Final Lead Generation

Lead Generation, Sales Techniques & Closure
Submitted In Partial Fulfillment Of The Requirements Of The Degree Of Post Graduate Diploma In Management Chandragupt Institute Of Management Patna
The study tries to understand the insurance market in Patna region, identify Manish Verma the factors affecting satisfaction levels of bank customers at Standard 13-Jun-11 Chartered and suggest relevant ways to increase sales for Standard Chartered through innovative lead generation, sales and closing techniques.
CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA
1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11
DECLARATION
This is to certify that this report entitled Lead generation, Sales techniques submitted by Mr. Manish Verma to Chandragupt Institute of Management Patna, as a
requirement for the award of the Post Graduate Diploma in Management, is a bonafide record of research work carried out by him under our supervision. The contents of this report, in full or in parts, have not been submitted to any other Institute or University for the award of any degree or diploma.
(Mr. Srinivas Ramamurthy) __________________________________ (Sign)
(Prof. Shireesh Thakur)
___________________________________ (Sign)
Date: ___________________
ACKNOWLEDGEMENTS
I would like to express my gratitude to all those who gave me the possibility to complete this thesis. I would like to thank my college authorities and my Placement officer, Mr. Kumar Alok first for providing me the opportunity to work with one of the most prestigious organizations. I want to thank the Branch Manager of Standard Chartered, Mr. Srinivas Ramamurthy, for giving me permission to commence this thesis in the first instance, to do the necessary research work and to use departmental data.
I have furthermore to thank the staff members who encouraged me to go ahead with the thesis and for their stimulating support.
I am deeply indebted to my Faculty Guide, Mr. Shireesh Thakur whose help, stimulating suggestions and encouragement helped me in all the times of research for writing for this thesis. I would also like to extend my heartfelt gratitude towards the respondents who found time to help us in conducting the survey.
My friends Garima, Richa, Mukul and many others supported me in my research work. I want to thank them for all their help, support, interest and valuable hints. Especially, I would like to give my special thanks to my parents for their love and blessings that enabled me to complete this work. (Manish Verma, Roll: 17)
TABLE OF CONTENTS
Certificate 1 Abstract 2 3 6 Acknowledgements 2 Introduction 8 2.1 Introduction To The Project 8 2.2 Objectives Of The Study 3 Literature Review 3.2 Life Insurance 3.3 General Insurance 11 11 11 14 14 10
3.1 The History Of Indian Insurance Industry
3.4 Major Policy Changes 3.6 Analyst Insight 19
3.5 Changing Face of Indian Insurance Industry 15 3.6.1 Leverage 19 3.6.2 Liquidity 19 3.6.3 Profitability 3.7 Other factors 21 3.8 Porters 5 Forces Analysis 3.8.2 Power of Suppliers 3.8.3 Power of Buyers 23 3.8.4 Availability of Substitutes 23 3.8.5 Competitive Rivalry 3.9 Key Ratio Terms 24 3.9.1 Return on Equity 24 3.9.2 Return on Assets 24 3.9.3 Return on Total Revenue 24 3.9.4 Lapse Ratio 25 26 3.10 Insurance Penetration (Select Countries) 3.11 Insurance Density in India 27 4 Company Overview 28 4.1 Key Facts28 4.2 Business Description 29 4.3 History 30 4.4 Key Employees 36 4.5 Major Products and Services 4.5.1 Consumer Banking 4.5.2 Wholesale Banking 4.6 Revenue Analysis39 23 20 22 22 23
3.8.1 Threat of New Entrants
37 37 38
2 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11 4.6.1 Overview 39 4.6.2 Revenue by Division 39 4.6.3 Revenue by Geography 40 4.7 SWOT Analysis 41 4.7.1 Strengths 43 4.7.2 Weaknesses 45 4.7.3 Opportunities 47 4.7.4 Threats 50 4.8 Top Competitors 53 4.9 Locations & Subsidiaries 54 5 Research Methodologies 55 5.1 Research Design 55 5.1.1 Sample Selection & Size 55 5.1.2 Sampling Procedure 55 5.1.3 Data Collection 55 5.1.4 Analytical Tools 56 6 Analyses of Data 58 6.1 Demographic Profile 58 6.2 Purpose of Buying an Insurance Policy 6.3 Observations 71 6.4 Survey 2, (Customer Satisfaction) 72 7 Lead Generation Techniques 74 7.1 Complementary Partner Referrals 74 7.2 Cold Calling 75 7.3 Live Seminars 76 7.4 Trade Shows 76 7.5 Mass Mailings 77 7.6 Advertising 78 7.7 Internet Advertising 78 7.8 Email Publications 79 8 Sales Techniques 80 8.1 Presentations 80 8.2 Demonstrations 80 8.2.1 Significance of Demonstrations 80 9 The Close 82 9.1 What is a Close 82 9.2 Features of Successful Closing 82 10 Recommendations 85 11 Conclusions 86 12 Bibliography Appendices 88 87
65
Lead Generation, Sales Techniques & Closure
1. ABSTRACT
In todays tough competition, every company in the service sector tries hard to satisfy its customers. In the insurance sector, various new private companies have entered the industry by merging with foreign companies. They regularly offer new services, with the basic plan to attract new customers and to retain the present ones. This paper tries to understand consumer behavior in the insurance sector. The main objective of this paper is to identify customer preferences regarding plans and company, their purpose of buying insurance policies, their satisfaction level and their future plans for the new insurance policy. This way the lead generation process can be made easier and we can augment the profitability of our employer by making more sales. Data was collected with the help of a structured questionnaire from 140 customers from Patna. The sample was taken on the basis of the Convenience Sampling method. However, only 128 questionnaires were used for analysis as the remaining 12 were not filled properly by the respondents. Percentage, frequency and cross tabulation methods have been used for analysis in SPSS. Apart from the above research, we also had to take feedback of the existing customers of Standard Chartered Patna to rectify the problems, if any. It was only for determining satisfaction regarding tellers and branch facilities. 160 customers gave their feedback. The analyses were done using SPSS. The results show that Money Back Plan is the favorite among Patnaites. Most of the respondents have policies of LIC. Many interesting findings are observed. The method of sampling was convenience sampling and the respondents are from Patn
When the factors are mostly related to infrastructure and human capital, some revamp like implementing a CRM system, training the employees to deliver better results are quite easy and justifiable. Ultimately, customer is king and king should be treated like one. Looking at the growth of insurance industry, it is recommended that Standard Chartered becomes a wholly owned insurance subsidiary as well. Bancassurance is less profitable and the company may not sell third party products aggressively. For doing good business, it needs to improve considerably in improving customer services.
2. INTRODUCTION
Today, Standard Chartered PLC has diversified tremendously. It has truly become a universal bank. The Standard Chartered Patna branch sells many other third party products also apart from their usual products. One such product range is Bajaj Allianzs life insurance products. We were assigned the work to get a clear understanding about the products of Bajaj Allianz that Standard Chartered is selling.
2.1 INTRODUCTION TO THE PROJECT Bancassurance, i.e., banc + assurance, refers to banks selling the insurance products. Bancassurance term first appeared in France in 1980, to define the sale of insurance products through banks distribution channels. This term is extremely familiar among the European countries as banks selling insurance products in most of these countries are a common feature. Banks are being used as an effective alternate channel to distribute insurance products either as stand-alone insurance products or add-ons to the bank products by way of combining the insurance with typical banking products/services(). According to IRDA, bancassurance refers to banks acting as corporate agents for insurers to distribute insurance products. Literature on bancassurance does not
differentiate if the bancassurance refers to selling of life insurance products or non-life insurance products. Accordingly bancassurance is defined to mean banks dealing in insurance products of both life and non-life type in any forms.
The insurance sector plays a very vital role in the economic growth of any country. In todays world, the BFI sector plays a very important role for that matter. If we look at todays job opportunities, the service market creates more than 70% jobs. Today there are
24 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 23 life insurance companies operating in the country. The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the countrys GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country().
Selling a product is relatively easier than selling a service. It gets more difficult when it is a financial service. So, the sales people in the services industry in general and insurance industry in particular are always found struggling to generate leads and close the sales successfully. Generating leads is not as easy as it sounds. There are ways tried and tested but yet there is scope for innovation to reach out to more and more people who need our services but are either unaware or having the wrong information. Salesmanship is an art in itself and it takes times to gain experience and generate leads, close brilliantly and stay motivated. The ideas for generating leads, sales techniques and closure need not be the same for all the industries. A very focused and relevant approach need to be adhered to in order to boost sales and remain profitable. A generalist view may not work in a specialized sector like insurance.
1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11 2.2 OBJECTIVES OF THE STUDY
The main objective of this paper is to identify customer preferences regarding plans and the company, their purpose of buying insurance policies, satisfaction level and their future plans for the new insurance policy. Another important survey we conducted was to gain useful insights regarding the factors affecting satisfaction levels of bank customers. The analyses based on the research conducted will help us design ideas to generate leads, use effective sales techniques and convert more and more leads into sales in Patna region. If Standard Chartered Bank Patna takes relevant steps to curb the dissatisfaction among its customers, getting better revenues and selling more products, third party or otherwise would become easier.
3. LITERATURE REVIEW
People seek security. A sense of security may be the next basic goal after food, clothing, and shelter. An individual with economic security is fairly certain that he can satisfy his needs (food, shelter, medical care, and so on) in the present and in the future. Economic risk (which we will refer to simply as risk) is the possibility of losing economic security. Most economic risk derives from variation from the expected outcome().
3.1 THE HISTORY OF INDIAN INSURANCE INDUSTRY
The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years().
3.2 LIFE INSURANCE
In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to
the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society. Unethical practices adopted by some of the players against the interests of the consumers then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the socalled Life Insurance Corporation (LIC). It was felt that nationalization has lent the industry fairness, solidity, growth and reach.()
Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: The market contained 154 Indian and 16 foreign life insurance companies().
1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11 3.3 GENERAL INSURANCE
The General insurance business in India started with the establishment of Triton Insurance Company Limited in 1850 at Calcutta. In 1907, the first company, The Mercantile Insurance Ltd. was set up to transact all classes of general insurance business. General Insurance Council, a wing of the Insurance Association of India in 1957, framed a code of conduct for ensuring fair conduct and sound business practices. In 1968 the Insurance Act was amended to regulate investments and to set minimum solvency margins. In the same year the Tariff Advisory Committee was also set up. In 1972, The General Insurance Business (Nationalization) Act was passed to nationalize the general insurance business in India with effect from 1st January 1973. For these 107 insurers was amalgamated and grouped into four companys viz., the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. General Insurance Corporation of India was incorporated as a company
Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies, viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.()
3.4 MAJOR POLICY CHANGES
Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions:
Company is formed and registered under the Companies Act, 1956; The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company;
The company's sole purpose is to carry on life insurance business or general insurance
business
or
reinsurance
business.
The minimum paid up equity capital for life or general insurance business is Rs.100 crores. The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores.
The Authority has notified 27 Regulations on various issues which include Registration of insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad.()
3.5 CHANGING FACE OF INDIAN INSURANCE INDUSTRY
Indian life-insurance market is the target market of all the companies who either want to extend or diversify their business. To tap the Indian market there has been tie-ups between the major Indian companies with other International insurance companies to start up their business. The government of India has set up rules that no foreign insurance company can set up their business individually here and they have to tie up with an Indian company and this foreign insurance company can have an investment of only 24% of the total start-up investment. Indian insurance industry can be featured by: Low market penetration.
Ever growing middle class component in population. Growth of customers interest with an increasing demand for better insurance products.
Application of information technology for business. Rebate from government in the form of tax incentives to be insured.
Today, the Indian life insurance industry has a dozen private players, each of which are making strides in raising awareness levels, introducing innovative products and increasing the penetration of life insurance in the vastly underinsured country. Several of private insurers have introduced attractive products to meet the needs of their target customers and in line with their business objectives. The success of their effort is that they have captured over 28% of premium income in five years. The biggest beneficiary of the competition among life insurers has been the customer. A wide range of products, customer focused service and professional advice has become the mainstay of the industry, and the Indian customers forms the pivot of each companys strategy. Penetration of life insurance is beginning to cut across socio-economic classes and attract people who have never purchased insurance before. Life insurance is also now being regarded as a versatile financial planning tool. Apart from the traditional term and saving insurance policies, industry has seen the entry and growth of unit linked products. This provides market linked returns and is among the most flexible policies available today for investment(). Now products are priced, flexible, and realistic and sustain so people in better position to understand the risk and benefits of the product and they are accepting these innovative products.
