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UNIVERSITY SCHOOL OF
BUSINESS STUDIES
It gives an immense pleasure to me to present this report, a written form of the practical
experience I have undergone.
The project on BUSINESS OPPURTUNITY IN LIFE INSURANCE would not
have seen the light of the day without the following people and their priceless support and
cooperation. Hence I extend my gratitude to all of them. I am greatly indebted to them for
taking great pains in guiding me.
I would like to thank HDFC STANDARD LIFE INSURANCE for giving me an
opportunity of learning and contributing through this project.
During the actual project work, Mr.BUTA SINGH (Channel Development Manger)
Project Guide, who set the ball rolling for my project. He has been a source of inspiration
through his constant guidance; personal interest; encouragement and help. I convey my sincere
thanks to him. In spite of his busy schedule he always found time to guide me through the
project. I am also grateful to him for reposing confidence in my abilities and giving me the
freedom to work on my project. Without his invaluable help I would not have been able to do
justice to the project.
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The project couldnt have been completed without timely and vital help of other office
staff. Special thanks to Mr.BUTA SINGH (Channel Development Manger) for his invaluable
guidance, keen interest, cooperation, inspiration, and of course moral support through my
project session.
TABLE OF CONTENTS
Introduction to Insurance ----------------------------------------------------------------4
Indian Insurance Industry----------------------------------------------------------------11
SWOT Analysis of Insurance industry-------------------------------------------------16
Company Profile ------------------------------------------------------------------------18
SWOT analysis of HDFC SL------------------------------------------------------------25
Potential of insurance Business in India -----------------------------------------------28
Research Design --------------------------------------------------------------------------43
Conclusion ---------------------------------------------------------------------------------64
Marketing Problem -----------------------------------------------------------------------66
Bibliography-------------------------------------------------------------------------------69
Questionnaire------------------------------------------------------------------------------70
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INSURANCE
Life is a roller coaster ride and is full of twists and turns. You cannot take anything for granted
in life. Insurance policies are a safeguard against the uncertainties of life.
Insurance is a promise of reimbursement in the case of loss; paid to people or companies so
concerned about hazards that they have made prepayments to an insurance company. It is
basically a contract that provides compensation for specific losses in exchange for a periodic
payment
An insurance contract or policy will set out in detail the exact circumstances under which a
benefit payment will be made and the amount of the premiums.
Insurance is system by which the losses suffered by a few are spread over many, exposed to
similar risks. Insurance is a protection against financial loss arising on the happening of an
unexpected event. Insurance policy helps in not only mitigating risks but also provides a
financial cushion against adverse financial burdens suffered.
Insurance policies cover the risk of life as well as other assets and valuables such as home,
automobiles, jewelry et al. On the basis of the risk they cover, insurance policies can be
classified into two categories:
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Life Insurance
Life is very fragile and death is a certainty. We cannot control the uncertainties of life. But, we
can cover the risks surrounding us. Life insurance, simply put, is the cover for the risks that we
run during our lives. It protects us from the contingencies that could affect us.
Life insurance is not for the person who passes away, it for those who survive. It is the
responsibility of every bread earner to guard against the events that could affect the family in
the unfortunate circumstance of his / her demise. Thus, having a life insurance policy is very
vital. Before going for a life insurance policy it is imperative that you know about various
types of life insurance policies. Major among them are:
Endowment Policy
Money-back Policy
Endowment Policy
An endowment policy covers risk for a specified period, at the end of which the sum assured is
paid back to the policyholder, along with the bonus accumulated during the term of the policy.
An endowment life insurance policy is designed primarily to provide a living benefit and only
secondarily to provide life insurance protection. Therefore, it is more of an investment than a
whole life policy.
Endowment life insurance pays the face value of the policy either at the insured's death or at a
certain age or after a number of years of premium payment. Endowment policy is an
instrument of accumulating capital for a specific purpose and protecting this savings program
against the saver's premature death.
Group Insurance
Group insurance offers life insurance protection under group policies to various groups such as
employers-employees, professionals, co-operatives, weaker sections of society, etc. It also
provides insurance coverage for people in certain approved occupations at the lowest possible
premium cost.
Group insurance plans have low premiums. Such plans are particularly beneficial to those for
whom other regular policies are a costlier proposition. Group insurance plans extend cover to
large segments of the population including those who cannot afford individual insurance.
