A RESEARCH PROJECT REPORT

ON

COMPRATIVE ANALYSIS OF INSURANCE COMPANIES

Submitted in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

(2015-2017)

UNDER THE GUIDANCE OF

Mr. AVDHESH KUMAR TIWARI

Assistant Professor

Submitted by

SHIVAM
Roll. No. 1571470159

KANPUR INSTITUTE OF MANAGEMENT STUDIES

(AFFILIATED TO Dr. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY,

LUCKNOW)

1
 INSTITUTE CERTIFICATE

This is to certify that Mr. Shivam, Roll number 1571470159, a student of MBA in Kanpur

Institute of Management Studies, has carried out the Summer Training Project work presented

in this report titled COMPRATIVE ANALYESIS OF INSURANCE COMPANIES,for the

award of Master of Business Administration from Dr.A.P.J.Abdul Kalam Technical University

for the academic batch 2016-17, under my guidance.

Name of the Project Guide

Avdhesh Kumar Tiwari

Altaf Quaiyum (Dean (Academic)

Kanpur Institute of Management Studies
Unnao.
Date:

ACKNOWLEDGEMENT

2
I would like to express my Acknowledgement to those people, without whose contribution,

Support and guidance this Report would not have seen the light of the day. Notable among

them are Mr. Avdhesh Kumar Tiwari. who was my Project Guide and who helped me in a

lot. I am also thankful and would like to express my Gratitude to the Honorable

Mr. Avdhesh Kumar Tiwari and the entire Institute for giving me a Platform to have this

wonderful opportunity and being able to get a glimpse of the Corporate World.

DECLARATION

3
The project report on COMPRATIVE ANALYSIS OF INSURANCE COMPANY, is the

original work done by me. This is the property of the institute and use of this report without

prior permission of the Institute will be considered illegal and actionable.

DATE:-

PLACE:-

INDEX

S.No Topics

4
 (i)
Institute Certificate
(ii)
Acknowledgement
Student Declaration (iii)

1. Introduction (6-9)
Objective of the Study (10-11)

2. Industry Profile (12-18)

3. Company Profile (19-43)

4. Competitors (44-62)

5. Research Methodology (63-65)

Data Analysis and
6. (66-72)
Interpretation
7. Finding (73-75)

8. Suggestions (76-77)

9. Conclusion (78-81)

10. Appendix (82-84)

11. Bibliography (85-86)

5
INTRODUCTION

6
 GENERAL INTRODUCTION

Insurance is a protection against financial loss arising on the happening of an unexpected

event. You cannot take anything for granted in life. Insurance is system by which the losses

suffered by a few are spread over many, exposed to similar risks. Insurance policies are a

safeguard against the uncertainties of life. Insurance policy helps in not only mitigating risks

but also provides a financial cushion against adverse financial burdens suffered. Insurance

policies cover the risk of life as well as other assets and valuables such as home, automobiles,

jewelry etc. Insurance policies can be classified into two categories. Which are given below: -

Life Insurance Policy

General Insurance Policy

Life insurance is a guarantee that your family will receive financial support, even in your

absence. It thus protects to your family from the financial crises. It serves as a protective cover

to your family, life insurance acts as flexible money-saving scheme, which empowers you to

accumulate wealth-to buy a new car, get your children marriage and even retire comfortably.

Life insurance also triples up as an ideal tax-saving scheme.

Need of Life Insurance

In modern day investments include gold, property, fixed income instruments, mutual funds and

of course, life insurance. Given the excess of choices, it becomes very important to make the

right choice when investing your hard-earned money. Life insurance is a unique investment

that helps you to meet your dual needs - saving for life's important goals, and protecting your

assets.

Some unique benefits of life insurance in detail:-Asset Protection

7
 From an investor's point of view, an investment can play two roles - Asset Appreciation and

Asset Protection. Most of the financial instruments have the underlying benefit of asset

appreciation. Life insurance is unique in that it gives the customer the reassurance of asset

protection, along with a strong element of asset appreciation.

Life insurance or Life Assurance is a contract between the policy owner and the insurer,

where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's

or individuals' death. In return, the policy owner (or policy payer) agrees to pay a stipulated

amount called a premium at regular intervals or in lump sums (so-called "paid up" insurance).

There may be designs in some countries where: (Assets, Bills, and death expenses plus

catering for after funeral expenses should be included in Policy Premium. Anyone whose

assets equal more than the value of their primary residence should not be compensated beyond

that value in case they cannot sell their house. In the case of those who have lost their spouse

should be compensated also for one full year the wages of their spouse which would or should

be included to avoid lawsuits.) However in the United States, the predominant form simply

specifies a lump sum to be paid on the insured's demise.

As with most insurance policies, life insurance is a contract between the insurer and the policy

owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries)

if an insured event occurs which is covered by the policy. To be a life policy the insured event

must be based upon life (or lives) of the people named in the policy.

Insured events that may be covered include:

1. Death

2. Accidental death

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3. Sickness

Life policies are legal contracts and the terms of the contract describe the limitations of the

insured events. Specific exclusions are often written into the contract to limit the liability of the

insurer; for example claims relating to suicide (after 2 years suicide has to be paid in full) (in

India after one year Suicide is covered), fraud, war, riot and civil commotion.

9
OBJECTIVE

OF

THE STUDY

10
 OBJECTIVES OF THE STUDY

The main objective of the project report is to study the basic concepts relating

to insurance business.

The importance of insurance in society.

The basic elements of life insurance products and the different kinds of life

insurance products offered.

The various documents used in connection with life insurance and there

importance.

Objectives relating to the company in concern i.e. Future Generali life insurance

company are to study its vision and mission, products offered, its present status and

future plans.

The main focus is also on the practical experience gained in training sessions

and description of the live experiences.

11
INDUSTRY PROFILE

12
 INDUSTRY PROFILE

General Introduction

Insurance

Life is not a coaster ride and is full of twists and turns. You cannot take anything for granted in

life. Insurance industry is a safeguard against the uncertainties of life.

Insurance is a system by which the losses suffered by a few are spread over many, exposed to

similar risks. Insurance is a protection against financial loss arising on a happening of an

unexpected event. Insurance industry helps in not only

mitigating risk but also provides a financial cushion against adverse financial burden suffered.

The insurance sector in India has come a full circle from being an open competitive market to

nationalization and back to a liberalized market again. Tracing the developments in the Indian

insurance sector reveals the 360 degree turn witnessed over a period almost two centuries.

Origin and development of the industry:

The insurance sector in India has come a full circle from being an open competitive

market to nationalization and back to a liberalized market again. Tracing the

developments in the Indian insurance sector reveals the 360-degree turn witnessed over

a period of almost two centuries.

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 A brief history of the Insurance industry:

The business of life insurance in India in its existing form started in India in the year

1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with

the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz. LIC

Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the

Triton Insurance Company Ltd., the first general insurance company established in the

year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact

all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

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 1968: The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised

the general insurance business in India with effect from 1st January 1973. 107 insurers

amalgamated and grouped into four companies viz. the National Insurance Company

Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd.

and the United India Insurance Company Ltd. GIC incorporated as a company.

ORIGIN AND DEVELOPMENT OF THE ORGANIZATION-

In 1818 the British established the first insurance company in India in Calcutta, the Oriental

Life Insurance Company. First attempts at regulation of the industry future generali indiare

made with the introduction of the Indian Life Assurance Companies Act in 1912. A number

of amendments to this Act future generali indiare made until the Insurance Act was drawn up

in 1938. Noteworthy features in the Act future generali indiare the pofuture generali indiar

given to the Government to collect statistical information about the insured and the high

level of protection the Act gave to the public through regulation and control. When the Act

was changed in 1950, this meant far reaching changes in the industry. The extra requirements

included a statutory requirement of a certain level of equity capital, a ceiling on share

holdings in such companies to prevent dominant control (to protect the public from any

adversarial policies from one single party), stricter control on investments and, generally,

much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance

companies. Business was heavily concentrated in urban areas and targeted the higher

echelons of society. Unethical practices adopted by some of the players against the interests

of the consumers then led the Indian government to nationalize the industry. In September

1956, nationalization was completed, merging all these companies into the so-called Life
15
 Insurance Corporation (LIC). It was felt that nationalization has lent the industry fairness,

solidity, growth and reach.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life

insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective

of protecting the interests of the insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance companies.