So it is clear that the face of life insurance in India is changing, but with the changes come a host of challenges and it is only the credible players with a long term vision and a robust business strategy that will survive. Whatever the developments, the future and the opportunities in this industry will surely be exciting. Various types of life insurance policies: Endowment policies: This type of policy covers risk for a specified period, and at the end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy. Money back policies: This type of policy is for periodic payments of partial survival benefits during the term of the policy as long as the policy holder is alive. Group insurance: This type of insurance offers life insurance protection under group policies to various groups such as employers-employees, professionals, co-operatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost. Term life insurance policies: This type of insurance covers risk only during the selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger premium required for endowment and whole life policies. No surrender, loan or paid up values are in such policies.
Whole life insurance policies:
This type of policy runs as long as the
policyholder is alive and is covered for the entire life of the policyholder. In
this policy the insured amount and the bonus is payable only to nominee on the death of policy holder.
Joint life insurance policies: These policies are similar to endowment policies in maturity benefits and risk cover, but joint life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy.
Pension plan: a pension plan or annuity is an investment over a certain number of years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period.
Unit linked insurance plan: ULIP is a kind of insurance plan which provides life cover as well as return on premium paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV)().
3.6 ANALYST INSIGHT There are three major factors that we must consider when analyzing an insurance company.
3.6.1. Leverage. The first things you want to check when considering an insurance company are the quality and strength of the balance sheet. Everyday insurers are taking in premiums and paying out claims to policyholders. The ability to meet their obligations
toward these policy holders is extremely important. Companies should strike a balance between high returns while keeping leverage intact. A company that is highly leveraged might not be able to meet financial obligations when a large catastrophic event occurs(). The following three things act to increase leverage: 1) Writing more insurance policies 2) Dependence on reinsurance 3) Use of debt Reinsurance allows a company to pass off some of the risk exposure to other insurers (usually a good thing), but be careful. Too much dependence on reinsurance means that the company is not keeping a fair portion of responsibility for each premium dollar.
3.6.2. Liquidity. The first test of an insurer's ability to meet financial obligations is the acid test. It tests whether a firm has enough short-term assets (without selling inventory) to cover its immediate liabilities. Also take a close look at cash flow. An insurer should almost always have a positive cash flow. Other things to keep an eye on are the investment grades of the company's bond portfolio. Too many high and medium risk bonds could lead to instability.
3.6.3 Profitability. As with any company, profitability is a key determinant for deciding whether to invest. For an insurance company, there are two components of profits that we must consider: Premium/underwriting income and investment income. Underwriting income is just that: any revenue derived from issuing insurance policies. By averaging the premium's growth rates of several past years, you can determine the growth trends. Growing premium income is a "catch 22" for insurance companies. Ideally, you want the growth rate to exceed the industry average, but you want to be sure that this higher growth does not
come at the expense of accepting higher-risk clients. Conversely, a company whose premium income is growing at a slower rate might be too picky, looking for only the highest quality insurance opportunities. The one thing to remember is that higher premium collections do not equate to higher profits. Lower numbers of claims (via low risk clients) contribute more to the bottom line. The second area of profitability that you need to include in your analysis is investment income. As we mentioned earlier, a greater proportion of an insurer's income comes from investments. To evaluate this area, take a look at the company's asset allocation strategy (usually mentioned in the notes of the financial statements). You aren't likely to find any secrets in this area. A majority of the assets should be invested in low-risk bonds, equities or money market securities. Some insurers invest a substantial portion of their assets in real estate. If this is so, take a look at what type of property it is and where it is located. A building in New York City is much more liquid than one in Boise, Idaho. ROA, ROE, and the lapse ratios (discussed above) are also useful for evaluating the profitability of the insurer. Calculate the ROA and ROE numbers over the past several years to determine whether management has been increasing return for shareholders. The lapse ratio will help to tell whether the company has managed to keep marketing expenses under control. The more policies that remain in force (are not cancelled), the better.
3.7 OTHER FACTORS
Another major item that affects the performance of an insurance company is interest rate fluctuations. Insurance companies invest much of the collected premiums, so the income generated through investing activities is highly dependent on interest rates. Declining
interest rates usually equate to slower investment income growth. Another downside to interest rate fluctuations (not exclusive to insurance companies) is the cost of borrowing. Find out when the company's debt matures and how high the interest rates are. If the company is about to borrow or reprice its debt, there could be a big shock to cash flows as interest expense rises. Demographics play one of the largest roles in affecting sales for insurance, particularly life insurance. As people age, they tend to rely more and more on life insurance products for their retirement. Death benefit policies ensure that beneficiaries are financially secure once the insured dies, but in more recent years, the insurance industry has made great headway in offering investment/savings type insurance products. Because baby boomers are quickly approaching retirement age, take a close look at the suite of insurance products that the company is offering and, from that, see if it stands to benefit from this large portion of the population getting older. The one problem with analyzing insurance companies is that the disclosure usually isn't enough. Proper analysis requires substantial disclosure of things like reserve ratios, exposure to catastrophic/environmental loss and details of the company's operations. This isn't to say that the financial statements are not enough for adequate analysis, but to dig really deep, a person needs more information.
3.8 PORTER'S 5 FORCES ANALYSIS
3.8.1 Threat of New Entrants. The average entrepreneur can't come along and start a large insurance company. The threat of new entrants lies within the insurance industry itself. Some companies have carved out niche areas in which they underwrite insurance. These insurance companies are fearful of being squeezed out by the big players. Another threat for many insurance companies is other financial services companies entering the
market. What would it take for a bank or investment bank to start offering insurance products? In some countries only regulations that prevent banks and other financial firms from entering the industry. If those barriers were ever broken down, like they were in the U.S. with the Gramm-Leach-Bliley Act of 1999, you can be sure that the floodgates will open.
3.8.2 Power of Suppliers. The suppliers of capital might not pose a big threat, but the threat of suppliers luring away human capital does. If a talented insurance underwriter is working for a smaller insurance company (or one in a niche industry), there is the chance that person will be enticed away by larger companies looking to move into a particular market.
3.8.3 Power of Buyers. The individual doesn't pose much of a threat to the insurance industry. Large corporate clients have a lot more bargaining power with insurance companies. Large corporate clients like airlines and pharmaceutical companies pay millions of dollars a year in premiums. Insurance companies try extremely hard to get high-margin corporate clients.
3.8.4 Availability of Substitutes. This one is pretty straight forward, for there are plenty of substitutes in the insurance industry. Most large insurance companies offer similar suites of services. Whether it is auto, home, commercial, health or life insurance, chances are there are competitors that can offer similar services. In some areas of insurance, however, the availability of substitutes is few and far between. Companies focusing on niche areas usually have a competitive advantage, but this advantage depends entirely on
the size of the niche and on whether there are any barriers preventing other firms from entering.
3.8.5 Competitive Rivalry. The insurance industry is becoming highly competitive. The difference between one insurance company and another is usually not that great. As a result, insurance has become more like a commodity - an area in which the insurance company with the low cost structure, greater efficiency and better customer service will beat out competitors. Insurance companies also use higher investment returns and a variety of insurance investment products to try to lure in customers. In the long run, we're likely to see more consolidation in the insurance industry. Larger companies prefer to take over or merge with other companies rather than spend the money to market and advertise to people.
3.9 KEY RATIOS/TERMS
3.9.1 Return on Equity (ROE): Net Income/ Shareholder's Equity
ROE indicates the return a company is generating on the owners' investments. In the policyholder owned case, you would use policy holders' surpluses as the denominator. As a general rule for insurance companies, ROE should lie between 10-15%.
3.9.2 Return on Assets (ROA): Net Income + Interest Expense /Total Assets
ROA indicates the return a company is generating on the firm's investments/assets. In general, a life insurer should have an ROA that falls in the 0.5-1% range.
3.9.3 Return on Total Revenue: Net Income/Total Revenue
This is another variation of the profitability ratios. The insurance industry average return is approximately 3%. If possible, use the premium income and investment income as the numerator to find the profitability of each area. Reinsurance: This is the process of multiple insurers sharing an insurance policy to reduce the risk for each insurer. You can think of reinsurance as the insurance backing primary insurers against catastrophic losses. (To learn more, read When Things Go Awry, Insurers Get Reinsured.) The company transferring the risk is called the "ceding company"; the company receiving the risk is called the "assuming company" or "reinsurer."
3.9.4 Lapse Ratio: Lapsed Life Insurance Specified Period /Contracts in Force (in effect) at Start of Specified Period
This ratio compares the number of policies that have lapsed (expired) within a specified period of time to those in force at the start of that same period. It is a ratio used to measure the effectiveness of an insurer's marketing strategy. A lower lapse ratio is better,
particularly because insurance companies pay high commissions to brokers and agents that refer new clients.
3.10 INSURANCE PENETRATION (SELECT COUNTRIES)*
Insurance penetration is measured as ratio of premium (in US Dollars) to GDP (in US Dollars).
Source: ()
3.11 INSURANCE DENSITY IN INDIA
Insurance density is measured as ratio of premium (in US Dollar) to total population
Source: ()
4. COMPANY OVERVIEW
Standard Chartered is a financial services provider. The group is active in retail and wholesale banking. The group operates in the Asia Pacific Region, South Asia, the Middle East, Africa, the UK, and the Americas. It is headquartered in London, the UK and employs 85,231 people. The group recorded revenues of $16,062 million during the financial year ended December 2010 (FY2010), an increase of 5.8% over FY2009. The operating profit of the group was $6,122 million in FY2010, an increase of 18.9% over FY2009. The net profit was $4,332 million in FY2010, an increase of 28.2% over FY2009.
4.1 KEY FACTS
Head Office Standard Chartered PLC 1 Aldermanbury Square London, EC2V 7SB Phone Fax Web Address Revenue/Turnover (USD Mn) Financial Year End LSE Ticker NSE Ticker Hong Kong Stock Exchange Ticker GBR 44 20 78858888 44 20 78859999 http://www.standardchartered.com 16,062.0 December STAN STAN 02888
4.2 BUSINESS DESCRIPTION
Standard Chartered is a UK based banking group. The group has a history of over 150 years in banking and operates in some of the world's fastest-growing markets. Standard Chartered has a global network of over 1,700 branches and outlets and 5,600 ATMs spread across 70 countries. The group leverages its onshore presence across Asia, Africa and the Middle East to offer up to date local market information, access to a range of currency markets, country-specific global risk management strategies, and customized capital raising and liquidity management solutions. Standard Chartered has presence in the Asia Pacific Region, South Asia, the Middle East, Africa, the UK and the Americas. The group operates through two business divisions: consumer banking and wholesale banking. The consumer banking division serves millions of customers across Asia, Africa and the Middle East. This division provides a range of products and services such as credit cards, personal loans, mortgages, auto finance, deposit taking and wealth management services to individuals and small and medium enterprises (SMEs). The wholesale banking division provides corporate and institutional clients with services in trade finance, cash management, lending, securities services, foreign exchange, debt capital markets and corporate finance.
4.3 HISTORY
Standard Chartered began its operations in 1853 as the Chartered Bank of India, Australia and China (Chartered Bank). According to a grant by a Royal Charter by Queen Victoria,
