ON EXECUTIVE TRANING AT HDFC STANDARD LIFE

INSURANCE

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

SUBMITTED BY:
ALEX

:
 TABLE OF CONTENTS

Part-A……………………………………………………………. page no.

Declaration………………………………………………………………..4
Acknowledgement……………………………………………………….5
Introduction of HDFC STANDARD LIFE INSURANCE CO LTD…..6

CHAPTER
page no.
 Marketing…………………………....…………………………………7

 Marketing objectives of HDFC STANDARD LIFE…………….....7

• Objectives

• Key growth parameter

• Vision statement

 Revenue of past 3 years of HDFC STANDARD LIFE…………...8

 Market share of HDFC STANDARD LIFE………………………....9

 Sales realization of HDFC STANDARD LIFE……………………..10

 Cost analysis ………………………………………………………….11

 Marketing plan OF HDFC STANDARD LIFE………

…..........11
• Marketing mix in insurance industry (7 P’s)
 • Introduction
• Product………………………………………………………12
• Price………………………………………………………….13
• Place………………………………………………………….14

• Promotion……………………………………………………15
• People………………………………………………………...16
• Process……………………………………………………….17
• Physical distribution……………………………………….17

 Market analysis
• Market segmentation

 FIVE C’s
• The company (HDFC STANDARD LIFE)
• The customer
• The competitors
• The collaborators
• The context

 Analysis & interpretation using spss

 Conclusion
 Questionnaire

DECLARATION

I ALEX hereby declare that this “INTERIM REPORT-II“ is my

work, carried out under the guidance of my faculty guide Mr.
V.V. Rao and my company guide
Mr. KUMAR. This report neither full nor in part has ever been
submitted for award of any other degree of either this
university or any other university.

ALex

ACKNOWLEDGEMENT

This project has greatly been a collaborative effort. I

take this opportunity to thank all who have helped in the
preparation and successful completion of this interim-II
project work.
 It gives me immense pleasure to express my
deep sense of gratitude to Mr.V.V RAO sir Faculty Guide
INC ASIM’S, for his valuable guidance and consistent
supervision throughout the course of my Report.

I express my profound gratitude to my Company

Guide Mr.KUMAR sir for his valuable guidance in completing
the project successfully.

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

INTRODUCTION

 HDFC Incorporated in 1977 with a share capital of Rs 10 Crores,

 HDFC Standard Life insurance is the oldest life insurance company in the
world

 It is the largest insurer in the UK and is the 28th largest company in the world.
 It is a joint venture between Housing Development Finance Corporation
Limited (HDFC), India’s leading housing finance institution and Standard Life
plc, the leading provider of financial services in the United Kingdom.

 HDFC has since emerged as the largest residential mortgage finance

institution in the country

 .In India, the company is marketing life insurance products and unit linked
investment plans.

 HDFC operates through almost 450 locations throughout the country with its
corporate head quarters in Mumbai, India

 HDFC Standard Life, one of India’s leading private life insurance companies,
has revamped its corporate website ((www.hdfcinsurance.com) in line with its
communication philosophy.

MARKETING: Marketing deals with product. A product can be a

good, service or an idea. Here as HDFC STANDARD LIFE is an
insurance company so the product here is ‘SERVICE’.

MARKETING OBJECTIVES OF HDFC STANDARD LIFE:

The following are the marketing objectives of HDFC STANDARD
LIFE

 Focus on the productivity of each consultant, corporate or

individual, while stressing on the quality of proposals
 Quick roll out of Products
 Efficiency of Operations
 Meet Social & Rural sector obligations
 Increase/improvement in all the key growth parameters

KEY GROWTH PARAMETERS:

 Number of Financial Consultants

 Number of Policies
 Gross Premium
 Productivity - policies per month per consultant
 Physical points of presence

VISION STATEMENT:

'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'.
“The most obvious choice for all”

Revenue of past 3 years of HDFC STANDARD LIFE

HDFC Standard Life is a coalition company between HDFC and Standard
Life Plc.HDFC Standard Life insurance’s revenue has come down from Rs
33.07 crore in the financial year 2007-08 to Rs 27.77 crore in financial year
2008-09The company produced sum premium revenue of Rs.5,564.69 crore
as opposed to Rs.4,858.56 crore last year, posting a y-on-y increase of 15%.
Its revitalization premium also witnessed an increase of 34% for the
economic year as opposed to Rs.2,173.19 crore in the last year.
The company’s EPI in regards to retail business grew by 5%.
HDFC Standard Life monitors its latest business premium due to EPI, which
is estimated by giving only a 10% value to a sole premium strategy.
The economic downturn has hit the insurance industry. HDFC Standard
Life, one of the largest private insurers in the country, has seen mark-to-
market losses of Rs 1,800 crore in their revenue account
PARTICULARS MAR 2008 MAR 2007 MAR 2006
Revenue Rs 27.77 Rs. 33.07 Rs. 25.75
crore Crore Crore

YEARS

2008.5

2008

2007.5

2007
YEARS
2006.5

2006

2005.5

2005
Rs 27.77 Rs. 33.07 Rs. 25.75

Analysis: Due to the economic downturn has hit the insurance industry.
HDFC Standard Life, one of the largest private insurers in the country, has
seen mark-to-market losses of Rs 1,800 crore in their revenue account
during the year.

