HDFC

A PROJECT REPORT ON STUDY OF FINANCIAL ANALYSIS OF LIFE INSURANCE IN INDIA In HDFC StandardLife SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT OF POST
GRADUATE PROGRAME IN MANAGEMENT
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A PROJECT REPORT ON STUDY OF FINANCIAL ANALYSIS OF LIFE INSURANCE IN INDIA IN HDFC STANDARDLIFE
DECLARATION
I, HARSIMRAN ALANGH student of Masters of Business Administration Project Report from on PUNJAB TECHNICAL UNIVERSITY, OF LIFE JALANDHAR (India) hereby declare that I have completed FINANCIAL ANALYSIS INSURANCE IN INDIA as part of the course requirement.
I further declare that the information presented in this project is true and original to the best of my knowledge.
Date: Place:
Name: Enroll. No:
PREFACE
Life insurance reflects one of the best parts of human beings; caring for others. One buys life insurance because he or she loves their spouse and children. There are benefits while living but the real reason is to make sure others are financially taken care of. The insurance sector in India has experienced a 360-degree journey over a period of more than a hundred years. The insurance sector was brought under the government wrap within ten years of independence. Since then, till the re-opening of the sector in the 1990s, the state-owned companies functioned under the deluge of bureaucracy and inefficiency but still had millions of policyholders, as there were no alternatives. Opening up insurance would give better products and service to consumers; the opponents of privatization argued that in a poor country like India insurance needs to have social objectives and newcomers will not have that commitment Therefore, this research work is conducted in one of the leading Insurance company HDFC STANDARDLIFE of present. By means of this research work the financial analysis of insurance sector is studied, as well as the knowing the customer preferences regarding the insurance policies. The objectives of this report are to explore the current state of development in Indias insurance market and enumerate the opportunities and challenges offered by this exciting market. By comparing growth, penetration, density and other insurance it can be shown that, whilst India is still an underdeveloped insurance market, it has a huge catch up potential.
ACKNOWLEDGEMENT
This project required hard work, sincerity and devotion that I tried best to put in this project and I in turn gained a lot of knowledge and confidence from this project. At first, I would like to express my heart-felt gratitude towards Mr M.P Singh, Director General, Delhi Institute of Higher Education for giving me an opportunity to do a Research Project. My sincere thanks to my faculty guide, was always available when I needed his personal and academic advice during my project. He cheered me up and lightened my wearisome tasks with laughing and fun throughout this project. , who
served as my supervisor and guided and facilitated me. He
EXECUTIVE SUMMARY
The life insurance and pension sector is set for rapid changes and growth in the coming years. In order to do well in the long run, a company must excel in delivering service, building trust and offering new products. There was a study of various life insurance companies and questionnaire was prepared to study the working and consumer preferences about life insurance. A study of life insurance was done. The downward movement of premium rates (if any) as a result of competition has not been factored into the assumptions. Size of the market would suggest the nature of the challenge before the various channels; the channels would in turn impact the size that can be achieved. Finally the conclusions were drawn out of the data collected through various sources.
TABLE OF CONTENTS
Content
1. 2. 3.
Page No. 8-28 29-38 39-44
Introduction to Industry Introduction to Company Research Methodology Title justification Objective Scope of the study Significance of the study Research design: Sampling Methodology Sampling unit Sampling technique Sampling area Sample size Limitation Facts and Findings Data Analysis and Interpretation Recommendations Conclusion Annexure Bibliography : Questionnaire
a) b) c) d) e) f) i. ii. iii. iv. g)

4. 5. 6. 7. 8. 9.
45-61 62-100 101-103 104-106 107-111 112-113
CHAPTER 1 Introduction to the Industry
INTRODUCTION
Notwithstanding the rapid growth of the sector over the last decade, insurance in India remains at an early stage of development. At the end of 2003, the Indian insurance market (in terms of premium volume) was the 19th largest in the world, only slightly bigger than that of Denmark and comparable to that of Ireland.2 This was despite India being the second most populous country in the world as well as the 12 th largest economy. Yet, there are strong arguments in favour of sustained rapid insurance business growth in the coming years, including Indias robust economic growth prospects and the nations high savings rates. The dynamic growth of insurance buying is partly affected by the (changing) income elasticity of insurance demand. It has been shown that insurance penetration and per capita income have a strong non-linear relationship. Based on this relation and other considerations, it can be postulated that by 2014 the penetration of life insurance in India will increase to 4.4% and that of non-life insurance to 0.9% While the macro-economic backdrop remains favourable to growth, there are still major hurdles to overcome in order for India to realise this growth potential. This report will cover some of the key challenges and issues that have to be tackled by the Indian insurance market. On the regulatory side, there are outstanding issues concerning solvency regulations, further liberalising of investment rules, caps on foreign equity shareholdings as well as the enforcement of price tariffs in the non-life insurance sector. The proliferation of bancassurance is rapidly changing the way insurance products are distributed in India. This will also have strong implications on the process of financial convergence and capital market development in India.
Health insurance is still underdeveloped in India but offers huge potential, as there will be increasing needs to purchase private health cover to supplement public programmes. Likewise, the deficiencies in current pension schemes should offer significant opportunities to private providers. With the majority of the population still residing in rural areas, the development of rural insurance will be critical in driving overall insurance market development over the longer term. Life Insurance in India Life insurance reflects one of the best parts of human beings; caring for others. One buys life insurance because he or she loves their spouse and children. There are benefits while living but the real reason is to make sure others are financially taken care of. Some people think of insurance as gambling. It really isn't gambling even though it has the similarities of probability and odds. Insurance serves a public good of sharing the financial risks of existence and life and death among many to serve those who have experienced a loss Life insurance was originally dominated by the mutual life insurance companies. These are life insurance companies that are owned by the policyholders and thus those policy owners receive their pro-rata share of the company's profits. There are also stock life insurance companies where the profits are made for the benefit of the stockholders. Today the insurance business has evolved to a multi-faceted business with various programs and numerous distribution methods. The internet and the insurance industry is in its infancy with most insurance companies having a web site and now with web sites able to do life insurance quotes online such as www.lifeinsure.com which also has educational pages where you
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can learn about the types of life insurance including whole life insurance, term life insurance.
Insurance in India - A historical perspective How life insurance works There are three parties in a life insurance transaction; the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person. For example, if John Smith buys a policy on his own life, he is both the owner and the insured. But if Mary Smith, his wife, buys a policy on John's life, she is the owner and he is the insured. Another important person involved is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured The policy, like all insurance policies, is a legal contract specifying the terms and conditions of the risk assumed. Special provisions apply, including a suicide clause wherein the policy becomes null if the insured commits suicide within a specified time for the policy date (usually two years). Most contracts have a contestability period, also usually a two-year period; if the insured dies within this period, the insurer has a legal right to contest the claim and request additional information before deciding to either pay or deny the claim for proceeds. The cost of insurance is determined using mortality tables calculated by actuaries. Actuaries are professionals who use actuarial science which is based in mathematics (primarily probability and statistics). Mortality tables are statistically based tables showing average life expectancies. Normally,
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the only three considerations in a mortality table are the insured's age, gender, and whether they use tobacco. The mortality tables provide a baseline and federal and state guidelines for how much insurance would cost.
LIFE INSURANCE IN INDIA

The insurance sector in India has experienced a 360-degree journey over a period of more than a hundred years. The insurance sector was brought under the government wrap within ten years of independence. Since then, till the re-opening of the sector in the 1990s, the state-owned companies functioned under the deluge of bureaucracy and inefficiency but still had millions of policyholders, as there were no alternatives. Opening up insurance would give better products and service to consumers; the opponents of privatization argued that in a poor country like India insurance needs to have social objectives and newcomers will not have that commitment Insurance business is divided into four classes: a) Life Insurance b) Fire c) Marine d) Miscellaneous Insurance. Life insurers undertake the Life Insurance business; general insurers handle the rest. Insurance companies are important players in financial markets as they collect and invest large amounts of premium in various investment instruments. Insurance offers the following benefits: a) Protection to investors b) Accumulation of savings
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c) Channeling these savings into sectors needing huge long-term investments. Since the risk factor in the insurance business is quite high, insurance companies usually invest in relatively safer bets such as bonds of GOI, PSUs, state governments, local bodies, corporate houses and mortgages of long-term nature. Lately, insurance companies have also ventured into pension schemes and mutual funds. Life insurance constitutes the major share of insurance business. Existences of a large number of life insurance sellers and the narrowness of the life insurance market have been the characteristics peculiar to India. The Insurance Regulatory and Development Authority IRDA launched online services for issue and renewal of licences to agents. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. Insurance is a federal subject in India. There are two legislations that govern the sector- The Insurance Act- 1938 and the IRDA Act- 1999. The insurance sector in India has come a full circle from being an open competitive market to nationalisation and back to a liberalised market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. There were 181 registered brokers and 25 third party administrators. Strong competitive pressures have induced Insurers to develop innovative products and open up alternative channels to increase penetration in both urban and rural markets. Market conditions have driven premium rates down and improved the quality and delivery of services.
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ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

