68644093 Hdfc Life Insurance 2011

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MINOR PROJECT

ON

HDFC Standard Life Insurance Company Ltd

CUSTOMER-BUYING BEHAVIOR

Submitted In Partial Fulfillment of the Requirement

Of Bachelor of Business Administration

SUBMITTED TO: SUBMITTED BY:

MISS.MANISHA SETHI RADHIKA MEHRA

Project guide (internal)

01012401709

Delhi institute of rural development, Nangli Poona)

(Affiliated to Guru Gobind Singh Indraprastha University)

DECLARATION

I hereby declare that this Project Report titled HDFC STANDARD LIFE

INSURANCE CUSTOMER BUYING BEHAVIOR submitted by me to DelhiInstitute Of Rural Development, NANGLI POONA is a Bonafide work undertaken

during the period from 24th may 2010 to 31st July 2010 by me and has not been submitted

to any other University or Institution for the award of any degree diploma / certificate or


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published any time before.

Date: / / 2010

Radhika Mehra

01012401709

(2009-2011)

Signature of the Student

BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitled HDFC STANDARDLIFE INSURANCE CUSTOMER BUYING BEHAVIOR is the Bonafide research

work carried out by Radhika Mehra,student of BBA, DIRD, NANGLI POONA, New

Delhi during May-July 2010, in partial fulfillment of the requirements for the MinorProject of the Degree of Bachelor of Business Administration.

She has worked under my guidance.

Counter signed by

-------------


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Dr. A.K CHOUDHARY

Director

Date:

MISS.MANISHA SETHI

Project Guide (Internal)

Date:


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ACKNOWLEDGEMENT

First of all I will thank to our director sir Dr. A.KCHOUDHARY, who give me the

valuable suggestion for my minor project.

The success of this final report is the outcome of Guidance and Valuable suggestions

provided by the all concerned without which the report could not fide on the right back.

I express my sense of deep gratitude to Faculty CoordinatorMISS.MANISHA SETHI

for inclusions and timely suggestions in the preparation of this final report.

Finally ,I will be failing in my duty, if I do not thank my parents, brother, friends andwell wishers for their enthusiastic support and who have directly or indirectly helped in

some way or the other in making this final report a success.

Name: Radhika Mehra


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BBA

01012401709

EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that insurance sector has the maximum

growth and potential as compared to the other sectors. Insurance has the maximumgrowth 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

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. In Insurance sector, distribution channel includes only

agents or agency holders of the company. If a company like RELIANCELIFE INSURANCE, TATA AIG, MAX etc have adequate agents in the market they can

capture big market as compared to the other companies.

The company should also provide the promised benefits to the customers to spread the

positive word of mouth. This mode is very effective in building a popular and trusted

brand in the market.


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CHAPTER 1


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INTRODUCTION

History of insurance

In 1818 the British established the first insurance company in India in Calcutta, theOriental 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, thismeant 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, muchtighter 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 theinterests 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 industr y fairness, solidity, growth and


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reach.

Defination ofInsurance

insurance is a contract between two parties where by one party is called insurerundertakes in exchange for a fixed sum called premium , to pay other party happening of

certain event.

TYPES OF INSURANCE

Insurance can be termed as a form of risk management which is mainly used to protect an

individual against the risk of prospective financial loss, if any. Insurance can be used as atool to shield an individual against potential risks like travel accidents, death,

unemployment, theft, property destruction by natural calamities, fire mishaps etc.

Different types of insurance is used to cover different properties and assets such as

vehicles, home, health care etc. Basically, an insurance policy can also be known as a

protection net which secures you from any financial losses in future.

All you have to do is pay the insurance agencies a specified amount every month, knownas premium, so that they can take care of you by providing you financial back up in case

of a sudden health emergency or a fatal incident.

Ther are two ways for getting an insurance done.

One way is to visit an agent and consult him for the best option you can avail for yoursituation. And then, trust him/her for their suggestion on the type of insurance they feel is

right.

The other way is to research and choose on your own, the type of insurance which will be


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best suited for your situation. You should research the market as well as the net, to look

for the best insurance companies, and further more, the most suitable type of insurance

thattheyoffer.Also explore the various types of policies which are available to you in the market, and

then compare to decide which one to choose finally.