GROWTH AND PRESENT STATUS OF THE INDUSTRY

In todays corporate and competitive world insurance sector has the maximum growth and

potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80%

while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me

to enter in this sector and insurance has given me the opportunity to work and

get experience in highly competitive and enhancing sector.

The success story of good market share of different market organizations depends upon the

availability of the product and services near to the customer, which can be distributed through

a distribution channel. In Insurance sector, distribution channel includes only agents or agency

holders of the company. If a company like FUTURE GENERALI INDIA, HDFC STANDARD

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 LIFE INSURANCE, TATA AIG, MAX etc have adequate agents in the market they can

capture big market as compared to the other companies.

Agents are the only way for a company of Insurance sector through which policies and

benefits of the company can be explained to the customer.

FUTURE OF INDUSTRY

The introduction of private players in the industry has added to the colors in the dull

industry. The initiatives taken by the private players are very competitive and have given

immense competition to the on time monopoly of the market LIC. Since the advent of the

private players in the market the industry has seen new and innovative steps taken by the

players in this sector. The new players have improved the service quality of the insurance. As a

result LIC down the years have seen the declining phase in its career. The market share was

distributed among the private players. Though LIC still holds the 75% of the insurance sector

but the upcoming natures of these private players are enough to give more competition to LIC

in the near future. LIC market share has decreased from 95% (2002-03) to 82 %( 2004-05).

17
COMPANY

PROFILE

18
 COMPANY PROFILE

ORIGIN OF THE ORGANIZATION

Few men in history have made as dramatic a contribution to their countrys

economic fortunes as did the founder of Future Group, Mr. Kishore Biyani. Fewer still

have left behind a legacy that is more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the

true genius of The corporate visionary, the unmatched strategist, the proud patriot, the

leader of men, the architect of Indias capital markets, and the champion of shareholder

interest. But the role Biyani cherished most was perhaps that of Indias greatest

wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias

largest private sector enterprise.

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Future Generali is an insurance joint venture headquartered in Mumbai, India between the Italy-

based Generali Group and the India-based Future Group. Future Generali operates Life and Non-

Life insurance businesses through Future Generali India Life Insurance Co. Ltd. and Future

Generali India Insurance Co. Ltd.

The Generali Group is one of the most significant participants in the global insurance and

financial product markets and is ranked as the 30th largest company in the world by Fortune

(2007). The Groups Parent and principal operating Company Generali is Assicurazioni Generali,

market leader in Italy, founded in 1831 in Trieste.

Characterized from the outset by a strong international outlook and now presence in 40 countries

through 315 subsidiaries, 113 insurance companies and 126 financial and real estate companies,

Generali has consolidated its position among the world's leading insurance operators, and has

grown its importance in western Europe, the Companys principal area of operation, with

significant market shares in Germany, France, Austria, Spain and Switzerland. In recent years, the

Group has made a remarkable return to central-eastern European markets and has set up offices in

the principal markets of the Far East, among which China and India.

The Generali Group has experience dating back over almost two centuries, and with its recognized

financial strength and consolidated partnerships with major international reinsurers, operates in all

classes of property and casualty insurance, from mass risks (like Auto TPL or Personal Injuries) to

highly complex industrial plants, from simple policies for family protection to extensive contracts

satisfying multinational companies complex needs. Generali provides coverage to individuals,

protecting their incomes and optimizing their savings, through life insurance products, individual

and group pension schemes. In this field Generali can offer highly sophisticated solutions to

multinational companies through a specialized structure, namely GEB (Generali Employee

20
Benefits) located in Brussels. Assicurazioni Generali is ranked as AA by Standard & Poor

(19.10.2006).

In the last decade, the Group has widened its product offerings from only insurance to include the

entire range of financial services and asset management. It has more than 350,000 shareholders

and over 66,000 employees. It is one of the largest insurance groups and the largest Banc assurer

in Europe.

The Future Group is a diversified conglomerate with presence in multiple consumer-centric

businesses like retail, consumer finance, capital, insurance, media, brands and logistics. The

groups flagship enterprise, Pantaloon Retail (India) Limited, Indias leading organized retailer,

owns and manages multiple retail formats including Pantaloons, Big Bazaar, Central, Food Bazaar,

Home Town, among others. With its width and depth of merchandise, it captures almost the entire

consumption basket of the Indian consumer. Headquartered in Mumbai, the company operates

over 5 million square feet of retail space, has more than 450 stores in different formats across 40

cities in India and employs over 18,000 employees.

Pantaloons Retail was awarded the International Retailer of the Year 2007 by the worlds largest

retail trade association, US-based National Retail Federation (NRF). It was also the recipient of the

Emerging Market Retailer of the Year at the World Retail Congress held in Barcelona in March

2007.

Future Capital Holdings, the groups financial arm, focuses on asset management and consumer

credit. It manages assets worth over USD1 billion thatFF are being invested in developing retail

real estate and consumer-related brands and hotels. The group has recently launched a consumer

21
credit and financial supermarket format, Future Money.

Future Group companies include Indus League Clothing, Galaxy Entertainment, Future Media

India Limited, Future brands India Limited and its online initiative is led through futurebazaar.com

The groups joint venture partners include Italian insurance major, Generali, French company

ETAM group, US-based stationery products retailer, Staples Inc, Middle East based Axiom

Communications and UK-based Lee Cooper and Alpha Airports. Its Indian joint venture partners

include Talwalkers, Liberty Shoes and Blue Foods.

Future Groups vision is to deliver Everything, Everywhere, Every time to Every Indian

Consumer in the most profitable manner. One of the core values at the Future Group is Indian-

ness and its corporate credo is Rewrite rules, Retain values.

Future Generali is the Insurance joint venture of the Future Group of India & Generali Group of

Italy providing a complete range of Life & General insurance solutions to customers and

enterprises.

Future Generali is an insurance joint venture headquartered in Mumbai, India betfuture generali

indiaen the Italy-based Generali Group and the India-based Future Group. Future Generali

operates Life and Non-Life insurance businesses through Future Generali India Life Insurance

Co. Ltd. and Future Generali India Insurance Co. Ltd.

The Generali Group is one of the most significant participants in the global insurance and financial

product markets and is ranked as the 30th largest company in the world by Fortune (2007). The

22
Groups Parent and principal operating Company Generali is Assicurazioni Generali, market leader

in Italy, founded in 1831 in Trieste. Generali is the largest corporation in Italy.

Characterised from the outset by a strong international outlook and now presence in 40 countries

through 315 subsidiaries, 113 insurance companies and 126 financial and real estate companies,

Generali has consolidated its position among the world's leading insurance operators, and has

grown its importance in future generali indiastern Europe, the Companys principal area of

operation, with significant market shares in Germany, France, Austria, Spain and Switzerland. In

recent years, the Group has made a remarkable return to central-eastern European markets and has

set up offices in the principal markets of the Far East, among which China and India.

Future generali india foster a collaborative culture where talented individuals can produce their

best work. Future generali india value innovative thinking, diverse insights and future generali

india strive to offer an exceptional level of customer service through our expertise and

professionalism.

The quality of our people will continue to be our key differentiator and future generali india

continue to offer outstanding career opportunities. Future generali india take pride in operating a

knowledge organization and in developing. In recent years future generali india have been building

our resources across the practice.

Mr. Bajpai is known for his visionary leadership and exemplary integrity. He has served as non-

Executive Chairman and a director on corporate boards in India and other countries, received

awards for contribution to business, and authored several books. Mr. Bajpai has been Chairman of

the Corporate Governance Task Force of International Organization of Securities Commissions,

23
Insurance Institute of India & served on the Governing Boards of Indian Institute of Management,

Lucknow and National Insurance Academy.