A number of group insurance schemes have been designed for various groups. These include
employer-employee groups, associations of professionals (such as doctors, lawyers, chartered
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accountants etc.), and members of cooperative banks, welfare funds, credit societies and
weaker sections of society.
Pension Plan
A pension plan or an annuity is an investment that is made either in a single lump sum payment
or through installments paid over a certain number of years, in return for a specific sum that is
received every year, every half-year or every month, either for life or for a fixed number of
years.
Annuities differ from all the other forms of life insurance in that an annuity does not provide
any life insurance cover but, instead, offers a guaranteed income either for life or a certain
period.
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Typically annuities are bought to generate income during one's retired life, which is why they
are also called pension plans. By buying an annuity or a pension plan the annuitant receives
guaranteed income throughout his life. He also receives lump sum benefits for the annuitant's
estate in addition to the payments during the annuitant's lifetime.
Life protection
Flexibility
Investment Options
Transparency
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Disability
Critical Illness
Surgeries
Liquidity
Tax planning
General Insurance
General Insurance provides much-needed protection against unforeseen events such as
accidents, illness, fire, burglary et al. Unlike Life Insurance, General Insurance is not meant to
offer returns but is a protection against contingencies. Almost everything that has a financial
value in life and has a probability of getting lost, stolen or damaged can be covered through
General Insurance policy.
Property (both movable and immovable), vehicle, cash, household goods, health, dishonesty
and also one's liability towards others can be covered under general insurance policy. Under
certain Acts of Parliament, some types of insurance like Motor Insurance and Public Liability
Insurance have been made compulsory.
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insurance is on a growth path. The percentage of premium income to GDP which was just
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2.3% in 2000-01 rose to 3.3% in 2002-03; and life insurance has emerged as the dominant
contributor to this growth.
The industry presented a huge opportunity. Life insurance penetration, for instance, was at an
abysmal 22% of the insurable population. However, private players have had to rise to many
challenges. They were faced with attitudinal barriers towards the category and the perception
that insurance was only a tax saving tool. Insurance had lost it basic rationale: protection. It
wasnt surprising then that its potential lay frozen and unexploited. The challenge for private
insurance players was to change the established category driver and get customers to evaluate
life insurance as an investment-cum-protection tool.
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1912 The Indian life assurance companies act enacted to regulate the life insurance business.
1938 The insurance act, which forms the basis for most current insurance laws, replaces earlier
act.
1956 Life insurance nationalized, government takes over 245 Indian and foreign insurers and
provident societies.
1956 Government sets up LIC
1972 Non life insurance nationalized, GIC set up.
1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up to draw up a
blue print for insurance sector reforms.
1994 Malhotra Committee recommends re-entry of private players, autonomy to PSU insurers.
1997 Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up.
2000 IRDA starts giving licensed to private insurers
2002 Banks were allowed to sell insurance plans, as TPAs enter the scene, insurers start settling
non-life claims in the cashless mode.
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INDUSTRY REFORMS
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament
in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private sector
insurance companies. Since being set up as an independent statutory body the IRDA has put in
a framework of globally compatible regulations.
The other decision taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the launch of the IRDA online service
for issue and renewal of licenses to agents. The approval of institutions for imparting training
to agents has also ensured that the insurance companies would have a trained workforce of
insurance agents in place to sell their products.
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Weakness
Lack of trust among public in private sector.
No Guaranteed return.
Absence of well informed, educated selling by financial intermediaries.
Limited knowledge based differential. Distributors typically tend to sellwhat
sellsand not whats good or what is required
Wrong attitude of intermediaries, they market with the short term objectives.
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Opportunities
Lot of scope for progress as this sector of business is still in its infancy stage.
Increasing purchasing power
Increased standard of living
Can target specific niches, which are poorly served or are not served at all.
Can introduce innovative products offering a right mix of flexibilities/risk/return
depending on the appetite of the customer
Growing Corporate India
Has not still reached the interiors of rural India.
So, Huge untapped market in rural areas.
Focus on professional services segment.
Tax free returns.
Rising stock market which promotes the interest of people in unit linked plans.
Threats
Increased competition with upcoming of new insurance companies.
Availability of other saving instruments like Fixed Deposits, Recurring Deposits.
Availability of other investment instruments such as gold, real estate, equity share etc
Absence of need based selling. Investment options are today sold as products &
not as solutions.
Rising rates of returns on Fixed Deposits which are as high as 10.5%.
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As a cost cutting measure, corporate have started reducing premium in Group insurance
plans.