HealthCareInsurance

With such high medical and health care costs these days, its hard to even think about

visiting a doctor. But what about an unexpected mishap or an unforeseen disability or

attack, where the potential medical bills could shoot up to a sky? Where would you get so

much money from?

These are exactly the situations where you feel you had a security, something which

could come to your rescue and save you from such financial crisis. While some

companies do provide its employees with health insurance, for others, this is a must.Especially for the aging couples, who have a comparatively more chances of needing

emergency bill money. The health insurance does it all, so that they do not have to worryfor the huge payments at the last minute.

A health insurance can cover all from a routine immunization to a major illness.

LifeInsurance

Loss of a family member is a catastrophe which glooms a familys life. But even more

tragic is the death of a sole bread earner for the family, who then has to go through thepain of losing their loved one, as well as the financial loss putting their survival in

jeopardy.

This financial hardship due to a sudden death of a family member or a disability resulting

to a loss of job or inability to work can be avoided to a great extent by taking up a life

insurance policy.A Life insurance or disability insurance covers such losses and pays a family,

compensation to restore the earnings lost by them due to a sudden death or disability.

The monthly premiums for a life insurance are generally based upon the age, health, andoccupation information of the applicant, in addition to the total benefits to be paid to him

for his policy.

HomeInsurance

Real estate property and hard assets are subject to accidental risks like theft, destructiondue to natural disasters or fire accidents etc. with such huge investments gone into buying

a real estate property like your home or office, the risk involved is a loss of large amount

of money.


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Home and property insurance helps you in managing and protecting against these risks.

The cost of a real estate property and its insurance is mostly based upon the worth of the

already insured hard assets and also the location in which the assets are situated.

TravelInsurance

This is intended to cover any of the financial or any other losses which were incurred by

the insured while traveling, be it nationally or internationally, such as mountain trekkers,

cruisetc.

Autoinsurance

Any vehicle on road, no matter how safe its driver is, is bound to meet with an accidentor two, which may leave it with just a few scratches, or crash it up totally. Most countries

today require you to have an auto insurance while on road in your vehicles.

If you have an accidental car crash, a total repair could cost you a fortune. On the otherhand, a little scratch on your Land Cruiser might also soar up your bills to a high.

Whether or not you need an auto insurance mostly depends on the type of car you own.

If you have an expensive car and a little repair could wipe you out financially, you should

very well go in for a buying an all-inclusive and crash insurance which could protect you

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 regulatethe 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


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MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 tospread the message of life insurance in the countr y and mobilise peoples

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.

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.

HDFC Standard Life Insurance Company Ltd


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HDFC Standard Life Insurance Company Ltd. is one of Indias 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.), Indias leading housing finance institution and The Standard Life

Assurance Company, a leading provider of financial services from the United

Kingdom. They have managed to cover over 11,00,000 individuals out of which over3,40,000 lives have been covered through our group business tie-ups.

Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings together

two large forces - Max India Limited, a multi-business corporate, togetherwith 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 Ltd

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 wasamongst 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.

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 Ltd

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and

Sun Life financial Services of Canada.


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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 theinfrastructure 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 createhuge employment opportunities not only within insurance companies but also as agents

and consultants of insurance companies.

Marketing Mix Policies

Different companies can choose to position themselves differently and hence theMarketing Mix is different. However, there are certain common char acteristics that one

can cull out from the possible strategies that companies adopt .

Product:


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The development of flexible products to suit individual requirements is what will

differentiate the winners from the also-rans. The key to success is in providinginsurance solutions, not standardized insurance products. The concept of riders/optional

benefits has already been a huge. innovation brought about by the new players, which

has led to customization of products for individual needs. However, companies maydifferentiate themselves on the basis of product segments that they choose to focus on

and excel in

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 companieslike 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

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 allof these.

Price:

Price is a relevant differentiator only in two segments - pure term insuranceand in pure annuities. Here too, service delivery and financial strength will need to be

present at a minimum annuities. Here too, service delivery and financial strength will

need to be present at a minimum 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.

Promotion and Advertising:

The level of demand is latent and will have to be activated considerably. The marketneeds 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


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these.

