MBA Summer Project On HDFC Standerd Life Insurance
MBA Summer Project On HDFC Standerd Life Insurance
MBA Summer Project On HDFC Standerd Life Insurance
com
HDFC Standard Life Insurance Company Ltd. is one of India's leading private
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), India's leading housing finance institution and a Group
Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per
cent of equity in the joint venture.
HDFC is India leading housing finance institution and has helped build more
than 23, 00,000 houses since its incorporation in 1977.
In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.
As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The
depositor base now stands at around 1 million depositors.
Rated AAA by CRISIL and ICRA for the 10th consecutive year
Stable and experienced management
High service standards
Awarded The Economic Times Corporate Citizen of the year Award for its
long-standing commitment to community development.
Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006
at the Money Marketing Awards, and it was voted a 5 star life and pensions
provider at the Financial Adviser Service Awards for the last 10 years
running. The '5 Star' accolade has also been awarded to Standard Life
Investments for the last 10 years, and to Standard Life Bank since its
inception in 1998. Standard Life Bank was awarded the 'Best Flexible
Mortgage Lender' at the Mortgage Magazine Awards in 2006
HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a
joint venture between Housing Development Finance Corporation Limited (HDFC
Ltd.) India and UK based Standard Life Company. Both the joint venture partners
being one of the leaders in their respective areas came together in this 81.4:18.6 joint
Venture to form HDFC standard life insurance company limited.
The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has given the
company new directions and has helped the company achieve the status it currently
enjoys. HDFC Standard Life brings to you a whole range of insurance solutions be it
group or individual or NAV services for corporations, they can be easily customized
as per specific needs.
HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by
March'2007. The gross incomes standing at a whopping Rs. 2, 856 crores, HDFC
Standard Life Insurance Corporation is sure to become one of the leaders and the first
Preference for any life insurance customer.
The Bancassurance partners of HDFC Standard Life Insurance Co Ltd are HDFC,
HDFC Bank India Limited, Union Bank of India, Indian Bank, Bank of Baroda,
Sarawat Bank and Bajaj Capital.
The premium payment options available to the customers vary from online payment
to direct desk payments at the HDFC Standard Life Branches, by courier services or
The lapsation and renewal policy of HDFC Standard Life are clearly defined on the
official website. Online renewal forms are also available. For any change in personal
details like the contact details or the nominee of the policy or policy benefits, online
servicing is also available. Even the claim procedure has been simplified since affect
of the loss life is irreparable and is thus fully understandable at HDFC Standard Life.
A completely hassle-free process has been formulated to provide maximum
convenience.
HDFC Standard Life first came together for a possible joint venture, to enter the Life
Insurance market, in January 1995. It was clear from the outset that both companies
shared similar values and beliefs and a strong relationship quickly formed. In October
1995 the companies signed a 3 year joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further strengthening
the relationship.
The next three years were filled with uncertainty, due to changes in government and
ongoing delays in getting the IRDA (Insurance Regulatory and Development
authority) Act passed in parliament. Despite this both companies remained firmly
committed to the venture.
In October 1998, the joint venture agreement was renewed and additional resource
made available. Around this time Standard Life purchased 2% of Infrastructure
Development Finance Company Ltd. (IDFC). Standard Life also started to use the
services of the HDFC Treasury department to advise them upon their investments in
India.
Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake
in HDFC Bank.
Their ambition from the beginning was to be the first private company to re-enter the
life insurance market in India. On the 23rd of October 2000, this ambition was
realised when HDFC Standard Life was the first life company to be granted a
certificate of registration.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard
Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this
is the maximum investment allowed under current regulations.
HDFC and Standard Life have a long and close relationship built upon shared values
and trust. The ambition of HDFC Standard Life is to mirror the success of the parent
companies and be the yardstick by which all other insurance companies in India are
measured.
HDFC Standard Life Insurance Company Limited is one of India's leading private life
insurance companies offering a range of individual and group insurance solutions. It
is a joint venture between Housing Development Finance Corporation Limited
HDFC Ltd. as on December 31, 2007 holds 72.38 per cent of equity in the joint
venture. HDFC Standard Life's Product portfolio comprises solutions, which meet
various customer needs such as Protection, Pension, Savings, and Investment.
