Академический Документы
Профессиональный Документы
Культура Документы
Deepak Sharma
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List of Tables
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List of Illustrations/Diagrams
3
Chapter 1:
Introduction
Executive Summary
Objective
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Executive Summary
Channel partners are those who are going to be into direct selling
of company’s products i.e. the insurance policies. They are the link
between the customers and the management or company. These
channel partners are people with different profiles. They are
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selected on some grounds like their network of people, their
problem handling ability, convincing power and lot many things.
Objective:
The main objective of the present study of is accomplishing the
following objective.
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Proper understanding and analysis of life insurance
industry.
To know about brand awareness of Kotak Life
Insurance and customer’s preference about Kotak Life
Insurance.
Conduct market survey on a sample selected from the
entire population and derived opinion on that research.
According the market survey come know about how
much potential of insurance market in our city.
And base on analysis of the result thus obtained make a
report on that research.
Training aims at recruiting maximum number of Life
Advisors and to Sell the maximum policies for the
company and bring the business for the company which
ever is going at the particular point of time.
Along with it I will be gaining the thorough knowledge
of insurance sector. This will give me in more
confidence in marketing products given to me.
As the Kotak Life Insurance well reputed company in
India it’s great chance for me to observed different
products launch by other competitor companies like
ICICI prudential, Bajaj alliance ,LIC, Max New York
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life etc. In all, it is to understand the overall working of
the Life insurance sector.
The objective behind the project is as follows:
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Chapter: 2
Company profile
Management
Areas of Business
Products
COMPANY PROFILE
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Stock broking businesses in the UK. Kotak Group was established
in 1985.Kotak Mahindra Bank is the parent company of the group.
Kotak Group entered into the life insurance business in 2001.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture
between Kotak Mahindra Bank Ltd. (76%) and Old Mutual plc.
(24%) Old Mutual plc.Is a world-Class international financial
services company. It was established in South Africa before 160
years.
In the USA, OLD MUTUAL is one of the top ten fixed annuity
businesses offering an array of specialist asset management skills
through its 23 asset management businesses. The company’s US
Life business recorded sales of $4 billion at the end of 2002.
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The OLD MUTUAL Group has the ability to cater for a variety of
consumer segments and offers a comprehensive and innovative
range of products for all income groups.
Mission:
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“At Kotak Life Insurance, we aim to help customers take important
financial decisions at every stage in life by offering them a wide
range Of innovative life insurance products, to make them
financially independent.”
MANAGEMENT
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responsibility and juggled multiple tasks effectively. His
cumulative experience, primarily in financial services, stands at
over 21 years, several of those in building the retail finance
business. At Kotak Life Insurance, Mr. Shah will focus on
developing new lines of businesses and leveraging the
company's existing competencies and network to steer Kotak
Life Insurance on its ongoing growth path with even greater
thrust. Mr. Shah has a commendable expertise in managing a
large number of employees.
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Mr. Murlidhar is a Chief Financial Officer and
Company Secretary of Kotak Life Insurance. Mr.
Murlidhar is an associate member of the Institute of
Chartered Accountants of India, an associate member of
the Institute Of Company Secretaries of India, and
graduate member of the Institute of Cost & Works
Accountants of India. Mr. Murlidhar possesses over 20-
year work experience and has earlier worked with
National Dairy Development Board (NDDB), MDS
Switchgear Limited and Nicholas Piramal India Limited
and Ion Exchange Ltd. Prior to Kotak Life Insurance;
he held the position of VP-Finance at Gujarat Glass
Ltd.
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Mr. Nandip Vaidya is the Vice President - Sales at Kotak Life
Insurance. Mr. Vaidya holds a B.Tech (Mechanical) degree from
IIT Mumbai and has also completed his Post Graduate Diploma in
Business Management from IIM-Ahmedabad.
AREAS OF BUSINESS
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Kotak Mahindra one of India's leading financial institutions was
born in 1985 as Kotak Capital Management Finance Limited. This
company was promoted by Mr. Uday Kotak, Mr. Sidney A. A.
Pinto and Kotak & Company. Industrialists Mr. Harish Mahindra
and Mr. Anand Mahindra took a stake in 1986, and that's when the
company changed its name to Kotak Mahindra Finance Limited.
The group has a net worth of around Rs.2,000 crore and employs
around 6,000 employees across its various businesses servicing around
one million four hundred thousand customer accounts through a
distribution network of branches, franchisees, representative offices
and satellite offices across 216 cities and towns in India and offices in
New York, London, Dubai and Mauritius.
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Kotak Mahindra Prime Ltd.
