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Introduction Company Profile of o ICICI Prudential Life Insurance Product o SBI Life Insurance Product
• • • • •
Objective of Study Research Methodology Data Analysis Findings Recommendation & Suggestions Appendix
o Bibliography o Questionnaire
 [31-33] [34-38] [39-40] [41-42]
What is Life Insurance? Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises. In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme. To know more, read the Key Benefits of Life Insurance. Insurance is a RS. 400 billion business in India and yet its spread in the country is relatively thin insurance as a concept has not been able to make headway in India. Until recently L.I.C. enjoyed a monopoly in life insurance business. There are little option consumer to decide the insurer. A successful passage of I.R.D.A. bill had cleared the way of private sector operators in collaboration with their overseas partner. It is more professional and focused approach. Moreover the foreign players would bring sophisticated actuarial techniques with them, which would facilitate the insurer to effectively price the product. In this new millennium all these activities would play a before the
crucial role in over all development and maturity of insurance industry. Insurance business is growing in India. before the advent of the insurance Even development
regulatory authority and privatization on the insurance sector, insurance was a lucrative business in India as was elsewhere life was full of risk and here was somebody who was willing to cover some of it for nominal consideration. Business boomed, especially after nationalization on the insurance sectors in India after independence. roses way for this vital sectors. The insurance policy sales executives are really a welcome visitor to any household. Infect many people consider him as the hard bringer of impending death, a gentle reminder to ultimate reality waiting for each. One of us but ironically executives many working person would not, have head the dual pleasure of having his life covered and that the end of the cover period, getting back a tidy sum as saving tax exemption and of course peace of mind. SBI Life insurance & ICICI Prudential has now reached a stage where people have started looking down upon you if you are not adequately insured. But it is
ICICI Prudential Life Insurance Company
Overview ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and Prudential plc a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 37.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 1,000 offices, over 270,000 advisors; and 21 bancassurance partners. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India. The ICICI Prudential Edge The ICICI Prudential edge comes from our commitment to our customers, in all that we do - be it product
development, distribution, the sales process or servicing. Here's a peek into what makes us leaders. 1. Our products have been developed after a clear and thorough understanding of customers' needs. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the funds you might need to recover from a dreaded disease. 2. Having the right products is the first step, but it's equally important to ensure that our customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products . 3. Robust risk management and underwriting practices form the core of our business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process. 4. Entrusted with helping our customers meet their long-term goals, we adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term.
5. Last but definitely not the least, our 30,000 plus strong team is given the opportunity to learn and grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life. Vision & Values Our vision: To be the dominant Life, Health and Pensions player built on trust by world-class people and service. This we hope to achieve by:
Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly, efficiently and conveniently Developing and implementing superior risk
management and investment strategies to offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for our employees And above all, building transparency in all our dealings The success of the company will be founded in its
unflinching commitment to 5 core values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe what the company stands for, the qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth. Our values : Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundaryless, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success. Promoters ICICI Bank ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with over 50 years presence in financial services and with assets of over Rs. 3,767.00 billion (USD 96 bn.) as on December 31 , 2007. The Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, private equity and asset management. ICICI Bank is a leading player in the retail banking market and services its large customer base through a network of over 955 branches (including extension counters), 3687 ATMs, call centers and internet
banking (www.icicibank.com) to ensure that customers have access to its services at all times. Prudential Plc Established in London in 1848, Prudential plc, through its businesses in the UK, Europe, US, Asia and the Middle East, provides retail financial services products and services to more than 20 million customers, policyholder and unit holders and manages over £267 billion of funds worldwide (as of December 31, 2007). In Asia, Prudential is the leading European life insurance company with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest retail fund managers for Asian sourced assets ex-Japan. Its fund management business has expanded into ten markets, comprising of China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates. Products Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to create a customized solution for each policyholder. Savings & Wealth Creation Solutions
Save'n'Protect is a traditional endowment savings plan that offers life protection along with adequate returns. CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child's marriage, expenses for a child's higher education or purchase of an asset. It is available for terms of 15 and 20 years. LifeTime Gold & LifeTime Plus are unit-linked plans that offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 6 fund options Preserver, Protector, Balancer, Maximiser, Flexi Growth and Flexi Balanced.
LifeLink Super is a single premium unit linked insurance plan which combines life insurance cover with the opportunity to stay invested in the stock market. Premier Life Gold is a limited premium paying plan specially structured for long-term wealth creation. InvestShield Life New is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation. InvestShield Cashbak is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options.
