WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT &

RESEARCH

SUMMER INTERNSHIP PROJECT REPORT

ON

BUSINESS DEVELOPMENT OF CSG

BY

AKHIL DHIMAN

PGDM e-Biz 2017 – 19 TRIMESTER IV

SPECIALISATION: MARKETING

ROLL NO 13

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Page 2 of 26
 ACKNOWLEDGEMENT

I would like to express profound gratitude to my mentors Dr. V. S. Kumar (Country

Head – CSG), Mr. Ravi Kadam (Vice President – CSG), and Mr. Ashish Rai (Vice
President-CSG) for their invaluable support, encouragement, supervision and useful
insights throughout the project. Their moral support and continuous guidance enabled me
to complete my work successfully

I am also to thankful and indebted to Prof. Dr. Pradeep Pendse (E-Business – Welingkar
Institute of Management & Research Center) who have guided me throughout my project
for connecting the theoretical concepts to real world.

I also thank all of them who have directly or indirectly helped me during the tenure of my
training.

Sincerely thanking all of the above once again, I hope to continue to take guidance from
the aforementioned in near future. It has been a great experience for me.

Akhil Dhiman
PGDM E-Biz (2017-19)

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Executive Summary

In this report, I have summarized the work done by me along with the learnings I got
during the two months period of the summer internship program at SBI Life Insurance
Company Limited. In all my projects, I have researched for potential clients for the group
products offered by the company and done proper segmentation region wise to assist our
sales team in converting the prospective clients. The experience gained by me by visiting
some of the brokers who help us get business and talking to them about the industry has
been immensely helpful.

I have approached many brokers who were not tapped by SBI Life earlier in the Mumbai
Region Finally, I have mentioned the key takeaways for me from this project as well as
the findings and conclusion.

How did it help SBI Life?

I have brought business to the company by visiting the brokers who were not doing
business with SBI Life
I have recommended SBI Life for streamlining the broker empanelment process so that
brokers can get empaneled swiftly and bring business for SBI Life.
Got the feedback from the brokers about the products. Tried to get the perception of the
company from market and conveyed it to the company.

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 CONTENTS

Sr. No. Particular Page no

1. Title page 1

2. Certificate of completion 2

2. Acknowledgement 3

3. Executive Summary 4

4. Contents 5

5. Overview of Life Insurance industry 6-7

6. About SBI Life 8-10

7. CSG (Corporate Solutions Group) 11-14

8. Products of CSG 15-17

9. Market Analysis 18-21

10. Field Visit 22-23

11. Summary 24

12. Conclusion and Recommendations 25

13. References 26

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Overview of Life Insurance Industry

A new era began in the Indian insurance sector, with the passing of the Life Insurance Act
of 1912. Life Insurance is the fastest growing sector in India, since 2000 as Government
allowed Private players and FDI up to 49 percent. The insurance industry of India
consists of 57 insurance companies of which 24 are in life insurance business and 33 are
non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole
public sector company. Apart from that, among the non-life insurers there are six public
sector insurers. In addition to these, there is sole national re-insurer, namely, General
Insurance Corporation of India (GIC Re). Other stakeholders in Indian Insurance market
include agents (individual and corporate), brokers, surveyors and third party
administrators servicing health insurance claims.

India’s life insurance sector is the biggest in the world with about 360 million policies
which are expected to increase between 12-15% over the next five years. The country’s
insurance market is expected to quadruple in size over the next 10 years from its current
size of $60 billion. During this period, the life insurance market is slated to cross US$
160 billion. India currently accounts for less than 1.5 per cent of the world’s total
insurance premiums and about 2 per cent of the world’s life insurance premiums despite
being the second most populous nation. The country is the fifteenth largest insurance
market in the world in terms of premium volume, and has the potential to grow
exponentially in the coming years.

Insurance penetration, which is measured as a percentage of premiums to gross domestic

product (GDP), saw a rise to 3.49 percent from 3.40 percent in FY17, according to the
sigma report by global reinsurer Swiss Re. Life insurance penetration stood at 2.72
percent while general insurance penetration stood at 0.77 percent. The total premium
value of Life insurance is almost around Rs. 1.4 trillion. Some of the biggest competitors
are LIC, SBI life, ICICI prudential, HDFC Life, Max Life etc.