Market share :
In India there are total 22 insurance companies are existing and the name of few
companies and its market shares are listed below:
 NAME OF INSURANCE MARKET SHARE
COMPANIES` in %
LIC 72.15
HDFC Standard 3.88
ICICI 5.91
Birla Sun life 2.6
Bajaj allianz 1.62
Tata AIG 1.5
SBI 1.19
AVIVA 1.8
MAX Newyork life 2.4
OM KOTAK 1.9
ING vysya 1.2
AMP SANWAR 1
METLIFE 1.4
OTHERS 1.45

Analysis:
The above graph depicts that 72.15 percentage of the market share is acquired by LIC & it is a
public Ltd company and 3.88% is acquired by HDFC STANDARD LIFE and 5.91% by ICICI
& rest of the market share is acquired by all other insurance companies in India.

Sales of HDFC STANDARD LIFE

The HDFC STANDARD LIFE generated Total Premium Income of Rs.
5564.69 crores in FY2008-09 registering a year-on-year growth of
15%. The growth was primarily driven by the company’s structured
 sales processes based on customer needs and their assessments, wide
range of product portfolio and diverse distribution network.

“The financial year 2008-09 was a defining year with the unfolding of
several unexpected events - sharp correction in financial markets and
a spread of recessionary trends. These events also had an impact on
the Indian life insurance industry. HDFC’s new policies issued grew by
16% over the last year. However, given the uncertainty in the overall
scenario, customers have reduced their annual premium commitment
on new policies. At the same time, existing policies continued to be in
force reflected in our renewal premium, which posted a healthy growth
of 34%.”

PARTICULARS MAR 2008 MAR 2007 MAR 2006 MAR 2005 MAR 2004
Net Sales 39.95 36.97 25.43 10.81 0
Growth (%)
Net Sales 81763.46 58425.12 42655.38 34006.04 30689.30

years

2009

2008
2007

2006
years
2005

2004
2003

2002
81763.46 58425.12 42655.38 34006.04 30689.30

Analysis: The sales of HDFC standard life is increasing year by year due to
the company’s structured sales processes based on customer needs and their
assessments, wide range of product portfolio and diverse distribution
network.

MARKETING PLAN OF HDFC STANDARD LIFE:

The marketing plan specify the details of the strategies adopted to achieve
the objectives of the HDFC STANDARD LIFE .The strategies deals with
marketing mix i.e., seven P’s

Marketing Mix in Insurance Industry (7 P's)

INTRODUCTION:

 Insurance is a financial service for collecting the savings of the public

and providing them with risk coverage.

 The main function of Insurance is to provide protection against the

possible chances of generating losses.

 It eliminates worries and miseries of losses by destruction of property

and death.

 It also provides capital to the society as the funds accumulated are

invested in productive heads

 Insurance comes under the service sector and while marketing this
service, due care is to be taken in quality product and customer
satisfaction.

 While marketing the services, it is also pertinent that they think about
the innovative promotional measures.

The Insurance business deals in selling services and therefore due weightage
in the formation of marketing mix for the Insurance business is needed
The marketing mix includes sub-mixes of the 7 P’s of marketing i.e.
• Product, Price,
• place, promotion,
• people, process &
• Physical Distribution.
The above mentioned 7 P’s can be used for marketing of Insurance products,
in the following manner:

1. PRODUCT:

An Insurance company sells services and therefore services are their product.
HDFC standard life insurance company faces a bigger challenge due to the unique nature
of services provided by them.

FUNCTIONALITY: HDFC standard life is one of the leading company offering

insurance services to the users. Apart from offering life insurance policies, they also offer
underwriting and consulting services along with it the assistance and advice of the agent,
the prestige of the company and the facilities of claims and compensation.
.
STRATEGIES: HDFC standard life uses various strategies to market their services
They try to offer same standardized services to all their customers e.g., a courier services
They customize the service according to the needs of the customer: e.g., doctors,
consultants, etc.