Through investments in the Government sector and socially- oriented sectors the Industry has contributed immensely to the nation's development. The industry is recognized as one of the largest financial Institutions in the country. The Life Insurance Industry has a good track record among public sector units. MAJOR MARKET PLAYERS IN INDIA Presently there are 15 Life insurance companies in the country. There is only one public sector company LIC and the rest 14 are private sector. Although LIC has been dominating the Life Insurance business since past few years the private players have now started to build up momentum. Major market players: Birla Sun Life Insurance Company Birla Sun Life Insurance Company is a 74:26 joint venture between Birla group and Sun Life Financial. It is a private sector company. The company was registered on 31/1/2001 HDFC Standard Life HDFC Standard is a 74:26 joint venture between HDFC and Standard Life. It is a private sector company. The company was registered on 23/10/2000. ICICI Prudential Life Insurance ICICI Prudential Life is a 74:26 joint venture between ICICI and Prudential. It is a private sector company. The company was registered on 24/11/2000
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Life Insurance Corporation of India (LIC) Life Insurance Corporation of India is a 100% government held Public Sector Company. Being the first to be established LIC is the forerunner in the Life Insurance sector Kotak Mahindra OLD Mutual Kotak Mahindra OLD Mutual is a 74:26 joint venture between Kotak Mahindra bank and Old Mutual. It is a private sector company. The company was registered on 10/1/2001. Max New York Life Max New York Life is a 74:26 joint venture between J & Bank, Pallonji & Co and MetLife. It is a private sector company. The company was registered on 6/8/2001. Aviva Life Insurance India Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur. It is a private sector company. The company was registered on 14/5/2002 ING Vysya Life insurance ING Vysya Life Insurance is joint venture between Exide (50%), Gujarat Cements (14.87%), Enam (9.13%) and ING (26 %). It is a private sector company. The company was registered on 2/8/2001. MetLife India MetLife India is a 74:26 joint venture between J & K Bank, Pallonji & Co and MetLife. It is a private sector company. The company was registered on 6/8/2001
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Bajaj Allianz Life Insurance Co. Bajaj Allianz Life Insurance Company is a 74:26 Joint venture between Bajaj Auto limited and Allianz AIG. The company was registered on 3/8/2001 SBI Life Insurance Company Ltd SBI Life Insurance Company is a 74:26 Joint venture between SBI and Cardiff S.A. The company was registered on 31/3/2001.It is a private sector company. The TATA AIG Group TATA AIG group is a 74:26 JV between Tata Group and AIG. It belongs to the private sector. The company was registered on 12/2/2001 Sahara India Life Insurance Company Ltd. First Wholly Indian Owned Private Life Insurance Company. The Company commenced operations from 30th October 2004
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INSURANCE INDUSTRY AND THE DISTRIBUTION CHANNELS USED IN INDIA: The shape of the insurance industry is being changed by developments in distribution. The main driver is the lowering cost of increasingly sophisticated technology, enabling new economies of scale and scope, which extend beyond national boundaries. It is likely to bring in a more professional and focused approach. Moreover the foreign players would bring sophisticated actuarial techniques with them, which would facilitate the insurer to effectively price the product. In todays scenario, Insurance companies must move from selling insurance to marketing an essential financial product. The distributors have become trusted financial advisors for the clients and trusted business associates for the insurance companies so this calls for leveraging multiple distribution channels in a cost effective and customer friendly manner
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The distribution in the Indian market is as below:
The major distribution channels are: Retail Banks Full-Service Brokers Discount Brokers and Online Financial Services Independent Advisors Life Insurance Agents, CPAs and Lawyers Bancassurance
BANCASSURANCE AND ITS FRAMEWORK

One of the most significant changes in the financial services sector over the past few years has been the appearance and development of Bancassurance. Bancassurance is a business model in which insurance and investment products are integrated into core retail banking business. Bancassurance: Provides insurance and banking products and services through a
common distribution channel and for the same client base.
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Refers to the selling of insurance policies through a banks established
distribution channels. Benefits of Bancassurance a) 1. 2. 3. 4. 5. To Banks: Increased Return On Assets Fee income which is risk free To reduce operating costs Customer retention To prepare to eventually diversify into insurance business
Banks those effectively cross-sell financial products can leverage their distribution and processing capabilities for profitable operating expense ratios. In addition, a banks branch network allows the face-to-face contact that is so important in the sale of personal insurance. Banks also enjoy significant brand awareness within their geographic regions, again providing for a lower per-lead cost when advertising through print, radio and/or television. Banks have extensive experience in marketing to both existing customers (for retention and cross selling) and non-customers (for acquisition and awareness). They also have access to multiple communications channels, such as statement inserts, direct mail, ATMs, telemarketing, etc. Banks proficiency in using technology has resulted in improvements in transaction processing and customer service. b) 1. 2. 3. To Insurers: Lesser procurement costs Known customer and therefore risk assessment is easier Increase in market penetration
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4.
Personal insurance - sky is the limit
Banks offer an untapped and successful mode of distribution. Banks with their brand image and existing customer relationship offer a natural market for selling of insurance products. Bancassurance also offers lower distribution costs and higher productivity. Traditionally, insurance products have been sold through fulltime sales agents. The commissions paid to the sales agents and the international productivity standard of 4-6 sales per month made this distribution channel an expensive one. The reason the productivity is low in the traditional sales agent distribution system is the amount of time the agent has to spend on prospecting or trying to find the right customer. Almost 80% of a sales agents time goes towards prospecting. Banks on the other hand provide a cheaper and highly productive distribution system to insurance companies. Insurance companies also expect a greater quality of sale through bancassurance. c) 1. 2. 3. 4. 5. 6. To Customers: Lower cost Refined, high quality product Double assurance/ Credibility Delivery at doorsteps Convenience in payment Easy & automatic renewals
For customers, bancassurance offers convenience and a one-stop financial super market. The customer has the satisfaction of the brand strength of the bank, his/her existing relationship and trust on the bank. The products sold through bancassurance can give better value and offer cheaper premiums due to lower distribution costs.
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Bancassurance Arrangement
1. Distribution Agreements: a) Separate sales force: One partys distribution channels gain access to the client base of the other party. This is the simplest form of bancassurance. Once a bank and the insurance company enter into a distribution agreement, according to which the bank automatically passes on to a friendly insurance company all warm leads emanating from the banks client base, this can generate very profitable income for both partners. For the bank the costs involved-besides those for basic training of branch employees are relatively low. b) Hand In Glove: A bank signs a distribution agreement with an insurance company, under which the bank will act as their appointed representative. The financial investment required by the bank is relatively low. The products offered by the bank can be branded. 2. Joint Venture: This is the creation of a new company by an existing bank and an existing insurance company. 3. Mergers And Acquisition: a) A bank wholly or partially acquires an insurance company. b) The acquisition of a bank that is wholly or partially owned by an insurance company is also possible. In this case the main objective is usually to open the way for the insurance company to use the banks retail banking branches and gain access to valuable client information as well as to corporate clients, allowing the insurance company to tap into the
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lucrative market for company pension plans. Finally it offers the insurance companys sales force bank product diversification (and vice-versa). 4. Start Ups/Green Field Approach:
a) A bank starts from scratch by establishing a new insurance company wholly owned by the bank. b) A group owns a bank and an insurance company, which agree to cooperate in a bancassurance venture. c) A bank and an insurance company agree to have cross shareholdings between them. A member from each company might join the board of directors of the other company. Delivery Approaches of Bancassurance
THE MAIN CHARACTERISTICS OF EACH OF THESE CHANNELS ARE: Career Agents: Career Agents are full-time commissioned sales personnel holding an agency contract. They are generally considered to be independent contractors. Consequently an insurance company can exercise control only over the activities of the agent which are specified in his contract. Despite this limitation on control, career agents with suitable training, supervision and motivation can be highly productive and cost effective. Moreover, their level of customer service is usually very high
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due to the renewal commissions, policy persistency bonuses, or customer service-related awards paid to them.
other
Special Advisers: Special Advisers are highly trained employees usually belonging to the insurance partner, who distribute insurance products to the banks corporate clients. Banks refer complex insurance requirements to these advisors. The clients mostly include affluent population who require personalised and high quality service. Usually, Special advisors are paid on a salary basis and they receive incentive compensation, based on their sales. Salaried Agents: Having Salaried Agents has the advantages of them being fully under the control and supervision of bancassurers. These agents share the mission and objectives of the bancassurers. Salaried Agents in bancassurance are similar to their counterparts in traditional insurance companies and have the same characteristics as career agents. The only difference in terms of their remuneration is that they are paid on a salary basis and career agents receive incentive compensation based on their sales. Some bancassurers, concerned at the bad publicity which they have received as a result of their career agents concentrating heavily on sales at the expense of customer service, have changed their sales forces to salaried agent status. Platform Bankers: Platform Bankers are bank employees who spot the leads in the banks and gently suggest the customer to walk over and speak with appropriate representative within the bank. The platform banker may be a teller or a personal loan assistant and the representative being referred to may be a trained bank employee or a representative from the partner insurance company. Platform Bankers can usually sell simple products. However, the time which they can devote to insurance sales is limited, e.g. due to limited opening hours and to the need to perform other banking duties. A further restriction on the effectiveness of bank employees in generating insurance business is that they have a limited target market, i.e. those customers who
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actually visit the branch during the opening hours. If bank employees only act as passive insurance sales staff (or do not actively generate leads), then the bancassurers potential can be severely impeded. However, if bank employees are used as active centres of influence to refer warm leads to salaried agents, career agents or special advisers, production volumes can be very high and profitable to bancassurers. Set-up / Acquisition of agencies or brokerage firms: In the US, quite a number of banks co-operate with independent agencies or brokerage firms whilst in Japan or South Korea, banks have founded corporate agencies. The advantage of such arrangements is the availability of specialists needed for complex insurance matters and in the case of brokerage firms, the opportunity for the bank clients to receive offers not only from one insurance company but from a variety of companies. In addition, these sales channels are more conceived to serve the affluent bank client. Direct Response: In this channel no salesperson visits the customer to induce a sale and no face-to-face contact between consumer and seller occurs. The consumer purchases products directly from the bancassurer by responding to the companys advertisement, mailing or telephone offers. This channel can be used for simple packaged products which can be easily understood by the consumer without explanation. Internet: Internet banking is already securely established as an effective and profitable basis for conducting banking operations. The reasonable expectation is that personal banking services will increasingly be delivered by Internet banking. Bancassurers can also feel confident that Internet banking will also prove an efficient vehicle for cross selling of insurance savings and protection products. It seems likely that a growing proportion of the affluent population, everyones target market, will find banks with household name brands and proven skills in e-business a very acceptable source of non-banking products.
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There is now the Internet, which looms large as an effective source of information for financial product sales. Banks are well advised to make their new websites as interactive as possible, providing more than mere standard bank data and current rates. Functions requiring user input (check ordering, what-if calculations, and credit and account applications) should be immediately added with links to the insurer. Such an arrangement can also provide a vehicle for insurance sales, service and leads. E-Brokerage: Banks can open or acquire an e-Brokerage arm and sell insurance products from multiple insurers. The changed legislative climate across the world should help migration of Bancassurance in this direction. The advantage of this medium is scale of operation, strong brands, easy distribution and excellent synergy with the internet capabilities. Outside Lead Generating Techniques: One last method for developing bancassurance eyes involves outside lead generating techniques, such as seminars, direct mail and statement inserts. Seminars, in particular, can be very effective because in a non-threatening atmosphere, the insurance counsellor can make a presentation to a small group of business people (such as the local chamber of commerce), field questions on the topic, then collect business cards. Adding this technique to his/her lead generation repertoire, an insurance counsellor often cannot help but be successful. To make the overall sales effort pay anticipated benefits, insurers need to also help their bank partners determine what the hot buttons will be for attracting the attention of the reader of both direct and e-mail. Great opportunities await bancassurance partners today and, in most cases, success or failure depends on precisely how the process is developed and managed inside each financial institution. This includes the large regional bank and the small one-unit community bank.
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Bancassurance in India India - a land of promise for bancassurance - with a democratic government and a population of one billion has a savings rate of 23% of which savings with the bank constitute more than 50% of the domestic households savings. This presents an enviable opportunity for insurers to take advantage of the strong banking platform. The banking network consists of 65,000 bank branches, of which 33,000 branches are in the rural areas and 14,000 branches in the semi urban areas, with each branch serving an average of 15,000 people. The challenges and opportunities that Indian market presents are immense. With expertise in financial needs, saving patterns of the customers they serve, banks provide something that insurance companies would find it nearly impossible to achieve on their own. Currently, many foreign insurers are partnering banks and non-bank financial corporations to leverage their local branch network and experience. Solid brand name, strong customer affinity, customized product and service delivery and flexibility to change are some key success factors in this country with its cultural and linguistic diversity and huge economic capability. Status of Bancassurance in India RBI had permitted Banks to enter the Insurance Sector, as the Insurance business takes a longer time to break even. Banks do not have the archival and technical expertise, they should be strong to withstand the initial losses, it was therefore suggested by RBI the following norms/eligibility criteria for the banks which may be permitted to enter the insurance sector having, 1. 2. 3. 4. A minimum net worth of Rs. 500 crores. CRAR not less than 10%. NPAs within the reasonable level. Made profits continuous during the last 3 years.
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5. 6.
Satisfactory track record of the subsidiaries, if any. Any scheduled commercial bank will be permitted to undertake the
insurance business as agent of an insurance company on a fee basis without risk participation and have to obtain a case-by-case clearance. The banks fulfilling the above norms would be permitted to take up the insurance business, individually or jointly with domestic or foreign partner. The maximum stake a bank can hold in a JV is 50 % and subsidiaries or associates can pick up additional stakes. Until now only individuals could act as insurance agents. After the opening of insurance sector to private players, RBI has selectively allowed banks to promote insurance companies. The ostensible reason was to allow them make use of their surplus staff and branch network and increase earnings.
The Indian insurance industry: challenges and prospects