Government Initiative

There are a number of initiatives taken by the government to boost the insurance sector in
India. Check out some of them below:
1.The Union Budget has made a provision, which states that the foreign investment will
only be allowed up to 49% through the automatic route.
2. Service tax on particular annuity policies has been decreased from 3.5% to 1.4% of the
premium paid in some cases.
3. Service tax on the business Life insurance, offered by means of the annuity, based on
National Pension Scheme, which is managed by Pension Fund and Regulatory
Development of India, managed being exempted with effect from April 2016.
4. The Indian Regulatory and Development Authority of India (IRDAI) has created two
committees to explore and suggest ideas to promote e-commerce in the insurance sector
in order to raise the insurance penetration and get the financial inclusion.
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 1. Market Share of Life Insurance Companies

LIC is the market leader with almost 70% of the market share followed by SBI Life with
5.1% of market share and ICICI prudential subsequently. The penetration of Insurance
sector in India is currently 3.49% and Government of India is aiming to cross 4%
penetration by the end of FY2019.

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About SBI Life Insurance Company

SBI Life Insurance is a joint venture life insurance company between State Bank of
India (SBI), the largest state-owned banking and financial services company in India,
and BNP Paribas Cardif. BNP Paribas is a French multinational bank and financial
services company with global headquarters in Paris. SBI owns 70.1% of the total capital
and BNP Paribas Cardif 26% of the capital. Other investors are Value Line Pte. Ltd. and
MacRitchie Investments Pte. Ltd., holding 1.95% of the total capital each. SBI Life
Insurance has an authorized capital of ₹20 billion (US$300 million)and a paid up capital
of ₹10 billion (US$150 million). SBI Life Insurance also features in the Fortune Global
500 list of the world’s biggest corporations.
SBI is India’s largest Commercial Bank in terms of deposits, advances and number of
branches, enjoying the continuing faith of millions of customers across the social
spectrum. SBI provides a wide range of products and services to personal, commercial
enterprises, large corporates, public bodies and institutional customers through its various
branches and outlets, joint ventures, subsidiaries and associate companies.

SBI Life
Sales Channels

CSG
Bancassurance
(Corporate Bancassurance
Retail Agency Alternate Channel -ABs
Solutions Group) -SBI

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 Channel wise NBP and RP for FY 16-17

Amount in Crores

Channel New Business Premium Renewal Business

Premium

Individual Agency 2206.12 4951.97

SBI 3445.91 4112.88

AB 877.46 1057.15

RRB 99.42 108.08

Corporate Solutions 3429.53 257.57

Alternate Channel 45.291 170.74

Emerging Business 16.303 6.64

Ohers 31.74 161.93

Grand Total 10145.781 0556.96

The above figures are the highlights of the financials of SBI Life distributed among
different channels. These figures show there is a prominent part of corporate solutions in
the total revenues generated by the SBI Life.

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Graphical representation of revenues generated by all the channels

Group Business Concept

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 Group Business

Insurance Fund Management

GTI
Group Term Employee Benefits
Insurance

EDLI Old Product

Employee Deposit interest declared annually at
Linked Insurance end of the year

GSLI New Product

interest declared in advance
Group Saving Linked - Quarterly
Insurance

The CSG (Corporate Solutions Group) department mainly focusses on corporate clients
for the business. The products are diversified according to the client needs. Insurance
policies are formulated by Actuaries.for fulfilling the client needs. These policies are
made according to the guidelines of IRDAI.

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 Products of SBI Life CSG

For EE Groups only

Fund Based

CapAssure
Kalyan ULIP
Gold-
Plus (ULIP)
GGLESA

For EE / NEE Groups Only

One year Annually

Renewable
Group Term

Sampoorn
Suraksha EDLI

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For EE / Homogeneous NEE Groups Only

Group Savings
Linked Insurance

Swarna Ganga Dhanrashi

Fir EE / NEE Groups Only

Annuity

Swarna Jeevan Gaurav Jeevan

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EE – Employer Employee Groups

NEE – Non Employer Employee Group

Homogeneous Groups

Any associations where member represent a particular profession / trade / domestic

workers / assigned workers.
Government agencies / Any co-op societies.
Parents of Svhool / college students
Any other groups as may be approved by authority.

Differentiator of SBI Life –

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Analysis of Products available –

SBI Life has a big chunk of business from Corporate Solutions Group, which is B2B
sales and marketing. To get the essence of the market I went on the field visit for
developing new business for the company through this channel. The company has 6 to 7
products for different client requirements. The customization of the policies is done with
help of various riders available for the different policies.

The different products serve different purposes like –

For Gratuity –

There are two types of products available for gratuity

1) In first type of the product SBI Life takes gratuity funds of the organization and
manages it for them. There are different investment options available for the gratuity
funds like other funds.
a) Equity based Funds
b) Debt based funds
c) BOTH Equity and debt-based funds

2) In other type of gratuity insurance policy, the gratuity sum of the employee is insured
with an insurance cover. So, in case of causality of an employee the future gratuity sum
of the employee is given to the nominee.

