PROJECT REPORT

ON
YOUTH’S PERCEPTION TOWARDS
INSURANCE
BY
MONICA NAIDU
ROLL NO – 6
SPECIALIZATION – M.A BUSINESS
ECONOMICS.
K.G JOSHI BEDEKAR COLLEGE OF ARTS
AND N.G BEDEKAR COLLEGE OF
COMMERCE
 INDEX
SR NO. TOPIC NAME PAGE NO.
1 Acknowledgement 3
2 Abstract 4
3 Introduction 5-6
4 Objectives of the 7
study
5 Research methodology 8
6 Need for the study 9
7 Importance of the 9
study
8 Scope of the study 9
9 Hypothesis 10
10 Research design and 10
sampling plan
12 Limitations of the 10
study
13 Data collection 11
instrument (Tools)
14 Review of literature 12
15 Data analysis and 14-38
interpretation
16 Findings of the study 39
17 Suggestions and 40
Recommendations
18 Conclusions 41
19 References 42
 ACKNOWLEDGEMENT
I express my sincere thanks to the I/C Principal, Dr. Suchitra Naik, VPM’s
K.G Joshi College of Arts, Thane(w) affiliated to the University of Mumbai
who has given me the opportunity to pursue the M.A Business Economics
Program.

I also express my thanks to our Course Coordinator Dr. Deepak Sable and
other staff of the Economics Department for their constant support and
guidance.

I would like to express my special gratitude and thanks to my project guide

and mentor Prof. Roma Bhagtiani for her kind encouragement and guidance,
which helped me to complete the project efficiently.

My thanks and appreciation also go to my Colleagues and Batchmates who

helped me in developing the project and people who have willingly helped me
out with their abilities.

I remain, yours sincerely,

Monica Naidu (Roll no – 6)

 ABSTRACT
The insurance industry in our country is on the threshold of a new era of
rapid expansion. A more competitive environment is emerging with new
participants entering the insurance industry. Risk management has a wide
application. It is relevant not only to the insurance industry but also to many
other organizations in the fields of business and finance. To understand risk,
measure it and weigh its consequences are an integral part of management.

Financial institutions in the management of the funds placed with them have
to reckon with market risk, credit risk, counter party risk and liquidity risk.
To mitigate the impact of various risks is the essence of risk management.
In this paper an attempt has been made to know the difficulties on sales
position of insurance industries and also a detailed study is made to identify
the potential segment of people to market insurance in Thane.

Keywords:

Insurance; awareness; youth’s perception; market segment; insurance

products
 INTRODUCTION
Insurance is a federal subject in India and has a history dating back to 1818.
Life and general insurance in India are still a growing sector with huge
potential for various global players with the life insurance premiums
accounting to 2.5% of the country's GDP while general insurance premiums
to 0.65% of India's GDP. The Insurance sector in India has gone through a
number of phases and changes, particularly in the recent years when the
Govt. of India in 1999 opened up the insurance sector by allowing private
companies to solicit insurance and also allowing FDI up to 26%. Ever since,
the Indian insurance sector is considered as a booming market with every
other global insurance company wanting to have a lion's share. Currently, the
largest life insurance company in India is still owned by the government.

The insurance landscape in India is undergoing major changes. Closed to

foreign competition since nationalization in 1956 the life insurance industry
had been protected from competitive pressures. Now, with the re-opening of
the sector, as the aftermath of liberalization and privatization, several new
players have entered the scene. The game is old but the rules are new and
still developing.

The insurance industry has indeed awakened to a deregulated environment in

which several private players have partnered with multinational insurance
giants. Until recently it was monopolized by the government players namely,
Life Insurance Corporation and General Insurance Company. With the big
private corporates like the AMP Sanmar Assurance Co. Ltd, ICICI Prudential
Life Insurance Co. Ltd, Tata AIG insurance, Bajaj Allianz and HDFC
Standard Life Insurance in the fray now, competition has reached a whole
new level.
 The insurance industry in our country is on the threshold of a new era of
rapid expansion. A more competitive environment is emerging with new
participants entering the insurance industry. Risk management has a wide
application. It is relevant not only to insurance industry but also to many
other organizations in the fields of business and finance. To understand risk,
measure it and weigh its consequences are an integral part of management.
Financial institutions in the management of the funds placed with them have
to reckon with market risk, credit risk, counter party risk and liquidity risk.
To mitigate the impact of various risks are the essence of risk management.
 OBJECTIVES OF THE STUDY
•To study the effectiveness of distribution of insurance to the general
youth.

•To check the awareness level of people regarding insurance in Thane.

•To Understand the customer’s perception about insurance.