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households. Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since
emerged as the largest residential mortgage finance institution in the country. The corporation
has had a series of share issues raising its capital to Rs. 120 crores. The net worth of the
corporation is Rs. 28,000 crores.
SUBSIDIARY COMPANIES
HDFC Standard Life 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, Europes
largest mutual life assurance company (UK). HDFC as on March 31, 2007 holds 81.9 per cent
of equity in the joint venture.
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period to 30 September 2006 are based on a weighted average holding of 17.7% (9 months to
30 September 2005: 26.0%). Sales for HDFC Standard Life Insurance Company Limited
increased 54%9 to 99m (2005: 65m) of which Standard Life's share was 17m (2005: 17m).
VISION
The most successful and admired life insurance company, which
mean 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.
In short , "The most obvious choice for all".
Core Values
Values that we observe while we work:
Integrity
Innovation
Customer Centric
Team work
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, HDFC Standard Life is now the Companys second largest overseas venture by
customer numbers. It is also the second largest private insurer in India when measured
by customer numbers.
HDFC Standard Life Insurance covers over 693 cities and towns through its offices in
India.
HDFC Standard Life Insurance also has 833 corporate agents and other sales
intermediaries including banks for distribution of insurance products.
HDFC SL has more than 276 branches, serving over 693 locations across the country
The company currently has 21 retail and 6 group products in its portfolio.
Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company'
in 2004
Rated as the "Best New Insurer - 2003" by Outlook Money magazine, Indias number 1
personal finance magazine
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Branches
Agents
80,000
74,000
70,000
60,000
50,000
23,620
10,500
49
Mar 03
283
33,288
40,000
30,000
18,296
104
169
20,000
10,000
53
0
Mar 04
Mar 05
Mar 06
Mar-07
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SWOT Analysis
Our key strengths
HDFC
Brand strength
Reputation
Customer base
Market innovator
Local knowledge
Financial expertise
As a joint venture of leading financial services groups, HDFC Standard Life has the financial
expertise required to manage your long-term investments safely and efficiently. It has strong
capital and reserve base.
Range of Solutions
We have a range of individual and group solutions, which can be easily customized to specific
needs. Our group solutions have been designed to offer you complete flexibility combined with
a low charging structure.
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WEAKNESS
Upfront allocation charges on the slightly higher side than its rivals, say Bajaj Allianz
Though adequate talents are available and are well spread throughout the organization
enough opportunities are not provided to utilize them in the right direction.
OPPORTUNITIES
HDFC Standard Life Insurance can leverage upon setting up Global branches as lot of
Indian going abroad
Huge market is literally untapped. Out of estimated 320 million insurable markets only
25% of the population is insured.
Pension plans are great aspects which need to be covered because of increased number
of people working in private sector who want a financially secure life after retirement.
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Children education plans are every parents priority as cost of education is increasing at
a high pace.
THREATS
The company is competing with the State owned big giant like LIC of India.
The company is also facing some threat from existing private players in the industry.
Entry of many other private companies with equal experience of Indian market and
strong financial base of foreign partners are making the competition difficult and
saturating the urban markets.
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Insurance potential
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The life insurance industry in India grew impressive and premium income earned
during the
Insurer
HDFC SLI
LIC
ICICI Prudential
Bajaj Allianz
Max New York
No. of Agents
74,000
5,60,000
2,34,000
2,13,000
26,000
No. of Branches
276
2050
589
900
172
o. of Agents
Number Of Branches
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Talwandi Sabo is situated nearly 130 km south east of Chandigarh, the capital city of Punjab.
Besides being an important industrial town of Punjab.
Demographics
Talwandi Sabo had a population of around 1.75 lakh people. In which Males constitute 60% of
the population and females 40%. Talwandi Sabo has an average literacy rate of60%, higher
than the national average of 55.5%: male literacy is 78%, and female literacy is 70%. In
Talwandi Sabo, 15% of the population is under 6 years of age.
Talwandi Sabo is situated on the National Highway No. 64 which has been stretched from
Abhor to Chandigrah . Talwandi Sabo is surrounded by a number of villages. Some of these are
phul town, mandi kalan , mehraj , gill kalan, lehra dhurkot etc.
It is connected to many big cities such as Bathinda ,Barnala, Maur Mandi Chandigarh.
It also has one of the largest Mandi (grain market).More than 75% of working population
belongs to Business Class.