the bank's mandate was to finance trade between the UK and its Asian colonies. The bank opened its branches in Calcutta and Shanghai in 1858. In the next year, the Chartered Bank set-up operations in Hong-Kong and Singapore. Over the next 40 years, the Chartered Bank expanded throughout Asia. In 1957, Chartered Bank entered the Middle East by acquiring Eastern Bank. Its network grew substantially in 1965, when it merged with the former Bank of British West Africa. The merger added 100 branches, in Nigeria, Sierra Leone, Cameroon and Gambia, to the Chartered Bank's network. In 1969, the Chartered Bank merged with Standard Bank, which had a major presence in Africa. The Asian and Middle Eastern business of Standard Chartered grew rapidly in the early 1970s. It also expanded in the US market with the purchase of Union Bancorp. The bank tried to gain entry into the UK market in 1981 by purchasing Royal Bank of Scotland, but this deal did not materialize. Standard Chartered went public in 1985. Due to trade sanctions against South Africa, Standard Chartered sold its South African operations in 1987. Despite the recession faced in 1990, Standard Chartered continued to expand in select markets and refocused its attention towards consumer, corporate and institutional banking in emerging markets. In 1998, Standard Chartered purchased a controlling interest in Banco Exterior de Los Andes (Extebandes). This deal expanded the operations of Standard Chartered in Latin America. In the following year, Standard Chartered acquired the global trade finance business of Union Bank of Switzerland. Standard Chartered also acquired Thailand's Nakornthon Bank. The group expanded in China through a deal with the Bank of China.
Standard Chartered continued its growth strategy in Asia with the acquisition of Grindlays Bank, in 2000. Grindlays Bank had strong presence in South Asia and the Middle East. Standard Chartered also acquired Chase's consumer banking business in Hong Kong. This acquisition made Standard Chartered a market leader in Hong Kong. The group began a major restructuring exercise in 2000 by reducing its workforce by 20%. In 2002, Standard Chartered expanded its reach in mainland China by opening a retail branch in Shanghai. In 2003, the bank opened a branch in Kabul. Standard Chartered also started providing banking services in Iraq and set-up retail banking operations in Korea. In the same year, Standard Chartered expanded its operations in South Africa through the acquisition of 20twenty. Standard Chartered disposed its stake in KorAm in 2004. In China, Standard Chartered received regulatory approval to conduct Renminbi business in China. In Indonesia, Standard Chartered formed a partnership with PT Astra International to acquire a controlling interest in PT Bank Permata, Indonesia. Subsequently, Standard Chartered acquired the project finance business of ANZ Group. In China, the group acquired a 19.9% stake in Bohai Bank. In 2005, Standard Chartered acquired majority stake in Korea First Bank. The group formed a partnership with Radian Group (mortgage insurer) through which, Radian would become the exclusive provider of mortgage insurance for Standard Chartered. In Thailand, Standard Chartered integrated its banking businesses into a single entity. The group launched its Korean operations under a new brand identity SC First Bank. In Bangladesh, Standard Chartered acquired the commercial banking business of American Express Bank.
In Japan, the group opened its first retail branch in Marunouchi, Japan. Here, Standard Chartered targeted high net worth individuals. The group also launched priority banking (a service designed for customers with deposits in excess of JPY20 million) asset management services for wealthy clients. Standard Chartered signed an agreement for the formation of China Bohai Bank. In 2006, in China, Standard Chartered received approvals to open three more branches in Shanghai, Beijing, and Shenzhen representing a significant step forward in the group's expansion plans in China. The group formed a strategic partnership with Fleming Family & Partners (FF&P) to expand private wealth management in Asia and the Middle East. The private equity arm of Standard Chartered Bank signed an investment agreement with Dongfeng Motor Group (Dongfeng) for a $50 million investment in Dongfeng's Hong Kong initial public offer. Further in 2006, Standard Chartered acquired a majority stake in Pakistan's Union Bank. The consortium of Standard Chartered Bank and Astra International signed an agreement to acquire a further interest of 25.90% in Bank Permata Tbk. In Indonesia, Standard Chartered acquired Tgis from the state-owned asset management company, Perusahaan Pengelola Aset. Subsequently, Standard Chartered expanded its business in Taiwan by acquiring Hsinchu International Bank. Standard Chartered launched a new initiative named 'China-Africa Trade Corridor' to offer financial solutions to small and medium enterprises (SMEs) in China and Africa. This initiative offered financing solutions to Chinese and African SMEs that ventured abroad. In 2007, Standard Chartered acquired Pembroke, an aircraft leasing, financing, and management firm. In the same year, the group completed the acquisition of Harrison Lovegrove, a leading global oil and gas M&A advisory boutique.
In 2008, Standard Chartered acquired a 49% strategic stake in India's UTI Securities, a leading local broking firm. It also acquired an 80% stake in South Korea's A Brain, a funds administration company. Standard Chartered completed the acquisition of American Express Bank (AEB), a wholly owned subsidiary of American Express Company, with operations in 47 countries Standard Chartered acquired South Korea's Yeahreum Mutual Savings Bank ,Lehman Brothers' Brazilian franchise, and the 'good bank' portion of Asia Trust and Investment Corporation. In the same year, it increased its investment in UTI Securities to 74.9%. Standard Chartered completed the acquisition of Casenove Asia, in February 2009. The group completed the acquisition of First Africa Group Holdings Limited (First Africa), a leading pan-African mergers and acquisitions advisory firm, raising its holding to 100%, in July 2009. In April 2010, the group acquired 100% of the consumer finance business of GE Capital (Hong Kong) Limited, a Hong Kong (restricted license) banking company. The Group purchased this interest for $144 million, recognizing goodwill of $3 million. In May 2010, Standard Chartered launched first-ever Indian Depository Receipt (IDR) offer. In June 2010, Standard Chartered Bank, a unit of Standard Chartered, invested approximately $500 million in Agricultural Bank of China Limiteds H-Share Initial Public Offering in Hong Kong. In August 2010, the group acquired 100% of the consumer finance business of GE Commercial Financing (Singapore) Limited in Singapore. The businesses were acquired for $70 million and goodwill of $14 million was recognized. On October 1, 2010 Standard Chartered purchased the remaining 25.1% interest in Standard Chartered STCI Capital Markets (STCI) for $18 million. By virtue of this
transaction STCI became a subsidiary of the Group. The fair value of the 74.9% interest held by the group at October 1, 2010 was included in the purchase. Between October 31, 2010 and December 5, 2010, the group acquired the custody business of Barclays Bank PLC across various locations in Africa. The business was acquired for $130 million and goodwill of $21 million was recognized. In January 2011, Standard Chartered and S&P Indices launched a co-branded Greater China equity performance benchmark, the S&P/StanChart Greater China Index. Its constituents include the 50 largest blue-chip stocks by market capitalization listed in Hong Kong, Taiwan, Shanghai and Shenzhen. In the same month, Standard Chartered Bank entered into an agreement to acquire GE Money Pte., Ltd., a Singapore-based provider of consumer financial services and a wholly-owned unit of US-based industrial conglomerate General Electric Company. In March 2011, Standard Chartered acquired a 3% stake in United Stock Exchange of India, Ltd., an India-based currency futures trading exchange.
4.4 KEY EMPLOYEES
Name Peter Sands Steve Bertamini
Job Title Group Executive Group
Board Chief Executive Board Chief Executive Board
Compensation 7780000 USD 50320000 USD
Executive Director & Chief Officer, Richard Meddings Banking Group Executive Consumer Finance Executive Board Executive Executive Board and Chief Officer Executive Executive Board & Chief Officer, Non Executive 1619000 USD 54210000 USD 45240000 USD
Director Jaspal Singh Bindra Group Director Executive Mike Rees Asia Group Director Executive John Peace Jamie Dundas Val Gooding Rudy Markham Ruth Markland
Wholesale Banking Chairman Director Director Director Director
Board Non Executive Board Non Executive 226000 USD Board Non Executive 292000 USD Board Non Executive 336000 USD
Board Source: ()
4.5 MAJOR PRODUCTS AND SERVICES
Standard Chartered is a financial services provider. The group is active in retail and wholesale banking. The group's key products and services include the following:
4.5.1 Consumer banking: Credit Cards Employee Banking Insurance International Banking Investments Loans and Mortgages Personal banking Private banking Savings and Banking Services SME banking
4.5.2 Wholesale banking: Corporate Finance Financial markets Principal Finance
Transaction banking Islamic banking: Personal banking Wholesale banking
4.6 REVENUE ANALYSIS
4.6.1 Overview
The group recorded revenues of $16,062 million during FY2010, an increase of 5.8% over FY2009. For FY2010, Other Asia Pacific, the group's largest geographic market, accounted for 19.7% of the total revenues.
Standard Chartered generates revenues through two business divisions: wholesale banking (62.1% Of the total revenues during FY2010) and consumer banking (37.9%).
4.6.2 Revenue by Division
The wholesale banking division recorded revenues of $9,979 million ($9,979 million) in FY2010, an increase of 7.4% over FY2009. The Consumer banking division recorded revenues of $6,079 million in FY2010, an increase of 8% over FY2009.
4.6.3 Revenue by Geography
Other Asia Pacific, Standard Chartereds largest geographical market, accounted for 19.7% of the total revenues in FY2010. Revenues from other Asia Pacific reached $3,165 million in FY2010, an increase of 9.6% over FY2009. Hong Kong accounted for 15.6% of the total revenues in FY2010. Revenues from Hong Kong reached $2,500 million in FY2010, an increase of 5.5% over FY2009.
Middle East & other S Asia accounted for 13.5% of the total revenues in FY2010. Revenues from Middle East & other S Asia reached $2,167 million in 2010, an increase of 4.3% over FY2009. India accounted for 12.6% of the total revenues in FY2010. Revenues from India reached $2,028 million in FY2010, an increase of 11.9% over FY2009. Singapore accounted for 10.8% of the total revenues in FY2010. Revenues from Singapore reached $1,738 million in FY2010, an increase of 9.2% over FY2009. Korea accounted for 10.6% of the total revenues in FY2010. Revenues from Korea reached $1,698 million in 2010, an increase of 9.3% over FY2009. Americas UK & Europe accounted for 9.5% of the total revenues in FY2010. Revenues from Americas UK & Europe reached $1,520 million in 2010, a decrease of 15.6% compared to FY2009.
4.7 SWOT ANALYSIS Standard Chartered is a financial services provider. The group is active in consumer and wholesale banking. The operations of Standard Chartered are spread across 70 countries. Though the group is based in UK, its operations are primarily focused in Asia, the Middle East, and Africa. Standard Chartered's revenues are spread over different geographic markets. The group's diversified revenues protect it, partially, from changing economic cycles in different parts of the world. However, the group is threatened by inconsistent
global regulatory reform and general conditions in the banking industry which may impact its profitability.
Strengths
Diversified revenue with a strong base in Asia Strong capital and liquidity position Strong cost management sustaining
Weaknesses
Shift towards wholesale banking could affect its growth prospects Weak asset liability management Exposure to Lehman Brothers has tarnished image and caused financial damage
operating margins Inorganic growth helping in geographic expansion
Opportunities
Acquisition of GE Money in Singapore increases market share in auto-loans Growth in Islamic banking to help in improving revenue from Middle East and South Asia region Investments in technology could help in increasing customer reach and efficiency Partnership with Chinese firms helping increase penetration in China
Threats
Likely rise in wholesale funding cost could affect margins Inconsistent global regulatory reform likely to increase compliance cost Inability to deal with financial crime could result in huge financial liability Political turmoil in some Middle
Eastern and African markets likely to result in contraction of geographic footprint
Source: ()
4.7.1 STRENGTH
Diversified revenues with a strong base in Asia:
The operations of Standard Chartered are spread across 70 countries. It has a network of over 1,700 branches and outlets and 5,600 ATMs in more than 70 countries and territories across the globe. Though the group is based in UK, its operations are primarily focused in Asia, the Middle East, and Africa. Standard Chartered's revenues are spread over different geographic markets. Asia provided more than 80% of the group's income and its operating profit in FY2009 and FY2010. In 2009, for the first time, income from the group's biggest markets - Other Asia Pacific exceeded $3 billion in revenues. Additionally, income from its other big Asian markets like Hong Kong, India, and Middle East and Other South Asia exceeded $2 billion in revenues, each, reflecting Standard Chartered's increasing diversity. The group's diversified revenues protect it, partially, from economic cycles.
Strong capital and liquidity position:
Standard Chartered's capital position remained strong in FY2010. The group's Tier 1 ratio was 14% (11.5% in 2009), well above regulatory target range. The group's Core Tier 1 ratio at December 31, 2010 was 11.8%, compared to 8.9% at the end of 2009. It was strengthened by strong organic equity generated through $5.2 billion rights issue. Additionally, the groups capital was strengthened by retained profits of $4.4 billion and the issue of Indian Depository Receipts in June 2010 of $503 million. Further, Standard
Chartered remains highly liquid. The group remains a net lender into the interbank market and had an advance to deposit (AD) ratio of 77.9% at December 31, 2010. The group's strong capital and liquidity position helps it to deal with future changes in an uncertain economic and regulatory environment.
Strong cost management sustaining operating margins:
Standard Chartered maintained tight control over its expenses in FY2009 and FY2010. In FY2010, revenues registered an annual growth of 5.8% while operating income rose by 18.9%. Consequently, operating margin improved from 33.9% in FY2009 to 38.2% in FY2010.The group's cost management effectiveness is also evident from flat cost to income ratio. The normalized cost to income ratio improved from 56.1% in 2008 to 55.9% in 2010. Strong cost management is sustaining the group's profit margins even in a difficult international banking environment.
Inorganic growth helping in geographic expansion:
Standard Chartered has history of growing aggressively through both organic and inorganic route. The group has been very active in scouting for inorganic targets since 2000. It has acquired more than 15 financial services firm during last decade (200110). Additionally, during this time, it also made strategic investments in financial services companies located throughout the world. For instance, in June 2010, it invested in Agricultural bank of China, one of the top commercial banks in China. Earlier in 2008, Standard Chartered increased its investment in UTI Securities to 74.9%.
