players............................................................14Figure 4: Original Z-Card layout .....................................................................................................29Figure 5: C-Fold Layout ..................................................................................................................30Figure 6: K-Fold Layout ..................................................................................................................31Figure 7: Book Fold Layout.............................................................................................................31Figure 8: CIF calling summary those who met persistency criteria....................................................37Figure 9: CIF calling summary those who did not met persistency criteria ........................................38Figure 10: Calling Summary for Branch Manager Contest...............................................................39Figure 11: Calling Summary of CIFs whose license already expired .................................................40Figure 12: Break-Up of Responses of CIFs Interested in Renewing License ......................................40Figure 13: Break-Up of Responses of CIFs Not Interested in Renewing their License .......................41Figure 14: Calling Summary of CIFs license about to be expiring in Quarter-4 FY 2012-13..............42Figure 15: Calling Summary of CIFs license about to be expiring in Quarter-1 FY 2013-14 ..............43Figure 16: Break-Up of Reasons for those CIFs that were informed .................................................44Figure 17: Break-Up of Reasons for those CIFs that were not informed............................................45Figure 18: Summary of calling Customers for eSuraksha Plan .........................................................46Figure 19: SBI Life Channel-wise contribution of performer CIFs to MDRTs (FY-2013-14) .............47Figure 20: Break-Up of SBI Circle-wise contributions to MDRTs .....................................................48Figure 21: Break-Up of Associate Banks Circle-wise contributions to MDRTs ..................................48Figure 22: The Non–Users of BAOL ..............................................................................................50Figure 23: Break-up of Non-User CIFs into Figure 24: Break-up of Non-User ..........51Figure 25: Different Reasons for not using Banca Online Portal by CIFs .........................................52Figure 26: Top of mind issues and suggestions based on rated premium ...........................................53Figure 27: Top of mind issues and suggestions based on age group...................................................54Figure 28: Top of the mind issues and suggestions based on years of association ..............................55



1. EXECUTIVE SUMMARYInsurance is considered to be important as it is an alternative to any unforeseen situation whichmay result into accident/death of a person. It is a very promising service sector considering hugepopulation in India where everyone needs it but many are unaware of it. But still the picture isfar from reality. Its penetration in India is very low (less than 3%). People have lost trust inInsurance Sector since there has been a lot of mis-selling of Insurance Products, delay insettlement of claims, etc. in last few years. This along with Economic Recession there has beennegligible growth in Insurance Industry. Last 3-5 years there has been a decline in performanceof Insurance Industry be it public or private sectors.

Channels have always been a backbone of Insurance Industry. Concept of BancassuranceChannel came to India only in 2000 the model has been adopted from European Countries whereit came back a long ago. Keeping in mind that Banks forms a large distribution networkgeographically spread it should do good amount of business but the reality is exactly opposite.Being an effective channel where State Bank Group (State Bank of India comprising 14 circlesand Associate Banks having 5 circles) have joined with SBI Life and has presence of more than18000 branches all over India covering Rural, Semi-Urban, Urban and Metros still itsperformance is declining. Our Project is to study and find out the cause behind this decline andgive some recommendations after doing in-depth research through telephonic conversation withCIFs (A CIF is an employee of State Bank Group which does cross-selling of Insurance Productson behalf of SBI Life) , BDMs (SBI Life Representative who visits branches and keep a trackrecord of CIFs). Also some researches about latest happening of Insurance Industry by accessingvarious reports from IRDA, reading various articles about Insurance on Internet andunderstanding Insurance Terminologies is done to back above research.

Another problem was seen related low usage or awareness of SBI Life Banca Online IntranetPortal which is made exclusively for CIFs where information is readily accessible which are veryuseful for any CIFs. So research was carried out in this direction to find out which links theynormally visits and any suggestions or improvement they want in portal. Also feedback wasnoted for various issues they were having when they visited the portal. For helping CIFs furtherlike awareness of rewards structure and for product like RiNn Raskha design of Z- Cards weredone so that they can refer it anywhere and size is so small that they can keep in pocket and roamanywhere and access it.

For new products like e-Suraksha Plus which is a pure term plan that is redirected from OnlineSBI website Customer Relationship was given top priority and any doubt or queries regardingonline filling up of form or product information in general, all were resolved by having detailedconversation with them so that a good relationship is established with our valuable customers.Also layout or process of filling up forms were slightly modified based on problems that



customer faced. So everything was done as a part of Customer Feedback and having a strongrelationship with our customer.

Scope of the Study: -

An attempt was made to find out reasons why there has been decline in Performance ofBancassurance Channel of SBI Life by various researches as mentioned above. Along with thatthere was also an attempt to find out low usage of Banca Online Intranet Portal by leveragingonline portal. Also main issues have been highlighted in this report which is given underRecommendations that can be incorporated to improve efficiency of Bancassurance Channel ofSBI Life.



2. INTRODUCTION2.1. INSURANCE

Insurance is a contract between the insurance company (insurer) and the policyholder(insured). In return for a consideration (the premium), the insurance company promises topay a specified amount to the insured on the happening of a specific event. In laymanterm Insurance is the mechanism of transfer of risk wherein the person taking outinsurance transfers their risk to the insurance company in return for a payment (known asthe premium).

Insurance is necessary because no one foresees the event which may happen in future. Ifanybody can see their future then there was no need of Insurance. In case of futureuntoward events risk like Accident/Death, Insurance comes to rescue where the financialgap due to these risks is compensated upon. Insurance is generally divided into twoparts:-

(1) Life Insurance: - Life insurance companies cover risks that relate to human lives.They offer different benefits under different types of products and cover the risk ofearly death, as well as the risk of living into old age. Under traditional plans, like terminsurance plans, insurance companies provide death cover. If the insured person dieswithin the term of the policy then the nominee/beneficiary is paid a specified amount(also known as the sum insured). Under pension plans, insurance companies offerperiodic monthly payments (annuities) to support the insured during their retirement.

(2) Non-Life Insurance (General Insurance): - Non-life insurance companies generallycover risks other than those relating to human lives. The exceptions to this arepersonal accident and health insurance, which are provided by non-life insurancecompanies. Any asset either gives a monetary return (e.g. a house given on rent), oroffers convenience (e.g. a car which can be used to travel from one place to another)can be insured. All assets are exposed to various risks: they can be damaged ordestroyed by fire, earthquake, riot, theft, flooding, cyclones etc. If the asset isdamaged by any of these risks, the owner will be at a disadvantage and they will losethe income or the convenience the asset provided. Non-life insurance companies offerproducts that cover these risks and compensate the owner should the asset bedamaged by one of them. It is a product from this type of company that an individualwould buy to protect their assets, for example, their home against fire etc.

2.2. SBI LIFE INSURANCESBI Life Insurance is a joint venture between State Bank of India and BNP ParibasCardif. SBI owns 74% of the total capital and BNP Paribas Cardif the remaining 26%.



2.2.1. Mission, Vision and Values of SBI Life: -

Mission: -

"To emerge as the leading company offering a comprehensive range of lifeinsurance and pension products at competitive prices, ensuring high standards ofcustomer satisfaction and world class operating efficiency, and become a modellife insurance company in India in the post liberalization period".

Vision: -

"To be the most trusted and preferred life insurance provider."

Values: -Trustworthiness.Ambition.Innovation.Dynamism.Excellence.

2.2.2. Channels of SBI Life: -

SBI Life has got four important channels of distribution of its Life InsuranceProducts: -

Bancassurance.Institutional Alliance.Retail Agencies.Corporate Solutions.

2.3. BANCASSURANCE

The bank insurance model (BIM), also sometimes known as Bancassurance, is thepartnership or relationship between a bank and an insurance company whereby theinsurance company uses the bank sales channel in order to sell insurance products, anarrangement in which a bank and an insurance company form a partnership so that theinsurance company can sell its products to the bank's client base.BIM allows theinsurance company to maintain smaller direct sales teams as their products are soldthrough the bank to bank customers by bank staff and employees as well. Bank staff andtellers, rather than an insurance salesperson, become the point of sale and point of contactfor the customer. Bank staff are advised and supported by the insurance company throughproduct information, marketing campaigns and sales training. The bank and the insurancecompany share the commission. Insurance policies are processed and administered by theinsurance company. This partnership arrangement can be profitable for both companies.Banks can earn additional revenue by selling the insurance products, while insurancecompanies are able to expand their customer base without having to expand their sales



forces or pay commissions to insurance agents or brokers. Bancassurance, the sale ofinsurance and pensions products through a bank, has proved to be an effectivedistribution channel in a number of countries in Europe, Latin America, and Asia.

2.3.1. Brief History:-

The first countries to venture into the field were Spain and France. In the early70s, ACM (Assurances du Crédit Mutuel) Vie et IARD (life and generalinsurance) were officially authorized to start operations, a watershed event in thehistory of insurance. It was their idea to bypass the middleman for loan protectioninsurance and to insure their own banking customers themselves. They thusbecame the precursors of what – 15 years later – would become “Bancassurance”.For their part, the Spanish began their adventure in the early 1980s, when theBANCO DE BILBAO Group acquired a majority stake in EUROSEGUROS SA(originally LA VASCA ASEGURADORA SA, incorporated in 1968). However,their control was initially only financial, since Spanish law prohibited banks fromselling life insurance. This legal barrier was removed in 1991. Today, the top fiveSpanish Bancassurance companies control one third of the market (Vida Caixa,BBVA, SHC Seguros, Aseval, Mapfre Vida). However, from a purely historicalpoint of view, the real pioneers were the British with the creation of Barclays Lifein September 1965. This subsidiary was not a great success in the UK, and nor,for that matter, was the concept of Bancassurance. On the other hand, theBancassurance concept attracted more than one bank on the continent and the bigplayers very quickly began to set up subsidiaries or joint ventures, therebyintroducing the model into their respective countries:

France: in 1971, Crédit Lyonnais acquired the Médicale de France Group andin 1993 signed an agreement giving the Union des Assurances FédéralesGroup exclusive rights to sell life insurance through the Crédit Lyonnaisnetwork.Spain: in 1981, the Banco de Bilbao Group acquired a majority interest inEUROSEGUROS SA, an Insurance and Reinsurance companyBelgium: in 1989, AG – Belgium’s leading insurance company – andGénérale de Banque, created Alpha Life. One year later, the big Dutchinsurance company AMEV N.V., and VSB, a Dutch bank, went into businesstogether. In the same year, they were joined in the first cross-border merger byAG Group, thereby creating the Fortis Group.In Europe, Germany and Italy took much longer to get involved, as did Asia,where Bancassurance only really began to attract existing Korean banks aftergovernment authorization in 2003. In 2004, Fortis signed a contract inThailand with Muang Thai Group for life and non-life policies, in the processtaking a 25% stake in Muang Thai Life Insurance. Fortis, which was seeking



to extend the Bancassurance model to Asia, already had partnerships inMalaysia and China. On markets where Bancassurance is sufficientlydeveloped, like France or Belgium, companies are now moving into a newphase of development.