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At present there are 5 Life Insurance Companies Operating In Talwandi Sabo. All these
companies
together done the business of more than Rs 40cr. Except this there are more than 10 banks
selling life insurance in Talwandi Sabo. Some of them are SBI, ICICI, PNB,etc.
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Bajaj Allianz
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Bajaj Allianz Life provides life insurance services to customers in India. The company is a
joint venture between Allianz and motorcycle maker Bajaj Auto.
Bajaj Allianz Life Insurance has already has a customer base of close to 3.5 million customers.
Currently Bajaj Allianz has a product portfolio of 31 products and more need-based products
are in the pipeline.
It has one of the Largest distribution network to reach the customers across the country with
2,13,000 agents, 900 offices in 840 towns, 200 corporate agents & Bancassurance partners
Bajaj Allianz Life Insurance issued over 2 million (20,78,933) policies in this year highest
amongst all pvt. sector players, taking the number 1 position.
Bajaj Allianz is the first private insurance company in Talwandi Sabo. It was set up in
July,2005. It has network of 170 agents. Business done in last financial year is Rs 1.80cr.
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S.N
o
No. of
Insurer
1 LIC
ICICI
Set Up In
1972
Agents
2007)
1.50cr (Aug, 2006- June
520
2 Prudential
Aug,2006
2007)
50lakh (April 2006-
400
Oct,2004
March 2007)
1.50cr (April 2006-
60
4 Bajaj Allianz
HDFC
July,2004
March 2007)
5 Standard Life
Jan,2007
170
75
Analysis
The above chart shows the premium earned by the insurer companies for last 6 months. LIC
capture the largest market share in terms of premium. ICICI
Talwandi Sabo has earned the premium which is second largest amount with respect to private
players. Whereas Bajaj Allianz is next to LIC and leading private player in terms of premium
earned.
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Insurance Policy
done
SBI
Kotak
SBI Life
25 lakh
mahindra
OM Kotak
3.3 cr
HDFC
HDFC SL
5.20cr
ICICI
ICICI Prudential
30 lakh
CBOP
Aviva Life
1.20 cr
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INTRODUCTION
A Research Design is the framework or plan for a study which is used as a guide in collecting
and analyzing the data collected. It is the blue print that is followed in completing the study.
The basic objective of research cannot be attained without a proper research design. It specifies
the methods and procedures for acquiring the information needed to conduct the research
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effectively. It is the overall operational pattern of the project that stipulates what information
needs to be collected, from which sources and by what methods.
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increase its sale at Talwandi Sabo. It tells the problem faced in marketing of products and
suggestions to overcome the problem.
RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific
topic.
The word research has been derived from French word Researcher means to search.
FRANCIES RUMMER defined Research: It is a careful inquiry or examination to
discover new information or relationship and to expand or verify existing knowledge.
Research is the solution of the problem, whether created or already generated.
PROJECT DEFINITION
Life insurance is designed to protect you and your family against financial uncertainties that
may result due to unfortunate demise or illness. You can also view it as a comprehensive
financial instrument as a part of your financial planning offering you savings & investment
facilities along with cover against financial loss. By choosing the right policy as per your needs
i.e. customized solutions, you will be able to plan for a secure future for yourself and your
loved ones. This project is an attempt to study the Potential of insurance business in
Talwandi Sabo.
RESEARCH DESIGN
Research Design is the conceptual structure within which research is conducted. It constitutes
the blueprint for collection, measurement and analysis of data. The design used for carrying out
this research is Descriptive.
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Sources of Data
Both primary and secondary source of data has been used to collect information.
Primary data was collected from agents and other designated officers such as unit
managers, etc. The data explained about the business done by insurance companies and
other alternate channels in last year at Talwandi Sabo. Questionnaire was prepared to
study the scope for insurance business at Talwandi Sabo and awareness among the
people about new private insurance companies operating in Talwandi Sabo.
(Questionnaire is attached as annexure and interpretation is given).
Secondary data was collected by making extensive use of the internet. The data was
also collected from various newspapers, journals, publications and magazines, annual
report etc.
ii.
SAMPLING
Sampling refers to the method of selecting a sample from a given universe with a view to draw
conclusions about that universe. A sample is a representative of the universe selected for study.
Convenience sampling is used in exploratory research where the researcher is interested in
getting an inexpensive approximation of the truth. As the name implies, the sample is selected
because they are convenient. This non probability method is often used during preliminary
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research efforts to get a gross estimate of the results, without incurring the cost or time required
to select a random sample.
