hdfc life insurance
TRANSCRIPT
1
CHAPTER -- IINTRODUCTION
2
1.1 INTRODUCTION TO THE STUDY
Customer is the king and it is the customer who decides what a business
is and therefore a sound marketing programme starts with a careful analysis of
habits, attitudes, motives and needs of the customers.
Definition of Buying Behavior:
Buying Behavior is the decision processes and acts of people involved in
buying and using products.
Customer buying behavior:
Customer buying behavior refers to the buying behavior of the
ultimate end user
i.e. the customer. A firm needs to analyse the buying behavior for :
¾ Buyers reactions to a firms marketing strategy has a great impact on the
firms success.
¾ The marketing concept stresses that a firm should create a marketing mix
that satisfies a customer and therefore need to analyze the what, where,
when and how the customers buy.
¾ Marketers can better predict how customers will respond to marketing
strategies.
How Consumer Buy:
1. Need/Want/Desire is recognized:
In the first step the customer has determined that for some reason he/she is
not satisfied (i.e. customer’s perceived actual condition) and wants to improve
his/her situation. External factors can also trigger the customer’s needs.
Marketers are particularly good at this through advertising, in-store displays etc.
undertake a search for information on possible solutions. The sources may be
simple like the past experience or the customer may expend considerable effort
3
to locate information from outside sources (internet, etc.). How much effort the
customer directs towards searching depends on factors such as:
¾ The importance of satisfying the need
¾ Familiarity with available sources
¾ The amount of time available for search.
3. Evaluate options:
Customers search efforts may result in set of options from which a choice
can be made. It should be noted that there may be two levels to this stage. At
level one the customer may create a set of possible solutions to their solution
while at level two the customer may be evaluating particular products within
each solution.
4. Purchase:
In many cases the solution chose by the customer is the same as the
product whose evaluation is highest. The intended purchase may be altered at the
time of purchase for many reasons such as the product is out of stock, a
competitor offering incentive at the time of purchase, the customer lacking in
necessary of funds.
5. After purchase evaluation:
Once the customer has made the purchase they are faced with the
evaluation of the decision. If the product performs below the customer’s
expectation then he/she will re-evaluate the satisfaction with the decision, which
at its extreme might result in the customer returning the product while in less
extreme situations the customer will retain the product but may take a negative
view of the product. Such evaluations might occur in expensive or highly
important purchases. Customer service centre and follow-up market research are
useful tools in helping to address the purchaser’s concern.
4
HDFC BANK PROFILE
THE HISTORY OF INDIAN INSURANCE HDFC BANK
LIFE INSU RANCE
In 1818 the British established the first insurance company in India in
Calcutta, the Oriental Life Insurance Company. First attempts at regulation of
the HDFC BANK 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 HDFC BANK. 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
5
consumers” then led the Indian government to nationalize the HDFC BANK. In
September 1956, nationalization was completed, merging all these companies
into the so- called Life Insurance Corporation (LIC). It was felt that
“nationalization has lent the
HDFC BANK 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.
GENERAL INSURANCEThe General Insurance HDFC BANK in India dates back to the Industrial
Revolution and the subsequent increase in trade across the oceans in the 17th
century. As for Life Insurance, the British brought General Insurance to India,
and a similar path was followed in the development of this HDFC BANK. A
number of private companies were in existence for years and years until, in
1971, the Indian Government decided that the public interest would be served
by nationalizing the HDFC BANK, merging all the 107 companies into four
companies, depending on the sort of business transacted (Marine, Fire,
Miscellaneous). These were the National Insurance Company Ltd., the Oriental
Insurance Company Ltd., the New India Assurance Company Ltd., and the
United India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay
6
and Madras respectively. The General Insurance Corporation (GIC) was set up
in 1972 as a ‘holding’ company, having these four companies as its subsidiaries.
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.
MAJORMAJOR PLAPLAYYERSERS IINN THETHE ININSSURURAANNCCEE HDFC BANKHDFC BANK ININ INDIAINDIA
LIFE INSU RANCE CORPORAT ION OF INDIA (LIC)
Life Insurance Corporation of India (LIC) was established on 1 September 1956
to spread the message of life insurance in the country and mobilise people’s
savings for nation- building activities. LIC with its central office in Mumbai 7
and seven zonal offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad,
Kanpur and Bhopal, operates through 100 divisional offices in important cities
and 2,048 branch offices. LIC has 5.59 lakh active agents spread over the
country.
The Corporation also transacts business abroad and has offices in Fiji, Mauritius
and United Kingdom. LIC is associated with joint ventures abroad in the field of
insurance, namely, Ken-India Assurance Company Limited, Nairobi; United
Oriental Assurance Company Limited, Kuala Lumpur; and Life Insurance
Corporation (International), E.C. Bahrain. It has also entered into an agreement
with the Sun Life (UK) for marketing unit linked life insurance and pension
policies in U.K.
In 1995-96, LIC had a total income from premium and investments of $ 5
Billion while GIC recorded a net premium of $ 1.3 Billion. During the last
15 years, LIC's income grew at a healthy average of 10 per cent as against
the HDFC BANK's 6.7 per cent growth in the rest of Asia (3.4 per cent in
Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the
poverty line, with 50 per cent subsidy in the premium rates. LIC's claims
settlement ratio at 95 per cent and GIC's at 74 per cent are higher than that of
global average of 40 per cent. Compounded annual growth rate for Life
insurance business has been 19.22 per cent per annum.
8
General Insurance Corporation of India (GIC)
The general insurance HDFC BANK in India was nationalized and a
government company known as General Insurance Corporation of India (GIC)
was formed by the Central Government in November 1972. With effect from
1 January 1973 the erstwhile 107
Indian and foreign insurers which were operating in the country prior to
nationalization, were grouped into four operating companies, namely,
(i) National Insurance Company
Limited;
(ii) New India Assurance Company
Limited;
(iii) Oriental Insurance Company
Limited; and
(iv) United India Insurance Company
Limited.
(However, with effect from Dec'2000, these subsidiaries have been de-linked
from the parent company and made as independent insurance companies). All
the above four subsidiaries of GIC operate all over the country competing with
one another and underwriting various classes of general insurance business
except for aviation insurance of national airlines and crop insurance which is
handled by the GIC.
Besides the domestic market, the HDFC BANK is presently operating in 17
countries directly through branches or agencies and in 14 countries through
subsidiary and associate companies.
IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING
9
HAVE BEEN PERMITTED TO ENTER INTO INSURANCE BUSINESS:
-
The introduction of private players in the HDFC BANK has added to the colors
in the dull HDFC BANK. The initiatives taken by the private players are very
competitive and have given immense competition to the on time monopoly of
the market LIC. Since the advent of the private players in the market the HDFC
BANK has seen new and innovative steps taken by the players in this sector.