BRAND: HDFC standard life also leverages on its brand name gained over the years.
HDFC’s brand name helps in differentiating its service and expressing brands
superiority over rival brands.

It is natural that the customers expect a reasonable return for their investment and the
insurance company wants to maximize their profitability.
Hence, while deciding the product portfolio or the product-mix, the services or the
schemes should be motivational.

SERVICE (PRODUCT): HDFC Standard Life Product portfolio comprises solutions,

which meet various customer needs such as Protection, Pension, Savings, Investment,
and Health.
The company currently has 25 retail and 6 group products in its portfolio, along with five
optional rider benefits catering to the savings, investment, protection and retirement
needs of customers.
HDFC Standard Life bouquet of children’s plans includes:
Children’s Plan
Unit Linked Young Star II
Unit Linked Young Star plus II
Unit Linked Young Star Champion

WARRANTY: These plans offer multiple advantages for the child, such as tax benefits
and long-term financial security. The plan is an affordable means to ensure a child’s
security and, apart from the parents, it can also be chosen by the grand parents or other
relatives of the child. However, its greatest strength is that company continues to make
savings on your behalf, in your absence. The savings can be directed 100% towards your
policy or 50% towards your policy and 50% will be available for the beneficiary’s
regular use until the original Maturity Date. The development of flexible products to suit
individual requirements is what will differentiate the HDFC standard life from the other
also-rans.
2. PRICING:
In the HDFC standard life insurance the pricing decisions are concerned with:
i) The premium charged against the policies,
ii) Interest charged for defaulting the payment of premium and credit facility, and
iii) Commission charged for underwriting and consultancy activities.

With a view of influencing the target market or prospects the formulation of pricing
strategy becomes significant. In a developing country like India where the disposable
income in the hands of prospects is low, the pricing decision also governs the
transformation of potential policyholders into actual policyholders.

The strategies may be high or low pricing keeping in view the level or standard of
customers or the policyholders. The pricing in HDFC insurance is in the form of
premium rates.

The three main factors used for determining the premium rates under a life insurance
plan are mortality, expense and interest. The premium rates are revised if there are any
significant changes in any of these factors.

• Mortality (deaths in a particular area):

When deciding upon the pricing strategy the average rate of mortality is one of the main
considerations. The Mortality Charge will apply on the Sum at Risk (SAR = Sum Assured
less the Fund Value pertaining to regular premiums). It will be deducted by monthly
cancellation of units from the accumulation unit account. The Mortality Charge shall
remain guaranteed throughout the policy term.

• Expenses:
The cost of processing, commission to agents, reinsurance companies as well as
registration are all incorporated into the cost of installments and premium sum and forms
the integral part of the pricing strategy.

• Interest:
The rate of interest is one of the major factors which determines people’s willingness to
invest in insurance. People would not be willing to put their funds to invest in insurance
business if the interest rates provided by the banks or other financial instruments are
much greater than the perceived returns from the insurance premiums.

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 acceptable level for price to be a relevant differentiator.
In case of savings oriented products, long term returns generated will be more relevant
than just the price of the product.
A focus on generating good investment performance and keeping a tight control on costs
will 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.
3. PLACE:

The Place Mix has two important dimension/ facets --

i) HDFC STANDARD LIFE Managing the insurance personnel, and
ii) Locating a branch i.e., No. of branch of HDFC located at different places

HDFC STANDARD LIFE MANAGING THE INSURANCE PERSONNEL:

Strength of Financial Consultants reported year-on-year growth of 43% to over
2,07,000 in FY2008-09 compared to 1,45,000 last financial year
The management of agents and insurance personnel is found significant with the
viewpoint of maintaining the norms for offering the services.
This is also to process the services to the end user in such a way that a gap between the
services- promised and services – offered is bridged over.
In a majority of the service generating organizations, such a gap is found existent which
has been instrumental in making worse the image problem.

The transformation of potential policyholders to the actual policyholders is a difficult

task that depends upon the professional excellence of the personnel.
The agents and the rural career agents acting as a link, lack professionalism. The front-
line staff and the branch managers also are found not assigning due weightage to the
degeneration process.
The insurance personnel if not managed properly would make all efforts insensitive.
Even if the policy makers make provision for the quality up gradation, the promised
services hardly reach to the end users.

LOCATING A BRANCH:

HDFC operates through almost 450 locations throughout the country with its corporate
head quarters in Mumbai, India.
HDFC also has an International Office in Dubai, UAE with service associates in Kuwait,
Oman and Qatar. HDFC is the largest housing company in India for the last 27 years.

