Research proposal On Life Insurance Corporation of India (L.I.

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Group No :- 8 Priyank Galaw (TM1110467)

Dipak Majethia (TM1110455) Jyoti Shrivastava (TM1110407) Juhi Gupta Sadab Asghar (TM1110406 ) (TM1110474)

TM Hedayetullah (TM1110491)

Introduction and Statement of Problem:

Life Insurance Corporation of India (LIC) is the largest state-owned insurance group in India, and also the country's largest investor. It is fully owned by the Government of India. LIC also funds close to 24.6% of the Indian Government's expenses. It has assets estimated of 13.25

trillion (US$264.34 billion). It was founded in 1956 with the merger of 243 insurance companies and provident societies.

Over its existence of around 50 years, Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7 % of India's GDP in 2006.

But the main problem faced by LIC these days is decline in policy sales and decline in its revenues . So the main statement of problem here is the decline in policy sales of LIC and increase in new business of new private players & shifting consumer requirement.

LIC Products:
Jeevan Arogya plans Bima Account plans Endowment Assurance plans Children plans Whole life plans Joint life plan Term assurance plans

Short literature survey:

Here is how Various Life Insurers stack up against each in the Industry as a whole. The following Data suggests that LIC of India is still the market leader followed by ICICI Prudential, HDFC Standard Life, SBI, Reliance, Bajaj, Birla Sun Life, Max New York etc.

According to a data from regulator Insurance Regulatory and Development Authority (IRDA) total new business premium of life insurance companies in the country declined by 9.2% to Rs1.14 lakh crore from Rs1.25 lakh crore during the financial year FY12,

Life Insurance Corporation of India (LIC) recorded 6.1% decline in its first year premium collection to Rs81,514.5 crore from Rs86,444.7 crore a year ago. LICs market share stood at 71% at the end of March 2012, according to the data. India has 24 public and private life insurance companies. The combined first year premium of private sector life insurers, declined 16.9% to Rs32,718.24 crore, from a year ago.

Premium from sale of new life insurance policies in the first three quarters of FY 2010-12 has dropped 17% to Rs 71,953 crore from Rs 86,698 crore. If premium from group policies is excluded, the drop is even more precipitous at 33% to Rs 39,131 crore from Rs 86,698 crore last year.

Research design and Hypothesis:

OBJECTIVES:
To understand the reasons for decline in policy sales. To recognize the Potential Market for Life Insurance with help of survey. To find the preference of various products To analyze the reason in growth of competitors.

Research design and analysis

The project would involve administering a one-time survey (questionnaire) which identifies the conditions that need to be covered by the insurance product.

A short survey will be designed and administered to some existing customers and some other prospects , The survey records information on: various life insurance policies , wants of people from a life insurance policy , likings disliking about LIC s product and rivals products . whether insurance was used for

conditions that were eligible and if not, why not; and factors that influenced clients to purchase insurance. The survey will be administered by our group members at various places , at various banks or with the help of local surveyors in various households . The Data collected will further be analysed with the help of SPSS.

Time budget:
Expected time for the process of project making will take around 8-9 days. In that, 5-6 days will be allotted to gathering the information and data. A part from that, 2-3 days will be given to analysis of the data gathered .

Beneficiaries:
Students Banking Institutions Financial Institutions Insurance agents Marketers of LIC Policy builders Users of the LIC Analyst of the LIC

Research Methodology

Cluster and Factor Analysis (Chi square,Annova)

No. Of Respondents

60

Area Of Research

Wakad and Chinchwad (North-West Pune)

Appendix:
Books: Related to Insurance Financial Magazines Newspapers Journals on Insurance

Websites:

Wikipedia.com Google.com Licindia.in Insurance provider Companies