Pragya_complete Study of Agency Module of Reliance Life Insu

8/6/2019 Pragya_complete Study of Agency Module of Reliance Life Insu

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PROJECT REPORT ON

COMPLETE STUDY OF AGENCY

MOUDLE

OF LIFE INSURANCE

A report submitted in partial fulfilment

Of the requirement of MBA Program of

2007-2008 at WISDOM BANASTHALI UNIVERSITY

SUBMITTED BY :-

PRAGYA MAJEJI

MBA II SEM

ROLL NO:- 7726

BANASTHALI UNIVERSITY


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PREFACE

The liberalization of the Indian insurance sector has been the subject of

much heated debate for some years. The policy makers where in the catch

22 situation wherein for one they wanted competition, development and

growth of this insurance sector which is extremely essential for

channeling the investments in to the infrastructure sector. At the other

end the policy makers had the fears that the insurance premia, which are

substantial, would seep out of the country; and wanted to have a cautious

approach of opening for foreign participation in the sector

As one of the rare occurrences the entire debate was put on the back

burner and the IRDA saw the day of the light thanks to the maturing

polity emerging consensus among factions of different political parties.

Though some changes and some restrictive clauses as regards to the

foreign participation were included the IRDA has opened the doors for

the private entry into insurance.

Whether the insurer is old or new, private or public, expanding the market

will present multitude of challenges and opportunities. But the key issues,

possible trends, opportunities and challenges that insurance sector will

have still remains under the realms of the possibilities and speculation.

What is the likely impact of opening up Indias insurance sector?

The large scale of operations, public sector bureaucracies and

cumbersome procedures hampers nationalized insurers. Therefore,

potential private entrants expect to score in the areas of customer service,

speed and flexibility. They point out that their entry will mean better

products and choice for the consumer. The critics counter that the benefitwill be slim, because new players will concentrate on affluent, urban

customers as foreign banks did until recently. This seems to be a logical

strategy. Start-up costs-such as those of setting up a conventional

distribution network-are large and high-end niches offer better returns.

However, the middle-market segment too has great potential. Since

insurance is a volumes game. Therefore, private insurers would be best

served by a middle-market approach, targeting customer segments that

are currently untapped.


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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 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 RELIANCE LIFE INSURANCE

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 marketorganizations 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 RELIANCE LIFE INSURANCE, TATA AIG, and

MAX etc have adequate agents in the market they can capture big

market as compared to the other companies.

Agents are the only way for a company of Insurance sector throughwhich policies and benefits of the company can be explained to the

customer.


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CONTENTS

INTRODUCTION TO THE INDUSTRYINTRODUCTION TO THE COMPANY

CHAIRMAN PROFILE

BOARD OF DIRECTORS

ABOUT RELIANCE

OBJECTIVES

CORE VALUES

PLANS OFFERED

RESEARCH METHODOLOGY

Title

Objective of the Study

Scope of the Study

Significance of the Industry

Significance of the Research

Research Technique

Sampling Methodology

Sampling unit

Sampling Area

Sample Size

Limitations

MARKETING STRATREGIES

FACTS AND FINDINGS

DATA AND INTERPRETATION

RECOMMENDATIONS

CONCLUSION

BIBLIOGRAPHY

ANNEXURE


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TOGETHER WIN THE WORLD

INTRODUCTION TO THE INDUSTRY

THE HISTORY OF INDIAN INSURANCEINDUSTRY

Life Insurance

In 1818 the British established the first insurance company in India inCalcutta, 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 acertain 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.

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


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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.

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 setminimum solvency margins and the Tariff Advisory Committee set up.


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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 THEINSURANCE INDUSTRY IN INDIA

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1September 1956 to spread the message of life insurance in the country

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.

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,

(i) National Insurance Company Limited; (ii) New India Assurance

Company Limited; (iii) Oriental Insurance Company Limited; and (iv)

United India Insurance Company Limited.


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IN ADDITION TO ABOVE STATE INSURERS THEFOLLOWING HAVEBEEN PERMITTED TO ENTER INTO

INSURANCE BUSINESS: -

The introduction of private players in the industry has added to the

colours 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 stepstaken 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 give more competition to LIC in the near future.

LIC market share has decreased from 95% (2002-03) to 82 %( 2004-

05).

