Professional Documents
Culture Documents
Index: "Customers Attitude Towards HDFC Standard Life Insurance"
Index: "Customers Attitude Towards HDFC Standard Life Insurance"
INDEX
S. N. 1 2 3 4 5 6 7 8 9 10
CONTENTS Executive Summary Introduction to Topic Introduction Company Profile Research Design Data Analysis Findings Suggestions Conclusion Bibliography
PAGE NO. 1 4 10 32 57 60 81 83 85 87
Babasabpatilfreepptmba.com
Page 1
EXECUTIVE SUMMARY
Babasabpatilfreepptmba.com
Page 2
EXECUTIVE SUMMARY Now a day, the insurance sector is playing a vital role in the portfolio of finance sector. So insurance industry is much concentrating over analyzing customers attitude, which is very essential for the growth of the company, to take competitive advantage in the market.
Title of the Study: Customers Attitude towards HDFC Standard Life Insurance Statement of the Problem: The study has been undertaken to know the Customers
attitude towards HDFC Standard Life Insurance
Objectives of Study:
To study the customer awareness for HDFC Standard Life. To understand the customers attitude towards HDFC Standard Life brand. To know the customers attitude towards the products. To know the customers attitude towards the service provided by the company. To examine the consumers buying behavior. To know the factors which influenced the customers to purchase policy.
.Data Source: Secondary: Secondary data consists of readily available information on various web-sites, journals, insurance books & company database. Primary: Through survey method by using questionnaire
Sampling method:
Sample size: 100 samples Sample unit: Existing customers of HDFC Standard Life Insurance Page 3
Babasabpatilfreepptmba.com
Findings:
35% of policy holders are more concentrated on Unit linked plans, it is due to the reason that the returns on these policies are more compared to the traditional policies. The major competitors are LIC and ICICI Prudential. 79% of the respondents would like to invest up to 20% of their annual income in life insurance and keep the substantial part of the income for their livelihood.
Suggestions:
Service should focus on enhancing the customer experience and maximizing customer convenience. This calls for effective CRM system, which eventually would create sustainable competitive advantage and build long lasting relationship.
Conclusion:
Family welfare is the main factor, which investors think while investing in any life insurance company. But other factors such as returns, security, and tax benefit are also carrying almost same preference.
Babasabpatilfreepptmba.com
Page 4
Consumer behavior
Babasabpatilfreepptmba.com Page 5
Attitude
Attitude is a hypothetical construct that represents an individual's like or dislike for an item. Attitudes are positive, negative or neutral views of an "attitude object": i.e. a person, behavior or event. People can also be "ambivalent" towards a target, meaning that they simultaneously possess a positive and a negative bias towards the attitude in question. Attitudes are composed from various forms of judgments. Attitudes develop on the ABC model (affect, behavioral change and cognition). The affective response is a physiological response that expresses an individual's preference for an entity. The behavioral intention is a verbal indication of the intention of an individual. The cognitive response is a cognitive evaluation of the entity to form an attitude. Most attitudes in individuals are a result of observational learning from their environment.
Babasabpatilfreepptmba.com
Page 6
Babasabpatilfreepptmba.com
Page 7
Attitude Change
Babasabpatilfreepptmba.com Page 8
Babasabpatilfreepptmba.com
Page 9
Babasabpatilfreepptmba.com
Page 10
INTRODUCTION
INTRODUCTION TO INSURANCE
The business of insurance is related to the protection of the economic values of the assets. Every asset has a value the asset would have been created through the efforts of the owner. The asset is valuable to the owner because he expects to get some benefit from it. Insurance is a mechanism that helps to reduce the effect of such adverse situation. Babasabpatilfreepptmba.com Page 11
The risk only means that there is a possibility of loss or damage. The damage may or may not happen. Insurance is done against the contingency that it may happen. There has to be an uncertainty about the risk. Insurance is relevant only if there are uncertainties. In the case of a human being, death is certain, but the time of death is uncertain. In the case of a person who is terminally ill, the time of death is not uncertain, though not exactly known. Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril can sometimes be avoided, through better safety and damage control management. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on that asset. It only compensates the losses and that too, not fully. Only economic consequences can be insured. If the loss is not financial, insurance may not be possible.
