CHAPTER 5 Training & Development Practice in different Life Insurance Companies

Transcription

1 CHAPTER 5 Training & Development Practice in different Life Insurance Companies 5.1 Training at LIC. Training Objective. To conduct the agents training as per the regulatory norm. To monitor the development of agents who shall consistently deliver customised solutions to the clients. Constant up gradation of the agents must be the focus and training should be an ongoing activity with the organisation. Training at LIC. LIC has recently launched a training programme called PROT (Post Recruitment Orientation Training). This is advanced level training for new agents and the agents are learning a lot of practical things here. Such type of quality training is required for new agents. Even during the period of its monopoly in the industry LICI did have a good training set up for all categories of employees and agents. However, due to its monopoly status, the training facilities were not put to optimum use. When the opening up of the insurance industry happened there was a dramatic change. Existing facilities were enlarged and revamped. Training and technology up gradation became a top priority; initially for survival in the face of competition, and later for retaining and improving market share. L.I.C even involved ISB and other top IIMs to train senior management. The results achieved speak for themselves. Apparently the competition has helped to bring out the best from LIC. The need for training. In the present scenario of globalization and liberalization, the intensity of competition is increasing day by day in all spheres of business and the life insurance sector is no exception. One of the most critical elements in the organization is the agents. They are responsible not only for driving sales but spreading the awareness and need of life insurance among the masses. The following is the need for training that has been identified. 89

2 1. To increase productivity. 2. To improve quality. 3. To help a company fulfill its future personnel need. 4. To improve organizational climate. The Training Schedule. The insurance industry regulator, IRDA prescribed 50 hours of theoretical and practical training for people to be licensed as agents for an insurance company. The training equips agents with basic knowledge on insurance like the technical terms used, the types of policies available, ethics, code of conduct and so on. The Sales Training Programme. In LIC agents go through both generic and specific, professional programs that help them remain well-informed and knowledgeable about the company s products in the market. There is a further focus on soft skills such as communication, managing longterm relationships and selling skills, which are very relevant in a service-driven industry like life insurance. State of the art infrastructure training facilities coupled with an excellent faculty, guarantee an exceptional learning environment. The 7 days training schedule covers the mandatory IRDA training requirements and LIC product-training module. Revision session ensure that the candidates thoroughly understand the course contents and are well prepared for the licensing examination. The benefits of undergoing sales training at LIC. 1. To understand attitude of agents towards training programmes. 2. To know the effect of training on the agents/employees performance 3. To understand the attitude of top level management towards implementation of training programme. 4. To know about the effectiveness of training policy towards the achievement of organization s objectives and vision. What does this mean for the agents? Training and development programmes help to develop skills in agents which help them to work in the changing scenario. Its task is to attain objective in relation to employees and organization and society with the resources available within the organization. Competitiveness demands diverse workforce and up-to-date skills. 90

3 Absorption into the management is another career enhancement option provided at LIC. This program helps agents build a full time career as a Development Officer in the organization, offering great potential for managing a team of agents and personal development. What does this mean for the customer? The customers are immensely benefitted as the agents are well equipped to give them a need based solution. This will ensure that the policies will remain in force and there will be no cancellations of policies. This will benefit the organisation in achieving a higher persistency. The Role of an agent at LIC. The agent must have the required qualification and they agent must attend the IRDA 50 hours training and pass the online exam. Thereafter they will be eligible to attend the in house training on products and selling skills. They provide need based financial solutions to customers through: 1. Prospecting the right customer. 2. Financial review and need analysis. 3. Recommending appropriate solutions. 4. Closing a sale. 5. Getting further referrals. The benefits to the agents: There are various earning opportunities for agents who are sincere, dedicated and willing to meet prospective customers regularly. The agents can earn through commissions, bonus, renewal commissions, awards which are monetary and nonmonetary and travelling opportunities to national and international destinations. Also the agents who are successful have recognition and prestige in the society. The renewal commissions keep coming even after the agents have stopped working. Rewards & Recognition to the agents. LIC agents are constantly recognized and rewarded for their performance. Numerous competitions all year round promote healthy competition amongst agents and recognition for their efforts. Depending on the level of business the agent achieves in a year, he or she can become a member of various clubs such as the Corporate Club, the Chairman s club, etc. Each of these clubs have specific performance criteria for 91

