final project Hdfc life

8/12/2019 final project Hdfc life

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To Whom It May Concern

I .I/I# /UMAR SING!A#, &nrolment 'o. +01*,2+,0+1 from BBA3. Sem of the

Te(nia Institute of Ad)an(ed Studies, *elhi here+ de(lare that the Summer Training eort

/BBA-%$$0 entitled CONSUMER BU4ING BE!A.IOUR IN INSURANCE SECTOR

ON OCUS ON T!E !"C #IE at !"C #IE5 Is an original 1ork and the same has

not +een su+mitted to an other Institute for the a1ard of an other degree. A resentation of

the Summer Training eort 1as made on *63AUG3*+,,and the suggestions as aro)ed +

the fa(ult 1ere dul in(ororated.

*ate2 Signature of the Student

Certified that the Summer Training eort su+mitted in artial fulfillment of Ba(helor of

Business Administration /BBA0 to +e a1arded + 3.3.S.I.P. Uni)ersit, *elhi + .i7i)

/umar Singha), &nrolment 'o. +01*,2+,0+1has +een (omleted under m guidan(e and is

Satisfa(tor.

*ate2 Signature of the 3uide

'ame of the 3uide2 Chan&an %rasa&

*esignation2 Assistant Pro$essor( TIAS

3


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Summer Training A%%raisa) orm

Summer Training Appraisal form to be filled by the respective industry guides on the formatprescribed by the GGSIP University which is as follows:

Summer Training Appraisal

Students Name: viil !umar Singhal

Programme: ""A

You are requested to provide your opinion on the following parameters.

Outstanding Good SatisfactoryUnsatisfactory

A B C D

#$ Technical nowledge gathered about the industry and the %ob he&she was involved$

'$ (ommunication Sills: )ral & *ritten & +istening sills

3$ Ability to wor in a team

,$ Ability to tae initiative

-$ Ability to develop a healthy long term relationship with client

.$ Ability to relate theoretical learning to the practical training

/$ (reativity and ability to innovate with respect to wor methods 0 procedures

1$ Ability to grasp new ideas and nowledge

2$ Presentations sills

#$ 4ocumentation sills

##$ Sense of 5esponsibility

#'$ Acceptability 6patience7 pleasing manners7 the ability to instill trust7 etc$8

#3$ 9is&her ability and willingness to put in hard wor

#,$ In what ways do you consider the student to be valuable to the organiation;

(onsider the student


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Any other comments

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>$

Assessors overall rating

Assessor


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E;ECUTI.E SUMMAR4

In toda7s (ororate and (ometiti)e 1orld, insuran(e se(tor has the ma5imum gro1th and

otential as (omared to the other se(tors. Insuran(e has the ma5imum gro1th rate of !-

:; 1hile as 6MC3 se(tor has ma5imum $#-$


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CONTENTS

/


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1

S NO5 TOPIC PAGE NO5

, CERTIICATE *

* SUMMER TRAINING APPRAISA# ORM RE.IE8 O #ITRATURE *6

0 C!APTER 2 > RESEARC! MET!O"O#OG4 *?

? C!APTER < > "ATA RE"UCTION( PRESENTATION @ANA#4SIS

2+

1 C!APTER 6 > "ATA INTREPRETATION SUMMAR4 AN" CONC#USIONS


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C!APTER - ,

INTRO"UCTION

,5, Intro&uction >

,5,5,The li+erali9ation of the Indian insuran(e se(tor has +een the su+4e(t of mu(h heated

de+ate for some ears. The oli( makers 1here in the (at(h ## situation 1herein for one

the 1anted (ometition, de)eloment and gro1th of this insuran(e se(tor 1hi(h is

2


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e5tremel essential for (hanneling the in)estments in to the infrastru(ture se(tor. At the other

end the oli( makers had the fears that the insuran(e remia, 1hi(h are su+stantial, 1ould

see out of the (ountrD and 1anted to ha)e a (autious aroa(h of oening for foreign

arti(iation in the se(tor.