LifeStage RP is a unique and powerful wealth creation insurance solution, which combines the benefits of automatic asset allocation and quarterly rebalancing along with increased protection.
LifeGuard is a protection plan, which offers life cover at low cost. It is available in 3 options - level term assurance, level term assurance with return of premium & single premium. HomeAssure assurance is a mortgage reducing to term help
customers cover their home loans in a simple and cost-effective manner. Education insurance plans
Education insurance under the SmartKid brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child's life. SmartKid plans are also available in unit-linked form - both single premium and regular premium.
ForeverLife is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually.
LifeTime Super Pension is a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price, joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5, 10 and 15 years & for life thereafter, joint life, last survivor annuity without return of purchase price) at the time of retirement. LifeLink Super Pension is a single premium unit linked pension plan. Immediate Annuity is a single premium annuity product that guarantees income for life at the time of retirement. It offers the benefit of 5 payout options. PremierLife Pension is a unique and convenient retirement solution with a limited premium paying term of three or five years, to suit professionals and businessmen, especially those who require more flexibility and customization while planning their finances.
Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus offers the
added advantage of an equivalent life insurance cover.
Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. Cancer Care Plus: is a wellness plan that includes all the benefits of Cancer Care and also provides an additional screenings. benefit of free periodical cancer
Diabetes Care: Diabetes Care is a unique critical illness product specially developed for individuals with Type 2 diabetes and pre-diabetes. It makes payments on diagnosis on any of 6 diabetes related critical illnesses, and also offers a coordinated care approach to managing the condition. Diabetes Care Plus also offers life cover. Diabetes Care Plus: is a unique insurance policy that provides an additional benefit of life cover for Type 2 diabetics and pre-diabetics Hospital Care: is a fixed benefit plan covering various stages of treatment - hospitalisation, ICU, procedures & recuperating allowance. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage upto 20 years. Crisis Cover : is a 360-degree product that will provide long-term coverage against 35 critical illnesses, total and permanent disability, and death.
Group Insurance Solutions
ICICI Prudential Life also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. Group Gratuity Plan: ICICI Prudential Life's group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. Group Superannuation Plan: ICICI Prudential Life offers both defined contribution (DC) and defined benefit (DB) superannuation schemes to optimise returns for the members of the trust and rationalise the cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. Group Immediate Annuities: In addition to the annuities offered to existing superannuation customers, we offer immediate annuities to superannuation funds not managed by us. Group Term Plan: ICICI Prudential Life's flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death. Flexible Rider Options
ICICI Prudential Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer.
1. Accident & disability benefit: If death occurs as
the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. If an accident results in total and permanent disability, 10% of rider sum assured will be paid each year, from the end of the 1st year after the disability date for the remainder of the base policy term or 10 years, whichever is lesser. If the death occurs while travelling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.
against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death.
3. Waiver of Premium: In case of total and permanent
disability due to an accident, the future premiums continue to be paid by the company till the time of maturity. This rider is available with SmartKid, LifeTime Plus, LifeTime Super and LifeTime Super Pension.
