GOOD AFTERNOON

INSURANCE

• It is a system by which the losses suffered

by a few are spread over many, exposed to
similar risks.
• The calamity is either natural or unexpected
• The insured person does not gain out of this
arrangement.
 DIVISION OF
INSURANCE SECTOR
 WHAT ARE ULIPs?

1.Combination of safety of insurance protection & wealth

creation opportunities.
2.Life cover + investment in funds being opted for.
3.Types: for retirement, for children’s education, for wealth
creation, for health solution.
4.Switching funds without any extra cost.
5.Long term investment.
6.Flexible & transparent.
7.Most ULIPs provide an option to increase or decrease
premium after 3 years.
HDFC+SLIC
 COMPANY PROFILE

1.Incorporated on 14th August, 2000.

2.Joint venture between Housing Development Finance
Corporation ltd. (HDFC) & Standard Life.
4.Rated ‘AAA’ by CRISIL and ICRA.
5.Has 27 Lakh policies in force.
6.Offers a bouquet of insurance solutions catering the
needs of both individuals & organizations.
 ULIPs

• HDFC unit linked wealth maximiser plus.

• HDFC simple life.
• HDFC unit linked enhanced life protection.
• HDFC unit linked endowment.
• HDFC unit linked endowment plus.
• HDFC unit linked wealth multiplier.
 Unit Linked Wealth
Maximiser Plus
key features
• No medicals in case of
eligibility, for applying
through Short Medical
Questionnaire (SMQ).
• One time investment at the
start of the policy.
• Cover till the age of 99
years.
• Regular loyalty units of
0.10% every year as long
as the policy is not
surrendered.
HDFC SIMPLE LIFE
 HDFC SIMPLE LIFE

Minimum annualized Maximum annualized

Premium-20,000 Premium-1,00000
Minimum sum assured- Maximum sum assured-
1,00000 5,00000
Minimum term period- Maximum term period-
15 years. 20 years.
Minimum age at entry- Maximum age at entry-
18 45
 CHARGES

* Policy administrative • Revival charges-Rs

charges-Rs 60/year 250 is charged in case
which increases every of revival.
year by 5%. • Switching charges-24
*Mortality charges-the switches will be free,
amount depends onthe then Rs 100 will be
age of the customer. charged for every
switch.
 CHARGES

Allocation rates- Surrender charges-

• Year 1 - 80% • 4 annual premiums-95%
• Year 2- 80% • 3 annual premiums-40%
• Year 3- 90% • 2 annual premiums-15%
• 1 annual premium-
• Year 4+-98%
5%
 HDFC unit linked
enhanced life protection
 HDFC unit linked
enhanced life protection
• Minimum annualized • Minimum age at entry-
Premium-12,000. 18 years.
• Sum assured will increase • Maximum age at entry-
at 5% every year. 45 years.
• Minimum term period- • Maximum age at maturity-
10 years. 75 years.
• Maximum term period-
30 years
 CHARGES

• Policy administrative • Revival charges-Rs

charges-Rs 60/year 250 is charged in case
which increases every of revival.
year by 5%. • Switching charges-24
• Mortality charges- switches will be free,
the amount depends then Rs 100 will be
on the age of the charged for every
customer. switch.
 CHARGES

Single premium top up Surrender charges-

allocation charges- • 4 annual premiums-95%
• Paid during year 1- • 3 annual premiums-35%
97.5% • 2 annual premiums-15%
• Paid during year 2- • 1 annual premiums-5%
97.5%
• Paid during year 3+-
98%
 OVERALL MARKET SHARE

Market share of life insurance companies

60% 54%
LIC
50%
Percentage

40% ICICI Prudential

30% Bajaj Allianz
15%
20% 9% 8% 8%
2% 4% HDFC SL
10%
0% Tata AIG
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AMOUNT OF PREMIUM COLLECTED BY
HDFCSL AS COMPARED WITH LIC
Amount of premium collected by HDFCSL compared with LIC

16000 15350
15000
14000
13000
12000 11360
11000
10000
9000 LIC
8000
7000 HDFCSL
6000
5000 3563
4000
3000
2000 1167 931 707
1000
0
Aug'09 Aug'08 Aug'07
Premium (in crore)
READINESS TO INVEST IN ULIPs

Readiness to invest in ULIPs

4%
12%

40% Yes
No
May be
Don’t know

44%
 THREATS

• People are hesitant to invest and put their money

to private life insurance companies.
• Alternative financial services such as mutual
funds, shares and securities pose problems.
• Rising real estate industry also pose threat as
people are investing a bulk of their money there.
• Tough competition from other players.
 SUGGESTIONS

• It should try to sell those plans which the customer

requires & not the plan where advisors benefits are
higher.
• Aggressive promotion for ULIPs should be done.
• Returns from investment should be taken care of.
• The company needs more manpower and planning
to reach the desired level.