The new players have improved the service quality of the insurance. As a
result LIC down the years have seen the declining phase in its career. The
market share was distributed among the private players.
10
1. HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Company Ltd. is one of India’s leading private
life insurance companies, which offers a range of individual and group
insurance solutions. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance
institution and The Standard Life Assurance Company, a leading provider of
financial services from the United Kingdom. Their cumulative premium
income, including the first year premiums and renewal premiums is Rs. 672.3
for the financial year, Apr-Nov 2005. They have managed to cover over
11,00,000 individuals out of which over 3,40,000 lives have been covered
through our group business tie-ups.
2. Max New York Life Insurance Co. Ltd.
Max New York Life Insurance Company Limited is a joint venture that brings
together two large forces - Max India Limited, a multi-business corporate,
together with New York Life International, a global expert in life insurance.
With their various Products and Riders, there are more than 400 product
combinations to choose from. They have a national presence with a network of
57 offices in 37 cities across India.
3. ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank, a premier financial powerhouse and prudential plc, a leading
international financial services group headquartered in the United Kingdom.
ICICI Prudential was amongst the first private sector insurance companies to
begin operations in December 2000 after receiving approval from Insurance
11
Regulatory Development Authority (IRDA). The company has a network of
about 56,000 advisors; as well as 7banc assurance and 150
corporate agent.
12
4. Om Kotak Mahindra Life Insurance Co. Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc.
5.Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and
Sun Life financial Services of Canada.
¾ Tata AIG Life Insurance Company Ltd.
¾ SBI Life Insurance Company Limited
¾ ING Vysya Life Insurance Company Private Limited
¾ Bajaj Allianz Life Insurance Company Ltd.
¾ MetLife India Insurance Company Pvt. Ltd.
¾ AMP SANMAR Assurance Company Ltd.
¾ Dabur CGU Life Insurance Company Pvt. Ltd.
6. Royal Sundaram Alliance Insurance Company Limited
The joint venture bringing together Royal & Sun Alliance Insurance and
Sundaram Finance Limited started its operations from March 2001. The
company is Head Quartered at Chennai, and has two Regional Offices, one at
Mumbai and another one at New Delhi.
7. Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto
Limited and Allianz AG of Germany. Both enjoy a reputation of expertise,
13
stabil
Bajaj Allianz General Insurance received the Insurance Regulatory and
Development Authority (IRDA) certificate of Registration (R3) on May 2nd,
2001 to conduct General Insurance business (including Health Insurance
business) in India. The Company has an authorized and paid up capital of Rs
110 crores. Bajaj Auto holds 74% and Allianz, AG, holds the remaining 26%
Germany.
8. ICICI Lombard General Insurance Company Limited
ICICI Lombard General Insurance Company Limited is a joint venture between
ICICI Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings
Limited. ICICI Bank is India's second largest bank, while Fairfax Financial
Holdings is a diversified financial corporate engaged in general insurance,
reinsurance, insurance claims management and investment management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited,
is one of Canada's oldest property and casualty insurers. ICICI Lombard
General Insurance Company received regulatory approvals to commence
general insurance business in August 2001.
9. Cholamandalam General Insurance Company Ltd.
Cholamandalam MS General Insurance Company Limited (Chola-MS) is a
joint venture of the Murugappa Group & Mitsui Sumitomo.
Chola-MS commenced operations in October 2002 and has issued more than
1.4 lakh policies in its first calendar year of operations. The company has a
pan-Indian presence with offices in Chennai, Hyderabad, Bangalore, Kochi, 14
Coimbatore, Mumbai, Pune, Indore, Ahmedabad, Delhi, Chandigarh, and
Kolkata.
10. TATA AIG General Insurance Company Ltd.
Tata AIG General Insurance Company Ltd. is a joint venture company, formed
from the Tata Group and American International Group, Inc. (AIG). Tata AIG
combines the strength and integrity of the Tata Group with AIG's international
expertise and financial strength. The Tata Group holds 74 per cent stake in the
two insurance ventures while AIG holds the balance 26 per cent stake.
MARKET I NG OF INSURANCE IN INDIA
Insurance is in a manner of speaking the last frontier in the financial sector to
open. It is also a sector, which leads to benefits across the full spectrum, from
the individual who now have wider choices, to the economy, which see
increased savings, to the infrastructure sector, which can look forward to long
term funding being available. In an under-insured economy, newer channels of
distribution have to be utilized to intensify the reach of insurance both in urban
and rural markets. This will create huge employment opportunities not only
within insurance companies but also as agents and consultants of insurance
companies.
Marketing Mix Policies
Different companies can choose to position themselves differently and hence
15
the Marketing Mix is different. However, there are certain common
characteristics that one can cull out from the possible strategies that companies
adopt.
Product:
The development of flexible products to suit individual requirements is what
will differentiate the winners from the also-rans. The key to success is in
providing insurance solutions, not standardized insurance products. The
concept of riders/optional benefits has already been a huge innovation brought
about by the new players, which has led to customization of products for
individual needs. However, companies may differentiate themselves on the basis
of product segments that they choose to focus on and excel in.
Place:
Different companies may however choose different channels and different
geographies to focus on. The channel options are - tied agency force,
corporate agents and brokers and
this is an area where different companies will make different choices. Many companies
like HDFC Standard Life are focusing on all channels whereas companies like
Max New York Life are focusing on the tied agency force only. Customer
interface will be a key
challenge for life insurance companies and includes every that interaction that
the customer has with the company, such as sales, new business underwriting,
policy servicing, premium payments, claim processing and so on. Technology
can play a crucial role in delivering the highest standards of service set by the
company and it will be imperative for any serious player to excel in all of
these.
Price:16
Price is a relevant differentiator only in two segments - pure term insurance
and in pure annuities. Here too, service delivery and financial strength will
need to be present at a minimum acceptable level for price to be a relevant
differentiator. In case of savings oriented products, long-term returns generated
are more relevant than just the price of the product. A focus on generating good
investment performance and keeping a tight control on costs help in
generating good long-term maturity value for customers. Norms have been
laid down on all of these by IRDA and adhering to these while delivering good
returns will be a challenge.
™ Promotion and Advertising:
The level of demand is latent and will have to be activated considerably.
The market needs to be developed. Greater awareness of insurance and the
need to have it as a protection tool rather than as a tax planning measure
needs to be appreciated by the Indian people. Various communication tools
including advertising, direct marketing and road shows contribute to all this
and different companies take different approaches on these.
17
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
The Insurance Regulatory and Development Authority (IRDA) is
a national agency of the Government of India, based in Hyderabad. In 1999,
the Insurance Regulatory and Development Authority (IRDA) was constituted
as an autonomous body to regulate and develop the insurance HDFC BANK.