4. Income benefit rider: In case of death of the life
assured during the term of the policy, 10% of the
sum assured is paid annually to the nominee on each policy anniversary till the maturity of the rider. Plans Overview ICICI Prudential has a wide array of insurance plans that have been designed with the philosophy that different individuals are bound to have differing insurance needs. The ideal insurance plan is one that addresses the exact insurance needs of the individual that will depend on the age and life stage of the individual apart from a host of other factors. Life Insurance Plans On the basis of which life stage you are in and the corresponding insurance needs, ICICI Prudential plans can be categorized into the following three types:
• • • •
Education Insurance Plans Wealth Creation Plans Premium Guarantee plans Protection Plans
Key Benefits of Life Insurance
Life insurance, especially tailored to meet financial needs Need for Life Insurance
Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative 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. Let us look at these unique benefits of life insurance in detail. Asset Protection From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most 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. The core benefit of life insurance is that the financial interests of one’s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two
counts and life insurance occupies a unique space in the landscape of investment options available to a customer. Goal based savings Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Life insurance is the only investment option that offers specific products tailormade for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met. The table below gives a general guide to the plans that are appropriate for different life stages. Life Stage Young & Single Young married & Primary Need Asset creation Life Product Wealth Insurance creation
plans Just Asset creation & Wealth creation and protection mortgage protection
Children's Married with kids education, creation protection Planning retirement asset protection lifeHealth plans
plans Education Asset insurance, mortgage and protection & wealth creation plans for Retirement solutions && protection Health Insurance mortgage
grown up kids Across stages all
Types of Insurance Plans - Traditional or Unit Linked Insurance Plans - At a glance Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A brief detail of both segments: Unit Linked Insurance Product ULIPs have gained high acceptance due to attractive features they offer. These include: 1. Flexibility 1. Flexibility to choose Sum Assured. 2. Flexibility to choose premium amount. 3. Option to change to level of Premium /Sum by Assured even after the plan has started. 4. Flexibility change asset allocation switching between funds
2. Transparency 1. Charges in the plan & net amount invested are known to the customer 2. Convenience 3. Liquidity 1. Option to withdraw money after few years (comfort required in case of exigency) 2. Low minimum tenure. 3. Partial / Systematic withdrawal allowed 4. Fund Options 1. A choice of funds (ranging from equity, debt, cash or a combination) 2. Option to choose your fund mix based on desired asset allocation Traditional Plans These are the oldest types of plans available. These plans cater to customers with a low risk appetite. Some of the common features of traditional plans are: 1. Steady Investment 1. Major chunk of investible funds are in debt instruments 2. Steady and almost assured returns over the long term 2. Features 1. Death benefit is Sum Assured + guaranteed & vested bonus
performance on a daily basis.
2. Helps in asset creation as they are for a long tenure 3. Premium to Sum Assured ratios are fixed for each plan and age. 4. Generally withdrawals are not allowed before maturity
MARKETING STRATEGY OF ICICIPRUDENTIAL
MARKETING The key tasks in marketing team in ICICI-Prudential are : (a) (b) (c) (d) Educate the customers and reposition the products to counter the apathy for life insurance. To efficiently communicate the benefits of insurance to counter under-insurance. Identify the new products and extend reach to counter low absolute penetration. Position itself as the market leader to counter competition. The selling proposition for ICICI-Prudential will therefore be a sound product strategy. The product will have to be bundled after segmentation of the market and the customer. The two pronged strategy of innovating
specific products and educating the public at the same time will be the company’s road map to leadership.
ICICI-Prudential mandate is clear to sell and educate and the customer. To achieve this, the marketing team will need effective communication tolls at its command but it is the market research on customer-behavior that will give the company the cutting-edge in designing new products. The tools are marketing will be : Communication – To reposition insurance attractive educate the customer and trigger in them the latent need for protection. Direct Marketing – To promote relationship building through mails, call centers personal visit and internet. Public Relations-To build the ICICI-Prudent brand and to establish insurance as a customer’s right to protection. Distribution Model – ICICI-Prudential will adopt a multi-channel distribution model to popularize and market its proudcts. The channel will be : Tied agents Banc Assurance
PFS-AMC Salaried sales force E-commerce Apart from the tied agents who will be attached solely to ICICI-Prudential, a regular sale force employed by the company will market the products. The insurance product will also be bundled along with products of group companies like Personal Financial and Asset Management Company. Besides there will be the brokers working on commission basis. Banc assurance, through the Internet banking facility, will also play an important part in distributing the insurance products. Like every IT-enabled company, ICICI-Prudential will use their Internet to market the products. However initially, the Internet will not be major channel for sales. It will mainly serve as the medium for customer complaint and help in effective service.
The innovative strategy for sales and distribution will be unique selling proposition of ICICI-Prudential. The multichannel distribution to it’s over dependence on one kind of channel. The different channels will help building in huge database Vote for the company for future marketing efforts.
The company will make over 80 of its sales face to face for this purpose, ICICI-Prudential will mainly recruit the new agents. It has recruit few former agents of LIC mainly to draw from their experience the thrust will be on having more new agents. The team of highly sales personnel will tap newer market.