The insurance industry in India has come a long way since the time when businesses were tightly regulated and concentrated in the hands of a few public sector insurers. The inauguration of a new era of insurance development has seen the entry of international insurers, the proliferation of innovative products and distribution channels, and the raising of supervisory standards. There is huge untapped potential in various segments of the market. The objectives of this report are to explore the current state of development in Indias insurance market and enumerate the opportunities and challenges offered by this exciting market. By comparing growth, penetration, density and other insurance variables, it can be shown that, whilst India is still an underdeveloped insurance market, it has a huge catch up potential .The insurance business was opened on two fronts. Firstly, domestic private-sector companies were permitted to enter both life and non-life insurance business. Secondly, foreign companies were allowed to participate, albeit with a cap on shareholding at 26%.
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It has been shown that insurance penetration and per capita income have a strong non-linear relationship. Based on this relation and other considerations, it can be postulated that by 2014 the penetration of life insurance in India will increase to 4.4% and that of non-life insurance to 0.9% Competition Competition between the LIC and the private sector insurers is intensifying. While innovative products have been underpinning private insurers premium growth, the threat of losing market share has also led to more aggressive pushes by the LIC to stay competitive and to develop new distribution channels like bancassurance. Such an increase in competition is likely to translate into faster premium growth as well as deeper penetration for the entire market
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CHAPTER -2 Introduction to the Company
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ABOUT HDFC STANDARD LIFE INSURANCE

HDFC Standard Life, one of Indias leading private life insurance companies, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), Indias leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom. HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others. HDFC Standard Lifes product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the plans, by adding optional benefits called riders, at a nominal price. The company currently has 32 retail and 4 group products in its portfolio, along with five optional rider benefits catering to the savings, investment, protection and retirement needs of customers. HDFC Standard Life continues to have one of the widest reaches among new insurance companies with 568 branches servicing customer needs in over 700 cities and towns. The company has a strong presence in its existing markets with a base of 2, 00,000 Financial Consultants.
HDFC STANDARD LIFE INSURANCE PARENTAGE - HDFC Limited HDFC Limited has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in the setting up of
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housing finance companies. Customer Service and satisfaction has been the mainstay of the organization. HDFC Limited has assisted more than 3.3 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 250 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRIs and PIOs to own a home back in India.
HDFC is India leading housing finance institution and has helped build In Financial Year 2003-04 its assets under management crossed Rs. 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
more than 23, 00,000 houses since its incorporation in 1977.

36,000 Cr.
for its long- standing commitment to community development. Standard Life Group (Standard Life plc and its subsidiaries) 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 Standard &
Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's.
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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. 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. Values Values that we observe while we work: Integrity Innovation Customer centric People Care One for all and all for one Team work Joy and Simplicity
HDFC KEYS STRENGHS
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.
RANGE OF SOLUTIONS
We have a range of individual and group solutions, which can be easily customised to specific needs. structure. Our group solutions have been designed to offer you complete flexibility combined with a low charging
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TRACK RECORD SO FAR

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.
Most respected Private Insurance Company
HDFC SLIC was awarded No-1 Private Insurance Company in 2004 by the World Class Magazine Business World for Integrity, Innovation and Customer Care. Brief Profile of The Board of Directors
Mr. Deepak S. Parekh is the Chairman of the Company. He is also
the Chairman and Director of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Chairman in 1993. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).
Mr. Keki M. Mistry joined the Board of Directors of the Company in
December, 2000. He is currently the Vice Chairman and Chief Executive Officer of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993.
Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She
is responsible for overseeing all aspects of lending operations of HDFC Limited.