Process:

Cashless settlement: One of the most defining and customer-friendly changes that weveseen in recent years relates to the way claims settlements are made. The advent

of the third-party administrator (TPA) regime has facilitated the transition to the hugely

convenient era of cashless settlement of health and auto insurance claims. TPAs areentities who process claims on behalf of insurers: the IRDA licenses them after it is

satisfied that they have the financial strength, the trained manpower, the infrastructure

and the skills to undertake this activity Likewise, with auto insurance, the TPA ties up

with garages and authorized service centers for cashless settlement of auto insuranceclaims.

Lower premiums: The spirit of competition and the broadening of the risk

experience of insurance companies have contr ibuted to a fall in premiums over theyears. Thats because, other things being equal, an insurer who covers the lives just of 10

people bears a higher risk than an insurer who covers the lives of, say, 100 people.Further, a broader base will provide greater efficiencies on costs such as

distribution, management and claims. A broad basing of the mortality experience,

therefore, gives insurers the elbowroom to compete by lowering premiums and that trend

is expected to continue.

People:

The most important factor that materializes sales and maintains customer relationships on

a long- term basis is this factor. No matter what distribution strategy a companyadopts, customer relationship has to be taken care of in order to maintain the customer

base on a long-term basis.


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OBJECTIVES OF STUDY

To study about the awareness among the people for joining as agent in life insurance

companies.

To know the role and scope of financial consultant in life insurance companies.

To know the perception of consumer about life insurance.

To do the swot analysis of hdfc standard life insurance.

To know the different products offered by hdfc standard life insurance.


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CHAPTER 2


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COMPANYPROFILE

HISTORY

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurancecompanies, 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 per cent of equity in the joint venture.HDFC is India leading housing finance institution and has helped build more than 23,

00,000 houses since its incorporation in 1977. In Financial Year 2003-04 its assets under

management crossed Rs. 36,000 Cr. Stable and experienced management. HDFCStandard Life Insurance offers a range of individual and group solutions, which can be

easily personalized to specific needs. Its group solutions have been planned to offer

complete flexibility, together with a low charging structure. As of 31 December, 2008,the Company's new business premium income stood at Rs. 1,839.70 Crores; it has


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covered over 812,811 lives so far. Given below is a comprehensive list of policies and

products on offer by HDFC Standard Life Insurance:

Gross premium income, for the year ending March 31, 2009 touched Rs. 5,564.69 crore

As on March 31, 2009, it has over 27 lakh polices in force and Our gross premium

income, for the year ending March 31, 2010 stood at Rs. 7005 crores and new businesspremium income stood at Rs. 2,561 crores.

Their key strenths lie on their financial expertise range of solution as mentioned earlierand their immpacable track record thus far. Their trained sales force state of the art

technology and appropiate system and processes are all considered in ordre to acieve the

highest possible standard in customer sevice.

The company is to set the standard of the company by offering the best value of money.

They want to be the most trusted brand in the insurance business and they aim to be the

easiest company to deal with when it comes to their valuable client , shareholders andemployees.

It is a commercial bank of India has many branches all over India. HDFC Bank was

promoted by the Housing Development Finance Corporation, a premier housing financecompany of India. HDFC bank allows users to use ATM outside the Country without any

extra fees. HDFC Bank online banking is available for users. That means you can open

HDFC bank account online and check HDFC account status online. Most of the people ofIndia like HDFC Standard Life Insurance policy plans and products.

HDFC Standard Life Insurance company is one of leading private insurance companies,

offering a range of individual and group insurance solutions in India. Here you can catchall life insurance plans of HDFC Standard Life Insurance Policy. HDFC Standard Life

Insurance Policy plans are so simple.

You can make a better future of your own and also your family with opening a HDFC

Standard Life Insurance Policy. HDFC Standard Life Insurance also allows you HDFC

Standard Life Insurance online payment. You can pay HDFC Standard Life Insurancepremium online. You can buy HDFC Standard Life Insurance Policy online. Here is a

list of policies and products offer by HDFC Standard Life Insurance


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PLANS FOR HDFC STANDARD LIFE INSURANCE

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 famil

Protection Plans

HDFC Term Assurance Plan

HDFC Loan Cover Term Assurance Plan

HDFC Home Loan Protection Plan

Children's Plans

HDFC Children's Plan

HDFC Unit Linked Young Star II


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HDFC Unit Linked Young Star Plus II

