ANALYSING THE COMPETITIVE MARKET OF LIFE MAKER PREMIUM INVESTMENT PLAN

OBJECTIVES
Rationale for the study:  Existence of huge population that is yet to be insured suggests an immense opportunity to generate awareness about the criticality of life insurance in a persons life.  There exists a wide market to be tapped by the increasing number of life insurance companies despite their competitive offerings.  To identify strengths, weaknesses and gaps to be filled in on various parameters of this policy.

Parameters for comparison of Fund:

Charges on the policy Additional benefits and flexibilities with the policy Compounded Annual Growth Rate of NAV of various funds. Portfolio composition of various funds Broker Survey

PERFORMANCE VS BENCHMARK RETURNS

(LAST YEAR RETURN)
Period: April 07 - April 08

RESULT AND ANALYSIS

 Investment Objective :
Investment Objective

Combination of All

15

Finance Education or Wedding

30

Large Sum of Gains

30

Regular income

25

 Trustworthy private life insurance company:

Most Trustworthy company

Max Newyork Life SBI Life Bharti AXA Birla Sun Life Bajaj Allianz ICICI Prudential: 0 5 10 15 20 25 30 35

Policy sellers area of focus :

Policy seller's area of focus
Both

Good Service

Good Product

10

15

Premium Payment Mode:

Prefe rre d premium payment mode
Monthly

Yearly

20

40

60

80

 Most selling ULIP product:

Most Selling ULIP
Aviva - Save Guard

MNYL - Life Maker

Bharti - Wealth Confi

HDFC - UL Endowmnet

SBI - Horizon II

Kotak - SIP II

LIC - Money Plus

ICICI Pru - LT Super

Bajaj - New Unit Gain

5 10 15 20 25 30

Company offering relatively transparent charge structure:

Companies having relatively more transparent charges

HDFC MNYL Birla Sun Life Bajaj Allianz ICICI Prudential 0 5 10 15 20 25

 Customers profile to which maximum number are sold:

Customer's Profile

Customer's Profile

Age group:25-40 years

Good income status

Educated people

 Premium Payment Option:

Premium Payment Option

Single 20%

Regular 80%

 Ratio preferred for investing

Young, Unmarried Professionals
25%

In Aggressive Equity funds

50%

In High Yield Bonds and Growth and Income funds In Conservative money funds

25%

Recently Retired couple

In conservative Equity funds

35% 40%

In moderately Aggressive funds In Money Markets

25%

CONCLUSION
 Strengths: MNYL has one of the well managed funds in the life insurance industry. The risk oriented growth fund also maintains positive returns even when the market has a downward trend. The portfolio of MNYL is very well diversified across all the sectors. MNYL is a transparent company thus people has trust in this company Weaknesses: Policies of MNYL have no unique differentiating feature. Being a transparent company MNYL is considered to be highly charging company by people.

RECOMMENDATIONS
 Insurance Broker Survey:Based upon the findings of the survey: - MNYL should stress upon strengthening the brand name of the company, highlighting the strong foundation of New York Life Insurance Company and Max India.  Life Maker Premium Investment Plan Study: - In a highly competitive industry, new concept emulation will be quick; therefore MNYL should strive to be first mover among emulators. - Reclassification of funds offered as PURE funds and DIVERSIFIED funds; so as to tap the segment for ULIPs in tier II cities where awareness and trust on market is low.  Online accessibility: - Focus upon quick accessibility on common internet search engines such as Google and Altavista.