Customers have the added advantage of customizing the Plans, by adding optional
benefits called riders, at a nominal price. The company currently has 21 retail and 6
group products in its portfolio.
HDFC Standard Life maintains very high professional standards during product
offerings by providing sound financial advice, efficient post-sale service, and
immaculate financial security. Ongoing training for conventional products, and
specialized training, for unit-linked products, for its financial consultants, has also
helped its customers choose the product, best suited for their needs.
HDFC Standard Life operates across more than 726 cities and towns of the country
supported by its strong network of more than 1,45,000 Financial Consultants. HDFC
Standard Life also has more than 383 corporate agents and other sales intermediaries
including banks for distribution of insurance products.
May, 2008
Received PCQuest Best IT Implementation Award 2008
HDFC Standard Life received the PCQuest Best IT Implementation Award 2008 for
Consultant Corner, the applications for its financial consultants, providing centralized
control over a vast geographical spread for key business units such as inventory,
training, licensing, etc. Read more about the ‘Consultant Corner’ tool in the ‘HDFC
SL in news’ section.
HDFC Standard Life has won the PCQuest Best IT Implementation Award for two
years consequently. Last year, the company received the award for Wonders, its path-
breaking implementation of an enterprise-wide workflow system.
HDFC Standard Life received this award for two years consecutively. In 2006, it won
for the 'Papa' TV commercial, which challenged the stereotype parents saving only for
their son's education or daughter's wedding. The company took a bold step by
showing parents saving for their daughter's education abroad, demonstrating
Progressive thinking.
March, 2008
Unit Linked Savings Plan Tops Mint Best TV Ads Survey
The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the
leading private insurance companies in India, has topped Mint’s Top Television
February, 2008
Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007
Mr Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life,
received the QIMPRO Gold Standard Award 2007 in the business category at the 18th
annual Qimpro Awards function. The award celebrates excellence in individual
performance and highlights the quality achievements of extraordinary individuals in
an era of global competition and expectations.
January, 2008
Sar Utha Ke Jiyo Among India’s 60 Glorious Advertising Moments
HDFC Standard Life’s advertising slogan honoured as one of ‘60 Glorious
Advertising & Marketing Moments' over the last 60 years in India,’ by 4Ps
Business and Marketing magazine. The magazine said that HDFC Standard Life is
one of the first private insurers to break the ice using the idea of self respect (Sar
Utha Ke Jiyo) instead of 'death' to convey its brand proposition. This was then,
followed by others including ICCI Prudential, thus giving HDFC Standard Life the
credit of bringing up one such glorious advertising and marketing moment in the last
60 years.
Making an Application
FUTURE PLANS
Mumbai, HDFC Standard Life has launched a new product called "Unit Linked
Wealth Maximiser Plus". This is a single premium investment cum protection plan,
with a minimum premium of Rs 1 lakh. The policyholder has the option to choose
from five fund options - Money Plus Fund, Bond Opportunities Fund, Large-cap
Fund, Mid-cap Fund, and Manager's Fund. HDFC Standard Life will offer regular
loyalty units of 0.10 per cent every year as long as the policy is not surrendered. The
accumulated value of the funds is received at the end of the policy term. In the event
of unfortunate demise of the policyholder during the policy tenure, HDFC Standard
FINANCIAL PERFORMANCE
HDFC Standard Life, one of the leading private life insurance companies in India
declared its annual results for the financial year ending March 31, 2008. The company
generated New Business Premium Income of Rs. 2,685 crores in FY2007-08
registering a year-on-year growth of 63%. The growth was primarily driven by the
success of the company's initiative on structured sales processes based on customer
needs and their assessments.
HDFC Standard Life, one of the leading private life insurance companies in India
declared its annual results for the financial year ending March 31, 2008. The company
generated New Business Premium Income of Rs. 2,685 crores in FY2007-08
registering a year-on-year growth of 63%. The growth was primarily driven by the
success of the company’s initiative on structured sales processes based on customer
needs and their assessments.