Table 1: Evolution of Bancassurance Channel over the years

2.3.2. Bancassurance in India: - In 1993 the Government set up a committee under thechairmanship of R N Malhotra (Malhotra Committee), the former Governor ofRBI, to make recommendations for the reform of the insurance sector. In itsreport in 1994, the committee recommended, among other things, that the privatesector and foreign companies (but only through a joint venture with an Indianpartner) be permitted to enter the insurance industry. Following therecommendations of the Malhotra Committee report, the insurance sector wasopened to private companies. Foreign companies were also allowed to participatein the Indian insurance market through joint ventures (JVs) with Indiancompanies. Under current regulations the foreign partner cannot hold more than a26% stake in the joint venture. Insurance Regulatory and Development Authority(IRDA) was constituted as an autonomous body in 1999 (following MalhotraCommittee recommendations) to regulate and develop the insurance industry. TheIRDA was incorporated as a statutory body in April 2000. SBI Life started itsBancassurance Channel on 10th May, 2002 as a first private life insurer. LICfollowed the trend as forming Bancassurance Channel by tying up withCorporation Bank on 9th Sept, 2002. After that many players entered the arena andthus Bancassurance Channel was seen as most promising channel in InsuranceSector.

2.4. SBI LIFE BANCASSURANCE

It is the largest channel of distribution compared to others (i.e. Institutional Alliance,Corporate Solutions, and Retail Agencies). Bancassurance Channel only contributedaround 40-50% profits for SBI Life.

Start Maturity Diversification Concentration1975 - 1985 1985 – 2000 2000 – 2005 2006 onwardsExternalpartnerships/creation ofsubsidiaries(internal)

Takeovers/acquisition drivengrowth

Alliances Partnerships Acquisitions

Distributiononly

Serviceintegration

Customized approach



Source: SBI Life Annual Report 2011-12

Figure 1: Different Channel Performances of SBI Life

2.4.1. Process of Insurance Selling:-

It has its Bancassurance tie-up with State Bank of India and it 5 associate banks,namely State Bank of Patiala, State Bank of Mysore, State bank of Travancore,State Bank of Hyderabad and State bank of Bikaner and Jaipur. Employees ofthese banks are volunteer or chosen by their managers to become InsuranceAdvisors for SBI Life. The prospective Insurance Advisors have to pass an examand undergo a stipulated amount of hours’ of training after which they obtain alicense from the IRDA. These individuals are called Certified InsuranceFacilitators (CIF). In addition to their banking duties and responsibilities, the CIFsundertake the task of cross selling insurance products in order to earn cross sellingrevenue for their bank. Thus all CIFs are employees of SBI and its associatebanks. Business Development Managers (BDMs) from SBI Life oversee and co-ordinate the activities of the CIFs in the bank branches. The branch target andindividual targets are assigned by the head offices. Incentive driven contests arerun by both, SBI Life as well as SBI in order to motivate and encourage the salesforce. Since the CIFs are bank employees, they report to their managers in thebranch itself. The CIF approaches the customers on his/her own and goes ahead tocomplete the deal. In certain cases, CIFs pass on the leads to their respectiveBDMs who tales it ahead from there. The number of CIFs varies from branch tobranch depending on its nature of business, span of operation, location and scale.

2.4.2. Products of SBI Life:-

Products are broadly categorized into:-

(1) Individual Plans



(2) Health Plans(3) Group Plans

(1) Individual Plans:- Individual Plans are further classified into:-

(i) Unit Linked Plans: - Under Unit Linked Plans there are 7 products offered bySBI Life. These products are Smart Performer, Unit Plus Super, SaralMaha Anand, Smart Elite, Smart Scholar, Smart Horizon and SmartWealth Assure. Unit Linked Insurance Plans are long term investment cumprotection plans that offer customer an opportunity of availing market linkedreturns while providing life insurance protection. Depending on risk appetite,customer has the option of choosing from host of funds having varied degreeof risk exposure. Flexibility and transparency are some of the other attractivefeatures that make ULIPs an attractive long term investment option.

(ii) Child Plans: - There are two products offered under this plan namely ScholarII and Smart Scholar. These plans basically secure child’s future by takingcare of expense like education and provide financial support in case of anyuncertainty in future. Also it secures child life from an unfortunate event, bysecuring financial gap where nominee would receive full sum assured alongwith vested bonus, plus regular guaranteed survival benefit if there is death ofparent.

(iii)Pension Plans: - Two products are offered under this plan namely AnnuityPlus and Saral Pension. About nearly 70-80% of people doing job does nothave the facility of pension. So this plan secure financial gap that might occurafter retirement. Thus the products mentioned here provide regular incomeeven after retirement so that people do not compromise their standard of livingeven after retirement.

(iv)Protection Plans: - There are 6 products under this plan and they are eSheild,Grameen Bima, Swadhan, Saral Sheild, Smart Sheild and Smart IncomeShield. These plans are basically pure term plan (term plan has got only deathbenefit no maturity benfit) and thus these plans are cheaper at cost. Theyprovide death cover with full sum insured during term plan.

(v) Savings Plans: - In this plan there are 6 products mainly Smart IncomeProtect, Sanjeevan Supreme, Shubh Nivesh, Saral Life, Flexi Smart andMoney Back. These types of plans are for those who want to invest so that



they can save. Instead of saving and keeping at home the money can beinvested under these plans to get better deal with interest and bonus whichwill be payable at maturity.

(2) Group Plans: - SBI Life offers a wide range of employee benefit solutionswhich helps organizations to retain, reward and encourage the best talent inthe industry. It also provides a host of corporate solutions to both statutoryneeds as well as voluntary needs of the employers and hence ensures tostrengthen the employer -employee relationship in the long run. Under thisplan there are many Products but main two products which are selling hugeare – RiNn Raksha and Swadhan.

(i) RiNn Raksha- RiNn Raksha provides Insurance against Car Loans aswell as Home Loans. Thus it provides tension free life without anyliability worries and thus the best seller product since most of familywants a Home and Car which today has become a necessity. This planoffers life to live “Debt Free” and thus tagline of the product says “Inherityour home and not home loan”.

(ii) Swadhan (Group):- It is a Non-Participating Group Term Insurance Planwhich offers dual benefits of life cover protection in the event of death andrefund of premium in case of survival up to the end of the cover term.

The top selling products are Smart Performer and RiNn Raksha.

2.4.3. Competitive Analysis:-

Until year 2000, LIC was the only company providing life insurance. In the year2000, private companies and foreign companies (only through a joint venture withan Indian company) were allowed to enter the business. The foreign companiesare allowed to have a 26% stake in the joint venture. Presently, there is one publiccompany in life insurance business, LIC which has & 71.36% share of totalmarket share of new business premium (FY 2011-12) and the rest 28.64% is withthe private players (see Figure 2).



Source: IRDA New Business Report FY 2011-12Figure 2: New Business Premium Total Market Share

Figure 3 shows the market shares of major private players in the insuranceindustry. SBI Life is the leading private insurance company amongst privateplayers.

Source: IRDA New Business Report FY 2011-12Figure 3: New Business Premium among the Private Players

Comparative chart of the performances of SBI Life and different private insurersare being shown below: -



Table 2: Comparison of SBI Life and its competitors

NBP Private Share NBP Private Share Total Share Rankings GrowthSBI Life 1161.7 16.7% 5184.2 16.9% 4.8% 1 -20.6%

ICICI Prudential 825.2 11.8% 4808.8 15.6% 4.5% 2 -5.3%HDFC Life 1003.6 14.4% 4435.6 14.4% 4.1% 3 15.7%

Bajaj Allianz 629.8 9.0% 2992 9.7% 2.8% 4 10.3%Max Life 311.6 4.5% 1899.4 6.2% 1.8% 5 -0.5%

Birla Sunlife 468.5 6.7% 1836.8 6.0% 1.7% 6 -4.6%Reliance Life 233 3.3% 1376.6 4.5% 1.3% 7 -23.9%

IndiaFirst 676.4 9.7% 1316.4 4.3% 1.2% 8 34.0%Kotak Mahindra Old

Mutual345 5.0% 1188.1 3.9% 1.1% 9 2.0%

Met Life 169.5 2.4% 840.6 2.7% 0.8% 10 -21.8%Total Private 6968.8 30,765 84.2% 28.7% -6.0%

LIC 15,540.2 76,245.6 71.3% -6.5%Total Market 22,508.9 107,010.7 100.0% -6.3%

CompanyMarch '13

IRDA Industry Ranking for March 2013 (Figures in Rs. Crores)



3. OBJECTIVEAccording to work done in Project being assigned the objectives is being divided into two partson the basis of importance and goals that need to be achieved on immediate basis.

3.1. PRIMARY OBJECTIVE

To understand various aspects of Bancassurance Channel in terms of its performance,its strength and areas where it can be improved, its sales force efficiency and how itperforms the tasks at ground level.To leverage Bancassurance Online (in short named as Banca Online) which is anIntranet Portal dedicated exclusively for the sales force who are interested in sellingInsurance Products of SBI Life.

3.2. SECONDARY OBJECTIVE

To know about Bancassurance Channel as for a general overview.To explore the Banca Online Intranet Portal.