1. HDFC Standard Life Insurance Company Ltd.

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.

2. 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, 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


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have a national presence with a network of 57 offices in 37 cities

across India.

3. 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 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 7 bancassurance and 150 corporate agent tie-ups.

4. 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.

5. 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.

Tata AIG Life Insurance Company Ltd.

SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Private Limited

Allianz Bajaj Life Insurance Company Ltd.

Metlife India Insurance Company Pvt. Ltd.

AMP SANMAR Assurance Company Ltd.

Dabur CGU Life Insurance Company Pvt. Ltd.


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6. Reliance Life Insurance Company Limited

Reliance Life Insurance, a part of the Reliance - Anil Dhirubhai

Ambani Group is India's fastest growing life insurance company and

among the top 5 private sector life insurers.Reliance Life Insurancehas a pan India presence and a range of products catering to individual

as well as corporate needs. Reliance Life Insurance has over 700

branches and 1,50,000 agents. It offers 23 products covering savings,protection & investment requirements. Reliance Life Insurance will

endeavour to attain a leadership position in the market over the next

few years, by further expanding and strengthening its distribution

network and offering a diverse array of products to suit the varied and

specific needs of individual customers.

7. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venturecompany, formed from the Tata Group and American International

Group, Inc. (AIG). 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.

8. Reliance General Insurance Company Limited.

9. IFFCO Tokio General Insurance Co. Ltd.


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CHAIRMAN PROFILE

Regarded as one of the foremost corporate leaders of contemporary India,

Anil Dhirubhai Ambani is the Chairman of all listed Group companies,

namely: Reliance Communications, Reliance Capital, Reliance Energy

and Reliance Natural Resources Limited.

He is also Chairman of the Board of Governors of Dhirubhai Ambani

Institute of Information and Communication Technology, Gandhi Nagar,

Gujarat.

Till recently, he also held the post of Vice Chairman and Managing

Director in Reliance Industries Limited (RIL), Indias largest private

sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer,

and was centrally involved in every aspect of the companys management

over the next 22 years.

He is a member of:

Wharton Board of Overseers, The Wharton School, USA

Central Advisory Committee, Central Electricity Regulatory Commission

Board of Governors, Indian Institute of Management, Ahmedabad

Board of Governors Indian Institute of Technology, Kanpur

In June 2004, he was elected for a six-year term as an independent

member of the Rajya Sabha, Upper House of Indias Parliament a

position he chose to resign voluntarily on March 25, 2006.


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BOARD OF DIRECTORS

1) Amitabh Jhunjhunwala, Vice-Chairman

Amitabh Jhunjhunwala, an FCA, has over 23 years of experience in

finance and the capital markets. Amitabh is also the

Director of Reliance Capital Asset Management Limited.

(2) Rajendra Chitale, Independent Director

Rajendra P. Chitale, an eminent Chartered Accountant, is the Managing

Partner of M/s M. P. Chitale & Co. He is a Director on Boards of the

National Stock Exchange of India (NSE). He is also a member of the

Advisory Group on Derivatives and the Takeover Panel, Securities and

Exchange Board of India, as well as the Company Law Advisory

Committee of the Government of India.

(3) Shri C. P. Jain

Shri C.P. Jain, aged 60 years, is the former Chairman andManaging Director of National Thermal Power Corporation(NTPC). Shri Jain has an illustrious career spanning over fourdecades of contribution in the fields of financial management,general management, strategic management and businessleadership.


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ABOUT RELIANCE

Reliance Life Insurance Company Limited is a part of Reliance

Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance

Capital is one of Indias leading private sector financial services

companies, and ranks among the top 3 private sector financial services

and banking companies, in terms of net worth. Reliance Capital has

interests in asset management and mutual funds, stock broking, life

and general insurance, proprietary investments, private equity and

other activities in financial services.

Reliance Capital Limited (RCL) is a Non-Banking Financial

Company (NBFC) registered with the Reserve Bank of India

under section 45-IA of the Reserve Bank of India Act, 1934.

Reliance Capital sees immense potential in the rapidly growing

financial services sector in India and aims to become a

dominant player in this industry and offer fully integrated

financial services.

Reliance Life Insurance is another step forward for Reliance

Capital Limited to offer need based Life Insurance solutions to

individuals and Corporates.