Babasabpatilfreepptmba.com
Page 12
In India, insurance business is classified primarily as life and non-life or general. Life insurance includes all risks related to the lives of human beings and general insurance covers the rest. General insurance has three classifications is; Fire, Marine and Miscellaneous. Personal accident and sickness insurance, which are related to human beings, is classified as non-life in India, but is classified as life, in many other countries.
The business of insurance is nothing but one of sharing. It spreads losses of an individual over the group of individuals who are exposed to similar risks. People who suffer loss get relief because their loss is made good. People who do not suffer loss are relieved because they were spared the loss.
Protection - designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance. Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are whole life, universal life and variable life policies.
Babasabpatilfreepptmba.com
Page 14
The business of insurance is the protection of economic values of assets. Every asset is expected to last for a certain period of time during which it will perform. Insurance is a mechanism that helps to reduce the effect of such adverse situation. Insurance is relevant only if there are uncertainties. Life Insurers transact life insurance business; the rest is transacted by General Insurers. No composites are permitted as per law.
Babasabpatilfreepptmba.com
Page 15
INSURANCE COMPANIES (IC) receives, without much default, a steady cash stream of premium or contributions to pension plans. Various actuary studies and models enable them to predict, relatively accurately, their expected cash outflows. Liabilities of ICs being long-term or contingent in nature, liquidity is excellent and their investments are also long-term in nature. Since they offer more than the return on savings in the shape of life-cover to the investors, the rate of return guaranteed in their insurance policies is relatively low. Consequently, the need to seek high rates of returns on their investments is also low. The risk-return trade off is heavily tilted in favor of risk. As a combined result of all this, investments of insurance companies have been largely in bonds floated by GOI, PSUs.,state governments, local bodies, corporate bodies and mortgages of long term nature. The last place where Insurance companies are expected to be over-active is bourses. Lately ICs have ventured into pension schemes and mutual funds also. However, life insurance constitutes the major share of insurance business. Life Insurance depends upon the laws of mortality and there lies the difference between life and general insurance businesses. Life has to extinguish sooner or later and the claim in respect of life is certain. In case of general insurance, however, there may never be a claim and the amount can be ascertained in advance. Hence, Life Insurance Pension business also derives from life
Babasabpatilfreepptmba.com
Page 16
Babasabpatilfreepptmba.com
Page 17
Babasabpatilfreepptmba.com
Page 18
The first insurance police was issued in 1583 in England. In India insurance began in 1870 with life insurance being transacted by an English company the European and the Albert. The first Indian insurance company was the "Bombay mutual assurance society Ltd, formed in 1870.In 1956 LIC OF India was nationalized on 1/9/1956.
Some of the important milestones in the life insurance business in India are:
1818:-The British Introduce to India. With the establishment of the Oriental Life Insurance Company in Calcutta. 1850:- Non life insurance debuts, with Triton Insurance Company. 1870:- Bombay mutual Life Assurance Society is the first India owned life insurer. 1907:-Indian Mercantile Insurance is the first Indian non life insurer. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.
Babasabpatilfreepptmba.com
Page 20
Babasabpatilfreepptmba.com
Page 21
2) Competition: Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only One State Level Life Insurance Company should be allowed to operate in each state. 3) Regulatory Body:
Babasabpatilfreepptmba.com
Page 22
4) Investments: Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time)
5) Customer Service: LIC should pay interest on delays in payments beyond 30 days. Computerization of operations and updating of technology to be carried out in the insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.
Babasabpatilfreepptmba.com
Page 23
Most new insurers have entered into memoranda of understanding with banks to use their branches as outlets for marketing standard products. State Bank of India, Vysya Bank and J&K Bank already has joint ventures in life insurance. Vijaya Bank and Punjab National Bank are in the midst of finalizing life and non-life ventures.