While locating branches, the branch manager needs to consider a number of factors, such
as smooth accessibility, availability of infrastructural facilities and the management of
branch offices and premises. In addition it is also significant to provide safety measures
and also factors like office furnishing, civic amenities and facilities, parking facilities and
interior office decoration should be given proper attention.

Thus the place management of insurance branch offices needs a new vision, distinct
approach and an innovative style. This is essential to make the work place conducive,
attractive and proactive for the generation of efficiency among employees. The branch
managers need professional excellence to make place decisions productive.

4. PROMOTION:
The insurance services depend on effective promotional measures.
In a country like India, the rate of illiteracy is very high and the rural economy has dominance in
the national economy.

It is essential to have both personal and impersonal promotion strategies.

In promoting insurance business, the agents and the rural career agents play an important role.
Due attention should be given in selecting the promotional tools for agents and rural career
agents and even for the branch managers and front line staff. They also have to be given proper
training in order to create impulse buying.

HDFC standard life insurance follows personal and impersonal promotion strategies like

-- Advertising and Publicity, (sar utha ke jiyo)

-- Organization of conferences and seminar,
-- Competitions like 'Spell Bee-India Spells 2009’
-- Exhibitions,
-- Participation in fairs and festivals,
-- Rural wall paintings and
-- Publicity drive through the mobile
-- Publicity van units

That would be effective in creating the impulse buying and the rural prospects would be easily
transformed into actual policyholders.

To maintain the level of demand for product and to be activated considerably in the market
HDFC has developed its market by using the above promotion strategies to make a Greater
awareness of insurance and the need to have it as a protection tool rather than as a tax planning
measure.

5. PEOPLE:

Customer service lies at the heart of modern service industries.

HDFC standard life understands the customers better which allows them to design
appropriate products.

Customer Profile: In HDFC Standard Life customer profiles are maintained through
customer data base. The customer is eligible for the policy according to his age and his
/her investment option. Minimum age is18 and maximum age is 65 years are to be
considered.

Customer Segmentation: Here segmenting can be done according to the age and Life
stages of the customer

Customer Buying Patterns: Customers buy according to their convince through online,
or through the sales person. If the customer is well educated and he can manage the
things through online he will register Himself through online.

HDFC standard life being a service industry which involves a high level of people
interaction, it is very important to use following resource efficiently in order to satisfy
customers.
--Training, development and strong relationships with intermediaries are the key areas to
be kept under consideration.
--Training the employees,
-- Use of IT for efficiency, both at the staff and agent level, is one of the important areas
to look into.

Customers are likely to be loyal to organizations that serve them well - from the way, in
which a telephone query is handled, to direct face-to-face interactions. Although the 'have
a nice day' approach is a bit corny, it is certainly better than a couldn't care less approach
to customer relations.
Call centre staff and customer interfacing personnel are the front line troops of HDFC’s
and therefore need to be thoroughly familiar with good customer relation's practice.

6. PROCESS:

The process used by HDFC standard life insurance is very customer friendly.
The speed and accuracy of payment is of great importance.
The processing method used is easy and convenient to the customers.
Installment schemes are streamlined to cater to the ever growing demands of the
customers.
IT & Data Warehousing used by them smoothen the process flow.

IT helps in servicing large no. of customers efficiently and brings down overheads.
Technology can either complement or supplement the channels of distribution cost
effectively. It can also help to improve customer service levels. The use of data
warehousing management and mining will help to find out the profitability and potential
of various customers product segments.

Associated with customer service they are a number of processes involved in making
marketing effective in an organization e.g. processes for handling customer complaints,
processes for identifying customer needs and requirements, processes for handling order
etc HDFC uses very easy method for all the above processes

7. PHYSICAL DISTRIBUTION:

• Distribution is a key determinant of success for all insurance companies.

• 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 Standard Life are focusing on all channels
whereas companies like Max New York Life are focusing on the tied agency force
only. Customer interface will be a key challenge for life insurance companies and
includes every that interaction that the customer has with the company, such as
sales, new business underwriting, policy servicing, premium payments, claim
processing and so on.
• HDFC STANDARD LIFE has successfully used remote distribution channels such
as telephone or internet so as to reach more customers and increase
profitability.
Individual Consultants: 1.Large in number 2.Standardized Requirements
Corporate Agents: 1.Smaller in number 2. Differentiated Requirements
Brokers… regulations
• In India also, banks hope to maximize expensive existing networks by selling
a range of products. It is anticipated that rather than formal ownership
arrangements, a loose network of alliance between insurers and banks will
emerge, popularly known as banc assurance.

Market analysis:

Market segmentation: The life insurance and pension business has two
distinct customers segments - individuals and corporate. In case of the retail
business for individuals, the 4 sub-segments are - protection, investment,
savings and pension.