SAMPLE SIZE
The sample size for the survey conducted was 100 respondents.
SAMPLING TECHNIQUE
Convenience sampling technique was used in the survey conducted.
ANALYSIS AND INTERPRETATION:
Data collection through questionnaire and personnel interview resulted in availability
of the desired information but these were useless until there were analyzed. Various
steps required for this purpose were editing, coding and tabulating. Tabulating refers to
bringing together similar data and compiling them in an accurate and meaningful
manner. The data collected by questionnaire was analyzed, interpreted with the help of
table, bar graph and pie chart.
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MARKETING PROBLEMS
The old and out dated technique of tele marketing is used to prospect customers. More modern
techniques must be adopted. The company must sponsor shows and give presentations in
corporate houses. The financial health check must be performed for every prospect to assess
his/her true financial position and needs. Some of the advisors skip this vital step and the
prospect ends up with a plan they do not appreciate and soon surrender or discontinue.
Some of the main problems in marketing the policies are:
Large amount of competition (15 players in the market)
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No. of respondents
11
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25-35yr
24
35-45yr
30
Above 45yr
35
35
15
No.of respondents
30
24
10
5
0
11
18-25yr
25-35yr
Interpretation
From the chart given above we can clearly see that 40% respondents say that maximum
number of agents belongs to age group of above 45year and 35% respondents feel maximum
number of agents lie between age group of 35-45yr whereas minimum number form the age
group between 18-25years.
AWARENESS AMONG PEOPLE ABOUT PRIVATE INSURANCE COMPANIES
OPERATING IN BATHINDA
AWARENESS
No. of Respondents
Yes
71
No
29
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Interpretation
71% of respondents say that people of Talwandi Sabo are aware of all the private insurance
players working in Talwandi Sabo. But still 29% respondents are against it.
Awareness among people about private insurance companies is not there. So its a grand
opportunity to tape the attention of those unaware people.
Similar is the case in Talwandi Sabo, HDFC SL can target those unaware people to increase
sale.
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LIC
HDFC
SLI
Bajaj
Allianz
ICICI
Prudential
Max
New
York
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INVESTMENT
No. of respondents
Bank deposits
40
Mutual Funds
Insurance Plans
12
P.O Deposits
37
Do not invest
If other, specify
Interpretation
Maximum people invest in either banks or post offices; as these people feel banks and P.O
deposits to be the safest one. They prefer security than increase of wealth. Only 8% invest in
mutual funds and 12% of respondents say that people preferred insurance for investment.
This low rate of investment in insurance sector is basically misperception, lack of awareness
and lack of proper information about the insurance among the people.
PEOPLE TAKE LIFE INSURANCE AS
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Life insurance as
No. of respondents
55
28
17
Interpretation
As the chart shows, 55% respondents are of the view that general public take insurance as tax
saving plan. 28% are of view that people purchase insurance because it provides savings with
good returns and 17% take it as financial security for family.
New plans which provide all the above benefits such as ULIP can help in changing perception
of people from tax saving scheme to a good investment opportunity, which provide the benefit
of risk cover, tax saving and investment.
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Plans
No. of respondents
71
Childern Plan
16
Pension Plan
Term Plan
7% 2%
16%
4%
Child Plan
Pension Plan
71%
Term Plan
Interpretation
80% respondents are of the view that ULIP plans are more demanded by people because it
provides tax benefits, risk coverage as well as good return. Least popular among them are
Pension plan, Whole life plan and Term plan. These hold 5%, 2%, 1% respectively of the total
demand. Rest of the 12% say that maximum plan in demand is Children Plan.
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Segments
100% equity
100% debt
Both debt and equity
Respondents view
48
8
44
Interpretation
48% of respondents are of view that people prefer 100% equity segment while investing in
ULIP plans because they want to earn more profits in less time. On the other hand, only 8% of
respondents are of view that people refer 100% debt investment. Such category includes retired
and old people and people with conservative nature. Where as 44% of respondents feel that
people prefer to invest in the segment of both debt and equity as these are balanced people who
prefer both security and profit.
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40
32
No. of respondents
32
35
23
10
35
23
30
20
10
10
No. of respondents
0
Rs 10,000
Rs 25,000
-25,000
Rs 50,000
- 50,000
- 1,00,000
Rs
1,00,000
and above
Interpretation
From the chart above we find that, 35% of the respondents are of the view that annual premium
of Rs 10,000 -25,000 are more preferred by people. 38% respondents give maximum
weightage to premium amount between Rs 25,000 -50,000 whereas 30% and 10% respondents
feel Rs 50,000-1,00,000 and above 1,00,000 are more preferred premium amounts.
