IDBI FEDERAL LIFE INSURANCE CO LTD

Summer Internship
Project Report
Factors affecting buying behavior of consumers
of Life Insurance products
Rishi Kharbanda (IIM Nagpur)
 Acknowledgment
I sincerely appreciate the support, guidance, advice and inspiration of all the
people who have been instrumental in shaping this report of the summer internship
program. I am honored and incredibly thankful to Mr. Gireesh Udaiyar, for
providing with an opportunity to work with IDBI Federal Life Insurance Company
Limited and interacting with all the participants as and when needed. I would like
to thank Mr. Manas Das explicitly, my project mentor at IDBI Federal Life
Insurance Company Limited, for providing the resources to complete the summer
internship program successfully and for guiding throughout by providing his
invaluable acumens while working on this project. It would not have been possible
to prepare this report had it not been for the immense help by Mr. Ezad Ahmed and
Mr. Amit Singh and all the essential persons who took out time to help. I would
also extend my sincere gratitude to Prof. Ferojuddin M. A. Khan for providing all
the necessary guidance in the process of project completion. A very special thanks
to Mr. Zakir Hussain, who irrespective of his busy schedule, helped at every
juncture of this internship module. I express our sincere appreciation to Indian
Institute of Management, Nagpur for giving us this rare chance of working in an
organization of stature like IDBI Federal Life Insurance Co. Ltd. and
understanding the managerial problems that prevail there.
Contents
Chapter 1.....................................................................................................................................................6
Objective of Study...................................................................................................................................6
Source of Data Collection........................................................................................................................6
Introduction of Insurance/Banking Sector...............................................................................................6
Introduction about IDBI Life Insurance Company..................................................................................14
Details of the Company.........................................................................................................................14
Nature of Business.................................................................................................................................20
Mission, Vision & Values........................................................................................................................20
Products of IDBI Federal Life Insurance Co. Ltd.:...................................................................................21
Size of the company..............................................................................................................................27
Market Share & Position of the company..............................................................................................28
Organization Structure..........................................................................................................................30
Chapter 2...................................................................................................................................................31
SWOT Analysis.......................................................................................................................................31
Chapter 3...................................................................................................................................................32
Promotional Strategy of IDBI Federal....................................................................................................32
CRM Policies of IDBI Federal..................................................................................................................32
Market Mix of IDBI Federal....................................................................................................................33
Segmentation of IDBI Federal................................................................................................................33
Chapter 4...................................................................................................................................................35
Balance Sheet of IDBI Federal....................................................................................................................35
P&L Statement of IDBI Federal..............................................................................................................36
Chapter 5...................................................................................................................................................36
BCG Matrix............................................................................................................................................36
Chapter 6...................................................................................................................................................38
Identification of Factors Affecting Buying Behavior of Customers.........................................................38
Questionnaire Design............................................................................................................................40
Interpretation & Analysis:..................................................................................................................44
Conclusion.............................................................................................................................................45
 Chapter 1
Objective of Study
1. To study about the life insurance sector in India.
2. To study the market position of IDBI life insurance company.
3. To determine the factors that affects the buying behavior of customers of life
insurance.

Source of Data Collection

Primary data:

i. Professionals working at IDBI.

ii. Training provided by IDBI.
iii. Questionnaire survey conducted among consumers.

Secondary data:

i. Blogs
ii. Wikipedia
iii. IDBI website
iv. Social Media

Introduction of Insurance/Banking Sector

The insurance industry of India consists of 51 insurance companies of which 24 are

in life insurance business and 27 are non-life insurers. Among the life insurers,
Life Insurance Corporation (LIC) is the sole public sector company. Apart from
that, among the non-life Insurers, there are six public sector insurers. In addition to
these, there is sole national reinsurer, namely, General Insurance Corporation of
India. Other stakeholders in Indian Insurance market include Agents (Individual
and Corporate), Brokers, Surveyors and Third Party Administrators servicing
Health Insurance claims.
Out of 27 non-life insurance companies, 4 private sector insurers are registered to
underwrite policies exclusively in Health, Personal Accident and Travel insurance
segments. They are Star Health and Allied Insurance Company Ltd, Apollo
Munich Health Insurance Company Ltd, Max Bupa Health Insurance Company
Ltd and Religare Health Insurance Company Ltd. There are two more specialized
insurers belonging to public sector, namely, Export Credit Guarantee Corporation
of India for Credit Insurance and Agriculture Insurance Company Ltd for Crop
Insurance.

Market Size

During April 2015 to February 2016 period, the life insurance industry recorded a
new premium income of Rs 1.072 trillion (US$ 15.75 billion), indicating a growth
rate of 18.3 per cent. The general insurance industry recorded a 14.1 per cent
growth in Gross Direct Premium underwritten in FY2016 up to the month of
February 2016 at Rs 864.2 billion (US$ 12.7 billion).

India's life insurance sector is the biggest in the world with about 360 million
policies which are expected to increase at a Compound Annual Growth Rate
(CAGR) of 12-15 per cent over the next five years. The insurance industry plans to
hike penetration levels to five per cent by 2020.