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OBJECTIVES

(1) Make affordable insurance accessible to all

(2) Keep customer as focal point for all operations

(3) Protect policy holders interests

(4) Adopt best international practices in claims, underwriting and policy

servicing

(5) Be the most innovative in product development

(6) Establish Pan India presence

Value propositions

Risk Evaluation: Provide expertise in risk evaluation and risk mitigation

leading to the most appropriate risk transfer solution.

Post sales services: Differentiate on service parameters by ensuring

prompt and correct documentation& fair, transparent, speedy claims

settlement.

New products: Introduce innovative products suited to specific market

segments

Training: Extensive training to the employees involved in underwriting

and claims to ensure availability of a varied experienced and competent

team to cater to the customer needs.

Technology: Use IT as a means to provide for a far superior customer

experience in terms of access, speed and simplicity

Reinsurance backing: Apart from using capacity of the national

reinsurer, establish relationships with the best reinsurers across the world.


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CORE VALUES

Opportunity has a new name Reliance Life Insurance Company

Limited. If you have been waiting for that one job which will enrich

your professional and personal life then you are at the right place. At

Reliance Life Insurance Company Limited ,the mission is to be the best

in every sphere - business results, customer care and employee focus.

Some of the important core values are:

In the area of Human Resources RELIANCE INSURANCE looking

towards fulfilling their core values through:

An open environment enabling free interaction between all levels.

A balanced scorecard approach to strategy deployment and

performance measurement which set goals and measure financial,

customer focused, process related and employee development related

initiatives.

Aggressive Reward & Recognition plans including sales incentives.

Career Development plans that will identify potential and create

avenues for growth.

Intensive training practices for both functional as well ascompetency development.

Knowledge sharing and certification practices.

Planned team building and fun events.

Creating Reliance Life Insurance family including employees,

associates and their families.


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PLANS OFFERED BY

RELIANCE LIFE INSURANCE

INSURANCE PLANS AVAILABLE

1. Products (Individual Plans)

Savings (Endowment)

2. Reliance Endowment Plan(formerly Divya Shree)

3. Reliance Special Endowment Plan

(formerly Subha Shree)

4. Reliance Cash Flow Plan

(formerly Dhana Shree)

5. Reliance Child Plan

(formerly Yuva Shree)

6. Reliance Whole Life Plan

(formerly Nithya Shree)

Pensions

7. Reliance Golden Years Plan

(formerly Bhagya Shree)

Investments

8. Reliance Market Return Plan

(formerly Kanaka Shree)

9. Reliance Automatic Investment Plan

10. Reliance Super InvestAssure Plan

11. Reliance Term Plan

(formerly Raksha Shree)


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Products (Group / Corporate Plans)

12.Risk (Protection)Reliance Group Term Assurance Policy

(formerly Group Term Assurance Policy)

Reliance EDLI Scheme

(formerly EDLI Scheme)

13.Pensionsa. Reliance Group Gratuity Policy

(formerly Group Gratuity Policy)

b. Reliance Group Superannuation Policy

(formerly Group Superannuation Policy)

14. Reliance Money Guarantee Plan


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The 3 plans that are discussed below are

studying in detail.

Reliance Automatic Investment Plan

Key Benefits

Automatic Asset AllocationAsset Allocation according to your risk at a particular

age

Systematic Transfer Plan Helps to average out the cost of units

Exchange OptionOption to move between in and out of specific Reliance

Life ULIP

Other Benefits

Fund options Choice of 7 carefully designed funds

Riders Accident Death & Disability and Term Riders

Tax Benefit Under section 80C and 10(10D)

Unmatched Flexibility

Top UpsCan be used to increase the investment component in

the policy

Partial Withdrawals Provides liquidity in case of need

Switching Options Flexibility to switch between funds

Premium Redirection To change fund configuration for future premiums

\Settlement Options Keep the money invested and receive in installments

Premium payment Options Flexibility to pay premiums in over different modes


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Reliance Super Invest Assure Plan

Regular Premium Unit Linked Insurance Plan

Guaranteed Additions up to 250% of annual premium inaddition to earnings growth (10 th year 50% - 15th year 50%, 20

th year 50%, 25th year 50% and 30th year 50%)