The Insurance Act allows only those companies registered under the Companies Act to become corporate agents. This gives the new generation and old private sector banks a head start over Public sector banks, which are technically not eligible to sell risk products.
IRDA, IBA & RBI are in discussions to iron out the various issues, as public sector banks will play a key role in the distribution of products.
March 2003 Review: The Insurance Regulatory and Development Authority have said that a bank cannot enter into a referral arrangement with more than one life insurance company or more than one general insurance company. Insurance companies can enter into referral arrangements displaying the insurers publicity material in the branch premises.
According to the IRDA, the participation of the banks customers in any insurance scheme shall be purely on a voluntary basis and this fact should appear prominently in all publicity materials distributed by the bank and the insurer. According to latest IRDA circular, the total payout under the referral fee has been capped as a percentage of the
Babasabpatilfreepptmba.com
Page 24
Life insurers:
Babasabpatilfreepptmba.com
Page 25
1 2 3 4 5 6 7 8 9 10 11 12
101 104 105 107 109 110 111 114 116 117 133 135
23.10.2000 HDFC Standard Life Insurance Company Ltd. 15.11.2000 Max New York Life Insurance Co. Ltd. 24.11.2000 ICICI Prudential Life Insurance Company Ltd. 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited 31.01.2001 Birla Sun Life Insurance Company Ltd. 12.02.2001 Tata AIG Life Insurance Company Ltd. 30.03.2001 SBI Life Insurance Company Limited . 02.08.2001 ING Vysya Life Insurance Company Private Limited 03.08.2001 Bajaj Allianz Life Insurance Company Limited 06.08.2001 MetLife India Insurance Company Ltd. 04.09.2007 Future General India Life Insurance Company Limited 19.12.2007 IDBI Fortis Life Insurance Company Ltd.
Babasabpatilfreepptmba.com
Page 26
2. ICICI Prudential Life Insurance ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. Prudential plc established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policyholder and unit holders worldwide ICICI Prudential enjoys the second highest market share after Life insurance corporation. ICICI Prudential equity base stands at Rs. 925 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the period April-December 2004, the company garnered Rs 860 crore of new business premium for a total sum assured of over Rs 7,360 crore and wrote nearly 345,000
Babasabpatilfreepptmba.com
Babasabpatilfreepptmba.com
Page 28
New York Life: New York Life has grown to be a Fortune 100 company and an expert in life insurance. It was the first insurance company to offer cash dividends to policy owners. In 1894, New York Life pioneered the then unheard-of concept of insuring women at the same rate as men. Thereafter, it continued to introduce a series of firsts - a disability benefit clause in 1920, unemployment insurance in 1992, and complete customer care on the Web in 1998. Today New York Life has over US billion in assets under management and over 30,000 agents and employees worldwide. The October 2000 Fortune Survey named New York Life amongst the top three most admired life and health insurance companies worldwide. With over 3 million policyholders, New York Life is a leading provider of insurance in a host of countries worldwide. 6 Aviva Life Insurance India: Aviva Life Insurance India is joint venture between Dabur, one of India's oldest and largest groups of companies and Aviva. Aviva plc. is UKs largest insurer. In accordance with government regulations, Aviva holds a 26 percent stake in the new venture and Dabur holds a 74 percent share.
Aviva:
Babasabpatilfreepptmba.com
Page 29
ING Vysya Bank Limited: It is one of India's premier private sector banks with a heritage of over 70 years. With 1.5 million customers, 480 outlets and 6000 employees it is known for its innovative banking services and for pioneering several products and services. ING Vysya Bank has a longstanding relationship with its customers and deep understanding of the Indian market.
GMR Group:
Babasabpatilfreepptmba.com
Page 30
8 MetLife India Insurance Pvt. Company: MetLife India was incorporated as a joint venture between MetLife International Holdings, Inc., Jammu & Kashmir Bank, M Pallonji & Co. and other private investors. MetLife India is headquartered in Bangalore with offices and presence in major Indian cities, and additional 1000 outreach points through its channel partners.