He has delivered lectures including at London School of Economics (LSE), Harvard University

and MIT and also addressed Stanford University, OECD & IMF seminars. He received among

others the Outstanding Contribution to the Development of Finance award from Prime Minister

Manmohan Singh

Jayant Khosla joined Future Generali India Life Insurance Company Ltd in July 2008 as

the MD & CEO. Future Generali is a joint venture betfuture generali indiaen India-based Future

Group and Italy-based Generali Group. The Generali Group is one of the most significant

participants in the global insurance and financial products market. It is ranked among the worlds

top five insurance companies. The Groups Parent and principal operating Company is

Assicurazioni Generali, market leader in Italy, founded in 1831 in Trieste. Future Group is Indias

leading consumer-focused business group with presence in retail, consumer finance, capital and

investment advisory, insurance, media, brand development and logistics. Jayant loves challenges

that allow him to push the limit and achieve turnarounds in sensitive business situations. His

keen interest in the spirit of the human mind allows him to identify key consumer insights and use

them for competitive business success

Introduction Of The Consumer Behaviour

All of us are consumers. We consume things of daily use, we also consume and buy these products

according to our needs, preferences and buying power. These can be consumable goods, durable

goods, speciality goods or, industrial goods. What we buy, how we buy, where and when we buy,

in how much quantity we buy depends on our perception, self concept, social and cultural

24
background and our age and family cycle, our attitudes, beliefs values, motivation, personality,

social class and many other factors that are both internal and external to us. While buying, we also

consider whether to buy or not to buy and, from which source or seller to buy. In some societies

there is a lot of affluence and, these societies can afford to buy in greater quantities and at shorter

intervals. In poor societies, the consumer can barely meet his barest needs. The marketers therefore

tries to understand the needs of different consumers and having understood his different

behaviours which require an in-depth study of their internal and external environment, they

formulate their plans for marketing. Management is the youngest of sciences and oldest of arts and

consumer behaviour in management is a very young discipline. Various scholars and academicians

concentrated on it at a much later stage. It was during the 1950s, that marketing concept

developed, and thus the need to study the behaviour of consumers was recognised. Marketing

starts with the needs of the customer and ends with his satisfaction. When every thing revolves

round the customer, then the study of consumer behaviour becomes a necessity. It starts with the

buying of goods. Goods can be bought individually, or in groups. Goods can be bought under

stress (to satisfy an immediate need), for comfort and luxury in small quantities or in bulk. For all

this, exchange is required. This exchange is usually between the seller and the buyer. It can also be

between consumers. Consumer behavior can be defined as the decision-making process and

physical

activity involved in acquiring, evaluating, using and disposing of goods and services. This

definition clearly brings out that it is not just the buying of goods/services that receives attention in

consumer behavior but, the process starts much before the goods have been acquired or bought. A

process of buying starts in the minds of the consumer, which leads to the finding of alternatives

between products that can be acquired with their relative advantages and disadvantages. This leads

25
 to internal and external research. Then follows a process of decision-making for purchase and

using the goods, and then the post purchase behavior which is also very important, because it gives

a clue to the marketers whether his product has been a success or

not.

To understand the likes and dislikes of the consumer, extensive consumer research studies are

being conducted. These researches try to find out:

What the consumer thinks of the companys products and those of its competitors?

How can the product be improved in their opinion?

How the customers use the product?

What is the customers attitude towards the product and its advertising?

What is the role of the customer in his family?

Consumer behavior is a complex, dynamic, multidimensional process, and all marketing decisions

are based on assumptions about consumer behavior.

There can be many benefits of a product, for example, for owning a motor bike

one can be looking for ease of transportation, status, pleasure, comfort and feeling of ownership.

The cost is the amount of money paid for the bike, the cost of maintenance, gasoline, parking, risk

of injury in case of an accident, pollution and frustration such as traffic jams. The difference

between this total benefit and total cost constitutes the customer value. The idea is to provide

superior customer value and this requires the formulation of a marketing strategy. The entire

process consists of market analysis, which leads to target market selection, and then to the

formulation of strategy by juggling the product, price, promotion and distribution, so that a total

26
product (a set of entire characteristics) is offered. The total product creates an image in the mind of

the consumer, who undergoes a decision process which leads to the outcome in terms of

satisfaction or dissatisfaction, which reflects on the sales and image of the product or brand.

Marketing Strategy and Consumer Behaviour-

(i) Marketing Analysis

(a) Consumer

(b) Company

(c) Competition

(d) Condition

(ii) Marketing Segmentation

(e) Identify product related needs

(f) Group customers with similar need sets

(g) Describe each group

(h) Select target market

(iii) Marketing Strategy

(i) Product

27
(j) Price

(k) Distribution

(l) Communication

(m) Service

(iv) Consumer Decision Process

(n) Problem recognition

(o) Information searchinternal, external

(p) Alternative evaluation

(q) Purchase

(r) Use

(s) Evaluation

(v) Outcomes

(t) Customer satisfaction

(u) Sales

(v) Product/Brand image

Change in consumer behavior in the insurance industry-

28
In the last few years, a notable trend in the insurance industry is the rapid change in the knowledge

and the expectations of customers. Todays knowledgeable consumer is more aware of the

alternative products and services available.

The factors that impact the consumer behavior include product/service, distribution and

investment. Customers prefer a customized product with distribution channels that offer him/ her

convenience, better customer service and different investment options

Insurance companies should realize that customers are not single, faceless entities but a

conglomeration of varying groups with different needs. With the entrance of the banks and other

competitors into the market, consumers now have the opportunity to choose between various

products and services that suit their requirements. Flexible products and better and newer

technology will play an important role in reducing insurance cost and therefore the consumer price

of insurance products. Finding the niche markets, having the right product mix through add-on

benefits and riders, effective branding of products and services and product differentiation from

competitors products will challenge the new companies.

29
Insurance companies managing low returns-

The 1990s were a profitable period for insurance companies the world over. Investment

return levels were very high because of the bull-run in the capital markets. Most insurance

companies put so much time and effort into managing assets, proprietary and assets under

management, that they had little time to monitor liabilities accruing from interest rate guarantees.

The slump in equity markets at the start of the new millennium, and decreasing interest

rates the world over exposed the structural flaws in the industry (Figure 5.1) . Many insurers were

taken aback by continuing low-bond yields and plunging stock markets. Many groups had such

30
massive losses in their equity portfolios that in some cases, capital reserves were eroded. Major

players had to slash dividends and approach investors for fresh capital.

Life insurance companies in Asian countries including Japan suffered serious financial

stress. Nonlife insurers were also affected by low investment income, but the absence of long-term

commitments gave them an advantage over life insurance companies. Increasing premium rates led

to an improved underwriting performance for the non-life insurers and limited damage.

Insurers switched from equities to fixed income securities but as stock markets made a

strong comeback in 2003, and interest rates touched historic lows, poor returns on the fixed

income portfolio were inevitable. Profits for both life and non-life insurers dipped.

Life insurers were left with no option but to face the alarming gap between expected

returns and policy guarantees. To avoid such problems, insurers need to be conservative in the

guarantees they offer to policyholders. They need to stabilize their balance sheets by restoring

parity between assets and liabilities and to do so they must master advanced modeling techniques.

Insurance companies need to use these modeling techniques to identify the optimum trade-

off between risk and return and quantify uncertainty arising from their investment strategies. These

methods help the companies assess the impact on the balance sheet and estimate the likelihood of

insolvency for a probable range of investment scenarios.

31
Increasing risk in the insurance business-

The insurance industry is experiencing an increasing frequency and severity of losses

triggered by disasters both natural and man-made. For instance, in 2005 the total number of

catastrophes was 397, out of which 149 were natural catastrophes and 248 were man-made

catastrophes (Figure 5.2). In 2005, catastrophes caused financial losses of more than $230 billion.

A major portion of this loss was in the industrialized nations; the catastrophes had an impact on

high concentration of property assets. Katrina alone led to a loss of $D135 billion and Rita caused

losses of $15 billion. Of the total asset loss, only $83 billion was covered by insurance.

An example of human-made disaster was the tragedy of September 11, 2001; it revealed the scale

of potential losses that can be caused by terrorism. It also questioned the limits of insurability. A

32
human-made disaster like terrorism challenges the insurance industry because for risk to be

insurable, it must be well understood, measurable and bounded. The premium rates must be

acceptable to both the clients and the insurance company. In this scenario, guaranteeing adequate

pricing becomes the main imperative for the industry. There is an uncertainty regarding the

severity of terror-related and risks probability and this makes it extremely difficult to quantify.