Inorganic growth has helped it to expand its geographic footprint from 50 countries in 2001 to 70 countries in 2010.
4.7.2 WEAKNESSES
Shift towards wholesale banking could affect its growth prospects in the last three to four years; Standard Chartered has shifted its focus to wholesale banking led growth. Income from wholesale banking registered a year-on-year growth of 24.1% in FY2009 while in 2010 the growth was 7.4%. During the same time, consumer banking division grew by -5.4% in FY2009 and 7.9% in FY2010. The wholesale banking strategy seems to be working well. However, unlike in consumer banking, banks find it hard to squeeze margins in wholesale banking. Moreover, there seems to be a shift towards consumer banking and growth prospects in wholesale banking look limited.
Weak asset liability management:
Standard Chartereds asset and liability management was adversely impacted in FY2010. This happened primarily because the group re-invested its maturing investments at lower yields in the early part of 2010. As a result, accrual income was lower, largely because of flatter money market yields, especially in markets such as the US and Hong Kong. Additionally, the groups cash balances increased $14.6 billion compared with 2009, because of $5.2 billion collected from rights issue and strong growth in deposit. As the alternate deployment of this surplus cash is pending, it has parked surplus fund at central
banks. This will further affect the earning capability of the company as deposits and cash will outgrow loan book accounts. Weak asset liability management would affect the earnings of the group.
Exposure to Lehman Brothers has tarnished image and caused financial damage:
Standard Chartered has some exposure to Lehman Brothers that was declared bankrupt in 2008. The group has sold a Lehman Brothers-linked structured derivatives product to its Hong Kong customers. Bankruptcy of Lehman Brothers triggered the Securities and Futures Commission and Hong Kong Monetary Authority to seek damages from Standard Chartered. In its 2010 annual report, the group mentioned that it settled the suit relating to Lehmans structured notes by agreeing to pay $192 million. Though, the group has settled the suit, it is still to emerge from the reputation damage suffered due to the sale of Lehman Brothers-linked structured derivatives product. The groups sales of structured products are likely to see a dip in the months to come.
4.7.3 OPPORTUNITIES
Acquisition of GE Money in Singapore increases market share in auto-loans Standard Chartered has entered into an agreement to acquire GE Money Pte., Ltd., a Singaporebased provider of consumer financial services and a wholly-owned unit of US-based industrial conglomerate General Electric Company. As of December 31, 2009, GE Money (Singapore) had gross assets of S$2,350 million ($1,672.48 million). The assets to be acquired are modest relative to Standard Chartered's overall balance sheet of $516.5 billion at the end of December 2010. Yet the purchase will give Standard Chartered a double-digit share of the Singapore autoloan market, where it has not been active for a decade. Standard Chartered already earns about 15% of its profit before tax in Singapore, and the deal will increase the size of its consumer business there, in line with the group's stated strategy. Owing to high car prices in Singapore, a car loan can be a significant financial liability for many households, and therefore a material addition to Standard Chartered's product suite. Standard Chartered has been restructuring its consumer bank, with an emphasis on improving cross-selling, similar to what it has achieved with its wholesale bank. The addition of auto finance capability should support this goal in Singapore and bolster Standard Chartered's broader efforts to return its consumer bank's earnings contribution to historical levels after several years of wholesale bank earnings dominance.
Growth in Islamic banking to help in improving revenue from Middle East and South Asia region:
Islamic finance has become a major global industry, with hundreds of institutions currently involved in both Muslim countries and international markets. Assets of
financial institutions offering Islamic products and services are estimated to have reached to approximately $300 billion, registering a growth of 25% year-on-year over the past decade. Islamic banking assets are expected to grow at a faster rate than non-Islamic banking assets. By 2013, Islamic banking assets are expected to touch $1 trillion. Since, Standard Chartered has strong presence in Middle East and South Asia, the group is expected to benefit from the growth in the industry.
Investments in technology could help in increasing customer reach and efficiency:
Standard Chartered has been deploying significant resources (though it doesnt disclose R&D spend) to transform its banking infrastructure. For instance, recently, the bank has standardized its platforms, re-engineered its processes and directed its activities towards its principal shared service centers in Chennai, Kuala Lumpur, and Tianjin. These initiatives has helped it to drive down technology and operating running costs as a percentage of income from just over 12% six years ago, to less than 8% currently, even during a period of substantial volume growth. Additionally, the bank is also registering reducing unit transaction costs and has markedly reduced service failures, down by 70% in three years. The company has also been investing in technology in order to increase its customer reach. For example, in Africa, it partners with telecommunication providers in several markets to enable people to use their mobile phones for payments and transfers, whether or not they hold a bank account. Additionally, in Singapore and Malaysia, it launched Breeze, an iPhone banking application that enables customers to pay bills, transfer
money, and find ATMs though their Apple phone. Investments in technology could help the group in increasing customer reach and efficiency().
Partnership with Chinese firms helping increase penetration in China:
Standard Chartered has been operating actively in the Chinese securitization market. The group assisted many organizations in China in this market. Standard Chartered assisted Industrial and Commercial Bank of China (ICBC) in the issuance of assets-backed securities. The bank provided the whole-process securitization value-added service including professional experience and the high-efficiency trading system and securitization products for the Chinese lender. Standard Chartered also assisted ICBC on its internal preparation work of securitization business and also in the product promotion. The bank also offered its services to many Chinese banks including China Construction Bank, China Development Bank, China Merchants Bank, China CITIC Bank, and Fujianbased Industrial Bank in the assets-backed securitization pilot. In 2010, the group invested $500 million in Agricultural Bank of China Limited's H-Share in Hong Kong. The two firms signed an agreement to develop new business opportunities together. Standard Chartered can leverage its partnerships with Chinese firms to increase its penetration in China().
4.7.4 THREATS
Likely rise in wholesale funding costs could affect margins:
The Independent Commission on Banking (ICB), which has been given the task of structural and related non-structural reforms to the UK banking sector, released its Interim Report on April 11, 2011. Under the proposals set out in the ICB interim report, UK bank's retail arms will be ring-fenced, holding their own capital. This means that investment banking arms will not have to fund on a standalone basis, as they will be allowed to move capital about within the group once a level of 10% core tier one capital is achieved in the retail subsidiary. However, with these retail operations ring-fenced, costs of funding are likely to rise. According to the ICB report, the proposals if implemented could result in a cost of $20 billion to $24.6 billion for UK banks. Since, the group is registered and listed in the UK; the likely rise in wholesale funding could affect its margins.
Inconsistent global regulatory reform likely to increase compliance cost:
Inconsistent global regulatory reform remains one of the biggest concerns for Standard Chartered bank. Rather than seeing increasing global co-ordination and consistency of regulation, Standard Chartered is seeing increased fragmentation and unilateral action. For example, the UKs recent announcement that the bank levy will be implemented in full during 2011 means that the levy will cost it around $180 million post-tax this year. Whilst it is broadly supportive of much of the regulatory reform agenda, the sheer scale
of actual and potential changes, when applied across all the markets it operates in, represents a very considerable challenge. The directions of banking regulatory reforms suggest that cost of compliance is likely to increase in 2011 and beyond. Moreover management's time spent on regulatory issues is likely to be higher than it had been so far. As a result, profit margins for banks are likely to be suppressed.
Inability to deal with financial crime could result in huge financial liability:
Standard Chartered, being an international bank, has to deal with money laundering, terrorist financing, fraud, bribery, and market abuse issues. Although it is investing significantly in tools to identify market abuse and to tackle fraud, particularly e-crime, any slip-up from the banks side could make it liable for huge financial liability or may also result in reputation loss.
Political turmoil in some Middle Eastern and African markets likely to result in contraction of geographic footprint:
Standard Chartered faces challenges in some Middle Eastern and African markets from political turmoil. For instance, rapid political changes in Egypt, Tunisia, and Libya can be disruptive for the banks business activity in the short-to-medium term. Although, currently these markets represent small portion of its overall business, any further deterioration in their political scenario or unrest in any of the existing or new Middle Eastern or African markets could lead to contraction in the banks geographic footprint().
4.8 TOP COMPETITORS
The following companies are the major competitors of Standard Chartered PLC Citigroup Inc. HSBC Holdings plc State Bank of India ICICI Bank Limited Lloyds TSB Group plc Credit Suisse Group Deutsche Bank AG Goldman Sachs Group Fortis HDFC Bank Limited
4.9 LOCATIONS AND SUBSIDIARIES
Head Office
Standard Chartered PLC 1 Aldermanbury Square London, EC2V 7SV GBR P: 44 20 78858888 F: 44 20 78859999 http://www.standardchartered.com
Standard Chartered India Standard Chartered Bank 90 Mahatma Gandhi Road Mumbai 400 001 IND http://standardchartered.co.in
5. RESEARCH DESIGN
5.1 Research Design This has been classified into 4 parts: A. Sample Selection & Size; B. Sampling Procedure; C. Data Collection; and D. Analytical Tools.
5.1.1 A. Sample Selection & Size i) The first step of research is sample selection, for which the respondents were customers in Patna. The total customers covered were 150. The same number of questionnaires was distributed, but only 135 fully-completed questionnaires were received. Results are based on the response of these 135 responses only. ii) For the bank customers satisfaction survey, 160 customers of Standard Chartered were taken for a few days. Sampling was easy because we could approach them as and when they came to the branch.
5.1.2 B. Sampling Procedure The customers are selected by the Convenience Sampling method. It is also known as Accidental or Haphazard sampling().
5.1.3 C. Data Collection For the present study, the survey method was used for collecting primary data. A structured questionnaire was used for the purpose. The questionnaire included mostly multiple choice questions. The main source of secondary data has been Proquest Database, IRDA website and Journal of Marketing.
5.1.4 D. Analytical Tools The data thus collected, was tabulated, interpreted and analyzed with a view to make the study meaningful. In the present study, percentage, frequency, cross tabulation methods and SPSS have been used for analysis.
Life insurance products are mainly assigned to provide to a survivor, family or business, in the event of the death of the insured. This product helps the customer to replace income, repay mortgages, debts and taxes, and also provide liquidity for other purposes. There are two basic types of life insurance policies: term insurance, which provides coverage for a specified period of time (term), and endowment insurance, which combines a death benefit with a cash value component. The endowment insurance offers lifetime protection, while term insurance may be the most affordable option for buying life insurance, mainly for the financial protection it offers, and when the need for life insurance is temporary. Based on the demographic profile, various products have been created, and continuous product innovations are done to meet the growing needs of the different segments of the society. Some of the product categories offered to the different segments is shown in Table 1
Table 1: Various Insurance Plans for Different Age Groups Age Group (in Yrs) 0-20 20-49 50 and Above Policy Children Plan: Educational Needs, Marriage Plans Money Back, Endowment Plan, Loan Cover, Term Plans, ULIPs: Investments, Tax Planning Pension Plans: Security and Regular Flows
6. ANALYSES OF DATA The data collected through the structured questionnaire were coded and tabulated according to the needs of the study. Survey 1 6.1 DEMOGRAPHIC PROFILE: Of the total respondents, 73.4% are male, while 26.6% are female.
Table 2: Gender Cumulative Frequency Valid F M Total 34 94 128 Percent 26.6 73.4 100.0 Valid Percent 26.6 73.4 100.0 Percent 26.6 100.0
Respondents are mostly from the age grouping 26-30 (25%), followed by 20-25 (21.1%), and 31-35(20.3%).
Table 3: Age Cumulative Frequency Valid 20-25 26-30 31-35 36-40 41-45 >50 Total 27 32 26 11 18 8 128 Percent 21.1 25.0 20.3 8.6 14.1 6.3 100.0 Valid Percent 21.1 25.0 20.3 8.6 14.1 6.3 100.0 Percent 27.3 52.3 72.7 81.3 95.3 6.3
Most of the respondents (71.9%) are married.
Table 4: Marital status Cumulative Frequency Valid Married Others Single Total 85 1 42 128 Percent 66.4 .8 32.8 100.0 Valid Percent 66.4 .8 32.8 100.0 Percent 66.4 67.2 100.0
Again, 28.9% of the respondents have an annual income in the range of 2-3 lacs.
Table 5: Income Range (in lacs) Cumulative Frequency Valid <1 1-2 2-3 3-4 >5 Total 25 15 37 32 7 128 Percent 19.5 11.7 28.9 25.0 5.5 100.0 Valid Percent 19.5 11.7 28.9 25.0 5.5 100.0 Percent 19.5 36.7 65.6 90.6 25.0
Most of the respondents (43.8%, 56 out of 128) are private employees. The respondents demographic profile, in terms of the frequency and percentage, is detailed in Tables and graphically as well.
Table 6: Occupation Cumulative Frequency Valid Business Farmer Govt. Employee Others Private Employee Self Employed Total 10 1 32 19 56 10 128 Percent 7.8 .8 25.0 14.8 43.8 7.8 100.0 Valid Percent 7.8 .8 25.0 14.8 43.8 7.8 100.0 Percent 7.8 8.6 33.6 48.4 92.2 100.0