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Kotak Investment Banking* (KIB) is India's premier Investment
Bank
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Kotak Investment Bank today well positioned in an increasing
globalize environment to provide full service to its clients based
either in India or overseas.
International Subsidiaries
Kotak Securities
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Kotak Securities Ltd., subsidiary of Kotak Mahindra Bank Ltd., is
one of India’s largest brokerage and distribution house. Over the
years Kotak Securities has been one of the leading investment
service providers catering to the needs of various investor
categories both institutional and non-institutional.
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Under the Portfolio Investment Scheme offered by the Company,
the funds of the investors are managed by a highly competent team
comprising of Equity Strategist, a Portfolio Manager and a team of
equity, technical and derivatives analysts.
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• 250000 life advisors.
• 100000 employees of very good quality.
• Ranks 2nd in terms of average premium per
policy.
• Ranks 4th in total advertising awareness.
• First year premium income:
2004-05: 124 Crores
2005-06: 375 Crores
2006-07: 724 Crores
2007-08: 1075 Crores
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Old Mutual was established more than 150 years ago. Old
mutual plc. is a world-class international financial service
company. It owns the largest companies in the following areas in
South Africa. They are:
1. Life Insurance Company
2. Asset Management Company
3. Bank
4. Non-life insurance company
It has been developed into an International financial services group
whose activities are focused on asset gathering and asset
management. The Old Mutual Group offers a diverse range of
financial services in three principal geographies: South Africa, the
United States and the United Kingdom. The company is listed on
the London Stock Exchange with a market capitalization of
approximately $6 billion and is a member of the elite FTSE 100
index. In the 2003 rankings of the World's 500 largest corporations
by Fortune magazine, Old Mutual climbed 87 places to position
number 366 and was also listed as the 14th largest insurance
company in the world.
Old Mutual is the largest financial services business in South
Africa, through its life insurance, asset management, banking and
general insurance operations. The company serves 4 million life
insurance policyholders and employs over 13 000 South Africans
in its local operations.
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In the USA, Old Mutual is one of the top ten fixed annuity
businesses offering an array of specialist asset management skills
through its 23 asset management businesses. The company’s US
Life business recorded sales of $4 billion at the end of 2002.
Operations in the United Kingdom are focused on wealth
management, through Gerrard as one of the leading private client
stock broking businesses in the UK.
The Old Mutual Group has the ability to cater for a variety of
consumer segments and offers a comprehensive and innovative
range of products for all income groups.
PRODUCTS
1. Individual
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• Kotak Long Life Secure Plus
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• Kotak Flexi Plan
• Riders
2. Group
• Employee Benefits
3. Rural
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• Kotak Gramin Bima Yojana
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Branch manager
Sales Manager
Operation Executive
Assistant SM Operations
Life advisor
Chapter: 3
Literature Review
Industry profile
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Important milestones in the life insurance
business
Insurance sector reforms
The Insurance Regulatory and Development
Authority (IRDA)
Contribution of Life Insurance Sector in the
economy
Flow of Insurance Industry in India
Structure of Insurance Industry: Snap Shot
Industry
Aggregation of Long Term Savings
Spread of financial services in rural areas
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Growth Potential
Phase of transition
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The business of life insurance in India in its existing form started
in India in the year 1818 with the establishment of the Oriental
Life Insurance Company in Calcutta.
The first two decades of the twentieth century saw lot of growth in
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insurance business. From 44 companies with total business-in-
force as Rs.22.44 crore, it rose to 176 companies with total
business-in-force as Rs.298 crore in 1938. During the
mushrooming of insurance companies many financially unsound
concerns were also floated which failed miserably. The Insurance
Act 1938 was the first legislation governing not only life insurance
but also non-life insurance to provide strict state control over
insurance business. The demand for nationalization of life
insurance industry was made repeatedly in the past but it gathered
momentum in 1944 when a bill to amend the Life Insurance Act
1938 was introduced in the Legislative Assembly. However, it was
much later on the 19th of January 1956 that life insurance in India
was nationalized. About 154 Indian insurance companies, 16 non-
Indian companies and 75 provident were operating in India at the
time of nationalization. Nationalization was accomplished in two
stages; initially the management of the companies was taken over
by means of an Ordinance, and later, the ownership too by means
of a comprehensive bill. The Parliament of India passed the Life
Insurance Corporation Act on the 19th of June 1956, and the Life
Insurance Corporation of India was created on 1st September,
1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all
insurable persons in the country, providing them adequate financial
cover at a reasonable cost.