Mr. Amitabh Chaudhry is the MD and CEO of HDFC Standard Life. Mr. David Nish. He is appointed as the Executive Europe on 1st
January 2010.
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Mr. Gerald E. Grimstone was appointed Chairman of Standard Life in
May 2007, having been Deputy Chairman since March 2006. He became a director of the Standard Life Assurance Company in July 2003
PRODUCTS OFFERED BY HDFC STANDARD LIFE INSURANCE

1. Protection Plan : Protection Plans ensures your familys financial independence in the event of your unfortunate demise or critical illness. Following are the Protection Plans offered by HDFC Standard Life Insurance a. HDFC Term Assurance Plan: The Plan is designed to secure your family from any kind of financial uncertainties. It provides you high cover at nominal cost, flexibility to choose the sum assured, an additional benefit options can be availed at marginal cost and gives you the option of paying single premium or regular premium b. HDFC Loan Cover Term Assurance Plan: It protects your family form your loan liabilities in case of your demise within the policy term, a lump sum amount is provided which is a decreasing percentage of the initial Sum Assured. c. HDFC Home Loan Protection Plan : The plan protects your family from your loan liabilities in case of your unfortunate demise within the policy term. In case if you are not there to repay the monthly installment on your housing loan, then a sum of money is available towards repaying your housing loan. 2. Children Plan : The children plan helps you to fulfill your childs dreams. The plan secures your childs future financially even though you are not around them.
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a. HDFC Children's Plan- The plan ensures that you can start building your savings today to give a bright future to your child. A the time of maturity a guaranteed lump sum is given to the beneficiary or in case of your unfortunate demise, early into the policy term. b. HDFC Unit Linked Young Star II- The plan provides a valuable protection to your child in case you are not there to support them. The unit linked plan also gives you an outstanding investment opportunity to maximize your savings by providing you a choice of thoroughly researched & selected investments. c. HDFC Unit Linked Young Star Plus II- The plan provides a valuable protection to your child in case you are not there to support them. The unit linked plan also gives you an outstanding investment opportunity to maximize your savings by providing you a choice of thoroughly researched & selected investments. Along with that a regular Loyalty Units are also provided to improve your fund value every year. d. HDFC Unit Linked Young Star Champion- The plan provides a valuable protection to your child in case you are not there to support them. The unit linked plan also gives you an outstanding investment opportunity to maximize your savings by providing you a choice of thoroughly researched & selected investments. Along with that the plan also provides Bumper Addition to the funds at the time of maturity. 3. Retirement Plans- The Retirement Plans of HDFC Standard Life Insurance ensure you to provide a secure life after your retirement. It provides you with financial security in life & you dont need to comprise with your life. The plan gives you a lump sum on retirement, which helps you to get a regular income through an annuity plan.
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a. HDFC Personal Pension Plan- A plan that gives you a post retirement income for life. You can choose the premium, sum assured and your retirement date too. b. HDFC Unit Linked Pension II- A unit linked insurance plan that gives you an outstanding investment opportunity to maximize your saving. It also gives you Bumper Addition. c. HDFC Unit Linked Pension Maximiser II- Its a unique single premium unit linked plan, designed to provide a post retirement income with maximum investment returns. The plan also gives Bumper Addition of 10% of initial single premium at vesting & on death. d. HDFC Immediate Annuity- It is a contract that uses your capital to provide you with a guaranteed gross income through out your life. The income is guaranteed & is unaffected by rise or fall of interest rates. 4. Saving & Investment Plans: The saving & investment plan gives you dual benefit of protection & long term savings. Along with that an assured sum for your future need. a. HDFC Unit Linked Endowment Plus II- With this plan you start saving today so that your family remains financially independent, even when you are not around. The plan gives you Loyalty Units to boost your fund value. b. HDFC SimpliLife- The HDFC SimpliLife Plan gives you the opportunity to maximize your savings & secure your familys future. c. HDFC Unit Linked Endowment II- The plans comes with additional benefits like Life option, extra life option, life & health option & extra life & health option
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d. HDFC Unit Linked Enhanced Life Protection II- Under this plan the sum assured chosen by you will automatically increased by 5% each year.
e. HDFC Unit Linked Wealth Maximiser Plus - Its a unique single premium investment cum protection plan, which gives you Loyalty Units to enhance your fund value every year. f. HDFC Unit Linked Endowment Winner- The plan gives you the choice of thoroughly researched & select the investments. It comes with Bumper Addition to the fund value at maturity. g. HDFC Endowment Assurance Plan- The plan will give your family a guaranteed lump sum on maturity or in case of your unfortunate demise.
h. HDFC Money Back Plan- The plan gives you proportion of the basis Sum Assured as cash lump sums after every 5 years. i. HDFC Single Premium Whole of Life Insurance Plan- A single premium investment plan which provides long-term real growth of your money. j. HDFC Assurance Plan- A long term saving plan that will secure the life of your family too. k. HDFC Savings Assurance Plan- A plan which comes With Profits savings plan which helps you easily build your long-term savings and ensure that your family is protected even if you are not around.
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Operational & Financial Highlights
38
CHAPTER - 3 Research Methodology
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RESEARCH METHODOLOGY
Research is in common parlance refers to a search for knowledge. One can also define research as scientific and systematic search for pertinent information on a specific topic. Research comprises defining and redefining problem, suggesting solutions, collecting, organizing and evaluating data, making deductions and reaching conclusion and atlest carefully testing the conclusion. Marketing research is systematic and objective study of problems retaining to the marketing of goods and services. Market research specifies the information required to address these issues: designs the method for collecting information, manages and implants the data collection process, analyses the results, and communicates the findings and their implications. 1. 2. 3. 4. In this project basically the study of secondary data was conducted. The data was collected for all the insurance companies in India and There was a study of overview of insurance industry in India A questionnaire on consumer preferences regarding life insurance in
The objective of secondary data study is fact finding and model building. the holistic view of insurance industry as whole was taken into account.
India was prepared with a sample size of 200 covering 15 major market players in life insurance industry 5. 6. 7. There was a study of distribution channels used in India and insurance There was a study of bancassurance and its framework Exploratory experimental research has been used market was studied in Indian context.
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(A) TITLE: FINANCIAL ANALYSIS OF LIFE INSURANCE IN INDIA (1) TITLE JUSTIFICATION: I have chosen FINANCIAL ANALYSIS OF LIFE
INSURANCE as my project title because my Project revolves around the holistic view of insurance industry as a whole. Taking into account the consumer preferences regarding life insurance in India. The purpose of this project report is to enable to understand customers needs and maximise wealth generation taking HDFC StandardLife Insurance as a special case. Insurance is a financial tool surrounded with many misconceptions and hence a marketer has to create awareness. The thesis would highlight the problems within the industry.
(B) OBJECTIVES OF THE STUDY (1) PRIMARY OBJECTIVE: To study the various life insurance companies
working in India and finding out the consumer preference about the life insurance.
(2) SECONDARY OBJECTIVES:
To assess the nature of joint venture, investment pattern, entry
strategies and product of various insurance companies; To determine customers perception towards private insurance companies and their expectation form private insurance companies. To determine the feedback on services provided by any other insurance agent.
To study the types of benefits provided by insurance services.

(C) SCOPE OF THE STUDY
Insurance industry is growing at a very fast pace. In this cut throat competitive era it is important for the Company to design and deliver their
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services efficiently. Marketer has to understand the needs of the untapped customers. This thesis will help to understand the industry with respect to the needs, demands, preferences of the customer and the products that the company offers to cater to those needs.
(D) SIGNIFICANCE OF THE STUDY
India is a huge, diverse and complex market of which, the insurance sector was opened for private competition in 2000. Thus, insurers endeavored to segment the market carefully. Distribution was seen to be the key of success. Regulators were made to formulate strong and fair guidelines. Private insurers were perceived to have served best by a middle-market approach, targeting customer segments that were currently untapped. Multinational insurers were observed to be keenly interested in emerging insurance markets. It was believed that Private insurers would learn and unlearn
simultaneously. New entrants with small share of a large and growing market would be profitable. The new entrants would be best served by micro-level two pronged strategies. First, by introducing innovative products; offering a right mix of flexibility/risk/return and secondly, by targeting specific markets. In a scenario where buyers look for the low prices, Brand loyalty would be at high risk. Therefore, strong marketing strategies would be needed. HDFC Standard Life, being an old player, had huge opportunities awaiting it. Through the devising of various effective strategies it has made a place for itself in the insurance industry. New schemes and distribution channels have strengthened its resolve to be able to better serve its customers and contribute to the industry.
(1) SIGNIFICANCE TO THE INDUSTRY:
This is a limited study which takes into consideration the responses of 200 people. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that
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emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends
(2) SIGNIFICANCE FOR THE RESEARCHER:
To facilitate and provide all the useful information of the study, the company and the insurance industry also providing ways, methods to build up the market share of HDFC Standard Life insurance.
(E) RESEARCH DESIGN
A research design is an arrangement of conditions for the collection and analysis of data in a manner that aims to combine the relevance to research purpose with economy in procedure. In fact the research design is the conceptual structure within research is conducted, if it constitutes the blueprints for the collection measurement and the analysis of the data. DATA COLLECTION Basic methods of gathering Primary Data are as: A) Observation B) Questionnaire C) Interview
We have taken questionnaire as our data collection tool.