Mr. Deepak Satwalekar, MD & CEO, HDFC Standard Life attributed this growth to
the quality of life insurance solutions offered by the company and its increased
geographical reach. He also emphasised, “We believe that our success is a result of
our efforts in giving customers, the best long-term solutions to take care of their
insurance needs. Our endeavour to provide high quality insurance and pension
solutions to customers through quality pre-sales advice, based on a sound need-based
solutions approach, and post-sales service has started to pay off.”
HDFC Standard Life tracks its New Business Premium on the basis of Effective
Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single
Premium policy and is an internationally accepted indicator of an insurance
company’s performance. The total premium income (including renewal premium)
grew by 70% to touch a figure of Rs. 4,859 crores. High levels of persistency have
resulted in higher level of renewal premiums. Although there has been a slight dip
from 89% to 86%, we continue to have the highest persistency level in the industry.
The cumulative sum assured for all policies issued upto March 31, 2008 crossed Rs.
87,000 crores.
In offering unit linked products, the structured sales process adopted by the company
has paid rich dividends. “We believe that we should be able to lengthen the maturity
profile of our policy portfolio, now that the regulatory disincentive has been removed
with effect from April 1, 2008,” added Mr. Satwalekar. HDFC Standard Life offers,
both, life insurance policies as well as pension products on a unit linked platform as
also the conventional ‘with profits’ platform.
Over 50% of the sum assured as on March 31, 2008, is in respect of non unit-linked
policies. Over 30% of funds under management are in respect of non-linked business,
which reflects the balanced book between conventional and unit-linked business in
the total portfolio of the company.
The company’s national relationships with large public and private sector banks have
also helped it reach out to a larger number of customers across the country. The
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company plans to further strengthen these relationships through the introduction of
products specially designed for this channel.
HDFC Standard Life continues to have one of the widest reaches among new
insurance companies. The company strengthened its number of offices from 103 to
572 across the country in less than 3 years. Through these offices, the company today
services customer needs in over 726 cities and towns. The company also increased its
depth in existing markets by increasing its Financial Consultant strength from 74,000
as on March 31, 2007 to 1,45,000 as on March 31, 2008. There has been a huge jump
of 300% over the last 3 years in the number of its Financial Consultants who have
qualified to become members of the prestigious Million Dollar Round Table (MDRT)
Club. The strength of MDRT qualified members has gone up to 496 as on December
31, 2007.
As against the regulatory requirement of writing 18% of all policies in rural areas,
HDFC Standard Life has issued over 217,000 policies accounting for 23% of all
policies issued during 2007-08. Additionally, during 2007-08, HDFC Standard Life
has covered 51,326 lives under the social sector category, as against the requirement
of 25,000 lives. Overall, the company has covered over 9,59,000 lives during the year
ending March 31, 2008.
To meet the demands arising from the company’s rapid growth, shareholders have
contributed additional Rs. 470 crores of equity to take the paid-up share capital as on
March 2008 to Rs. 1,271 crores.
Daughter, walks towards him with Dad goes back to checking the engine
swinging hand in air and says. and says in a light hearted tone.
Daughter: “Kyonki Toolika Sharma Dad: “Aur Extra paise dad dega kya?”
chahti hai uske dad style se travel Daughter replies firmly: “Nahi. Mere
kare.” dad ki beti.”
And hands him the cheque. Dad looks Daughter: “Relax dad, plan kiya.”
at the cheque and questions. Dad doesn’t know what to say: “Par...”
Dad (seriously): “Itne paise aaye
kahaan se?”
Dad doesn’t know what to say as he Mother enters with tea. She senses
looks at the cheque. something serious and questions
Daughter pleads: “Please…dad” them.
Mother: “Aree Kya hua?”