3.3. PROBLEM DEFINITION

The Project was taken on the basis of two major problems related to the objectivesmentioned above:-

The main problem regarding Bancassurance Channel of SBI Life was that it wasdeclining for past 3 years which was way below than other competitors inBancassurance Channels like ICICI Prudential, HDFC Life etc. There has beenconstant decline in Bancassurance Channel Performance of SBI Life whereas in caseof competitors channels are improving, delivering better business even though theyare having less number of branches to sell Insurance as compared to SBI which haslargest number of branches in India (approx 18000+). It contributed 40-50% of profitsof SBI Life recently. Still there is a scope for huge improvement as consideringcompetitors it has largest number of branches but they are not doing business as theycan do. Competitors with far less number of branches are doing approximately near tosame amount of business. So the objective was based on the fact to ImproveBancassurance Channel of SBI Life along with giving some suggestions toimplement upon. So for better understanding of problem there was a necessity tounderstand various aspects of Bancassurance Channel.



SBI Life Insurance Performance Competitor Insurance Performance

Year Year

Another problem was that regarding low usage of Bancassurance Intranet Portal(better known as Banca Online). Bancassurance Online (BAOL) is an intranetplatform designed for those employees of State Bank Group who are interested inLife insurance business. It is a single point of getting information for the CertifiedInsurance Facilitators (CIFs). There might be possibility of low efficiency of CIFsespecially the non-performer ones as they have low awareness of this portal. So theobjective was to increase the usage rate of this portal by CIFs so that they can deliverperformance in a better way.


Institute for Technology and Management, Navi Mumbai Page 17


Year Year





Year Year




4. RESEARCH DESIGN4.1. RESEARCH METHODOLOGY

Primary as well as Secondary Research is done to find out the cause behind decline inBancassurance Channel Performance and low- usage of Banca Online Portal (BAOL).

4.1.1. Primary Research: -

Visiting various branches along with BDMs to know more about how they performtheir tasks and problems they are facing in business during branch visits, also togather information from the CIFs working on a particular branch by having detailedconversation and from these information to generate more ideas for improvingefficiency of the Channel by focusing on problems related to CIFs. This is availableon Field Work.

During JFM period, New Year Hungama Contest was launched by SBI wheredifferent rewards and recognitions are entitled to CIFs those who have donevoluminous businesses for SBI Life by selling insurance on their behalf. As arepresentative of SBI Life to monitor the performance and as general awarenesstelephonic conversation with the CIFs to make them aware of the rewards they aregetting for their performances and to motivate them to perform to their utmostpotential and drive volume business for SBI Life so as to achieve maximumrewards. Also making note of suggestions or any problems they are facing rightnow while doing their business. On similar lines this contest was also for BranchManagers for rewarding them and steps followed were exactly the same. Thedetailed findings are given under Rewards and Recognitions under Analysis andFindings.

CIF are branch staffs of SBI and Associate Banks and cross-sell insurance productson behalf of SBI Life. For selling Insurance they need license and IRDA has theauthority for issuing license. For first timers CIFs need to give exam and pass thatexam for obtaining license from IRDA along with stipulated hours of training. Thelicense is valid for only three years. Over past few years a trend is seen that manyCIFs are unaware of their license expiry date and thus they get exited from thesystem. They are so large in numbers that they exceed CIFs added into system byhuge margin. Thus throughput of the system declines. Thus a telephonicconversation with CIFs was made to make them aware about their license beingexpired or on verge of expiring. Analysis is given under License Renewal Project.



e-Suraksha Plus plan is the new product launched on this year. Since it is an onlineplan, customers were facing many difficulties while filling up the online form. Themain task was to guide them and understand the responses given by the customersand suggest possible solutions or redirect them to some other alternative way out sothat to have a better customer relationships. Research was done on basis oftelephonic conversations with esteemed customers through lead generation in MIS.Detailed Analysis regarding this can be found under e-Suraksha CustomerCalling.

Personal research was also carried out in the area regarding number of CIFs for thetop honors who do among the best business so that they are recognized in theMDRT (Million Dollar Round Table) League. Every year Bancassurance Channelof SBI Life produces large number of MDRT CIFs which is globally recognized ashighest standard of business by a Life Insurance Agent. So from MIS reportaccessible found out the number contributed from each and every circle. DetailedAnalysis is given under MDRT Sorting.

To know about the reasons of Bancassurance Online (BAOL) not being usedwidely, primary research was required. The research was conducted in three phases.In the first phase, telephonic interview of 500 CIFs were taken. Since there were nopredetermined factors, open ended questions about issues being faced while usingBancassurance Online were asked. This gave insights about top of the mind issues.Also, it was observed how CIFs use the platform and the practical issues that existwere noted. The questions asked included the following points:

Usage rate of BAOL Problems faced in using BAOL Requirements in BAOL/ Suggestions

In the second phase, close ended telephonic interview of 100 CIFs were takenbased on the identified issues faced and the requirements of content in the onlineplatform, Bancassurance Online. This helped to find out what are the issues thatare also faced by CIFs when asked in particular. A calculator, Custom BenefitIllustrator (CBI), is provided as a tool which calculates the amount of premiumcustomer will have to pay based on the product, sum assured and the customer’sdetails. This calculator is of prime use to the CIF. Most CIFs might be usingBancassurance Online to use this tool. However, lot of other useful informationand reports are provided in the platform. In order to find out the awareness aboutother features of the platform, users were asked if they knew about all the features.This all are given under Banca Online Analysis.



4.1.2. Secondary Research: -

Before doing above activities, read about different Products in SBI Life throughBrochures given by the company.Gone through IC-33 manual which gave a lot of confidence to understand variousterminologies used in Insurance Industry which was completely new.Also gone through various reports on Bancassurance Channel to find out differentmodels followed in India and across the World.Along with that got accessed to various news and reports from IRDA to find outrecent channel performance decline and current trend going on regarding futurescope and penetration of Insurance in India.Also accessed information of comparison charts of SBI Life Products and theircompetitors from their Quarterly Magazine (e- Bandhan).Accessed several data about CIFs form MIS system of SBI Life and made adetailed study.The Banca Online Portal website was extensively browsed; all links and reportswere checked. This was done in order to personally observe the kind of issues thata CIF might face in accessing certain features or reports provided in the website.

4.2. SAMPLING

(i) Field Work- Sample size of 4 CIFs were taken who were questioned in details.

(ii) Rewards and Recognitions- Telephonic Conversations with CIFs and BranchManagers (BMs).

(1) JFM Contest for CIFsSample Size of the CIFs meeting the persistency criteria- 720Sample Size of the CIFs not meeting the persistency criteria- 659

(2) Branch Manager ContestSample Size of the Branch Managers called- 399

(iii)License Renewal Project- Sample Size for telephonic interaction with the CIFswhose licenses are about to expire- 196 in the Quarter 4(FY 2012-13) and 946 CIFsin Quarter-1(FY 2013-14). Sample Size of CIFs license already being expired- 104.

(iv)e-Suraksha Customer Calling- Sample size taken for customer calling as part oftelephonic conversation- 314.

(v) Banca Online Analysis- Sample size of 600 CIFs taken for understanding theproblems they faced in the portal. Sampling was done by accessing CIF Master Filefrom MIS of organisation where details about them were there.



4.3. DATA COLLECTION METHODS

4.3.1. Field Work: -

Primary Research was done by direct one to one conversation with CIFs whereopen ended questions were asked about to know in details about how theyapproach customers when they sell insurance, what are the problems they arefacing on ground level and any suggestions to improve the situation based on theirproblems. Also primary research was carried out in same fashion with BDMs whowere coordinating and supervising their works. Detailed interview were taken byasking them open-ended questions. Noted down the suggestions if any mentioned.All was documented which is available in Key Analysis and Findings-Section.Secondary Research was carried out where details of CIFs received from MIS ofthe organization and made detailed study of about CIFs and BDMs as availablefrom the Reports on SBI Life Intranet Portal mainly how they functions to havebetter knowledge before actual Field Visit which aided Primary Researchmentioned above.

4.3.2. Rewards and Recognition: -

Primary Research was done by telephonic conversations with CIFs and BranchManagers and the feedback or responses were noted. This research helped to gaininsights about the awareness about the rewards and how many were reallyinterested to work harder to achieve these rewards. It brought out the attitude andproblems of CIFs in better way by having detailed conversations.Secondary Research was done earlier by accessing and studying various types ofrewards the CIFs and Branch Managers were eligible for and structure of rewards.Some rewards were Quarterly Based whereas some rewards were given on basisof annual performance. Also Club Membership there is reward which is given atend of Financial Year based on bracket which they fall under. Also informationabout CIFs and Branch Managers lists were given from MIS data of organizationwhich were properly studied beforehand.

4.3.3. License Renewal Projects: -

Primary Research was done to find out how many of them actually renew theirlicense which expires after every 3years. This research was based on telephonicinterview of CIFs where their responses are noted regarding whether they say yes,no, not interested on awareness about their license which is about to expire. Ifthey are not interested the reasons are noted down. It helped to gain properinsights how many of them really interested with business they are doing onbehalf of SBI Life.Secondary Research was carried out to back above primary research. Data aboutthe CIFs were accessed from MIS of organization and studied in details. Also data



was there regarding their last license renewal date, date when their license isgoing to expire, contact numbers along with their BDMs contact number andname (if in case CIFs were unable to respond when call is made).

4.3.4. e-Suraksha Customer Calling: -

Primary Research was done regarding the problems the customer faces whilefilling up online form. Also some feedback or suggestions were noted related tothe product. This research was carried out by having a detailed telephonicconversation with the customers by asking them the issues or problems they faceswhile filling up form or anything related to product be it product knowledge, itsterms and conditions. Calling was done on behalf of SBI Life as SBI Liferepresentatives.

Secondary Research was carried out regarding detailed study of product which isSuraksha Plus, features along with terms and conditions etc. Also accessed to listsof Lead Customers from the MIS data.

4.3.5. Banca Online Analysis: -

Both primary and secondary data were used. Primary data was collected byconducting telephonic interviews of CIFs and during the field visit to variousbranches. Secondary data about details of CIFs was obtained from SBI Lifeoffice, it included:

CIF Code Name Phone number Circle/ Bank Area Age Time since CIF is associated with SBI Life YTD Rated Premium (March’13) collected

This all are given under Banca Online Analysis.

.