BENEFIT AREA
CUSTOMER
Protection Investment Savings Pensions
SEGMENT
Single premium Endowment / Pensions plans,
Individuals term Assurance
bonds Money Back annuities
Corporates Group term Insurance Gratuity Superannuation

HDFC Standard Life will seek to be present across all the segments of the
market.
Individuals
Among the retail products for individuals,
1. Pure risk protection products have been introduced in the market. As these
products have no savings component to it, the premiums are very low
compared to other products.
2. Investment products provide long term investment growth and insurance
cover. This segment is growing rapidly.
3. Savings products like Endowments and Money-Backs provide a
combination of protection and investment benefits.
4. The last segment of pension includes products that are aimed at offering
customers an income during their retirement years.
GROUP
In case of the group business, there are three sub-segments - protection,
statutory savings and pension.
Group insurance products are taken to provide low cost life insurance cover
to a group of people. Group insurance can be taken to provide low cost life
insurance cover as part of employee benefit packages to motivate employees
or to cover the housing or vehicle loan given by employer to employee.
It can also be used as a substitute for the statutory EDLI subject to approval
by the Regional Provident Fund Commissioner. The statutory savings
segment essentially comprises of the gratuity products for companies. The
pension segment will include products like group superannuation, which
will enable a company to benefit from the actuarial, investment and
operational expertise of a specialist company to manage its superannuation
funds.
FIVE C’s --1. THE COMPANY:
Name of company -- HDFC STANDARD LIFE INSURANCE
Industry -- Insurance

Market share -- 3.88%

Tag line -- sar utha ke jiyo

Founded -- 14 August 2000

Founder -- Mr.Hasmukhbhai parekh

Key people -- Mr. Deepak S Parekh (Chairman)

Mr. Deepak M Satwalekar (M.D and CEO)

Competitors -- LIC
ICICI PRUD LIFE INSURANCE
Bajaj Allianz
TATA AIG

Partners --HDFC, HDFC BANK INDIA LTD,

Union Bank of India, Indian Bank,
Bank of Baroda, Saraswat Bank,
Bajaj Capital
Products -- A) individual
B) Group
C) Other
Head quarters -- Mumbai, India

-- 600 branches, almost 730 locations

Branches throughout the country

GROSS PREMIUM INCOME OF -- Rs. 5,565 Crores

HDFC

NEW BUSINESS PREMIUM INCOME -- Rs. 2,679.61 Crores

LIVES COVERED OVER YEAR 2008- 9,59,000 & 1.25 lakh

09 & policies issued
-- Financial Expertise
Key strengths Range of Solutions
Strong Ethical Values

Vision statement --“The most obvious choice for all”

2. THE CUSTOMER:
Any person who is interested in investing his/her money for protecting his/her
future from an uncertain event is the customer of insurance company.

Customer Profile: In HDFC Standard Life customer profiles are maintained

through customer data base. The customer is eligible for the policy according to
his age and his /her investment option. Minimum age is18 and maximum age is
65 years are to be considered.

Customer Segmentation: Here segmenting can be done according to the age

and Life stages of the customer

Customer Buying Patterns: Customers buy according to their convince through

online, or through the sales person. If the customer is well educated and he can
manage the things through online he will register Himself through online.

CUSTOMER SATISFACTION: Customer satisfaction here is measured by the

feedback and mails of the customer from the website (www.mouthshutup.com)
The following bar diagram show the level of customer satisfaction with both
the companies LIC & HDFC-

Custo mer satisf actio n

LIC 167
HDFC 103

Customer satisfaction

180
160
140
120
100
Customer satisfaction
80
60
40
20
0
LIC HDFC STANDARD

Analysis- Both LIC & HDFC have a good reputation in the market but when
compared to LIC, HDFC should concentrate more for fulfilling all the needs
& wants of customer with its product. Other reason is that LIC is a public
company & HDFC is a private company even that makes the difference.

3. THE COMPETITORS:
There are total 22 insurance companies in India out of which LIC is the only
public Ltd Company & is also very good competitor to all the insurance
company.
The top ten companies are LIC, ICICI Prudential Life Insurance Co Ltd,
HDFC Standard Life Insurance Co Ltd, Bajaj Allianz Life Insurance Co Ltd,
SBI Life Insurance Co Ltd, Reliance Life Insurance Co Ltd, Birla Sun Life
Insurance Co Ltd, Max New York Life Insurance Co Ltd, Kotak Mahindra
Old Mutual Life Insurance Ltd, and Aviva Life Insurance Company India
Ltd.

HDFC STANDARD LIFE faces a very stiff competition with its other
players like LIC, ICICI, etc.