The country’s insurance market is expected to quadruple in size over the next 10
years from its current size of US$ 60 billion. During this period, the life insurance
market is slated to cross US$ 160 billion.

The general insurance business in India is currently at Rs 78,000 crore (US$ 11.44
billion) premium per annum industry and is growing at a healthy rate of 17 per
cent.

The Indian insurance market is a huge business opportunity waiting to be

harnessed. India currently accounts for less than 1.5 per cent of the world’s total
insurance premiums and about 2 per cent of the world’s life insurance premiums
despite being the second most populous nation. The country is the fifteenth largest
insurance market in the world in terms of premium volume, and has the potential to
grow exponentially in the coming years.
Growth

The Indian life insurance industry has begun to recover and is likely to report 12-
15% growth in financial year (FY) 2016-17, according to an ICRA paper analyzing
the performance of nine life insurance companies in India, one in the public sector
and eight in the private sector. Together, they represent over 87% of the total
annualized premium equivalent (APE) of the life insurance industry during first
nine months (April-December) of FY16.

The companies analyzed are: Life Insurance Corporation of India (LIC), ICICI
Prudential Life Insurance Corp. Ltd, Bajaj Allianz Life Insurance Co. Ltd, SBI
Life Insurance Co. Ltd, Birla Sunlife Insurance Co. Ltd, Max Life Insurance Co.
Ltd, Reliance Life Insurance Co. Ltd, Kotak Mahindra Old Mutual Life Insurance
Ltd, and HDFC Standard Life Insurance Co. Ltd.

During the period, the industry APE grew 6% year-on-year (y-o-y), as against a
contraction of 9% y-o-y in FY15 to stand at Rs.37,300 crore (it was Rs.35,000
crore in the first nine months of FY15). The growth for private companies was
13% y-o-y during the period. LIC witnessed an improvement to 1% y-o-y during
April-December FY16 from a contraction of 24% in FY15.

During the last few quarters, LIC reported poor APE performance following the
contraction in its regular premium collections and the weakness in its unit-linked
insurance plan (Ulip) portfolio against the backdrop of an upbeat domestic stock
market. In FY15, the regular segment contracted by 27% y-o-y and reported
volumes of Rs.23,000 crore. However, in first nine months of FY16, contraction in
the regular premium segment reduced to 4% y-o-y.

LIC’s regular premium segment contracted 4% y-o-y during the reported period,
while that for the private companies analyzed grew by 12% y-o-y during this
period. Industry APE drew adequate support from declining LIC contraction rates
and marginal improvement in the regular premium growth rate for private
companies (29% y-o-y in first nine months of FY16, as against 25% in FY15).

In line with the trend witnessed during the past few years, especially since the
regulatory changes of September 2011, the proportion of single premium in the
total new business premia generated by the industry continued to rise in the first
nine months of FY16. It rose to 63% during the stated period from 58% both in
FY15 and April-December FY15.
But contrary to the trend of maintaining the single-premium proportion stable at
around 30% during the past few years, private companies reported an increase in
the proportion to 34% in the period of FY16, as against 31% in the year-ago
period. The increase followed the sharper focus that they brought to the single-
premium segment. LIC, on the other hand, continues with its historical trend of
growing its new business mix in favor of single-premium products. As of
December 2015, single premium accounted for 75% of LIC’s total new business,
versus 70% in December 2014.

Private insurers, who till last year had not paid much attention to the single-
premium segment, have turned more aggressive.

Single-premium collections for them grew at a faster pace (29% y-o-y), compared
with LIC (24% y-o-y), enabling industry collections in the segment to rise 25% y-
o-y in this period.

The regular-premium segment has remained on a marginally lower growth

trajectory. For private insurers, this segment grew 12% y-o-y during the period,
while for LIC it contracted 4% y-o-y (contraction of 27% in FY15). Consequently,
for the overall industry, the growth rate in the regular premium remained at the
sub-5% levels in 9M FY16 (as against a contraction of 10% y-o-y in FY15).

Investments

The following are some of the major investments and developments in the Indian
insurance sector.

 The Insurance sector in India is expected to attract over Rs 12,000 crore (US$
1.76 billion) in 2016! as many foreign companies are expected to raise their
stake in private sector insurance joint ventures.
 QuEST Global, a pure-play engineering and Research and Development (R&D)
services provider, has raised investment of around Rs 2,396 crore (US$ 351.54
million) from leading global investors Bain Capital, GIC and Advent
International for a minority stake in the company.
 Foreign Direct Investment in the insurance sector stood at US$ 341 million in
March-September, 2015, showing a growth of 152 per cent compared to the
same period last year.
 Insurance firm AIA Group Ltd has decided to increase its stake in Tata AIA
Life Insurance Co Ltd, a joint venture owned by Tata Sons Ltd and AIA Group
from 26 per cent to 49 per cent.
 Canada-based Sun Life Financial Inc plans to increase its stake from 26 per cent
to 49 per cent in Birla Sun Life Insurance Co Ltd, a joint venture with Aditya
Birla Nuvo Ltd, through buying of shares worth Rs 1,664 crore (US$ 244.14
million).
 Nippon Life Insurance, Japan’s second largest life insurance company, has
signed definitive agreements to invest Rs 2,265 crore (US$ 332.32 million) in
order to increase its stake in Reliance Life Insurance from 26 per cent to 49 per
cent.
 The Central Government is planning to launch an all-in-one insurance scheme
for farmers called the Unified Package Insurance Scheme (Bhartiya Krishi
Bima Yojana). The proposed scheme will have various features like crop
insurance, health cover, personal accident insurance, live stock insurance,
insurance cover for agriculture implements like tractors and pump sets, student
safety insurance and life insurance.
 Government launched a special enrolment drive, Suraksha Bandhan Drive
comprising of sale of gift cheques and launch of deposit schemes in bank
branches, to facilitate enrolment under Pradhan Mantri Suraksha Bima Yojana
(PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

