Professional Documents
Culture Documents
ON
HDFC Standard Life Insurance Company Ltd
IN
SCHOOL OF MANAGEMENT
SRM UNIVERSITY
SRM NAGAR, KATTANKULATUR,
KANCHIPURAM DISTRICT-603203
MAY-2010
1
BONAFIDE CERTIFICATE
Certified that this project report titled ‘CUSTOMER-BUYING
BEHAVIOR IN LIFE INSURANCE INDUSTRY’ is the bonafide work
of Anand. N who carried out the research under my supervision. Certified
further, that to the best of my knowledge the work reported here in does not
form part of any other Project report or dissertation on the basis of which a
degree or award was conferred on an earlier occasion on this or any other
candidate.
…………………………. ………………………..
EXTERNAL EXAMINER
-----------------------------------
2
DECLARATION
Date:
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ACKNOWLEDGEMENT
Last but not the least, I thank my friends and well wisher for their good
cooperation while I am doing my project.
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CONTENTS
NO. NO.
I INTRODUCTION 05
3.2 METHODOLOGY 33
V 5.1 FINDINGS 67
5.2 SUGGESTIONS 68
VI CONCLUSION 70
BIBLIOGRAPHY 71
ANNEXURE 72
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LIST OF TABLES
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LIST OF FIGURES
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EXECUTIVE SUMMARY:
In today’s corporate and competitive world, I find that insurance sector has the
maximum growth and potential as compared to the other sectors. Insurance has the
maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of
growth rate. This growth potential attracts me to enter in this sector and HDFC Standard
Life Insurance Company Ltd has given me the opportunity to work and get experience
in highly competitive and enhancing sector.
The success story of good market share of different market organizations depends
upon the availability of the product and services near to the customer, which can be
distributed through a distribution channel. However understanding the market, consumer
preference and introducing new products to suit different tastes and at the same time
offering a value product would be the key steps to fight competition.
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CHAPTER -- I
INTRODUCTION
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1.1 INTRODUCTION TO THE STUDY
Customer is the king and it is the customer who decides what a business is and
therefore a sound marketing programme starts with a careful analysis of habits, attitudes,
motives and needs of the customers.
Definition of Buying Behavior:
Buying Behavior is the decision processes and acts of people involved in buying
and using products.
1. Need/Want/Desire is recognized:
In the first step the customer has determined that for some reason he/she is
not satisfied(i.e. customer’s perceived actual condition) and wants to improve
his/her situation. External factors can also trigger the customer’s needs. Marketers
are particularly good at this through advertising, in-store displays etc.
2. Search for information:
Assuming that customers are motivated to satisfy his/her need they will
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undertake a search for information on possible solutions. The sources may be
simple like the past experience or the customer may expend considerable effort to
locate information from outside sources(internet, etc.). How much effort the
customer directs towards searching depends on factors such as:
The importance of satisfying the need
Familiarity with available sources
The amount of time available for search.
3. Evaluate options:
Customers search efforts may result in set of options from which a choice
can be made. It should be noted that there may be two levels to this stage. At level
one the customer may create a set of possible solutions to their solution while at
level two the customer may be evaluating particular products within each
solution.
4. Purchase:
In many cases the solution chose by the customer is the same as the
product whose evaluation is highest. The intended purchase may be altered at the
time of purchase for many reasons such as the product is out of stock, a
competitor offering incentive at the time of purchase, the customer lacking in
necessary of funds.
5. After purchase evaluation:
Once the customer has made the purchase they are faced with the
evaluation of the decision. If the product performs below the customer’s
expectation then he/she will re-evaluate the satisfaction with the decision, which
at its extreme might result in the customer returning the product while in less
extreme situations the customer will retain the product but may take a negative
view of the product. Such evaluations might occur in expensive or highly
important purchases. Customer service centre and follow-up market research are
useful tools in helping to address the purchaser’s concern.
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1.2 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVES:
To determine reasons behind opting for an insurance.
SECONDARY OBJECTIVES:
To know whether the service offered by the company has satisfied the needs of all
groups of people.