The IRDA was incorporated as a statutory body in April, 2000.
The key objectives of the IRDA include promotion of competition
so as to enhance customersatisfaction through increased consumer choice and
lower premiums, while ensuring the financial security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for
application for registrations. Foreign companies were allowed ownership of up
to 26%. The
Authority has the power to frame regulations under Section 114A of the Insurance Act,
1938 and has from 2000 onwards framed various regulations ranging from
registration of companies for carrying on insurance business to protection of
policyholders’ interests.
Role of IRDA:
¾ Protecting the interests of policyholders.
¾ Establishing guidelines for the operations of insurers, and brokers.
¾ Specifying the code of conduct, qualifications, and training for
insurance
We at HDFC Standard Life realize that not everyone has the same kind
of needs. Keeping this in mind, we have a varied range of Products that you
can choose from to suit all your needs. These will help secure your future
as well as the future of your family.18
Protection Plans
You can protect your family against the loss of your income or the
burden of a loan in the event of your unfortunate demise, disability or
sickness. These plans offer valuable peace of mind at a small price.
• Term Assurance Plan• Loan Cover Term
• Assurance Plan
Investment Plans
Our investment products are well suited to meet your long-term needs.
• Single Premium Whole Life Plan
Pension Plans
Our Pension Plans help you secure your financial independence even
after retirement.
• Personal Pension Plan
• Unit Linked Pension Plan
• Unit Linked Pension Plus
Our Im m ediate Ann u ity plan will aid you in receiving income post
retirement and securing you financial independence.
Savings Plans
Our Savings Plans offer you flexible options to build savings for
your future needs such as buying a dream home or fulfilling your children’s
immediate and future needs. Our Savings range includes
• Endowment Assurance Plan
19
• Unit Linked Endowment
• Unit Linked Endowment Plus
• Money Back Plan
• Children's Plan
• Unit Linked Young star
• Unit Linked Young star Plus
Health Plans
Our health plans provides you with timely support in case of any health
related emergencies and helps you and your family to remain financially
independent in difficult times
• Critical care plan
• Surqi care plan
Group Products:
One-stop shop for employee-benefit solutions
HDFC Standard Life has the most comprehensive list of products for
progressive employers who wish to provide the best and most innovative
employee benefit solutions to their employees. We offer different products for
different needs of employers ranging from term insurance plans for pure
protection to voluntary plans such as superannuation and leave encashment.
We now offer the following group products to our esteemed corporate clients
• Group Term Insurance
• Group Variable Term Insurance
• Group Unit-Linked Plan
20
Social Pro d uct
Development Insurance plan is an insurance plan which provides
life cover to members of a Development Agency for a term of one year. On
the death of any member of the group insured during the year of cover, a
lump sum is paid to that member’s beneficiaries to help meet some of the
immediate financial needs following their loss. Other product:
• Rural products
• Tax benefits
The Value Added Services Offered By The HDFC std. life
insurance: Electronic clearing system:
It is a system where your premium gets directly debited from your
bank account on your due dates. This helps the customer to pay the insurance
premium with out to the insurance company.
Financial advisors:
Advisors are the back is not just selling of the policies but listen to the
customer like what they need, how much they can invest, which policy suits
them the and what kind of policy expect from us i.e. what kind of policies
should be designed for them.
Ease in renewal of the lapsed policy:
Policy holder can easily renew their policy without much more
difficulties for these customers can seed the help of financial consultant.
Other service:
21
• Customized products
• All the information about the companies and its products are
available in company’s web site.
• In case a customer wants to pay their premiums through cheque
then they can draw them in favors of the insurance company in which
he has the policy.
• Market information: customers can check their policy status through online.
22
CHAPTER—II
RESEARCH METHODOLOGY
23
1.2 OBJECTIVES OF T H E STUDY
PRIMARY OBJECTIVES:
¾ To determine reasons behind opting for an insurance.
¾ To determine customers buying behaviour towards private insurance
companies and their expectation form private insurance companies.
¾ To determine the feedback on services provided by any other insurance agent.
¾ To study the types of benefits provided by insurance services.
SECONDARY OBJECTIVES:
¾ To know whether the service offered by the company has satisfied the
needs of all groups of people.
¾ To find out the benefits preferred by the customers.¾ To know about their views about the company and to assess to their views.
1.3. SCO PE OF THE S TUDY:A big boom has been witnessed in Insurance HDFC BANK in recent
24
times. A large number of new players have entered the market and are trying to
gain market share in this rapidly improving market. The study deals with
HDFC Standard Life in focus and the various segments that it caters to. The
study then goes on to evaluate and analyze the
findings so as to present a clear picture of trends in the Insurance sector.
1.4. LIM I TATI ON S OF T H E STUDY:
1) The research is confined to a certain parts of Coimbatore and does not
necessarily show a pattern applicable to all parts of the Country.
2) Some respondents were reluctant to divulge personal information, which
can affect the validity of all responses.
3) In a rapidly changing HDFC BANK, analysis on one day or in one
segment can change very quickly. The environmental changes are vital to
be considered in order to assimilate the findings.
4.) The data collected from the customers may be biased.
2.1. RESEARCH DESIGN OF THE STUDY:
Marketing research can be defined as the systematic design, collection,
analysis, and reporting of the data and finding relevant to a specific marketing
situation facing the company.
Research design is the basic plan which guides the researchers in the
collection and analysis of data required for practicing the research product. In
fact the research design is the conceptual structure with which research is
conducted. It consist the blue print for the collection, measurement and
25
analysis of the data that was followed completing the study to ensure that study
is relevant to the problem and will follow the predetermined and set data.
The main data feature of “Research Design” is that it specifies
population to be studied. The main them of the chapter is to know the source
of the data the researcher has collected. Data are raw facts of observation,
typically about physical phenomenon. Descriptive research :
The research design selected for this research is descriptive research design.
2.2. METHODOLOGY:
Collection of the data for the study can be drawn from following methods for
study.
Sources of the data:
After determining the objectives of study and research design, the next
important step is data is step collection method. The information has to be
collected from the retailers. During the process of the study the data is
collected from the target segment that is customers, dealers and distributors
with help of a structured well designed questionnaire.
Data is collected from
• Primary data
• Secondary data
Primary data
It was collected through questionnaire prepared contains relevant
questions that are both close ended and opened. Individual and group 26
interviews also under taken with difference consumers,
I have collected mainly the Primary Data for my study by utilizing the
questionnaire and interview methods.
Secondary data
These data are collected from published sources such as Magazines, NEWS
papers, several books, and also from the help of web site www.hdfcsl.com.