,5,5* As one of the rare o((urren(es the entire de+ate 1as ut on the +a(k +urner and the

I*A sa1 the da of the light thanks to the maturing olit emerging (onsensus among

fa(tions of different oliti(al arties. Though some (hanges and some restri(ti)e (lauses as

regards to the foreign arti(iation 1ere in(luded the I*A has oened the doors for the

ri)ate entr into insuran(e.

8hether the insurer is old or ne1, ri)ate or u+li(, e5anding the market 1ill resent

multitude of (hallenges and oortunities. But the ke issues, ossi+le trends, oortunities

and (hallenges that insuran(e se(tor 1ill ha)e still remains under the realms of the

ossi+ilities and se(ulation. 8hat is the likel ima(t of oening u India7s insuran(e

se(torE

,5,52 The large s(ale of oerations, u+li( se(tor +ureau(ra(ies and (um+ersome ro(edures

hamers nationali9ed insurers. Therefore, otential ri)ate entrants e5e(t to s(ore in the

areas of (ustomer ser)i(e, seed and fle5i+ilit. The oint out that their entr 1ill mean

+etter rodu(ts and (hoi(e for the (onsumer. The (riti(s (ounter that the +enefit 1ill +e slim,

+e(ause ne1 laers 1ill (on(entrate on affluent, ur+an (ustomers as foreign +anks did until

re(entl.

,5,5


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,5,56 In $:$: the British esta+lished the first insuran(e (oman in India in Cal(utta, the

riental =ife Insuran(e Coman. 6irst attemts at regulation of the industr 1ere made 1ith

the introdu(tion of the Indian =ife Assuran(e Comanies A(t in $"$#. A num+er of

amendments to this A(t 1ere made until the Insuran(e A(t 1as dra1n u in $"%:.

'ote1orth features in the A(t 1ere the o1er gi)en to the 3o)ernment to (olle(t statisti(al

information a+out the insured and the high le)el of rote(tion the A(t ga)e to the u+li(

through regulation and (ontrol. 8hen the A(t 1as (hanged in $"


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,52 Sco%e O$ The Stu&y

A +ig +oom has +een 1itnessed in Insuran(e Industr in re(ent times. A large num+er of ne1

laers ha)e entered the market and are )ing to gain market share in this raidl imro)ing

market. The stud deals 1ith @*6C Standard =ifein fo(us and the )arious segments that it

(aters to. The stud then goes on to e)aluate and analse the findings so as to resent a (lear

i(ture of trends in the Insuran(e se(tor.

,5< Com%any %ro$i)e

ig , > !"C #ogo

,5


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,5


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in(etion in #, 1hen the Indian insuran(e sa(e 1as oened for ri)ate arti(iation, 1e

ha)e (onsistentl fo(used on setting +en(hmarks in all ase(t on insuran(e +usiness. Being

the first ri)ate laer to +e registered 1ith the I*A and the first to issue a oli( on

*e(em+er $#, #.

,5


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(hief 1age earner in our famil. 'o matter ho1 mu(h ou ha)e sa)ed or in)ested o)er the

ears, sudden e)entualities, su(h as death or (riti(al illness, al1as tend to affe(t our famil

finan(iall aart from the huge emotional loss.

,5


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In the ra(e to e5(el in our rofessional li)es and ro)ide the +est for our lo)ed ones, 1e

sometimes negle(t the most imortant asset that 1e ha)e - our health. 8ith in(reasing le)els

of stress, negligi+le hsi(al a(ti)it and a deteriorating en)ironment due to raid

ur+ani9ation, our )ulnera+ilit to diseases has in(reased at an alarming rate.