HDFC Unit Linked YoungStar Champion

Retirement Plans

HDFC Personal Pension Plan

HDFC Unit Linked Pension II

HDFC Unit Linked Pension Maximiser II

HDFC Immediate Annuity

Savings & Investment Plans

HDFC Unit Linked Endowment Plus II

HDFC SimpliLife

HDFC Unit Linked Endowment II

HDFC Unit Linked Enhanced Life Protection II

HDFC Unit Linked Wealth Maximiser Plus

HDFC Unit Linked Endowment Winner

HDFC Endowment Assurance Plan

HDFC Money Back Plan

HDFC Single Premium Whole of Life Insurance Plan

HDFC Assurance Plan

HDFC Savings Assurance Plan

Health Plans

HDFC Critical Care Plan

HDFC SurgiCare Plan

Group Plans

Group Term Insurance Plan

Group Variable Term Insurance Plan

Group Unit Linked Plan - Gratuity


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Group Unit Linked Plan - Superannuation

Group Unit Linked Plan - Leave Encashment

HEAD OFFICE

Trade Star 2nd floor,

A WingJunction of Kondivita and M.V,

RoadAndheri-Kurla RoadAndheri (East),

Mumbai : 400059,

Maharashtra ,India .

BRANCHES

They have so many branches and substations in the India.

They have around 160 branches in the India.

And they have planned to open more branches across the country in the coming months.

MANAGING DIRECTOR AND CEO:

The managing director and ceo of standard lifi insurance company is Mr.Deepaksatwlekar.

AWARDS AND ACHIEVEMENTS:


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Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in

2004 Rated by 'Business world' as 'India's Most Respected Private Life InsuranceCompany' in 2004 finance magazine

HDFC KEYS STRENGHS

Financial expertise

as a joint venture of leading financial sevices group HDFC Standard life has the financial

expertise required to manage your long term investment safely and efficiently.

Range of solution

HDFC Standard have a range of individual and group solution , which can easilycustomized to specific needs . and its group solution is designed to offer the complete

flexibility combine with a low charge structure.

Track record so far


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Its gross premium income for the year 31st march 2008 stood at Rs 4859 crores and new

business premium income stood at Rs. 2685 crores.

The company has cover over 959000 year ending march 2008

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 thestandards in the industry'.

Our Values

Values that we observe while we work.

IntegrityInnovation

Customer centric

People Care One for all and all for onesTeamwork

Teamwork


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RECRUITMENT Process in HDFCSLIC

Recruitment is the process of finding and attracting capable applicants for employment.

The process begins when new recruits are sought and ends when their applications are

submitted. The result is a pool of applicants from which new employees are selected.

In this company the Sales Manager, who recruits the advisors/agents for selling the

products of the company, does the recruitment. The advisors should have at least passedthe S.S.C. examination. They must pass the pre recruitment examination, which is

conducted by the Insurance Institute of India, Mumbai, or any other approved

examination body. After clearing theExamination the code will be provided to them and

the license will also be given to them, the validity the license would be 3 years. After all

these requirements, the person will become an insurance advisor in the company.

SELECTION

Selection is the process of picking individuals (out of the pool of job applications) withrequisite qualifications and competence to fill job in the organization. In simple words, it

is the process of differentiating between applicants in order to identify these with a


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greater likelihood of success in a job.

The Branch Manager, will conduct the process of selection of Sales Manager.

Personal Interview: -

The first step of selection of Sales Manager in HDFC Standard life insurancecorporation is to conduct a personal interview of an applicant by the Branch

Manager.

Interview with Regional Head: -

After clearing the project 40 interview, the applicantshould be interviewed by

the Regional Head, who will check his/her performance.

Negotiation: -

After clearing the interview with Regional Head, the negotiation will beprovided to the applicant.

Medical Examination: -

After that, the medical checkup should e made to the applicant.

Selection: -

After clearing all the above steps the applicant should beappointed /selected as a

Sales Manager in the company.

TRAINING AND DEVELOPMENT:-

Training and Development is any attempt to improve current or future employee

performance by increasing an employees ability to perform through learning usually by

changing the employees attitude or increasing his/her skills and knowledge. The need fortraining and developmentisDetermined by the employees performance deficiency, computed as follow:

CAREER DEVELOPMENT

They are also providing career development plans, which will identify potential and

create avenues for growth.

INCENTIVES

Incentives are monetary benefits paid to workmen in recognition of their outstanding


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performance. They are providing an aggressive reward and recognition plans, which are

including sales incentives.

