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TABLE OF CONTENTS

S.NO TOPIC Page No.

1 Chapter 1: Introduction of the topic 8-17

2 Chapter 2: Company Profile 20-28

3 Chapter 3: Literature Review 30-33

4 Chapter4: Research methodology 35-36

5 Chapter5: Data Analysis 38-48

6 Chapter6: Findings & conclusion 50-52

7 Chapter8: Suggestions and Recommendations 54

8 Bibliography

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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 FMCG sector has 12-15% growth rate. This growth potential attracts
me to enter in this sector and HDFC 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 RELIANCE LIFE 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
INTRODUCTION

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INTRODUCTION

HISTORY OF INSURANCE

In 1818 the British established the first insurance company in India in Calcutta, the Oriental
Life Insurance Company. First attempts at regulation of the industry were made with the
introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments
to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in
the Act were the power given to the Government to collect statistical information about the
insured and the high level of protection the Act gave to the public through regulation and
control. When the Act was changed in 1950, this meant far reaching changes in the
industry. The extra requirements included a statutory requirement of a certain level of
equity capital, a ceiling on share holdings in such companies to prevent dominant control (to
protect the public from any adversarial policies from one single party), stricter control on
investments and, generally, much tighter control. In 1956, the market contained 154 Indian
and 16 foreign life insurance companies. Business was heavily concentrated in urban areas
and targeted the higher echelons of society. Unethical practices adopted by some of the
players against the interests of the consumers then led the Indian government to nationalize
the industry. In September 1956, nationalization was completed, merging all these
companies into the so-called Life Insurance Corporation (LIC). It was felt that
nationalization has lent the industry fairness, solidity, growth and reach.

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DEFINITION OF INSURANCE

Insurance is a contract between two parties where by one party is called insurer undertakes
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 a
tool 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, known as
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.

There 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 your
situation. 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
best suited for your situation. You should research the market as well as the net, to look for
the best insurance companies, and furthermore, the most suitable type of insurance that they
offer.
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.

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Health Care Insurance
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 worry for
the huge payments at the last minute.
A health insurance can cover all from a routine immunization to a major illness.

Life Insurance
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 the pain 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, and
occupation information of the applicant, in addition to the total benefits to be paid to him for
his policy.

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Home Insurance
Real estate property and hard assets are subject to accidental risks like theft, destruction due
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.

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.

Travel Insurance
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, cruise
etc.

Auto insurance
Any vehicle on road, no matter how safe its driver is, is bound to meet with an accident or
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 other hand,
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

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Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses

1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public

1956: The market contained 154 Indian and 16 foreign life insurance companies

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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 to spread the
message of life insurance in the country and mobilize 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 Life Insurance Company Ltd

HDFC Life Insurance Company Ltd. Is one of Indias leading private life insurance
companies, which offers a range of individual and group insurance solution. 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 over 3,40,000 lives have been covered through our group
business tie-ups.

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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 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 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 banc assurance and 150
corporate agent tie-ups.

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 the infrastructure sector,
which can look forward to long term funding being available. In an under-insured economy,
newer channels of distribution have to be utilized to intensify the reach of insurance
both in urban and rural markets. This will create huge employment opportunities not only
within insurance companies but also as agents and consultants of insurance companies.

Marketing Mix Policies

Different companies can choose to position themselves differently and hence the Marketing
Mix is different. However, there are certain common characteristics that one can cull out
from the possible strategies that companies adopt .

Product:
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 providing insurance
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 may differentiate
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 companies like
HDFC 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
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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 all
of these.

Price:
Price is a relevant differentiator only in two segments - pure term insurance and in pure
annuities. Here too, service delivery and financial strength will need to be present at a
minimum 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 market needs to
be developed. Greater awareness of insurance and the need to have it as a protection tool
rather than as a tax planning measure needs to be appreciated by the Indian people. Various
communication tools including advertising, direct marketing and road shows contribute to all
this and different companies take different approaches on these.

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Process:
Cashless settlement: One of the most defining and customer-friendly changes that weve
seen 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 are entities 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 insurance claims.

Lower premiums: The spirit of competition and the broadening of the risk
experience of insurance companies have contributed to a fall in premiums over the years.
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- ter basis is this factor. No matter what distribution strategy a company adopts,
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.