To find out the benefits preferred by the customers.
To know about their views about the company and to assess to their views.
A big boom has been witnessed in Insurance Industry in recent times. A large
number of new players have entered the market and are trying to gain market share in this
rapidly improving market. The study deals with HDFC Standard Life in focus and the
various segments that it caters to. The study then goes on to evaluate and analyze the
findings so as to present a clear picture of trends in the Insurance sector.
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1.4. LIMITATIONS OF THE STUDY:
1) The research is confined to a certain parts of Coimbatore and does not necessarily
show a pattern applicable to all parts of the Country.
2) Some respondents were reluctant to divulge personal information, which can affect
the validity of all responses.
3) In a rapidly changing industry, analysis on one day or in one segment can change
very quickly. The environmental changes are vital to be considered in order to
assimilate the findings.
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CHAPTER--II
14
INDUSTRY PROFILE
LIFE INSURANCE
In 1818 the British established the first insurance company in India in Calcutta, the
Oriental Life Insurance Company. First attempts at regulation of the industry were made
with the introduction of the Indian Life Assurance Companies Act in 1912. A number of
amendments to this Act were made until the Insurance Act was drawn up in 1938.
Noteworthy features in the Act were the power given to the Government to collect
statistical information about the insured and the high level of protection the Act gave to
the public through regulation and control. When the Act was changed in 1950, this meant
far reaching changes in the industry. The extra requirements included a statutory
requirement of a certain level of equity capital, a ceiling on share holdings in such
companies to prevent dominant control (to protect the public from any adversarial
policies from one single party), stricter control on investments and, generally, much
tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance
companies. Business was heavily concentrated in urban areas and targeted the higher
echelons of society. “Unethical practices adopted by some of the players against the
interests of the consumers” then led the Indian government to nationalize the industry. In
September 1956, nationalization was completed, merging all these companies into the so-
called Life Insurance Corporation (LIC). It was felt that “nationalization has lent the
industry fairness, solidity, growth and reach.”
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Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: The market contained 154 Indian and 16 foreign life insurance companies.
GENERAL INSURANCE
The General Insurance industry in India dates back to the Industrial Revolution and the
subsequent increase in trade across the oceans in the 17th century. As for Life Insurance,
the British brought General Insurance to India, and a similar path was followed in the
development of this industry. A number of private companies were in existence for years
and years until, in 1971, the Indian Government decided that the public interest would be
served by nationalizing the industry, merging all the 107 companies into four companies,
depending on the sort of business transacted (Marine, Fire, Miscellaneous). These were
the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the New
India Assurance Company Ltd., and the United India Insurance Company Ltd. located in
Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance
Corporation (GIC) was set up in 1972 as a ‘holding’ company, having these four
companies as its subsidiaries.
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Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames
a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the
general insurance business in India with effect from 1st January 1973. 107 insurers
amalgamated and grouped into four companies viz. the National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company
Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
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MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA
Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread
the message of life insurance in the country and mobilise people’s savings for nation-
building activities. LIC with its central office in Mumbai and seven zonal offices at
Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100
divisional offices in important cities and 2,048 branch offices. LIC has 5.59 lakh active
agents spread over the country.
The Corporation also transacts business abroad and has offices in Fiji, Mauritius and
United Kingdom. LIC is associated with joint ventures abroad in the field of insurance,
namely, Ken-India Assurance Company Limited, Nairobi; United Oriental Assurance
Company Limited, Kuala Lumpur; and Life Insurance Corporation (International), E.C.
Bahrain. It has also entered into an agreement with the Sun Life (UK) for marketing unit
linked life insurance and pension policies in U.K.
In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while
GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's income
grew at a healthy average of 10 per cent as against the industry's 6.7 per cent growth in
the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the poverty
line, with 50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95
per cent and GIC's at 74 per cent are higher than that of global average of 40 per cent.
Compounded annual growth rate for Life insurance business has been 19.22 per cent per
annum.