SERVICES

They are offering following certain services to their employees.

They are providing knowledge sharing and certification practices.

They are planned team building and fun events.

SWOT ANALYSIS

SWOT analysis is the analysis of the internal and external factors, which have impact on

the survival of any organization.

STREANTH:

Stong brand namea large distribution network

customer centric approach execution in excellence

team workgood infrastructure

WEAKNESSES:

Frequent job rotation by employees

less number of advertisementhidden charges

OPPORTUNITY:

Only 25% of insurable people have any insurancecan introduce innovative products offering a right mix of flexibility / risk / return

share of fdi is going to raise by 26% to 49%.


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THREATS:

People prefer short investment rather than insurance.

Other private insurance companies

CHAPTER 3

LITERATURE

REVIEW


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Major Insurance Industry Trend

Although the insurance sector has had at least one spectacular disaster during the current

financial crisis, in the shape of the huge losses sustained by American International

Group (AIG), it has, by and large, not been nearly as badly damaged by the crisis as the

global banking sector.

In a considered paper on the impact on the sector of the crisis, Zurich Re author, Marian

Bell, argues that although insurers and banks are both suppliers of financial services, and

together constitute the bulk of the financial services industry, they remain very distinct

businesses, with different regulatory regimes, and a different approach to risk. Thus, it is

not surprising that the financial crisis has affected the two related businesses of banking

and insurance differently.

The insurance sector has been exposed to the current financial crisis in several ways. It

invests in equities, and, substantially, in banking stocks (which gives it exposure to bank

losses through share price losses in its investment portfolio), and in corporate investment-

grade bonds, about 60% of which come from the finance sector. Insurance companies

have also, in recent years, become much more involved in the capital markets, with some

insurance lines being securitized and sold to the capital markets.

However, this does not pose as great a risk as the banks investing in asset-backed

securities, many of which turned toxic as the US subprime mortgage crisis developed.

The International Association of Insurance Supervisors (IAIS), which represents

insurance regulators and supervisors from some 190 jurisdictions around the world, has a


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clear view of the global insurance industry. In a communiqu issued on December 17,

2008, it said that the global reinsurance sector remains resilient amid the financial

crisis.

The IAIS made the remarks in the context of publishing its fifth annual overview of thefinancial conditions of reinsurers, the Global Reinsurance Market Report 2008. The

overview assessed the reinsurance markets stability and interrelated risks, as well as the

impact of the current turmoil on the sectors ability to transact business. The point is that

reinsurers, who can be thought of as the companies to which insurance organizations

hand off some of their book risk, so as to dilute their own positions, play an important

role in the functioning of efficient insurance markets across the world. They act like

shock absorbers, particularly in providing disaster coverage.

The reinsurance business, as is true for the whole insurance sector, is very cyclical, withgood years and bad years. Another cycle in the sector is that of hard pricing versus soft

pricing. Hard pricing, basically, takes over after the sector has endured one or more

particularly bad years, and the cost of insurance across a whole range of lines of business

rises sharply. Normally, the capacity in the industry is enough to ensure that competition

for business keeps prices on the low side. Any insurance company that tries to raise

prices finds its customers going elsewhere, so no single organization has the power to

harden prices. This can only happen when capacity is taken out of the industry, again,

usually after companies have made losses through massive payouts on disasters.

The IAIS points out that, following record losses in 2005, particularly hurricane losses

and flood damage, both 2006 and 2007 were profitable years for the reinsurance sector.

This gave the sector a solid financial base to weather the challenges of the financial crisis,

the IAIS says.

Zurich Re, in its report, quotes the IAIS as saying that no insurers have, so far,

experienced liquidity difficulties as a result of the recent market turmoil. They have all

remained open for business, and have been transacting business in a way that the banks

clearly have not.

In all, the Zurich Re report says, insurers exposure to the toxic asset-backed securities

market amounts to no more than 1% of assets in aggregate. In effect, the report says that

the upturn in the insurance industrys pricing cycle in 2008, with prices hardening in

some lines of business, led insurers to start redeploying their capital away from

potentially dodgy derivatives investments, and back into their core lines of business.


