SYNOPSIS

On
Studying and analyzing
the scope of Tele
marketing
Submitted to

Punjab Technical
University
For the partial fulfillment of the requirement for the degree
of

Bachelor of Business
Administration
2009
Submitted To:
 Miss Neha tikko
Lecturer,
Lovely Institute of Management

Submitted By:
SACHIN KUMAR BASSI
614240830
B.B.A VI (SEM)

Introduction to the concept

The Insurance industry in India has evolved from the days of
the British Raj through the days of the Swaraj to the modern era of
Global Raj. While LIC was the only player in India at one time, after
the opening up of the market in 1999 through the IRDA regulation, the
industry has matured a lot with the entry of foreign players AIG, New
York Life, Allianz, etc in collaboration with the Indian business houses
like the Tatas, Birlas, etc.
Most of the insurance companies are tie ups between Indian
companies and global players, which gives this industry a new
dimension. Though these players are still small in comparison to the
giant called LIC, they are fast bridging the gap by utilizing the very
immature Indian insurance industry. The issues that had manifested
themselves giving rise to the IRDA Regulation in 1999 have given
away to newer growth issues that have cropped up with the increase in
competition The Insurance industry in India has evolved from the days
of the British Raj through the days of the Swaraj to the modern era of
Global Raj. While LIC was the only player in India at one time, after
the opening up of the market in 1999 through the IRDA regulation, the
industry has matured a lot with the entry of foreign players AIG, New
York Life, Allianz, etc in collaboration with the Indian business houses
like the Tatas, Birlas, etc.

Higher growth rates are expected in future. Accordingly, the Monitor

Group has projected the market to reach US$ 25-30 billion by 2008.
According to another Report by the Expert Group of the Confederation
of Indian Industry (CII) issued in October 1999, life insurance
premium are likely to account for 18-20% of the gross domestic
savings of the country by the year 2010 as compared to around 8%
currently.
With such a dynamic market opportunities galore for insurance
companies and with the industry still in a nascent stage insurance
companies are looking for newer and efficient mediums for selling
insurance.

objectives of the study

The objectives of the study are as follows -:

1. Studying and analyzing the scope of Tele marketing

2. List of potential partners with recommendation on hot prospects.
3. Study the latest trends in the
- Insurance Companies
- Telemarketers
4. Business Models
5. Supreme Court ruling
 6. Recommendations

SCOPE OF THE PROJECT

The Title of the project broadly outlines the project by inquiring an

analysis into the emerging trends indicating to telemarketing as the
model of sales.
The study required mystery marketing into competitors and
telemarketers. This was required to study what the competitors were
doing differently and where we were lacking when it came to
telemarketing. The various business models being used by various
companies and what would be profitable as a business model for us.
To appreciate telemarketing and the various nitty gritties involved in
the same it was imperative to interact with telemarketers. The various
costs involved in Telemarketing, how they generate database what
kind of software do they use and so on.
A Public Interest Litigation against unsolicited calls has been filed by
Dr. Harsh Pathak which could act as a speed breaker for selling
insurance over the phone. The supreme court ruiling was also studied
for better clarity on the project.
A questionnaire was used for gathering information. Efforts were made
to interact with more than one person in any organization, the attempt
was to maintain the rightness of the information gathered.
Attempt was made to take all the potential variables into picture and
not leave out any.

BUSINESS MODELS

The interactions with competitors and especially telemarketers was

helpful in nderstanding how the dynamics work between Insurance
companies and telemarketers. It helped gain a perspective. The
various business models in practice were studied. Effort was directed
at choosing the one which would best suite MNYL.
As this is a new channel of selling insurance not a lot has been
explored. Infact many companies are not even using this channel.
Basically there are 4 possible business models in effect in the industry.
All the four models have been studied and a graph indicating which
company is following which model has been shown. Further attempt
was to recommend the best model for MNYL looking at the current
scenario and keeping in mind the potential variables.
The four Business models are:

a) The Traditional Method

 b) Setting Up
c) Buying out
d) In-house setup.

Limitations of the study

1. as the subject was totally practical application so it was hard to

get all things done practically.
2. the subject was on the comparision between the several
industrial organization due to which it was difficult to find the
realavance data for the report .
3. the study was all about the findings and the observation due to
which the study method method was different at the various
stages of preparing the report .
4. the companies members were not doing active participation in
the survey done by me .
5. the no of respondents were telemarketer itself ,so they were
only appraising their organization.