Hence we can safely say that HDFC Life insurance would be able to capture the market better
if it introduced products/plans where the annual premium should be between
Rs. 10,000 50,000 p.a.
No. of respondents
20
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Rs 10cr - 30cr
Rs 30cr - 35cr
Rs 35cr and above
35
35
10
Interpretation
20% of respondents feel that in next financial year the insurance industry will do the business
between Rs 1-10 cr, 35% say Rs 10-30 cr, 35% feel amount of Rs 30-35 cr as premium income
will be earned by insurance sector, whereas only 10% are in favour of earning more than Rs 35
cr in next financial year.
No. of respondents
82
10
5
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100
90
80
70
60
50
40
30
20
10
0
82
No. of respondents
10
Interpretation
100% respondents say that an average agent does the business less than Rs 10 lakh in an year.
Only 10% does the business between Rs 10-20 lakh and 5% between Rs 20-30 lakh and 3%
above Rs 30 lakh.
So, it can be interpreted that the business can be increased to a greater extent only by
increasing number of agents.
Thus it can be said agents are main source of insurance business.
No. of respondents
65
18
8
5
4
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Interpretation
65% of respondents say that number of policies that can be easily sold is below 20. 18% say
that 20-40 policies can be easily sold whereas 8% and 5% respondents feel that minimum
number of policies which can be easily sold is between 40-60 and 60-80 respectively. Only 4%
respondents feel that minimum policies which can be easily sold is above 80.
No. of Respondents
35
20
25
10
5
5
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Interpretation
Above chart shows that maximum number of policies is sold to Service class. Though most of
the population of Talwandi Sabo belongs to business class but only 20% of respondents say
that max. policies are sold to this class. Business class people can increased by providing
proper information about ULIP plan which covers investment, risk coverage as well as tax
benefits.
Talwandi Sabo is surrounded by number of villages but still only 25% respondents say that
agriculturist contribute maximum to our policies. There is a lot of opportunity in villages as
those people have enough money to invest but they are not aware about insurance. Therefore
proper awareness, knowledge and good advisor can easily tape the opportunity.
Only 10% respondents say that category to which max. policies are sold is retired people.
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No. of Respondents
10
Advertisements
Family Responsibility
Agents/advisors
76
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Interpretation
76% 0f respondents say that most motivating factor that influences people to buy insurance
plan is advice from agents. It is very clear from diagram that agents are backbone of insurance
industry.
Only 10% respondents say that high returns motivate max. to people whereas 14% respondents
feel that advertisements, family responsibility, friends and relatives advice motivate most of the
people to purchase insurance plan.
No. of Respondents
36
25
24
10
5
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Interpretation
36% of respondents say that sale of insurance can be increased through alternate channels such
as bank; corporate agencies etc. 25% respondents feel it can be increased by increasing
awareness among people of Talwandi Sabo as local people are not fully aware about all insurer
companies and their schemes. So, its an opportunity for HDFC SL to target those unaware
people and increase its sale.
No. of Respondents
7
28
43
22
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Interpretation
43% respondents say that the main disadvantage of insurance plans is high charges.
22% feel poor aftersale services, 28% say fixed term and 7% say lapsation are the main
disadvantage in insurance plans.
Charges can be reduced and aftersale services can be improved to remove its disadvantage.
FINDING
Maximum number of insurance agents belongs to age group of above 45yr. It is good
for insurance industry as the people above 45yr of age are more responsible and sincere
and thus there turnover is low.
There is lack of awareness among people about private insurance companies. And still
people prefer LIC as compared to other pvt. insurer companies.
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Today also people preferred to invest in Banks and P.O Deposits as they prefer certain
returns with less profit. But as the perception of people are changing, people started
investing in insurance sector also (specially in ULIP plans).
Maximum people take insurance as tax saving plan but now insurance provide other
benefits also as Financial security, risk coverage and good returns.
Maximum plan which is more in demand is Unit Link Insurance Plan as because it
provides all benefits as risk coverage, financial security, tax saving etc. and people
which want to earn more in less time prefer the segment of 100% equity.
Maximum numbers of policies are sold to Service class people and Percent of Business
class people is comparatively low.