Government Initiatives

The Government of India has taken a number of initiatives to boost the insurance
industry. Some of them are as follow:

 Foreign investment will be allowed through automatic route for up to 49 per

cent subject to the guidelines on Indian management and control, to be verified
by the regulators.
 Service tax on single premium annuity policies has been reduced from 3.5 per
cent to 1.4 per cent of the premium paid in certain cases.
 Government insurance companies to be listed on the exchanges
 Service tax on service of life insurance business provided by way of annuity
under the National Pension System regulated by Pension Fund Regulatory and
Development Authority (PFRDA) being exempted, with effect from 1 April
2016.
 The Insurance Regulatory and Development Authority (IRDA) of India has
formed two committees to explore and suggest ways to promote e-commerce in
the sector in order to increase insurance penetration and bring financial
inclusion.
 IRDA has formulated a draft regulation, IRDAI (Obligations of Insures to Rural
and Social Sectors) Regulations, 2015, in pursuance of the amendments brought
about under section 32 B of the Insurance Laws (Amendment) Act, 2015. These
regulations impose obligations on insurers towards providing insurance cover to
the rural and economically weaker sections of the population.
 The Government of India has launched two insurance schemes as announced in
Union Budget 2015-16. The first is Pradhan Mantri Suraksha Bima Yojana
(PMSBY), which is a Personal Accident Insurance Scheme. The second is
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which is the
government’s Life Insurance Scheme. Both the schemes offer basic insurance at
minimal rates and can be easily availed of through various government agencies
and private sector outlets.
 The Uttar Pradesh government has launched a first of its kind banking and
insurance services helpline for farmers where individuals can lodge their
complaints on a toll free number.
 The select committee of the Rajya Sabha gave its approval to increase stake of
foreign investors to 49 per cent equity investment in insurance companies.
 Government of India has launched an insurance pool to the tune of Rs 1,500
crore (US$ 220.08 million) which is mandatory under the Civil Liability for
Nuclear Damage Act (CLND) in a bid to offset financial burden of foreign
nuclear suppliers.

Industry outlook
As of the first half (April-September) of FY16, domestic life insurance companies
remained well capitalized, partly because of the low growth in gross premium
collections. The capitalization levels are comfortable, despite deteriorating
profitability matrices largely on account of the large cushion of capital available—
over and above the minimum regulatory requirement.

After the passage of the Insurance Laws (Amendment) Bill, 2015, which sets a
higher cap on foreign investment in insurance joint ventures (JVs), nearly all
foreign JV partners have shown interest in increasing the equity stake in their
respective JVs.

The announcements made so far suggest Rs.10,000-crore deals have been executed
or are in their final stages of execution in the life insurance industry. But a
significant part of the capital may go to the Indian JV partners concerned as they
look to monetise their investments. In most of these deals, the post-money
valuation of the JV stands between 1.0 times and 4.0 times their FY15 Gross
Premium Written. If one were to use another multiple, such as Price/Net Worth,
the range would stand substantially wider between 6.0 and 7.0 times.

Road Ahead

India's insurable population is anticipated to touch 750 million in 2020, with life
expectancy reaching 74 years. Furthermore, life insurance is projected to comprise
35 per cent of total savings by the end of this decade, as against 26 per cent in
2009-10.

The future looks promising for the life insurance industry with several changes in
regulatory framework which will lead to further change in the way the industry
conducts its business and engages with its customers.

Demographic factors such as growing middle class, young insurable population

and growing awareness of the need for protection and retirement planning will
support the growth of Indian life insurance.
 Introduction about IDBI Life Insurance Company
Company’s Profile

Name of the company IDBI Federal Life Insurance Co. Ltd.

Address Aggarwal Corporate Heights, Plot no.