5. KEY TERMS RELATED TO PROJECT5.1. SURAKSHA PLUS

Suraksha Plus is a traditional, Non Participating, Non Linked Group Term AssuranceProduct provided by SBI Life. Suraksha Plus a pure term non participating product for alltypes of Groups such as Employer - Employee Groups, Credit Card or Banks or MutualFund Customer and any group of people sharing a common view, at a very affordablepremium wherein SBI Life aims at Protecting your members and their family under allcircumstances.

5.1.1. Eligibility Criteria for Suraksha Plus Plan: -

SBI Accountholder: - The customer opting for this plan should have anaccount in State Bank of India, also he or she should have the net bankingfacility.

Free from all the diseases: - During the time of taking up this plan, theperson should never had a heart problem, a stroke, paralysis, high bloodpressure, cancer, diabetes, raised blood sugar, kidney failure, liver failure,mental illness, tuberculosis, HIV infection or AIDS.

Should not be NRI/SEG: - Only Resident Indians having Savings BankAccount with internet banking facility are eligible for this scheme.Accountholders under NRE/NRISHG or Business/Loan/OC/OD or any otherrelated accounts are out of the purview of this scheme.

5.1.2. Key Features of the Plan: -

Simple, quick and hassle free online process: - Since it is purely an onlineprocess so a person willing to buy this plan need be able to visit any branches,rather it can be purchased through online only. Even the bond paper will alsobe coming into the customer’s email.

Insurance at Affordable cost: - The premium one has to pay for this policy forten years is very nominal and that too yearly.

Easy Payment Option: - Customers have to pay through the SBI net bankingaccount which is very safe but easier to pay it.

Enrollment based on Declaration of Good Health: - A customer is eligible forthis insurance plan only if he/she is mentally as well as physically fit duringthe time of taking this policy.



No Maturity or Surrender Benefit: - If a customer wants to surrender thepolicy, there is no surrender benefit in it. Also, there is no maturity benefit inthis policy.

In other words a customer is not entitled to get anything return after the termperiod of policy is over.

5.1.3. Boundary Conditions: -

Table 3: Plan Details of Suraksha Plus

(*Age as on last birthday)

Benefits of Suraksha Plus: -

Death Benefit: - In the Event of death of the Life Assured, the sum assuredwill be paid immediately. Suraksha Plus is offering accidental death benefit aswell as natural death benefit.

Online Term Plan: - Unlike any other plans of SBI Life, customers can buythis plan online without even going to SBI branches and visit SBI Liferepresentatives and also they do not require any medical certificate in order topurchase this product.

Grace Period: -

The Grace period under the plan is 30 years. If premium is not paid within thegrace period the policy lapse that is there will be no life cover once the graceperiod is over.

Revival Period: -

A nnualPremium Payment M ode

Sum AssuredPremium Payme nt Term 10 years

5/10 lakhs

Policy Term 10 ye ars

Fe ature18-45 ye ars

Para meterEntry A ge*

Maximum Cover Ceasing A ge 55 ye ars



The policy can be revived within 180 days from the first unpaid premium. Thepolicy can be reinstated on payment of all unpaid premiums along with theinterest at the rate prescribed by the company from time to time.

Cessation of Insurance Cover: -

The cover will cease on the earliest of: -

the Date of Lapse of the Life Cover

Member ceases to be a part of the group as defined in the scheme rules

The date of death claim has been admitted.

Free Look Period: -

If a customer is not satisfied with the terms and conditions of the policy you canreturn the policy within the 30 days from the date of receipt of the Certificate ofInsurance. In case of cancellation during Free Look Period, refund of PremiumLess Stamp Duty will be made.

Exclusion: -

In case the Life Assured commits suicide within one year from the Date ofCommencement of risk, the death benefits shall not be payable.

Nomination: -

Nomination is compulsory. The nominee shall be a person nominated by themember in accordance with the provision of section (39) of the Insurance Act1938 to receive the benefits under the scheme in the event of his/her death.

5.2. RINN RAKSHA

RiNn Raksha is among top and bestseller products of SBI Life. Everyone alwaysaspires to own his/her Dream Home! To fulfill this dream, an individual works towards itsystematically and stretches to acquire loans. To safeguard this liability, SBI Lifelaunched “SBI Life -RiNn Raksha”, a Group Credit Insurance Plan that assures thecustomer’s family gets the best and also enjoys the asset (Home) which he/she has solovingly acquired, without having to worry about the liability in case of any eventuality.

As India is a nation which is booming with high aspirations from millions of people andbuying Home is not only a necessity but today has become the pride factor! People arebuying homes( for investment) like never before as like gold it has good value andalways increases on time to time So real estate has seen a rapid growth with upward



projection of property prices especially in Tier-I cities (Metros) and Tier-II cities (Semi-Urban like Nagpur, Ahmadabad etc.).

Property prices are now over the roof so banks are offering Home Loans at specialinterest rates to woo customers and they have seen tremendous growth in Home Loanapplications over the last few years. SBI was offering Home Loans long way back. Butthere was liability factor that remain (Home is a biggest liability for middle and upper-middle class which forms large chunk of Indian Population) even if you buy a Homebecause you need to pay interest along with the money you have taken loan. Thus, SBILife started insuring Home Loans so that you can have a “Peace of Mind” not worryingabout liability. In other words, “SBI Life- RiNn Raksha” is the answer for your homeloan liability worries.

Key Features of RiNn Raksha: -

Cover can be availed for a Policy Term as low as 8 years and up to maximumperiod of 30 years.

Limited Premium Paying Option- 5 years

Up to 3 Co-Borrowers (including primary borrower) can be insured.

Tax Benefits* as per prevailing laws.

The premium is financed by bank.

Insurance cover that it protects works out to be less than Rs. 10 per day. Soprotection per day is less than cup of coffee and travel that people spends everyday!!

Family inherits the Home not Home Loan.



Table 4: Rinn Raksha Plan Details

5.3. BANCA ONLINE

Bancassurance Online (BAOL) is an intranet platform designed for those employees ofState Bank Group who are interested in Life insurance business. It is a single point ofgetting information for the Certified Insurance Facilitators (CIFs). It helps the CIFs tocommunicate the right information to the customers by giving them access to thefollowing features: -

Products: CIFs can get product snapshots and highlights

Download Center: Download product brochures and forms for proposal, claims,

policy servicing etc

CIF Zone: CIFs can get personalized reports for their business and performance.

They can login by entering their CIF code.

Latest Updates & Events: It gives updated information about new products, servicesand events.

Fund Details: Present and historic fund values for various products is shown

Cracking Competition: Information about the life insurance industry is shown and itallows to compare SBI Life products with competitors.

Branch Related Reports: Various useful reports can be downloaded

Appendix 3 shows a look of the existing home page(s) of Bancassurance Online.



Bancassurance Online (BAOL) is a very helpful tool provided that the CIFs are able toexploit all the features provided. It has been observed that the tool is not being usedwidely amongst the CIFs. It is imperative to promote this tool so as to ultimately promoteBancassurance channel of marketing SBI Life products and tap the huge potential thatexists due to the existing extensive network of State Bank Group branches all over thecountry.

5.4. ABOUT Z-CARDS

Z-CARD is the registered trademark for the foldable guide invented by GeorgeMcDonald when he was a travel writer and consultant for British Airways. McDonaldfound that traditional fold-out maps were too bulky to carry with him on travel researchtrips and wanted a more convenient solution. From this the Z-CARD was developed andlaunched in 1992, with the company as it looks today being founded in 2003. Since thenwe have been on a constant journey of development, taking Z-CARD Ltd from a single-product entity to a solutions-led agency focused on delivering high valuecommunications to an increasingly mobile audience. The Z-CARD was quickly adoptedas a marketing communications tool and reached such prevalence that the term z-card isnow used as reference to many z-folds or concertina card and not just those produced byZ-CARD Ltd. While Z-CARD pioneered the z-fold market from 1992, a number of othercompanies have since entered the market by producing their own take on the z-foldformat. The original inspiration for the product came from the familiar fold-out mapformat.

Z-CARD has won industry recognition for their products, with clients winning awardssuch as Euro RSCG's Heist Awards. Loughborough University developed the MathsCard—a classic Z-Card format that opens out to reveal an extensive list of pure mathsformulae—that also claimed top honors in the Direct Marketing category of the HeistAwards.

Different types of Z-Cards: -

1) Original Z-Card.

2) C-Fold.

3) K-Fold.

4) Book Fold.

5) Direct Mail.

1) Original Z- Card: - The Original Z-CARD is the ideal way to condenseinformation into a retainable and highly portable format. Most popular product



remains the 6-panel Z-CARD®. Perfect for all communications, there are manyoptions for customizing inserts and covers. These include:

Recycled or sustainable forest paper stocks.

Digital printing for cost-effective small orders.

Personalization options.

Cover extras - pockets, RFID, lenticular.

Z-CARD Specifications below are most popular Z-CARD sizes. There are manyoptions for customizing inserts and covers. The smallest cover size that is offered is48mm x 48mm and the largest is 150mm x 300mm. All sizes in between these arepossible.

4 panel Credit Card* 6 panel Credit Card*Cover: 85mm x 54mm Cover: 85mm x 54mmInsert: 234mm x 200mm Insert: 234mm x 300mm4 panel Pocket Card* 6 panel Pocket Card*Cover: 108mm x 78mm Cover: 108mm x 78mmInsert: 297mm x 420mm Insert: 297mm x 280mm

8 panel Credit Card* (* available in up to 13 panels)Cover: 85mm x 54mmInsert: 234mm x 400mm8 panel Pocket Card*Cover: 108mm x 78mmInsert: 297mm x 560mm

Figure 4: Original Z-Card layout

2) C-Fold: - The C-Fold Z-CARD is concertina folded and is a great lower costoption for conveying smaller amounts of information. It can be used for vouchers,



support banners, product information and much more. Customization optionsinclude:

Recycled or sustainable forest paper stocks.

Digital printing for small orders.

Cover extras - pockets, RFID, lenticular.