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premiums were projected to grow at around 18% to 20% from 23US$ billion in 2005 to
239US$ billion by 2020. Insurance business share in the market can be increased by:_ Win through exceeding customer expectations - 'Under promise and over deliver should be
the motto.
_ Win through product innovation and continuous product improvement.
_ Win through better and speedy service and problem solving.
_ Win through competitive pricing but do not sacrifice on value added
service.
_ Win through adaptation and customization.
_ Win through entering niche markets.
_ Win through market share - the three I's - Institutions, Instruments and
Intermediaries are going to be relevant.
Company will be required to not only do better at all times; it will also need
a strong and robust strategy which would be operationally more effective then that of their
competitors.
In today's marketing scenario in insurance, we need to move from selling insurance to
marketing an essential financial product.
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The study was limited only to the city of Talwandi Sabo only.
The study was conducted only for a short period of time.
The study is based on the assumption that information provided by the respondents is true.
Lack of financial resources.
Conclusion
The Insurance sector, after the opening up, provides greater opportunities. Several global
players have emerged and the market has changed significantly. In the changed scenario, the
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expectation is that the low Insurance premium as a percentage of GDP prevailing in India will
improve and will offer better opportunities to the insurance players.
Some of the findings of research are:Maximum number of insurance agents belongs to age group of above 45yr. It is good for
insurance industry as the people above 45yr of age are more responsible and sincere and
thus there turnover is low.
There is lack of awareness among people about private insurance companies. And still
people prefer LIC as compared to other pvt. insurer companies.
Today also people preferred to invest in Banks and P.O Deposits as they prefer certain
returns with less profit. But as the perception of people are changing, people started
investing in insurance sector also (specially in ULIP plans).
Maximum people take insurance as tax saving plan but now insurance provide other
benefits also as Financial security, risk coverage and good returns.
Maximum plan which is more in demand is Unit Link Insurance Plan as because it provides
all benefits as risk coverage, financial security, tax saving etc. and people which want to
earn more in less time prefer the segment of 100% equity.
Average amount of premium which is generally invested by people is between
Rs
25,000-Rs 50,000. So, such plans should be introduced whose annual premium should be
between Rs25,000-30,000.
Maximum numbers of policies are sold to Service class people and Percent of Business
class people is comparatively low.
Agents are most motivating factor who convinces the people to purchase the insurance
plan. So, more agents mean more sales.
People feel high charges as disadvantage of insurance. So, steps should be taken to remove
such disadvantages as far as possible.
BIBLIOGRAPHY
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BOOKS:
1.
2.
Marketing research
(Naresh Malhotra)
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Questionnaire
A SURVEY ON
POTENTIAL OF INSURANCE BUSINESS
QUESTIONNAIRE FOR AGENTS AND OTHER INSURANCE OFFICERS
(I EXPECT A FAIR RESPONSE FROM YOU)
o 35yr to 45yr
o 25yr to 35yr
o above 45yr
2. Are people aware of all private insurance companies operating in Talwandi Sabo?
o Yes
o No
o LIC
o Bajaj Allianz
o HDFC SLI
4. In which of the following do the people invest?
o
Bank Deposits
Mutual Funds
Do not invest
Insurance Plans
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o ension plans
o Term Plan
o Child plans
7. While investing in ULIP, which segment of investment fund do people prefer to
invest?
o 100% equity
o 100% debt
o Both debt and equity
o Rs 50,000.-1,00,000
o Rs 25,000 - 50000
o Above Rs 1,00,000
9. What is the expected total insurance business that can be done in Talwandi
Sabo in next year?
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Rs 1cr to 10 cr
Rs 30cr to 35 cr
Rs 10cr to 30cr
Rs 35 cr and above
o 80 to 100
o 40 to 60
o Above 100
o 60 to 80
12. Maximum numbers of policies are sold to which categories of people in Talwandi
Sabo?
o Service class
o Retired people
o Business class
o Housewives
o Agriculturist
o Others
14. How the sale of policies (insurance business) at Talwandi Sabo can be increased?
o Alternate channels
o Awareness campaigns
o Launching innovative
products
o Promos
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o High charges
o Fixed term
Personal Details:
Name:
Gender:
o Male
o Female
Age group:
o 18 25 years
o 50 60 years
o 26 35 years
o Above 60 years
o 36 49 years
Profile of respondent:
o Agent
o Sales manager
o Other designation, specify____________________
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