MetLife: Ranked 38 on the Fortune 500 list (April 2003), MetLife, Inc. (MetLife) is one of the worlds largest, strongest and most respected financial organizations. MetLife, through its affiliates, is the number 1 life insurer in the U.S. with approximately $2.4 trillion of life insurance in force (as of December 2002) and has been delivering reliable, high quality service to customers since 1868. The MetLife companies serve approximately 12million individuals in the U.S. as well as the employees of 88 of the Fortune 100 companies. Headquartered in New York, MetLife operates through its affiliates and subsidiaries in 12 countries across the Americas, Europe and Asia. 9 Allianz Bajaj Life Insurance Co. Allianz Bajaj Life Insurance Co. Ltd. is a joint venture between two leading conglomerates- Allianz AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world.
Foreign Partner:
Babasabpatilfreepptmba.com
Page 31
10 SBI Life Insurance Company Ltd: SBI Life Insurance Company Ltd. is a joint venture between India's largest bank, State bank of India (SBI) & Cardiff S.A., a leading Life Insurance company in France. State Bank of India (SBI) is a household name, and it stands as the last word for financial strength and security in the country. SBI's illustrious background dates back to the year 1806 when it started business, as a presidency bank, known as Bank of Bengal.
Over the long journey, it has learnt to combine the best of banking practices handed down from the imperial management with the more dynamic ways of doing banking in the modern India. It has grown as a responsible giant in the banking field over the years.
Babasabpatilfreepptmba.com
Page 32
COMPANY PROFILE
Babasabpatilfreepptmba.com
Page 33
In order to survive in the insurance segment, HDFC had to introduce new products. They were looking for a robust and integrated solution to support the new
Babasabpatilfreepptmba.com
Page 34
HDFC Standard Life Insurance is one of the leading private life insurance companies. The company generated premium from new business of Rs. 486 Cr in 2004-05, registering a year-on-year growth of over 132%. The total premium income (including renewal premium) grew by 130% to touch a figure of Rs. 687 Crores. The company also achieved a major milestone during the financial year by crossing a Sum Assured figure of Rs. 30,000 Cr. The company also declared its fifth bonus for participating policyholders. HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service associates in Kuwait, Oman and Qatar.
Babasabpatilfreepptmba.com
Page 35
Babasabpatilfreepptmba.com
Page 36
Key Values:
SECURITY: Providing long term financial security to our policy holders will be our constant Endeavour. We will be doing this by offering life insurance and pension products. TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust. INNOVATION: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs. Our mission is to be the best new life insurance company in India and these are the values that will guide us in this.
Board Members
Babasabpatilfreepptmba.com
Page 37
Key strengths:
Financial Expertise
Babasabpatilfreepptmba.com
Page 38
Range of Solutions
We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.
Our cumulative premium income, including the first year premiums and renewal premiums is Rs. 672.3 Crores for the current financial year, Apr-Nov 2005. We have covered over 11, 00,000 individuals out of which over 3, 40,000 lives have been covered through our group business tie-ups.
New Business Premium Income up by 63% to Rs. 2,685 crores. Total Premium Income is up by 70% @Rs. 4,859 crores as against Rs. 2,856 crores in FY2006-07 Babasabpatilfreepptmba.com Page 39
Alternate Channels including banc assurance has recorded an impressive growth of over 63% to contribute 41% to the Effective Premium Income (EPI) Group business funds under management have increased to Rs. 959 crores, registering a growth of 83% over FY2006-07 The average premium has increased to Rs. 33,000 Company products and services are now available in 726 cities and towns across the country Strength of Financial Consultants has increased to 1,45,000
HDFC Standard Life tracks its New Business Premium on the basis of Effective Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single Premium policy and is an internationally
Babasabpatilfreepptmba.com
Page 40
Investment Plans:
o
Pension Plans:
Personal Pension Plan Unit Linked Pension Plan Unit Linked Pension Plus
Savings Plans:
o o o o o o o
Endowment Assurance Plan Unit Linked Endowment Unit Linked Endowment Plus Money Back Plan Children's Plan Unit Linked Young star Unit Linked Young star Plus
GROUP PRODUCTS
o o
Babasabpatilfreepptmba.com
Page 41
OTHER PRODUCTS
INDIVIDUAL PRODUCTS:
For individuals, they have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. You can choose from a range of products to suit your life-stage and needs. HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.