(A) Sampling plan of the
study: Sample size:
Sample size refers to number of elements to be included in the study several
qualitative factors should also be taken into consideration when determining
the sample size. These include the nature of research, number of variable,
and nature of analysis, sample size used in similar studies incidence rates,
completion rates, and resources constraints.
During the process of the study, survey has been conducted on 100 respondents.
Sampling method:
The researcher had choice between probability and non probability
sampling methods study simple non probability method namely
convenience sampling adopted.
27
CHAPTER—III
INDUSTRY & COMPANY PROFILE
28
INDUSTRY PROFILE
THE HISTORY OF INDIAN INSURANCE INDUSTRY
LIFE INSU RANCE
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 so- called Life Insurance Corporation (LIC). It was felt that
“nationalization has lent the
industry fairness, solidity, growth and reach.”
29
Some of the important milestones in the life i n surance business in In d i a 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.
GENERAL INSURANCE
The General Insurance industry in India dates back to the Industrial Revolution
and the subsequent increase in trade across the oceans in the 17th century. As
for Life Insurance, the British brought General Insurance to India, and a similar
path was followed in the development of this industry. A number of private
companies were in existence for years and years until, in 1971, the Indian
30
Government decided that the public interest would be served by nationalizing
the industry, merging all the 107 companies into four companies, depending on
the sort of business transacted (Marine, Fire, Miscellaneous). These were the
National Insurance Company Ltd., the Oriental Insurance Company Ltd., the
New India Assurance Company Ltd., and the United India Insurance Company
Ltd. located in Calcutta, New Delhi, Bombay and Madras respectively. The
General Insurance Corporation (GIC) was set up in 1972 as a ‘holding’
company, having these four companies as its subsidiaries.
Some of the important milestones in t h e 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
31
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.
MAJORMAJOR PLAPLAYYERSERS IINN THETHE ININSSURURAANNCCEE INDINDUUSTSTRRYY ININ INDIAINDIA
LIFE INSURANCE CORPORATION OF INDIA (LIC)
Life Insurance Corporation of India (LIC) was established on 1 September
1956 to spread the message of life insurance in the country and mobilise
people’s savings for nation- building activities. LIC with its central office in
Mumbai and seven zonal offices at Mumbai, Calcutta, Delhi, Chennai,
Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in
32
important cities and 2,048 branch offices. LIC has 5.59 lakh active agents
spread over the country.
The Corporation also transacts business abroad and has offices in Fiji,
Mauritius and United Kingdom. LIC is associated with joint ventures abroad in
the field of insurance, namely, Ken-India Assurance Company Limited,
Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur; and
Life Insurance Corporation (International), E.C. Bahrain. It has also entered
into an agreement with the Sun Life (UK) for marketing unit linked life
insurance and pension policies in U.K.
In 1995-96, LIC had a total income from premium and investments of $ 5
Billion while GIC recorded a net premium of $ 1.3 Billion. During the last
15 years, LIC's income grew at a healthy average of 10 per cent as against
the industry's 6.7 per cent growth in the rest of Asia (3.4 per cent in Europe,
1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the
poverty line, with 50 per cent subsidy in the premium rates. LIC's claims
settlement ratio at 95 per cent and GIC's at 74 per cent are higher than that of
global average of 40 per cent. Compounded annual growth rate for Life
insurance business has been 19.22 per cent per annum.
General Insurance Corporation of India (GIC)
The general insurance industry in India was nationalized and a government
company known as General Insurance Corporation of India (GIC) was formed
33
by the Central Government in November 1972. With effect from 1 January
1973 the erstwhile 107
Indian and foreign insurers which were operating in the country prior to
nationalization, were grouped into four operating companies, namely,
(i) National Insurance Company
Limited; (ii) New India Assurance
Company Limited; (iii) Oriental
Insurance Company Limited; and (iv)
United India Insurance Company
Limited.
(However, with effect from Dec'2000, these subsidiaries have been de-
linked from the parent company and made as independent insurance
companies). All the above four subsidiaries of GIC operate all over the
country competing with one another and underwriting various classes of
general insurance business except for aviation insurance of national airlines
and crop insurance which is handled by the GIC.
IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING
HAVE BEEN PERMITTED TO ENTER INTO INSURANCE
BUSINESS: -
The introduction of private players in the industry has added to the colors in
the dull industry. The initiatives taken by the private players are very
competitive and have given immense competition to the on time monopoly of
the market LIC. Since the advent of the private players in the market the
industry has seen new and innovative steps taken by the players in this sector.
The new players have improved the service quality of the insurance. As a
34
result LIC down the years have seen the declining phase in its career. The
market share was distributed among the private players.
35
1. HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Company Ltd. is one of India’s leading private
life insurance companies, which offers a range of individual and group
insurance solutions. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance
institution and The Standard Life Assurance Company, a leading provider of
financial services from the United Kingdom. Their cumulative premium
income, including the first year premiums and renewal premiums is Rs. 672.3
for the financial year, Apr-Nov 2005. They have managed to cover over
11,00,000 individuals out of which over 3,40,000 lives have been covered
through our group business tie-ups.
2. Max New York Life Insurance Co. Ltd.
Max New York Life Insurance Company Limited is a joint venture that brings
together two large forces - Max India Limited, a multi-business corporate,
together with New York Life International, a global expert in life insurance.
With their various Products and Riders, there are more than 400 product
combinations to choose from. They have a national presence with a network of
57 offices in 37 cities across India.
3. ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank, a premier financial powerhouse and prudential plc, a leading
international financial services group headquartered in the United Kingdom.
ICICI Prudential was amongst the first private sector insurance companies to
36
begin operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). The company has a network of
about 56,000 advisors; as well as 7banc assurance and 150
corporate agent tie-ups.
4. Om Kotak Mahindra Life Insurance Co. Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc.
5.Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and
Sun Life financial Services of Canada.
¾ Tata AIG Life Insurance Company Ltd.
¾ SBI Life Insurance Company Limited
¾ ING Vysya Life Insurance Company Private Limited
¾ Bajaj Allianz Life Insurance Company Ltd.
¾ MetLife India Insurance Company Pvt. Ltd.
¾ AMP SANMAR Assurance Company Ltd.
¾ Dabur CGU Life Insurance Company Pvt. Ltd.
6. Royal Sundaram Alliance Insurance Company Limited
37
The joint venture bringing together Royal & Sun Alliance Insurance and
Sundaram Finance Limited started its operations from March 2001. The
company is Head Quartered at Chennai, and has two Regional Offices, one at
Mumbai and another one at New Delhi.
7. Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto
Limited and Allianz AG of Germany. Both enjoy a reputation of expertise,
stability and strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and
Development Authority (IRDA) certificate of Registration (R3) on May 2nd,
2001 to conduct General Insurance business (including Health Insurance
business) in India. The Company has an authorized and paid up capital of Rs
110 crores. Bajaj Auto holds 74% and Allianz, AG, holds the remaining 26%
Germany.