Company Profile of SBI Life
Our Mission:"To emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and become a model life insurance company in India in the post liberalisation period". Our Values:
• • • • •
Trustworthiness Ambition Innovation Dynamism Excelllence
SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of France. SBI Life Insurance is
registered with an authorized capital of Rs 1000 crore and a paid up capital of Rs 500 crores. SBI owns 74% of the total capital and Cardif the remaining 26%. State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has the unrivalled strength of over 14,500 branches across the country, arguably the largest in the world. Cardif is a wholly owned subsidiary of BNP Paribas, which is the Euro Zone’s leading Bank. BNP Paribas is one of the oldest foreign banks with a presence in India dating back to 1860. Cardif is ranked 2nd worldwide in creditor’s insurance offering protection to over 35 million policyholders and net income in excess of Euro 1 billion. Cardif has also been a pioneer in the art of selling insurance products through commercial banks in France and in 35 more countries. SBI Life Insurance’s mission is to emerge as the leading company offering a comprehensive range of Life Insurance and pension products at competitive prices, ensuring high standards of customer service and world class operating efficiency. SBI Life has a unique multi-distribution Agency and model Group
SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products along with its
numerous banking product packages such as housing loans and personal loans. SBI’s access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country ensuring true financial inclusion. Agency Channel, comprising of the most productive force of more than 25,000 Insurance Advisors, offers door to door insurance solutions to customers.
Customer Satisfaction - many of our customers who have bought an insurance policy with us have bought a second one! Financially sound with over a 100 years of Banking experience, when you trusted us with your money, why would you trust somebody else with your protection needs. Affordability Easy to buy (accessibility) Trust & reliability. With us you’re sure!
SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of France. SBI Life Insurance is registered with an authorized capital of Rs 1000 crore and a paid up capital of Rs 500 crores. SBI owns 74% of the total capital and Cardif the remaining 26%. State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has the unrivalled strength of over 14,500 branches across the country, arguably the largest in the world. Cardif is a wholly owned subsidiary of BNP Paribas, which is the Euro Zone’s leading Bank. BNP Paribas is one of the oldest foreign banks with a presence in India dating back to 1860. Cardif is ranked 2nd worldwide in creditor’s insurance offering protection to over 35 million policyholders and net income in excess of Euro 1 billion.
Every Indian, whether resident in India or an NRI, looks forward to the need to feel secure, to care for the loved ones and to provide for old age. The need is felt more when you’re away from your homeland. We, at SBI Life, understand this need. The feeling to do something for your loved ones. The urge to let them know that you care. Just why we’ve introduced the NRI Insurance Services. Now, you can wisely invest your hard earned money in India. This will ensure smooth and safe future for your family
At SBI Life, we endeavor to set a benchmark in the liberalized life insurance industry in India by ensuring high standards of customer satisfaction and world-class efficiency offering our customers a comprehensive range of life insurance and pension products at competitive prices. Our policies are formulated keeping in mind your needs at various stages of life; whether it is security for your family, higher education for your children, regular saving cum protection plan or life long pensions. This ensures smart investment of your hard earned money.
Unit Linked Products: Unit linked Plans are an attempt to meet all your financial & insurance needs through a single non participating product." What's more you get market linked returns which in the long term has always proved to give better returns than traditional savings products".
Horizon II Unit Plus II Unit Plus Child Plan
Unit Plus Elite
Pension Products: You need to have a comprehensive plan to meet your post retirement financial needs ensuring complete peace of mind. To make your post retirement years truly golden, we offer you –
Horizon II Pension Unit Plus II Pension
Pure Protection Products: There are times when everything seems to be perfect, but who can predict future and there is always a place to make this world a better place for our loved ones. To ensure that these uncertainties do not shatter the dreams you have for your family, SBI Life offers you –
Protection cum Savings Products: SBI Life offers a variety of plans that gives you the benefit of protection and the opportunity to save for various events like purchase of new house, wedding, car etc. We assist your savings.
Sudarshan Scholar II (Child Plan)
Money Back Scheme Products: As an individual your life is fueled by dreams. You experience different special moments in life like wedding, birth of a child, child’s education or purchasing a new home. You have to be financially prepared for these special moments. What you need is easy liquidity at regular intervals with life insurance protection to take care of these special moments.
Comparative Study of Insurance Companies
SBI Life Insurance ICICI Prudential Life Insurance
Product Recommendation : Customer Service: Claims Settlement: Rates/Premium: Range of Plans: Staff Attitude: 83% 47%
(Read 6 reviews) (Read 46 reviews)
All prices are indicative and subject to change. For updated prices,
OBJECTIVE OF THE STUDY The objectives of Private life insurance industry that emerged out of the discussion and speeches in the parliament in the time passage of the act were: 1. Spread of message of life insurance as far and wide as possible reaching out beyond the more advanced Urban areas well into hitherto neglected areas. 2. Effective mobilization of the people’s savings. 3. Complete security to policyholders. 4. Prompt and efficient services to the policyholders. Conducting of the business with the utmost economy and with the full realization that the money. Belonged to the policyholders.