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LIC had 5 zonal offices, 33 divisional offices and 212 branch
offices, apart from its corporate office in the year 1956. Since life
insurance contracts are long-term contracts and during the currency
of the policy it requires a variety of services need was felt in the
later years to expand the operations and place a branch office at
each district headquarter. Re-organization of LIC took place and
large numbers of new branch offices were opened. As a result of
re-organization servicing functions were transferred to the
branches, and branches were made accounting units. It worked
wonders with the performance of the corporation. It may be seen
that from about 200.00 Crores of New Business in 1957 the
corporation crossed 1000.00 Crores only in the year 1969-70, and
it took another 10 years for LIC to cross 2000.00 crore mark of
new business. But with re-organization happening in the early
eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum
Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices,
100 divisional offices, 7 zonal offices and the corporate office.
LIC’s Wide Area Network covers 100 divisional offices and
connects all the branches through a Metro Area Network. LIC has
tied up with some Banks and Service providers to offer on-line
premium collection facility in selected cities. LIC’s ECS and ATM
premium payment facility is an addition to customer convenience.
Apart from on-line Kiosks and IVRS, Info Centers have been
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commissioned at Mumbai, Ahmedabad, Bangalore, Chennai,
Hyderabad, Kolkata, New Delhi, Pune and many other cities. With
a vision of providing easy access to its policyholders, LIC has
launched its SATELLITE SAMPARK offices. The satellite offices
are smaller, leaner and closer to the customer. The digitalized
records of the satellite offices will facilitate anywhere servicing
and many other conveniences in the future.
From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life
insurance business. The same motives which inspired our
forefathers to bring insurance into existence in this country inspire
us at LIC to take this message of protection to light the lamps of
security in as many homes as possible and to help the people in
providing security to their families.
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1912 The Indian Life Assurance Companies Act enacted as the
first statute to regulate the life insurance business.
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
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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 nationalized 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.
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financial system suitable for the requirements of the economy
keeping in mind the structural changes currently underway and
recognizing that insurance is an important part of the overall
financial system where it was necessary to address the need for
similar reforms…” In 1994, the committee submitted the report
and some of the key recommendations included.
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But the scenario changed with the private and foreign companies
foraying in to the insurance sector. This necessitated the need for a
strong, independent and autonomous Insurance Regulatory
Authority was felt. As the enacting of legislation would have taken
time, the then Government constituted through a Government
resolution an Interim Insurance Regulatory Authority pending the
enactment of a comprehensive legislation.
The act extends to the whole of India and will come into force on
such date as the Central Government may, by notification in the
Official Gazette specify. Different dates may be appointed for
different provisions of this Act.
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The Act has defined certain terms; some of the most important
ones are as follows
Words and expressions used and not defined in this Act but
defined in the Insurance Act, 1938 or the Life Insurance
Corporation Act, 1956 or the General Insurance Business
(Nationalization) Act, 1972 shall have the meanings respectively
assigned to them in those Acts
CONTRIBUTION TO INDIAN
ECONOMY
(i) Life Insurance is the only sector which garners
• Special Features
STRUCTURE OF INSURANCE
INDUSTRY: Snap Shot
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Historical Perspective
(i) Prior to 1956 242 companies operating
(ii) 1956 - 2001 Nationalization – LIC monopoly
player – Government control
(iii) 2001 -- Opened up sector
Industry
Snap Shot - Contd.
• (a) LIC – Fully owned by Government
(b) Postal Life Insurance
• (ii) Private players -
1. Bajaj Allianz Life Insurance Co. Ltd.
2. Birla Sun Life Insurance Co. Ltd. (BSLI)
3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD
LIFE)
4. ICICI Prudential Life Insurance Co. Ltd. (ICICI
PRU)
5. ING Vysya Life Insurance Co. Ltd. (ING VYSYA)
6. Max New York Life Insurance Co. Ltd. (MNYL)
7. MetLife India Insurance Co. Pvt. Ltd. (METLIFE)
8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd.
9. SBI Life Insurance Co. Ltd. (SBI LIFE)
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10. TATA AIG Life Insurance Co. Ltd. (TATA AIG)
11. Reliance Life Insurance
12. Aviva Life Insurance Co. Pvt. Ltd. (AVIVA)
13. Sahara India Life Insurance Co. Ltd. (SAHARA
LIFE)
14. Shriram Sunlam
• (iii) Other likely players – PNB Life Insurance,
Axa Bharti Enterprises
Market share:
1400 centers.
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• Presence of representative in every tensile –
in rural areas.