(F) SAMPLING METHODOLOGY (1) SAMPLING UNIT:
Sampling unit may be a geographical one, such as
state, district, village etc. The researcher will have to decide one or more of such units that he has to select for his study. In my research study Delhi and NCR is taken as the sampling unit.
(2) SAMPLING TECHNIQUE: The research design for current design was
descriptive and convenient sampling has been chosen as the sampling technique.
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(3) SAMPLE AREA: Delhi and NCR (4) SAMPLE SIZE: In my research, sample size is 200 (G) LIMITATIONS
The research is confined to certain parts i.e. Delhi, NCR and does not
shows a pattern applicable to all of India. Some respondents were reluctant to reveal personal information
which can have an effect on the validity of all responses. In a rapidly changing industry, analysis on one day/one segment can
change very speedily. The environmental changes are very important to be considered in order to incorporate the findings. Time Constraints. Some respondents did not respond few questions because they were
not sure about the answer the questionnaire.
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CHAPTER - 5 Facts And Findings
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Major findings of the study are: Public preferred LIC but now are moving to private insurance mainly for the reasons such as timely service, better service, friendly approach, better communication, immediate attention, influence of friends and relatives as agents and trust worthiness. Aged people have more concern for economic factors compared to youngsters while studying the reasoning for private policy preference. All other factors like service, human relations, product and comfort do not vary significantly based on age though the reasoning levels are high. Income, gender, experience with private insurance co., do not exert any significant level of difference relating to the factors like service, human relations, economic, comfort and product. Respondents who are experiencing both private and government policies find that the private insurance schemes are more attractive. The most important means of creating awareness are agents, friends, relatives and advertisement. Only half the respondents are found to be willing to recommend private insurance but 80 per cent of them are willing to opt for private policies in the future. Customers are found to be highly satisfied with service facilities, human relations and attractive schemes. Age and income did not exert any significant level of difference in the satisfaction level of the customers regarding service, product, human relations, economic factors and comfort. Experience with the private insurance company also varies in the satisfaction level of comfort. Freshers to private insurance found to be more comfortable than those who are more experienced. Satisfaction level does
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not vary relating to the factors such as services, economic and human relations factor based on experience with private insurance company. Significant level of variation has not been observed in any differences relating to service and product, comfort, economic and human relations factors based on income. Respondents who already possess insurance from government
corporations are found to be highly satisfied with the human relation aspect compared to those who have only private insurance. This factor does not contribute much on service and product, economic and comfort aspects.
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Que Are you Self-employed/ Salaried/ Professional?
NUMBER OF RESPONSE RESPONDENTS Self employed/ Business owner 91 Salaried 219 Professional 131 Any other 59 Total 500 Que- What is your monthly income from all sources?
SHARE (%) 18.2 43.8 26.2 11.8 100
INCOME Less than Rs.15,000 Rs.15,000- Rs.25,000 Rs.25,000- Rs.50,000 Rs.50,000- Rs.1,00,000 Above Rs.1,00,000 Total
NUMBER OF RESPONDENTS 2 40 264 158 36 500
SHARE (%) 0.4 8.03 52.81 31.53 7.23 100
Que- How much tax do you pay ?
TAX Less than Rs.10,000 Rs.10,000- Rs.20,000 Rs.20,000- Rs.50,000 More than Rs.50,000 Total
NUMBER OF RESPONDENTS 92 188 165 55 500
SHARE (%) 18.44 37.68 32.87 11.02 100
Que In which company do you have a life Insurance Policy from?
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NUMBER OF LIFE INSURANCE COMPANY RESPONDENTS SHARE (%) HDFC Standard Life 59 11.8 Max New York Life 42 8.4 ICICI Prudential 33 6.6 Bharti AXA 26 5.2 LIC 116 23.2 Birla Sunlife 25 5 Reliance Life 21 4.2 Tata AIG 47 9.4 SBI Life 14 2.8 ING Vysya 24 4.8 Bajaj Allianz 9 1.8 Future Generali 25 5 Kotak Mahindra 22 4.4 Metlife 17 3.4 Aviva Life 19 3.8 Any other 1 0.2 Total 500 100 Que- Which investment plan have you taken /would you prefer? INVESTMENT PLAN Pension plan Life time plan Child benefit plan Any other Total NUMBER OF RESPONDENTS 28 352 76 44 500 SHARE (%) 5.6 70.4 15.2 8.8 100
Que- How did you buy the Insurance?
APPROACH OF BUYING INSURANCE POLICY
NUMBER OF RESPONDENTS
SHARE (%)
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You approached the insurance company (agent) Insurance company (agent) approached you Total
144 356 500
28.8 71.2 100
Que- For how many years do you have insurance policy? DURATION OF LIFE NUMBER OF INSURANCE POLICY RESPONDENTS Less than 5 yrs 4 5-10 yrs 7 10-15 yrs 111 Above 15 yrs 378 Total 500 Que- Are you satisfied with your Life Insurance Policy? RESPONSE Yes No Total NUMBER OF RESPONDENTS 435 65 500 SHARE (%) 87 13 100
SHARE (%) 0.8 1.4 22.2 75.6 100
Que- Are you satisfied with your service agent?
RESPONSE Yes No Total
NUMBER OF RESPONDENTS 383 117 500
SHARE (%) 76.6 23.4 100
Que- How much is the motivator Tax saving important to you?
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TAX SAVING AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total
SHARE (%) 70.6 15.6 6.8 3.8 3.2 100
Que- How much is the motivator Financial Security important to you? FINANCIAL SECURITY AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total NUMBER OF RESPONDENTS 337 127 32 4 0 500 SHARE (%) 67.4 25.4 6.4 0.8 0 100
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Que- How much is the Insurance against health reelated expenses important to you? INSURANCE AGAINST HEALTH RELATED EXPENSES AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total NUMBER OF RESPONDENTS 43 170 156 81 50 500
SHARE (%) 8.6 34 31.2 16.2 10 100
Que- How much is the motivator Safe investment important to you? SAFE INVESTMENT AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total NUMBER OF RESPONDENTS 145 181 133 32 9 500
SHARE (%) 29 36.2 26.6 6.4 1.8 100
Que- How much is the motivator Saving for childrens education/ needs important to you? SAVING FOR CHILDREN'S EDUCATION/NEEDS AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total NUMBER OF RESPONDENTS 173 176 94 41 16 500
SHARE (%) 34.6 35.2 18.8 8.2 3.2 100
Que- How much is the motivator Lumpsum amount for your needs like house etc. important to you? LUMP SUM AMOUNT FOR NUMBER OF SHARE
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YOUR NEEDS LIKE HOUSE ETC. AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total
RESPONDENTS 66 124 161 95 54 500
(%) 13.2 24.8 32.2 19 10.8 100
Que- How much is the motivator Retirement planning important to you? RETIRE MENT PLANNING AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total NUMBER OF RESPONDENTS 120 159 110 74 37 500
SHARE (%) 23.85 31.86 22.04 14.83 7.41 100
Que- How much is the motivator Good returns important to you?
GOOD RETURNS AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total
SHARE (%) 49.6 28.8 14 4.6 3 100
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Que- Which of the following are the main barriers according to you in taking up Life Insurance?
BARRIERS IN TAKING UP LIFE INSURANCE Money gets tied up Difficult to get back money High premiums Low rate of returns Poor service by agents Lot of paperwork/formalities Unsure if family will get claim after death Unsure about private companies Dont know much about Life Insurance Value of policy reduces due to inflation Total
NUMBER OF RESPONDENTS 153 38 48 81 30 15 11 10 11 103 500
SHARE (%) 30.6 7.6 9.6 16.2 6 3 2.2 2 2.2 20.6 100
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Que- If you had to recommend a Life? Insurance company to someone, which company would it be? LIFE INSURANCE COMPANY LIC HDFC Standard Life Kotak Life Insurance Max New York Life ICICI Prudential Birla Sunlife Reliance Life Bharti AXA Future Generali Tata AIG SBI Life ING Vysya Bajaj Allianz MetLife Aviva Life Total NUMBER OF RESPONDENTS 216 126 34 36 20 14 7 5 0 8 1 7 7 4 15 500 SHARE (%) 43.2 25.2 6.8 7.2 4 2.8 1.4 1 0 1.6 0.2 1.4 1.4 0.8 3 100
Que- What is your main reason of choosing this company?
REASON High quality image Lowest charges/affordable policies Best customer service Innovative products/policies Total
SHARE (%) 57.4 12.4 13 17.2 100
Que- Which statement describes LIC the best?
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DESCRIPTION OF LIC This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 87.8 11.6 0 0.6 100
Que- Which statement describes HDFC Standard Life the best?
DESCRIPTION OF HDFC STANDARD LIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
NUMBER OF RESPONDENT S 117 319 6 58 500
SHARE (%) 23.4 63.8 1.2 11.6 100
Que- Which statement describes Kotak Life Insurance the best?
DESCRIPTION OF KOTAK LIFE INSURANCE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHAR E (%) 25.8 72.8 0.2 1.2 100
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Que- Which statement describes Max New York Life the best?
DESCRIPTION OF MAX NEW YORK LIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%)
72 411 6 11 500
14.4 82.2 1.2 2.2 100
Que- Which statement describes ICICI Prudential the best?
DESCRIPTION OF ICICI PRUDENTIAL This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 22 74.8 1 2.2 100
Que- Which statement describes Birla SunLife the best?