RESEARCH METHODOLOGY Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by researcher in studying his research problem along with logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the methodology. Researchers also need to understand the assumptions underlying various techniques and they need to know the criteria by which the can decide that certain techniques and procedures will be applicable to certain problems and other will not. Research : Research is a scientific and systematic search for pertinent information on a specific topic. According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions;
deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research Design: A research design is purely and simply the framework or plan for study that guides the collection and analysis of data. Application and specification are the main characteristics in a research designs can be classified on the basis of the fundamental objectives of the research. There are mainly two types of research design. a. Exploratory b. Conclusive 1. Descriptive 2. Experimental Since our research is descriptive type, so research design is also descriptive. Sampling Design : Sampling is a process of obtaining information about an entire population by examining only a part of it. Sampling is used for a variety of reasons such as: i. ii. iii. Sampling can save time and money. Sampling Sampling may remains enable the more only accurate way when measurements. populations contain infinitely many members.
Sampling only remains the only choice when a test involves the destruction of the item under study.
Sampling methods can be divided into two. 1. Probability Sampling 2. Non-probability Sampling In my research probability sampling is used. Again in probability sampling, simple random sampling is used. This sampling is stratified system. Data Collection Method: Data collection methods are generally of two types: a. Primary Data b. Secondary Data Primary data are those which are collected a fresh and for the first time and thus happens to be original in character. The primary data is collected in the process of questionnaire and interview of the outlets. Secondary data are those which have already been collected by someone else and which have been already been passed through the statistical process. In my research the secondary data is collected from the company sales records and from research reports. Tools and Techniques: • Primary Data : Interview. • Secondary Data : research reports. Company sales record and other Questionnaire and Personal
Sampling Plan: Target Population Or Universe :All the resident of Agra city.
o Sampling Unit : Any Insurance policy of who works
with SBI Life and ICICI Prudential.
o Sampling Size :Around 100 people
o Sampling Method : Judgment and Convenience. o Sampling Area : Study Shall cover Agra City.
Data Analysis Table No. 1 No. of Respondents People Not Having People Having Person 72 28 Percentage 72% 28%
People Having Any insurance Policy
80 70 60 50 40 30 20 10 0 People Not Having People having
Table No. 2 Company LIC ICICI HDFC SBI Life Others No. of People 85 8 3 2 4 Percentage 85% 8% 3% 2% 4%
Policy in People Having different insurance comapanies
90 80 70 60 50 40 30 20 10 0 LIC ICICI HDFC SBI Life Others
Table No. 3 Sector Public Private No. of Respondents 90 10 Percentage 90% 10%
Sector which is better in Life Insurance
Table No. 4 Reasons Retirement Life risk Tax Saving Saving Others No. of Respondents 16 46 12 20 6 Percentage 16% 46% 12% 20% 6%
Reasons for Purchasing life Insurance Policy
Others 6% Retirement 16% Retirement Life Risk Tax Saving Tax Saving 12% Saving Life Risk 46% Others
Table No. 5 Company LIC ICICI HDFC SBI life Others No. of Respondents 90 3 1 1 5 Percentage 90% 3% 1% 1% 5%
100 90 80 70 60 50 40 30 20 10 0 LIC ICICI, 3 ICICI HDFC, 1 HDFC SBI Life, 1 SBI Life Others, 5 Others LIC, 90
The current scenario indicates a failure to create a market for insurance products where 33% of LIC policies were sold for tax benefits under Section 88 of IT Act, which is expected to reverse after the arrival of the private players. In the first year of operation, in Life, ICICI Prudential has emerged as the front-runner with the sales of 1,00,000 policies and premium collection of Rs. 112 crore from underwriting Rs. 2700 crore of business. SBI life
is in place with 43 crore premium income from risk products received on 64000 whole life policies. PUBLIC FRONT LIC in an effort to retain its competitive edge has revamped its service by networking all the branches and improving information available to policyholders through its website and tie-ups with the Internet companies. The marketing strategy by the LIC not being focused on Risk Products claims an advantage for the private players, in turn LIC has improved its Product Management by withdrawing many high guaranteed return products and re launching them at lower guaranteed returns in view of the falling rates of interests. PRIVATE FRONT: With the opening of the Insurance sector to private players, there are 12 new entrants in the Life sector and 6 in the Non life sector The Indian insurance sector presents opportunity for growth as penetration is very low and premiums as a percentage of GDP is only 2.61% compared to 15.78% for U.K. to 10.92% for Japan and 8.76 for US. The foreign player. with the domestic partner’s string brand value, can test the unconventional distribution partner’s like brokers, the internet, the banking distribution system, etc. domestic foreign players may be tempted to keep their operation in the big company creamy layer of the society.