BOARD MEMBERS
Helping Indians experience the joy of home ownership. The road to success is a tough
and challenging journey in the dark where only obstacles light the path. However,
success on a terrain like this is not without a solution. As we found out nearly three
decades ago, in 1977, the solution for success is customer satisfaction. All you need is
the courage to innovate, the skill to understand your clientele and the desire to give
them your best. Today, nearly three million satisfied customers whose dream we
helped realise, stand testimony to our success. Our objective, from the beginning, has
been to enhance residential housing stock and promote home ownership. Now, our
offerings range from hassle-free home loans and deposit products, to property related
The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector, as part of the RBI's liberalisation of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name of
'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
HDFC Mutual Fund has been one of the best performing mutual funds in the last few
years. HDFC Asset Management Company Limited (AMC) functions as an Asset
Management company for the HDFC mutual fund.
AMC is a joint venture between housing finance giant HDFC and British investment
firm Standard Life Investments Limited. It conducts the operations of the Mutual
Fund and manages assets of the schemes, including the schemes launched from time
to time. As of Aug 2006, the fund has assets of Rs.25,892 crores under management.
IN 2003, following a decision by the Zurich Insurance Company (ZIC), the Sponsor
of Zurich India Mutual Fund, to divest its asset management business in India, AMC
had entered into an agreement with ZIC to acquire the asset management business.
Consequently, all the schemes of Zurich Mutual Fund in India had been transferred to
HDFC mutual fund and renamed as HDFC schemes.
Here is a list of mutual funds of HDFC which includes Equity Funds, Balanced Funds
and Debt Funds.
HDFC is a pioneer housing finance institution in India and with over 30 years
in operations has provided finance to over a million families in India.
HDFC Limited.
HDFC is India’s leading housing finance institution and has helped build more
than 23,00,000 houses since its incorporation in 1977.
In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.
As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The
depositor base now stands at around 1 million depositors.
Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year
Stable and experienced management
High service standards
Awarded The Economic Times Corporate Citizen of the year Award for its
long-standing commitment to community development.
OBJECTIVE
Efficiency of Operations
OUR VISION
'The most successful and admired life insurance company, which means that we are
the most trusted company, the easiest to deal with, offer the best value for money, and
set the standards in the industry’.
OUR VALUES
Integrity
Innovation
Customer centric
spread the message of life insurance in the country and mobilise people’s savings for
nation-building activities. LIC with its central office in Mumbai and seven zonal
operates through 100 divisional offices in important cities and 2,048 branch offices.
LIC has 5.59 lakh active agents spread over the country.
The Corporation also transacts business abroad and has offices in Fiji, Mauritius and
United Kingdom. LIC is associated with joint ventures abroad in the field of
(International), E.C. Bahrain. It has also entered into an agreement with the Sun Life
(UK) for marketing unit linked life insurance and pension policies in U.K.
In 1995-96, LIC had a total income from premium and investments of $ 5 Billion
while GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's
income grew at a healthy average of 10 per cent as against the industry's 6.7 per cent
growth in the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the
poverty line, with 50 per cent subsidy in the premium rates. LIC's claims settlement
ratio at 95 per cent and GIC's at 74 per cent are higher than that of global average of
40 per cent. Compounded annual growth rate for Life insurance business has been
The general insurance industry in India was nationalized and a government company
known as General Insurance Corporation of India (GIC) was formed by the Central
Government in November 1972. With effect from 1 January 1973 the erstwhile 107
Indian and foreign insurers which were operating in the country prior to
nationalization, were grouped into four operating companies, namely, (i) National
Insurance Company Limited; (ii) New India Assurance Company Limited; (iii)
Oriental Insurance Company Limited; and (iv) United India Insurance Company
Limited. (However, with effect from Dec'2000, these subsidiaries have been de-
linked from the parent company and made as independent insurance companies). All
the above four subsidiaries of GIC operate all over the country competing with one
another and underwriting various classes of general insurance business except for
aviation insurance of national airlines and crop insurance which is handled by the
GIC.
associate companies.
Max New York Life Insurance Company Limited is a joint venture that brings
together two large forces - Max India Limited, a multi-business corporate, together
with New York Life International, a global expert in life insurance. With their various
Products and Riders, there are more than 400 product combinations to choose from.