In some instances, insurers suddenly withdraw or scale back from covering some types of

risk. This can occur when a risk becomes so ambiguous that its reasonable pricing is not possible,

for example in the case of terrorism; capacity dries up owing to losses that reduce the industry

capital base. Catastrophic losses, particularly human-made ones, do not follow historical patterns;

hence they constitute a significant risk to individual insurers and the insurance industry as a whole.

The insurance industry also faces technological risk. Catastrophes increase the risk of

losing critical data about existing and prospective customers. Losing this would mean business

loss. The damages from hurricanes Katrina and Rita, as well as the July bombings in London, have

prompted many large insurance companies to back up their data in distant locations.

The industry is now attempting to model the threats posed by a range of risks, some

previously unheard of, including cyber-terrorism, bio-terrorism (brought prominently to light by

the Anthrax scares in the US following September 11) and the use of a crude nuclear device in a

major urban area.

Any Thing Extra Related To The Industry Or The Company

33
 Growth and development of the organization

Future Generali is the Insurance joint venture of the Future Group of India & Generali Group of

Italy. Future Generali operates Life and Non-Life insurance businesses through Future Generali

India Life Insurance Co. Ltd. and Future Generali India Insurance Co. Ltd. Future Group is

famous through its store named Pantaloons and Big Bazaar.

The Generali Group is one of the most significant participants in the global insurance and financial

product markets and is ranked as the 30th largest company in the world by Fortune (2007). The

Groups Parent and principal operating Company, Generali is the largest corporation in Italy.

The Future Group is a diversified conglomerate with presence in multiple consumer-centric

businesses like retail, consumer finance, capital, insurance, media, brands and logistics. The

groups flagship enterprise, Pantaloon Retail (India) Limited, Indias leading organized retailer,

owns and manages multiple retail formats including Pantaloons, Big Bazaar, Central, Food Bazaar,

Home Town, among others.

Future Generali, a joint venture bet future generali Indian Future Group and Generali Spa, has

announced on Wednesday the commencement of its India operations in the life and non-life

insurance business space through Future Generali India Life Insurnace company and Future

Generali India Insurance Company. Future group holds 74% each in both the companies.

With Rs 115 crone each, the two companies have a 50:50 representation in both the boards.

Our knowledge of Indian consumers and our extensive retail presence would help us reach out to

a wide range of consumers with unique insurance products and services, said Kishore Bryani,

group CEO, Future Group.

34
G N Bajpai, former chairman of SEBI and Life Insurance Corporation, has been appointed the

non-executive chairman of the joint ventures. Both Bryan and Sergio Balbinot, chief executive

officer, Generalli, will be part of the two the boards Generali, Europes third largest insurer, based

in Trieste, Italy, is looking at definite tie-ups with banks and financial institutions for its joint

ventures in India. This will compensate Pantaloon's lack of experience in financial sector, said

people close to the discussions, while its wide network of retail outlets will mostly boost the

distribution of insurance products.

India and China are the two markets Generali is increasingly expanding as growth in Europe is

slowing down.

The close relation with banks and financial institutions in India will also act as a safeguard, should

any difference of opinion arise with the alliance partner, the Future Group, as India's insurance

market is slowly opening up to foreign players.

The Generali Group is one of the most significant participants in the global insurance and financial

products market. It is ranked among the worlds top five insurance companies. The Groups Parent

and principal operating Company is Assicurazioni Generali, market leader in Italy, founded in

1831 in Trieste. Characterized from the outset by a strong international outlook and now present in

40 countries, Assicurazioni Generali has consolidated its position among the worlds leading

insurance operators. In the last decade, the Group has widened its product offerings from only

insurance to include the entire range of financial and real estate services, asset management.

Future Group is Indias leading consumer-focused business group with presence in retail,

consumer finance, capital and investment advisory, insurance, media, brand development and

35
logistics. The groups retail presence extends to over 61 cities and 65 rural locations across the

country.

Future Generali is present in India in both the Life and Non-Life businesses as Future Generali

India Life Insurance Co. Ltd. and Future Generali India Insurance Co. Ltd.

The company has recently introduced an innovative channel of providing Total Insurance

Solutions through Mall assurance. Effectively employing the Future Groups impressive retail

presence, through Mall assurance, Future Generali offers numerous Insurance products to the

millions of customers who have made the Future Groups stores a part of their lives.

Galileo, the leading Global Distribution System (GDS), has joined hands with Future Generali to

facilitate travellers with instant travel insurance that will cater to all travelling needs of the

passengers. The tie up aims at providing convenient and fast insurance to travellers providing an

easy and safe travel through the product called Future Generali Travel Suraksha.

This insurance product will provide risk cover for contingency expenses during overseas travel

like medical expenses, financial, and other losses incurred while travelling, thus providing

complete peace of mind to travellers. Travel Suraksha can be opted by individuals, families, senior

citizens and frequent travellers alike. Travel agents would act as a single window for the needs of

the traveller; the insurance product can be booked at the time of making the bookings.

Announcing the tie up, Mr Bruce Hanna, President & CEO, Galileo in India said, Galileo's tie

up with Future Generali is in line with the companys commitment to launch and introduce value

added propositions for the travel agents. The effective and competitive pricing of their product

would ensure a quick acceptance in the travel trade. This tie-up would also provide an opportunity

for the travel agents to bundle insurance as part of their package offering to the travelers. Future

36
generali india anticipate the travel insurance would grow by over 18% annually. This tie-up would

help Future Generali reach over 11000 touch points spread out into 333 cities within India. Future

generali india are delighted to partner with a growing group

The tie-up would have policies covering almost every aspect of a travel plan such as overseas

health cover, medical dental expenses, legal liability, hospital daily allowance, accidental death

and dismemberment, loss of baggage and belongings, trip delay, personnel liability, loss of

passport, visa, hijack distress allowance, home insurance, repatriation of remains, embassy referral

services, child care, etc. The maximum cover for travel insurance is $500,000, but the premium

will depend on the age of the traveller, the number of days travelled and country/ countries visited.

Together with Galileo, the leading GDS in India and leader in the world, future generali india

seek to achieve greater heights in the travel insurance sector. Future generali india aim at

synergising the travel expertise of Galileo and insurance expertise of Future Generali to offer best

insurance products to the traveller to make travel as convenient as possible. said

Deepak Sood, CEO of Future Generali India Insurance Co Ltd.

According to a report, the travel insurance business was estimated at Rs. 300 crores. With over

eight million Indians travelling abroad, this amount roughly covers only 20-25% of the travellers

i.e. 1.6 million people, which means still there is a huge market untapped. New Travel and

Tourism data published by Euromonitor International predicts that the number of tourists travelling

37
from India will increase more than double by 2011 (16.3 million). This dramatic rise in the number

Indians travelling abroad, 132% over 2006 to 2011, is being driven by rising disposable incomes,

more affordable holiday options and the growth of low cost carriers, enabling more Indians to

travel abroad.

Some unique advantages of the tie-up include special covers like child escort and golfers hole in

one, specially designed cover for senior citizens (71 80 yrs), cover extension up to 90 days for

medical expenses on evacuation, one number contact (UIFN), wide network and global presence.

PRESENT STATUS OF THE ORGANIZATION

Future Generali, the insurance joint venture of Pantaloon Retail India and Italian insurance firm

The Generali Group has been approved by the Insurance Regulatory & Development Authority of

India (IRDA).

Pantaloon has informed the media, that they got the approval from the IRDA and received the

certificate for Future Generali India Life Insurance Company Ltd (which caters to the Life

Insurance Sector) and Future Generali India Insurance Company Ltd which will have its

operations in General Insurance sector in India.

Pantaloon will hold 74% stake in Future Generali and Generali of Italy will hold 26% stake in the

Joint Venture. Of the 74% Pantaloon stake in Future Generali, the Pantaloon Retail will take 56%,

while Pantaloon Industries will hold 18%.On 24th October 2007, in a press conference in Mumbai,

Future CEO, Mr. Kishore Biyani & Generali Group CEO, Mr. Sergio Balbinot,announced launch

of the Insurance Joint Venture (Life & General Insurance) in India.