Wide array of 8 fund options including 3 Sectoral Funds and a Pure

Equity Fund

Liquidity through partial withdrawals

Life Cover upto 20 times Annual Premium Depending on Age

Unparalleled investment flexibility through Free Switches, Top-

ups, Systematic Transfer, Premium Redirection and Exchange

Additional Protection with Riders (Reliance Term Life, Reliance

Accidental Death & Total & Permanent Disablement, Reliance

Critical Conditions (25) & Reliance Major Surgical Riders)

Wide Investment Optionswith over 7 funds

Liquidity through PartialWithdrawals

Protection with Life Cover,additional protection withAccident & Health Riders

Rewards in form of GuaranteedAdditions of upto 250% ofannual premium amount

Tax saving u/s 80 C,80D & 10 (10D)

Unmatched flexibilityon your investments

RELIANCE SUPERINVESTASSURE PLAN


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Reliance Money Guarantee Plan

All Basic premiums are guaranteed across all terms

4 fund option with 60% equity exposure

Top-ups available

Rs 40 policy admin charge

Applicable between 30 days to 55 years

Guarantee continues on base policy even after withdrawal from

top-ups


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RESEARCH METHODOLOGY

TITLE:

To determine customer-buying behavior with a focus on market

segmentation for Reliance Life Insurance.

TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with

studying the buying pattern in the insurance industry with a special

focus on Reliance life Insurance. The various segments of the

markets divided in terms of Insurance Needs, Age groups ,

Satisfaction levels etc will also studied.

OBJECTIVE

Objective One

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 for

that particular policies.

To know the most preferred policy.

Objective Two

To determine customers perception towards private insurance

companies and their expectation form private insurance

companies.

To determine the feedback on services provided by any otherinsurance agent.

To study the types of benefits provided by insurance services.

To determine the use of Internet for valuable information and

decision-making process.


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SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent

times.A large number of new players have entered the market and

are vying to gain market share in this rapidly improving market.

The study deals with Reliance in focus and the various segments

that it caters to. The study then goes on to evaluate and analysethe findings so as to present a clear picture of trends in the

Insurance sector.

SIGNIFICANCE OF THE STUDY

SIGNIFICANCE TO THE INDUSTRY :

This is a limited study which takes into consideration theresponses of 100 people. This data can be explorated to take in the

trends across the industry. The significance for the industry lies in

studying these trends that emerge from the study. It is a rapiddly

changing and evolving sector. People are only beginning to wake

up to its vast possibilities. A study like this can attempt to guide

the future of the industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER :

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

the company, the insurance industry and also provide marketing

ways, methods of reliance life insurance.

RESEARCH DESIGN


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NON-PROBABILITY

EXPLORATORY & DISCRIPTIVE EXPERIMENTAL

RESEARCH

The research is primarily both exploratory as well as descriptive

in nature. The sources of information 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.

SAMPLING METHODOLOGY

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 my

sampling came out to be judgmental and convenient

Sampling Unit:

The respondents who were asked to fill out questionnaires are thesampling units. These comprise of employees of MNCs, Govt.

Employees, Self Employed etc.

Sample size:

The sample size was restricted to only 100, which comprised of

mainly peoples from different regions of Indore due to time

constraints.

Sampling Area :

The area of the research was Indore, India


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LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Delhi and does

not necessarily shows a pattern applicable to all of 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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FACTS/FINDINGS

1. 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 forinsurance in India.

2. Company should come up with its branch in Delhi. 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.

3. Since Reliance Life Insurance is leading with several

companies policies it should be easy for them to penetrate into

the market and secure a good position if they pay greaterattention to the service part provided to their customer and

thereby forming a long and trusted relationship.

DATA ANALYSIS AND

INTERPRETATION

1. Respondents of the sample size as per the market

share of the companies.


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COMPANY NAME RespondentLIC 62RLIC 7ICICI PRUDENTIAL 9SBI LIFE 6

OTHERS 12

MARKET SHARE AS PER THE RESPONDANT

65%7%

9%

6%

13%

LIC

RLIC

ICICI PRUDENTIAL

SBI LIFE

OTHERS

Interpretation:-

1. As per the respondents of the survey LIC still maintains its top

position with 65%.

2. Among the private sector companies there is a tough compition

after the LICs position.

3. ICICI PRUDENTIAL still the largest sector InsuranceCompany but SBI LIFE, RLIC, HDFC STANDARDS are hot

on heals of ICICI PRUDENTIAL.