4 qualification and members of these clubs are entitled to attend seminars held at exotic international and domestic locations each year. Advisors can also qualify for the renowned MDRT (Million Dollar Round Table), exclusive international insurance agents club. There are various opportunities for the agents to perform and earn various rewards and incentives by qualifying for different clubs. They are 1. Chairman s Club. 2. Zonal Club. 3. BM Club. The benefits of training at LIC. 1). Training must contribute in keeping people abreast of latest information, technical knowledge in specialized areas and develop their personality to suit their requirements. 2). Training must also prepare the agents to understand and assesses the job content so that the agents can perform with confidence and suggest improvements in processes involved. 3). Training must help to acquire required skills to facilitate decision making and problem solving skills. Better engagement and productivity must be quantified from time to time. 4). Training must focus on assisting an individual in managing change. Types of training. It is of following types: 1) On the job training (OJT): Training agents to learn the selling skills while working on the field. 2) Off the job training: It is of following types: a). Lectures: It has several advantages. It is quick and simple way to provide knowledge to large group of trainees. b). Case study: It is a development method in which the manager is presented with a written description of an organizational problem to diagnose and solve. c). Role playing: It is a development technique in which teams of agents compete by taking decisions regarding realistic but stimulated situation. 92

5 5.2 Training at Bajaj Allianz Life Insurance. Training Objective. The training programmes ensure to maintain the cutting edge above competition. The training schedules are such that it will helps to grasp the relevant areas faster and easier. Training at Bajaj Allianz Life Insurance. The agents training programme in Bajaj Allianz Life Insurance is known as Certified Insurance Consultant Programme (CICP). The agents have a unique opportunity, to posses the certification at different branches. The curriculum would not only provide the agents with in-depth knowledge into insurance but would equip them with the sales edge that is required in ever demanding, dynamic market today. Something goes without saying that the agents would be the only consultant in the industry to have such a certification, a league, which would be differentiated from others. The need for training. The agents are recognized as a professional financial planner who are able to help the clients to achieve their financial objectives through the products of Bajaj Allianz Life. Training will develop the agents to become knowledgeable and which will help them to handle competition effectively. The training schedule. The Certified Insurance Consultant Programme (CICP) for the agents is for 5 days covering various topics from company orientation, features and benefits of products, need based selling skills, appointment and sales presentation skills, prospecting techniques and proposal form fill up. Broadly the modules may be summarized as product training, financial basics and selling skills. The Sales Training Programme. Bajaj Allianz Life emphasises on product knowledge and selling skills that the agents must be trained on. Need Based Selling approach is also focussed to develop the agents to provide customised solution to the customers. Refresher training is held regularly to make the agents upgrade their knowledge and make the agents implement the skills that they have learned in the marketplace. 93

6 The Benefits of undergoing Bajaj Allianz Life Sales Training. 1. Differentiates Bajaj Allianz Life from the competition. 2. Focuses on customer needs and provides customised solutions. 3. Builds customer loyalty thus ensuring more referrals. What does this mean for the agents? For the agents the advantages of undergoing Bajaj Allianz Life sales training gives the agents an opportunity to be knowledgeable and skilled which will help them to communicate effectively and convince the prospective clients. The chances of misselling shall be minimised and the agents will be able to build a good rapport with the customers. What Does This Mean for the Customer? The customers are immensely benefitted as the agents are well equipped to give them a need based solution. This will ensure that the policies will remain in force and there will be no cancellations of policies. This will benefit the organisation in achieving a higher persistency. The role of an agent at Bajaj Allianz Life. The agent must have the required qualification and they agent must attend the IRDA 50 hours training and pass the online exam. Thereafter they will be eligible to attend the in house training on products and selling skills. They provide need based financial solutions to customers through: 1. Prospecting the right customer. 2. Financial review and need analysis. 3. Recommending appropriate solutions. 4. Closing a sale. 5. Getting further referrals. The Benefits to the agents: There are various earning opportunities for agents who are sincere, dedicated and willing to meet prospective customers regularly. The agents can earn through commissions, bonus, renewal commissions, awards which are monetary and nonmonetary and travelling opportunities to national and international destinations. Also the agents who are successful have recognition and prestige in the society. The renewal commissions keep coming even after the agents have stopped working. 94