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General Insurance Corporation of India (GIC)
The general insurance industry in India was nationalized and a government company
known as General Insurance Corporation of India (GIC) was formed by the Central
Government in November 1972. With effect from 1 January 1973 the erstwhile 107
Indian and foreign insurers which were operating in the country prior to nationalization,
were grouped into four operating companies, namely,
(However, with effect from Dec'2000, these subsidiaries have been de-linked from
the parent company and made as independent insurance companies). All the above
four subsidiaries of GIC operate all over the country competing with one another and
underwriting various classes of general insurance business except for aviation
insurance of national airlines and crop insurance which is handled by the GIC.
Besides the domestic market, the industry is presently operating in 17 countries directly
through branches or agencies and in 14 countries through subsidiary and associate
companies.
The introduction of private players in the industry has added to the colors in the dull
industry. The initiatives taken by the private players are very competitive and have given
immense competition to the on time monopoly of the market LIC. Since the advent of the
private players in the market the industry has seen new and innovative steps taken by the
players in this sector. The new players have improved the service quality of the
insurance. As a result LIC down the years have seen the declining phase in its career. The
market share was distributed among the private players. Though LIC still holds the 75%
of the insurance sector but the upcoming natures of these private players are enough to
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give more competition to LIC in the near future. LIC market share has decreased from
95% (2002-03) to 82 %( 2004-05).
HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life
insurance companies, which offers a range of individual and group insurance solutions. It
is a joint venture between Housing Development Finance Corporation Limited (HDFC
Ltd.), India’s leading housing finance institution and The Standard Life Assurance
Company, a leading provider of financial services from the United Kingdom. Their
cumulative premium income, including the first year premiums and renewal premiums is
Rs. 672.3 for the financial year, Apr-Nov 2005. They have managed to cover over
11,00,000 individuals out of which over 3,40,000 lives have been covered through our
group business tie-ups.
Max New York Life Insurance Company Limited is a joint venture that brings together
two large forces - Max India Limited, a multi-business corporate, together with New
York Life International, a global expert in life insurance. With their various Products and
Riders, there are more than 400 product combinations to choose from. They have a
national presence with a network of 57 offices in 37 cities across India.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA). The
company has a network of about 56,000 advisors; as well as 7banc assurance and 150
corporate agent tie-ups.
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4. Om Kotak Mahindra Life Insurance Co. Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc.
Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and
Sun Life financial Services of Canada.
The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram
Finance Limited started its operations from March 2001. The company is Head Quartered
at Chennai, and has two Regional Offices, one at Mumbai and another one at New Delhi.
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto
Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and
strength.
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Bajaj Allianz General Insurance received the Insurance Regulatory and Development
Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General
Insurance business (including Health Insurance business) in India. The Company has an
authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and Allianz, AG,
holds the remaining 26% Germany.
ICICI Lombard General Insurance Company Limited is a joint venture between ICICI
Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI
Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified
financial corporate engaged in general insurance, reinsurance, insurance claims
management and investment management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of
Canada's oldest property and casualty insurers. ICICI Lombard General Insurance
Company received regulatory approvals to commence general insurance business in
August 2001.
Chola-MS commenced operations in October 2002 and has issued more than 1.4 lakh
policies in its first calendar year of operations. The company has a pan-Indian presence
with offices in Chennai, Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai, Pune,
Indore, Ahmedabad, Delhi, Chandigarh, and Kolkata.
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10. TATA AIG General Insurance Company Ltd.
Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the
Tata Group and American International Group, Inc. (AIG). Tata AIG combines the
strength and integrity of the Tata Group with AIG's international expertise and financial
strength. The Tata Group holds 74 per cent stake in the two insurance ventures while AIG
holds the balance 26 per cent stake.
Tata AIG General Insurance Company, which started its operations in India on January
22, 2001, offers the complete range of insurance for automobile, home, personal accident,
travel, energy, marine, property and casualty, as well as several specialized financial
lines.
