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 crore

Rs. 33.07 Crore

Rs. 25.75 Crore

YEARS

2005

2005.5

2006

2006.5

2007

2007.5

2008

2008.5

Rs 27.77 Rs. 33.07 Rs. 25.75

YEARS

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:

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%.

NAME OF INSURANCE COMPANIES`

MARKET SHARE in %

LIC 72.15HDFC Standard 3.88ICICI 5.91Birla Sun life 2.6Bajaj allianz 1.62Tata AIG 1.5SBI 1.19AVIVA 1.8MAX Newyork life 2.4OM KOTAK 1.9ING vysya 1.2AMP SANWAR 1METLIFE 1.4OTHERS 1.45

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 Growth (%)

39.95 36.97 25.43   10.81   0

Net Sales 81763.46   58425.12   42655.38   34006.04   30689.30  

years

2002

2003

2004

2005

2006

2007

2008

2009

81763.46   58425.12   42655.38   34006.04   30689.30  

years

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 servicesThey try to offer same standardized services to all their customers e.g., a courier servicesThey 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, andiii) 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, andii) 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 yearThe 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 AREACUSTOMERSEGMENT

Protection Investment Savings Pensions

Individuals term AssuranceSingle premium bonds

Endowment / Money Back

Pensions plans, annuities

Corporates Group term Insurance Gratuity Superannuation

HDFC Standard Life will seek to be present across all the segments of the market.IndividualsAmong 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.GROUPIn 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

Industry

Market share

Tag line

Founded

Founder

Key people

Competitors

Partners

Products

Head quarters

Branches

GROSS PREMIUM INCOME OF HDFC

NEW BUSINESS PREMIUM INCOME

LIVES COVERED OVER YEAR 2008-09 & policies issued

Key strengths

Vision statement

-- HDFC STANDARD LIFE INSURANCE

-- Insurance

-- 3.88%

-- sar utha ke jiyo

-- 14 August 2000

-- Mr.Hasmukhbhai parekh

-- Mr. Deepak S Parekh (Chairman) Mr. Deepak M Satwalekar (M.D and CEO)

-- LIC ICICI PRUD LIFE INSURANCE Bajaj Allianz TATA AIG

--HDFC, HDFC BANK INDIA LTD, Union Bank of India, Indian Bank, Bank of Baroda, Saraswat Bank, Bajaj Capital-- A) individual B) Group C) Other -- Mumbai, India

-- 600 branches, almost 730 locations throughout the country

-- Rs. 5,565 Crores

-- Rs. 2,679.61 Crores

9,59,000 & 1.25 lakh

-- Financial Expertise Range of Solutions Strong Ethical Values

--“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-

Customer satisfactionLIC 167

HDFC 103

Customer satisfaction

0

20

40

60

80

100

120

140

160

180

LIC HDFC STANDARD

Customer satisfaction

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

SUGGESTIONS FOR 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 GROUP OF SURVEYED RESPONDENTS

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

CHART 1:

Analysis:

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 RESPONDENTS WHO HAVE LIFE INSURANCE POLICY IN THEIR

NAME

TABLE 1:

Person who have life insurance policyYes 103No 167

CHART 1:

ANALYSIS :

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.

SELECTION OF LIFE INSURANCE COMPANIES

TABLE 2:

LIFE INSURER NUMBER OF RESPONDENTLIC 76HDFC STANDARD LIFE 08ICICI PRUDENTIALOTHERS

11 05

CHART 2:

NUMBER OF RESPONDENT

01020304050607080

LIC

HD

FC

ST

AN

DA

RD

LIF

E

ICIC

I

PR

UD

EN

TIA

L

OT

HE

RS

NUMBER OFRESPONDENT

Analysis:

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.

CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE 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%

CHART 3:

CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM

Analysis:

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.

POPULAR LIFE INSURANCE PLANS

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

CHART 4:

POPULAR LIFE INSURANCE PLANS

Analysis:

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 UNIT LINKED INSURANCE PLANS

TABLE 5:

Awareness of Unit Linked Plans No. of Respondents

Yes 154

No 116

CHART 5:

AWARENESS OF UNIT LINKED INSURANCE PLANS

Analysis:

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.

CHART SHOWING IDEAL POLICY 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

CHART 6:

CHART SHOWING IDEAL POLICY TERM

Analysis:

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

File

30

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

Values

0

Supplementary Cases 0

Total 30

Cases Used in Analysis 30

Iteration History

Iteration

Number

Variance Accounted For

Total Increase Loss

15a 2.221605 .000006 2.778395

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

Model Summary

Dimensi

on

Variance Accounted For

Cronbach's

Alpha

Total

(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.

QuantificationsPlotCategory 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 have a life insurance policy/investment plan in your name?

o Yes o No

If yes which company’s insurance policies do you hold?

o HDFC Standard Life Insurance

o Birla Sun Life Insurance

o Aviva Life Insurance

o Bajaj Allianz Life Insurance

o LICo Tata AIG Life

Insuranceo ICICI Prudential

Life Insurance

o ING Vysya Life Insurance

o Bharti Axa Life Insurance

o Others (specify name)

How much would you be willing to spend per annum if you were to go for an investment/insurance plan?

o Less than Rs. 6,000

o Rs. 6,001 – Rs. 10,000

o Rs. 10,001 – Rs. 25,000

o Rs. 25,001 – Rs. 50,000

o Rs. 50,000 – Rs. 1,00,000

o More than Rs. 1,00,000

What kind of insurance policy would suit you

best in your current stage of life?

o Life Insuranceo Life Insurance

and Investment Plans

o Pension Planso Child Plans

o Tax saving plans

Are you aware of the new unit linked insurance plans in the market?

o Yes o No

Which according to you is an ideal policy term? (Number of years you would be willing to pay premium)

o 3 to 5 yearso 6 to 9 yearso 10 to 15 yearso 16 to 20 years

o 21 to 25 yearso 26 to 30 yearso More than 30

yearso Whole life policy

In which kind of company would you prefer to make a purchase of insurance?

o Government owned company

o Public Limited Company

o Private Companyo Foreign based

company