C-Card specifications below are most popular C-Fold sizes. There are manyoptions for customizing inserts and covers. The smallest cover size we offer is48mm x 48mm and the largest is 150mm x 300mm. All sizes in between these arepossible. (* available in up to 12 panels)

6 panel Credit Card* 8 panel Credit Card*Cover: 85mm x 54mm Cover: 85mm x 54mmInsert: 78mm x 400mm Insert: 78mm x 300mm6 panel Pocket Card* 8 panel Pocket Card*Cover: 108mm x 78mm Cover: 108mm x 78mmInsert: 99mm x 560mm Insert: 99mm x 420mm

Figure 5: C-Fold Layout

3) K-Fold: - K-Fold Z-CARD is the ideal format for delivering promotional couponsor vouchers. It is also one of the best formats for incorporating a responsemechanism, with options including tear-off panels and horse-shoe re-moist.Customization options include:

Tear-off vouchers/response formsPersonalizationRecycled or sustainable forest paper stocksCover extras - pockets, RFID, lenticular.

Below are most popular K-Fold sizes. There are many options for customizinginserts and covers. The smallest cover size we offer is 48mm x 48mm and thelargest is 150mm x 300mm. All sizes in between these are possible.



6 panel Credit Card* 8 panel Credit Card*Cover: 85mm x 54mm Cover: 85mm x 54mmInsert: 156mm x 400mm Insert: 156mm x 300mm6 panel Pocket Card* 8 panel Pocket Card*Cover: 108mm x 78mm Cover: 108mm x 78mmInsert: 99mm x 420mm Insert: 99mm x 560mm (* available in up to 13panels)

Figure 6: K-Fold Layout

4) Book Fold: - Z-Book and Z-Wrap formats open like a book creating a tactilemarketing tool that engages the end user. Each format contains a Z-CARD insertand can include:

A cover pocket - perfect for travel cards or hotel room key cards.A closing mechanism - the Z-Wrap has a wrap-around cover, hinged like abook, that holds contents safely inside when closed.

Below are most popular Book Fold sizes. There are many options for customizinginserts and covers, with a number of possible size variations.

Z-Book 6 panel Credit Card* Z-Wrap 6 panel Credit Card*Cover: 85mm x 54mm (closed) Cover: 85mm x 54mm (closed)Insert: 234mm x 300mm Insert: 234mm x 300mmZ-Book 6 panel Pocket Card*Cover: 108mm x 78mm (closed)Insert: 297mm x 420mm (* available in up to 13 panels)

Figure 7: Book Fold Layout.

5.5. ABOUT MDRT

Founded in 1927, the Million Dollar Round Table (MDRT), The Premier Association ofFinancial Professionals, is an international, independent association of nearly 38,000 ofthe world's leading life insurance and financial services professionals from more than 450



companies in 79 countries. MDRT members demonstrate exceptional professionalknowledge, strict ethical conduct and outstanding client service. MDRT membership isrecognized internationally as the standard of sales excellence in the life insurance andfinancial services business.

5.5.1. Mission: -

To be a valued, member-driven, international network of leading insurance andinvestment financial services professionals/advisors who serve their clients byexemplary performance and the highest standards of ethics, knowledge, serviceand productivity.

5.5.2. History: -

In 1927, 32 extraordinary life insurance producers, each of whom had sold at least$1 million of life insurance, dreamed of a forum dedicated to fostering a high-standard, professional approach to life insurance sales and service. Founded onthe belief that growth is a result of exchanging ideas, the concept was: "Toreceive, individuals must give." Out of this dream emerged MDRT – aninternational, independent association that represents the world's best salesprofessionals in the life insurance-based, financial services industry. MDRT, apositive influence in the life insurance industry, has developed a rich tradition ofsharing knowledge for the benefit of clients, prospects, producers and companies.

5.5.3. Code of Ethics: -MDRT members should be ever mindful that complete compliance with andobservance of the Code of Ethics of the Million Dollar Round Table shall serve topromote the highest quality standards of membership. These standards will bebeneficial to the public, and the insurance and financial services profession.

5.5.4. Strategic Plan:-MDRT has a strategic plan that it follows when developing new programs andbenefits for its members. The strategic plan contains nine goals and objectives toguide the organization in helping its members better serve their clients and learnfrom one another.

5.5.5. Executive Committee:-MDRT is governed and managed by a five-member Executive Committee dulyelected each year by the MDRT membership.

5.5.6. Court of the Table and Top of the Table: -Court of the Table and Top of the Table serve as additional incentives formembers to increase their levels of production. Court of the Table members mustearn three times the MDRT base production requirement, and Top of the Table



members must earn six times the base production requirement. Both Court of theTable and Top of the Table members can take advantage of additional memberbenefits provided exclusively to them.

5.5.7. Annual Meeting:-The MDRT Annual Meeting has been described as a one-of-a-kind event,unrivaled in the world of business. Every year, approximately 4,000 of the world'stop producers gather in a spirit of camaraderie for one of the greatest gatherings offinancial services professionals in the world. Annual Meeting attendees areexposed to some of the finest and most innovative sales ideas in the lifeinsurance-based, financial services business. The meeting offers about 100speakers during its motivational Main Platform presentations, educational FocusSessions and insightful breakfast and evening sessions. And, perhaps mostimportantly, members can network with other top financial services professionalsfrom around the world, building friendships that last a lifetime.

5.5.8. Top of the Table Annual Meeting:-The purpose of the Top of the Table Annual Meeting is to provide an annualeducational meeting for the exchange of advanced sales ideas and for thedevelopment of interpersonal relationships among leading financial producerswho are Top of the Table members. During the four-day meeting, about 40professional, nonmember and Top of the Table member speakers discuss subjectsof vital concern to those in the life insurance and financial services industry.

5.5.9. MDRT Experience:-The purpose of this event is to bring MDRT's Annual Meeting experience toproducers in other countries. This event, modeled after MDRT's prestigiousAnnual Meeting, delivers cutting-edge sales techniques and ideas, technicalinformation and motivational concepts for those in the life insurance and financialservices business. The MDRT Experience is open to both MDRT members andnon-members.

5.5.10. MDRT Foundation: -The MDRT Foundation is the philanthropic arm of MDRT. Since its formation in1959, the MDRT Foundation has granted more than USD 26 million to charitableorganizations serving people in 67 countries and all 50 U.S. states. The MDRTFoundation awards grants to charitable organizations that are empowering peoplein need in MDRT member communities worldwide. The grants given by theMDRT Foundation are distributed to organizations in which members have avested interest. Grant recipients have either been endorsed by an MDRT memberor receive money in honor of a member's volunteerism.



6. KEY ANALYSIS AND FINDINGS6.1. FIELD WORK

6.1.1. SBI, Carter Road Branch, Bandra: -

Reporting Person: - Mr. Ajay Singh (BDM)

Products on Demand on that branch: - Child Plan, Smart Performer.

Name of the CIF Present there: –Mrs. Hemlata.

Target Customers- Middle Income customers but mostly targeted upon HNI andNRI customers aged from 20 to 80 years.

Key Observations: -CIF is not motivated enough.Does not push for products to customers as CIF might not be interested.There was unawareness about new products launched by SBI Life when askedabout. Thus there was huge gap between knowledge about the Products.SBI Life conducts training for CIFs whenever there is new product launch orif there any modification about existing product. When the CIF questionedabout this fact responded negative. Thus CIF does not attend trainingproperly.CIFs are busy with their branch work and they are hardly focusing oninsurance policy selling.

6.1.2. SBI , Turnor Road Branch, Bandra

Reporting Person: - Mr. Ajay Singh (BDM)

Products on Demand: - Smart Performer.

Name of the CIF Present there –Mr. Ashutosh.

Target Customers- Middle Income customers but mostly targeted upon HNI andNRI customers aged from 20 to 80 years.

Key Observations: -CIF have the proper knowledge about the products and most of the customersare also loyal to SBI so, they can be easily convinced from the minimumeffort of CIF and they are ready to pay the premium of more than 2 lakhs.More HNI prospects are turning up for the insurance policy.



This one is very active CIF as judged through by having the knowledge ofcompetitors’ product and also maintains good relationships with thecustomers.

6.1.3. SBI, Naupada Branch, Thane

Reporting Person: -Yogesh Deoghare (BDM Region-IV THANE)Products on Demand: - Child Plan, Smart Performer.

Key Observations: -During interaction with BDM it was found out that new CIF are not doingbusiness as the old ones are doing. As per him only 40% new CIFs are doingbusiness. Most of business is driven by old CIFs.Heavy work load from Branch to do its own business so concentrating moreon Branch Business rather than cross-selling Insurance.Many CIFs are unaware about SBI Life products. Even if they are aware mostof times they cannot push for products due to lack of knowledge of othercompetitor products. They cannot make comparison so many customer turnsaway resulting in loss of business.SBI Life provides training for CIFs periodically about product knowledge orfor new products but many CIFs cannot attend that training due to lack oftime(huge pressure from bank).Money is not a motivating factor since having various incentives for everyquarter provided by SBI Life still many CIFs not willing to do business.

6.2. REWARDS AND RECOGNITIONS

6.2.1. For CIF: -

Brief Description:-

Calling was done as part of Reward Contest organized by SBI during Jan-Feb-Mar, 2013 (better known as JFM Contest/ New Year Hungama Contest). Themain objective behind calling was to monitor performance of CIFs as a SBI LifeRepresentative and appreciate them who have done considerable amount ofbusiness as pre-defined by SBI Life. Also another objective is to make themaware about the rewards as many CIFs do not know what is reward structurefollowed by SBI Life and to increase their performance by mentioning about extrarewards they will be eligible for if they achieve next immediate shortfall inbusiness. Calling was done in two parts:-(1) CIFs meeting the Persistency Criteria.(2) CIFs not meeting the Persistency Criteria.



Along with that parallel contest was going on regarding Annual Club MembershipRewards where CIFs were eligible for rewards according to various clubs asmentioned below in increasing order of rewards: -(i) AGM Club(ii) DGM Club(iii)GM Club(iv)CGM Club(v) MD Club

Persistency Parameter: -Persistency Parameter is most important criteria for qualifying for any reward.Premium as well as Policy Persistency of 50% is mandatory requirement. Itis calculated using simple mathematical formula:-

Premium/Policy Persistency= Premium/Policy Collected * 100 (in %)Premium/Policy Due

For Persistency Calculation, collectable Rated Premium at end of a ParticularQuarter and collected with an extension of 1 month after Quarter end shall betaken into consideration. For Example- For Quarter-1 contest collectable dues ason 30th June, 2012 and collected as on 31st July, 2012 shall be taken forpersistency percentage calculation (min. 50% required).