A-7, District Centre, Netaji Subash
Place, Delhi, 110034
Telephone No. 1800 209 0502 (Toll Free)
Email id
manas.das@idbifederal.com

Website www.idbifederal.com
Type of the organization Insurance
Corporate office address 1st Floor Trade View, OASIS Complex,
Kamala city, PB Marg, Lower Parel(w)
Mumbai - 400013
Areas of operation All over the India
Specific Function area Bank & Insurance

Details of the Company

IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s

premier development and commercial bank, Federal Bank, one of India’s leading
private sector banks and Ageas, a multinational insurance giant based out of
Purpose. In this venture, IDBI Bank owns 48% equity while Federal Bank and
Ageas own 26% equity each. Having started in March 2008, in just five months
of inception, IDBI Federal became one of the fastest growing new insurance
companies to garner Rs 100 Cr in premiums. Through a continuous process of
innovation in product and service delivery IDBI Federal aims to deliver world-
class wealth management, protection and retirement solutions that provide value
and convenience to the Indian customer. The company offers its services through
a vast nationwide network of 3014 partner bank branches of IDBI Bank and
Federal Bank in addition to a sizeable network of advisors and partners. As on
31stMarch 2015, the company has issued over 8.35 lakh policies with a sum
assured of over Rs. 53,918Cr.IDBI Federal Life Insurance has total assets under
management of 4,893 crore and a robust capital base of over 800 crores, as on
March 31, 2016.
IDBI Federal today is recognized as a customer-centric brand, with an array of
awards to their credit. They have been awarded the PMAA Awards (2009) for best
Dealer/Sales force Activity, EFFIE Award (2011) for effective advertising, and
conferred with the status of ‘Master Brand 2012-13’ by the CMO Council USA
and CMO Asia.

IDBI Bank

IDBI Bank Ltd. is a Universal Bank with its operations driven by a cutting edge
core Banking IT platform. The Bank offers personalized banking and financial
solutions to its clients in the retail and corporate banking arena through its large
network of Branches and ATMs, spread across length and breadth of India. We
have also set up an overseas branch at Dubai and have plans to open representative
offices in various other parts of the Globe, for encasing emerging global
opportunities.
As on March 31, 2011, the Bank had a network of 816 Branches and 1372 ATMs.
The Bank's total business, during Fey 2010-11, reached Rs. 3,37,584 Crore,
Balance sheet reached Rs. 2,53,377 Crore while it earned a net profit of Rs. 1650
Crore (up by 60%).
IDBI Bank Ltd. is today one of India's largest commercial Banks. For over 40
years, IDBI Bank has essayed a key nation-building role, first as the apex
Development Financial Institution (DFI) (July 1, 1964 to September 30, 2004) in
the realm of industry and thereafter as a full-service commercial Bank (October 1,
2004 onwards). As a DFI, the erstwhile IDBI stretched its canvas beyond mere
project financing to cover an array of services that contributed towards balanced
geographical spread of industries, development of identified backward areas,
emergence of a new spirit of enterprise and evolution of a deep and vibrant capital
market. On October 1, 2004, the erstwhile IDBI Bank converted into a Banking
company (as Industrial Development Bank of India Limited) to undertake the
entire gamut of Banking activities while continuing to play its secular DFI role.
Post the mergers of the erstwhile IDBI Bank with its parent company (IDBI Ltd.)
on April 2, 2005 (appointed date: October 1, 2004) and the subsequent merger of
the erstwhile United Western Bank Ltd. with IDBI Bank on October 3, 2006, the
tech-savvy, new generation Bank with majority Government shareholding today
touches the lives of millions of Indians through an array of corporate, retail, SME
and Agri products and services. 
Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business
strategy, a highly competent and dedicated workforce and a state-of-the-art
information technology platform, to structure and deliver personalized and
innovative Banking services and customized financial solutions to its clients across
various delivery channels.
As on March 31, 2013 IDBI Bank has a balance sheet of Rs. 3,22,769 Crore and
business size (deposits plus advances) of Rs 4,23,423 Crore. As a Universal
Bank, IDBI Bank, besides its core banking and project finance domain, has an
established presence in associated financial sector businesses like Capital Market,
Investment Banking and Mutual Fund Business. Going forward, IDBI Bank is
strongly committed to work towards emerging as the 'Bank of choice' and 'the
most valued financial conglomerate', besides generating wealth and value to all
its stakeholders. 

Federal Bank

Federal Bank Ltd is engaged in the banking business. The Bank operates in four
segments: treasury operations, wholesale banking, retail banking and other
banking operations. Treasury operations include investment and trading in
securities, shares and debentures. The Bank's products and services include
working capital, term finance, trade finance, specialized corporate finance
products, structured finance, foreign exchange, syndication services and
electronic banking requirements. Federal Bank Ltd was incorporated on April
28, 1931 with the name Travancore Federal Bank Ltd. The company was
established with an authorized capital of rupees five thousand at Nedumpuram, a
place near Tiruvalla in Central Travancore under the Travancore Company's
Act. The Bank was founded by K.P.Hormis. They started business of auction
-chitty and other banking transactions connected with agriculture and industry.
In May 18, 1945, the registered office of the Bank was shifted to Aluva. They
opened their first branch at Aluva and commenced operations. In the year 1946,
they opened their second branch at Angamally. In March 24, 1947, the name of
the Bank was changed to Federal Bank Ltd. In April 1947, they opened their
third branch of the Bank was at Perumbavoor. In July 11, 1959, the Bank was
licensed under Sec.22 of the Banking Companies Act, 1949. The Bank floated
several kuries one after another. They also introduced several new deposit
schemes during the same period. In the year 1964, the Bank took over the assets
and liabilities of the Chalakudy Public Bank Ltd, The Cochin Union Bank Ltd
and The Alleppey Bank Ltd. In the year 1965, the St.George Union Bank Ltd
was amalgamated merged with the Bank. In the year 1968, The Marthandom
Commercial Bank Ltd was amalgamated with the Bank. In the year 1970, the
Bank became a Scheduled Commercial Bank. In the year 1973, the Bank
became an Authorized Dealer in Foreign Exchange and the International
Banking Department of the bank was started functioning from Mumbai. In the
year 1975, the Bank opened 53 branches. In the year 1976, they opened 42
branches. In the year 1982, the Bank shifted the International Banking
Department to Cochin as part of consolidation and centralization of activities.