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

2. To know the perception of consumer about life insurance.

3. To do the Swot analysis of HDFC standard life insurance.

4. To know the different products offered by HDFC standard life insurance.

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CHAPTER 2
COMPANY PROFILE

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COMPANY PROFILE

HISTORY

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions. It is a joint
venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's
leading housing finance institution and a Group Company of the Standard Life, UK. HDFC
as on December 31, 2007 holds 72.38 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. HDFC Standard 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 crore; it has 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 policies in force and Our gross premium income, for
the year ending March 31, 2010 stood at Rs. 7005 crores and new business premium income
stood at Rs. 2,561 crores.

Their key strengths lie on their financial expertise range of solution as mentioned earlier and
their impeccable track record thus far. Their trained sales force state of the art technology and
appropriate system and processes are all considered in order to achieve the highest possible
standard in customer service.

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

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 finance
company 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 of
India 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 catch all
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 Insurance
premium online. You can buy HDFC Standard Life Insurance Policy online. Here is a list of
policies and products offer by HDFC Standard Life Insurance

NEW LOGO
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Life insurer HDFC Standard Life has revamped the brand to differentiate itself in a
crowded market and build a strong connection with customers
HDFC Standard Life, the life insurance venture between HDFC and Standard Life of
the United Kingdom, has given itself a new identity. Thus, it has shortened its name
to HDFC Life. Theres a new logo which looks like a picture frame. The house
colours have changed from yellow and green to blue and red HDFC colours. A
new campaign created by Leo Burnett and directed by E Niwas to announce the
makeover is ready. HDFC Life, which has completed ten years of existence and is
ranked third amongst the 22 private life insurers in the country, hopes to gain market
share rapidly in the days to come. By October next year, says HDFC Life
Managing Director & CEO Amitabh Chaudhary, We will move up at least one
position, if not two.

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BY THE NUMBERS
Total WRP
Insurer Market share
Rs crore Rank YOY growth%
in %
ICICI Prudential 2,827 20.6 1 41
SBI Life 1,797 13.1 2 -15
HDFC Life 1,580 11.5 3 58
Reliance Life 1,258 9.2 4 11
Bajaj Allianz 1,152 8.4 5 -11
Birla Sunlife 1,044 7.6 6 -3
Max New York 870 6.3 7 15
Tata AIG 519 3.8 8 5
Kotak OM 468 3.4 9 32
Canara HSBC 350 2.5 10 29
Others 1,861 13.6 - 16
Private total 13,726 39.9 - 13
LIC 20,694 60.1 - 113
Total industry 34,420 - - 58
WRP: Weighted received premium, that is, the sum of first year premium and 10 per cent weighted single premiums
and single premium top-ups Figures: H1, 2010-11

PLANS FOR HDFC LIFE INSURANCE

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HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping this in
mind, we have a varied range of Products that you can choose from to suit all your needs.
These will help secure your future as well as the future of your family.

Protection Plans

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

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

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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

Group Unit Linked Plan - Superannuation

Group Unit Linked Plan - Leave Encashment

HEAD OFFICE

Trade Star 2nd floor,

A Wing Junction of Kondivita and M.V,

Road Andheri-Kurla Road Andheri (East),


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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 life insurance company is Mr. Amitabh
Choudhary.

AWARDS AND ACHIEVEMENTS:

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 Insurance Company'
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

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Range of solution

HDFC Standard have a range of individual and group solution , which can easily customized
to specific needs . and its group solution is designed to offer the complete flexibility combine
with a low charge structure.

Track record so far


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 the
standards in the industry'.
Our Values
Values that we observe while we work.
Integrity
Innovation
Customer centric
People Care One for all and all for ones

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 passed the S.S.C.

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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) with
requisite 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 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 insurance
corporation is to conduct a personal interview of an applicant by the Branch
Manager.

Interview with Regional Head: -

After clearing the project 40 interview, the applicant should be interviewed by the
Regional Head, who will check his/her performance.

Negotiation: -

After clearing the interview with Regional Head, the negotiation will be provided 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 be appointed /selected as a

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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 for training and
development is

Determined 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


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

SWOT ANALYSIS

SWOT analysis is the analysis of the internal and external factors, which have impact on the
survival of any organization.