Protection Plans
One can protect their family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.
Investment Plans
Single Premium Whole of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses.
Babasabpatilfreepptmba.com
Page 42
Savings Plans
Savings Plans offers flexible options to build savings for ones future needs such as buying a dream home or fulfilling your childrens immediate and future needs. Savings range includes Endowment Assurance Plan, Unit Linked Endowment Assurance Plan, Money Back Plan, Childrens Plan, Unit Linked Young star Plan.
GROUP PRODUCTS:
For organizations they have a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company.
Some of the group products to our esteemed corporate clients: Group Term Insurance :
Whatever the business Its the people who make it a success. Everybody requires Some type of life insurance, especially when others depend on them financially.
Babasabpatilfreepptmba.com
Page 43
INDIVIDUAL PRODUCTS:
Term Assurance Plan If you have a family that you care for, you should consider what would happen in case of your unfortunate death. The emotional void cannot be filled, but financial insecurity can be avoided. By taking this affordable life insurance plan, you can provide for the wellbeing of your family in case of your unfortunate death. This plan comes to you at a Minimal cost and is well-suited for the value-conscious customer. Under this plan, a sum assured is payable in case of death of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to one's family in the unfortunate event of one's death. Since this non-participating (without profits) plan is a pure risk cover plan, no benefits are payable on survival to the end of the term of the policy. Term Assurance Plan: Babasabpatilfreepptmba.com Page 45
Babasabpatilfreepptmba.com
Page 46
The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment.
The HDFC Unit Linked Pension Plan is an insurance policy, which benefits you in the following ways:
Provides a post retirement income for life Gives you the flexibility to plan your retirement date Gives you the freedom to invest premiums as per your preference Offers you potentially higher market linked returns Give you tax benefits on your premiums and on receiving the lump sum
Easy steps to get insured are: Choose your retirement age Choose the premium you wish to invest, based on your retirement needs. Choose the investment fund or funds you desire.
CHILDREN'S PLAN:
Babasabpatilfreepptmba.com
Page 49
The HDFC Childrens Plan is designed to secure your childs future by giving your child (the beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunate demise, early in the policy term. The premiums, paid by you, are invested by the company to give you good long-term returns. The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment (See Bonuses for more details).
Babasabpatilfreepptmba.com
Page 50
UNIT LINKED YOUNG STAR PLAN: As a parent, your priority is your childrens future and being able to meet their dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much you will need when your children take these important steps in life. Plan today to ensure a bright future for your children. Start building savings today with the HDFC Unit Linked Young Star Plan. So that your child is able to lead a life of respect and dignity with a secured financial future.
The HDFC Unit Linked Young Star Plan gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Valuable protection in case of the insured parents unfortunate demise Very flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover You can choose your premium and the investment fund or funds. We will then invest your premium, net of charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds In case of your unfortunate demise during the policy term, HDFC Standard Life will continue the policy and continue to pay the original premiums you had chosen.
Babasabpatilfreepptmba.com
Page 51
The table below will help you identify and classify some of your financial goals. You can prioritize these goals and set your objectives accordingly (see indicative table given below). LONG-TERM GOALS SHORT TERM GOALS
Provide adequate cover for Life, Critical Buying a car Illness or disability. Saving for big-ticket assets like your Saving for your marriage house. Saving for your childrens education Vacation abroad Having a regular system for savings
Babasabpatilfreepptmba.com
Page 52
Babasabpatilfreepptmba.com
Page 53
Babasabpatilfreepptmba.com
Page 54
Unit Linked Savings Plan Tops Mint Best TV Ads Survey The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading private insurance companies in India, has topped Mints Top Television Advertisement survey conducted, for February 2008. HDFC Standard Lifes Unit Linked Savings Plan advertisement was ranked 4th in terms of a combined score of ad awareness and brand recall and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, and claim). The respondents were between 18 and 40 years. Mints exclusive report, New Voices in a makeover outlines the survey in detail.