As part of the organization redesigning recommended by National Institute of

Bank Management (NIBM), the Agricultural Finance Department was set up in
head office in November 1984. In July 1985, the Bank set up Personnel and
Industrial Relations Department. Also, they installed the first Advanced Ledger
Posting Machine (ALPM-a Wipro banker) at Br.Aluva-Bank Junction branch. In
the year 1987, they inaugurated the administrative building complex. In the year
1989, the Bank entered into the Merchant Banking Operations. In March 1994,
the Bank came out with the public issue. In February 17, 1997, the bank
inaugurated their first ATM at Ernakulum North. In the year 2000, the Bank
started their Any Where Banking (ABB) at Bangalore connecting all branches
located in the Bangalore metro. They launched Depository Services in
association with NSDL. Also, they commenced Internet Banking under the
name of 'Fed Net' with software support from Infosys Technologies Ltd. They
entered into marketing pacts with some commercial agencies for their E-
commerce business. In the year 2001, the bank made a tie up with Escortel
Communications to launch mobile banking services using SMS technology.
Also, they launched a new deposit scheme christened as 'Suraksha' for senior
citizens. The bank became a member of INFINET, the financial network
supported by RBI. In February 2002, they set up full-fledged systems for the
RBI's Negotiated Dealing Systems (NDS) at the Funds & Investment Branch in
Mumbai, enabling online trading in securities. In the year 2003, the Bank
unveiled the Anywhere Banking that provided the convenience of doing
transactions from 300-plus interconnected branches.

In the year 2004, the Bank obtained the level of 100% interconnectivity among
all their branches. Also, they launched an Equity Subscription Scheme, a new
retail product for financing the IPOs and public issue applications of their own
customers. The Bank joined hands with ICICI Prudential Life Insurance
Company Ltd for premium collection through their branches and introduced
new Fed e-Pay services. In the year 2005, JRG Securities Ltd forged an alliance
with the Bank for providing loans for subscribing to initial public offers (IPOs).
The bank emerged as the first bank in India to offer Real Time Gross Settlement
(RTGS) across all of their branches. In September 2, 2006, Ganesh Bank was
amalgamated with the Bank and the 32 branches of erstwhile Ganesh Bank of
Kurundwad Ltd were successfully integrated to bank's network. During the
period of 2006-07, the Bank entered into a joint venture agreement with IDBI
Ltd & Fortis Insurance International N V for incorporating a Life Insurance
Company under the name of IDBI Fortis Life Insurance Company Ltd. During
the year 2007-08, the Bank opened their Representative office at Abu Dhabi,
Capital of UAE for the gateway of the bank to the whole of Middle East and
also as an interface between their existing customers of GCC countries and its
Branches /Offices in India. In March 2008, the Bank's joint venture life
insurance company, IDBI Fortis Life Insurance Company Ltd commenced their
operation. During the year 2009-10, the Bank opened 60 new branches and 115
new ATM centres. During the year 2010-11, they opened 71 new branches and
73 new ATMs. As on March 31, 2011, the total number of branches and ATMs
of the Bank increased to 743 and 805 respectively, as against 672 and 732 in the
last financial year. As of March 31, 2011, the Bank had two A category
branches and 78 branches designated as B category for handling the foreign
exchange business.
Ageas

Ageas is an international insurance group with a heritage spanning more than 180
years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen
to concentrate its business activities in Europe and Asia, which together make up
the largest share of the global insurance market.

These are grouped around four segments: Belgium, United Kingdom, Continental
Europe and Asia and served through a combination of wholly owned subsidiaries
and partnerships with strong financial institutions and key distributors around the
world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy,
Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in
France, Hong Kong and UK.

Ageas is the market leader in Belgium for individual life and employee benefits, as
well as a leading non-life player through AG Insurance. In the UK, Ageas has a
strong presence as the fourth largest player in private car insurance and the over
50’s market. Ageas employs more than 13,000 people in the consolidated entities
and over 20,000 in the non-consolidated partnerships and has annual inflows of
more than EUR 21 billion.

Ageas is an international insurance group with a heritage spanning more than 180
years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen
to concentrate its business activities in Europe and Asia, which together make up
the largest share of the global insurance market.