DATA ANALYSIS
INSURANCE COMPANIES

The insurance companies were visited to get a hang and feel of the
industry. The motive was to understand what is happening in the
industry and what differently is being done by competitors that we can
absorb for better results. I visited ICICI-Prudential, TATA-AIG,
Bajaj Allianj, HDFC and compared the data with MNYL.
The effort was to meet more than one person in these organizations
separately. In some cases I did meet the people in the organization in
person and in some cases spoke to the other.
Insurance companies were targeted to understand what was
happening in the competitor’s camp and were we lack.
The data collected was with the help of a questionnaire and some of
the data collected was during the interaction.

CONCLUSION
After working on this project I feel that telemarketing will be one of
the steadiest channels of selling insurance. There is no denying that
Agency and Banc assurance will be the most productive of all channels
and Telemarketing will be the niche channels. Inspite of all this
channels will be the most productive and in terms of the investment
made. It will remain the most cost effective channel.

Telemarketing should get cheaper with falling phone calls and deeper
penetration of telephones.

Max New York Life Insurance Co. Ltd Should seriously look at this
channel for selling Insurance.
 APPENDIX

The most crucial part of the study was the questionnaire, the
questionnaires were designed separately for Insurance companies and
telemarketers.
The questionnaire given below was designed for insurance companies.
Mystery marketing was the tool that was used to get the questionnaire
filed from these insurance companies.

Questionnaire for Insurance Companies

1. Name of the organization?

2. Name of the person contacted
3. What are channels of selling insurance?
- Agency
- Telemarketing
- Direct sales
- Walk in customers
4. What is the growth potential of telemarketing? Bullet points
5. Do you have a telemarketing setup?
6. Can u give me names of your business partners?
7. How much do you invest/costs in telemarketing? Approximately?
8. Approximately what is the productivity per teleseller as in how
much sales do you make in a day through telemarketing?

No. of telecallers No. of calls per day No. of policies per day any other information

9. Key strengths that an organization needs in terms of

telemarketing:-
 a) Simple/easy to understand program
b) Quality of telemarketers (what parameters do u look for…
c) Segment specific product design
d) Database generating ability
e) Reach (locations)
f) Any others
10. What is the total revenue that you generate through
telemarketing?
11. Requirement of an insurance company for opting the
telemarketing?
12. Current scenario in the Indian insurance market? (Optional)
13. In the awake of Supreme Court regulations what do you see is
the scope of telemarketing
14. SWOT Analysis of telemarketing
The questionnaire was designed to get the perspective of
insurance companies on telemarketing, their take on the growth
potential of this channel, what is being done by them to get the
maximum out of this channel. And so on.

Questionnaire for Telemarketers

The following questionnaire was used for telemarketers. The

interactions with the telemarketers were helpful in understanding how
the business works and what would be required for an insurance
company to setup a complete new setup. The questionnaire was aimed
at understanding the setup, the various costs and the telemarketers
perception of the industry and the future of this industry.

1. When were u setup?

2. Infrastructure
-no. of tellecallers / seats
-no. of employees
-no. of offices
-no. of locations
-call centre automated
3. Key strengths an organization for doing well in an organixation?
-supervision
-quality of tellecalers
-database
-script/selling technique
-any others please specify
4. How do you generate database / can you specify the costs that
you incur in the process
5. What are the differences if any in selling financial products, credit
cards and insurance?
6. How easy it was for a new entrant/rich entrant example Citibank
to start from scratch a telecalling setup to sell their products?
7. How easy/difficult is it for a new entrant/rich entrant to start
from scratch a telleselling setup?
8. The constraints you face now and the ones you faced when you
started this setup?
9. SWOT of the channel?
10. What is the annualized turnover that you have and do you set
targets individually/ what is the trend across the industry?
11. Can you take me through the entire process from scratch to
setting up a facility i.e till the first call is made?
12. How do you monitor goals and what do you do if the same are
not being achieved?
 13. What kind of a model would you prefer?
14. What are your operational problems after the no. of years you
have been in the business?

Biblography
1. WWW.GOOGLE.COM/ EMERGING LIC COMPANIES IN INDIA/
MAX NEW YORK LLC.
2. WWW.LIVE SEARCH.COM/ NEW YORK INSURSNCE /HISTORY
3. WWW.WIKIPEDIA.COM/ MAX INDIA LIVE /LIC COMPANY LTD
4. WWW.WIKIANSWERS.COM/MAX NEW YORK INDIA
5. WWW.GOOGLE.COM/ EMERGING LIC COMPANIES IN INDIA/
ICICI-Prudential, TATA-AIG
6. WWW.WIKIPEDIA.COM/ TATA-AIG/ LIC COMPANY LTD
7. WWW.LIVE SEARCH.COM/ LIC COMPANY LTD/ Bajaj Allianj,
HDFC