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It is important to understand the difference between the types of risk run by the two

sectors. As the Zurich Re report notes, the banking sector invested in products where the

underlying risk is a financial or market risk (such as credit worthiness, price volatility, or

exchange-rate volatility). Insurance-linked securities, on the other hand, are products

where the underlying risk is a real event, such as a natural catastrophe, a fire, or a motoraccident. The various types of financial risk can, in some circumstances, all turn out to be

related, creating a perfect storm. With insurance risk, however, the events are

fundamentally unrelated and uncorrelated. They are non-systemic, idiosyncratic risks.

This means that in financial risks the risk can be aggregated in ways that prevent hedging

strategies from working (all prices fall when markets collapse). The risks cannot be

diversified away by investing in other financial and market risks, the report says. In

contrast, insurance-linked securities offer the prospect of diversification and are not

subject to the same degree of contagion as financial risk. Here again, this explains why

the insurance sector has come out of the crash better than the banking sector.


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CHAPTER 4

RE

SEARCHMETHODOLOGY


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The above title is self explanatory. The study deals mainly with studying the buying

pattern in the insurance industr y with a special focus on HDFC Standard Life Insurance.

The various segments of the markets divided in terms of Insurance Needs, Age groups ,Satisfaction levels etc will also studied.

SamplingTechnique:

Initially, a rough draft was prepared keeping in mind the objective of the research. A

pilot study was done in order to know the accuracy of the Questionnaire. The final

Questionnaire was arrived only after certain important changes were done. Thus mysampling came out to be judemental and convinent

Primary data: -

For the survey a sample of 150 people were considered. Out of these 70 of them arepersonally visited, rest information about 80 are gathered through online. Out of these 14

people havent responded, 36 responses were discarded and remaining 30 responses were

complete to get data.

Secondary data: -

Secondary data consist of information that already exists somewhere, having been

collected for another purpose. For this report secondary data is collected from website ofdifferent operators, different magazines, newspapers and libraries.

Sample size: -


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Thus sample size of 100 respondents is taken. Because the population is too large so it is

difficult to survey.

OBJECTIVE OF THE RESEARCH METHODOLOGY

To determine reasons behind opting for an insurance To provide the company with

information of customer's Insurance policy if they have any and reasons for opting forthat particular policies.

To determine customers perception towards private insurance companies andtheir expectation form private insurance companies To determine the feedback on

services provided by any other insurance agent To study the types of benefits provided by

insurance services To determine the use of Internet for valuable information anddecision-making process.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industr y in recent times. A large number ofnew players have entered the market and are vying 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 analyse the findings so

as to present a clear picture of trends in the Insurance sector.

SIGNIFICANE FOR THE RESEARCHER

To facilitate and provide all the useful informtaion of the studt, the

company, the insurance

industr y and also provide marketing ways, methods ofHDFC Standard

Life insurance.

RESEARCH DESIGN

NON-PROBABILITY

EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH


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The research is primarily both exploratory as well as descriptive in nature. The

sources of infor mation are both primary & secondary

A well-structured questionnaire was prepared and personal interviews were conducted to

collect the customers perception and buying behavior, through this questionnaire

CHAPTER 5

DATAANALYSIS


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Market Research for the project was conducted in Delhi and Ghaziabad. It is a descriptive

type of research and sampling for responses is simple random sampling. The sample sizefor the research is 100 for comparative analysis and 100 for recruiting Life Advisors.

In the survey I have also found out the persons who are working and the students werekeen in taking on line training as compared to housewives and retired persons.

Analysis Made By Responses :

Which Age Group buy insurance policy?

AGE GROUP IN PECENTAGE

20-29 35

30-39 31

40-49 18

50-59 5

Above 60 11

TOTAL 100


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Table No1.1: Age Group of the Customers

AGE GROUP

35%

31%

18%

5%

11%

20-29

30-39

40-49

50-59

Above 60

INTERPRETATION:

As evident from the chart that I have taken a sample of 100. Out of which 35% people are

aged between 20 to 29, 31% people are aged between 30 to 39, 18% people are aged

between 40 to 49, 5% are between 50-59, and remaining 11% are above 60. According toabove data, we get to know that People belong to Age Group 20-39 buys Insurance

policies most. This shows, youth are more concerned towards saving or making

investments to secure their today as well as tomorrow. This also depicts that, Youths areinvesting to get returns more, where as people belongs to age group 50-59 are investing

for saving purpose in their retirement


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What Are The Occupation Of Customers?