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MARKETING OF INSURANCE IN INDIA
Insurance is in a manner of speaking the last frontier in the financial sector to open. It is
also a sector, which leads to benefits across the full spectrum, from the individual who
now have wider choices, to the economy, which see increased savings, to the
infrastructure sector, which can look forward to long term funding being available. In an
under-insured economy, newer channels of distribution have to be utilized to intensify the
reach of insurance both in urban and rural markets. This will create huge employment
opportunities not only within insurance companies but also as agents and consultants of
insurance companies.
Different companies can choose to position themselves differently and hence the
Marketing Mix is different. However, there are certain common characteristics that one
can cull out from the possible strategies that companies adopt.
Product:
Place:
Different companies may however choose different channels and different geographies to
focus on. The channel options are - tied agency force, corporate agents and brokers and
this is an area where different companies will make different choices. Many companies
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like HDFC Standard Life are focusing on all channels whereas companies like Max New
York Life are focusing on the tied agency force only. Customer interface will be a key
challenge for life insurance companies and includes every that interaction that the
customer has with the company, such as sales, new business underwriting, policy
servicing, premium payments, claim processing and so on. Technology can play a crucial
role in delivering the highest standards of service set by the company and it will be
imperative for any serious player to excel in all of these.
Price:
Price is a relevant differentiator only in two segments - pure term insurance and in pure
annuities. Here too, service delivery and financial strength will need to be present at a
minimum acceptable level for price to be a relevant differentiator. In case of savings
oriented products, long-term returns generated are more relevant than just the price of the
product. A focus on generating good investment performance and keeping a tight control
on costs help in generating good long-term maturity value for customers. Norms have
been laid down on all of these by IRDA and adhering to these while delivering good
returns will be a challenge.
The level of demand is latent and will have to be activated considerably. The market
needs to be developed. Greater awareness of insurance and the need to have it as a
protection tool rather than as a tax planning measure needs to be appreciated by the
Indian people. Various communication tools including advertising, direct marketing and
road shows contribute to all this and different companies take different approaches on
these.
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INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY
The Insurance Regulatory and Development Authority (IRDA) is a national
agency of the Government of India, based in Hyderabad. In 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body
to regulate and develop the insurance industry. The IRDA was incorporated as a statutory
body in April, 2000.
The key objectives of the IRDA include promotion of competition so as to
enhance customersatisfaction through increased consumer choice and lower premiums,
while ensuring the financial security of the insurance market. The IRDA opened up the
market in August 2000 with the invitation for application for registrations. Foreign
companies were allowed ownership of up to 26%. The
Authority has the power to frame regulations under Section 114A of the Insurance Act,
1938 and has from 2000 onwards framed various regulations ranging from registration of
companies for carrying on insurance business to protection of policyholders’ interests.
Role of IRDA:
Protecting the interests of policyholders.
Establishing guidelines for the operations of insurers, and brokers.
Specifying the code of conduct, qualifications, and training for insurance
intermediaries and agents.
Promoting efficiency in the conduct of insurance business.
Regulating the investment of funds by insurance companies.
Specifying the percentage of business to be written by insurers in rural sectors.
Handling disputes between insurers and insurance intermediaries.
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COMPANY PROFILE
HDFC Standard Life Insurance Company Ltd. is one of India's leading private
Insurance companies, which offers a range of individual and group insurance
Solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), India's leading housing finance institution and a Group
Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38
Percent of equity in the joint venture.
HDFC Limited.
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Standard Life Group (Standard Life plc and its subsidiaries)
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KEY STRENGTHS
1) FINANCIAL EXPERTISE
As a joint venture of financial services groups, hdfc standard life has the
financial expertise required to manage your long-term investments safely and
efficiently.
2) RANGE OF SOLUTIONS
We have a range of individual and group solutions, which can be easily
customised to specific needs. Our group solutions have been designed to offer you
complete flexibility combined with a low charging structure.
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SWOT ANALYSIS OF HDFC-SLIC
STRENGHTS:
WEAKNESS:
30
OPPORTUNITIES:
1.) Insurable population: According to IRDA only 10% of people are insured.
This suggests that more than 300m people, with the potential to buy insurance,
remain uninsured.
2.) There will be inflow of managerial and financial expertise from the world’s
leading insurance markets. Further the burden of educating consumers will
also be shared among many players.