In the life insurance sector, ICICI–Prudential has captured 38% of the private life insurance market, leaving the rest for the remaining 10 players. IRDA figures up to February 03 show that players like SBI Life insurance and Tata AIG Life Insurance are all vying for the top five positions. here are some of the interesting facts about the private players:
RECOMMENDATIONS & SUGGESTIONS
As far the products of both private sectors are concerned, no one is one the losing edge, yet they differ in their market share. The reason being the consume perception about the public and private sectors and the marketing strategies of the companies. Some suggestions and recommendations regarding he marketing strategies are as follows:
Greater market Penetration : As far as the private companies are concerned they should emphasize on the rural market as well, which bears more wealth than urban sector. LIC has deep roots in the rural India and therefore it has a large market share.
Greater mass Appeal : The companies should have greater mass appeal by effective advertising as done by ICICI Prulife & SBI Life, which has a greater impact on the mass.
Proper Market Segmentation : The opportunity to segment the market in terms of and Geography, needs is demographics, Psychographics
tremendous. The very nature of an insurance product encourages mass marketing rather focus which points to the need to define ones Long Term Product Market
competitive advantage. Emphasizing on risk factors : The marketing strategies of the new players in the Life sector is on offering products which have been properly marketed by LIC i.e., SBI Life's focus on Risk products, ICICI Prulife focus on pension and Term Insurance Products with 40% business from new products such as Unit Linked.
Customer Orientation : After the advent of the private players in the Indian market, LIC ahs improved a lot in terms of customer orientation several claims where are pending from a longer
period have been settled so far As pending records in the year 2005-2006 the no. of claims settles were 87,97 lakhs which amounted the sum of 14519.25 crores. giving the following slogan.
“LIC settles one Claim in less than one Second” strategies of the new players is to offer limited number of product customization value and reduces the Marketing costs and Risk of the players through diversified product portfolio.
• Marketing a limited no. of products The Product
• Insurance : Principles and Practice by M.N. Misra • Modern Applications of Life Insurance by H. C. Mehta and R. C. Chadha. • New Business Unit Handbook. • Manual For Accounts Department. • Manuals For Agents.
• • •
Special Issue on IRDA Act and Regulations, 2007 Insurance Watch, Nov. 2007, April 2008 Investment Monitor, September, 2006
• Business standard • Business Today • The Economics Times • Research Methodology by C.R. Kothari. • Marketing Management by Philip Kotler
Name Occupation 1. 2. a) Yes policy ? a) ICICI [ ] b) BAJAJ Allianz [ ]
: : [ ]
Age Income b) No.
: : [ ]
Do you have any Insurance policy ? If yes in which insurance company you have your
c) HDFC 3.
d) SBI Life
If no Why................................... Reasons for purchasing life Insurance Policy ? a) To cover life risk b) To save tax c) To invest saving d) To meet income need after retirement
e) Any other
[ [ [ [ [ [ [ [ [ [ [
] ] ] ] ] ] ] ] ] ] ]
What benefit you feel for purchasing insurance policy
a) Life risk cover
b) Medi claim facility provides. c) Family requirements fulfilled after death of earning hand. d) Loan Facility. e) Returns after the specific period aids to the income. f) All the above
Which according to you is better insurance company ? a) ICICI c) HDFC [ [ ] ] b) BAJAJ Allianz [ d) SBI Life ] [ ]
What are the reasons behind your choice of insurance company? a) Better Services b) Better Plans [ [ ] ]
c) Better Returns e) Better goodwill 7. 8. a) Public [ ] b) Private
[ [ [
] ] ] ]
d) Better Pension plan and other schemes [ Which sector you feel better for insurance sector?
Do you feel that government should take proper measures to increase the promotion of life insurance? a) Yes ] [ ] b) No [
In which insurance Company you would like to invest in near future ? a) ICICI c) HDFC [ [ ] ] b) BAJAJ Allianz [ d) SBI Life ] [ ]
What benefits you feel from taking a life insurance policy (20 words)? ..................................................................................... .........................................
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