38
Also present in the press conference future generali indiare Mr. G. N. Bajpai, Chairman, Future

Generali & Dr. Kim Chai Obi, Country Manager, Future Generali & CEO,Future Generali India

Life Insurance Co. Ltd

In a bid to minimise the impact of the global economic slowdown on the Indian economy, the

Government on Sunday unveiled a multi-dimensional fiscal stimulus package that is expected to

help boost output across sectors and stoke growth.

The measures include an additional Plan expenditure of up to Rs 20,000 crore this fiscal, an

estimated excise duty give-away of Rs 8,700 crore, a 2 per cent interest subvention for the labour-

intensive export sectors and steps for improving the financing environment for infrastructure

projects.

Future generali india will make special efforts to ensure that not only the additional

expenditure of Rs 20,000 crore is spent this year, but even what has been budgeted is actually

spent to support the growth of the economy, the Deputy Chairman of the Planning Commission,

Mr Montek Singh Ahluwalia, told a press conference here.

On the excise duty front, the Government has effected an across-the-board cut of 4

percentage points in the ad-valorem cenvat for the remaining part of the current fiscal on all

products other than petroleum and those where the current rate was below 4 per cent. Prior to the

latest change, the three main ad-valorem excise rates applicable on non-petroleum products future

generali indiare 14 per cent, 12 per cent and 8 per cent.

FUNCTIONAL DEPARMENTS OF THE ORGANIZATION:

39
 In any organization there are three kinds of functional departments i.e.

Minor functional department.

Major functional department.

Derivative functional department

The two main functional departments of Future Generali Life Insurance.

Board of
directors

Chief
executive

Sales Finance
department department

Marketing
department

HR department

Future Generali, the insurance joint venture of Pantaloon Retail India and Italian insurance firm

Pantaloon informed the stock exchanges that it has formed a 74:26 joint venture with Generali of

Italy to start life and non-life insurance businesses in India. Pantaloon will hold 74%, while the

rest will be held by the JV partner. Future is the new brand name being promoted by Pantaloon

Retail. Future Generali will have a start-up capital of Rs 2 billion.

Of the 74% Pantaloon stake in Future Generali, the Pantaloon Retail will take 56%, while

Pantaloon Industries will hold 18%.

40
Future Generali's formation will be subject to clearances from the Insurance Regulatory and

Development Authority (IRDA) and other necessary approvals, the companies said.

The JV partners of Future Generali are gung-ho on the growth of insurance industry in India.

Pantaloon and Generali are betting on a 15-20% growth in the insurance business in India. High

savings and the opening up of the insurance industry are seen as positives for the insurance sector.

Future Generali will be the first step being taken by Generali in the Indian insurance market.

Said Kishore Biyani, Chief Executive of the Future Group that owns Pantaloon: "India is a very

young country with 60 percent of the population below 30 years of age. These are the new

insurance buyers of India tomorrow who spend a significant time at modern retail outlets (stores

and malls)."

Generali is one of the largest insurance groups in the world, operating in 40 countries through 107

companies. It ranks 22 in the list of Fortune 500 companies and is the largest corporation in Italy

with an asset base of over euro 300 billion. Both Generali and Pantaloon Retail are listed

companies.

Future Capital Holdings, the financial arm of the Kishore Biyani-owned Pantaloon Retail, has

decided to raise money from the market through its maiden public issue. The board of directors of

Pantaloon Retail, which controls nearly 74% stake in Future Capital, today took a decision to this

effect.

UBS Investment has recently valued the business of Future Capital to be around Rs 3,000 crore.

So Pantaloons stake is valued at Rs 2,200 crore or Rs 140 a share.Sources said the exact size of

41
the issue was not decided yet but it would take at least six months for Future Capital Holdings to

launch the IPO.

Organization structure and Organization chart

42
COMPETITORS

43
MAJOR COMPETITORS OF THE ORGANIZATION ARE:

KOTAK
MAHIND
RA

Max Life BIRLA

Insuranc
e SUN LIFE
Future
Generali
Life
Insuranc
e

HDFC
ICICI
LIFE
Prudenti
INSURAN
al
CE

44
 PRODUCTS AND SERVICE PROFILE OF THE ORGANISATION

COMPETITORS

Insurance Products of Kotak Mahindra

Individual

Kotak Long Life Wealth Plus

Kotak Smart Advantage

Kotak Sukhi Jeevan Plan

Kotak Privileged Assurance Plan

Kotak Term / Preferred Term Plan

Kotak Money Back Plan

Kotak Endowment Plan

Kotak Retirement Income Plan

Group

Employee Benefits

45
 Kotak Term Grouplan

Kotak Credit-Term Grouplan

Kotak Complete Cover Grouplan

Kotak Gratuity Grouplan

Kotak Superannuation Grouplan

Insurance Products of Max New York Life Insurance

Protection Plans

Life is full of surprises. Unexpected events that strike without warning can disrupt the smooth

rhythm of life. You must be prepared at all times. As the primary earning member, you need to

make sure that your family is never lacking in anything even if you are taken away from them

forever. Do your best today to ensure that your family can always enjoy a comfortable lifestyle. In

double income families, both spouses should get adequate life covers especially if there are

dependent children involved. We have plans that guarantee maximum protection at a low cost.

Health Plans

A medical crisis can strike anyone, anytime and may even force an individual to dip into savings

to meet these sudden and steep costs. Such an eventuality could delay or destroy a cherished

46
 financial goal. No wonder, health is wealth. The health of every member of the family is precious

and you need to safeguard it as a priority. Use our Health Plans to make sure your family stays fit

and fine.

Services of HDFC standard life insurance

HDFC CHILDREN'S PLAN

Features

Invaluable financial support to your child

A choice to customise an ideal plan for your child

Multiple options for multiple benefits

Investment Plans

Pension Plans

Savings Plans

47
 HDFC UNIT LINKED YOUNG STAR PLAN

Features

An outstanding investment opportunity by providing a choice of thoroughly researched and

selected investments.

Valuable protection in case of the insured parent's unfortunate demise

Very flexible benefit combinations and payment options.

Flexible additional benefit options such as critical illness cover.

Insurance products of HDFC

Term Assurance Plan

Loan Cover Term Assurance Plan

Home Loan Protection Plan

Pension Plans

Personal Pension Plan

Unit Linked Pension

Unit Linked Pension Plus

Savings Plans

48
 Endowment Assurance Plan

Assurance Plan

Savings Assurance Plan

Childrens Plan

Money Back

Unit Linked Endowment Plus

Unit Linked Endowment Suvidha

Unit Linked Endowment Suvidha Plus

Unit Linked EndowmentWinne

Unit Linked Endowment Plus II

Unit Linked Endowment Plus II

49
 Services of ICICI Prudential

ICICI Prudential Life Insurance has a variety of plans to suit your financial requirements

and give you complete security against unforeseen circumstances.

ICICI Prudential Health Care Plans are designed to help you avail the best of medical

facilities in times of crisis.

ICICI Prudential Retirement Solutions and Pension Plans are innovative schemes to give

you complete peace of mind after retirement from work.

ICICI Prudential Asset Management helps you manage your funds in the most professional

manner.

ICICI Prudential Life time gold investment

ICICI Prudential Tax saving plans are meant to provide you the benefits of tax savings and

also to invest in long-term equity.

Infrastructure Fund, Equity Fund

Services of Reliance Life Insurance

Reliance Golden year plan

Reliance money guarantee plan

Reliance child plan

Reliance total investment plan

50
MARKET PROFILE OF THE ORGANIZATION:

Future Generali, the insurance venture joint venture betfuture generali indiaen the Future Group of

India and Generali Group of Italy today announced the launch of a unique promotional initiative

aimed at attracting new customers to its fold. Customers visiting any of the Future Group retail

outlets nationwide from 25th November 2008 to 20th January 2009 can participate in a unique

and simple contest by dropping their car insurance details in a drop box.