7 Rewards and recognition to the agents. There are various opportunities for the agents to perform and earn various rewards and incentives by qualifying for different clubs. They are 1. Club Membership. 2. Early Bird. 3. Star on Debut. 4. Super Star on Debut. 5. Mega Star on Debut. 6. Early Bird. The benefits of training at Bajaj Allianz Life. Training ensures that the agents become knowledgeable, professional, experienced, customer centric, persistent, dedicated and hardworking. The agents increase their job specific skills, become job centered. The role of a trainer is very important. It shapes attitude and overall growth on a long term perspective and makes the agents career centered. The agents become internally motivated for self development. Types of Training. The different types of off the job training are: Vestibule training, role playing, lecture, case discussion and programmed instruction. The different types of on the job training are: Apprentice training, observation and demonstration calls with the trainers. The basic qualities an agent must possess at Bajaj Allianz Life: 1. Teachable (Open / willing to learn) 2. Disciplined (Self-monitoring) 3. Positive attitude / fearless 4. Hardworking/diligent 5. Sociable 95

8 5.3 Training at HDFC Life. Training Objective. Training program has been designed in consultation with HDFC Life, to improve the quality of sales by enabling all the customer touch points with adequate and enough knowledge / understanding of the financial and specifically insurance environment, with emphasis on HDFC SL plans. Training at HDFC Life. A learning experience in that it seeks a relatively permanent change in an individual that will improve the ability of the agents to perform on the job. It involves changing of skills, attitude and knowledge. The need for training. No one is a perfect fit at the time of hiring and some training and development must take place. Planned development programmes for the agents will return values to the organization in terms of: Moulding the attitude of the agents, helping them achieve better co-operation, creating greater loyalty to the organization, reduces constant supervision, improves the quality of agents which increases the productivity, improves the morale of agents and helps them to become flexible to adapt to changing requirements. The Training Schedule. The product training is conducted for 5 days covering various topics from company orientation, features and benefits of products, need based selling skills DISHA, presentation skills, prospecting and proposal form fill up. Broadly the modules may be summarized as Product training, Financial basics and Disha selling skills. The Professional Need Based Sales Skills Programme: Disha Need Based Selling is a mandatory requirement. This module is unique to HDFC Life and makes HDFC Life different. It has numerous benefits like it is professional, gives the customer a positive service, builds customer loyalty, is productive and effective, creates a customer focussed culture, takes commitment at all levels in the business. Disha ensures that the agents have to continually develop their skills and techniques. It is a long term strategy for success and puts the agents in control of their business. The benefits of undergoing training on the Disha module. 1. Differentiates HDFC Life from the competition. 96

9 2. Appeals more to the customer. 3. Builds customer loyalty thus ensuring repeat business. What does this mean for the agents? For the agents the advantages of undergoing training on the Disha module gives a win: win situation, opportunities for multiple sales to one customer, higher persistency, fewer objections in the sale, it helps to create future business opportunities and ensures that the customers are more willing to give references. Thus, the whole approach of the agents becomes professional. What does this mean for the customer? The customers are immensely benefitted in the following ways. The agents are focussed on their needs and wants, looks at their whole financial picture, provides a blueprint for their current and future financial planning making the agents fully involved in the process, they are well informed to make choices and enjoys the experience. The role of an agent at HDFC Life. 1. They are required to meet more and more people regularly. 2. They should understand their customers needs and dreams. 3. Do financial planning on a regular basis. 4. Give customized solutions as per the requirements of the customers. The organisation supports the agents in their endeavour to succeed. The benefits to the agents: The agents have a good earning opportunity through commissions, rewards, and thereby make a progress in career. Successful agents achieve personal growth and satisfaction and make an impact on the society around them. Rewards and recognition to the agents. There are various opportunities for the agents to perform and earn various rewards and recognition by qualifying for different 1. Rising Star 2. Bronze Club Member 3. Silver Club Member 4. Gold Club Member 5. MDRT 6. A Dream Profession on your own. 97

