NAME : PRATIMA KHEDRA.

GUIDE : ASSISTANT PROF. ANJANA VERMA.

TOPIC : “HRM IN INSURANCE SECTOR”.

INTRODUCTION: HRM IN INSURANCE

■ Under present market forces and strict competition, the insurance companies are forced to be competitive.

■ Contemporary companies must seek ways to become more efficient, productive, flexible and innovative,
under constant pressure to improve results.

■ The traditional ways of gaining competitive advantage have to be supplemented with organizational
capability i.e. the firm’s ability to manage people.

■ Organizational capability relates to hiring and retaining competent employees and developing competencies
through effective human resource management practices.

■ Indeed, developing a talented workforce is essential to sustainable competitive advantage. High performance
work practices provide a number of important sources of enhanced organizational performance.

■ HR systems have important, practical impacts on the survival and financial performance of firms, and on the
productivity and quality of work life of the people in them.
 RESEARCH METHODOLOGY:
OBJECTIVES:

■ The phenomenal expansion of insurance sector: The major insurance companies in our country have
expanded their branches phenomenally in the last few decades. Also, many new insurance companies are
being established all over the country.

■ The objective of the study is therefore, to examine the insurance companies, their functioning and asses their
viability.

■ Liberalization in the Indian insurance sector has opened the sector to private competition. The insurance
industry forms an integral part of the global financial market, with insurance companies being significant
institutional investors. In recent decades, the insurance sector, like other financial services, has grown in
economic importance. A number of foreign insurance companies have set up representative offices in India
and have also tied up with various asset management companies.
IMPORTANCE OF THE STUDY

■ The need to make profits: Profits are essential for the survival and growth of every commercial organization.

■ Increasing emphasis on profitability: The profitability aspect of the insurance companies has gotten a lot of
attention in the recent years.

■ Employee satisfaction: Along with the increasing emphasis on profitability, employee satisfaction has also
been generating considerable interest. This study has thus been undertaken to examine the importance human
resource management in insurance companies.

■ HYPOTHESIS STAEMENT:

Investments in HRM practices can help a firm perform better.

 CASE STUDIES

1. FUTURE GENERALI INDIA LIFE INSURANCE :

Future Generali India Life Insurance Co. Ltd. is one of the rapidly growing Insurance companies in India. The
Company is a joint venture between the India-based Future Group and the Italy-based Generali Group. Future
Generali group is present in both the Life and Non-Life businesses in India as Future Generali India Life Insurance
Co. Ltd. and Future Generali India Insurance Co. Ltd. Generali Group was established in Trieste on December 26,
1831. It is an international group working in more than 40 countries with insurance companies, financial companies
and real estate sectors. After doing business in Central Eastern Europe, Generali Group has started to develop
business in the principal markets of the Far East, including China and India. Generali Group ranks among the top
three insurance groups in Europe and the 30th largest company in the Fortune 500 international ranking.
RECRUITMENT & SELECTION PROCESS:

Their recruitment process includes both internal and external methods.

1. INTERNAL METHODS:

a) Employee Referrals.

b) Job Posting.

2. EXTERNAL METHODS:

a) Former Employees.

b) Colleges.

c) Job Fair.

d) Advertising.
■ 2.) MAX NEW YORK LIFE INSURANCE :

Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited, one of India's
leading multi-business corporations and New York Life International, the international arm of New York Life, a
Fortune 100 company. The company has positioned itself on the quality platform. In line with its vision to be the
most admired life insurance company in India, it has developed a strong corporate governance model based on
the core values of excellence, honesty, knowledge, caring, integrity and teamwork.

Incorporated in 2000, Max New York Life started commercial operation in April 2001. In line with its values of
financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of
policyholder's funds. The Company's paid up capital as on 30th April, 2009 is Rs 1,786 crore.
The SIX Differentiators :

■ Selection Process.
■ Training Process.
■ Management Loyalty.
■ Product Research.
■ Contract.
■ Great Work Environment
 ANALYSIS:

■As it can be seen from the data collected and from the case studies that majority of the insurance companies
believe that investing in HRM is necessary in order to strengthen the insurance sector.

■Investing in HRM practices allows companies to strengthen their human resources. Human resources are one of
the most important resources in any organization. Efficient management of human resources is necessary for
the success of an organization.

■Efficient HRM practices leads to employee satisfaction. Employee’s performance improves which benefits the
entire organization.

■Employees are motivated and they perform better.

■This will in turn lead to increase in customer satisfaction and the organization will be able to increase its
customer base.

■RESULT:

■Thus, our hypothesis investing in human resource can help a firm perform better is PROVED.
 CONCLUSION

■ The core function of HRM in the insurance industry is to facilitate performance improvement, measured not only in terms of
financial indicators of operational efficiency but also in terms of the quality of financial services provided.

■ Factors like skills, attitudes and knowledge of the human capital play a crucial role in determining the competitiveness of the
financial sector. The quality of human resources indicates the ability of insurance companies to deliver value to customers.

■ Capital and technology are replicable but not the human capital which needs to be valued as a highly valuable resource for
achieving that competitive edge. The primary emphasis needs to be on integrating human resource management strategies
with the business strategy.

■ HRM strategies include managing change, creating commitment, achieving flexibility and improving teamwork. The other
processes representing the overt aspects of HRM, viz. recruitment, placement, performance management are complementary.

■ HRM has a crucial role to play in insurance sector. It acts as backbone for the insurance sector, because it only lays the
structure for the organizations operations, functioning and working. Even with the advent of high technology it will have a
prominent role to portray.