3.) International companies will help in building world class expertise in local
market by introducing the best global practices.
THREATS:
1.) Other private insurance companies also vying for the same uninsured
population.
2.) Competition from public sector insurance companies like LIC, National
Insurance Company Limited, Oriental Insurance Limited, New India
Assurance Company Limited and United India Insurance Company Limited.
People trust and go to them more.
3.) Poaching of customer base by other companies.
4.) Most people don’t understand the need or are not willing to take insurance
policies in general.
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CORPORATE OBJECTIVES
Our Vision
'The most successful and admired life insurance company, which means that we
are the most trusted company, the easiest to deal with, offer the best value for
money, and set the standards in the industry'. 'The most obvious choice for all'.
Our Values
Values that we observe while we work
Integrity
Innovation
Customer centric
People Care One for all and all for ones
Teamwork
Joy and Simplicity
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PRODUCT PROFILE:
Individual product:
We at HDFC Standard Life realize that not everyone has the same kind of needs.
Keeping this in mind, we have a varied range of Products that you can choose from to
suit all your needs. These will help secure your future as well as the future of your
family.
Protection Plans
You can protect your family against the loss of your income or the burden of a
loan in the event of your unfortunate demise, disability or sickness. These plans offer
valuable peace of mind at a small price.
Term Assurance Plan
Loan Cover Term
Assurance Plan
Investment Plans
Our investment products are well suited to meet your long-term needs.
Single Premium Whole Life Plan
Pension Plans
Our Pension Plans help you secure your financial independence even after
retirement.
Personal Pension Plan
Unit Linked Pension Plan
Unit Linked Pension Plus
Our Immediate Annuity plan will aid you in receiving income post retirement and
securing you financial independence.
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Savings Plans
Our Savings Plans offer you flexible options to build savings for your future
needs such as buying a dream home or fulfilling your children’s immediate and future
needs. Our Savings range includes
Endowment Assurance Plan
Unit Linked Endowment
Unit Linked Endowment Plus
Money Back Plan
Children's Plan
Unit Linked Young star
Unit Linked Young star Plus
Health Plans
Our health plans provides you with timely support in case of any health related
emergencies and helps you and your family to remain financially independent in difficult
times
Critical care plan
Surqi care plan
Group Products:
One-stop shop for employee-benefit solutions
HDFC Standard Life has the most comprehensive list of products for progressive
employers who wish to provide the best and most innovative employee benefit solutions
to their employees. We offer different products for different needs of employers ranging
from term insurance plans for pure protection to voluntary plans such as superannuation
and leave encashment.
We now offer the following group products to our esteemed corporate clients
Group Term Insurance
Group Variable Term Insurance
Group Unit-Linked Plan
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Social Product
Development Insurance plan is an insurance plan which provides life cover to
members of a Development Agency for a term of one year. On the death of any member
of the group insured during the year of cover, a lump sum is paid to that member’s
beneficiaries to help meet some of the immediate financial needs following their loss.
Other product:
Rural products
Tax benefits
The Value Added Services Offered By The HDFC std. life insurance:
Electronic clearing system:
It is a system where your premium gets directly debited from your bank account
on your due dates. This helps the customer to pay the insurance premium with out to the
insurance company.
Financial advisors:
Advisors are the back is not just selling of the policies but listen to the customer
like what they need, how much they can invest, which policy suits them the and what
kind of policy expect from us i.e. what kind of policies should be designed for them.
Ease in renewal of the lapsed policy:
Policy holder can easily renew their policy without much more difficulties for
these customers can seed the help of financial consultant.
Other service:
Customized products
All the information about the companies and its products are available in
company’s web site.
In case a customer wants to pay their premiums through cheque then they can
draw them in favors of the insurance company in which he has the policy.
Market information: customers can check their policy status through online.
Clime settlement: clime settlement in private life insurance company is faster than
the other insurance company.
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CHAPTER—III
RESEARCH METHODOLOGY
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3.1. RESEARCH DESIGN OF THE STUDY:
Marketing research can be defined as the systematic design, collection, analysis,
and reporting of the data and finding relevant to a specific marketing situation facing the
company.