DESCRIPTION OF BIRLA SUNLIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company 57 NUMBER OF RESPONDENTS 71 401 11 SHARE (%) 14.2 80.2 2.2
I would never buy a policy from this company Total
17 500
3.4 100
Que- Which statement describes Reliance Life the best?

DESCRIPTION OF RELIANCE LIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total NUMBER OF RESPONDENTS 53 406 17 24 500 SHARE (%) 10.6 81.2 3.4 4.8 100
Que- Which statement describes Bharti AXA the best?

DESCRIPTION OF BHARTI AXA This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total NUMBER OF RESPONDENTS
SHARE (%)
60 385 29 26 500
12 77 5.8 5.2 100
Que- Which statement describes Future Generali the best?

DESCRIPTION OF FUTURE GENERALI This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total NUMBER OF RESPONDENTS 0 243 184 73 500 SHARE (%) 0 48.6 36.8 14.6 100
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Que - Which statement describes TATA AIG the best?

DESCRIPTION OF TATA AIG This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total NUMBER OF RESPONDENTS 40 411 18 31 500 SHARE (%) 8 82.2 3.6 6.2 100
Que- Which statement describes SBI Life the best?
DESCRIPTION OF SBI LIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 12.6 82.2 1.2 4 100
Que- Which statement describes ING Vysya the best?

DESCRIPTION OF ING VYSYA This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total NUMBER OF RESPONDENTS 53 419 9 19 500 SHARE (%) 10.6 83.8 1.8 3.8 100
Que Which statement describes Bajaj Allianz the best?

DESCRIPTION OF BAJAJ NUMBER OF SHARE (%)
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ALLIANZ This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
RESPONDENTS 53 433 2 12 500 10.6 86.6 0.4 2.4 100
Que Which statement describes MetLife the best?

DESCRIPTION OF METLIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total NUMBER OF RESPONDENTS 42 423 15 20 500 SHARE (%) 8.4 84.6 3 4 100
Que Which statement describes Aviva Life the best?

DESCRIPTION OF AVIVA LIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total NUMBER OF RESPONDENTS 133 341 8 18 500 SHARE (%) 26.65 68.14 1.6 3.61 100
Que- Any suggestions for improvement?

NUMBER OF RESPONDENTS 19 481 60 500
SHARE (%) 3.8 96.2 100
Que Do you think there is any other better alternative to Life Insurance?
RESPONSE Yes No Total NUMBER OF RESPONDENTS 91 409 500 SHARE (%) 18.2 81.8 100
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CHAPTER-6 Data Analysis And Interpretation Of Questionnaire
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Que Are you Self-employed/ Salaried/ Professional?
RESPONSE Self employed/ Business owner Salaried Professional Any other Total
SHARE (%) 18.2 43.8 26.2 11.8 100
Interpretation: Most of the persons who own life insurance policies are salaried. This survey has been answered mostly by salaried and professionals.
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Que- What is your monthly income from all sources?
INCOME Less than Rs.15,000 Rs.15,000- Rs.25,000 Rs.25,000- Rs.50,000 Rs.50,000- Rs.1,00,000 Above Rs.1,00,000 Total
SHARE (%) 0.4 8.03 52.81 31.53 7.23 100
Interpretation: Most of the persons who are between the income range of 25000 -100000 avail life insurance. Very few persons having income less than Rs.15000 own life insurance policies.
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Que- How much tax do you pay ?
TAX Less than Rs.10,000 Rs.10,000- Rs.20,000 Rs.20,000- Rs.50,000 More than Rs.50,000 Total
SHARE (%) 18.44 37.68 32.87 11.02 100
Interpretation: Most of the persons who have filled this questionnaire pay a large amount of their income as tax.
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Que In which company do you have a life Insurance Policy from?
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LIFE INSURANCE COMPANY HDFC Standard Life Max New York Life ICICI Prudential Bharti AXA LIC Birla Sunlife Reliance Life Tata AIG SBI Life ING Vysya Bajaj Allianz Future Generali Kotak Mahindra Metlife Aviva Life Any other Total
NUMBER OF RESPONDENTS 59 42 33 26 116 25 21 47 14 24 9 25 22 17 19 1 500
SHARE (%) 11.8 8.4 6.6 5.2 23.2 5 4.2 9.4 2.8 4.8 1.8 5 4.4 3.4 3.8 0.2 100
Interpretation: LIC is the market leader.
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Que- Which investment plan have you taken /would you prefer?
INVESTMENT PLAN Pension plan Life time plan Child benefit plan Any other Total
SHARE (%) 5.6 70.4 15.2 8.8 100
Interpretation: While buying a life insurance policy people prefer to buy life time investment plan. Pension plan is the last option while buying a life insurance policy.
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Que- How did you buy the Insurance?
APPROACH OF BUYING INSURANCE POLICY You approached the insurance company (agent) Insurance company (agent) approached you Total
SHARE (%) 28.8 71.2 100
Interpretation: These days agents of insurance companies approach prospective buyers to buy their life insurance policy.
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Que- For how many years do you have insurance policy?
DURATION OF LIFE INSURANCE POLICY Less than 5 yrs 5-10 yrs 10-15 yrs Above 15 yrs Total
SHARE (%) 0.8 1.4 22.2 75.6 100
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Interpretation: People prefer buying life insurance policies of above 15 years. Very few people buy policy of less than 5years.
Que- Are you satisfied with your Life Insurance Policy?
SHARE (%) 87 13 100
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Interpretation: Usually people are satisfied with their life insurance policies. Very few people are not satisfied with their life insurance policy.
Que- Are you satisfied with your service agent?

72
SHARE (%) 76.6 23.4 100
Interpretation: Most of the people are satisfied with their agents. Very few people are not satisfied with their agents.
Que- How much is the motivator Tax saving important to you?
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TAX SAVING AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total
SHARE (%) 70.6 15.6 6.8 3.8 3.2 100
Interpretation: Tax saving is the most important point which a person considers while buying the life insurance policy.
Que- How much is the motivator Financial Security important to you?
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FINANCIAL SECURITY AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total
SHARE (%) 67.4 25.4 6.4 0.8 0 100
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Interpretation: Financial security is one of the main aspects which is considered while buying a life insurance policy.
Que- How much is the Insurance against health reelated expenses important to you?
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INSURANCE AGAINST HEALTH RELATED EXPENSES AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total
SHARE (%) 8.6 34 31.2 16.2 10 100
Interpretation: Insurance against health related expenses is an important point which is considered while buying a life insurance policy.
Que- How much is the motivator Safe investment important to you?
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SAFE INVESTMENT AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total
SHARE (%) 29 36.2 26.6 6.4 1.8 100
Interpretation: Every buyer ensures safety of his/her investment while buying a life insurance policy.
Que- How much is the motivator Saving for childrens education/needs important to you?
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SAVING FOR CHILDREN'S EDUCATION/NEEDS AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total
SHARE (%) 34.6 35.2 18.8 8.2 3.2 100
Interpretation: A person considers saving for his children education or needs while buying a life insurance policy.
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Que- How much is the motivator Lumpsum amount for your needs like house etc. important to you?
LUMP SUM AMOUNT FOR YOUR NEEDS LIKE HOUSE ETC. AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total
SHARE (%) 13.2 24.8 32.2 19 10.8 100
Interpretation: Lump-sum amount for need is not so important while buying a life insurance policy.
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Que- How much is the motivator Retirement planning important to you?
RETIRE MENT PLANNING AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total
SHARE (%) 23.85 31.86 22.04 14.83 7.41 100
Interpretation: Most of the people rank retirement planning as second while buying a life insurance policy.
Que- How much is the motivator Good returns important to you?
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GOOD RETURNS AS A MOTIVATOR 1st in importance 2nd in importance 3rd in importance 4th in importance 5th in importance Total
SHARE (%) 49.6 28.8 14 4.6 3 100
Interpretation: Good return is an important factor considered by customers while buying a life insurance policy.
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Que- Which of the following are the main barriers according to you in taking up Life Insurance?
BARRIERS IN TAKING UP LIFE INSURANCE Money gets tied up Difficult to get back money High premiums Low rate of returns Poor service by agents Lot of paperwork/formalities Unsure if family will get claim after death Unsure about private companies Dont know much about Life Insurance Value of policy reduces due to inflation Total
NUMBER OF RESPONDENTS 153 38 48 81 30 15 11 10 11 103 500
SHARE (%) 30.6 7.6 9.6 16.2 6 3 2.2 2 2.2 20.6 100
Interpretation: The problems faced by a life insurance policy holder are that money gets tied up and value of policy reduces due to inflation. Que- If you had to recommend a Life? Insurance company to someone, which company would it be?
83
LIFE INSURANCE COMPANY LIC HDFC Standard Life Kotak Life Insurance Max New York Life ICICI Prudential Birla Sunlife Reliance Life Bharti AXA Future Generali Tata AIG SBI Life ING Vysya Bajaj Allianz MetLife Aviva Life Total
NUMBER OF RESPONDENTS 216 126 34 36 20 14 7 5 0 8 1 7 7 4 15 500
SHARE (%) 43.2 25.2 6.8 7.2 4 2.8 1.4 1 0 1.6 0.2 1.4 1.4 0.8 3 100
Interpretation: LIC is the market leader.