2008
Mr. Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro Awards function. The award celebrates excellence in individual performance and highlights the quality achievements of extraordinary individuals in an era of global competition and expectations.
December,
2007
Pension Plan Tops Mints Survey of Best TV Ads HDFC Standard Lifes pension plans topped the ad diagnostics and ranked eighth on ad reach in a survey of new television advertisements in November, 2007, conducted by Mint, the leading business newspaper of the Hindustan Times Group. Our pension advertising was ranked first in terms of ad diagnostic scores (likeability, credibility, enjoyment). The respondents were between 18 and 40 years. We were ranked 8th in terms of a combined score of ad awareness and brand recall.
2007
Babasabpatilfreepptmba.com
Page 56
HDFC Standard Life was ranked 6th amongst The 10 most effective ads in September 2007, according to the JuxtConsults Ad Box Office Monthly Monitor. We have moved up from 56th position in August 2007. JuxtConsults Ad Box Office is Indias biggest monthly monitor of most effective television ads amongst urban consumers. The ranking was based on the total effectiveness of the ad in connecting the Sar Utha Ke Jiyo ranked 10th in the Top 10 Top-of-mind ad slogans in September, 2007, according to the JuxtConsults Ad Box Office Monthly Monitor . The ranking was based on how much our ad slogan recalled top of mind in the daily ad clutter.
2007
HDFC Standard Life received the PCQuest Best IT Implementation Award 2007 for Wonders, its path-breaking implementation of an enterprise-wide workflow system. PCQuest, the leading IT publication from the Cyber Media Group identified six most innovative IT implementation projects deployed successfully across India for the award. The winners of the 4th PCQuest Best IT Implementation Awards were chosen from 250 nominations across 22 industries and 23 projects ranging from government, banking finance and insurance, manufacturing, petroleum, and IT/ITES to poultry, travel and tourism, real estate, construction, power and utilities.
Babasabpatilfreepptmba.com
Page 57
RESEARCH DESIGN
Babasabpatilfreepptmba.com
Page 58
Objectives of Study:
To study the customer awareness for HDFC Standard Life. To understand the customers attitude towards HDFC Standard Life brand. To know the customers attitude towards the products. To know the customers attitude towards the service provided by the company. To examine the consumers buying behavior. To know the factors which influenced the customers to purchase policy.
Data Source:
The sources of data collected are: Secondary Data: Information is collected through internet From various text books Journals and magazines
Babasabpatilfreepptmba.com
Page 59
Method of Communication:
In order to minimize the bias in data collection, the method of personal interaction was adopted.
Babasabpatilfreepptmba.com
Page 60
DATA ANALYSIS
Babasabpatilfreepptmba.com
Page 61
Age Frequency 41 34 17 8 100 Percent 41.0 34.0 17.0 8.0 100.0 Valid Percent 41.0 34.0 17.0 8.0 100.0 Cumulative Percent 41.0 75.0 92.0 100.0
Valid
Age
50-60 8.0% 40 - 50 17.0% 20 - 30 41.0%
30 -40 34.0%
Analysis: From the pie chart it depicts that majority of Customers age is in between 20 40 age.