8. ICICI Lombard General Insurance Company Limited
ICICI Lombard General Insurance Company Limited is a joint venture
between ICICI Bank Limited and the US-based $ 26 billion Fairfax Financial
Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax
Financial Holdings is a diversified financial corporate engaged in general
insurance, reinsurance, insurance claims management and investment
management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited,
38
is one of Canada's oldest property and casualty insurers. ICICI Lombard
General Insurance Company received regulatory approvals to commence
general insurance business in August 2001.
9. Cholamandalam General Insurance Company Ltd.
Cholamandalam MS General Insurance Company Limited (Chola-MS) is a
joint venture of the Murugappa Group & Mitsui Sumitomo.
Chola-MS commenced operations in October 2002 and has issued more than
1.4 lakh policies in its first calendar year of operations. The company has a
pan-Indian presence with offices in Chennai, Hyderabad, Bangalore, Kochi,
Coimbatore, Mumbai, Pune, Indore, Ahmedabad, Delhi, Chandigarh, and
Kolkata.
10. TATA AIG General Insurance Company Ltd.
Tata AIG General Insurance Company Ltd. is a joint venture company, formed
from the Tata Group and American International Group, Inc. (AIG). Tata AIG
combines the strength and integrity of the Tata Group with AIG's international
expertise and financial strength. The Tata Group holds 74 per cent stake in the
two insurance ventures while AIG holds the balance 26 per cent stake.
39
Tata AIG General Insurance Company, which started its operations in India on January
22, 2001, offers the complete range of insurance for automobile, home,
personal accident, travel, energy, marine, property and casualty, as well as
several specialized financial lines.
MARKET I NG OF INSURANCE IN INDIA
Insurance is in a manner of speaking the last frontier in the financial sector to
open. It is also a sector, which leads to benefits across the full spectrum, from 40
the individual who now have wider choices, to the economy, which see
increased savings, to the infrastructure sector, which can look forward to
long term funding being available. In an under-insured economy, newer
channels of distribution have to be utilized to intensify the reach of insurance
both in urban and rural markets. This will create huge employment
opportunities not only within insurance companies but also as agents and
consultants of insurance companies.
Marketing Mix Policies
Different companies can choose to position themselves differently and hence
the Marketing Mix is different. However, there are certain common
characteristics that one can cull out from the possible strategies that companies
adopt.
™ Product:
The development of flexible products to suit individual requirements is what
will differentiate the winners from the also-rans. The key to success is in
providing insurance solutions, not standardized insurance products. The
concept of riders/optional benefits has already been a huge innovation brought
about by the new players, which has led to customization of products for
individual needs. However, companies may differentiate themselves on the
basis of product segments that they choose to focus on and excel in.
Place:
Different companies may however choose different channels and different
geographies to focus on. The channel options are - tied agency force,
corporate agents and brokers and
this is an area where different companies will make different choices. Many 41
companies
42
like HDFC Standard Life are focusing on all channels whereas companies like
Max New York Life are focusing on the tied agency force only. Customer
interface will be a key challenge for life insurance companies and includes
every that interaction that the customer has with the company, such as sales,
new business underwriting, policy servicing, premium payments, claim
processing and so on. Technology can play a crucial role in delivering the
highest standards of service set by the company and it will be imperative for
any serious player to excel in all of these.
Price:
Price is a relevant differentiator only in two segments - pure term insurance
and in pure annuities. Here too, service delivery and financial strength will
need to be present at a minimum acceptable level for price to be a relevant
differentiator. In case of savings oriented products, long-term returns generated
are more relevant than just the price of the product. A focus on generating
good investment performance and keeping a tight control on costs help in
generating good long-term maturity value for customers. Norms have been
laid down on all of these by IRDA and adhering to these while delivering good
returns will be a challenge.
Promotion and Advertising:
The level of demand is latent and will have to be activated considerably.
The market needs to be developed. Greater awareness of insurance and the
need to have it as a protection tool rather than as a tax planning measure
needs to be appreciated by the Indian people. Various communication tools
including advertising, direct marketing and road shows contribute to all this
and different companies take different approaches on these.
43
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
The Insurance Regulatory and Development Authority (IRDA) is
a national agency of the Government of India, based in Hyderabad. In 1999,
the Insurance Regulatory and Development Authority (IRDA) was constituted
as an autonomous body to regulate and develop the insurance industry. The
IRDA was incorporated as a statutory body in April, 2000.
The key objectives of the IRDA include promotion of
competition so as to enhance customersatisfaction through increased
consumer choice and lower premiums, while ensuring the financial security of
the insurance market. The IRDA opened up the market in August 2000 with
the invitation for application for registrations. Foreign companies were
allowed ownership of up to 26%. The
Authority has the power to frame regulations under Section 114A of the Insurance Act,
1938 and has from 2000 onwards framed various regulations ranging from
registration of companies for carrying on insurance business to protection of
policyholders’ interests.
Role of IRDA:
¾ Protecting the interests of policyholders.
44
¾ Establishing guidelines for the operations of insurers, and brokers.
¾ Specifying the code of conduct, qualifications, and training
for insurance intermediaries and agents.
¾ Promoting efficiency in the conduct of insurance business.¾ Regulating the investment of funds by insurance companies.
¾ Specifying the percentage of business to be written by insurers in rural sectors.
¾ Handling disputes between insurers and insurance intermediaries.
CO M PANY PROFILE
ABOUT H DFC S TANDARD LIF E INSURANCE
HDFC Standard Life Insurance Company Ltd. is one of India's leading
private Insurance companies, which offers a range of individual and
group insurance Solutions. It is a joint venture between Housing
Development Finance Corporation Limited (HDFC Ltd.), India's leading
housing finance institution and a Group Company of the Standard Life,
UK. HDFC as on December 31, 2007 holds 72.38
Percent of equity in the joint venture.
HDFC STANDARD LIFE INSURANCE PARENTAGE
HDFC Limited.
• HDFC is India leading housing finance institution and
has helped build more than 23, 00,000 houses since its
incorporation in 1977.
• In Financial Year 2003-04 its assets under management crossed
45
Rs.
36,000 Cr.
• As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores.
The depositor base now stands at around 1 million depositors.
• Rated AAA by CRISIL and ICRA for the 10th consecutive year
• Stable and experienced management
• High service standards
• Awarded The Economic Times Corporate Citizen of the
year Award for its long-standing commitment to
community development.
• Presented the Dream Home award for the best housing finance
Provider in 2004 at the third Annual Outlook Money Awards.