Some of the competitive features are as follows

 Large amount of competition (22 players in the market)

 Other brands are well advertised and have higher recall value

 LIC is considered a safer option

 Face competition from banks and mutual funds

 High premium policies are difficult to market

 Incorrect perception about private insurance company

 Short term plans are available only at large premium

 Lack of awareness about the unit linked funds in the market

The market share of HDFC is 3.88% & LIC is 72.08% as LIC is a public
company it is the major competitor for all the other 21 insurance
company in India. Most of the market concentration is occupied by LIC.

4. THE COLLABORATORS:
  Joint Collaboration of HDFC and standard life
 Collaboration of HDFC with Manipal Education

HDFC Life insurance has evolved over the period with its start of 10 crores
as the most massive mortgage institution of finance. With thrust for standard
life, HDFC is the joint collaboration of HDFC and Standard Life, which are
protagonists in this marketing platform from commendable years of
enriching experience. Moreover to add to its reputation, HDFC Life
Insurance was the first company to attain the license to work in the
insurance arena and the rest is history. It has operation from more than 52
locations. It’s just not about the renowned name of the company but more of
its customer based applications and services that make it bond with the best

HDFC Standard Life, one of India’s leading private life insurance

companies, in collaboration with Manipal Education, India’s premier
academic and education services provider, has announced the launch a three-
month Certificate Programme in Insurance and Management.

5. THE CONTEXT:

Control: Some of the main problems in marketing the policies are:

 Large amount of competition (18 players in the market)

 Other brands are well advertised and have higher recall value
 LIC is considered a safer option
 Face competition from banks and mutual funds
 High premium policies are difficult to market
 Incorrect perception about insurance
 Interested prospects might have a lack of time and postpone investments
 Customers get defensive if you cold call

SU GGE STIO NS FO R IMPROVEMENT

 Advertise about the company and its products – it motivates individuals to

purchase insurance
 Create a positive perception about insurance
 Speak about the good features a plan offers like high returns, life cover, tax
benefits, indexation, accident cover while prospecting customers
 Try to sell the product/plan which the consumer requires and not the plan where
the advisors benefit is higher
 Analysis & interpretation

“A SURVEY ON THE LIFE INSURANCE INDUSTRY IN INDIA”

AGE GRO UP OF SURVE YED RESPONDEN TS

TABLE 1:

Age group No. of Respondents

18 - 25 years 127
26 - 35 years 67
36 - 49 years 46
50 - 60 years 24
More than 60 years 6

CHA RT 1:

Analys is:
From the chart above we find that 47% of the respondents fall in the age group of 18 –
25 years, 25% fall in the age group of 26 – 35 years and 17% fall in the age group of
36 – 49 years.
Therefore most of the respondents are relatively young (below 26 years of age). These
individuals could be induced to purchase insurance plans on the basis of its tax saving
nature and as an investment opportunity with high returns. Individuals at this age are
trying to buy a house or a car. Insurance could help them with this and this fact has to
be conveyed to the consumer.
NO . OF RESPO NDENTS W HO HA VE LIFE INS URA NCE POLICY I N THEIR
NAME
TABLE 1:

Perso n who ha ve lif e ins ur ance policy

Yes 103
No 167

CHA RT 1:

ANAL YSIS :
This graph shows that out of total 270 respondents only 103 or 38% respondents have
life insurance policy in their name. Rest all don’t have a single policy in their name. So
there is a very big scope for life insurance companies to cover these people. So in future
business of life insurace will grow further.
 SELEC TION OF LIFE INS URA NCE COMP ANIES

TABLE 2:

LIFE INSURER NUMBER OF RESPONDENT

LIC 76
HDFC STANDARD LIFE 08
ICICI PRUDENTIAL 11
OTHERS 05

CHA RT 2:

NUMBER OF RESPONDENT

80
70
60
50
40 NUMBER OF
PRUDENTIAL

30
STANDARD

20 RESPONDENT
OTHERS

10
0
LIC

HDFC

LIFE

ICICI

Analys is:
In India, the largest life insurance company is Life Insurance Corporation of India. It has
been in existence in India since 1956 and is completely owned by the Government of
India. Today the organization has grown to 2048 offices serving 18 crore policies and
has a corpus of over 340000 crore INR.
 CO NSUME R WILLIN GNE SS TO SPEND ON LIFE IN SURA NCE PREMIUM

TABLE 3:

Willingness to spend on premium No. of respondents Percentage

Less than Rs. 6,000 41 15%

Rs. 6,001 - Rs. 10,000 73 27%

Rs. 10,001 - Rs. 25,000 110 41%

Rs. 25,001 - Rs. 50,000 41 15%

Rs. 50,001 - Rs. 1,00,000 5 2%

CHA RT 3:

CO NSUME R WILLIN GNE SS TO SPEND ON LIFE IN SURA NCE PREMIUM

Analys is:
From the graph above, we can clearly see that 41% of the respondents would be willing
to spend between Rs. 10001 – Rs. 25000 for life insurance. 27 % would be willing to
spend between Rs. 6001 – Rs. 10000 per annum. Only 15% would be willing to spend
more than Rs. 25000 per annum as life insurance premium. We could say that the
maximum premium payable by most consumers is less than Rs. 25000 p.a.