,5


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=ife Insuran(e Cororation of India /=IC0 1as esta+lished on $ Setem+er $"


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'o)em+er $"!#. 8ith effe(t from $ Januar $"!% the erst1hile $! Indian and foreign

insurers 1hi(h 1ere oerating in the (ountr rior to nationali9ation, 1ere groued into four

oerating (omanies, namel, /i0 'ational Insuran(e Coman =imitedD /ii0 'e1 India

Assuran(e Coman =imitedD /iii0 riental Insuran(e Coman =imitedD and /i)0 United

India Insuran(e Coman =imited. /@o1e)er, 1ith effe(t from *e(#, these su+sidiaries

ha)e +een de-linked from the arent (oman and made as indeendent insuran(e

(omanies0. All the a+o)e four su+sidiaries of 3IC oerate all o)er the (ountr (ometing

1ith one another and under1riting )arious (lasses of general insuran(e +usiness e5(et for

a)iation insuran(e of national airlines and (ro insuran(e 1hi(h is handled + the 3IC.

Besides the domesti( market, the industr is resentl oerating in $! (ountries dire(tl

through +ran(hes or agen(ies and in $G (ountries through su+sidiar and asso(iate

(omanies.

,565< IN A""ITION TO ABO.E STATE INSURERS T!E O##O8ING !A.E

BEEN PERMITTE" TO ENTER INTO INSURANCE BUSINESS> 3

The introdu(tion of ri)ate laers in the industr has added to the (olors in the dull industr.

The initiati)es taken + the ri)ate laers are )er (ometiti)e and ha)e gi)en immense

(ometition to the on time monool of the market =IC. Sin(e the ad)ent of the ri)ate

laers in the market the industr has seen ne1 and inno)ati)e stes taken + the laers in

this se(tor. The ne1 laers ha)e imro)ed the ser)i(e ?ualit of the insuran(e. As a result

=IC do1n the ears ha)e seen the de(lining hase in its (areer. The market share 1as

distri+uted among the ri)ate laers. Though =IC still holds the !


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@*6C Standard =ife Insuran(e Coman =td. is one of India7s leading ri)ate life insuran(e

(omanies, 1hi(h offers a range of indi)idual and grou insuran(e solutions. It is a 4oint

)enture +et1een @ousing *e)eloment 6inan(e Cororation =imited /@*6C =td.0, India7s

leading housing finan(e institution and The Standard =ife Assuran(e Coman, a leading

ro)ider of finan(ial ser)i(es from the United Kingdom.

,565,565


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Tata AI3 =ife Insuran(e Coman =td.

SBI =ife Insuran(e Coman =imited

I'3 Vsa =ife Insuran(e Coman Pri)ate =imited

Allian9 Ba4a4 =ife Insuran(e Coman =td.

Metlife India Insuran(e Coman P)t. =td.

AMP SA'MA Assuran(e Coman =td.

*a+ur C3U =ife Insuran(e Coman P)t. =td.

,5656 Mar7eting o$ Insurance In In&ia

Insuran(e is in a manner of seaking the last frontier in the finan(ial se(tor to oen. It is also

a se(tor, 1hi(h leads to +enefits a(ross the full se(trum, from the indi)idual 1ho no1 ha)e

1ider (hoi(es, to the e(onom, 1hi(h see in(reased sa)ings, to the infrastru(ture se(tor,

1hi(h (an look for1ard to long term funding +eing a)aila+le. In an under-insured e(onom,

ne1er (hannels of distri+ution ha)e to +e utili9ed to intensif the rea(h of insuran(e +oth in

ur+an and rural markets. This 1ill (reate huge emloment oortunities not onl 1ithin

insuran(e (omanies +ut also as agents and (onsultants of insuran(e (omanies.

,565= Mar7eting MiF Po)icies

*ifferent (omanies (an (hoose to osition themsel)es differentl and hen(e the Marketing

Mi5 is different. @o1e)er, there are (ertain (ommon (hara(teristi(s that one (an (ull out

from the ossi+le strategies that (omanies adot.