Table 7: Insurance Company * Type of policy Cross tabulation Count Type of policy Child Benefit Insurance Company Aviva Bajaj Allianz Birla Sun CanaraHSBC HDFC Life Kotak Mahindra LIC Reliance SBI Life Total 0 1 0 0 3 0 2 0 0 6 Money Back 3 6 3 0 1 2 48 0 3 66 pension plan 0 0 0 0 0 0 2 0 0 2 Simple Term 0 2 1 0 3 4 24 1 5 40 ULIP 3 1 0 2 0 2 4 0 2 14 Total 6 10 4 2 7 8 80 1 10 128
As shown in table 62.5% respondents have policies of LIC and 37.5% have policies of private companies like HDFC Standard Life, Kotak Life, Aviva, Birla Sun Life, Bajaj Allianz etc. Of the respondents, 51.6% have Money Back Plan, out of which 72.72% plans are of LIC. 31.3% of the respondents have Simple Term Plan, out of which 60% are of LIC, which means that customers still prefer public sector companies when compared to private sector companies. In the ULIP (Unit Linked Insurance Polices) Plan category, 37% of the total policies (11%) belong to LIC again. Only 1.6% and 4.7% of the total 128 respondents have Pension Plans and Child Benefits Plans respectively.
6.2 PURPOSE OF BUYING AN INSURANCE POLICY
The results of this survey (Table 8) show that protection is the main purpose of buying an insurance policy. It accounts for almost 50% of the purposes. Many respondents cited Income Tax rebate as the main purpose of buying a policy.
Table 8: Purpose Cumulative Frequency Valid Income Tax Protection return Return returns Savings Total 29 59 4 6 1 29 128 Percent 22.7 46.1 3.1 4.7 .8 22.7 100.0 Valid Percent 22.7 46.1 3.1 4.7 .8 22.7 100.0 Percent 22.7 68.8 71.9 76.6 77.3 100.0
It is observed from the data (Table: 9) that only 9.3% of the policy holders faced problems by their insurer. So, the industry seems to be doing good providing better services to its customers.
Table 9: Insurance Company * Problem( y/n) Cross tabulation Count Problem( y/n) No Insurance Company Aviva Bajaj Allianz Birla Sun CanaraHSBC HDFC Life Kotak Mahindra LIC Reliance SBI Life Total 5 8 3 2 7 8 73 1 9 116 Yes 1 2 1 0 0 0 7 0 1 12 Total 6 10 4 2 7 8 80 1 10 128
Private players like Kotak, HDFC Life, and CanaraHSBC didnt register any problem and that shows the efficiency and competitive environment these players have brought in.
It is also observed from the data (Table: 10) that 77.34% of the respondents will suggest to a friend or relative about their insurance company and its services. 100% customers of Birla Sun and CanaraHSBC said they will definitely suggest to their friends, which means they are totally satisfied with company policies and services.
Table 10: Insurance Company * Suggest Others to get insured Cross tabulation Count suggest Others to get insured No Insurance Company Aviva Bajaj Allianz Birla Sun CanaraHSBC HDFC Life Kotak Mahindra LIC Reliance SBI Life Total 2 6 0 0 3 4 12 1 1 29 Yes 4 4 4 2 4 4 68 0 9 99 Total 6 10 4 2 7 8 80 1 10 128
However, a considerable 15% of the LIC policy holders would not suggest their friends and relatives to buy policies from LIC. This indicates that there is a good market for private players and they can really take a leap forward to gain a significant market share. Customers of Bajaj Allianz are mostly dissatisfied and would not suggest others to go for it. When the question was asked to the respondents regarding how they would cover an additional insurance need in the near future, and whether they would acquire a policy from some other company, or from the same insurance company, 60.9% told that they