Standard Life Group (Standard Life plc and its subsi d i a ries)
• Standard Life Group (Standard Life plc and its subsidiaries)
• The Standard Life group has been looking after the
financial needs of customers for over 180 years
• It currently has a customer base of around 7 million
people who rely on the company for their insurance,
pension, investment, banking and health-care needs
• Its investment manager currently administers £125 billion in assets
• It is a leading pensions provider in the UK, and is rated by
46
Standard & Poor's as 'strong' with a rating of A+ and as
'good' with a rating of
A1 by Moody's
• Standard Life was awarded the 'Best Pension Provider' in
2004, 2005 and 2006 at the Money Marketing Awards, and
it was voted a 5 star life and pensions provider at the
Financial Adviser Service Awards
for the last 10 years running. The '5 Star’ accolade has
also been awarded to Standard Life Investments for the
last 10 years, and to Standard Life Bank since its
inception in 1998. Standard Life Bank was awarded the
'Best Flexible Mortgage Lender' at the Mortgage
Magazine Awards in 2006
KEY STRE NG
THS
1) FINANCIAL EXPERTISE
47
As a joint venture of financial services groups, hdfc standard
life has the financial expertise required to manage your long-term
investments safely and efficiently.
2) RANGE OF SOLUTIONS
We have a range of individual and group solutions, which can be
easily customised to specific needs. Our group solutions have been designed
to offer you complete flexibility combined with a low charging structure.
3) TRACK RECORD SO FAR
Our gross premium income, for the year ending March 31,
2008 stood at Rs.4,859 crores and new business premium income stood at
Rs. 2,685 crores. The company has covered over 9,59,000 lives year
ending March 31, 2008.
48
SWOT ANALYSIS OF HDFC-SLIC
STRENGHTS:
1.) Domestic image of HDFC supported by Standard Life’s
international image is the strength of the company.
2.) Strong and well spread network og qualified intermediaries and sales person.
3.) Strong capital and reserve base.
4.) The company provides customer service of the highest order.
5.) Huge basket of product range which are suitable for all age
and income groups.
6.) Large pool of technically skilled manpower with in depth
knowledge and understanding of the market.
7.) The company also provides innovative products to cater to
different needs of different customers.
WEAKNESS:
1.) Heavy management expenses and administrative costs.
2.) Low customer confidence on private players.
3.) Vertical hierarchical reporting structure with many designations
and cadres leading to power politics at all levels without any
exception.
4.) Poor retention percentage of tied up agents.
OPPORTUNITIES:
1.) Insurable population: According to IRDA only 10% of people are insured.
This suggests that more than 300m people, with the potential to buy
insurance, remain uninsured.
49
2.) There will be inflow of managerial and financial expertise from
the world’s leading insurance markets. Further the burden of
educating consumers will also be shared among many players.
3.) International companies will help in building world class
expertise in local market by introducing the best global
practices.
THREATS:
1.) Other private insurance companies also vying for the same
uninsured population.
2.) Competition from public sector insurance companies like LIC,
National Insurance Company Limited, Oriental Insurance
Limited, New India Assurance Company Limited and United
India Insurance Company Limited. People trust and go to them
more.
3.) Poaching of customer base by other companies.
4.) Most people don’t understand the need or are not willing to take
insurance
CORPORATE OBJECTIVES
Our Vision
'The most successful and admired life insurance company, which
means that we are the most trusted company, the easiest to deal with,
offer the best value for money, and set the standards in the industry'.
'The most obvious choice for all'.
Our Values
50
Values that we observe while we work
• Integrity
• Innovation
• Customer centric
• People Care One for all and all for ones
• Teamwork
• Joy and Simplicity
51
CHAPTER—IV
ANALYSIS & INTERPRETATION
52
TABLE 4.1: AGE GROUP OF RESPONDENTS
Age Group No. of respondent Percentage
Below 25 3 3
25 to 35 3 3
35 to 45 2 2
Sources: primary data collected through questionnaire
53
FIG-4.1: AGE GROUP OF RESPONDENTS
45
40
35
30
25
No. of respondents
20
15
10
5
0
below 25 25 to 35 35 to 45 45 and above
INTERPRETATION:
The above figure reveals that most of the people 32% are working in government and
29%are Business sector
54
Table 4.2: OCCUPATION OF THE RESPONDENTS
Working sector No. of respondent Percentage
Govt. 3 32
IT 1 16
Education 6 6
Finance 1 13
Business 2 29
Other 4 4
Total 10 100Sources: primary data collected through questionnaire
55
FIG - 4.2: OCCUPATION OF THE RESPONDENTS0
5
10
15
20
25
30
35
1st Qtr
govt
West
North
3-D Column 4
3-D Column 5
3-D Column 6
35
30
25
20
no. of respondents15
10
5
0
Govt IT Education Finance Business Other
INTERPRETATION:
The above figure reveals that most of the people 32% are working in government and
29%are Business sector
56
Table4.3:RESPONDENTSAWARENESSOFINVESTMENT OPTION
Awareness No. of respondent Percentage
Yes
33
33%
No
14
14%
Have some knowledge 53
53%
Total
100
100%
Sources: primary data collected through questionnaire
57
FIG - 4.3: RESPONDENTS AWARENESS OF
INVESTMENT OPTION
60
50
40
30 No.of Respondants
20
10
0
Yes No Have some Knowledge
INTERPRETATION:
This graph shows that only 33% of people are aware of the investment option
58
FIG - 4.3: RESPONDENTS AWARENESS OF
INVESTMENT OPTION
and 53% of people have some knowledge about it. But 14% of people are not
aware of the investment option available to them
59
Table 4.4:
POLICYRESPONDENTS HAVING ANINSURANCE
Response No .of respondents percentage
Yes
53
53%
No
47
47%
Total
100
100%
Sources: primary data collected through questionnaire
60
FIG - 4.4:
POLICYRESPONDENTS HAVING ANINSURANCE
54
53
52
51
50
49 no. of respondents
48
47
46
45
44
Yes No
61
FIG - 4.4:
POLICYRESPONDENTS HAVING ANINSURANCE
INTERPRETATION:
This graph shows that 47% of people not having an insurance policy and 53%
of people having an insurance policy.
62
Table4.5:RESPONDENTINTERESTOFINVESTINGOPTIONS
Need for investment Respondents percentage
Retirement 28
28%
Tax saving 21
21%
Earnings 33
33%
Liquidity 18
18%
Total
100
100%
Sources: primary data collected through questionnaire
63
FIG - 4.5: RESPONDENT INTEREST OF INVESTING
OPTIONS
35
30
25
20
No.of respondentas15
10
5
0
Retirement Tax Saving Earnings Liquidity
INTERPRETATION:
The figure shows 33% of people have insurance for future earnings and
64
FIG - 4.5: RESPONDENT INTEREST OF INVESTING
OPTIONS
28% are investing for Retirement.