,565=5, Pro&uct>''


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The de)eloment of fle5i+le rodu(ts to suit indi)idual re?uirements is 1hat 1ill differentiate

the 1inners from the also-rans. The ke to su((ess is in ro)iding insuran(e solutions, not

standardi9ed insuran(e rodu(ts. The (on(et of ridersotional +enefits has alread +een a

huge inno)ation +rought a+out + the ne1 laers, 1hi(h has led to (ustomi9ation of

rodu(ts for indi)idual needs. @o1e)er, (omanies ma differentiate themsel)es on the +asis

of rodu(t segments that the (hoose to fo(us on and e5(el in.

,565=5* P)ace>

*ifferent (omanies ma ho1e)er (hoose different (hannels and different geograhies to

fo(us on. The (hannel otions are - tied agen( for(e, (ororate agents and +rokers and this is

an area 1here different (omanies 1ill make different (hoi(es. Man (omanies like @*6C

Standard =ife are fo(using on all (hannels 1hereas (omanies like Ma5 'e1 Lork =ife are

fo(using on the tied agen( for(e onl. Customer interfa(e 1ill +e a ke (hallenge for life

insuran(e (omanies and in(ludes e)er that intera(tion that the (ustomer has 1ith the

(oman, su(h as sales, ne1 +usiness under1riting, oli( ser)i(ing, remium aments,

(laim ro(essing and so on. Te(hnolog (an la a (ru(ial role in deli)ering the highest

standards of ser)i(e set + the (oman and it 1ill +e imerati)e for an serious laer to

e5(el in all of these.

,565=52 Price>

Pri(e is a rele)ant differentiator onl in t1o segments - ure term insuran(e and in ure

annuities. @ere too, ser)i(e deli)er and finan(ial strength 1ill need to +e resent at a

minimum a((eta+le le)el for ri(e to +e a rele)ant differentiator. In (ase of sa)ings oriented

rodu(ts, long-term returns generated are more rele)ant than 4ust the ri(e of the rodu(t. A

fo(us on generating good in)estment erforman(e and keeing a tight (ontrol on (osts hel in

generating good long-term maturit )alue for (ustomers. 'orms ha)e +een laid do1n on all

of these + I*A and adhering to these 1hile deli)ering good returns 1ill +e a (hallenge.

'3


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,565=5< Promotion an& A&vertising>

The le)el of demand is latent and 1ill ha)e to +e a(ti)ated (onsidera+l. The market needs to

+e de)eloed. 3reater a1areness of insuran(e and the need to ha)e it as a rote(tion tool

rather than as a ta5 lanning measure needs to +e are(iated + the Indian eole. Various

(ommuni(ation tools in(luding ad)ertising, dire(t marketing and road sho1s (ontri+ute to all

this and different (omanies take different aroa(hes on these.

,565=56 Process>

,565=565, Cash)ess sett)ement> ne of the most defining and (ustomer-friendl (hanges that

1e7)e seen in re(ent ears relates to the 1a (laims settlements are made. The ad)ent of the

third-art administrator /TPA0 regime has fa(ilitated the transition to the hugel (on)enient

era of (ashless settlement of health and auto insuran(e (laims. TPAs are entities 1ho ro(ess

(laims on +ehalf of insurers2 the I*A li(enses them after it is satisfied that the ha)e the

finan(ial strength, the trained mano1er, the infrastru(ture and the skills to undertake this

a(ti)it.

,565=5= Peo%)e>

The most imortant fa(tor that materiali9es sales and maintains (ustomer relationshis on a

long-term +asis is this fa(tor. 'o matter 1hat distri+ution strateg a (oman adots,

(ustomer relationshi has to +e taken (are of in order to maintain the (ustomer +ase on a

long-term +asis.

