A PROJECT REPORT ON ANALYSING THE LIQUIDITY RISK OF HDFC STANDARD LIFE

INSURANCE WITH PRIMARY FOCUS ON STRESS LIQUIDITY RISK"

Submitted in partial fulfilment of requirements for the award of the degree of

BACHELORS OF BUSINESS MANAGEMENT

Bangalore University Submitted By TASSO RILLUNG Reg No-10XEC18022

Under The Guidance of Mrs. Ranjani C Lecturer

Department of Management Studies East Point College of Higher Education Bangalore-560049

2012- 2013

DECLARATION

I hereby declare that this dissertation titled Analyzing the liquidity risk of

HDFC

standard life insurance with primary focus on stress liquidity risk" submitted by me to the department of management studies, Bangalore University in partial fulfillment of requirement of BBM programme is a bonafide work carried me under the guidance of Ms. Ranjani C This has not been submitted earlier to any other university or institution for the award of any degree / diploma / certificate or published any time before.

TASSO RILLUNG 10XEC18022

ACKNOWLEDGEMENT

First and foremost I acknowledge my gratitude to the Almighty who sustained me with the powerful blessings through various persons at all stages of my training. I take this opportunity to express my powerful and whole hearted thanks to all executives and employees of HDFC STANDARD LIFE INSURANCE COMPANY. I feel great pleasure in acknowledging my sense of gratitude to my external guide Mr. SUNIL.S.PATIL Manager of HDFC Standard Life Insurance Company for his guidance, encouragement and valuable suggestion during the course of the training period. I would like to express my sincere thanks to Ms. Ranjani C, Lecturer, my internal guide for his cooperation during the course of the training. I express my whole hearted thanks to our Principal and H.O.D of BBM department of Management Studies, East Point College of Higher Education for providing me with necessary facilities for carrying out this successfully. Finally I express my sincere thanks to my friend, and my brothers for their co-operation to finish this work successfully.

TASSO RILLUNG 10XEC18022

LIST OF CONTENTS CHAPTER NO 1 2 3 4 5 6 7 CONTENTS INTRODUCTION

1

PAGE NO.

RESEARCH DESIGN INDUSTRY PROFILE AND COMPANY PROFILE DATA ANALYSIS AND INTERPRETATION SUMMARY OF FINDINGS, CONCLUSION BIBLIOGRAPHY ANNEXURE

10 13 32 49 53 -

LIST OF TABLES
TABLE NO. 1 2 3 4 5 6 7 8 9 10 11 PARTICULARS Table showing the occupation of respondents Table showing the effects on long term investments due to rise in interest rate. Table showing the effects in policyholders A/C due to rise in interest rate. Table showing the effects in shareholders A/C due to rise in interest rate. Table showing the effects on long term investments due to fall in interest rate. Table showing the effects in policyholders A/C due to fall in interest rate. Table showing the effects in shareholders A/C due to fall in interest rate. Table showing effects on asset prices in policyholders A/C due to asset price shock Table showing effects on asset prices in shareholders A/C due to asset price shock Table showing effects on asset held to cover linked liabilities due to asset price shock Table showing effects on benefits paid and policy liabilities due to insurance risk shock. PAGE NO.
25 32 34 35 38 40 41 43 44 45 47

LIST OF GRAPHS
GRAPH NO. G-1 G-2 G-3 G-4 G-5 G-6 G-7 G-8 G-9 G-10 Particulars Graph showing the effects on long term investments due to rise in interest rate. Graph showing the effects in policyholders A/C due to rise in interest rate. Graph showing the effects in shareholders A/C due to rise in interest rate. Graph showing the effects on long term investments due to fall in interest rate. Graph showing the effects in policyholders A/C due to fall in interest rate. Graph showing the effects in shareholders A/C due to fall in interest rate. Graph showing effects on asset prices in policyholders A/C due to asset price shock Graph showing effects on asset prices in shareholders A/C due to asset price shock Graph showing effects on asset held to cover linked liabilities due to asset price shock Graph showing the effects on long term investments due to rise in interest rate. PAGE NO.
33 35 36 39 40 41 43 44 45 47