6.2.1.1. CIFs Meeting The Persistency Criteria: -

65%

35%

0%

Contest Total Calling= 720

Informed about Contest

Could not be informed

On Leave/Notwell/Language problem



Figure 8: CIF calling summary those who met persistency criteria

6.2.1.2. CIFs Not Meeting The Persistency Criteria: -Total CIFs called= 659 those who do not meet the persistency criteriain spite of eligibility for rewards in relation to amount of business donein particular quarter.

469

248

30

50100150200250300350400450500

Informed about Contest Could not be informed On Leave/Notwell/Language problem

Nu

mb

er

of

CIF

s

Summary of Calling






469

248

30

50100150200250300350400450500


Nu

mb

er

of

CIF

s

Summary of Calling






469

248

30

50100150200250300350400450500


Nu

mb

er

of

CIF

s

Summary of Calling




Figure 9: CIF calling summary those who did not met persistency criteria

Implications: -

In both the cases a large number of CIFs were not communicated. It mayhappen due to number of reasons. Those who were not picking up the callmight be busy with their work. Those who have been transferred to otherregions their contact numbers were not updated.Feeble responses from CIFs those who have not achieved persistency. Alsothose CIFs who met persistency very few of them really tracked their businessdetails to know about their rewards they are eligible for.Many CIFs were not aware of what is Persistency so they were made aware ofthis fact and the importance of it for eligibility of any rewards.Some were not interested to do more business citing reasons that it is time forAnnual Closing so they have to prioritize the Bank’s main business and toomuch pressure is affecting them to do Insurance Business.

6.2.2. Branch Manager Contest: -

Brief Description: -This contest was again launched during same period i.e. JFM by SBI to rewardthe Branch Managers who looks after Branch. The objective was to reward themon basis of performance their branch did on Insurance Business selling.

Sample Size- 659




Implications: -




Sample Size- 659




Implications: -




Sample Size- 659



Figure 10: Calling Summary for Branch Manager Contest

Implications: -

Those who were busy can be tried later as many may answer when they are free. Sothe calling can be done again at later to increase the Contacted Column.Here also due to transfer they cannot be contacted so there must be system in placewhere updating of contact details takes place.Those who were contacted were not aware of their reward structure. So there shouldbe a general awareness campaign before contest starts.



6.3. LICENSE RENEWAL PROJECT

Brief Description: -This Project was generally a sort of awareness campaign for CIFs. For becoming a CIFone has to give exam and obtain a license from Regulatory Body i.e. IRDA on successfulcompletion of exam. This license is valid for only 3 years and after that they have torenew their license. Most of CIFs that were interacted were not aware of their licenseexpiry and continue to do business even after that. It has been seen that throughput of thesystem decreases because of license expiry and thus less number of CIFs can do theirbusiness as compared to before. This is larger than New CIFs being joined in the system.Thus this may be one of reason why there is decline in performance of Channel.6.3.1. CIF whose license already expired: -

Figure 11: Calling Summary of CIFs whose license already expired

Figure 12: Break-Up of Responses of CIFs Interested in Renewing License















Table 5: Region-wise break up of Interested CIFs for renewal of license

Figure 13: Break-Up of Responses of CIFs Not Interested in Renewing their License

Implications: -

Those CIFs whose licenses were expired many of them are not aware abouttheir license expiry. They need to be told that license renewal is mandatory toconduct business.Those CIFs who did not respond the reasons were: - wrong number ortransferred, switched off, not reachable, temporary out of service etc.Those CIFs who were really interested to renew their license after being madeaware have given reasons as based from Figure 12. Also the break-up ofInterested CIFs according to Circle wise is given under Table 5.Those CIFs who were not at all interested the responses are shown in Figure13. Main reasons seen here is huge pressure from Banks to do its ownbusiness which led to Non- Interested in doing cross-selling in InsuranceBusiness.





Implications: -






Implications: -




6.3.2. CIF whose license about to expire: -6.3.2.1.License about to be expiring during JFM Period (Quarter 4, FY 2012-13)

Figure 14: Calling Summary of CIFs license about to be expiring in Quarter-4 FY 2012-13

6.3.2.2.License about to be expiring during AMJ Period (Quarter 1, FY 2013-14)

67%

2%

23%

8%

Total CIFs Called= 198

Informed

Not Interested

Busy/WrongNo/Switched off

Not Picking up Call

0

20

40

60

80

100

120

140

Informed NotInterested

Busy/WrongNo/Switched

off

Not Picking upCall

Num

ber o

f CIFs

Status of Call Summary


Series1



Figure 15: Calling Summary of CIFs license about to be expiring in Quarter-1 FY 2013-14

52%

48%


Informed

Not Informed

495

451

420

430

440

450

460

470

480

490

500

Informed Not Informed

Numb

er of

CIFs

Status of Call Summary


95%

5%

0%

Total CIFs Informed= 495

Interested

Not Interested

Not UnderstandingLanguage



Figure 16: Break-Up of Reasons for those CIFs that were informed

468

25 20

50100150200250300350400450500

Interested Not Interested Not UnderstandingLanguage

Num

ber o

f CIF

s

Reasons

Total CIFs Informed= 495

15%

11%1%

10%

3%

13%

41%

6%

Total CIFs Not Informed= 451

Switched off

Busy Tone

Incoming Call Facilitynot thereNo. does not exist

Temporary Out ofServiceNot Picking up Call

Wrong No.

6947

4

47

12

58

186

28

020406080

100120140160180200

Num

ber o

f CIF

s

Reasons

Total CIFs Not Informed= 451



Figure 17: Break-Up of Reasons for those CIFs that were not informed

Implications: -

There were also many cases in these where CIFs were unaware about theirlicense expiry in near future date.Those CIFs who were informed majority of them were interested to renewtheir licenses.Those CIFs who were not informed has mostly their contact details wrongupdated. Also numbers being switched off caused considerable amount ofbeing not communicated.Reasons for not being informed are given in Figure 17.Not Interested cases being few were among either they were retired or aboutto retire or not getting the reward as expected and huge pressure from banks todo business were some reasons.

6.4. SURAKSHA CUSTOMER CALLING

Brief Description: -The main objective behind calling customers or lead suspects to convert them intoprospects. The calling was done to close the deal of buying an Online Term Plan which ise-Suraksha Plus (For more details refer to Key Terms Related to Project). Also byfeedback taken from customers to change the design of Online Layout of filling upProposal Form was another objective. So Customer Centricity was kept at top most.

13%

12%

5%9%

2%

17%8%

15%

7%1%

2%

9%

Total Customer Called= 314

Browser Problem

Not Picking up Call

Not Interested/Wants tocancel policy

Unreachable/Wrongnumbers/No. does notexist



Figure 18: Summary of calling Customers for eSuraksha Plan

Table 6: Break-Up Number as well as Percentage-wise distribution of Calling Summary

40 39

17

28

7

53

24

46

21

5 5

29

0

10

20

30

40

50

60

Num

ber o

f Cus

tom

ers

Summary of Calling

Total Customer Called= 314

Total Customer Called 314 %Browser Problem 40 12.74Not Picking up Call 39 12.42Not Interested/Wants to cancel policy 17 5.41

Unreachable/Wrong numbers/No. does not exist 28 8.92

Call after two days/one week 7 2.23

No Query/Product Brought,no issue 53 16.88

Tick in one of three options 24 7.64Other Issues 46 14.65 Complete details of product 21 6.69Have not applied for 5 1.59 Language Problem 5 1.59No Number 29 9.24Total 314 100



Implications: - Total customer called= 314. Customer using different browser (mostly Chrome) and having problem=40. 17 customers are either not interested/already taken product want to cancel. 28 customers are either unreachable/wrong numbers. 7 customers requested calling after two-three days due to busy schedule. 53 customers have either no query or already brought product (no issues). 46 customers have various issues ranging from not having SBI A/C to claim process

to enquiring for Mediclaim/Health Insurance or variable amount policies (1 customerdoes not want any phone call from SBI Life).

Tick in one of three options in Step2 not going to Step3=24. Wants complete details of the product in mail=21. 5 customers haven’t applied for this product. (2 of them either friend/husband applied

for them and not having any clue about the product). 5 customers were having problem of understanding English Language. 29 customers did not provide any number. 39 customers did not pick up any call.

6.5. MDRT SORTING

Brief Description: -Details about MDRT are given under Key Terms Related to Project. The mainobjective for this Project is to understand how many of active or performer CIFs getsrecognized for MDRTs which is highest level of recognition for anyone doing InsuranceBusiness. Also to get an idea how much Bancassurance Channel contributed to MDRT ascompared to other Channels of SBI Life.

Figure 19: SBI Life Channel-wise contribution of performer CIFs to MDRTs (FY-2013-14)

1105, 68%

441, 27%

38, 2% 45, 3%

MDRT Contributions

SBI

ASSOCIATE BANKS

Corporate Solution

RRBs

Total=1629



Figure 20: Break-Up of SBI Circle-wise contributions to MDRTs

Figure 21: Break-Up of Associate Banks Circle-wise contributions to MDRTs

Implications: -Total Forms received in bulk= 2000 approx.Total forms received in Bancassurance Channel(SBI + Associate Banks + RRBs)1629-38= 1591 (approx. 97.67%)SBI contributed 1105 MDRT CIFs (FY 2012-13) = 68%.Associate Banks (ABs) contributed 441 MDRT CIFs=27%.State Bank Group (SBI + ABs) contributed (1105+441) 1546= 95%.Corporate Solutions (another channel of SBI Life) contributed only 38 CIFs=2%.