',


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Cha%ter3* Review o$

#iterature

'-


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Intro&uction

The meaning of insuran(e is imortant to understand for an+od that is (onsidering +uing

an insuran(e oli( or siml understanding the +asi(s of finan(e. Insuran(e is a hedging

instrument used as a re(autionar measure against future (ontingent losses. This instrument

is used for managing the ossi+le risks of the future.

Consumer +eha)ior refers to the mental and emotional ro(ess and the o+ser)a+le +eha)ior

of (onsumers during sear(hing, ur(hasing and ost (onsumtion of a rodu(t or ser)i(e.

Consumer +eha)ior in)ol)es stud of ho1 eole +u, 1hat the +u, 1hen the +u and

1h the +u. It +lends the elements from s(holog, so(iolog, s(holog, anthroologand e(onomi(s. It also tries to assess the influen(e on the (onsumer from grous su(h as

famil, friends, referen(e grous and so(iet in general.

Buer +eha)ior has t1o ase(ts2 the final ur(hase a(ti)it )isi+le to an o+ser)er and the

detailed or short de(ision ro(ess that ma in)ol)e the interla of a num+er of (omle5

)aria+les not )isi+le to anone.

Marketing is a so(ietal ro(ess + 1hi(h indi)iduals and grous o+tain 1hat the need and

1ant through (reating offering and freel e5(hanging rodu(ts and ser)i(es of )alue 1ith

others for a managerial definition marketing has often +een des(ri+ed as HThe art of sellingthe rodu(ts H+ut eole surrised 1hen the hear that the most imortant art of marketing

is not selling is onl the tri(k of the marketing i(e+erg.

BVB College of &ngineering N Te(hnolog @u+li

Comanies ra(tising the marketing (on(et 1ork at the le)el of (ustomer segments, a

gro1ing num+er of toda7s (omanies are no1 shaing searate offers ser)i(es and messages

to indi)idual (ustomers these (omanies (olle(t information on ea(h (ustomers ast

transa(tion demograhi(s, s(hograhi(s and media and distri+ution referen(e,. The hoe

to a(hie)e rofita+le gro1th through (aturing a larger share of ea(h (ustomer7s e5enditure

+ +uilding high (ustomer loalt and fo(using on (ustomer life time )alue.

'.


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25, Research &esign

25,5,esear(h design- &5lorator and *is(riti)e esear(h

25,5*Uni)erse- 'on Pro+a+ilit

25,52*ata used- Primar as 1ell Se(ondar data

25,5


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#

ig < > Pre$erence o$ res%on&ants


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%

ig 6 > 'ene$its o$ insurance


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G

ig = > $eatures o$ insurance %o)icy


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ty%e o$ res%on&ants


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ig ? > %eo%)e %erce%tion


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!

ig 1 >SATISACTION O RESPON"ENTS


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:

ig ,+ > PEOP#EDS PERCEPTION ON APPROPRIATE AGE


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"

ig ,, > REASONS BE!IN" GOING OR INSURANCE


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ig ,* >RESPON"ENTS PA4ING TA;


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ig ,2 > RESPON"ENTDS IN.ESTMENTS OR TA; SA.ING


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$#

ig ,< >RESPON"ENTS PERCEPTION


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ig ,6 >PEOP#E INTENT TO GAIN


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$ SATISACTION O RESPON"ENTS

,.


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65*= %:; of the resondents intent to gain sa)ing and returns from their in)estment.

65*0 %


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Cha%ter3= Summary @

Conc)usion

=5, #imitations o$ the stu&y

=5,5, The resear(h is (onfined to a (ertain arts of *&=@I and does not ne(essaril sho1s a attern

ali(a+le to all of Countr.

=5,5* Some resondents 1ere relu(tant to di)ulge ersonal information 1hi(h (an affe(t the

)alidit of all resonses.

=5,52 In a raidl (hanging industr, analsis on one da or in one segment (an (hange )er ?ui(kl.