TYPES OF OCCUPATION PERCENTAGE

SERVICE 46

BUSINESS 28SELF EMPLOYED 12

RETIRED 14

TOTAL 100

Table No1.2: occupation of customers

OCCUPATION

46%

28%

12%

14%

SERVICE

BUSINESS

SELF EMPLOYED

RETIRED

. INTERPRETATION:

As the evident from the chart that out of 100 respondents, 46% are of service men, 28%

are of business men, 12% are of self employed, and remaining 14% are of retired.

Data gives preference of respondents of insurance companies?

COMPANY NAME IN PERCENTAGE

LIC 30


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HDFC 42

ICICI Pru 10

SBI Life 12

RELIANCE life 6

TOTAL 100


IN PERCENTAGE

30%

42%

10%

12%

6%

LIC

HDFC

ICICI Pru

SBI Life

RELIANCE life

INTERPRETATION:

42% of the people contacted prefer HDFC LIFE policy to any other and therefore it isranked no.1 by that percent of respondents.

DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS?

BENEFITS IN PERCENTAGE

Future uncertainity 60


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Tax deduction 20

Future investment 20

TOTAL 100


IN PERCENTAGE

60%20%

20%

Future uncertainity

Tax deduction

Future investment

INTERPRETATION:

60% of the respondents believe that covering future uncertainty is the biggest benefit ofan insurance policy Whereas, 20% and 20% of them believe that the other benefits are

Tax deduction and future investments respectively

What are the features of insurance policy that attract the respondents?

FEATURES IN PERCENTAGE

Money Back guarantee 20

Large Risk Coverance 38

Low Premium 30


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Company Reputation 12

TOTAL 100


IN PERCENTAGE

20%

38%

30%

12%

Money Backguarantee

Large Risk

Coverance

Low Premium

Company

Reputation

INTERPRETATION:

Majority of the respondent (38%) found Larger risk coverance as the most attracted

feature of the all.

Which type of policy does respondent have?

POLICY TYPE IN PERCENTAGE

Life Policy 52

Non Life Policy 20

Both 28


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TOTAL 100


TYPE OF POLICY

52%

20%

28%

Life PolicyNon Life Policy

Both

INTERPRETATION:

52% of the respondents have Life Insurance Policy while 28% have both

Have u heard about HDFC Standard Life Insurance Policy?

OPTIONS IN PERCENTAGE

Yes 90

No 10


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TOTAL 100


HDFC STANDARD LIFE INSURANCE

90%

10%

Yes

No

INTERPRETATION:

Of the sample size of 100 surveyed respondents 90% of the respondents are

known about HDFC standard life insurance and other 10% did not even heard about the

HDFC standard life insurance.

Data shows the satisfaction of respondent with respect to insurance policy?

SATISFACTION IN PERCENTAGE

Satisfied 60

Not Satisfied 30

Not Responding 10

TOTAL 100


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SATISFACTION OF RESPONDENTS

60%

30%

10%

Satisfied

Not SatisfiedNot Responding

INTERPRETATION:

60% of the respondents are more or less satisfied with their existing policy 30% of therespondents are not satisfied with their existing policy and 10% of respondent have not

responded .

In which type of market will respondents invested their money?

TYPE OF MARKET IN PERCENTAGE

Share Market 14

Mutual Fund 15

Insurance 23

Others 48

TOTAL 100


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INVESTMENT IN MARKET

14%

15%

23%

48%

Share Market

Mutual Fund

Insurance

Others

INTERPRETATION:

48% of respondents are like to invest money in other market whereas 23% of respondents

are like to invest in insurance and 14% and 15% are like to invest in share market andmutual fund respectively.

Data shows the buying process of respondents?

BUYING PROCESS IN PERCENTAGE

Customer Approach insurance Company 45

Insurance Company Approach Customer 55

TOTAL 100



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BUYING PROCESS

45%

55%

Customer

Approach

insurance

Company

Insurance

Company

Approach

Customer

INTERPRETATION:

As the evident from the chart out of 100 respondents 55% have approached by Insurancecompanies and remaining 45% have approached to the Insurance companies by own.


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From the above analysis and interpretation following facts and findings are comiinti consideration:

As the people think that insurance is a tool to protect their family & a tax saving device.