10 The benefits of training at HDFC Life: Training ensures that the agents become knowledgeable, professional, experienced, customer centric, persistent, dedicated and hardworking. The agents increases their job specific skills, become job centered. The role of a trainer is very important. It shapes attitude and overall growth on a long term perspective and makes the agents career centered. The agents become internally motivated for self development. Types of Training. The different types of off the job training are: Vestibule training, role playing, lecture, case discussion and programmed instruction. The different types of on the job training are: Apprentice training, observation and demonstration calls with the trainers. 98

11 5.4 Training at Bharti-AXA Life Insurance Company Ltd. Training Objective. It is mandatory for the agents to attend all training programs which will enable them to understand the products and sales process. The focus of training is to help the agents to provide customised solutions to the prospective clients. Training at Bharti AXA Life. The focus of the organisation is to have a trained sales force which will be productive and motivated. Bharti AXA Learning University is a unique initiative in this area. Here the department works for continuous up gradation of the modules to ensure that the agents are well informed about the sales process and implement the same in the marketplace. The need for training. There is a need for specialised training to the agents for skill building which will equip them to face the challenges of the dynamic marketplace. Agents who are knowledgeable are confident. They will be communicating effectively with the clients. The trainers provide mentoring and coaching to the agents which help them to remain focussed. The training schedule. The product training is for 5 days covering various topics from company orientation, features and benefits of products, need based selling skills, appointment and sales presentation skills, prospecting techniques and proposal form fill up. Broadly the modules may be summarized as Product training, Financial basics and selling skills. The professional need based selling skills workshop. Bharti AXA Learning Academy initiates the Need Based Selling which is mandatory for the agents to undergo this training. This module is unique to Bharti AXA Life. It has numerous benefits and helps the agents to develop their knowledge and skills. Refresher training is held regularly to make the agents understand and implement the skills that they have learned in the marketplace. The benefits of undergoing The Bharti AXA Life sales training. 1. Differentiates Bharti AXA Life from the competition. 2. Focuses on customer needs. 3. Builds customer loyalty thus ensuring more referrals. 99

12 What does this mean for the agents? For the agents the advantages of undergoing Bharti AXA Life sales training gives the agents an opportunity to be knowledgeable and skilled which will help them to communicate effectively and convince the prospective clients. The chances of misselling shall be minimised and the agents will be able to build a good rapport with the customers. What does this mean for the customer? The customers are immensely benefitted as the agents are well equipped to give them a need based solution. This will ensure that the policies will remain in force and there will be no cancellations of policies. This will benefit the organisation in achieving a higher persistency. The role of an agent at Bharti AXA Life. The agents provide ongoing service to customers and follow company guidelines & processes. They provide need based financial solutions to customers through: a. Prospecting. b. Financial review and need analysis. c. Suggesting solutions. d. Closing a sale. e. Getting further referrals. The benefits to the agents: The agents have a good earning opportunity through commissions, rewards, and thereby make a progress in career. Successful agents achieve personal growth and satisfaction and make an impact on the society around them. Rewards and recognition to the agents. There are various opportunities for the agents to perform and earn various rewards and incentives by qualifying for different clubs. They are 1. Champions League. 2. Udaan. 3. Acers Club. 100