The en)ironmental (hanges are )ital to +e (onsidered in order to assimilate the findings.

=5* Recommen&ations

=5*5,As the eole think that insuran(e is a tool to rote(t their famil N a ta5 sa)ing de)i(e.-


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Bi')iogra%hy

-'


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www5wi7i%e&ia5com

htt%>en5wi7i%e&ia5orgwi7i!&$c)i$einsuranceon *2r& octo'er at *>,0 %5m5

www5myinsurancec)u'5com

htt%>www5myinsurancec)u'5com)i$e3insurancecom%aniesh&$c3)i$eat 6>*6 %5m5 on *n&

Novem'er *+,,

www5h&$c'an75com

htt%>www5h&$c'an75com%ersona)investmentsinsurance5htmon ,,th novem'er *+,,

at 0>,6 %5m5

A%%en&ices

#ist o$ Ta')es

TAB#E NO5 TIT#E PAGE NO5

, Ta')e , > PEOP#E !A.ING #IE INSURANCE 2,

* Ta')e * > PRERENCE O RESPON"ANTSP 2*

2 Ta')e 2 > BENEITS O INSURANCE 22

< Ta')e < > EATURE O INSURANCE PO#IC4 2 PEOP#E PERCEPTION 2=

0 Ta')e 0 >SATISACTION O RESPON"ENTS 20

? Ta')e ? > PEOP#EDS PERCEPTION ON

APPROPRIATE AGE

2?

1 Ta')e 1 >REASONS BE!IN" GOING OR

INSURANCE

21

,+ Ta')e ,+ >RESPON"ENTS PA4ING TA;


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,, Ta')e ,, >RESPON"ENTDS IN.ESTMENTS

OR TA; SA.ING

PEOP#E INTENT TO GAIN SATISACTION O

RESPON"ENTS


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,2 RESPON"ENTDS IN.ESTMENTS


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05 8!IC! EATURE O 4OUR PO#IC4 ATTRACTE" 4OU TO BU4

IT?

/A'K T@&M0

a0 =8 P&MIUM

+0 =A3& ISK CV&A'C&

(0 M'&L BACK 3UA'T&&

d0 &PUTATI' 6 CMPA'L

e0 &ASL ACC&SS T A3&'TS

f0 A'L T@& OOOOOOOOO /Se(if0

?. 4OUR MONT!#4 INCOME?

a0Gk +0Gk-:k (0:k-$#k d0$#k-$Fk e0therOOOOO/Se(if0

1. "O 4OU REA##4 T!IN/ INSURANCE PO#IC4 CO.ER IN TO"A4DS

SCENARIO IS NOT ESSENTIA#?

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

10. 8!ATDS 4OUR PERCEPTION ABOUT INSURANCE?

/A'K T@&M0

a0 A SAVI'3 T=

-1


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+0 A TA> SAVI'3 *&VIC&

(0 A T= T PT&CT 6UTU&

11. ARE4OU SATISIE" 8IT! T!E PO#IC4?

a0 SATIS6I&* SAVI'3 T=

+0 'T SATIS6I&*

(0 'T &SP'*I'3

12. 8!ATDS T!E RIG!T AGE TO BU4 INSURANCE?

a0 A6T& #< Lrs

+0 A6T& %< Lrs

(0 A6T& G< Lrs

d0 A'LTIM&

-2


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13.WHA 8OU#" 4OU #OO/ OR IN AN INSURANCE COs?

/A'K T@&M0

a0 A TUST&* 'AM&

+0 6I&'*=L S&VIC& N &SP'SIV&'&SS

(0 3* P=A'S

d0 ACC&SSIBI=ITL

14. ARE 4OU SATISIE" 8IT! T!E SER.ICE AGENT?

a0 SATIS6I&* SAVI'3 T=

+0 'T SATIS6I&*

(0 'T &SP'*I'3

1!. "# $#U PA$ A%&S?

L&S '

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