•To recommend the best market segment for the distribution of insurance
products.
 RESEARCH METHODOLOGY
The study has been conducted using both primary as well as secondary data.
The primary data was obtained from the analysis done through direct
questionnaire provided to the respondents. Information regarding the
project was obtained from youths.

The information was obtained through the questionnaire and discussions

held. The project undertaken was Descriptive in nature as it was trying to
find out the perception and satisfaction level. Questionnaires were
distributed among 100 respondents in Thane. The responses received,
formed the basis of primary data required for the study. Data collected was
completed, classified and tabulated for analysis.

Literature was extracted from various sources which include journals,

websites and books which formed the basis of secondary data required for
the study. Interaction with people of the Industry helped in describing the
potential segment of people insurance in Thane.
 NEED FOR THE STUDY
Many studies have been conducted in the past on various aspects of
insurance by a wide array of researchers. But none has touched upon youth’s
perception towards insurance in Mumbai and Thane region.

Also, the youth will be the economy driver who will Drive the economy. This
knowledge aims to fill that gap.

IMPORTANCE OF THE STUDY

Insurance is one of the important pillars of Indian economy. This study aims
to analyze the youth’s perception towards insurance and their functions in
Mumbai and thane region through questionnaire specifically designed for the
study.

23 question trying to establish links between youth and insurance, what they
feel, how insurance is and how it comes in contact with its instruments in
daily life. These youth will be the drivers of Indian economy who will be
responsible for the growth or decline of the economic progress.

SCOPE OF THE STUDY

This study is related to the analysis of certain selected factors. It analysis
youth’s perception towards insurance. The study is limited to Mumbai and
thane cities only.
 HYPOTHESIS
➢ H0 – Insurance industry is functioning optimistically.
➢ H1 - Insurance industry is not functioning optimistically.
➢ H2 - Insurance industry’s performance is average.

RESEARCH DESIGN AND SAMPLING

PLAN
For obtaining complete and accurate information, Descriptive research is
chosen.

Sample Area: Mumbai and Thane, Maharashtra, India

Sample Size: 100

LIMITATION OF THE STUDY

Sample size of study is limited to 40 only. The sample size may not
represent the whole market.

The study is limited to the potential youths of Mumbai and Thane cities only.
Therefore, the inferences cannot be generalized.
 DATA COLLECTION INSTRUMENT
(TOOLS)
Both primary and secondary data collection methods were used for this
study. The present study is bases on primary sources of data extracted
through methods like questionnaire designed for the study (collected online
through google forms).

Secondary sources of data have also been liberally utilized, which have been
collected from various research papers of reputed journals, magazines, and
websites.
 REVIEW OF LITERATURE
K.V. Ramanathan (2011) in his article “A study on policy holder’s
satisfaction with reference to life Insurance Corporation of India”
identified a reliable and valid instrument for assessing customer perceived
service quality, awareness level, and satisfaction level of customers for life
insurance industry. Here, service quality needs to be measured using a six-
dimensional hierarchal structure consisting of assurance, competence,
personalized financial planning, corporate image, tangibles and technology
dimensions. This would help the service managers to efficiently allocate
resources, by focusing on important dimensions first.

Sivakumar & Priyan (2010) in their article “A comparative study of public

and private life insurance companies in India” found that insurance
companies are increasingly taping the semi-urban and rural areas to take
across the message of protection of life through insurance cover. Higher
level of protection implies that customers are more conscious of the need
for risk mitigation, greater security, and about the future of their
dependents. Insurance sector has been evolving and improving its
underwriting and risk management abilities.

Keerthi, R Vijayalakshmi (2009) in their article “A study on the

Expectations and perceptions of the services in private life insurance
companies” the policy holders’ expectations are well met in the case of
certain factors like quality. But in the case of other variables, there exists a
significant gap which means that policy holders have experienced low levels
of service as against their expectations. If all the players in the life
insurance industry focus on the effective delivery of services, they can win
the hearts of customers and anticipate their increased market share.
 Keerthi, R Vijayalakshmi (2009) in their article “A study on the
Expectations and perceptions of the services in private life insurance
companies” the policy holders’ expectations are well met in the case of
certain factors like quality. But in the case of other variables, there exists a
significant gap which means that policy holders have experienced low levels
of service as against their expectations. If all the players in the life
insurance industry focus on the effective delivery of services, they can win
the hearts of customers and anticipate their increased market share.

Anshuja Tiwari, (2012) evaluated bancassurance model of distribution of

insurance services has been discussed with reference to lift insurance
industry. Insurance sector was opened up in the year of 2000. Before that
only individual insurance agent was allowed to sell life, insurance products
but catering the need of industry IRDA introduced several other
distribution options like corporate agent, broker, direct selling and
bancassurance.