Research design is the basic plan which guides the researchers in the collection
and analysis of data required for practicing the research product. In fact the research
design is the conceptual structure with which research is conducted. It consist the blue
print for the collection, measurement and analysis of the data that was followed
completing the study to ensure that study is relevant to the problem and will follow the
predetermined and set data.
The main data feature of “Research Design” is that it specifies population to be
studied. The main them of the chapter is to know the source of the data the researcher has
collected. Data are raw facts of observation, typically about physical phenomenon.
Descriptive research :
The research design selected for this research is descriptive research design.
3.2. METHODOLOGY:
Collection of the data for the study can be drawn from following methods for
study.
Sources of the data:
After determining the objectives of study and research design, the next important
step is data is step collection method. The information has to be collected from the
retailers. During the process of the study the data is collected from the target segment that
is customers, dealers and distributors with help of a structured well designed
questionnaire.
37
Primary data
It was collected through questionnaire prepared contains relevant questions that
are both close ended and opened. Individual and group interviews also under taken with
difference consumers,
I have collected mainly the Primary Data for my study by utilizing the questionnaire and
interview methods.
Secondary data
These data are collected from published sources such as Magazines, NEWS
papers, several books, and also from the help of web site www.hdfcsl.com.
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CHAPTER—IV
39
TABLE 4.1: AGE GROUP OF RESPONDENTS
Below 25 31 31%
25 to 35 39 39%
35 to 45 25 25%
45 and above 5 5%
40
FIG-4.1: AGE GROUP OF RESPONDENTS
45
40
35
30
25 No. of respondents
20
15
10
0
below 25 25 to 35 35 to 45 45 and above
INTERPRETATION:
The above figure reveals that most of the people 32% are working in government and
29%are Business sector
41
Table 4.2: OCCUPATION OF THE RESPONDENTS
Govt. 32 32%
IT 16 16%
Education 6 6%
Finance 13 13%
Business 29 29%
Other 4 4%
42
FIG - 4.2: OCCUPATION OF THE RESPONDENTS
35
30
25
20
no. of respondents
15
10
0
Govt IT EducationFinanceBusiness Other
INTERPRETATION:
The above figure reveals that most of the people 32% are working in government and
29%are Business sector
43
Table 4.3: RESPONDENTS AWARENESS OF
INVESTMENT OPTION
Yes 33 33%
No 14 14%
44
FIG - 4.3: RESPONDENTS AWARENESS OF
INVESTMENT OPTION
60
50
40
30
No.of Respondants
20
10
0
Yes No Have some Knowledge
INTERPRETATION:
This graph shows that only 33% of people are aware of the investment option and 53% of
people have some knowledge about it. But 14% of people are not aware of the investment
option available to them
45
Table 4.4: RESPONDENTS HAVING AN INSURANCE
POLICY
Yes 53 53%
No 47 47%
46
FIG - 4.4: RESPONDENTS HAVING AN INSURANCE
POLICY
54
53
52
51
50
49
no. of respondents
48
47
46
45
44
Yes No
INTERPRETATION:
This graph shows that 47% of people not having an insurance policy and 53% of people
having an insurance policy.
47
Table 4.5: RESPONDENT INTEREST OF INVESTING
OPTIONS
Retirement 28 28%
Earnings 33 33%
Liquidity 18 18%
48
FIG - 4.5: RESPONDENT INTEREST OF INVESTING
OPTIONS
35
30
25
20
No.of respondentas
15
10
0
Retirement Tax Saving Earnings Liquidity
INTERPRETATION:
The figure shows 33% of people have insurance for future earnings and 28% are
investing for Retirement.
49
Table 4.6: TERM OF INVESTMENT PREFERRED
50
FIG - 4.6: TERM OF INVESTMENT PREFERRED
50
45
40
35
30
25
No. of respondants
20
15
10
INTERPRETATION:
The above figure shows 46% of respondents prefer long term investment where as 32%
prefer medium term and only 22% prefer short term.