Babasabpatilfreepptmba.com
Page 62
Valid
Sex
Female 28.0%
Male 72.0%
Analysis Out of 100 Respondents 72% of respondents are male 28% of respondents are female
Babasabpatilfreepptmba.com
Page 63
Valid
Marital Status
Unmarried 33.0%
Married 67.0%
Babasabpatilfreepptmba.com
Page 64
Valid
Education
Proffesional 5.0%
Graduate 41.0%
Babasabpatilfreepptmba.com
Page 65
Valid
Occupation
Government Employee 10.0% Other 31.0% Business 26.0%
Out of 100 Respondents 10% of respondents are Government employees 26% of respondents are Business 28% of respondents are Private employee 5% of respondents are Professionals 31% of respondents are others
Babasabpatilfreepptmba.com
Page 66
Valid
Annual Income
Abow 4l akhs 2.0% 3 - 4Lakhs 13.0% Below 1 Lakh 28.0%
2 - 3 Lakhs 27.0%
1- 2lakhs 30.0%
Out of 100 respondents the pie chart depicts that majority of respondents have annual income of 1-2 lakhs per annum.
Babasabpatilfreepptmba.com
Page 67
100
100 75 Series1 14 22 27 22 8 7 5 12 10 5
FC HD
LI C
Babasabpatilfreepptmba.com
Page 68
3 9 61 0 6
Others 8% Metlife 0%
TATAAIG 4%
The chart depicts that the customers of HDFC Standard Life are also having policies in the other companies this indicates that the customers opt for different plans which they prefer in other companies.
Babasabpatilfreepptmba.com
Page 69
Valid
Most of the customers would like to invest up to 20% and keep the substantial part of the income for their livelihood.
Babasabpatilfreepptmba.com
Page 70
Valid
According to the analysis, unit linked plan has captured the mindsets of the customers compared to traditional plans
Babasabpatilfreepptmba.com
Page 71
Valid
Service 19.0%
Saving 8.0%
Most of the customers (48%) invest in HDFC Standard Life Insurance for getting high returns on investment. And minority is 8% of respondents have invested in HDFC Standard Life for savings purpose.
Babasabpatilfreepptmba.com
Page 72
Valid
Chart indicates that majority of customers have come to know about HDFC Standard Life Insurance from their Family& Friends.
Who influences you, while making purchase decision (Company / policy decision)?
Babasabpatilfreepptmba.com
Page 73
Valid
Analysis Out of 100 Respondents 40%&of respondents have been influenced by reference groups while making purchase decision (company /policy decision) 51% of respondents have been influenced from Financial Consultants while making purchase decision (company /policy decision)
Babasabpatilfreepptmba.com
Page 74
Valid
Yes No Total
Yes 79.0%
Analysis: 79 % of respondents have positive attitude towards HDFC Standard Life that they willingness to recommend HDFC Standard Life to others. 21% of respondents have not going to recommend HDFC Standard Life.
Babasabpatilfreepptmba.com
Page 75
Valid
Analysis : Out of 100 Respondents majority of the customers strongly agree saying that it is easy to invest in HDFC Standard Life Insurance.
HDFC Standard Life maintains good relation with Customer (After sales service).
Babasabpatilfreepptmba.com
Page 76
Valid
Agree 53.0%
Analysis: 68% of respondents (15% strongly agree + 53% Agree) have positive attitude towards service provided by the company. 32% of respondents have not in a position to decide the service provided by the company.
You buy HDFC Standard Life products because it gives. High Return on investment
Babasabpatilfreepptmba.com
Page 77
Valid
Agree 32.0%
Analysis:
57% of customers have taken HDFC Standard Life Insurance products for high return on investments and strongly agree with that.
You buy HDFC Standard Life products because it gives. High Security
Babasabpatilfreepptmba.com
Page 78
Valid
High security
Neither Agree nor Di 9.0%
Agree 51.0%
Analysis:
Majority of the customers agree with the security of their investment made in HDFC Standard Life insurance and a substantial part of the customers strongly agree with that.
You buy HDFC Standard Life products because it gives. Good Service
Babasabpatilfreepptmba.com
Page 79
Valid
Good Service
Disagree 1.0% Neither Agree nor Di 30.0% Stronly Agree 17.0%
Agree 52.0%
Out of 100 Respondents 69% of respondents have positive attitude towards service provided by the company. 30% of respondents have not in a position to decide the service provided by the company. 1% respondent have negative attitude towards service provided by the company.