The contest results will be declared in February 2009 and the two lucky winners will receive a

brand new Chevrolet Spark car each. Participants can submit their forms at retail outlets like

Big Bazaar, Pantaloons, Food Bazaar, e-Zone, Home Town, Furniture Bazaar, KB Fair Price

and Brand Factory. Customers visiting any of these outlets can also avail the free vehicle

inspection facility to be offered for 4-wheeler owner at these retail outlets during the contest

period.

Kishore Biyani - Chairman Future Group, speaking on the launch of the new

promotional initiative, said, Future Generali is creating a new concept of financial distribution in

India. The inimitable MallAssurance channel is our effort to reach out to retail customers

directly where she/he shops and aid their buying decision as a family.

51
 PRODUCT AND SERVICE OFFERED BY THE ORGANIZATION :

Product:

Products

Solution for Solution for groups

individuals

(solution for individuals)

Future Care

Future Care: A Pure Term Assurance Plan, offering high protection at low premium with an

attractive option of convertibility to an endowment plan (without furnishing additional evidence of

insurability at the time of conversion).

Key Features:

Simplicity: Future Care is the simplest form of insurance for a stated period of time.

Affordability: Future Care provides maximum insurance protection for your premium

amount.

52
 Convertibility: Within a period specified in the policy, the term plan can be converted into an

endowment life insurance plan offered by Future Generali. The premium charged for the

permanent plan will be based on age of the insured, without furnishing any further evidence of

insurability

Future Assure

Future Assure a with-profit endowment plan, is just the right plan, ensuring financial

freedom which your family deserves, even in your absence. The plan will be offered along with 6

optional riders, namely, Term Assurance Rider, Waiver of Premium on Disability Rider, Life

Guardian Rider, Accidental Death Rider , Accidental Total & Permanent Disability Rider and a

Critical Illness Rider.

Key Benefits Of Future Assure:

On death of life insured: Sum Assured plus accrued bonus

On maturity: Sum Assured plus accrued bonus

On Surrender of Policy: Surrender Value

Policy Loan available after the policy acquires Surrender Value

A receives compounded reversionary bonuses which are added on every INSTA

life...

Key features of INSTA life:

Hassel free Insurance cover without any Medical or Financial Underwriting

Minimal Paperwork

Guaranteed Coverage up to 5 lakhs till age 45 years

53
 Policy available on Standalone Basis irrespective of previous insurance in other Future

Generali plans

Instant Processing & Issuance Over The Counter

Suitable for all customers providing long term Savings with an Insurance Cover along with

Convenience in Availability

Tax Benefits under section 80C and 10(10D) of the Income Tax Act

Riders-

1. Term Assurance Rider:

2. Accidental Death Rider:

3. Accidental Total and Permanent Disability Rider

4. Waiver of Premium on Disability Rider

5. Critical Illness (Core) Rider

6. Life Guardian Rider :(in case of juveniles)

7. Accelerated Critical Illness Extended Rider

The conditions covered under Accelerated Critical Illness Rider are:

Aorta Surgery

Cancer

Coronary Artery Bypass Surgery

Heart Attack

Heart Valve Surgery

54
 Kidney Failure

Major Burns

Major Organ Transplant

Paralysis

Stroke, and

Total Permanent Disability due to Accident and Sickness.

55
 Future Sanjeevani

Key Features of Future Sanjeevani :

An ideal All-in-One Investment and Insurance package

Life coverage throughout life giving flexibility in premium paying term of 5,10,15 years or

Whole of life

Gives you a choice of 4 investment funds, structured in a way to take care of your financial

liabilities and giving the flexibility to change fund allocation at any time as per your requirement

Guaranteed Loyalty Bonus through Extra Fund Injection

Suite of 4 optional riders to provide you additional benefit (s)

Additional allocation of fund (s) to your kitty through regular Top-Ups, providing you a

comprehensive financial solution

Partial Withdrawal after the completion of 3 full policy year

Tax benefits on premiums paid and the benefits received, as per the prevailing Income Tax

Rules

Benefits of Future Sanjeevani :

Choice of Investment Fund: Your premium is invested in unit funds of your choice. Currently

you have a choice of 4 investment funds, providing you flexibility to direct your investments in

any of the following unit linked funds of the Company. The funds invest in a mix of cash/other

liquid investments, fixed interest securities and equity investments in line with their risk profile.

56
 Future Secure

Strategy : Low risk investment such as money market investments

Objective : To provide stable returns by investing in relatively low risk assets. The fund

will invest exclusively in treasury bills, bank deposits, certificate of deposits, other money market

instrument and short duration govt. securities.

Composition Min. Max. Risk Profile

Money Market, Cash and Short Term Debt 0% 100% Low

Equity Instruments 0% 0%

Future Income

Strategy : Investments in assets of low or moderate risk

Objective : To provide stable returns by investing in assets of relatively low to moderate

level of risk. The interest credited will be a major component of the funds return. The fund will

invest primarily in fixed interest securities, such as Govt. securities of medium to long duration

and Corporate Bonds etc and money market instruments for liquidity.

57
 Composition Min. Max. Risk Profile

Fixed Interest Investments, cash and 0% 100% Low

Money Market Instruments

Equity Instruments 0% 0%

Future Balance

Strategy : Balances high returns and high risk from equity investments by the stability

provided by fixed interest instruments

Objective : To provide a balanced return from investing in both fixed interest securities as

future generali indiall as in equities so as to balance stability of return through the former and

growth in capital value through the latter. The fund will also invest in money market instruments to

provide liquidity.

Composition Min. Max. Risk Profile

Fixed Interest including cash and Money 10% 70% Medium

Market Instruments

Equity Instruments 30% 90%

Future Maximize

58
 Strategy : Investment in a spread of equities. Diversification by sector, industry and risk.

Objective : To provide potentially high returns to unit holders by investing primarily in

equities to target growth in capital value of assets. The fund will also invest to a certain extent in

govt. securities, corporate bonds and money market instruments.

Composition Min. Max. Risk Profile

Fixed Income including Money Market 10% 50% High

Instruments

Equity Instruments 50% 90%

Maturity Benefit : On maturity i.e. policy anniversary coinciding with or following the

completion of 99 years, the Fund Value as on the date of maturity becomes payable and the policy

is terminated thereafter.

Death Benefit *: On the unfortunate death of the life assured, the nominee receives the

higher of the following

o Sum Assured plus all applicable top up Sum Assured net of all Deductible Partial Withdrawals,

(if any)

For purpose of determining the Death Benefit, the Deductible Partial Withdrawal (s) mean,

any partial withdrawal made in 12 months before the date of death will be deducted from sum

assured. Where the life assured has completed 60 years, all the partial withdrawals made in 2 years

59
 prior to the completion of 60 years and all partial withdrawal made after completion of age 60

years will be deducted from the sum assured.

Extra Fund Injection (EFI) ** : Guaranteed Loyalty Bonus through Extra Fund Injection,

wherein 20% of Fund Management Charges (i.e. the basic policy + any top-up single premiums) is

refunded back to you after 10th policy year and thereafter 10% after every 5th policy anniversary

(on the last 5 years FMC), by way of units which are automatically allocated to your unit fund

account as additional loyalty units.

EFI will be refunded only on survival of the life assured till 10th policy year and thereafter

on survival to the end of every 5th year, while the policy is in force.

Tax Benefits

o Premiums paid under this plan are eligible for tax benefits under Section 80C of the Income

Tax Act, 1961

o Premiums paid for critical illness rider is eligible for tax deduction under Section 80D of the

Income Tax Act, 1961

o Any sum received under this plan is exempt from tax under section 10(10D) of the Income Tax

Act, 1961

o The above is based on the current tax laws and is subject to change

GROUPS

60
 Future Group Term Life Insurance Plan

Future generali india at Future Generali understand the growing importance of employee

benefits to both the employer & staff. More & more companies are finding that the employee

benefits package plays a crucial role in attracting and retaining the best staff.

Our approach is to work in partnership with the customer and/ or their advisor to establish

the right combination of benefits to meet their needs.