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• An investment of 6, 19,600 crore is anticipated in the next 5 years
(Source : SSKI India)
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• Helps inculcate a sense of security by protecting earning of
people in case of untimely death. Benefits to Policy Holders
EMPLOYMENT GENERATION
employment opportunities.
15.59 lakhs
SPECIAL FEATURES
• Tax clubbing of various savings short term and long term into
same bracket have a bias towards short term savings.
• Distinction between the short term savings and long term savings
is critical from investor’s point of view. More prone to inflationary
pressures
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GROWTH POTENTIAL
PHASE OF TRANSITION
• Life Insurance industry is under the phase of infancy after 50
years of monopoly
Chapter: 4
Research Methodology
Data collection
Data interpretation of the Survey &
Graph Analysis
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RESEARCH METHODOLOGY
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Marketing research specifies the information required to address
these issues, designs, and the method for collecting information,
manage and implemented the data collection process, analyses the
results and communicate the findings and their implication.
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There are two types of data collection method use in my project
report.
– Primary data
– Secondary data.
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DATA COLLECTION
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AGE No Of Members
18-25 11
26-30 22
31-45 44
46 to above 23
65
2. Gender wise classification
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Gender 44
No of Member
40 MALE 66
35 FEMALE 34
30
No. of Customers
25
22 23
20
15
11
10
0
18-25 26-30 31-45 46 & Above
Years
66
70
66
60
50
No. of Customers
40
34
30 50
48
45
20 40 40
35
No. of Customers
30
10
25
20
0
15 MALE FEMALE
12
10 Years
0
2 to 4 5 to 8 8 to aboce
No of members
67
Family member No of Member
2-4 40
5-8 48
8 to above 12
Income No of Members
40K -70K 17
70K-1 Lake 41
1 Lake to 3 Lakes 28
3 Lacks 14
68
45
40
41
35
30
28
No. of Customers
25
20
17
15 14
10
0
40 k to 70k 70k to 1 Lak e 1 Lak e to 3 3 Lake to Above
Lakes
Income (P.A)
69
NO OF MEMBER HAVING INSURANCE
NO
58%
YES
42%
70
Having insurance No of members
Self 40
Spouse 28
Children 21
Parents 18
All 11
40 40
35
30
28
No. of Customers
25
21
20
18
15
11
10
0
Self Spouse Children Parents All
72
35
LIC
30
ICICI
25
No. of Customers
Birla
Sunlife
20
SBI
15
HDFC
10
Bajaj
Alliance
5
TATA
AIG
0 Kotak
Term Plan Endowment Whole life Money Back Retirement Child Plan Unit Link
Plan Mahindr
a
Different Plans ING
Vyasya
Max
Newyork
Met Life
73
Under insurable persons Fully insurable persons
82% 18%
Under Insured
82% Fully Insured
18%
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Insurance Plan Market Share
Term Plan 39%
Money back Plan 14%
Endowment Plan 15%
Child Plan 8%
Unit link Plan 24%
Unitlink plan
24% Child Plan
8%
Endownment Plan
15%
Term Plan
39% Moneyback Plan
14%
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Chapter 5:
Limitation
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• According the survey only 42% people are insured in
Surat so reaming other part is potential for insurance
sector.
• Among that 42% people who having insurance, they
have insurance 40% for self 28%for spouse 21% for
children and 18% for their parents and 11% for all
family member, also its very help full for insurance
sector so they should take necessary step for capture
this potential.
Limitation
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After the privatization of the insurance sector many private giants
have entered the insurance sector. These private companies in
order to beat the competition and to increase their Insurance
Advisors to increase their reach to the customers are giving very
high commission rates but people are not aware of that.
Chapter 6
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Conclusion
Conclusions
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All the insurance company must advertise more in the market
because not all people know more about life Insurance
policy.
Chapter 7:
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References
Annexure
References
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In order to obtain more information regarding the present study
and to substantiate it with theoretical proof, the following
references were made: -
Websites visited:
www.kotaklifeinsurance.com
www.google .com
Annexure
Questionnaire
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1) Name ______________________________
2) Age
4) Occupation:
5) Family member
1) 2 to 4 2) 5 to 8 3) 8 to above
Yes_______ No_______
If yes,
Which is it?
Company’s Term Endow Whole Money Retire Child Unit
name plan ment life back ment Plan link
Plan
LIC
ICICI
Prudential
Birla
Sunlife
SBI Life
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HDFC
Standard
Life
Bajaj
Alliance
TATA AIG
Kotak
Mahindra
ING Vysya
Max
Newyork
Met Life
Reliance
Shri Ram
Sahara
85