STRENGTHs:
Strong brand name
a large distribution network
customer centric approach execution in excellence
team work
good infrastructure

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WEAKNESSES:

Frequent job rotation by employees


less number of advertisement
hidden charges

OPPORTUNITY:

Only 25% of insurable people have any insurance


can introduce innovative products offering a right mix of flexibility / risk / return
share of fdi is going to raise by 26% to 49%.

THREATS:

People prefer short investment rather than insurance.

Other private insurance companies

CHAPTER 3
LITERATURE
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REVIEW

LITERATURE REVIEW

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

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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 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 the
financial 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, with good
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
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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.

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 motor accident. 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

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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.

CHAPTER 4
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RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY
The above title is self-explanatory. The study deals mainly with studying the buying pattern
in the insurance industry with a special focus on HDFC Life Insurance. The various segments
of the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels etc will
also studied.

Sampling Technique:
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

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Primary data: -

For the survey a sample of 150 people were considered. Out of these 70 of them are
personally 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 of different
operators, different magazines, newspapers and libraries.

Sample size: -

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 for that
particular policies.

To determine customers perception towards private insurance companies and their


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 and decision-making
process.

SCOPE OF THE STUDY

32
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 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.

SIGNIFICANCE FOR THE RESEARCHER

To facilitate and provide all the useful information of the study, the company, the insurance
industry and also provide marketing ways, methods of HDF Life insurance.

CHAPTER 5
33
DATA ANALYSIS

DATA ANALYSIS

Market Research for the project was conducted in Delhi. It is a descriptive type of research
and sampling for responses is simple random sampling. The sample size for 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 were keen
in taking on line training as compared to housewives and retired persons.

Analysis Made By Responses:

34
1. 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

Table No1.1: Age Group of the Customers

AGE GROUP

11%
5% 20-29
35%
30-39
18% 40-49
50-59
Above 60

31%

INTERPRETATION:

35
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 to above 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 are investing to get returns more, where
as people belongs to age group 50-59 are investing for saving purpose in their retirement

2. What Are The Occupation Of Customers?

TYPES OF OCCUPATION PERCENTAGE


SERVICE 46
BUSINESS 28
SELF EMPLOYED 12
RETIRED 14
TOTAL 100

Table No1.2: occupation of customers

36
OCCUPATION

14%

SERVICE
12%
46% BUSINESS
SELF EMPLOYED
RETIRED

28%

. 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.

3. Data gives preference of respondents of insurance companies?

COMPANY NAME IN PERCENTAGE


LIC 30
HDFC 42
ICICI Pru 10
SBI Life 12
RELIANCE life 6
TOTAL 100

Table No1.3: occupation of customers

37
IN PERCENTAGE

6%
12%
30%
LIC
HDFC
10%
ICICI Pru
SBI Life
RELIANCE life

42%

INTERPRETATION:

42% of the people contacted prefer HDFC LIFE policy to any other and therefore it is ranked
no.1 by that percent of respondents.
4. DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS?

BENEFITS IN PERCENTAGE

Future uncertainity 60

Tax deduction 20

Future investment 20

TOTAL 100

Table No1.4: occupation of customers

38
IN PERCENTAGE

20%

Future uncertainity
Tax deduction
20% 60% Future investment

INTERPRETATION:

60% of the respondents believe that covering future uncertainty is the biggest benefit of an
insurance policy Whereas, 20% and 20% of them believe that the other benefits are Tax
deduction and future investments respectively

5. 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
Company Reputation 12
TOTAL 100

Table No1.5: occupation of customers

39
IN PERCENTAGE

12%
20% Money Back
guarantee
Large Risk
Coverance
30% Low Premium

Company
38% Reputation

INTERPRETATION:

Majority of the respondent (38%) found larger risk coverance as the most attracted feature of
the all.

6. Which type of policy does respondent have?

POLICY TYPE IN PERCENTAGE


Life Policy 52
Non Life Policy 20
Both 28
TOTAL 100

Table No1.6: occupation of customers

40
TYPE OF POLICY

28%

Life Policy
52% Non Life Policy
Both

20%

INTERPRETATION:

52% of the respondents have Life Insurance Policy while 28% have both and 20% of the
respondents dont have Life Insurance Policy

7. Have you heard about HDFC Standard Life Insurance Policy?

OPTIONS IN PERCENTAGE

Yes 90

No 10

TOTAL 100

Table No1.7: occupation of customers

41
HDFC STANDARD LIFE INSURANCE

10%

Yes
No

90%

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.