51
Table 4.7: PERCEPTION ABOUT INSURANCE
NO. OF
RESPONSE SHARE (%)
RESPONDENTS
52
FIG - 4.7: PERCEPTION ABOUT INSURANCE
INTERPRETATION
The above figure shows that 32% of the respondents have perception of Insurance being a
saving tool and 29% of the respondents have perception of Insurance being a tax saving
device.But 39% of the respondents are with the view that Insurance is a tool to protect
your family.
53
Table 4.8: KIND OF BUYING PROCESS PREFERRED
NO. OF
BUYING PROCESS SHARE (%)
RESPONDENTS
Customer approached
44 44%
Insurance company/Agent
Company/agent approached
56 56%
customer
54
FIG - 4.8: KIND OF BUYING PROCESS PREFERRED
INTERPRETATION
55
Table 4.9: WHAT PEOPLE LOOK FOR IN INSURANCE
COMPANY?
NO. OF
RESPONSE SHARE (%)
RESPONDENTS
Accessibility 17 17%
56
FIG - 4.9: WHAT PEOPLE LOOK FOR IN INSURANCE
COMPANY?
INTERPRETATION
Friendly service & responsiveness and Accessibility are also important factors
looked by customers in a company.
57
Table 4.10: FEATURES MADE YOU TO INVEST IN
HDFC STANDARD LIFE INSURANCE
Low Premium 30 30
Company’s Reputation 11 11
58
FIG - 4.10: FEATURES MADE YOU TO INVEST IN
HDFC STANDARD LIFE INSURANCE
INTERPRETATION:
Majority of the respondent (37%) found Larger risk coverance as the most
attracted feature of the all.
59
Table 4.11: RESPONDENT PERCEPTION TOWARDS THE
HDFC STANDARD LIFE INSURANCE COMPANY
Average 29 29%
Aggressive 21 21%
Excellent 14 14%
Professional 36 36%
60
FIG - 4.11: RESPONDENT PERCEPTION TOWARDS THE
HDFC STANDARD LIFE INSURANCE COMPANY
40
35
30
25
20
No of respondents
15
10
0
Average Aggressive Excellent professional
INTERPRETATION:
The above graph shows that 36% of Respondents believes the operations of the company
to be professional and 29% believe it is Average.
61
Table 4.12: SATISFACTION OF THE RESPONDENTS
WITH RESPECT TO POLICIES OFFERED.
NO. OF
RESPONSE SHARE (%)
RESPONDENTS
Satisfied 60 60%
Not Responded 0 0%
62
FIG - 4.12: SATISFACTION OF THE RESPONDENTS
WITH RESPECT TO POLICIES OFFERED.
INTERPRETATION
60% of the respondents are more or less satisfied with their existing policy.
40% of the respondents are not satisfied with their existing policy.
In this case all of those who have taken a policy have responded.
63
Table 4.13 - RESPONDENTS PREFERENCE FOR
CLARIFYING ANY QUERY
Advisor 39 39%
64
FIG - 4.13: RESPONDENTS PREFERENCE FOR
CLARIFYING ANY QUERY
45
40
35
30
25
No. of respondents
20
15
10
0
Advisor company websitecustomer carebranch manager
INTERPRETATION:
The above graph shows that 39% people believes in Advisor, 28% of people believes
Customer care while company website and branch Manager People clarify any query first
respectively 16% and 17%
65
Table 4.14: BENEFITS OF INSURANCE PERCIEVED BY
RESPONDENTS
NO.OF
BENEFITS SHARE (%)
RESPONDENTS
Cover Future
55 55
Uncertainty
Tax Deductions 20 20
Future Investment 25 25
66
FIG - 4.14: BENEFITS OF INSURANCE PERCIEVED BY
RESPONDENTS
INTERPRETATION
55% of the respondents believe that covering future uncertainty is the biggest
benefit of an insurance policy.