The formula for calculating Gratuity I as follows –

Gratuity to be paid = 15/26 * Number of years served * Last salary drawn

EDLI Scheme –

This product has come into the existence because of Insurance Act 1976, according which
an employer can opt for Insurance from outside if the scheme is better than the PF
insurance scheme.

Employer can opt for EDLI scheme if he finds it a better option for the employees. The
EDLI scheme is also very popular among clients.

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The 0.5% contribution of employer for tor the insurance of the employees can be done
through Life insurance companies in lieu of EDLI contribution for the employee.

Advantages of EDLI-
Sampoorna Suraksha

 A flat cover of Rs. 6,02,000 is given to the employee in case of death.

 PF EDLI has limit of cover from Rs. 2.50,000 to Rs. 6.00,000.

 No maturity benefit

 participating

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Capassure Gold-

 Traditional (Risk borne by SBI)

 Fund Based

 Variable

 Non-Linked

 Non-Participating

 No Insurance cover for superannuation schemes

 Floor Rate is 0.01%

Kalyan ULIP –

 Non-Traditional (Risk borne bypolicy holder)

 Unit-linked

 Non-participating

 Fund-based

Participating definition

Some part will be given to the policy holder out of the profits of the company.

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Market analysis of CSG

CSG department tap the clients through Brokers, Agents and PF consultants etc.These
brokers are approved by IRDAI according to the eligibility criteria. Clients approach
these brokers for the suitable quotations for their requirements.
Some of the clients are tapped by Direct marketing also. These brokers take quotations
from different Life insurers and pitch it to the clients.

My Task and Responsibilities.

I was given a task to tap the brokers who were not tapped by SBI Life previously, in the
Mumbai region.
For some days I went on the field with a salesperson to pitch to the clients for our
products. Later on, I went on my own for tapping the brokers and to pitch our products.
Below is the glimpse of the brokers present in the various regions of the country.

Regions Active Inactive NA Suspend GrandTotal

AHMEDABAD 7 3 5 1 16
BANGALORE 6 4 4 14
BHOPAL 3 1 1 5
BHUBANESWAR 1 1 2
CHANDIGARH 7 8 1 16
CHENNAI 12 12 5 29
DELHI 17 27 32 1 77
JAIPUR 4 1 5
KERALA 6 3 3 12
KOLKATA 1 16 4 21
LUCKNOW 2 1 2 5
MUMBAI 27 29 40 96
PATNA 1 1
TELANGANA 14 11 3 28
GrandTotal 107 116 101 3 327

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 Inactive

AHMEDA BAD
BANGALORE
9% 3%3%
1%7%
BHOPAL

10% CHANDIGARH
25%
CHENNAI
DELHI
1% 23% JAIPUR
14% KERALA
3%
1%
KOLKATA
LUCKNOW
MUMBAI
TELANGANA

NA

AHMEDA BAD
BANGALORE
3%5% 4%
1%
11
%% BHOPAL
5%
BHUBANESWAR

39% CHENNA I
DELHI
32%
KERALA
2%4%3% KOLKATA
LUCKNOW
MUMBAI
PATNA
TELANGANA

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Comparison of our products with competitors’ products

SBI Life offers many quality insurance policies in the group insurance segment. Among
those the gratuity product (Capassure Gold) and the group term insurance product
(Sampoorn Suraksha) are two of the most important offerings. These two products were
compared separately with their counterparts from 8 other insurance companies. Various
important parameters like minimum and maximum entry age, maximum maturity age,
product type, sum assured, group size, benefits, charges, etc. were taken into
consideration for this extensive comparison.
The purpose behind the comparison was to check how our products fare in terms of
different features as compared to their alternatives. Capassure Gold and Sampoorn
Suraksha are two really comprehensive products. However, if we compare similar
products from some of the prominent players in the industry, there isn’t much
differentiating them from each other. The two factors that affect the purchasing decision
of a prospective client i.e. premium and returns or sum assured are also very much
similar for most of the top companies in a fiercely competitive industry.

Company SBI Life -LIC’s New OneHDFC LifeICICI Pru

Sampoorn Year RenewalGroup TermGroup Term
Suraksha Group TermInsurance Plus
Assurance Plan

Min Entry 16 yrs (E-E)/18 yrs8 years 16 yrs (18 yrs for15 years
Age (NE-E) riders)

Max Entry 79 years 75 years 79 yrs (64 yrs for79 years

Age riders)

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Max 80 years 80 years 80 years NA
Maturity
Age

Min Sum INR 1,000/- INR 1,000/- INR 5,000/- INR 5,000/-
Assured

Max Sum INR No Limit No Limit NA

Assured 50,00,00,000/-

Policy Term Annually Annually RenewableAnnually Annually

Renewable Renewable Renewable

Min group 10 25 (E-E)/50 (NE-E) 10 (E-E)/50 (NE-10 (E-E)/50 (NE-

size E) E)