91, 8%

42, 4%69, 6%

120, 11%

52, 5%

41, 4%

74, 6%132, 12%

100, 9%

13, 1%

89, 8%

131, 12%

76, 7%75, 7%

Total=1105AHMEDABAD

BANGALORE

BENGAL

BHOPAL

BHUBANESHWAR

CHANDIGARH

CHENNAI

DELHI

HYDERABAD

SBI

142, 32%

140, 32%

59, 13%

52, 12%

48, 11%

Total=441

SBBJ

SBH

SBM

SBOP

SBT

ASSOCIATE BANKS



Major revenue of business is due to Bancassurance Channel of SBI Life (Based onnumber of MDRT CIFs contributed by State Bank Group).From SBI a total of 21 CIFs have made it to COT, in Associate Banks a total of 7CIFs have made it to COT.From North East Circle of SBI 1 CIF has made it to TOT.Largest numbers of MDRT CIFs were contributed from Delhi (132) and Mumbai(131) Circles of SBI (approx 12% each).After that SBI Bhopal Circle contributed to maximum number of MDRT CIFs (120-i.e. approx 11%).Least number of MDRT CIFs are from SBI Chennai Circle (13 i.e. only 1%) andfollowed by SBI Chandigarh (41) and Bangalore (42) Circles (i.e. approx 4%).Highest contributor to MDRT CIFs from Associate Banks is State Bank of Bikanerand Jaipur (SBBJ – 142) (i.e. approx 32%) followed by State Bank of Hyderabad(SBH -140) (approx 32%).Least contributor is State Bank of Travancore (SBT-48 i.e. approx 11%) followed byState Bank of Patiala (SBOP-52 i.e. approx 12%) and State Bank of Mysore (SBM-59i.e. approx 13%).

Key Findings: -

After this some feedback was taken in general from Bancassurance Staffs regarding theMDRT produced every year so they said there is some decline over past few years. Thisyear it contributed only 1629 MDRT CIFs where it used to be more than 2000 two yearsback. So there is again a reason in decline in Channel Performance. So by this activityalso it came to know that many potential CIFs (active/performer CIFs) are not able tobecome MDRTs. Main reason as got to know from feedback is Persistency Parameterwhich many are not either aware of or many may do considerable amount of business butfail on this parameter. So even if many Performer CIFs do good amount of business butfail on Persistency (Policy as well as Premium) so only a handful of them becomeMDRTs. Thus considering a huge channel like Bancassurance and huge number of CIFsits MDRT Contribution is almost nil.

6.6. BANCA ONLINE ANALYSIS

6.6.1. Telephonic interviews (phase 1) ( Overall Statistics)

Table 7: Overall Statistics Telephonic Interviews (phase 1)



Top of the mind issues: -

Accessibility/ Slow:-Users felt that the portal does not open at times , it is slow including businessillustrator, takes time to download.

Late updates:-Users felt that the reports, including persistency report, are not updated.Receipts of premium not updated until last day

Top of the mind suggestions: -

Business Details:-CIFs want breakup of policies done and eligibility of rewards accordingly.NAV details:-

Historical NAVs and Comparative charts are required by CIFs.Surrender value:-

Amount recoverable if a particular policy is surrendered is requiredPolicy status:-

Status of policy should be shown before the time of acceptance/ rejectionFeedback/ Notification

Notifications of product updates, renewal time of a policy etc, sent by sms.

Figure 22: The Non–Users of BAOL



Top of the mind issues & suggestionsIt is necessary to find out the proportion of CIFs who are not using BancassuranceOnline at all and also the reasons for the same.

Table 8: Non-User Summary

32% of the CIFs are not using BAOL presently. This not evenly distributed. Thenumber of non-users is much more amongst the non-performer CIFs and also theCIFs of Associate Banks.Figure 23 shows percentage of non-users of BAOL in Non Performer categoryand Performer category. Figure 24 shows percentage of non-users of BAOL inAssociate Banks (AB) and SBI Bank.

Table 8 shows the reasons of Bancassurance Online not being used by 32% ofCIFs.

Figure 23: Break-up of Non-User CIFs into Figure 24: Break-up of Non-UserPerformer and Non-Performer CIFs from SBI and Associate Banks



Figure 25: Different Reasons for not using Banca Online Portal by CIFs

Unawareness about the platform is the prime reason amongst the CIFs not usingof BAOL.

Observations based on Performance

Table 9: Break-Up of Observations based on Performance



Figure 26: Top of mind issues and suggestions based on rated premium

Implications: -

Highest frequency of use for the CIFs in rated premium >50 lakhs category. CIFs in category with rated premium > 50 lakhs have details of business as

the top of mind suggestion. Non-performers (=1 lakh rated premium) complaint most about speed.

Observations based on Age Group

Table 10: Observations based on Age Group



Figure 27: Top of mind issues and suggestions based on age group

Implications: -

CIFs of higher age group(s) have higher average premium and want morebusiness details.CIFs below 30 and low average premium have primary concern in the policystatus.

Observations based on number of years of association with SBI Life

Table 11: Observations based on number of years of association with SBI Life



Figure 28: Top of the mind issues and suggestions based on years of association

Implications

CIFs associated with SBI life for 2-5 years, have the highest average ratedpremium and ask for more business details.

CIFs associated with SBI Life for longer time but having lower YTD Ratedpremium (march’13) have felt maximum problem due to speed of theplatform.

6.6.2. Visit to IT Department, SBI Life Office (Belapur)

A visit was made to the IT department at SBI Life office in Belapur was made todiscuss the feasibility of recommendations. This visit was generally done on anobjective that there were some suggestions based on feedback from calling CIFs.In a meeting with Mr Randip Basu (IT Deptt. Head) the following were discussed:

Formal contact shall be made with various departments responsible for thereports which are not working. Need of each report shall be reassessed andthen uploaded accordingly.

A new design for the home page of Bancassurance Online was suggested andaccepted. The new design has been shown. Please refer Appendix 3 andAppendix 5.

A new design for Custom Benefit Illustrator was suggested in which thecustomer’s details which are common for all products shall be taken once and



then the product shall be chosen, this shall help to save time by removingredundancy when a customer is being shown possibility of multiple products.

It was suggested that Custom Benefit Illustrator’s software should be madedownloadable on the platform. Whenever a new version is uploaded, anotification can be sent to CIFs to upgrade. The file size is approx. 30 MBhence, it was noted that the State Bank server speed may get slow whenmultiple downloads occur. Therefore, a suggestion was made that thedownload could be allowed after 6 PM which would reduce load on StateBank server during busy hours.

Automated welcome message can be sent to CIFs (personalised with nameand CIF code).

The problem with the tool ‘My Customer Portfolio’ was discussed, that it wasnot working properly.

CIF Zone can have a view if CIFs business done the way it is shown in ‘aaramreports’ (which are a part of Management Information System at SBI Life, notaccessible to CIFs but only to SBI Life staff).

The ‘proposal tracker’ link shall be given in Bancassurance Online to allowCIFs to track policy status.

A suggestion was made by IT department that Custom Benefit Illustrator ifhosted on State Bank server instead of SBI Life server then the problem ofspeed shall be reduced as currently bandwidth size of SBI Life server reducesthe speed.

Different queries of CIF shall be mailed to [email protected] which canthen forward the queries of various departments responsible.



7. DESIGNING OF Z-CARDS7.1. RINN RAKSHA Z-CARD: -

For RiNn Raksh the thinking was based on regarding the shape and size of Z-Card whichwas crucial in designing. For an idea, an access was made to last year simple design of Z-Card as a sample to study upon. From there it was got to know how much informationwould be needed to be included in Z- Card so that everything in short is covered.Keeping in mind of above things the challenging task was to think of some innovativeshape that will attract the attention of anybody using that card. As RiNn Raksha productwas based on securing the Home Loans an idea struck that shape should be in size of aHome. The complete design is given in Appendix 2. (Details about RiNn Raksha Productis given in Key Terms Related to Project).

7.2. SMART CELEBRATIONS REWARD OPTIMIZER: -

As based on previous experience of calling CIFs as a part of telephonic conversation itwas implied that many CIFs were unaware about their reward structure. This led to themaking of Smart Celebration Reward Optimizer to help CIFs plan their business quarter-wise as well as annually. For designing Smart Celebration Contest research was done bygetting the knowledge about Z-Cards from its website and also from the previous year Z-Card design. ( For Z-Card Details refer to Key Terms Related to Project).In Smart Celebration Reward Optimizer the thinking was based upon two things-designing the structure for Reward Optimizer so that all the rewards get into that structureand then designing the illustrator so that CIFs could avail maximum rewards by doingcertain amount of business. After so much of brainstorming, an idea came up with theoptimizer wheel that is mentioned in Appendix 1. The proposed layout will be twolayered structures (in the shape of circle) where one will rotate above the other. Onecircle will be giving details about the various rewards structures a CIF can get per quarterand another circle will contain the illustrators along with the various awarenesscampaigns on the back side of that circle.



8. LIMITATIONSAs undergoing tasks related to project there were indeed many limitations which might haveinterfered in actual results. Also some limitations have been listed down here is due to systemitself. Thus on summing it up some of them has been mentioned below: -

Due to telephonic way of conducting interviews, the responses were recorded may not be asaccurate as it would be in case of questionnaire format.

Some of the respondents may have been biased while disclosing the issues they have in usingBancassurance Online. The analysis has been conducted assuming that the responses givenwere correct.

The sample size of calling CIFs or Customers may not represent the complete population.

Due to huge pressure from Banks to do their business CIFs do not cross-sell much.

In spite of many rewards and recognition programs from SBI Life many CIFs are notinterested to do business even if they have time. They are happy with Bank’s business. Thusit may be seen that money is not a motivating factor.

Many CIFs cannot be tracked because they get transferred often and their mobile numbersare not updated with SBI Life.

Due to transfer CIF does not feel motivated to do business in new surroundings. Those CIFswho are there in rural areas branch do very little business due to poor demand.

Less co-ordination of CIF with BDM is also a major limitation. Often BDM cannot trackindividual CIFs as they continuously go on field visit and training programs.

Less awareness of Banca Online Portal which is exclusively dedicated to CIFs for any typeof enquiry related to Insurance Business. Less use of technology is also a major limitation.

Designing Z-Cards is purely subjective to Perception that varies from Individual toIndividual. Thus the design may or may not be similar to some other perceptions.



9. CONCLUSIONS9.1. About Banca Online Intranet Portal

Unawareness about the portal is the prime reason for less use of BancassuranceOnline. Also, amongst the user CIFs, there is unawareness about some of the existingfeatures of BAOL. It is required that an initiative be taken so that awareness about theexistence of the platform and also its features be spread to all the CIFs.