These are grouped around four segments: Belgium, United Kingdom, Continental
Europe and Asia and served through a combination of wholly owned subsidiaries
and partnerships with strong financial institutions and key distributors around the
world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy,
Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in
France, Hong Kong and UK.
Ageas is the market leader in Belgium for individual life and employee benefits, as
well as a leading non-life player through AG Insurance. In the UK, Ageas has a
strong presence as the fourth largest player in private car insurance and the over
50’s market. Ageas employs more than 13,000 people in the consolidated entities
and over 20,000 in the non-consolidated partnerships and has annual inflows of
more than EUR 21 billion.

Nature of Business
 Channel Agency
 Bankassurance
 Direct Marketing

Mission, Vision & Values

Vision
To be the leading provider of wealth management, protection and retirement
solutions that meets the needs of our customers and adds value to their lives.

Mission
 To continually strive to enhance customer experience through
innovative product offerings, dedicated relationship management and
superior service delivery while striving to interact with our customers
in the most convenient and cost effective manner.
 To be transparent in the way we deal with our customers and to act
with integrity.
 To invest in and build quality human capital in order to achieve our
mission.

Values

 Transparency:
Crystal clear communication to our partners and stakeholders.
  Value to Customers:
A product and service offering in which customers perceive value.

 Rock Solid and Delivery on Promise:

This translates into being financially strong, operationally robust and
having clarity in claims.

 Customer-friendly:
Advice and support in working with customers and partners.

 Profit to Stakeholders:
Balance the interests of customers, partners, employees, shareholders and
the community at large.

Products of IDBI Federal Life Insurance Co. Ltd.:

IDBI Federal provides many products which cater to the needs of the Indian
customers. IDBI Federal products:-

IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan 6 pay

 IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan 6 pay is a
savings tools that helps to achieve goals with its ‘systematic and steady’ approach
and assurance of guaranteed income. The plan requires to pay for the first 6 years
of the plan and then reap guaranteed returns in the last 6 years and it comes with a
life cover and critical illness feature for the entire policy term of 13 years.
Plan Overview
Particular Minimum Maximum

Age at entry(as on last 10 years* 50 years

birthday)

Age at maturity(as on last 23 years 63 years

birthday)

Premium Rs. Rs.

35,000 20,00,000

Premium payment term Fixed – 6 years

 Policy Term Fixed – 13 years

Premium Payment Mode Annual

*Policies on lives of minors can be taken only by parents / grand-parent/legal guardian

Main features:

 Enjoy Guaranteed Income:

You get Guaranteed Annual Payouts ranging from 126.66% to 143.23% of

your annual premium irrespective of market conditions.

 Limited premium payment term:

With Incomesurance you pay premiums only for the first 7 policy years and
enjoy Guaranteed Annual Payouts from the 8th to the 14th policy year.
  Protection of Critical Illness Benefit:

In an era of growing health concerns and uncertainties, this benefit offers

you a financial cushion against a pre-defined list of illnesses.

 Life Cover:

You get a life cover for the complete policy term of 14 years. In the
unfortunate case of an eventuality during this period, your family will get a
lump sum amount regardless of any guaranteed annual payouts or Critical
Illness Benefit received earlier.

 Tax Benefits:

You can avail tax deduction under Section 80C on the premiums you pay
towards your Incomesurance 7 pay plan. Also the benefits you receive under
this plan attract tax benefits under Section 10(10D) of the Income Tax Act,
1961.

 Flexibility to choose your premium amount:

You can decide your annual premium amount basis the Guaranteed Annual
Payouts desired, and the quantum of financial protection you want for your
family.
Wealthsurance:

Wealthsurance is a simple unit linked plan that helps you take your first step
towards wealth creation and that too, with ease. What’s more, the life cover with
this plan provides financial protection to your loved ones. 

Eligibility Minimum/
Criteria Maximum
Age at entry Minimum • 1 month (subject to minimum maturity
age)
Maximum • 64 years (subject to maximum maturity
age)
Maturity age Minimum • 18 years
 Maximum • 74 years
Policy term Fixed options • 10 years, 15 years and 20 years
Premium Fixed options • 10 years and in multiples of 5 thereafter
payment
term
Premium Minimum • Rs. 15,000 p.a.
Maximum • Rs. 25,000 p.a.
Premium Fixed • Annual
payment
mode
Sum assured Fixed 10 times the annual premium
(for ages below 45 years)
7 times the annual premium
(for ages above 45 years)
Main Features:

 Guaranteed loyalty additions to boost your wealth*

At the end of the 10th policy year and every 5 years thereafter, you get
guaranteed loyalty additions to boost your wealth.

 Financial protection against uncertainty

In case of an unfortunate death during the policy term, your nominee gets
the death benefit which is the sum assured or the fund value at that time,
whichever is higher. At any time during the policy term, the death benefit
will be more than 105% of all premiums paid.
 Partial withdrawals for emergency fund requirements

In case of a financial emergency, you can make partial withdrawals from

your funds any time after the 5th policy year. For more information on
partial withdrawals, please refer to the product brochure.