2. Purpose of the ULIP as per the respondents.

BenefitsResponden

t

Future Investment 35


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Cover Uncertanity 40

Tax saving 25

PURPODE OF ULIP AS PER THE RESPONDENTS

35%

40%

25%

Future Investment

Cover Uncertanity

Tax saving

Interpretation:-

1. According to the sample survey 40% of the respondents take

ULIP as per future uncertainty.

2. About 35% of the respondents take ULIP for future

investment/savings.

3. Only 25% of the respondents take ULIP as per tax saving tool.

3. The percentage of people who are covered under

insurance policy.

responses no. of respondents

yes 8

No 92


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People covered under insurance policy

yes

8%

no

92%

yes

no

Interpretation:-

1. Only 8% of the people are covered by insurance according to

the survey.

2. A huge majority of 92% of the people are not covered under

insurance.

4. As per the sample size the respondents behaviortowards the insurance sector.

policy type no. of respondentsLife policy 80non life policy 20both 20none 70


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respondents as per the policy covered and not

life policy

41%

non life policy

11%

both

11%

none

37%life policy

non life policy

both

none

Interpretation:-

1. According to the survey 41% of the respondents take ULIP as

for insurance cover.2. About 37% of the respondents do not believe in ULIP.

3. An equal share is distributed between as per non life policy and

both.

5. Buying behavior of the respondents.

Buying process No. of respondentsDirect companuy 20Through agents 80


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Data show byuing behaviour of people

direct companuy

20%

through agents

80%

direct companuy

through agents

Interpretation:-

1. According to the survey people who buy insurance 80% of

them are approached by the sales person of the company.

2. About 20% of the people approach the company directly.

MARKETING STRATEGIES

Reliance life insurance industry continued to face challenges from low

interest rates and heavy pressure from financial sales channels. To ensurestable and fair operation of the life insurance industry, the securities

oversight institutions implemented an RBC system, enacted liberalization

of the policy dividend system, and began easing of caps on foreign

investment. These steps helped to solidify the foundations for a sound

and impartial life insurance industry.

To respond to a rapidly changing industry environment .Reliance Life

has employed a number of proactive and effective operating strategies,

worked to strengthen its competitiveness and reinforce its marketleadership position. These strategies include developing strategic


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products to satisfy customer requirements, actively opening up new sales

channels, implementing a CRM system to promote diversified marketing

campaigns, and continuing to recruit high-calibre marketing personnel to

the organization to lead the organizational restructuring.

Reliance Life Insurance is committed to a business philosophy based on

placing customers first and emphasizing corporate social responsibility.

We will continue to develop dynamic, innovative services to satisfy ourcustomers. Examples include being the first to implement electronic

signatures in our online insurance policy system, supporting the Cloud

Gate Dance Theatre's outdoor performance for eight years in a row and

sponsoring the 28th annual national children's drawing competition. For

the last six years in a row Because of our outstanding operational

achievements, Reliance have received awards from professional

organizations and magazines as an industry-leading brand.

As interest rates in the financial sector remain low and with theliberalization of policy dividends, all aspects of their business-property,

accident and health insurance-are actively expanding sales channels to

face the challenge of an increasingly competitive market.

Reliance Insurance is focused on an operational strategy based on

professional leadership, innovative service and superior marketing to

develop new prospects, and is actively implementing more forward-

looking and concrete strategies. Reliance Insurance is strengthening

product and sales channel development, and promoting integrated

marketing to boost overall efficiency-in the finance area, we are

strengthening asset management and risk control to improve the

efficiency of capital utilization.


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SWOT ANALYSIS

SWOT expands to Strength, Weakness, Opportunities and

Threats.

STRENGTH WEAKNESS

Highly skilled sales

force (70000)

Array of products.

Higher customer

satisfaction

Communication gap

between differentfunctional area of

company

Complesency

OPPORTUNITIES THREATS


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Technology

enhancement.

Exploring newermarket

Competitors.

Fluctuation in market.

RECOMMENDATIONS

1. 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.

2. Company should come up with its branch in Delhi. 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.

3. Since Reliance Life Insurance is leading with 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 andtrusted relationship.


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4. As seen from the survey that at present 70% of the customer are

having insurance policy out of which 87.5% of the customer are

planning for new investments. So it can be a good potential for the

company and they should make an attempt to trap these customers.