CIFs looking for specific information on the platform are not able to find it. Thepresent design of the platform BAOL is not user friendly to navigate. This acts as abarrier to retrieve the required information quickly. There is unawareness about somefeatures and reports offered in the platform.

Some of the banks of State Bank Group may have slower server speed, due to whichaccessibility issues come up. Custom Benefit Illustrator and other calculators could beprovided in downloadable form on BAOL.

The policy details required by CIFs are available on SBI Life website (sbilife.co.in)under the policy tracker link. A link to the same can be added in BAOL. Currentdesign of custom benefit illustrator and other calculators is more time consuming.

The problem of slow speed of website is not there in every branch. It may dependupon SBI Bank server and connectivity speed in a particular branch.

9.2. About Calling CIFs for License Renewal and Reward Recognition Awareness

Many CIFs were unaware of their license renewal due to less communication fromBDMs.During calling most of CIFs’ contact number from lists given in excel sheet werewrong. So they could not be communicated. Apart from this there were many CIFswhose numbers cannot be reached due to many reasons (temporary out of service, notreachable, switched off etc.)Many CIFs were not aware of Reward they were eligible for. Most of them had noclue what persistency is all about and had to be explained as it is most crucial for anyreward.Due to less use or unawareness of “Banca Online Portal” whatever may be the reasonCIF could not access their information like reward points and rewards them beingeligible.



Many of them wanted to do business and earn reward points and rewards from SBILife but due to huge pressure from SBI and Associate Banks to do their business arehampering them to go extra mile!Information about the CIFs whose licenses need to be renewed should be passed on toBDM. Even the rewards and incentive details of the CIFs should be communicated totheir respective BDMs because it is easy to communicate with BDMs rather than totrack CIFs for passing on the information.

9.3. Designing Z- Cards

Design in any form is not as easy as there are many ideas but few to implement.Innovation comes from hard work as there is lot of rejections before actual design isapproved. So one must not give up and continue thinking process to be an innovator.Z-Cards should match with product theme you are making. For example in RiNnRaksha a product from SBI Life to insure home against loan so design was based onstructure of home (theme we got from product features).

9.4. Suraksha Plus project

While telephonic conversations with the Customers from South region especially,there was a communication gap in the sense that they do not understand Hindi orEnglish language.Maximum of the customers those who are not interested were either expectingmaturity benefit.The customers who switched to other vendors were disappointed with the SBI Lifebecause they were awaiting responses from SBI Life representative.Customers were also complaining that information about the browsers (that need tobe used for filling up the form to reach payment gateway) were not visible to themand for that reason they were trying to go by Google Chrome browsers (number ofusers are mentioned in the figure).



10.RECOMMENDATIONS10.1. Banca Online Portal

Awareness campaign about the portal can be distributed in various State Bank Groupbranches in form a single page flyer. Appendix 4 shows a proposed design for thesame.

Design of Bancassurance Online home page(s) need to be enhanced so as to avoidless useful content on home page and useful links should be included. A design hasbeen proposed which eliminates the need of choosing a circle (or associate bank)when non circle (or associate bank) specific information is required. The proposeddesign for home page has been shown in Appendix 5.

An interactive tour to Bancassurance Online can be provided as a link for the CIFswho are not fully aware about all the feature of the intranet platform BancassuranceOnline. A proposed tour has been designed in Microsoft PowerPoint presentationform, a screenshot of the same has been shown in Appendix 6.

A ‘welcome message’ for new CIFs can be sent to their emails at the time of gettingassociated with SBI Life. This message can also tell about features of BAOL. Aproposed design of such a message has been attached as Appendix 7.

Design of Custom Benefit Illustrator needs to be enhanced so as to make it timesaving. The new design may take the customers information (which is required formost products) first and then allow to choose a product. This shall removeredundancy when same customer is being allowed to choose from multiple products.It can also be provided in downloadable form.

Business details including number of policies done and eligibility for rewards shouldbe provided in CIF Zone.

10.2. CIF Calling for Renewal and Reward Recognition Awareness

CIFs not picking up call/not reachable/switched off/busy tone can be tried again bycalling as many may respond now. Not interested CIFs (except retirement reason)may be motivated by their respective BDMs.

Among wrong number at least 70-80% is transferred so data may be updated fromprevious branch or from branch they joined recently.

Message may be delivered in mail or through SMS to CIFs prior to two monthsadvance of renewal due date.



Many times during calling it is seen that BDM does not co-ordinate with CIFs. Sowhen CIF gets transferred or when CIF from other region joins then BDM has no cluewhich CIF has been transferred or joined. There need to be more co-ordination ofBDMs and CIFs.

BDM has got list of CIFs whose license is going to expire much beforehand. But stilldue to above reason CIFs are unaware. So BDM needs to make them aware of theirlicense expiry date prior to two months.

From CIF end they need to register their mobile number if they are changing theirnumbers on event being transferred. Also if they are changing their mobile numbersthey need to inform SBI Life office regarding the same. So a Circular regarding thiscan be sent to CIFs.

Most of them could not be contacted (Approx. 35% in case of MDRT CIFs JFMContest and 40% in case of Branch Manager Contest). The main reason beingtransferred so if there is a system being in place like updating of mobile numbers ofthose who are transferred then process of information flow becomes efficient.

It is better to inform them through mails or through SMS so that they can receiveinformation which will be handy for them.

All these information are given in Banca Online Intranet Portal but still CIFs do notaccess this portal so this portal should be highlighted for its maximum usage by ashort demonstration of portal to CIFs.

Use of Z-Cards for knowing about different rewards structure.

10.3. Suraksha Plus ProjectIt should be clearly mentioned on website regarding access to this plan can be onlythrough Internet Explorer browser version 8 and Mozilla Firefox browser version15.0,16.0 or 17.0.

Regarding “Need Advice” option, its description should also be there on top of thepage so that customers having difficulty in understanding the plan should put tickmark under this option.

Life Insurance Cover of this plan should extend from 10 years to 20 years termpolicy.

‘Take a tour’ animation can be put up for showing process flow of filling up of formso that customer can understand and fill up accordingly.

Suraksha Plus Online plan should be redirected from sbilife.co.in in order to makethem easy to go through the process of buying.



11.REFERENCESBorislav Kolaric, Leposava Grubic Nešic, Robert Petrovic and Slobodan

Radojcic (2012), “Employee Perceptions of the Efficient Application of the

Intranet in an E-Business”. International Journal of Management Vol. 29 No. 4Dec 2012

Ajai Kumar Singhal and Rohit Singh (2010), “Bancassurance: Leveraging on the

Synergy between Banking and Insurance Industry”. The IUP Journal of Risk &

Insurance, Vol. VII, Nos. 1 & 2, 2010

Mark Teunissen (2008), “Bancassurance: Tapping into the Banking Strength”.

The International Association for the Study of Insurance Economics 1018-5895/08.

Bill Rogers (2001), “Get Ready for Next Generation Intranet”. Interactive Week;3/26/2001, Vol. 8 Issue 12, p77, 1p

http://www.sbilife.co.in/sbilife/content/home.

http://www.sbilife.co.in/sbilife/images/File/documents/Annual_Report_2011_12.pdf.

http://www.sbilife.co.in/sbilife/content/8_0.

http://www.zcard.co.uk

IC-33 study text for Pre-recruitment Qualification of Life Agents.

A. Karunagaran, “Bancassurance : A Feasible Strategy for Banks in India ?” Reserve Bankof India Occasional Papers Vol. 27, No. 3, Winter 2006.



12.APPENDIX1. Smart Celebration Reward Optimizer Design: -

(i) This will be right on the top. It will rotate on a similar circle below. Below one will befixed.

(ii) Below Circle Top Part: - It will contain all illustrators which will be a sort of BusinessPlanner for CIFs for planning their business not only quarterly but also annually so thatthey can optimize their rewards. They can also see difference between amounts ofrewards according to difference of business in thousands.













(iii)Below Circle Bottom Part: - It will contain essential information which will be usefulfor CIFs.

All illustrator will be shown here withincreasing amount of business annuallyand accordingly Rewards that a CIF willbe eligible for.



2. RiNn Raksha Z-Card Design: -

i. Front part of Rinn Rakhsa is given below:

ii. On the back side it will look like the figure given below



3. Suraksha Plus New Layout

The new layout was designed according to feedback received from the customers intend tobuy this plan but was having issues while filling up the form. Earlier ther was separate NeedAdvice column which was incorporated in above design. Because of customer clicking inNeed Advice more frequently without reading properly the payment page did not crop up andthus the website does not redirect the page to Payment Authentication Gateway.



4. Current Bancassurance Home Page screen shots

After choosing a circle or an associate bank to which the CIF belongs, the following

home page occurs: -



7. Proposed flyer for awareness campaign



5. Proposed Home Page design



6. Proposed online tour of BAOL



7. Proposed welcome message for new CIFs

Welcome Message

Dear _________

Congratulations on becoming a CIF! We are pleased to have you as a part of SBI Life family.SBI Life has a wide range of life insurance products to cater to the needs of all customers.We are confident that you shall be able to assist your clients in choosing the right product forthem. Our complete support in doing so shall be there with you at all times.

We hope that you will enjoy working with us and feel free to revert back to us in case of anyneeds in future.

Bancassurance Online

An intranet portal has been developed by SBI Life for your benefit. It will help you tocommunicate faster the right information to your customers and therefore improve customersatisfaction. You can access Bancassurance Online through useful links on the State BankTimes website.

At Bancassurance online, you will have access to the following features:

CIF Zone: Get personalized reports for your business and performance. Get access to hotleads! Just Login by entering “CIF<<your CIF Code>>”.

Latest Updates & Events: Get updated information about new products, services andevents.

Products: Get product snapshots and highlights.

Fund Details: See present and historic fund values for various products

Download Center: Download product brochures and forms for proposal, claims, policyservicing etc.

Cracking Competition: Get to know about the life insurance industry, compare SBI Lifeproducts with competitors and lot more

Branch Related Reports: Download various useful reports and stay updated.

Contact List: Get all the relevant contacts in one place.

Contact Us

For any queries, feel free to send us an e-mail at this id: [email protected]