They have a national presence with a network of 57 offices in 37 cities across India.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
services group headquartered in the United Kingdom. ICICI Prudential was amongst
the first private sector insurance companies to begin operations in December 2000
The company has a network of about 56,000 advisors; as well as 7 banc assurance and
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and
GENERAL INSURANCE
The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram
Finance Limited started its operations from March 2001. The company is Head
Quartered at Chennai, and has two Regional Offices, one at Mumbai and another one
at New Delhi.
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj
Bajaj Allianz General Insurance received the Insurance Regulatory and Development
Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds
ICICI Lombard General Insurance Company Limited is a joint venture between ICICI
Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited.
ICICI Bank is India's second largest bank, while Fairfax Financial Holdings is a
of Canada's oldest property and casualty insurers. ICICI Lombard General Insurance
August 2001.
Chola-MS commenced operations in October 2002 and has issued more than 1.4 lakh
policies in its first calendar year of operations. The company has a pan-Indian
Tata AIG General Insurance Company Ltd. is a joint venture company, formed from
the Tata Group and American International Group, Inc. (AIG). Tata AIG combines
the strength and integrity of the Tata Group with AIG's international expertise and
financial strength. The Tata Group holds 74 per cent stake in the two insurance
Tata AIG General Insurance Company, which started its operations in India on
January 22, 2001, offers the complete range of insurance for automobile, home,
personal accident, travel, energy, marine, property and casualty, as well as several
STRENGHS
Financial Expertise
As a joint venture of leading financial services groups, hdfc standard life has the
financial expertise required to manage your long-term investments safely and
efficiently.
Range of Solutions
We have a range of individual and group solutions, which can be easily customised to
specific needs. Our group solutions have been designed to offer you complete
flexibility combined with a low charging structure.
Our gross premium income, for the year ending March 31, 2008 stood at Rs. 4,859
crores and new business premium income stood at Rs. 2,685 crores.
The company has covered over 9,59,000 lives year ending March 31, 2008.
Indivisual
Group
Social
Protection Plans
You can protect your family against the loss of your income or the burden of a loan in
the event of your unfortunate demise, disability or sickness. These plans offer
valuable peace of mind at a small price.
Our Protection range includes our Term Assurance Plan & Loan Cover Term
Assurance Plan.
Investment Plans
Our Single Premium Whole Of Life plan is well suited to meet your long term
investment needs. We provide you with attractive long term returns through regular
bonuses.
Pension Plans
Our Pension Plans help you secure your financial independence even after retirement.
Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit
Linked Pension Plus
Savings Plans
Our Savings Plans offer you flexible options to build savings for your future needs
such as buying a dream home or fulfilling your children immediate and future needs.
Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment,
Unit Linked Endowment Plus, Unit Linked Endowment Plus II, Money Back,
Unit Linked Enhanced Life Protection II, Children's Plan, Unit Linked Young Star,
Unit Linked Young Star Plus, Unit Linked Young Star Plus II.
Group Products
We now offer the following group products to our esteemed corporate clients:
Also suitable for other employee benefit schemes such as salary saving schemes and
wealth management schemes
Social Product
Eligibility
Premium Payments
The premium to be paid will be quoted per member in the group and will be the same
for all members of the group.
The premium can only be paid by the Development Agency as a single lump sum that
includes all premiums for the group to be covered. Cover will not start until the
premium and all the member information in our specified format has been received
The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member.
Benefits
On the death of each member covered by the policy during the year of cover a lump
sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where
the death is as a result of an accident, an additional lump sum will be paid equal to
half the sum assured. There are no benefits paid at the end of the year of cover and
there is no surrender value available at any time.
Due to the nature of the groups covered, HDFC Standard Life will be passing certain
administrative tasks onto the Development Agency. By passing on these tasks the
premium charged can be lower. These tasks would include:
• Submission of member data in a specified computer format
• Collection of premiums from group members
• Recording changes in the details of group members
• Disbursement of claim payments and the mortality rebate (if any) to group
members.
These tasks would be in addition to the usual duties of a policyholder such as:
• Payment of premiums
• Reporting of claims
• Keeping policy holder information up to date
Since these additional tasks will impose a burden on the Development Agency, the
Development Agency may charge a Rs. 10 administration fee to their members.
Prohibition of rebates