Que- What is your main reason of choosing this company?
84
REASON High quality image Lowest charges/affordable policies Best customer service Innovative products/policies Total
SHARE (%) 57.4 12.4 13 17.2 100
Interpretation: LIC is the market leader due to its high quality image.
85
Que- Which statement describes LIC the best?
DESCRIPTION OF LIC This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 87.8 11.6 0 0.6 100
Interpretation: People firstly consider LIC while buying an insurance policy.
86
Que- Which statement describes HDFC Standard Life the best?
DESCRIPTION OF HDFC STANDARD LIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 23.4 63.8 1.2 11.6 100
Interpretation: Most of the people have heard about HDFC Standard Life but dont know much about it.
87
Que- Which statement describes Kotak Life Insurance the best?
DESCRIPTION OF KOTAK LIFE INSURANCE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHAR E (%) 25.8 72.8 0.2 1.2 100
Interpretation: Most of the people have heard about Kotak Life Insurance but dont know much about it.
88
Que- Which statement describes Max New York Life the best?
DESCRIPTION OF MAX NEW YORK LIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%)
72 411 6 11 500
14.4 82.2 1.2 2.2 100
89
Interpretation: Max New York Life is company about whom life

insurance policy buyers have heard but dont know much about it.
Que- Which statement describes ICICI Prudential the best?
DESCRIPTION OF ICICI PRUDENTIAL This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 22 74.8 1 2.2 100
Interpretation: People have heard about ICICI Prudential and will consider it while buying a life insurance policy.
90
Que- Which statement describes Birla SunLife the best?
DESCRIPTION OF BIRLA SUNLIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 14.2 80.2 2.2 3.4 100
91
Interpretation: Birla Sun Life is not so famous among life insurance

policy buyers.
Que- Which statement describes Reliance Life the best?
DESCRIPTION OF RELIANCE LIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 10.6 81.2 3.4 4.8 100
Interpretation: People have heard about Reliance life but dont know
much about it.
92
Que- Which statement describes Bharti AXA the best?
DESCRIPTION OF BHARTI AXA This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 12 77 5.8 5.2 100
Interpretation: Bharti AXA is a company about which people have

heard but dont know much about it.
93
Que- Which statement describes Future Generali the best?
DESCRIPTION OF FUTURE GENERALI This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 0 48.6 36.8 14.6 100
Interpretation: Most of the people have not heard about Future

Generali.
94
Que - Which statement describes TATA AIG the best?
DESCRIPTION OF TATA AIG This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 8 82.2 3.6 6.2 100
95
Interpretation: People have heard about TATA AIG but dont know
much about it.
Que- Which statement describes SBI Life the best?
DESCRIPTION OF SBI LIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 12.6 82.2 1.2 4 100
96
Interpretation: People would consider SBI life while buying a life

insurance policy.
Que- Which statement describes ING Vysya the best?
DESCRIPTION OF ING VYSYA This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company
SHARE (%) 10.6 83.8 1.8
97
I would never buy a policy from this company Total
19 500
3.8 100
Interpretation: People would consider ING Vysya while buying a life

insurance policy.
Que Which statement describes Bajaj Allianz the best?
DESCRIPTION OF BAJAJ ALLIANZ This is one of the company I would consider while buying a policy
NUMBER OF RESPONDENTS 53
SHARE (%) 10.6
98
I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
433 2 12 500
86.6 0.4 2.4 100
Interpretation: People have heard about Bajaj Alliance but dont know
much about it.
Que Which statement describes MetLife the best?
DESCRIPTION OF METLIFE 99
SHARE (%)
This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
42 423 15 20 500
8.4 84.6 3 4 100
Interpretation: People have heard about Met Life but dont know much
about it.
Que Which statement describes Aviva Life the best?
100
DESCRIPTION OF AVIVA LIFE This is one of the company I would consider while buying a policy I have heard about this company but dont know much about it I have never heard about this company I would never buy a policy from this company Total
SHARE (%) 26.65 68.14 1.6 3.61 100
Interpretation: A huge number of people would consider Aviva Life while buying a life insurance policy.
Que- Any suggestions for improvement?
101
SHARE (%) 3.8 96.2 100
Interpretation: Most of the people have not given any suggestions

for improvement.
Que Do you think there is any other better alternative to Life Insurance?
102
SHARE (%) 18.2 81.8 100
Interpretation: There is no other better alternative to life insurance