Table 11: Insurance Company * Go with the same insurer Cross tabulation Count Go with the same insurer No Insurance Company Aviva Bajaj Allianz Birla Sun CanaraHSBC HDFC Life Kotak Mahindra LIC Reliance SBI Life Total 4 7 1 2 5 8 18 1 4 50 Yes 2 3 3 0 2 0 62 0 6 78 Total 6 10 4 2 7 8 80 1 10 128
would buy from the same company, while 39.06% told that they would buy from other companies. By doing a cross tabulation of company name vs. new insurance (Table: 11), it is found that 77.5% customers of LIC will again go to the same insurer for additional policies in future. It can be a set-back for the private players operating in Patna to know that there is still a huge demand for LIC. Though private companies are coming up with many innovative and moneymaking policies, LIC holds a better brand image here. Many customers of private players say that they would not go to the same insurer for additional policies. This can be attributed to their desire to try out other insurers who are giving better offers and product features.
6.3 OBSERVATIONS The following observations can be derived from the analysis:

73.4% respondents are male while 23.6% are female; Respondents are mainly from the age group 26-30 (25%); Most of the respondents (43.8%, 56 out of 128) are private employees; 62.5% respondents have policies of LIC and 37.5% have policies of private companies like HDFC Standard Life, Kotak Life, Aviva, Birla Sun Life, Bajaj Allianz etc;
51.6% have Money Back Plan, out of which 72.72% plans are of LIC. 31.3% of the respondents have Simple Term Plan, out of which 60% are of LIC. This means that money back policy is the hot favorite among the Patnaites;
Only 11% of the respondents have ULIP ; Only 1.6% and 4.7% of the total 128 respondents have Pension Plans and Child Benefits Plans respectively;
Protection is the main purpose of buying an insurance policy; A significant 15% LIC policy holders faced problems; 77.34% of the respondents would suggest their friends and relatives to take policies from their insurers;
Only 60.93% of the respondents will buy additional policies from the same insurer.
6.4 Survey 2 (Customer Satisfaction) Case Processing Summary N Cases Valid

a
% 100.0 .0 100.0 based on all
160 160
Excluded 0 Total a. Listwise deletion
variables in the procedure. Reliability Statistics Cronbach's Alpha .715 N of Items 12
Factor Analysis Output
KMO and Bartlett's Test Kaiser-Meyer-Olkin Adequacy. Bartlett's Sphericity Test Measure of Sampling .699 73.684 66 .839
of Approx. Chi-Square df Sig.
Component Matrixa Component 1 2 Friendly & Courteous Manner Knowledge of bank's products & Services Willingness to listen and respond to your need Fast and efficient service Recognition of you as valued customer Professional and attractive appearance Clean & well cared facilities Efficient, no wait .652 service No long line ups at counter Availability of information brochures Pleasant & attractive decor Automatic bank machines in convenient locations .559 3 4 5
.580
.511
.595
-.569 .721
Extraction Method: Principal Component Analysis. a. 5 components extracted.
Rotated Component Matrixa Component 1 2 Friendly & Courteous Manner Knowledge of bank's products & Services Willingness to listen and .519 respond to your need Fast and efficient service Recognition of you as valued customer Professional and attractive appearance Clean & well cared facilities Efficient, no wait .721 service No long line ups at .727 counter Availability of information brochures Pleasant & attractive decor Automatic bank machines in convenient locations .591 3 4 5
-.651 .572 .645 .517
.630 -.579 .695
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 12 iterations.
6. FACTORS DERIVED OUT OF FACTOR ANALYSIS (SPSS)