You buy HDFC Standard Life products because it gives Tax benefit
Babasabpatilfreepptmba.com
Page 80
Valid
Tax benefit
Neither Agree nor Di 5.0% Agree 36.0%
Analysis Out of 100 Respondents 59% of respondents are strongly agree. 36% of respondents are Agree. 5% of respondents are neither agree nor disagree.
Babasabpatilfreepptmba.com
Page 81
FINDINGS
Findings
Babasabpatilfreepptmba.com
Page 82
Babasabpatilfreepptmba.com
Page 83
SUGGESTIONS
Suggestions
Company has to create sense of security among the customers. Because most of the people fear about security in Private life insurance companies. So Company
Babasabpatilfreepptmba.com
Page 84
Service should focus on enhancing the customer experience and maximizing customer convenience. This calls for effective CRM system, which eventually would create sustainable competitive advantage and build long lasting relationship. Whenever company launches new products, company should conduct some Events for existing customers, which ensures direct interaction with existing customers.
Babasabpatilfreepptmba.com
Page 85
CONCLUSION
Conclusion
HDFC Standard Life Insurance Company is well structured company in all respects it has got well-organized distribution system. It has also a proper procedure for running activities systematically. The major competitors are LIC and ICICI Prudential. Financial consultants are the one who influence the customers decision. Maximum Babasabpatilfreepptmba.com Page 86
BIBLIOGRAPHY
Babasabpatilfreepptmba.com
Page 87
Bibliography:
Books: Marketing Management: Philip Kotler Marketing Research: Tull and Hawkins Magazines/Journals: Insurance watch IRDA journal Website: Babasabpatilfreepptmba.com Page 88
ANNEXURE
Babasabpatilfreepptmba.com
Page 89
Babasabpatilfreepptmba.com
Page 90
Address: ____________________________ ____________________________ Sex: Male ( ) Female ( ) Marital status: Married ( ) Unmarried ( )
Education: Graduate ( ) Post graduate ( )Under Graduate ( ) Professional( ) Occupation: Government Employee ( ) Business ( ) Private Employee ( ) Professional ( ) Others ( ) Annual Income: Below1lakh ( ) 3-4 lakhs ( ) 1-2 lakhs ( ) 2-3 lakhs ( ) Above 4 lakhs ( )
1. Can you mention the names of Life Insurance companies? ________________________________________ 2 In which company you have invested? HDFC Standard life ( ) Tata AIG ( ) LIC of India ( ) MetLife ( )
3.
What % of your savings would you like to invest in Life insurance Policy annually? Nothing ( ) Up to 20% ( ) 21 % -30% ( ) 31%- above ( )
4. Which policy have you taken from HDFC Standard Life? Pension plan ( ) Children plan ( ) Protection plan ( ) Investment plan ( ) Unit Link ( ) Other_____________ 5. Specify the reason for investing in HDFC Standard Life?
Babasabpatilfreepptmba.com
Page 91
6. How did you come to know about HDFC Standard Life? Periodicals ( ) Family & Friends ( ) Financial Consultant ( ) Advertisement ( ) Others _____________ 7. Who influences you, while making purchase decision (Company / policy decision)? Friends & Colleague ( ) Family & Relatives ( ) Financial Consultants ( ) Advertisements ( ) Others _____________ 8. Would you like to recommend HDFC Standard Life to others? Yes ( ) No ( ) Reason: _________________________________ __________________________________ 9. It is easy to invest in HDFC Standard Life. Strongly agree ( ) Agree ( ) Neither agree nor disagree ( ) Disagree ( ) Strongly disagree ( ) 10. HDFC Standard Life maintains good relation with Customer (after sales service). Strongly agree ( ) Agree ( ) Neither agree nor disagree ( ) Disagree ( ) Strongly disagree ( )
Babasabpatilfreepptmba.com
Page 92
12. Which kind of facility do you expect from HDFC Standard Life? ____________________________________________ ____________________________________________ ____________________________________________
Babasabpatilfreepptmba.com
Page 93