POPUL AR LIFE IN SU RAN CE PLAN S

TABLE 4:

Type of Plan No. of Respondents

Term Insurance Plans 105
Endowment Plans 122
Pension Plans 16
Child Plans 8
Tax Saving Plans 19

CHA RT 4:

POPUL AR LIFE IN SU RAN CE PLAN S

Analys is:
From the chart given above we can clearly see that 45% of the respondents hold
endowment plans and 39% of the respondents hold term insurance plans. Endowment
plans are very popular and serve two purposes – life cover and savings.
If the policy holder dies during the policy term the nominee gets the death benefit that
is, sum assured and accumulated bonus. On survival the policy holder receives the
survival benefit with a bonus. A term plan is a pure risk cover plan wherein the insured
pays a lower premium for a higher sum assured.

AWARENESS OF UNI T LINKED INS URA NCE PL ANS

TABLE 5:

Awareness of Unit Linked Plans No. of Respondents

Yes 154
No 116

CHA RT 5:

AWARENESS OF UNI T LINKED INS URA NCE PL ANS

Analys is:
From the chart given above we find that 57% of the respondents are aware of unit
linked life insurance plans and 43% are not aware of such plans. These plans should be
promoted through advertising. The company can advertise through television, radio,
newspapers, bill boards and pamphlets to increase awareness
Unit – linked plans are those where the benefits are expressed in terms of number of
units and unit price. They can be viewed as a combination of insurance and mutual
funds. The number of units a customer would get would depend on the unit price when
they pay the premium. When the policy matures the individual gets his fund value. The
value of his fund is calculated by multiplying the net asset value and number of units
held by them on that day.

CHA RT SHO WIN G IDEAL POLIC Y TERM

TABLE 6:

Ideal policy term No. of respondents

3 - 5 years 51
6 - 9 years 41
10 – 15 years 95
16 – 20 years 38
21 – 25 years 24
26 – 30 years 5
More than 30 years 3
Whole life Policy 13

CHA RT 6:

CHA RT SHO WIN G IDEAL POLIC Y TERM

Analys is:
From the chart given above it can be seen that 35% of the respondents prefer a policy
term of 10 – 15 years, 19% prefer a term of 3 – 5 years and 15% prefer a term of 6 – 9
years. This means that HDFC SLIC could introduce more plans wherein the premium
paying term is less than 15 years.
 ANALYSIS & INTERPRETATION USING SPSS:
MULTIPLE CORRES VARIABLES=Price Quality Brand Variety Service Customer
/ANALYSIS=Price(WEIGHT=1) Quality(WEIGHT=1) Brand(WEIGHT=1)
Variety(WEIGHT=1) Service(WEIGHT=1) /MISSING=Price(PASSIVE,MODEIMPU)
Quality(PASSIVE,MODEIMPU) Brand(PASSIVE,MODEIMPU)
Variety(PASSIVE,MODEIMPU) Service(PASSIVE,MODEI MPU) /DIMENSION=2
/NORMALIZATION=VPRINCIPAL /MAXITER=100 /CRITITER=.00001
/PRINT=CORR DISCRIM /PLOT=OBJECT(Price Quality Brand Variety Service
Customer) (20) JOINTCAT(Price Quality Brand Variety Service) (20) DISCRIM (20).

Multiple Correspondences
 Notes

Output Created 02-Jun-2009 13:41:52

Comments
Input Active Dataset DataSet0
Filter <none>
Weight <none>
Split File <none>
N of Rows in Working Data 30
File
Syntax MULTIPLE CORRES VARIABLES=Price Quality Brand Variety Service
Customer
/ANALYSIS=Price(WEIGHT=1) Quality(WEIGHT=1)
Brand(WEIGHT=1) Variety(WEIGHT=1) Service(WEIGHT=1)
/MISSING=Price(PASSIVE,MODEIMPU)
Quality(PASSIVE,MODEIMPU) Brand(PASSIVE,MODEIMPU)
Variety(PASSIVE,MODEIMPU) Service(PASSIVE,MODEIMPU)
/DIMENSION=2
/NORMALIZATION=VPRINCIPAL
/MAXITER=100
/CRITITER=.00001
/PRINT=CORR DISCRIM
/PLOT=OBJECT(Price Quality Brand Variety Service Customer) (20)
JOINTCAT(Price Quality Brand Variety Service) (20) DISCRIM (20).