Min NA NA NA INR 10,000/-

Premium

This product differentiation shows where SBI Life stands in the market as compared to
other insurance players in the market. It shows that there is not much differentiation in
the market but the only difference is the premium to be paid by the client and commission
of the broker. The broker pushes the products in which they expect the high commission
from the Insurance company

Field Visits
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During my internship, I visited many insurance brokerage firms to get a closer peek into
the insurance industry. These were among the new firms we wanted to tie up with to
provide our products greater exposure in the market. These meetings gave me some
insights about B2B sales and a few potential areas of improvement in our approach. One
of the points that I came across during these visits is about the lengthy empanelment
process of SBI Life compared to our competitors. Also, our response to RFQs coming in
from brokers generally takes longer compared to other players in the industry. This might
be a byproduct of the robust checks and balances put in place by us to reduce mistakes,
mitigate risk, and maintain consistency. But, some of our competitors are rather
aggressive in their approach. I feel automation is the key to bridge this gap, which I
understand SBI Life has already taken up.

Also, many brokers are not fully aware of all the technicalities and intricacies of our
products; which in turn impedes their ability to pitch our products to prospective clients
successfully. So, it is important that the regions have frequent meets with the brokers and
there should be training sessions explaining the features of our products in detail.

For the EDLI scheme embedded in the Sampoorn Suraksha plan, we wanted to partner up
with some prominent PF Consultants in each of the regions to find out new prospective
clients.

During the visit I looked at the perception of brokers and agents for SBI Life Insurance
company as compared to other Life insurance players in the market. SBI Life insurance
has large number of client base and is a prominent player in the sector. But perception of
the company among brokers is that the company has long procedures for process like
empanelment process and the quotation time is longer as compared to some private
companies like Exide life insurance, Sun life Birla and ICICI pru etc. Sometimes the
pricing offered by the private players is very aggressive due to which business is lost by
SBI Life from some clients.

Observations in Field Visit

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 Brokers not aware of technical knowledge related to products like EDLI and Gratuity
cover.

 Empanelment process is longer as compare to other Life Insurance companies.

 Time taken for quotation is more, due to which business is lost sometimes because
other private players like ICICI pru and HDFC life give quotations before time.

 Huge market of Brokers and agents is still not tapped by SBI Life.

 Communication gap between regional office and Head office for client response.

 Perception of Sbi Life among brokers.

Conclusion and Recommendations

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 Empanelment process for can be streamlined by looking at the competitor’s process.

 IRDAI requirements can be looked upon for the broker empanelment process.

 Priority should be allocated to the cases according to the timelines.

 Brokers should be given training for our products.

 Efforts should be made for brokers and clients to make them aware about schemes like
EDLI, Gratuity etc.

 Relationship with brokers and clients can be made stronger by organizing brokers meet
etc.

 An ERP application can be used for making information available for all the
stakeholders like Sales person and HO office personnel etc.

 Weekly meeting of the team for discussing the key issues like deadlines and pririty
cases etc.

Summary

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Internship was divided into two phases .i.e., Filed visit and product knowledge. In the
first phase I gathered the information from the product catalogue and seniors as much as I
could. This product knowledge helped me to pitch our products in the best possible way
in front of brokers and agents.

After gathering the enough information about the products I went to the field to bring
some business to the organization. I approached many brokers with the same vision and
successfully I could convert some of the business. Many brokers were convinced about
the company and policies and ultimately have given business to the company.

On a personal level, I learned a lot from this internship; The theoretical statistics which I
learned in my MBA class, I practically learned its application in real business world. My
classroom sessions and group activities helped me during my internship to think critically
and give solutions to problems using cognizance. At times, it was as basic as google docs,
spreadsheet and ppts which proved to be a savior, which otherwise couldn‟t have been
used had I not learned during classroom sessions.

If it weren‟t for sessions like perspective management, organizational behavior, how

business works, GCL, I probably wouldn‟t have learned as much. The business-related
templates from these subjects helped me to understand and work on my problems in a
much better way. Team work, keeping everyone on same page, acting on problems using
cognizanceordinating, liasioning etc. were some of them to name few.

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References

https://www.irdai.gov.in/Defaulthome.aspx?page=H1

https://www.rbi.org.in/commonman/english/scripts/banksinindia.aspx

https://www.sbilife.co.in/

http://www.licindia.in/

https://www.iciciprulife.com/home1.html

https://www.hdfclife.com/

https://www.aegonlife.com/

https://lifeinsurance.adityabirlacapital.com/our-solutions.aspx

https://www.exidelife.in/

https://www.pnbmetlife.com/

http://tataaia.com/

https://www.moneycontrol.com/

https://www.lifeinscouncil.org/code/HomePage

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