43% of the customer is even ready to go for insurance if a service

provider away from their home is providing it. But intend they

should provide good products and services. The company shouldtry to convince these customers and get them in its favor.

The recruitment of advisors should be quality wise instead of

quantity wise.

There should be flexible working hours to avoid

dissatisfaction among employees.

Insurance Claim should be setteled on time.

The RLIC should start various training programmes on the

regular basis so that employees can able to solve the queriesof customers.

CONCLUSION

An 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 i gathered during Data collection was the immense

awareness and knowledge among people about various 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 impression by the marketing and advertisingcampaigns 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.

In todays corporate and competitive world, I find that insurance sectorhas the maximum growth and potential as compared to the other sectors.


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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 RELIANCE LIFE INSURANCE

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 thecustomer, 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 RELIANCE LIFE

INSURANCE, TATA AIG, and MAX etc have adequate agents in the

market they can capture big market as compared to the other companies

BIBLIOGRAPHY

1) BOOKS/MAGAZINES REFFERED:

STUDY GUIDE- PRINCILES & PRACTICES OF LIFE/

GENERALINSURANCE, by AIMA.

Books published by INSURANCE INSTITUTE OF INDIA

LIFE-INSURANCE, by Mc GILL

INSURANCEWATCH.

MONEYOUTLOOK.

2) WEBSITES REFFERED:

WWW.RELIANCELIFE.CO.IN


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WWW.INSURANCE.IND.COM3.REPORTS/ARTICLES

ANNEXURE

QUESTIONNAIRE

Dear Sir/Madam

I am a student of Banasthali UNIVERSITY. I am undertaking

a survey as a part of my Management Training course.

1. ARE YOU EMPLOYED?

YES/NO If YES, only then proceed

2. HOW MUCH IS YOUR EARNING FOR THE MONTH ?

a. Below 10000

b. 10000-20000c. Above 20000


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3. DO YOU HAVE ANY INSURANCE POLICY?

YES/NO

4. HOW MUCH IS YOUR SAVING FOR THE MONTH ?

a. Below 2000

b. 2000-4000

c. 4000-6000

d. Above 6000

5. YOUR SAVING IS IN WHICH MEDIUM ?

a. Government Scheme (Post Office)

b. Saving in Bank

c. Insurance

d. Others / money market

6. WHICH INSURANCE POLICY DO YOU HAVE?

LIFENON-LIFEBOTH

7. WHICH COS INSURANCE POLICY YOU PREFER THE

MOST? (RANK THEM)

a. LIC

b. ICICIPRUDENTIAL

c. SBI LIFE INSURANCE

d. ING VYSYA LIFE

e. RELIANCE LIFE INSURANCE

f. TATA AIG LIFE

g. ANY OTHER________( Specify)

8. FOR HOW MANY YEARS DO YOU HAVE INSURANCE

POLICY? (Please Tick)

a.


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Thank you for investing your valuable time in giving us your

inputs.

___________________________________________________

____

Please give us the following details

Name :

Phone / Mobile Number :

Calculation Sheet


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Reliance life insurance co. ltd.

A Benefit Illustration of market return plan

Term= 20

Return= 30.0%

Year Age Premium

Top

Ups

WithdrawalsDeathBenefit

CHGS Mortality Year End growth

1 30 5,000 100,000 500 159 5,643

2 31 5,000 100,000 250 150 13,316

3 32 5,000 100,000 250 137 23,308

4 33 100,000 0 131 30,130

5 34 100,000 0 124 39,008

6 35 100,000 0 112 50,564

7 36 100,000 0 96 65,609

8 37 100,000 0 71 85,200

9 38 100,000 0 32 110,718

10 39 100,000 0 0 143,933

11 40 100,000 0 0 187,113

12 41 100,000 0 0 243,247

13 42 100,000 0 0 316,221

14 43 100,000 0 0 411,087

15 44 100,000 0 0 534,413

16 45 100,000 0 0 694,738

17 46 100,000 0 0 903,159

18 47 100,000 0 0 1,174,106

19 48 100,000 0 0 1,526,338

20 49 100,000 0 0 1,984,240

Date post:	07-Apr-2018
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Pragya_complete Study of Agency Module of Reliance Life Insu

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