 Two tax benefits

The premiums you pay under Wealthsurance® Suvidha are eligible for tax
benefit under Sec 80C of the Income Tax Act, 1961. The maturity benefit
and death benefit are also tax free under Sec 10(10D).

 Flexibility to switch funds and investment options

You can switch your investment option between Systematic Allocator and
managing your funds by yourself. Also, if you are managing your funds
yourself, you can also switch from one fund to the other.

 Option to surrender

Wealthsurance® Suvidha also provides the feature of surrendering the

policy free of charge after the 5th policy year. A surrender amount equal to
the fund value as on date will be paid out. Discontinuance charge will be
applicable for policies surrendered within the first 5 years of the term.

 Exclusive funds for loved ones

By endorsing your Wealthsurance® Suvidha policy under the Married

Women’s Property Act, 1874, you can create an exclusive fund for your
loved ones which is legally protected from creditors and claimants.
 Size of the company

In terms of Manpower
 The Company has a strong and committed team of 1,941 employees as of
May 31, 2017 and over 10,000 agents who are working for the company.

In terms of Turnover
 The size of the company in terms of turnover is approximate 1000 crore.

 The achieved its break even in just 5 years and is making huge profits.
 Market Share & Position of the company
Market Share of all life insurance companies in India:

Market Position
Organization Structure
 Chapter 2
SWOT Analysis
 Chapter 3
Promotional Strategy of IDBI Federal

Promotional strategy of IDBI federal is mainly through word of mouth marketing

where the satisfied customers promote their known persons to purchase the policies
from IDBI federal.

Other includes:

Social Media: Facebook/Twitter/Others

Print Media: Pamphlets/Advertisements

Banners/Posters/Hoardings

Branded Promotional gifts: Bags/Tees

CRM Policies of IDBI Federal

IDBI customer relationship management is abroad approach for creating,
maintaining and expanding customer relationships. CRM is the business strategy
that aims to understand, anticipate, manage and personalize the needs of an
organization’s current and potential customers. At the heart of a perfect strategy is
the creation of mutual value for all parties involved in the business process. It is
about creating a sustainable competitive advantage by being the best at
understanding, communicating, and delivering and developing existing customer
relationships in addition to creating and keeping new customers. So the concept of
product life cycle is giving way to the concept of customer life cycle focusing
on the development of products and services that anticipate the future need of the
existing customers and creating additional services that extend existing customer
relationships beyond transaction.
 Market Mix of IDBI Federal

Product:

The products are as follows:

 Incomsurance 6 Pay
 Lifesurance savings insurance plan
 Wealthsurance growth insurance plan

Price:

 Lifesurance: starts from Rs. 25000 per year

 Incomesurance: starts from Rs. 35000 per
 Wealthsurance: starts from Rs. 25000 per year.

Place:

IDBI insurance products are sale through pan India provided customer fulfills all
conditions before buying the product.

Promotion:

IDBI federal products are generally promoted through internal marketing or word
of mouth marketing. Other promotional strategies include social media, print
media, banners and branded promotional gifts.

Segmentation of IDBI Federal

The customer segmentation of products of IDBI Federal is done in the following
ways:

Age: The premium rates of IDBI federal insurance product depends on the age and
gender of the person buying the insurance.

Risk Appetite: More risk prone customers generally tend to buy the Wealthsurance
product of IDBI which is based on equity. Risk averse and risk neutral customers
buy other products depending on their risk appetite and future goals.
Income: Customers with higher income invests more money for better returns
whereas customer in lower income group tends towards policies with lower
premiums.
Chapter 4
Balance Sheet of IDBI Federal
P&L Statement of IDBI Federal

Chapter 5
BCG Matrix
1. Stars- Stars represent business units having large market share in a fast
growing industry. They may generate cash but because of fast growing
market, stars require huge investments to maintain their lead. Net cash flow
is usually modest. SBU’s located in this cell are attractive as they are located
in a robust industry and these business units are highly competitive in the
industry. If successful, a star will become a cash cow when the industry
matures.
2. Cash Cows- Cash Cows represents business units having a large market
share in a mature, slow growing industry. Cash cows require little
investment and generate cash that can be utilized for investment in other
business units. These SBU’s are the corporation’s key source of cash, and
are specifically the core business. They are the base of an organization.
These businesses usually follow stability strategies. When cash cows loose
their appeal and move towards deterioration, then a retrenchment policy may
be pursued.
3. Question Marks- Question marks represent business units having low
relative market share and located in a high growth industry. They require
huge amount of cash to maintain or gain market share. They require
attention to determine if the venture can be viable. Question marks are
generally new goods and services which have a good commercial
prospective. There is no specific strategy which can be adopted. If the firm
thinks it has dominant market share, then it can adopt expansion strategy,
else retrenchment strategy can be adopted. Most businesses start as question
marks as the company tries to enter a high growth market in which there is
already a market-share. If ignored, then question marks may become dogs,
 while if huge investment is made, then they have potential of becoming
stars.
4. Dogs- Dogs represent businesses having weak market shares in low-growth
markets. They neither generate cash nor require huge amount of cash. Due to
low market share, these business units face cost disadvantages. Generally
retrenchment strategies are adopted because these firms can gain market
share only at the expense of competitor’s/rival firms. These business firms
have weak market share because of high costs, poor quality, ineffective
marketing, etc. Unless a dog has some other strategic aim, it should be
liquidated if there is fewer prospects for it to gain market share. Number of
dogs should be avoided and minimized in an organization.