Speedy response of customer service team (Willingness & ready to respond to your need + Efficient No wait Service + No Long line ups at counter)
Professionalism at work place (Friendly & Courteous manner + professional & attractive appearance)
Branch infrastructure & maintenance (Clean and well cared facilities + Pleasant & Attractive dcor + Automatic Bank machines at convenient locations)
Recognition as a valued customer
Resource Availability (Fast & Efficient service + Availability of information brochure)
7 LEAD GENERATION TECHNIQUES In order to generate sales leads, you need three things: A written profile of your target prospect, A list of suspects containing potential prospects, A method of reaching your sales prospects.
So how important is lead generation? For any business, products or services, selling is the only way of sustenance. It is one of the primary activities that marketers indulge in. If you are not doing good sales, probably you need to look back on your sales lead generation efforts. It is possible that you are not doing the right things required for generating leads in your industry. You need to spend more time on analyzing and creating a strategy that will effectively work for you. One should never rest on the laurels. Customers do switch, die, get choosy and these things lead to attrition. The result is you having very few or no prospects for your product or services. So it should be kept in mind that lead generation has to be continuous in nature. Businesses do flourish because of customer retention and customer acquisition. New customers are to be added in order to keep the sales revenue on the go. In this section, I am going to discuss eight methods of reaching sales prospects. 7.1 COMPLEMENTARY PARTNER REFERRALS I put this sales lead generation method first because this one generates the highest quality sales leads. How you do this depends on the market you are in.
If you are selling business to business, you want to strike up relationships with sales reps from companies who call on the same businesses as you do. An example is if you sell car insurance service, then partner with a few car dealers. These reps call on the same customers as you and you complement each other by sharing leads and information about customers and prospects(). Disadvantages: In this technique, it may so happen that the person who is giving a reference of another person may already have the product. Moreover, for complementary partner referrals to work, the company needs to keep a high degree of sales and services satisfaction. If the customers are not satisfied, they would refuse to give any reference. This is why the company should maintain a good name in the market in terms of their offerings and their utilities have to be better than the competition. 7.2 COLD CALLING As much as nearly everyone dislikes this one, it is very effective for sales lead generation when executed properly. If you consistently prospect for leads by phone, you will consistently generate sales leads. Disadvantages: Cold calling is quite a traditional way of lead generation and still preferred by the sales team. But there are a few disadvantages to be looked at. Government regulations state that no company can disturb people between 10PM & 10AM. Apart from that, people get annoyed and disturbed when they get a cold call when they are busy or even generally. This has resulted in DND (Do not Disturb) service by the telecom service providers. So, one cannot call anyone and everyone. Non-adherence to the rules and regulation or unscrupulously making cold calls may have legal implications and the company may find itself in soup.
7.3 LIVE SEMINARS Live seminars are a great sales lead generation technique because you are usually delivering youre a pitch to a prospect very early in their buying process. The key to a successful seminar is offering a solution to a problem that your target market really wants to solve. You can give the pitch yourself, or get one of your company executives to do it (sometimes business "celebrity" can help pull more sales prospects in). Live seminars can be done inexpensively. The costs for in-person seminars are comprised of room rental, refreshments, audio-visual equipment, and promotion. Teleseminars are the least expensive, with the only costs being conference phone line rental and promotion. Webinars are actually more expensive due to the hefty fees the online meeting services charge to use their services. Disadvantages: The flip side is you may not get a homogenous set of people. Consequently, there would be only few takers out of the crowd. This will lead to increased cost per head. 7.4 TRADE SHOWS Trade shows are a good way to generates sales leads if you can find events highly targeted to your prospect audience. Often such events yield low-quality sales leads because they are attended by the recommenders and influencers and rather than the true decision-makers. This method is lower on the list, yet it is a valuable one if your company has the budget and there are industry events well-targeted to your audience.
Disadvantages: As mentioned above, these shows are not generally attended by the decision-makers, the purpose is lost. The cost is also relatively higher than other lead generation techniques. 7.5 MASS MAILINGS Sales letters are one of the more underused sales lead generation methods. There is an entire industry of people dedicated to selling this way called direct marketing. But most field sales reps and business professionals don't know how to use this technique well. Success with this method comes as a result of mailing a well-written letter to a good quality list of names (quality = targeted at your audience). Disadvantages: Nowadays, people dont even care to read mails sent by companies and they go straight to Trash. Though mass mailing is inexpensive, it has some considerable cost implications. Due to negligible positive responses from the targeted audience, the efforts go in vain. People even mark such mails as Spam in order to do away with the annoyance it brings along according to some. 7.6 ADVERTISING This method can be highly effective when done right. You must find publications that are able to deliver your target audience. You must run ads that stimulate people to take action. To generate sales leads, you must avoid big-company style image ads(). I am no expert on advertising, but I do know that if you can't do this one right don't do it at all because you can blow through your marketing budget fast. Disadvantages: Utmost care has to be taken right from the initial phase. The content, idea, execution, media vehicles and many other factors need to be looked at carefully. Advertising generally increase the sales as per the advertising agencies. But one should
keep in mind that a bad advertisement may tarnish the brand image of your company. Consequently, you will end up losing ground and the sales generation might get affected. More than that, advertisements cost a fortune. 7.7 INTERNET ADVERTISING This one is very appropriate for small businesses and some independent professionals. With a well-designed website, you can generate sales leads through "ads" that the search engines create from your WebPages. If you know what keywords your prospects are likely to search for you with, then you can generate very targeted and qualified leads. Disadvantages: This method is not for everyone though, as your prospects must be searching for something related to your products, services or the problems that you solve. Apart from that, a very meager percentage of our population has access to internet. You need a lot of knowledge to actually make use of it. Over and above, too many scams happen over the internet and many people do want to play safe. 7.8 EMAIL PUBLICATIONS A sales rep or business owner could create an email newsletter and mail it to sign-ups from an offer presented at a seminar, at a trade show, in a mass mailing, in an advertisement, or on a cold call. If youre a sales rep, why not create your own email newsletter? You could send out industry news and tips to suspects in your market. Eventually a few of them will become customers because you are on their mind more often than your competition. Disadvantages: Though it is extremely affordable, companies have to shell out a good sum to get a writer and graphic designer to make a high quality of work. More than that,
the unsolicited mails go straight to the Spam. The target audience would not even open the mail. So it is time, efforts and money wasted at times.
8 SALES TECHNIQUES Undoubtedly, it is the main body of the sale which provides an opportunity to the salesman to present his product physically before the potential buyers. 8.1 PRESENTATION In salesmanship, presentation means proper arrangement and decoration of the products so as to increase the outward decorum. Presentation also includes the interior decoration of your place. Effective presentation is highly essential in selling goods as well as services because generally customers come to a place attracted by the appearance of the salesman, counter, displays etc(). 8.2 DEMONSTRATION Demonstration means pointing out clearly the quality and features of the product and proving them with certainty. In salesmanship, demonstration is nothing but providing the statement about the quality, utility, performance and service of a product put up for sale by means of evidences, experiments etc.
8.2.1 Significance of Demonstration A good demonstration provides a number of advantages. Some of the important aspects of demonstrations are as follows: Demonstration enables the salesman to show specific features of the product or service more clearly which may not be presented orally. It creates a lasting impression in the minds of the prospective buyers because they see the live demonstration of the product or handle them personally It gives the prospects an opportunity to experience the benefits and utilities to be derived from the owning of the demonstrated product().
9 THE CLOSE
The final stage of the selling process is closing the sale. This is the climax of the various efforts made during the earlier stages of selling process which includes prospecting, presentation, demonstration and overcoming objections. The ultimate objective of the selling plan is to sell products and services to the consumers. If the salesman is not able to close the sale successfully, all the earlier efforts simply go waste. So it becomes the most important and crucial stage from the point of business 9.1 WHAT IS CLOSE Closing is the action on the part of the salesman to close the sales transaction. Closing the sale is nothing but making the prospect say YES to the salesmans proposition. It is the simple and logical conclusion to a satisfactory and successful completion of the various steps of the selling plan. 9.2 FEATURES OF SUCCESSFUL CLOSING As pointed out earlier, closing a sale is of the most crucial test for the salesman. At this stage of the selling process, the prospect is converted into a customer, the desire of the prospect is converted into an expressed demand and the indecision is converted into a specific decision. There are certain important requisites which help the salesman in making a successful close. They are as follows: Positive Attitude: As the salesman and the prospect move along the various stages of the selling process, automatically they become tense. However, it is better on the part of the salesman to remain calm and handle the situation with enough confidence. He should always remain alert and wait for the appropriate moment to close a sale.
Effective Presentation and Demonstration: The salesman should always try to convince the prospect through an effective presentation and demonstration. This is important because through effective demonstration and presentation only the prospect is able to know the benefits and utilities of the product. This makes the prospect think that he will get his moneys worth by buying the product offered for sale. Hold the Attention: The salesman, in order to be successful, should always try to hold and capture attention of the prospect towards the project. He should always avoid diverting the prospects attention to other things. It may also happen that the prospect may be mentally absent at the time of the sales talk. Therefore, before starting the sales talk, the salesman should put his initial efforts to ensure the concentration of the prospect of his sales talk. So, the salesman has to make all efforts to keep the prospect hooked. Allow questions: A wise salesman always encourages the prospects to ask questions about the producer and tries to remove the doubts from their minds. At no point of the selling process, the prospect should think that the sale is being forced upon him. Rather, the prospect should accept the sales proposition willingly. All possible queries and doubts must be removed so that the prospect accepts the product gladly and without any hesitation. Let the Prospect Decide: The salesmans duty is to assist the prospect in taking a wise decision to ultimately buy a product by which not only the salesman but also the prospect will be benefitted. But the final decision to purchase the product is to be left entirely on the prospect and he should be given complete freedom to make
the buying decision himself. At no point of time, the prospect should feel that the sale is being forced on him by the salesman. Reserve Selling Points: An intelligent salesman never discloses all the selling points during the course of the sales talk itself. Rather, he should reserve some selling points often referred as unique selling propositions to be applied at appropriate moments. Such reserved selling points are also known as surprise or premium points. These points are used at crucial junctures when the prospect remains undecided about the purchase. Use of these reserved selling points at the right moment can be used to convert the prospects no into yes().
10 RECOMMENDATIONS
The demand for insurance products is increasing as people are more aware
nowadays and they understand the importance of being insured. So the bank should reap the benefits of the changing trend. Products of private players can be sold because of the targeted customers being choosy and looking for better services and innovative product offerings. A better
and thorough marketing research on consumer behavior and latest economic trends can give a profound understanding to do business more profitably. It is observed that most of the issues are related to the human capital. To keep the satisfaction levels of Standard Chartered Patna customers, a robust CRM System has to be in place. The Customer Relationship Management or CRM system refers to the computer software designed to help companies keep track of and easily access information about the customers or clients the business is dealing with. It has become widely used in recent years. A CRM system may also refer to the Sales Automation Force (SFA) software and contact management software. These are usually part of a good CRM system. A good software package will generally be in a range of 1.52.5 crores. E.g. Avidian CRM software.
The role of employee training and development is becoming more important as
companies are increasingly relying on the knowledge, skills and abilities of their human capital to drive firm performance. So an exhaustive training program can definitely help in keeping the banks performance healthy.
Training employee
cost
per =
Total training costs Headcount
In 2010, the average annual expenditure per employee increased to $955 after remaining steady at $820 over the previous two years. Standard Chartered Patna has 29 employees so the total expenditure will probably stand at $ 27695 or INR 1384750.
The cost involved is reasonable for a big foreign bank operating in India with revenue of $2,028 million in FY2011 Training Costs Development costs (e.g., salaries and benefits of personnel, equipment). Direct implementation costs (e.g., training materials, technology costs, facilities, travel, equipment, instructors salary and benefits). Indirect implementation costs (e.g., overhead, general and administrative). Compensation for participants. Lost productivity or costs of backfilling positions during training. Source: U.S. Office of Personnel Management. (2000). A guide to strategically planning training and measuring results. Washington, DC: Author.
It is observed that in Patna, the number of Standard Chartered ATMs is very few.
To be precise, there are only 2 ATMs available in the whole of Patna. One is located at East Boring Canal Road and the other one at Exhibition Road. One of the major factors derived out of factor analysis shows that availability of Automated Teller Machines at convenient locations is an important factor affecting satisfaction levels of the banks customers(). Setting up a few ATMs at some of the busiest and dense locations like Kankarbagh Colony, Patna City, Station Road etc. Generally one NCR ATM machine, which is one of the largest selling machines, will cost 8-10 lakhs. Over a period of 2 years at least, 4 ATMs can easily be set up to ensure convenience for the bank customers. The cost will spread over a period of 2 years and the budget will not be distorted in this way. More convenience means more customers for Standard Chartered Patna.
1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11 As of now Standard Chartered bank is into bancassurance but being a big player,
it should consider starting its own insurance products. The bank channels are robust enough to support this new business. However, proper industry analysis, market, consumer preferences etc are to be considered before taking any step further. .
11 CONCLUSIONS The success of bancassurance greatly depends on banks ensuring excellent customers relationship; therefore banks need to strive towards that direction. Bancassurance is going to be a norm in the Indian markets. The banks want to give customers the comfort by providing everything under one roof. This trend is likely to increase competition in the insurance market as todays distributors would probably become wholly owned insurance subsidiaries of these banks. The environment is also quite conducive as the use of ATMs and internet banking is increasing tremendously. It can be inferred from the results how important the infrastructure and human capital matter to become a successful banker in this competitive sector. If the factors are taken care of, the satisfaction levels of customers are most likely to be on the better side.
Though these factors and their importance are known to everyone, proper execution of the same is not done by many. Consequently, the impacts can be seen in their financials. Many banks have done wonders within a short span of time by looking at the factors minutely and worked tirelessly to generate better results. One of the best fitting examples is Axis Bank, which was formerly known as UTI bank. To reduce defection and remain competitive in this sector, high levels of customer satisfaction must be one of the top priorities. Thoughtful planning and budgeting is needed. Robust CRM system, advanced training for the employees and infrastructure development will lead the bank to success. India is one of the hottest markets with over 18% CAGR for the banking sector. Standard Chartered PLC can leverage this trend to add a few more billions to its revenue through its Indian subsidiary.
Innovative lead generation techniques will result in a win-win situation for all the parties involved- the customer, the insurance companies and the banks. Tie-up arrangements with more than one insurance company will also lead to better customer satisfaction due to the variety they will bring. Better leaders and dedicated sales team will definitely bring in better revenues in days to come. Some strategic thinking, thoughtful planning and execution will do wonders. The possibilities are there to sell more through innovative lead generation tools and techniques. The information era is going to assist the company in a bigger way. Private players will gain ground provided they come up with better services and products range. The customers are ready to do some experiments and try out new products from new insurers.
12 BIBLIOGRAPHY
Anderson, J. F., & Brown, R. L. (2005, January 5). Soa. Onttrek May 5, 23 uit Soa Website: http://www.soa.org/files/pdf/P-21-05.pdf Brown, S. (2010, October 10). Professional Sales Tips. Onttrek May 25, 2011 uit Professional Sales Tips Website: http://sales-tips.industrialego.com/salesarticles/043003.htm Checketts, D. (2006). Leverage: How to Create Your Own "Tipping Points" in Business and in Life. New Jersey: The Career Press, Inc. Datamonitor. (2011, April 25). Datamonitor. Onttrek May 20, 2011 uit Datamonitor Website: http://web.ebscohost.com/ehost/pdfviewer/pdfviewer? sid=cce44033-ce68-408f-b308-31c4360f434b %40sessionmgr112&vid=8&hid=105 FICCI. (s.j.). FICCI. Onttrek 05 21, 2011 uit FICCI Website: http://www.ficcib2b.com/site/FINANCE.pdf IRDA. (2007, 07 12). IRDA. Onttrek 5 15, 2011 uit IRDA Official Website: http://irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx? page=PageNo4&mid=2 Karunagaran, A. (2006, November 1). Reserve Bank of India. Onttrek May 27, 2011 uit RBI Website: http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/80595.pdf Kotler, P., Keller, K. L., Koshy, A., & Jha, M. (2009). Marketing Management A South Asian Perspective 13th Edition. New Delhi: Dorling Kindersley (India) Pvt. Ltd. LIC. (2007, June 25). Life Insurance Corporation. Onttrek May 20, 2011 uit LIC Website: http://www.licindia.in/history.htm Malhotra, N. K., & Dash, S. (2011). Marketing Research An Applied Orientation Sixth Edition. New Delhi: Dorling Kindersley (India) Pvt. Ltd. Narayan, J. H. (2010). IRDA Annual Report 2010. IRDA, Insurance Regulatory Body (India). Hyderabad: IRDA. Sadhak, H. (2009). Life Insurance In India. New Delhi: Sage Publications.
3 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11 Sahu, P. K., & Raut, K. C. (2006). Salesmanship and Sales Management. New Delhi: Vikas Publishing House Pvt. Ltd. STANCHART. (2008, April 5). Standard Chartered India. Onttrek May 20, 2011 uit Standard Chartered India Website: http://www.standardchartered.co.in/financialconsulting/insurance/insurancepolicies.html Wikipedia. (2011, February 14). Wikipedia. Onttrek May 20, 2011 uit Wikipedia Website: http://en.wikipedia.org/wiki/Insurance_in_India
APPENDICES
Survey Questionnaire- 1
Insurance Industry- A Survey

Introduction: Thank you for taking some time out to complete this survey about the Insurance Industry in Patna. This survey should not take more than 5 minutes to complete. The survey is anonymous and any information gathered through this will be treated as confidential. Furthermore, the results will be used solely for academic purposes. Required Top of Form Your Name * Your Email ID
1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11 1. Please select your gender Male Female Other: 2. Please select your age range (in years) 20-25 26-30 31-35 36-40 41-45 46-50 50 and above 3. What is your marital status? Single Married Other:
4. What is your annual income? (PLEASE SELECT YOUR RANGE IN INR) Upto 1 lakh 1-2 2-3 3-4 4-5 5 and above 5. What is your occupation? Govt. servant Private employee
3 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11 Self-employed Businessman/Woman Farmer Other: 6. What is the main purpose of buying an insurance policy according to you? Income tax rebate Protection Return Saving Other: 7. Do you have a life insurance policy? (IF NO, YOU HAVE COMPLETED THE SURVEY) Yes No
8. What is the type of your plan? (CHECK THE BOXES AS APPLICABLE TO YOU) Simple Term Plan Money Back Policy ULIP Pension Plan Child benefit plan Other:
3 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11 9. Please let us know the name of your insurance company.
10. Have you faced any problem with your insurer? (IF NO, PLEASE JUMP TO QUESTION 14) Yes No 11. What was the problem type? (YOU CAN SELECT BOTH, IF APPLICABLE) Claim settlement Information 12. Did the company solve your problem regarding claim settlement or information, if any? Yes No 13. Were you satisfied with the solution? Yes No 14. If you take a new policy, would you go to the same insurance company? Yes No 15. Will you suggest someone to get insured from your insurer? Yes No Survey Questionnaire 2
Bank Customer Survey Please help us give you better services. Thank you for finding some time out for the survey.
* Required
Top of Form
Name * Please assess the Following at Our Branch

CUSTOMER SERVICE RELATED 1- Strongly Disagree, 2- Disagree, 3- Neutral, 4- Agree, 5- Strongly Agree Our employees have friendly & courteous Manner
1 Strongly Disagree
5 Strongly Agree
Tellers have the knowledge of bank's products & Services
1 Strongly Disagree
5 Strongly Agree
We are willing to listen and respond to your need
1 Strongly Disagree
5 Strongly Agree
We give fast and efficient service
1 Strongly Disagree
5 Strongly Agree
We recognize you as a valued customer
1 Strongly Disagree
5 Strongly Agree
Our people have professional and attractive appearance
1 Strongly Disagree
Bottom of Form Top of Form
5 Strongly Agree
BRANCH FACILITIES
How do you assess the following aspects of the branch facility?