Arvind Kumar Singh, (2014) studied the current scenario of life insurance
sector has been taken up. At present the market is moving rapidly and
aggressively. There is competition and force to more ahead. The features of
this expansion strategy are hunting for new business looking up for potential
and grabbing it.

Arup Mazumdar, (2011) analyzed the broking system, challenges &

opportunities are discussed and a new marketing concept as Relationship
Model approach has been argued. Indian insurance industry is growing fast
after privatization and moving ahead.

Arnika Srivastava, (2012) studied the review of life insurance industry in

the country has taken up. Life insurance is the backbone of economy. LIC i.e.
Life insurance Corporation has monopoly in life insurance sector. But after
the IRDA Act, the sector is opened up for private Sectors.
 DATA ANALYSIS AND
INTERPRETATION
The data and information collected is classified, tabulated and processed.
Its findings are presented in a systematic manner below.

1) What is your age?

2) What’s your qualification?
3) Are you aware about the insurance industry in India?
4) What’s your occupation?
5) One must have a suitable insurance policy in these days of uncertainty?
6) Are you insured?
7) If ‘YES’ from whom have you brought a policy?
8) Who influences you to get insured?
9) How many insurance policies you have?
10) Which of the following policies you have?
11) What is the periodicity of premium?
12) Has your policy lapsed any-time due to the non-payment of insurance
premium?
13) Are you aware about the insurance bonus of the policies?
 FINDINGS OF THE STUDY
• 42.3% respondents belong to the age group of 20-25 and 9.6%
respondents belong to the age group of 25-29.
• 32.69% respondents are graduates and post-graduates and the rest
are others.
• 78.85% respondents have sound knowledge about the insurance
industry in India.
• 49.06% people are self-employed where we got most of our responses.
• 57.69% respondents agree to have a suitable insurance policy in these
days of uncertainty.15.38 % respondents strongly agree,25%
respondents are neutral and 1.92% disagree
• 94.23% respondents are insured and 5.77% are not.
• 59.62% people are insured from the private insurer and 40.38% are
insured from LIC of India.
• 40.22% are most of the respondents influenced to get insured from
electronic media.27.17% from print media, 17.78% from the insurance
agent and 12.22% from friends and relatives.
• 55.77% respondents have less than 3 insurance coverage.42.31%
respondents have 3 insurance coverage and1.92% respondents have 4
to 6 insurance coverage.
• 27.27% respondents have the single premium policy and very less
7.44% respondents have endowment policy.
• 32.69% respondents pay the quarterly or monthly premium.26.92%
respondents pay the premium twice annually and 7.69% annually.
• 50% respondents say that their policy has not lapsed due to non-
payment of premium.7.69% say yes and 42.31% say it lapsed sometime.
• 63.46% respondents are not aware about the insurance bonus of
policies and 36.54% are aware.
 SUGGESTIONS AND
RECOMMENDATIONS
• Effective measures must be taken to improve the awareness of
insurance among the untapped population.
• New promotional strategies must be adopted by insurance companies
to market insurance in Mumbai.
• Insurance companies could target college students to market insurance
and have to put more effort on these segments.
• People prefer a part time job in insurance industry. So, insurance
companies have to find the interested people in working part time and
special training must be given to them.
• Among private insurance sector ICICI Prudential is rated No. 1 with a
40% of market share. Other insurance companies have to take
measures to improve their popularity and market share among the
public.
• The awareness among must be improved through other effective media
like television, magazines etc.
• The misconception on insurance marketing among the public should be
removed by using effective awareness programs
 CONCLUSION
The insurance sector has a vast potential not only because incomes are
increasing and assets are expanding but also because the volatility in the
system is increasing. In a sense, we are living in a more risky world. Trade is
becoming increasingly global. Technologies are changing and getting replaced
at a faster rate. In this more uncertain world, for which enough evidence is
available in the recent period, insurance will have an important role to play in
reducing the risk burden individuals and businesses have to bear. In the
emerging scenario, the insurance industry must pay attention to

(a) Product innovation,

(b) Appropriate pricing and

(c) Speedy settlement of claims.

The approach to insurance must be in tune with the changing times. The
mission of the insurance sector in India should be to extend the insurance
coverage over a larger section of the population and a wider segment of
activities. The three guiding principles of the industry must be to charge
premium no higher than what is warranted by strict actuarial considerations,
to invest the funds for obtaining maximum yield for the policy holders
consistent with the safety of capital and to render efficient and prompt
service to policy holders. With imaginative corporate planning and an abiding
commitment to improved service, the mission of widening the spread of
insurance can be achieved
 REFERENCES
The Economics Discussion Forum

www.economicdiscussion.net

Wikipedia, the free encyclopedia

www.wikipedia.org

Your Article Library Forum

www.yourarticlelibrary.com

www.researchgate.net