Therefore, Wealthsurance product of IDBI federal can be termed as a star product.

Chapter 6
Identification of Factors Affecting Buying Behavior of
Customers

Objective:

To determine the factors that affects the customers to buy the insurance/investment
products from IDBI life insurance.

Methodology:

The study was exploratory in nature with survey method being used to complete
the study.

 Sampling Design Population: Population included potential investors in

Delhi and Nagpur region.
 Sample frame: Since the data was collected through personal contacts, the
sample frames were the individuals who are investing in life insurance
policies.
 Sampling elements: Individual respondents were the sampling elements.
 Sampling Techniques: Purposive sampling technique was used to select the
samples.
 Sample Size: Sample size was 15 respondents. Tools Used for Data
Collection Self designed questionnaire was used for the evaluation of factors
affecting consumer’s perception towards insurance. Data was collected on
Likert’s type scale, where 1 stood for minimum agreement and 7 stood for
maximum agreement.
 Questionnaire Design

Insurance Questionnaire

This is a questionnaire intended to determine the factors which lead to buying of

insurance products. Please answer all the questions by choosing amongst the
various alternatives.

Name:

Age:

Email Id:

Occupation:

Annual Salary:

1. Insurance investments are more lucrative with the brand image of the
organization.

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

2. My preference is to invest in reputed/branded insurance company only.

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

3. Investment in insurance sector is expected to give high returns.

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5
 4. If returns are low, there is no point of investing money in insurance
sector.

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

5. Death benefit is crucial while investing in insurance

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

6. Life cover is vital in an insurance policy

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

7. My decision to buy insurance is influenced by my spouse decision as

well.

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

8. It is necessary to have some type of insurance after marriage

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5
 9. TV Advertisements are influential in my knowledge of insurance
products

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

10. IDBI Federal Life Insurance Co advertisements are familiar to me.

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

11.Insurance agents have convinced me to buy products previously

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

12. Good sales pitch might influence me to invest in insurance sector.

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

13.Premium amount is important criteria while selecting insurance

product.

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

14.Insurance policies with lower premiums attract me for investment.

Strongly Mildly Neutral Mildly Agree Strongly

Disagree Disagree Agree
1 2 3 4 5

15.Being a parent I have to think about insuring my child

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

16.Child insurance is important for me

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

17. Tax savings is crucial for purchasing insurance

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

18.Celebrity endorsing insurance appears lucrative

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

19.Including a celebrity in their promotions would help IDBI Federal

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5

20.Insurance is a convenient way of avoiding taxes

Strongly Mildly Strongly

Disagree Disagree Neutral Mildly Agree Agree
1 2 3 4 5
Interpretation & Analysis:

15 customers responded to the survey and gave feedback of their buying tendency
of insurance policies from IDBI federal.

Company Loyalty:

This factor includes that this is the only company the consumer wants to associate
him with, in future, himself would purchase more policies from the same company,
and suggest friends and family to purchase policy from the same company,
company able to fulfill expectation, Policy benefits benchmarks. It is been
considered as the highly contributing factor towards study. Therefore it is clear that
company loyalty plays an important role in investment decisions of investors.

Service Quality:

This factor includes hassle free settlements, employees responsible towards

customers, agents respond promptly, investment in life insurance is more secure
than stock market satisfy with relationship to company.

Ease of Procedures:

This factor includes the company provides claims on time, cooperative and
friendly agent, settlement of claims easy and timely, agent is well informed about
policies.

Satisfaction Level:
This factor includes that the suggested benefits of Insurance Policy should be met
to the investors, Company provides them satisfactory services, fulfill its promise
about life insurance policy, Services should be provided on time, and awareness of
terms and conditions of policies.

Company Image:

This factor includes that the insurance company should be well known in the
industry, insurance provider should have goodwill in market, and company of high
repute.

Company-Client Relationship:

This factor includes that the agent remind about premium installments, pay
personal attention on every consumer and understand consumer’s financial needs.

Conclusion

In present Indian market, the investment habits of Indian consumers are changing
very frequently. The individuals have their own perception towards various types
of investment plans. The study of this research work was focused over consumer’s
perception on investment towards Life Insurance Services. The objectives of the
study were to evaluate the factors underlying consumer perception towards
investment in life insurance policies.

The consumer’s perception towards Life Insurance Policies is positive. It

developed a positive mind sets for their investment pattern, in insurance policies.
Still some actions are needed for developing insurance market. The major factors
playing the role in developing consumer’s perception towards Life Insurance
Policies are Consumer Loyalty, Service Quality, Ease of Procedures, Satisfaction
Level, Company Image, and Company-Client Relationship. Insurance industry has
to go ahead. A lot of opportunities are still waiting. This research will help in
developing the market share, loyalty and further development in insurance sector.