Benefits

Nominee(s), receive the sum assured, should Coverage Offered:

Multiple of salary

Fixed cover

Covers based on grades/rank

Cover against O/S loan

Future Generali Group Credit Suraksha

Key Features:

Future Generali Group Credit Suraksha is a Single Premium Term Assurance plan which is

designed specifically for financial institutions to provide life coverage to their new as future

generali indiall as existing borrofuture generali indiars.

61
 A wide range of loans, which includes mortgage, auto loan, education loan, personal loan,

credit card group, etc can be covered under the scheme.

The plan can be taken on single life as future generali indiall as on joint life.

The plan will be offered in two forms (i) Decreasing Term Assurance Plan (ii) Level

Term Assurance Plan.

Increased Insurance coverage can be opted for in case of top-up/additional loans.

Right age to take this plan - 18 to 60 years with coverage upto a maximum of 65 years.

Sum Assured starting from Rs. 20,000 onward based on individual underwriting

considerations.

Policy Term ranging from 2 to 30 years.

Future Generali Group Gratuity Plan

Gratuity An Overview

Gratuity is a statutory benefit governed by Payments of Gratuity Act, 1972. Under the Act,

it is employers statutory liability to pay 15 days salary (15/26 of a month's wages, taking the last

drawn salary as the basis) for every completed years service to each of his employees on their exit,

for any reason after five years of continuous service, subject to maximum limit of 3.5 lacs. The

employee is eligible for 15 days of pay for each completed year of service, either on:

Retirement

Permanent Total Disablement during service

Death during service

Resignation from service

62
 The employer can also structure a gratuity benefit that is higher than stipulated in the statutory

requirements.

Future Generali life insurance company provides all the benefits better than any other

insurance company .

it provides:

Contract of Insurance: A contract of insurance is a contract of

utmost good faith. Discloses all material facts and that apply to all forms of

insurance.

Protection: Future Generali Life insurance assures payment of the entire

amount assured (along with bonuses, wherever applicable) in case of demise,

whereas in other savings schemes, only the amount saved (with interest) is

payable.

Security on Loan : Generally, a life insurance policy is accepted as

security, even for a commercial loan. You can acquire loans on the sole

security of a policy that has acquired loan value.

63
 COMPARATIVE STUDY

ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI, a premier

financial powerhouse and Prudential plc, a leading international financial services group

headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector

insurance companies to begin operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA).

ICICI Prudential is curently the No. 1 private life insurer in the country. For the financial year

ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total

sum assured of Rs 13,780 crore and wrote nearly 615,000 policies

64
 Products offered by ICICI Prudential are

2) Savings Plan

Smart kid

Life Time

Save n Protect

Cash Bak

3) Protection plan

Life Guard

Extra Protection Through

Riders

4) Retirement Plans

Forever Life

65
 Life link pension

Life time pension

Reassure

5) Investment Plans

Assure Invest

Life Link

6) Group plans

Group Superannuation

Group Gratuity

Group Term Assurance

OM KOTAK MAHINDRA Life Insurance Company

OM Kotak Mahindra Life Insurance Company Limited (OMKM), is a joint venture between Kotak

Mahindra Bank Ltd.(KMBL), and Old Mutual plc. At OMKM, the aim is to help customers take

important financial decisions at every stage in life by offering them a wide range of innovative life

insurance products, to make them financially independent. Jeene Ki Azaadi...

The Products offered by the Company are

Individual Plan

66
 Kotak Endowment Plan

Kotak Term Plan

Kotak Retirement Income Plan

Kotak Child Advantage Plan

67
 Kotak Preferred Term Plan

Kotak Capital Multiplier Plan

Kotak Safe Investment Plan

Riders

Exclusions Under Riders

Group Plan

Kotak Term Grouplan

Kotak Gratuity Grouplan

Kotak Credit Term Grouplan

Riders

Exclusions Under Riders

Rural

Kotak Gramina Bima yojana

MET LIFE INSURANCE COMPANY

68
For almost 135 years, Metropolitan Life Insurance Company has been insuring the lives of the

people who depend on them. Their success is based on their long history of social responsibility,

strong leadership, sound investments, and innovative products and services.

MetLife Begins

The origins of Metropolitan Life Insurance Company (MetLife) go back to 1863, when a group of

New York City businessmen raised $100,000 to found the National Union Life .

69
 Supporting Country and Community

Over the years, MetLife has made a difference by supporting urban renewal projects and

community financing. The company's social commitment and its commitment to the security of its

policyholders have proven to be good business.

MetLife Today

It is the fastest growing private life insurance company in India

Currently have over 200,000 satisfied customers

One of Indias leading private life insurance company.

Total branches of India are, Andhra Pradesh, Delhi, Gujarat, Jammu & Kashmir, Karnataka,

Kerala, Maharashtra, Orissa, Punjab, Rajasthan, Tamilnadu and West Bengal.

Products Offered by the company are

1) Whole Life

Met 100 Non par

Met 100 Gold par

Met 100 Platinum par

2) Endowment

Met Gold par

Met Platinum par

70
 Met Junior par

Met junior Non par

3) Money Back

Met Sukh

Met Junior MB

4) Term

Met Mortagage Protector

Met Riders

Accidental death

71
 RESEARCH

METHODOLOGY

72
 Research Methodology

Research in common parlance refers to a search for knowledge. One can also define

research as a scientific and systematic search for pertinent information on a specific topic.

The word research has been derived from French word Researcher means to search.

FRANCIES RUMMER defined Research: It is a careful inquiry or examination to

discover new information or relationship and to expand or verify existing knowledge.

Research is the solution of the problem, whether created or already generated. When

research is done, some new out come , so that the problem (created or generated) to be

solved.

RESEARCH DESIGN:

Research Design is the conceptual structure within which research is conducted. It

constitutes the blueprint for collection, measurement and analysis of data. The design used

for carrying out this research is Descriptive.

DATA TYPE: In this research the type of data collection is

Secondary data

DATA SOURCE: The sources of collection of secondary data

are:

Books

Websites

73
 Magazine

Brochure

DATA ANALYSIS

AND

INTERPRETATION

74
 INTRODUCTION TO ANALYSIS:

In order to extract meaningful information from the data them. The analysis can be

conducted by using simple statistical tools like percentages, averages and measures of dispersion.

Alternatively the collected data may be analysed collected, the data analysis is carried out. The

data are first edited, coded and tabulated for analyzing by using diagrams, graphs, charts, pictures

etc. Data analysis is the process of planning the data in an ordered form, combining them with the

existing information and extracting from them Interpretation is the process of drawing conclusions

from the gathered data in the study. In this research the researcher has analysed the data using

percentages and graphs.

After looking at each attribute separately, all the attributes were considered together to develop a

map on the most preferred rank for all the attributes.

ANALYSIS OF DATA AND INTERPRETATION

INTERPRETATION: As per the company data, LIC has the maximum market

share to collecting the insurance premium.

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INTERPRETATION: As per the company data I found that the growth of life insurance has

increased in 2011.

SEGMENT WISE SHARES OF INSURANCE

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INTERPRETATION: As per the company data, the share of insurance in the year 2013-14 is
maximum in Motor insurance that was 43%.

INSURANCE PENETRATION

Interpretation: As per the company data, in India insurance penetration has increased in 2009.

RATE OF RETURN OF INSURANCE COMPANIES IN THREE YEARS

YEAR ICICE HDFC OM KOTAK LIFE

INSURANCE

2013 9.7% 8.5% 7.1%

2014 10.3% 9.7% 8.4%

2015 10.9% 7.8% 8.9%

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INTERPRETATION: As per the company data, rate of return of ICICI insurance was more that

other companies in every year.

SWOT Analysis

STRENGTH:

1. Understand the need of customers or investors very well.

2. Strict adherence to business philosophy of providing the best value for money to our

customers, has enabled us to grow rapidly in an increasingly competitive market.

3. Opportunities for lateral growth within the company.

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 4.Performance management system based on the balanced scorecard model.

5 Exposure to extensive learning and developmental initiatives.

WEAKNESS:

1. Presently in the insurance industry Future Generali Life Insurance has started its

operation few years back.

2. To give competition to the existing players like LIC, BAJAJ ALLIANZ, Birla Sun

Life etc. is not easy but on the strength of innovative policies Future Generali has

differentiated itself very well.