Our branch is Clean & has well cared facilities
1 Strongly Disagree
5 Strongly Agree
We provide efficient, no wait service
1 Strongly Disagree
5 Strongly Agree
We dont have long line ups at counters
1 Strongly Disagree
5 Strongly Agree
Our branch ensures availability of information brochures
1 Strongly Disagree
5 Strongly Agree
The premise is Pleasant & has an attractive decor
1 Strongly Disagree
5 Strongly Agree
The bank has Automatic bank machines are located in convenient locations
1 Strongly Disagree
Bottom of Form
5 Strongly Agree
List of Life Insurers (Updated)
1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11 S.No NAME OF THE COMPANY NAME OF PRINCI PAL OFFICE R NAM E OF APPO INTE D ACTU ARY TELEPHONE NO./FAX No./EMAIL & WEB ADDRESS
1. Bajaj Allianz Life Insurance CompanyLimited . GE Plaza, Airport Road , YerawadaPune411 006
Mr.Kame Mr. Tel : 020 - 66026777 sh Goyal Anil Fax : 020 -66026789 Kumar . Singh Mr. Fa Tel : 020 - 66026777 bien Je Fax: 020 - 66026789 udy Email :customerservice@birlasunlife.com
2. Birla Sun Life Insurance Co. Ltd Mr. Jaya Reg. Office: One India Bulls nt Dua Centre, Tower 1, 16th Floor, Jupiter Mill Compound, 841 , Senapati Bapat Marg,Elphi nstone Road, Mumbai-400013. 3. HDFC Standard Life Insurance Mr. Amit Co. Ltd abh Chau 2nd Floor, Trade Star dhry Kondivita Junction Andheri Kurla Road Andheri East Mumbai 400059 . 4. ICICI Prudential Life Insurance Sri Co. Ltd V. Vaidy ICICI Prulife Towers , 1089, Ap anathan pasahebMarathe Marg, Prabhade vi, Mumbai 400 025. 5. ING Vysya Life Insurance Mr.Kshit Company Ltd. ij Jain ING Vysya Home, 5th Floor, #22 Mahatmagandhi Road Bangalore -560 001. 6. Life Insurance Corporation of Shri T IndiaYogakshema, Jeeva Bima S. Vijaya Marg, Post Box No. 19953 n MUMBAI 400 021
Mr. Tel : 022-67516666 Ashley Fax: 022-2822 8844 Edwar d Rebell o Mr. A Tel :022-56621996 vijit C Fax: 022-56622031 hatterj ee
Ms. H Tel : 080-25328000 emam Fax: 080-25559764 aliniR amakri shnan Mr. Tel 56598701;56598702 T Bhar Fax: 22824386 gava E-Mail ; chairman@licindia.com
1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11 7. Max New York Life Insurance Co. Ltd 11th Floor, DLF Square , Jacaran da Marg,DLF City , Phase-II, GURGAON 122 002. 8. Met Life India Insurance Company Ltd. Brigade Seshamahal, No. 5, Vani VilasRoad , Basavanagu di, BANGALORE-560 004. Shri Raje Mr.Joh Tel : 0124-2561717 sh Sud n Char Fax: 0124-2561764 lesPoo le Mr. Mr. M Tel : 080-26438638 Rajesh R S V Fax: 080-26521970 elan SPhan Toll Free No. 1-600-44-6969 esh
9. Kotak Mahindra Old Mutual Life Mr. Insurance Limited Pankaj 9th Floor, Godrej Coliseum, Desai Behind Everard Nagar, Sion (East), MUMBAI-400 022.. 10. SBI Life Insurance Co. Ltd Turner Morrison Building, 2nd Floor, 16,Bank Street, Fort Mumbai-400 023. 11. Tata AIG Life Insurance Company Limited 5th 7 6th Floor, Peninsula Tower, Peninsula Corporate Park Ganpatrao Kadam Marg, Lower Parel, MUMBAI 400 013. 12 Reliance Life Insurance Company Limited. 1st Floor, Midas, Sahar Plaza,AndheriKurl a Road, Andheri East, Mumbai 400059. 13 Aviva Life Insurance Company India Limited Aviva Tower, Sector Road, Opposit Golf Course, DLF-Phase V, Sector-43, Gurgaon - 122 003
Mr. Tel : 022-6621 5999 Andre Fax:022-6621 5757, 6621 5858 w Willis Cartwr ight
Mr. Mah Mr. Sa Tel : 022-56392000 adev Nag njeev Fax: 022-56621471 endraRao Kumar Pujari Mr. M. Suresh Mr. H Tel : 022-66516000 eerak Fax : 022-66550711 Basu
Mr. Ms. Po Tel : 022-30883434/ 30887261 Malay G urnima Fax: 022-30886587 hosh Gupte
Mr. T. R.Ram achand ran
Mr. K. K. Dharni
Tel: 0124-270 9000/01, Fax: 0124-270 9007.
1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11 14 Sahara India Life Insurance Co, Ltd. Sahara India Bhawan, Kopoorthala Complex, Lucknow 226024 Mr. N. P. Bali, CEO ( Offic iating) Mr. Pr avir C handra Tel: 0522-2337777 Fax: 0522-2378200
15
Shriram Life Insurance Co, Mr R Ltd. Duruv Regd. Office : 3-6-478, 3rd asan Floor, AnandEstate, Liberty Road, Himayat Nagar,Hyderab ad - 500029 Bharti AXA Life Insurance Company Ltd. 601-602 6th Floor, Raheja Titanium Off Western Express Highway Goregaon (E) Mumbai 400 063 Future Generali India Life Insurance Company Limited 001, Delta Plaza, Ground Floor, 414, Veer Sarvarkar Marg, Prabhad evi, Mumbai 400 025. IDBI Federal Life Insurance Company Ltd., Tradeview, Oasis Complex, Kamala City, P.B. Marg, Lower Panel (W), Mumbai-400 013 Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. 1st Floor, B Block, First India Place, Vatika Tower, MG Road, Sushant Lok, Phase I Gurgaon 122002 Mr. Glenn Willia ms
Mr. Theo Bernh ardSch effler
Tel: 040-23434466-72 Fax: 040-23434488
16
Mr. G L N Sar ma
Tel: 022 40306300/6301 Fax: 022 - 40306347
17
Mr. Deepa k Sood
Mr. D Sai Sriniv as
Tel No.: 022-40976666 Fax No.: 022-40976600
18
Mr. G.V. N agesw araRao
Mr. Micha el J Wood
Tel No.: 022-24908109/10 Fax No.: 022-24941016
19
Mr. Ha rpal S. Karlcu t
Mr. C hirag S hamji Ratho d
Tel: 0124 44535506 Fax: 0124-44535999
1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11 20 AEGON Religare Life Insurance Company Limited. GYS Heights, 2nd Floor, Paranjpe B Scheme, Subhash Road, NearGarware House, Vile Parle (E), Mumbai 400 057 DLF Pramerica Life Insurance Co. Ltd. 4th Floor Tower B, Building No.-9, DLF Cyber City, Phase-III, Gurgaon-122002. Star Union Daiichi Life Insurance Co. Ltd., Star House, 3rd Floor, (West Wing), C-5,Bandra-Kurla Complex,Bandra (East), Mumbai 400 051 IndiaFirst Life Insurance Company Limited 301, 'B' Wing, The Qube, Infinity Park, Dindoshi - Film City Road, Malad (East), Mumbai - 400 097. MR. R ajivJa mkhed kar Mr. K.S.G opalak rishna n Tele No.022-67292929 Fax No.022 67293333
21
Mr. Ka pil Me hta (MD & CEO) Mr. K amalji Sahay( MD & CEO) Dr. P. Nan dagopa l
Mr. Pr adeep Kumar Thapli yal Mr. I SAMB ASIV A RAO Mr. C handa nKum ar Kha snobis
Ph. No.0124-4697000 Fax No.0124-4697100 / 200 Phone: 022-39546211 email:ceo@sudlife.in
22
23
Phone: 022 39418700 Fax: 022 33259500
Source: IRDA END OF THE DOCUMENT

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Lead Generation, Sales Techniques & Closure

CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA

1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

(Mr. Srinivas Ramamurthy) __________________________________ (Sign)

(Prof. Shireesh Thakur)

1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

3.1 The History Of Indian Insurance Industry

3.4 Major Policy Changes 3.6 Analyst Insight 19

3.8.1 Threat of New Entrants

Lead Generation, Sales Techniques & Closure

2 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

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1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

3.1 THE HISTORY OF INDIAN INSURANCE INDUSTRY

3.2 LIFE INSURANCE

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2 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

3.4 MAJOR POLICY CHANGES

2 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

3.5 CHANGING FACE OF INDIAN INSURANCE INDUSTRY

1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

Whole life insurance policies:

This type of policy runs as long as the

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3.7 OTHER FACTORS

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3.8 PORTER'S 5 FORCES ANALYSIS

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3.9 KEY RATIOS/TERMS

3.9.1 Return on Equity (ROE): Net Income/ Shareholder's Equity

1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

3.9.3 Return on Total Revenue: Net Income/Total Revenue

2 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

3.10 INSURANCE PENETRATION (SELECT COUNTRIES)*

2 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

3.11 INSURANCE DENSITY IN INDIA

Insurance density is measured as ratio of premium (in US Dollar) to total population

1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

4.1 KEY FACTS

2 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

4.2 BUSINESS DESCRIPTION

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1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

4.4 KEY EMPLOYEES

Name Peter Sands Steve Bertamini

Job Title Group Executive Group

Board Chief Executive Board Chief Executive Board

Compensation 7780000 USD 50320000 USD

Wholesale Banking Chairman Director Director Director Director

2 Lead Generation, Sales Techniques & Closure, Manish Verma, 13Jun-11

4.5 MAJOR PRODUCTS AND SERVICES