SBI LIFE INSURANCE COMPANY LIMITED

SUBMITTED BY, SUBMITTED TO,

SHIVAPRASAD. K.P Miss. NAMRATHA SHETTY
4TH18MBA53 ASSISTANT PROFESSOR
SHREE DEVI INSTITUTE OF SHREE DEVI INSTITUTE OF
TECHNOLOGY KENJAR, TECHNOLOGY KENJAR,
MANGALORE. MANGALORE.

DEPARTEMENT OF MBA
SHREE DEVI INSTITUTE OF TECHNOLOGY
KENJAR MANGALORE
(2018-2020)
 SBI LIFE INSURANCE:
SBI Life Insurance Company Limited (SBI Life) established in 2001
is a joint venture between State Bank of India (SBI) and BNP Paribas Cardif S.A. and is one
of the leading life Insurance companies in India. SBI has an unrivalled strength of over 22000
branches across the country making it the largest banking group in India. BNP Paribas Cardif
S.A. is the life and property & casualty insurance arm of BNP Paribas one of the strongest
banks in the world. The company offers individual and group products which include
savings and protection plans to address the insurance needs of diverse customer segments.
SBI Life has a multi-channel distribution network comprising of an expansive Banc
assurance channel with SBI and agent network comprising of 1.13 lakh agents as on
September 30 2018.
The company's other distribution channels include direct sales and sales through corporate
agents brokers insurance marketing firms and other intermediaries. As on September 30 2018
the company had a widespread network of 848 offices across the Country.SBI Life Insurance
Company Limited was incorporated as a public limited company at Mumbai on October 11
2000 and received certificate of commencement of business from the RoC on November 20
2000. The Company is registered with the IRDAI for carrying out business of life insurance
pursuant to the registration certificate dated March 29 2001. During financial year 2002-03
SBI Life launched Banc assurance channel. It also paid its first claim during the year. .
During the financial year 2011-12 SBI Life achieved the milestone of profit after tax (PAT)
of Rs 500 crore; the company reported PAT of Rs 556 crore for the year. It also declared a
maiden dividend of 5% during the year. During the financial year 2012-13 the company's
AUM crossed the milestone of Rs 50000 crore and the number of branches crossed 750.
During the financial year 2015-16 SBI Life's GWP crossed the milestone of Rs 15000
crore.During the financial year 2016-17 SBI Life's renewal premium collection crossed the
milestone of Rs 10000 crore. Also during the year value line Pte ltd and McRitchie
investments Pte ltd bought stake of 1.95% each in SBI life from SBI.

CUSTOMER RETENTION STRATERGY:

Customer retention is the activity that a selling
organization undertakes in order to reduce customer defections. Successful customer
retention starts with the first contact an organization has with a customer and continues
throughout the entire lifetime of a relationship. A company’s ability to attract and retain new
customers is not only related to its product or services, but strongly related to the way it
services its existing customers and the reputation it creates within and across the marketplace.
Established customer tends to buy more, are predictable and usually cost less to service new
customers. They tend to be lesser prices sensitive and may provide free word-of-mouth
advertising and refferals. Retaining customers also makes it difficult for competitors to enter
a market or increase share in that market.

CUSTOMER RETENTION STRATERGY OF SBI LIFE INSURANCE:

Two types of strategies, namely solicited feedback and operations feedback are used
to improve the activates of the organization.
Various types of research are employed including customer expectation research,
performance research, direct customer feedback research and process management
research.
 1. Personal Touch:
SBI Insurance company will often assign a customer to a single
insurance agent that will remain with them as long as possible. This puts a human face
on the company’s creating a personal relationship that’s much harder for a customer
to break than a mere series of business transactions. When someone renews an
insurance policy, the company typically sends a personalized thank you postcard and
follows up with updates from the company newsletter.
2. Price Competition:
The insurance industry is very competitive when it comes to
pricing, although there isn’t complete parity across all companies in terms of rates
offered. To retain customers SBI life insurance altered their rates and offer special
discount programs to customers who qualify. In general, if a customer shows a rate
quote to the current insurance agent that company will match the quoted rate to retain
that customer. Even if the company ends up losing some of the profits, it will retain
the customer, avoiding a total loss.

3. Raising Barrier to Exit:

The majority of insurance companies will charge a
penalty to customers who leave their insurance company before the renewal date
comes up. SBI Life Insurance Company tries to sell multiple policies to their existing
customers to make it much more difficult to switch companies. The companies also
offer deals on insurance premiums and policy features for customers who have
multiple policies. Marketing a new policy to existing customers is much less
expensive than mounting an advertising campaign to lure in new customers.

4. Selling additional policies:

SBI life insurance tends to try to envelop their
customers in a web of various insurance policies, which raises the barrier to exit. The
more policies that they have with more annoying it’ll be for them to jump to another
insurance company to get a lower rate. If the SBI life can sell an additional policy to a
customer, they’re also spending much less money on marketing to acquire that
additional policy than they would on a new customer.

5. Customer Service:
SBI life insurance companies use basic customer service and
sales strategies to keep their customers from leaving for another one with lower rates.
Many sales and customer service representatives will identify themselves using their
names and attempt to be friendly with their customers. This makes the insurance
relationship more than a business transaction for the customer.

6. Insurance Emotional Product:

In most cases, insurance policies provide customers with
more of an emotional peace of mind than actual financial protection. SBI life would
not be profitable if they did not pay out much less claims than they took in from
premiums. The vast majority of their customers are paying to free themselves from
the stress of worrying how they could recover from the destruction of their car etc.