policy.
103
CHAPTER -7 Recommendations
104
RECOMMENDATIONS
1. 2. 3. 4. 5. The service agents should improve their services. The companies should spread more awareness and relax the product Charges of the insurance companies should be kept low. Better early returns might increase the sales More personalized follow up by the companies instead of sending
complications to make it easier to understand.
couriers for information would make the customers more aware of the product. 6. More branches should be opened in semi-urban areas
The major factors include sound economic fundamentals, a rising middleincome class, an improving regulatory framework and rising risk awareness. The groundwork for realising potential was arguably laid in 2000 when India undertook to open the domestic insurance market to private-sector and foreign companies. Since then, 13 private life insurers and eight general insurers have joined the Indian market. Important steps have thus been already taken, but there are still major hurdles to overcome if the market is to realise its full potential. Private insurers will have a key role to play in serving the large number of informal sector workers. The same is true for the health insurance business. In addition, the rapid growth of insurance business will put increasing pressure on insurers capital level. A key challenge for Indias non-life insurance sector will be to reform the existing tariff structure. It is also the responsibility of non-life insurers to help manage Indias high exposure to natural catastrophes. To do this, technical know-how and financial capability are imperative. International reinsurance could provide both, but there is currently only a limited scope for global reinsurers to
105
transfer risk efficiently in India at the moment. Reinsurance in India is mainly provided by the General Insurance Corporation of India (GIC), which receives 20% compulsory cessions from other non-life insurers. Finally, the largely underserved rural sector holds great promise for both life and non-life insurers. To unleash this potential, insurance companies will need to show long-term commitment to the sector, design products that are suitable for the rural population and utilise appropriate distribution mechanisms. Insurers will have to pay special attention to the characteristics of the rural labour force, like the prevalence of irregular income streams and preference for simple products, before they can successfully penetrate this sector Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer.
106
CHAPTER-8 Conclusion
107
CONCLUSIONS
Out of the 200 people surveyed, maximum were salaried i.e. 43.80% people were salaried. The monthly income of 52.81% from all sources was between Rs.25,000 and Rs.50,000. A very less percentage (0.40%) of people fell in the category of less than Rs.15,000 per month. 37.68% respondents pay their tax from Rs.10,000 to Rs.20,000. A very close 32.87% pay in between Rs.20,000 to Rs.50,000. When asked which companys life insurance policy did the respondent had, most of them (23.20%) replied LIC (Life Insurance Corporation of India). 70.40% respondents had taken/preferred a Life Time Plan instead of other plans such as Pension plan, Child Benefit plan etc. When questions regarding the approach of buying the insurance policy were put up, most of them i.e. 71.20% respondents said that the insurance company approached them. People preferred plans for long term i.e. 75.60% had taken a Life Insurance Policy for above 15 years. 87% respondents were satisfied with their Life Insurance policy while 13% were not. 76.60% respondents were satisfied with their service agents while 23.40% were not satisfied with their service agents. 70.60% respondents said that tax saving was the most important motivator for taking up a Life Insurance Policy. 67.40% said that financial security was the most important motivator. Insurance against health related expenses got a high importance i.e. 34% said it came 2nd in importance. Safe investment also was 2nd in importance with 36.20% respondents responding for it.35.20% said that saving for childrens education/needs was 2nd in importance while a close 34.60% said that it was the most important and relevant motivator. The main barriers while taking up a Life Insurance Policy were firstly that the money gets tied up and secondly that
108
the value of policy reduces due to inflation. When asked which company the respondent would recommend, most of them i.e. 43.20% said they would recommend LIC, reason being the high quality image.87.80% respondents said they would consider LIC while buying their Life Insurance Policy.84.60% said they have heard about MetLife but dont know much about this company. A huge percentage i.e. 36.80% said they had never heard of the company Future Generali.14.60% said they would never buy a policy from Future Genarali. People prefer other alternatives like investing in mutual funds, bonds, securities. They even plan to save money rather than taking up life insurance.
109
CHAPTER-9 Annexure
110
QUESTIONNAIRE
1.
Are you: Self employed/ Business owner Salaried Professional Any other ________________________(please specify)
2. What is your monthly income from all sources? Less than Rs.15,000 Rs.15,000- Rs.25,000 Rs.25,000- Rs.50,000 Rs.50,000- Rs.1,00,000 Above Rs.1,00,000
3. How much tax do you pay? Less than Rs.10,000 Rs.10,000- Rs.20,000
Rs.20,000- Rs.50,000 More than Rs.50,000
4. Do you have a Life Insurance policy? If yes, which company is it from? HDFC Standard Life SBI Life Max New York Life ING Vysya ICICI Prudential Bajaj Allianz Bharti AXA Future Generali LIC Kotak Mahindra Birla Sunlife Metlife Reliance Life Aviva Life Tata AIG Any other If no, which company would you prefer and why? _________________________________________________________________ _________________________________________________________________ ______________
5. 6.
Which investment plan have you taken/would you prefer? Pension plan Life time plan Child benefit plan Any other ________________________ (please specify) How did you buy the insurance? You approached the insurance company (agent)
111
Insurance company (agent) approached you
7. For how many years do you have insurance policy? Less than 5 yrs 10-15 yrs 5-10 yrs Above 15 yrs 8. 9. Are you satisfied with your Life Insurance policy? Yes No Are you satisfied with your service agent? Yes No
112
10. Following is the list of motivators for people who take Life Insurance. Rate them on a scale of 1-5 on their degree of relevance for you. (5-highest importance, 1-lowest importance) Motivators Tax saving Financial security Insurance against health related expenses Safe investment Saving for childrens education/needs Lump sum amount for your needs like house etc. Retirement planning Good returns 5 4 3 2 1
11. Which of the following are the main barriers according to you in taking up Life Insurance? Money gets tied up Lot of paperwork/formalities Difficult to get back money Unsure if family will get claim after death High premiums Unsure about private companies Low rate of returns Dont know much about Life Insurance Poor service by agents Value of policy reduces due to inflation 12. If you had to recommend a Life Insurance company to someone, which company would it be? ____________________________________ 13. What is your main reason for choosing this particular company? High quality image Best customer service Lowest charges/affordable policies Innovative products/policies
113
14. Please mark the statement which best describes the following Life Insurance companies according to you This is one of I have heard I have I would Life the company about this never never buy a Insurance I would company but heard policy from Companies consider dont know about this this while buying much about company company a policy it LIC HDFC Standard Life Kotak Life Insurance Max New York Life ICICI Prudential Birla Sunlife Reliance Life Bharti AXA Future Generali Tata AIG SBI Life ING Vysya Bajaj Allianz Metlife Aviva Life 15. Any suggestions for improvement? _____________________________________________________________________ _____________________________________________________________________ __________________ 16. Do you think there is any other better alternative to Life Insurance? If yes, which alternative and why? _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ ___________________________
114
17) Which bank is more secure according to you? a ICICI b HDFC c SBI d BOB
18) Which factors do you consider before opening account or in purchasing new plan in these bank? factor A Financial position B Current Market Position C Goodwill D Future prospects E Services provided sbi
factor A Financial position B Current Market Position C Goodwill D Future prospects E Services provided
hdfc
115
19Which is the first bank which comes to your mind while suggesting channel finance for your customers and reasons for the same? Sbi bank Hdfc bank.
20)Which bank have higher rates of interest, margin, processing charges in case of loans? Bank SBI HDFC IDBI Rate of Interest Margin Processing Charges Handling Charges
21)Which bank have more options for you in case of different loans? Different loans Auto loan Home loan Education loan Retail loan Sbi hdfc
22)How much is the time taken by other financial institutions in remitting payments ?
116
products Auto home Education retail others
Sbi
Hdfc
others
23)Which bank have better infrastructure facilities for their client? Sbi bank.. Hdfc bank..
24)Which institution is more liberal in sanctioning limit amounts as per recommendation of your and requirement of customers? Sbi bank Hdfc bank..
25)which bank have better service in case of customer relationship? Sbi bank.. Hdfc bank.
26)What is the time taken by banks in sanction loans to their customer? Bank Sbi bank Hdfc bank Axis bank others Time
117
27)On a scale of 10 where would you rate sbi and hdfc. 1 2 3 4 5 6 7 8 9 10
Sbi bank Hdfc bank..
28)what is the minimum limits for opening a saving account sbi hdfc
29)what is the minimum limit for opening a current account? Sbi Hdfc..
30)Gender of Home Loan taker
Sbi Male Female
hdfc
other
118
31) what is the customer service delivery by sbi and hdfc? Factor Speedly Normal Slow hdfc sbi
32)Suggestions/required changes for improvement in channel financing product. Sbi___________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ________________________________ hdfc__________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ _______________________________________
119
120
M os t Secure Bank ICICI HDFC SBI BOB 20%
25%
22%
33%
2) Which factors do you consider before opening account or in purchasing new plan in a sbi bank? A B C D E Financial position Current Market Position Goodwill Future prospects Services provided
121
Factors cons idered before opening an A ccount
12% 28% 8% Financial position Current M arket Pos ition Goodwill 22% Future pros pects Services provided
30%
3) Which type of service do you prefer the most from sbi and hdfc banks?
a ATM services b Internet banking
c Mobile banking
d Retail banking
122
M o s t Pre fe rre d Ba n kin g Se rv ic e A T M S erv ic e s In te rn et Ban kin g 7% 14% M o b ile Ba n kin g Re ta il Ba n kin g
11%
68%
9.Sweep-in-facility is it not available for all fixed deposit accounts? 10.Where is HDFC placed among the banks in India? 11.Who are HDFCs major competitors? 12.Which sector is HDFC targeting? Small scale, medium scale or large scale? 13.How deep is HDFCs dealing in the forex market? 14.CMS is one of our thrust areas. What is HDFC doing to promote this area? 15.How does HDFC market its products? Is HDFC planning to enter bank assurance
123
CHAPTER -10 Bibliography
124
REFERENCES
www.insurancepost.com www.tribuneindia.com www.licindia.org www.hdfcbank.com www.moneycontrol.com www.traderji.com
125

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HDFC

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A PROJECT REPORT ON STUDY OF FINANCIAL ANALYSIS OF LIFE INSURANCE IN INDIA In HDFC StandardLife SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT OF POST

GRADUATE PROGRAME IN MANAGEMENT

Name: Enroll. No:

served as my supervisor and guided and facilitated me. He

Page No. 8-28 29-38 39-44

a) b) c) d) e) f) i. ii. iii. iv. g)

45-61 62-100 101-103 104-106 107-111 112-113

CHAPTER 1 Introduction to the Industry

LIFE INSURANCE IN INDIA

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The distribution in the Indian market is as below:

BANCASSURANCE AND ITS FRAMEWORK

common distribution channel and for the same client base.

Refers to the selling of insurance policies through a banks established

Personal insurance - sky is the limit

The Indian insurance industry: challenges and prospects

CHAPTER -2 Introduction to the Company

ABOUT HDFC STANDARD LIFE INSURANCE

more than 23, 00,000 houses since its incorporation in 1977.

It currently has a customer base of around 7 million people who rely

Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's.

TRACK RECORD SO FAR

Mr. Deepak S. Parekh is the Chairman of the Company. He is also

Mr. Keki M. Mistry joined the Board of Directors of the Company in

Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She

is responsible for overseeing all aspects of lending operations of HDFC Limited.

Mr. Gerald E. Grimstone was appointed Chairman of Standard Life in

PRODUCTS OFFERED BY HDFC STANDARD LIFE INSURANCE

Operational & Financial Highlights

CHAPTER - 3 Research Methodology

To assess the nature of joint venture, investment pattern, entry

To study the types of benefits provided by insurance services.

We have taken questionnaire as our data collection tool.

Sampling unit may be a geographical one, such as

not sure about the answer the questionnaire.

CHAPTER - 5 Facts And Findings

Que Are you Self-employed/ Salaried/ Professional?

SHARE (%) 18.2 43.8 26.2 11.8 100

NUMBER OF RESPONDENTS 2 40 264 158 36 500

SHARE (%) 0.4 8.03 52.81 31.53 7.23 100

Que- How much tax do you pay ?

NUMBER OF RESPONDENTS 92 188 165 55 500

SHARE (%) 18.44 37.68 32.87 11.02 100

Que In which company do you have a life Insurance Policy from?

Que- How did you buy the Insurance?

APPROACH OF BUYING INSURANCE POLICY

144 356 500

28.8 71.2 100

SHARE (%) 0.8 1.4 22.2 75.6 100

Que- Are you satisfied with your service agent?

RESPONSE Yes No Total

NUMBER OF RESPONDENTS 383 117 500

SHARE (%) 76.6 23.4 100

Que- How much is the motivator Tax saving important to you?

NUMBER OF RESPONDENTS 353 78 34 19 16 500

SHARE (%) 70.6 15.6 6.8 3.8 3.2 100

SHARE (%) 8.6 34 31.2 16.2 10 100

SHARE (%) 29 36.2 26.6 6.4 1.8 100

SHARE (%) 34.6 35.2 18.8 8.2 3.2 100

RESPONDENTS 66 124 161 95 54 500

(%) 13.2 24.8 32.2 19 10.8 100

SHARE (%) 23.85 31.86 22.04 14.83 7.41 100

Que- How much is the motivator Good returns important to you?