They are aware of the fact & realizing its, importance. The company should try to expand& build up its infrastructure because there is a large potential for insurance in India.

Company should come up with its branch in Chennai. With the objective and goals to

meet the demands & expectations of the public. Because the entrance of private playerswill increase the competition and it would be a tough task to secure a good position in

market .

Since HDFC STANDARD LIFE INSURANCE LTD is leading with severalcompanies policies it should be easy for them to penetrate into the market and secure agood position if they pay greater attention to the service part provided to their customer

and thereby forming a long and trusted relationship.

It is also find that HDFC Standard life insurance traditional plans are very useful for anormal person and the children plan is one of the most popular product of the company.

As seen from the survey mostly the young generation is most preferring to buy the

insurance policy to save their future uncertainity.and about 52% of the respondents preferto buy life policy and 28% prefer both the policies that is life and non life policy.

And the first and last the about 42%of respondents out of 100 is prefer to buy the HDFC

Standard life insurance.


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Following Is the Conclusion From The above Study:

Our exhaustive research in the field of Life Insurance threw up some intresting trends

which can be seen in the above analysis. A general impression that we gathered during

Data collection was the immense awareness and knowledge among people aboutvarious companies and their insurance products. 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 impressioned by the marketing and adver tisingcampaigns of insurance companies. A high penetration of print , radio and Television

ad campaigns over the years is beginning to have its impact now

According to findings, it is depicted that this is the sector, which has most business

opportunities perhaps in India. Insurance industry is one of the fastest sectors in India.

Insurance sector has been growing by 25% to 30% and it is expected to increase by 50%in coming 5 years. After the opening up of the insurance sector, it has become much

competitive and insurance awareness among people has increased. Only 19% of the total

sample knows about more than 8 insurance companies. They dont know about the newentrants in the insurance industry. So private companies should use different channels to

establish them and ensure their presence in the minds of customers

Another heartning 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

respondants have opted for insurance for such purposes and it shows how insurancecompanies ahve been successful to attract public money in recent times.

Life insurance service sector is highly growing. HDFC Standard Life Insurance is the

private insurance organization which is developing and growing at fast rate. It isrenowned for transparency and high corporate governance standard


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Following are the suggestion and recommendation for the HDFC Standard Life

Insurance

As the people think that insurance is a tool to protect their family & a tax saving device.They are aware of the fact & realizing its, importance. The company should try to

expand & build up its infrastructure because there is a large potential for insurance in

India.

Company should come up with its branch in Chennai. With the objective and goals to

meet the demands & expectations of the public. Because the entrance of private

players will increase the competition and it would be a tough task to secure a good

position in market Since HDFC Standard Life Insurance Company Ltd is leadingwith several companies

policies it should be easy for them to penetrate into the market and secure a good position

if they pay greater attention to the service part provided to their customer and thereby

forming a long and trusted relationship

Company must provide training to their agents and executives so that they can satisfy


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customers doubts effectively. There must be good incentive schemes to be designed as

these can acts as good motivators for the agents. The scheme of permanent job placement

must be introduce for those advisors who have shown extra ordinary performance..

Increase in distribution sector. Provide proper training to workforce. The company should

more oriented towards rural market. Provide lower premium policies so that we couldtarget middle class people and generate good cash flow for futher growth. Changes in the

policies should be communicated to the customers at the earliest.

BIBLIOGRAPHY


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ANNEXURE

1


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QUESTIONNAIRE

QUES 1- PERSONAL DETAILS

Name

Age

Salary

QUES 2 - ARE YOU EMPLOYED

YES

NO


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QUES 3- DO YOU HAVE ANY INSURANCE POLICY

YES

NO

QUES 4 - WHICH INSURANCE POLICY DO YOU HAVE

YES

NO

QUES 5.- WHICHCOS INSURANCE POLICY YOU PREFER THE MOST

LIC

Icici Prudential life

Reliance life insurance

Max Newyork life

Bajaj Allianz

QUES 6 - WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCECOVER

COVER FUTURE UNCERTAINITY

COVER FUTURE UNCERTAINITY

FUTURE INVESTMENT

ANY OTHER _________ (Specify

QUES 7- ARE YOU SATISFIED WITH THE POLICY

SATISFIED SAVING TOOL

NOT SATISFIED


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