65
Table 4.6: TERM OF INVESTMENT PREFERRED
Investment Method No .of respondents percentage
Short term 32
32%
Medium Term 22
22%
Long Term 46
46%
Total
100
100%
Sources: primary data collected through questionnaire
66
FIG - 4.6: TERM OF INVESTMENT PREFERRED
50
45
40
35
30
25 No. of respondants
20
15
10
5
0
Short Term MediumTerm Long Term
INTERPRETATION:
The above figure shows 46% of respondents prefer long term investment where as 32%
prefer medium term and only 22% prefer short term.
67
Table 4.7: PERCEPTION ABOUT INSURANCE
RESPONSENO. OF
RESPONDEN
TS
SHARE (%)
A saving tool 32
32%
A tax saving device 29
29%
A tool to protect
your family39
39%
Sources: primary data collected through questionnaire
68
FIG - 4.7: PERCEPTION ABOUT INSURANCE
INTERPRETATION
The above figure shows that 32% of the respondents have perception of Insurance
being a saving tool and 29% of the respondents have perception of Insurance being a
tax saving device.But 39% of the respondents are with the view that Insurance is a
69
tool to protect your family.
70
Table 4.8: KIND OF BUYING PROCESS PREFERRED
BUYING PROCESSNO. OF
RESPONDEN
TS
SHARE (%)
Customer approached
Insurance company/Agent
44
44%
Company/agent
approached
customer
56
56%
Total
100
100%
Sources: primary data collected through questionnaire
71
FIG - 4.8: KIND OF BUYING PROCESS PREFERRED
INTERPRETATION
• 44% of the respondents approached the Insurance Company / Agent.
• Whereas, 56% of the respondents were approached by the Company /Agent.72
Table 4.9: WHAT PEOPLE LOOK FOR IN INSURANCE COMPANY?
RESPONSENO. OF
RESPONDENTS
SHARE (%)
A trusted name 29
29%
Friendly service &
responsiveness
25
25%
Good plans 29
29%
Accessibility 17
17%
Sources: primary data collected through questionnaire
73
FIG - 4.9: WHAT PEOPLE LOOK FOR IN INSURANCE COMPANY?
INTERPRETATION
• 29% customers look for a Trusted name in a company for insurance.
• 29% customers look for a good plan in a company for insurance.
74
• Friendly service & responsiveness and Accessibility are also
important factors looked by customers in a company.
75
Table 4.10: FEATURES MADE YOU TO INVEST IN
HDFC STANDARD LIFE INSURANCE
FEATURE NO.OF RESPONDENTS
SHARE (%)
Money Back Guarantee 15
15
Larger Risk Coverance 37
37
Easy Access to Agents 7 7
Low Premium 30
30
Company’s Reputation 11
11
TOTAL
100
100
Sources: primary data collected through questionnaire
76
FIG - 4.10: FEATURES MADE YOU TO INVEST IN
HDFC STANDARD LIFE INSURANCE
INTERPRETATION:
ƒ Majority of the respondent (37%) found Larger risk coverance as the
most attracted feature of the all.
77
Table 4.11: RESPONDENT PERCEPTION TOWARDS THE
HDFC STANDARD LIFE INSURANCE COMPANY
Opinion
No .of respondents Percentage
Average
29
29%
Aggressive 21
21%
Excellent 14
14%
Professional 36
36%
Total
100
100%
Sources: primary data collected through questionnaire
78
FIG - 4.11: RESPONDENT PERCEPTION TOWARDS THE
HDFC STANDARD LIFE INSURANCE COMPANY
40
35
30
25
20 No of respondents
15
10
5
0
Average Aggressive Excellent professional
INTERPRETATION:
The above graph shows that 36% of Respondents believes the operations of
the company to be professional and 29% believe it is Average.
79
Table 4.12:SATISFACTIONOFTHERESPONDENTSWITH RESPECT TO POLICIES OFFERED.
RESPONSENO. OF
RESPONDEN
TS
SHARE (%)
Satisfied 60
60%
Not satisfied 40
40%
Not Responded 0 0%
Total
100
100%
Sources: primary data collected through questionnaire
80
FIG - 4.12: SATISFACTION OF THE RESPONDENTS
WITH RESPECT TO POLICIES OFFERED.
INTERPRETATION
• 60% of the respondents are more or less satisfied with their existing policy.
81
• 40% of the respondents are not satisfied with their existing policy.
• In this case all of those who have taken a policy have responded.
82
Table4.13-RESPONDENTSPREFERENCEFORCLARIFYING ANY QUERY
Services
No. of Respondents Percentage
Advisor
39
39%
company website 16
16%
customer care 28
28%
branch manager 17
17%
Total
100
100%
83
Table4.13-RESPONDENTSPREFERENCEFORCLARIFYING ANY QUERY
Sources: primary data collected through questionnaire
84
FIG - 4.13: RESPONDENTS PREFERENCE FOR
CLARIFYING ANY QUERY
45
40
35
30
25
20 No. of respondents
15
10
5
0
Advisor company website customer care branch manager
INTERPRETATION:
85
FIG - 4.13: RESPONDENTS PREFERENCE FOR
CLARIFYING ANY QUERY
The above graph shows that 39% people believes in Advisor, 28% of people
believes Customer care while company website and branch Manager People
clarify any query first respectively 16% and 17%
86
Table 4.14: BENEFITS OF INSURANCE PERCIEVED BY
RESPONDENTS
BENEFITSNO.OF
RESPONDEN
TS
SHARE (%)
Cover Future
Uncertainty55
55
Tax Deductions 20
20
Future Investment 25
25
TOTAL
100
100
Sources: primary data collected through questionnaire
87
FIG - 4.14: BENEFITS OF INSURANCE PERCIEVED BY
RESPONDENTS
INTERPRETATION
¾ 55% of the respondents believe that covering future uncertainty is the
88
FIG - 4.14: BENEFITS OF INSURANCE PERCIEVED BY
RESPONDENTS
biggest benefit of an insurance policy.
¾ Whereas, 20% and 25% of them believe that the other benefits are Tax deduction
and future investments respectively
89
Table 4.15: SATISFACTION OF CURRENT POLICY
Satisfaction level No. of Respondents Percentage
Yes 82 82%
No 18 18%
Total 100 100%
Sources: primary data collected through questionnaire
90
FIG - 4.15: SATISFACTION OF CURRENT POLICY
90 82
80
70
60
50
40
30
1820
10
0
No. of respondents
Yes No
INTERPRETATION:
The above figure shows that 82% of respondents are satisfied with their
current policy and only 18% of people are not happy with their policy.