13 The benefits of training at Bharti AXA Life. Training ensures that the agents become knowledgeable, professional, experienced, customer centric, persistent, dedicated and hardworking. The agents increase their job specific skills, become job centered. The role of a trainer is very important. It shapes attitude and overall growth on a long term perspective and makes the agents career centered. The agents become internally motivated for self development. Types of training. The different types of off the job training are: Vestibule training, role playing, lecture, case discussion and programmed instruction. The different types of on the job training are: Apprentice training, observation and demonstration calls with the trainers. Summary of Chapter 5: Life Insurance Corporation of India (LIC). In LIC agents go through both generic and specific, professional programs that help them remain well-informed and knowledgeable about the company s products in the market. There is a further focus on soft skills such as communication, managing longterm relationships and selling skills, which are very relevant in a service-driven industry like life insurance. State of the art infrastructure training facilities coupled with an excellent faculty, guarantee an exceptional learning environment. Majority of the agents and employees feel that training is necessary and they eagerly participate in Training programmes. The training programme adopted in LIC is very good. The top level management plays an effective role in implementing training programmes. After undergoing Training programmes their performance is improved and these Training programmes give better opportunity for growth and promotion. There is appropriate faculty for conducting training and development Programmes in LIC. LIC agents are constantly recognized and rewarded for their performance. Numerous competitions all year round promote healthy competition amongst agents and recognition for their efforts. Depending on the level of business the agent achieves in a year, he or she can become a member of various clubs such as the Corporate Club, the 101

14 Chairman s club, etc. Each of these clubs have specific performance criteria for qualifying and members of these clubs are entitled to attend seminars held at exotic international and domestic locations each year. Agents can also qualify for the renowned MDRT (Million Dollar Round Table), an exclusive international insurance advisors club. Bajaj Allianz Life Insurance Company Ltd. The agents have an unique opportunity to be associated with the one of the best private life insurance company, to work for, buy from and invest in. The curriculum would not only provide the financial consultants with in-depth knowledge into insurance but would equip them with the sales edge required in ever demanding and dynamic market. At Bajaj Allianz Life, the company values the agents, who are the brand ambassadors and therefore continuously train them to sharpen their skills. The training programmes ensures that the agents maintain the cutting edge above competition. The training schedules are such that it will help them to grasp the relevant areas in a faster and easier manner. The training modules include education and training in Life Insurance, training in selling skills, help and guidance in meeting customer needs, etc There are numerous financial opportunities for the agents to earn commissions, Bonus, renewal Commissions, awards and travel. There is professional recognition as a recognized professional financial planner. The agents are able to help the clients to achieve their financial objectives through the products. The agents can earn industry organized, internationally recognized or company sponsored rewards. HDFC Life Insurance. Training at HDFC Life is a learning experience in that it seeks a relatively permanent change in an individual that will improve his/ her ability to perform on the job. It involves changing of skills, attitude and knowledge. Development at HDFC Life is more future oriented and more concerned with education than with training. Management Development activities attempt to instill sound reasoning processes to enhance one s ability to understand and interpret knowledge. It focuses on the personal growth and on analytical, conceptual and human skills. The role of agents is to meet more & more people, understand their needs and dreams, do financial planning and give customized solutions. 102

15 The benefits of training at HDFC Life are that it increases job skills and specific skills so that the agents become job centered. The role of a trainer is very important and training helps to shape attitude and overall growth on a long term perspective. Bharti-AXA Life Insurance Company Ltd. The Role as Life Advisor is to provide need-based financial solutions to customers through Prospecting, Financial review and Need analysis, Suggesting solutions, closing a sale, getting further referrals, ongoing service to customers, following company guidelines & processes. The Acers Club has four levels of membership namely Bronze, Silver, Gold, and Platinum and is an exclusive agents relationship programme for agents who are keen to build a successful and rewarding career selling Bharti AXA Life s insurance products. The Acers Club is an exclusive advisor relationship program for agents who are keen to build a successful and rewarding career selling Bharti AXA Life s insurance products. There is specialized training for skill building, additional marketing support, ease of doing business initiatives, personal and family benefits and mentoring and coaching. Bharti-AXA Life expects all its agents to attend all training programs, follow the sales processes, attend all meetings, maintain customer records, achieve sales targets, enhance the company image and render customer service. References: [1]. Bajaj Allianz Life Insurance Company Ltd. (last accessed on 12/12/2012) [2]. Bharti-AXA Life Insurance Company Ltd. (last accessed on 08/12/2012) [3]. HDFC Life Insurance. (last accessed on 14/01/2013) [4]. Insurance Institute of India. (last accessed on 24/12/2012) [5]. Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000, (last accessed on 28/12/2012) [6]. Insurance Regulatory Development Authority. (last accessed on 28/12/2012) [8]. Life Insurance Corporation of India. (last accessed on 29/12/2012) 103