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

SATISFACTION IN PERCENTAGE

Satisfied 60

Not Satisfied 30

Not Responding 10

TOTAL 100

42
Table No1.8: occupation of customers

SATISFACTION OF RESPONDENTS

10%

Satisfied
30% Not Satisfied
60% Not Responding

INTERPRETATION:

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

9. 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

43
Table No1.9: occupation of customers

INVESTMENT IN MARKET

14%

Share Market
15%
48% Mutual Fund
Insurance
Others

23%

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 and mutual
fund respectively.

10. Data shows the buying process of respondents?

BUYING PROCESS IN PERCENTAGE

Customer Approach insurance Company 45

Insurance Company Approach Customer 55

TOTAL 100

44
Table No1.7: occupation of customers

BUYING PROCESS

Customer
Approach
insurance
45% Company
55% Insurance
Company
Approach
Customer

INTERPRETATION:

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

45
CHAPTER 6
FINDINGS &
CONCLUSION

FINDINGS

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 LIFE INSURANCE LTD 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 and

46
trusted relationship.
It is also find that HDFC Standard life insurance traditional plans are very useful for a normal
person and the children plan is one of the most popular products of the company.
As seen from the survey mostly the young generation is most preferring to buy the insurance
policy to save their future uncertainty and about 52% of the respondents prefer to 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.

CONCLUSION

Our exhaustive research in the field of Life Insurance threw up some interesting 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 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 advertising campaigns of
insurance companies. A high penetration of print, radio and Television ad campaigns over
the years is beginning to have its impact now

According to findings, it is depicted that this is the sector, which has most business
47
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 new
entrants in the insurance industry. So private companies should use different channels to
establish them and ensure their presence in the minds of customers

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.
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 is renowned for
transparency and high corporate governance standard

LIMITATION

The research is confined to a certain parts of INDIA and does not necessarily shows a
pattern applicable to all of Country Some respondents were reluctant to divulge personal
information which can affect the validity of all responses.

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.

The opinion expressed by the respondents may be biased. The attitude of the research might
be biased. Another limitation is that there is lack of time. If more time is given then studies
48
will be more effective.

CHAPTER 7
49
SUGGESTIONS &
RECOMMENDATION

Suggestion and Recommendation

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 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 and trusted relationship

50
Company must provide training to their agents and executives so that they can satisfy
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 could target
middle class people and generate good cash flow for further growth. Changes in the policies
should be communicated to the customers at the earliest.

BIBLIOGRAPHY

WEBSITES :
1. www.google.com
2. www.mbaexperts.com
3. www.hdfclife.com

BOOKS:
1. Gupta, C.B, marketing management, 5th edition.
2. Beri, G.C, marketing research, 3rd edition.

51
ANNEXURE

QUESTIONNAIRE

QUES 1- PERSONAL DETAILS

Name

Age

Salary

52
QUES 2 - ARE YOU EMPLOYED?

YES

NO

QUES 3- DO YOU HAVE ANY INSURANCE POLICY?

YES

NO

QUES 4 - WHICH INSURANCE POLICY DO YOU HAVE?

YES

NO

QUES 5.- WHICH COS INSURANCE POLICY YOU PREFER THE MOST

LIC

ICICI Prudential life

Reliance life insurance

Max New York life


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Bajaj Allianz

QUES 6 - WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER?

COVER FUTURE UNCERTAINITY

COVER FUTURE UNCERTAINITY

FUTURE INVESTMENT

QUES 7- ARE YOU SATISFIED WITH THE POLICY?

SATISFIED SAVING TOOL

NOT SATISFIED

NOT RESPONDING

QUES 8- WHICH IS THE BEST FORM OF INVESTMENTS?

FIXED ASSETS

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BANK DEPOSITS

SECURITIES, i.e. Bonds, MFs

SHARES

INSURANCE

QUES 9- WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs

A TRUSTED NAME

FRIENDLY SERVICE & RESPONSIVENESS

GOOD PLANS

ACCESSIBILITY

QUES 10- YOURE SUGGESTION (TO IMPROVE INSURANCE SECTOR)

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