Whereas, 20% and 25% of them believe that the other benefits are Tax deduction
and future investments respectively
67
Table 4.15: SATISFACTION OF CURRENT POLICY
Yes 82 82%
No 18 18%
68
FIG - 4.15: SATISFACTION OF CURRENT POLICY
90 82
80
70
60
50
40
30
20
10
No. of respondents
0 18
YesNo
INTERPRETATION:
The above figure shows that 82% of respondents are satisfied with their current policy
and only 18% of people are not happy with their policy.
69
CHAPTER –V
70
5.1 FINDINGS:
It reveals that 39% of respondents belong to 25 to 35 age group and 31% are
belong to below 25 ages. ( Ref: Table 4.1)
The survey shows that maximum 32% of the respondents are in working govt.
sector. ( Ref: Table 4.2)
Out of 100respondents 33% of the respondents were well known about HDFCSL
investment option. ( Ref: Table 4.3)
53% of the people having a insurance policy. ( Ref: Table 4.4)
33% of respondents are indented to invest on their earning only. ( Ref: Table 4.5)
46% of respondents are preferred long term investment term in HDFC-SLIC.
( Ref: Table 4.6)
56% of the respondents prefer the buying process of the company/agent
approaching the customer while 44% prefer vice-versa. ( Ref: Table 4.8)
36% of the respondents perception about HDFC-SLIC is professional, and 21%
has told that it is being aggressive and 14% are Excellent. ( Ref: Table 4.11)
60% of the respondents are satisfied with the policies offered in HDFC-SLIC.
( Ref: Table 4.12)
39% of the respondents using Advisor service which the service offered by the
HDFC-SLIC. ( Ref: Table 4.13)
55% of the respondents perceive the benefits of insurance as a cover for future
uncertainity. ( Ref: Table 4.14)
82% of respondents are satisfied with current policy offered by HDFC-SLIC.
( Ref: Table 4.15)
71
5.2 SUGGESTIONS:
In Coimbatore most of the people are working in Government and Business sector
and they don’t have much financial planning. Another important point is they have good
compensation package. So the company should bring more innovative and should carry
out more promotional activities in government fields. Better promotion of unit linked
plans can generate more sales to the company.
72
CHAPTER – VI
CONCLUSION
73
CONCLUSION:
People are beginning to look beyond LIC for their insurance needs and are
willing to trust private players with their hard earned money. People in general
have been impressed by the marketing and advertising campaigns of insurance
companies. A high penetration of print, radio and Television ad campaigns over
the years is beginning to have its impact now. Another heartening trend was in
terms of people viewing insurance as a tax saving and investment instrument as
much as a protective one. A very high number of respondents have opted for
insurance for such purposes and it shows how insurance companies have been
successful to attract public money in recent times.
The general satisfaction levels among public with regards to policy and
agents still requires improvement. But therein lies the opportunity for a relative
new comer like HDFC Standard Life Insurance Company Ltd. LIC has never
been known for prompt service or customer oriented methods and HDFC
Standard Life can build on these factors.
74
BIBLIOGRAPHY
WEBSITES REFFERED:
www.irda.com
www.hdfcinsurance.com
www.insurance.ind.com
www.moneyoutlook.com
IRDA Journal.
75
ANNEXURE
QUESTIONNARE:
76
(7) Why do you want to invest in to insurance?
[ ] Retirement [ ] Tax saving
[ ] Earnings [ ] Liquidity
(8) Which term of investment preferred?
[ ] Short term [ ] Medium term [ ] Long term
(9) What is your perception about insurance?
[ ] A saving tool [ ] A tax saving device
[ ] A tool to protect your family
(10) What kind of buying process do you prefer?
77
(14) Are you satisfied with the policies of the insurance provider?
[ ] Not Responded
(15) If you want to clarify any query to whom you consult first?
[ ] advisor [ ] company website
[ ] customer care [ ] branch manager
(16)How do you perceive the benefits of insurance provided?
[ ] Cover Future Uncertainty [ ] Tax Deductions
[ ] Future Investment
(17) Are you satisfied with your current policy?
[ ] Yes [ ] No
Any more information you would like to share regarding your perception
about HDFC-SLIC.
THANK YOU
78