Resources Processor Time 0:00:02.640

Elapsed Time 0:00:02.703

Credit

Multiple Correspondence

Version 1.0

by

Data Theory Scaling System Group (DTSS)

Faculty of Social and Behavioral Sciences

Leiden University, The Netherlands

 Case Processing Summary

Valid Active Cases 30

Active Cases with Missing 0

Values

Supplementary Cases 0

Total 30

Cases Used in Analysis 30

Iteration History

Iteration Variance Accounted For

Number Total Increase Loss

15a 2.221605 .000006 2.778395

a. The iteration process stopped because the convergence test value was reached.

Model Summary

Variance Accounted For

Dimensi Total
on Cronbach's Alpha (Eigenvalue) Inertia % of Variance

1 .739 2.445 .489 48.897

2 .624 1.998 .400 39.968

Total 4.443 .889

Mean .687a 2.222 .444 44.432

a. Mean Cronbach's Alpha is based on the mean Eigenvalue.

Quantifications
Plot
Category Points
 Correlations Transformed Variables

Dimension:1

Price Quality Brand Variety Service

Price 1.000 .512 .238 .277 .255

Quality .512 1.000 .338 .429 .498

Brand .238 .338 1.000 .277 .198

Variety .277 .429 .277 1.000 .508

Service .255 .498 .198 .508 1.000

Dimension 1 2 3 4 5

Eigenvalue 2.445 .865 .790 .512 .388

Objects

Object Points Labeled by

Discrimination Measures

Discrimination Measures

Dimension

1 2 Mean

Price .420 .575 .498

Quality .676 .629 .653

Brand .289 .321 .305

Variety .530 .011 .270

Service .529 .462 .496

Active Total 2.445 1.998 2.222

% of Variance 48.897 39.968 44.432

INTERPRETATION:

From the joint plot category we can interpret that people scale the brand in
between good and average category. In terms of price HDFC stands at
satisfactory position. From this survey we could also found that the service
provided by HDFC STANDARD LIFE is at good position. In case of quality
people have different opinion some says it is excellent & other says it is
average.
From the graph it is clear that HDFC STANDARD LIFE has all variety of
products.

CONCLUSION:

HDFC STANDARD LIFE is one of largest leading company in

India. Its market share during the year is 3.88%. Its collaboration is
with standard life which is a UK based company & its new
collaboration is with Manipal educations. The most unique selling
product of the company is ULIPS. HDFC has nearly 600 branches
through the country & it has more then 2 lakh financial
consultants. It is also kwon for its values & ethics followed by
them .According to the survey conducted HDFC has good
reputation in the market.
 QUESTIONNAIRE

Do you ha ve a lif e i nsur ance policy/i nvest me nt plan in y our na me?

o Yes o No

If yes which compan y ’s insur ance pol icies do you

hold?
o Aviva Life
o HDFC Standard Insurance
Life Insurance o Bajaj Allianz Life
o Birla Sun Life Insurance
Insurance o LIC
o Tata AIG Life o ING Vysya Life
Insurance Insurance
o ICICI Prudential o Bharti Axa Life
Life Insurance Insurance
o Others (specify name)

How much would you be wi lli ng to spe nd per

ann um if you wer e to go for an
in vestme nt/i ns ur ance plan?

o Less than Rs. o Rs. 25,001 – Rs.

6,000 50,000
o Rs. 6,001 – Rs. o Rs. 50,000 – Rs.
10,000 1,00,000
o Rs. 10,001 – Rs. o More than Rs.
25,000 1,00,000

What kind of in sur ance policy wou ld su it you best

in y our curr ent stage of l if e?
o Life Insurance o Pension Plans
o Life Insurance and o Child Plans
Investment Plans
o Tax saving plans

Ar e you awar e of the new un it link ed in sur ance

plans i n the mark et?

o Yes o No
Whic h accor ding to you is an ideal pol icy term?
(N umber of years you wou ld be will ing to pa y
pr em iu m)

o 3 to 5 years o 21 to 25 years
o 6 to 9 years o 26 to 30 years
o 10 to 15 years o More than 30
o 16 to 20 years years
o Whole life policy

In which kind of compa ny wou ld you pr ef er to

mak e a pu rchase of in sur ance?

o Government owned
company
o Public Limited Company
o Private Company
o Foreign based company