3. The only weakness of Future Generali is that it is only present in the cities/urban

areas and it has to cover the remote areas of our country this will enable Future Generali

to increase its market share in the insurance industry.

4. More over, Customer awareness is also a hurdle in its path of success.

OPPORTUNITY:

There are many opportunity for Future Generali in the insurance industry because only

a few percent of the Indian population avails the services of a insurance company and

there are many untapped regions in the country that can be utilized to increase its market

share, Reliance on the basis of its innovative and customer centric services if utilizes this

opportunities can grow rapidly. These opportunities lie in the field of rural market

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untapped urban areas HNI (High Network Individuals) clients and differentiated products

for different classes in the society.

THREATS:

The established companies like LIC, TATA AIG, Birla Sun Life etc are always

representing new threats in the form of their increasing market share and product also the

changing govt. and budgetary policies are among the biggest threats.

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 FINDINGS

Findings :

According to my analysis the noteworthy points are:

Most of the people buy life insurance as just a tax benefit tool or as a life cover while only a few of the respondent

take it as a saving option. The reason for this is lack of knowledge of insurance benefits among the people.

A Majority of the respondent buy insurance products because of the need reason while rest of the clients buy for the

brand purpose.

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A Majority of the people come to know about the policies from the Direct Selling Agents.

A Majority of the people are satisfied by the riders associated with their policies offered in Future An and

Most of the clients are satisfied by the services offered by there insurance company while some says that they are not

satisfied by the services.

Most of the clients want more Transparency from the side of the company.

SUGGESTIONS
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 SUGGESTIONS AND RECOMMENDATION

The people think that insurance is a tool to protect their family & a tax saving device. They are

aware of the fact & realizing its, importance. The company should try to expand & build up its

infrastructure because there is a large potential for insurance in India.

Company should come up with its branch in kanpur With the objective and goals to meet the

demands & expectations of the public. Because the entrance of private players will increase the

competition and it would be a tough task to secure a good position in market.

Since future generali india is leading with several companies policies it should be easy for them to

penetrate into the market and secure a good position if they pay greater attention to the service part

provided to their customer and thereby forming a long and trusted relationship.

Our exhaustive research in the field of Life Insurance threw up some intresting trends which can

be seen in the above analysis. A general impression that future generali india gathered during Data

collection was the immense awareness and knowledge among people about various companies and

their insurance products. People are beginning to look beyond LIC for their insurance needs and

are willing to trust private players with their hard earned money.

People in general have been impressioned by the marketing and advertising campaigns of

insurance companies. A high penetration of print , radio and Television ad campaigns over the

years is beginning to have its impact now.

Another heartning trend was in terms of people viewing insurance as a tax saving and investment

instrument as much as a protective one. A very high number of respondants have opted for

insurance for such purposes and it shows how insurance companies ahve been successful to attract

public money in recent times.

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FCHL intends to grow its investment advisory base and assets under management and also enter

into new sectors that are complimentary to its existing business. FCHL needs to augment capital

base to meet future capital requirements for expansion of retail financial services business.

Strong brand, experienced management team, synergy with the Future Group and a deep

understanding of the retail sector will enable the company substantially when operation ramp-up

will be required.

CONCLUSION
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 SUMMARY AND CONCLUSION

SUMMARY OF LEARNING EXPERIENCE

Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also a

sector, which leads to benefits across the full spectrum, from the individual who now have wider

choices, to the economy, which see increased savings, to the infrastructure sector, which can look

forward to long term funding being available. In an under-insured economy, nefuture generali

indiar channels of distribution have to be utilized to intensify the reach of insurance both in urban

and rural markets. This will create huge employment opportunities not only within insurance

companies but also as agents and consultants of insurance companies

Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also a

sector, which leads to benefits across the full spectrum, from the individual who now have wider

choices, to the economy, which see increased savings, to the infrastructure sector, which can look

forward to long term funding being available. In an under-insured economy, nefuture generali

indiar channels of distribution have to be utilized to intensify the reach of insurance both in urban

and rural markets. This will create huge employment opportunities not only within insurance

companies but also as agents and consultants of insurance companies.

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Future Capital Holdings (FCHL) is promoted by Pantaloon Retail India Ltd., the flagship company

of the Future Group, which is one of Indias leading organized multi-format retailers and focuses

on consumption-led businesses in India. Future Capital is the financial services arm of the Future

Group and its primary lines of businesses are investment advisory & asset management, retail

financial services and research. The Future Groups other businesses includes Future Capital,

Future Media, Future Brands, Future Logistics and Future Bazaar.

FCH intends to leverage Future Groups deep understanding of the retail sector and the Indian

consumer, and identify certain gaps in the market for retail financial services and develop its

product and service offering to address those gaps. It follows a mentoring approach with regard

to private equity investment advisory services. FCH will commence the distribution of financial

products, including credit cards. FCHL has entered into an agreement with ICICI Bank for

marketing and distribution of the Future Card. It also intends to become a corporate agent for

Future Generali India Assurance Co. Ltd. for general insurance products and Future Generali India

Insurance Co Ltd. for Life insurance products. FCH intends to become one of the leading retailers

of financial products and services in India. FCHs focus is on achieving a pan India geographic

reach and becoming one of the leading retailers of financial products and services in india FCHs

three primary lines of business are investment advisory services, retail financial services and

research.

The development of flexible products to suit individual requirements is what will differentiate the

winners from the also-rans. The key to success is in providing insurance solutions, not

standardized insurance products. The concept of riders/optional benefits has already been a huge

innovation brought about by the new players, which has led to customization of products for

individual needs. Hofuture generali indiaver, companies may differentiate themselves on the basis

of product segments that they choose to focus on and excel in.

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Different companies may hofuture generali indiaver choose different channels and different

geographies to focus on. The channel options are - tied agency force, corporate agents and brokers

and this is an area where different companies will make different choices. Many companies like

future generali are focusing on all channels whereas companies like Max New York Life

are focusing on the tied agency force only. Customer interface will be a key challenge for life

insurance companies and includes every that interaction that the customer has with the company,

such as sales, new business underwriting, policy servicing, premium payments, claim processing

and so on. Technology can play a crucial role in delivering the highest standards of service set by

the company and it will be imperative for any serious player to excel in all of these.

The level of demand is latent and will have to be activated considerably. The market needs to be

developed. Greater awareness of insurance and the need to have it as a protection tool rather than

as a tax planning measure needs to be appreciated by the Indian people. Various communication

tools including advertising, direct marketing and road shows contribute to all this and different

companies take different approaches on these.

Insurers have imparted certain flexibility to premium payment options in order to address

this concern. For instance, one now have the option to pay your premiums upfront, which is then

carried forward for the tenure of the policy. The yearly premiums are drawn from the initial

corpus. Insurers have also introduced the concept of automatic cover maintenance to protect your

policy from lapsing owing to your omission to pay your premium on time. Under this, in the event

of your not paying the premium, the insurer dips into your investment account to the extent of the

premium. Of course, this comes with an in-built drawback: your investment portion diminishes

year on year to the extent of the amount paid to cover your risk.

This can play a significant role for marketing in the Indian scenario. Since Internet users are

comparatively lesser than countries such as US, the offline mode will be preferred in India.

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Although the distribution model is largely agent-based, wherever the customer is in contact with

the company, this factor can play a significant role in luring the customer.

The most important factor that materializes sales and maintains customer relationships on a long-

term basis is this factor. No matter what distribution strategy a company adopts, customer

relationship has to be taken care of in order to maintain the customer base on a long-term basis.

ANNEXURE
AND
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APPENDICES

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ANNEXURE AND APPENDICES

APPENDIX

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BIBLIOGRAPHY

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 BIBLIOGRAPHY

SEARCH ENGINES DATE TIME

www.licindia.com

www.irda.org

WEBSITE VISITED DATE TIME

www future generali india.com 18-02-17 10AM

BOOK REFFERED AUTHOR EDITION

Research Methodology Kothari C.R Edition II

Statistics for management S. P. Gupta Edition-1

Magazine

Insurance World

The Outlook Money

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