91
CHAPTER –V
FINDINGS & SUGGESTIONS
92
93
5.1 F I NDIN
GS:
• It reveals that 39% of respondents belong to 25 to 35 age group
and 31% are belong to below 25 ages. ( Ref: Table 4.1)
• The survey shows that maximum 32% of the respondents are in
working govt. sector. ( Ref: Table 4.2)
• Out of 100respondents 33% of the respondents were well known about HDFCSL
investment option. ( Ref: Table 4.3)
• 53% of the people having a insurance policy. ( Ref: Table 4.4)
• 33% of respondents are indented to invest on their earning only. ( Ref: Table 4.5)
• 46% of respondents are preferred long term investment term in
HDFC-SLIC. ( Ref: Table 4.6)
• 56% of the respondents prefer the buying process of the
company/agent approaching the customer while 44% prefer vice-versa.
( Ref: Table 4.8)
• 36% of the respondents perception about HDFC-SLIC is professional, and 21%
has told that it is being aggressive and 14% are Excellent. ( Ref: Table 4.11)
• 60% of the respondents are satisfied with the policies offered in
HDFC-SLIC. ( Ref: Table 4.12)
• 39% of the respondents using Advisor service which the service offered by the
HDFC-SLIC. ( Ref: Table 4.13)
• 55% of the respondents perceive the benefits of insurance as a cover
for future uncertainity. ( Ref: Table 4.14)
94
• 82% of respondents are satisfied with current policy offered by HDFC-SLIC.
( Ref: Table 4.15)
95
5.2 SUGGEST
IONS:
In Coimbatore most of the people are working in Government and
Business sector and they don’t have much financial planning. Another
important point is they have good compensation package. So the company
should bring more innovative and should carry out more promotional
activities in government fields. Better promotion of unit linked plans can
generate more sales to the company.
HDFC STANDARD LIFE INSURANCE COMPANY’s unit linked
insurance plans can effectively meet the requirements of the customers,
because unit linked plans are directly related to the market, so the customers
can creates more wealth through fund and they can enjoy the tax benefit, and
also the insurance cover. The pressure on the sales team would be lessoned
by increasing the awareness among the people about the credibility of the
companies and need for capitalizing on the various insurance plans offered by
the private life insurance companies.
• As the awareness of insurance is less among the people, its
awareness should be creating among the people by conducting stage
shows and explaining its need and importance.
• Insurance should not be considered only as a risk cover element but
also as a long term investment
• It is also recommended to concentrate to on lower income group people.
• More efforts should be taken by the company’s financial consultants
to convert the leads into policy holder of HDFC-SLIC.
• Follow up should be taken and customer relation should be
maintained by the inviting the existing customers to the seminars
96
conducted when launching a new product or any changes are made to
the products or rules to retain them.
• Coming with new promotional activities like giving new
advertisements, keeping stalls, conducting seminars in companies,
and giving ads through SMS can be done by HDFC Standard
Life insurance Co. to create awareness among
customers.
97
CHAPTER – VI
CONCLUSION
98
99
CONCLUSION
Our exhaustive research in the field of Life Insurance threw up
some interesting trends which can be seen in the above analysis. A
general impression that we gathered during Data collection was the
immense awareness and knowledge among people about various
companies and their insurance products.
People are beginning to look beyond LIC for their insurance
needs and are willing to trust private players with their hard earned
money. People in general have been impressed by the marketing and
advertising campaigns of insurance companies. A high penetration of
print, radio and Television ad campaigns over the years is beginning
to have its impact now. Another heartening trend was in terms of
people viewing insurance as a tax saving and investment instrument as
much as a protective one. A very high number of respondents have
opted for insurance for such purposes and it shows how insurance
companies have been successful to attract public money in recent
times.
The general satisfaction levels among public with regards to
policy and agents still requires improvement. But therein lies the
opportunity for a relative new comer like HDFC Standard Life
Insurance Company Ltd. LIC has never been known for prompt
service or customer oriented methods and HDFC Standard Life can
build on these factors.
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BIBLIOGRAPHY
WEBSITES REFFERED:
www.irda.c o m www.hdfcinsurance . com www.insurance.ind.com
www . mon e youtlook.com
BOOKS & JOURNALS REFFERED:
Marketing Management- Philip kotler.
Research Methodology- C.R. Kothari.
IRDA Journal.
Outlook – The layman’s guide to insurance.
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ANNEXURE
QUESTIONNARE:
I am Anand.N, MBA second year student of SRM
University currently doing my project in HDFC Standard Life
Insurance Company. As a part of my study I am collecting
information of the existing customers to know the ‘CUSTOMER-
BUYING BEHAVIOUR IN LIFE INSURANCE HDFC BANK’. I
kindly request you to fill the following questionnaire.
(1) What is your name?
(2) Sex: [ ]Male [ ]Female
(3) Which age group do you belong to?
[ ] less than 25years, [ ] 25 to
35 tears, [ ] 35 to 45 years
[ ] above 45years
(4) Which sector are you working in?
[ ] Education [ ] Finance [ ] Business
[ ] Government [ ] IT [ ] others
(5) Are you aware of the all the Investment options
available? [ ] Yes [ ] No
[ ] Have some knowledge
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(6) Do have any insurance policy?
[ ] Yes [ ] No
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(7) Why do you want to invest in to insurance?
[ ] Retirement [ ] Tax saving
[ ] Earnings [ ] Liquidity
(8) Which term of investment preferred?
[ ] Short term [ ] Medium term [ ] Long term
(9) What is your perception about insurance?
[ ] A saving tool [ ] A tax saving device
[ ] A tool to protect your family
(10) What kind of buying process do you prefer?
[ ]Customer approached Insurance company/Agent
[ ] Company/agent approached customer
(11) What do you look for in an insurance company?
[ ] A trusted name [ ] Friendly service & responsiveness
[ ] Good plans [ ] Accessibility
(12) Which features made you to invest in HDFC Standard Life
Insurance? [ ] Money Back Guarantee [ ] Larger
Risk Coverance
[ ] Easy Access to Agents [ ] Low Premium
[ ] Company’s Reputation
(13) What is your opinion towards the services provided by HDFC Standard
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Life Insurance?
[ ] Average [ ] Aggressive
[ ] Excellent [ ] professional
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(14) Are you satisfied with the policies of the insurance
provider? [ ] Satisfied [ ]
Not satisfied
[ ] Not Responded
(15) If you want to clarify any query to whom you consult first?
[ ] advisor [ ] company website
[ ] customer care [ ] branch manager
(16)How do you perceive the benefits of insurance provided?
[ ] Cover Future Uncertainty [ ] Tax Deductions
[ ] Future Investment
(17) Are you satisfied with your
current policy? [ ] Yes
[ ] No
Any more information you would like to share regarding your perception about HDFC-SLIC.
THANK
YOU
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