Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
MARKET SEGMENTATION
PLACE : GUNA
STATE : MADHYA PRADESH
A
SUMMER TRAINING REPORT
SUBMITTED
IN PARTIAL FULMILMENT FOR THE AWARD OF THE DEGREE
OF
BACHELOR OF BUSINESS ADMINISTRATION
2007-2010
SUBMITTED
TO
DEPARTMENT OF MANAGEMENT
JAIN COLLEGE GWALIOR
(AFFLIATED TO JIWAJI UNIVERSITY GWALIOR)
STUDENT DECLEARATION
RANJAN for partial fulfillment for the award of the degree of, Bachelor of Business
DATE
PLACE
RISHI RANJAN
GUIDE CERTIFICATE
with a focus on market segmentation” is submitted by Mr. RISHI RANJAN for partial
(R. KANDU)
Area Trainee
Manager(HDFC SL)
Guna(M.P)
ACKNOWLEDGMENT
I owe utmost thanks, Ms. Anshul Shrivastav H.O.D MGMT DEPT. Jain
College, Gwalior(M.P). for their valuable suggestion and discussion made throught my
research work.
In the last I would like to thank all individuals known or unknown who have helped me
directly or indirectly during the research fellowship period.
I must say that all of those great people have done their social job, which I will also like
to obilige others in from of similar or even better support throught my life.
In 1818 the British established the first insurance company in India in Calcutta, the
Oriental Life Insurance Company. First attempts at regulation of the industry were made
with the introduction of the Indian Life Assurance Companies Act in 1912. A number of
amendments to this Act were made until the Insurance Act was drawn up in 1938.
Noteworthy features in the Act were the power given to the Government to collect
statistical information about the insured and the high level of protection the Act gave to
the public through regulation and control. When the Act was changed in 1950, this meant
far reaching changes in the industry. The extra requirements included a statutory
requirement of a certain level of equity capital, a ceiling on share holdings in such
companies to prevent dominant control (to protect the public from any adversarial
policies from one single party), stricter control on investments and, generally, much
tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance
companies. Business was heavily concentrated in urban areas and targeted the higher
echelons of society. “Unethical practices adopted by some of the players against the
interests of the consumers” then led the Indian government to nationalize the industry. In
September 1956, nationalization was completed, merging all these companies into the so-
called Life Insurance Corporation (LIC). It was felt that “nationalization has lent the
industry fairness, solidity, growth and reach.”
Some of the important milestones in the life insurance business in India
are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of
protecting the interests of the insuring public.
1956: The market contained 154 Indian and 16 foreign life insurance companies.
General Insurance
The General Insurance industry in India dates back to the Industrial Revolution and the
subsequent increase in trade across the oceans in the 17th century. As for Life Insurance,
the British brought General Insurance to India, and a similar path was followed in the
development of this industry. A number of private companies were in existence for years
and years until, in 1971, the Indian Government decided that the public interest would be
served by nationalizing the industry, merging all the 107 companies into four companies,
depending on the sort of business transacted (Marine, Fire, Miscellaneous). These were
the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the New
India Assurance Company Ltd., and the United India Insurance Company Ltd. located in
Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance
Corporation (GIC) was set up in 1972 as a ‘holding’ company, having these four
companies as its subsidiaries.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of
general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins
and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the
general insurance business in India with effect from 1st January 1973. 107 insurers
amalgamated and grouped into four company’s viz. the National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and
the United India Insurance Company Ltd. GIC incorporated as a company.
In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while
GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, Laic’s income
grew at a healthy average of 10 per cent as against the industry's 6.7 per cent growth in
the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US). LIC has even provided
insurance cover to five million people living below the poverty line, with 50 per cent
subsidy in the premium rates. Laic’s claims settlement ratio at 95 per cent and Gig’s
at 74 per cent are higher than that of global average of 40 per cent. Compounded annual
growth rate for Life insurance business has been 19.22 per cent per annum
General
Insurance Corporation of India (GIC)
The general insurance industry in India was nationalized and a government company
known as General Insurance Corporation of India (GIC) was formed by the Central
Government in November 1972. With effect from 1 January 1973 the erstwhile 107
Indian and foreign insurers which were operating in the country prior to nationalization,
were grouped into four operating companies, namely, (I) National Insurance Company
Limited; (ii) New India Assurance Company Limited; (iii) Oriental Insurance Company
Limited; and (iv) United India Insurance
COMPANY PROFILE
HDFC Standard Life Insurance Company Ltd. is one of India's leading private
insurance companies, which offers a range of individual and group insurance solutions. It
is a joint venture between Housing Development Finance Corporation Limited (HDFC
Ltd.), India's leading housing finance institution and a Group Company of the Standard
Life, UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint
venture.
• HDFC is India leading housing finance institution and has helped build more than
23, 00,000 houses since its incorporation in 1977.
• In Financial Year 2003-04 its assets under management crossed Rest. 36,000 Cr.
• As at March 31, 2004, outstanding deposits stood at Rest. 7,840 cores. The
Depositor base now stands at around 1 million depositors.
• Rated AAA by CRISIL and ICRA for the 10th consecutive year
Stable and experienced management
• High service standards
• Awarded The Economic Times Corporate Citizen of the year Award for its
long-standing commitment to community development.
• Presented the Dream Home award for the best housing finance provider in 2004 at
the third Annual Outlook Money Awards.
• Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at
the Money Marketing Awards, and it was voted a 5 star life and pension’s
provider
at the Financial Adviser Service Awards for the last 10 years running. The '5
• Star' accolade has also been awarded to Standard Life Investments for the last
10 years, and to Standard Life Bank since its inception in 1998. Standard Life
Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage
Magazine Awards in 2006
HDFC KEYS STRENGHS
FINANCIAL EXPERTISE
As a joint venture of leading financial services groups, hdfc standard life has the financial
expertise required to manage your long-term investments safely and efficiently. range of
solutions
we have a range of individual and group solutions, which can be easily customised to
specific needs. our group solutions have been designed to offer you complete flexibility
combined with a low charging structure. track record so far our gross premium income,
for the year ending march 31, 2008 stood at rs. 4,859 crores and new business premium
income stood at rs. 2,685 crores. the company has covered over 9, 59,000 lives year
ending march 31, 2008. corporate objective
VISION
Providing long term financial security to our policy holders will be our constant
endeavour. We will be do this by offering life insurance and pension products. We
appreciate the trust placed by our policy holders in us. Hence, we will aim to manage
their investments very carefully and live up to this true. Recognizing the different needs
of our customers, we will be offering a range of innovative products to meet these needs.
Our mission is to be the best new life insurance company in India and these are the values
that will guide us in this
MISSION
We aim to be the top new life insurance company in the market. This does not
just mean being the largest or the most productive company in the market, rather
• .Integrity
• .Innovation
• .Customer centric
• .Teamwork
The insurance sector was opened up in the year 1999 facilitating the entry of
private players into the industry. With an annual growth rate of 24.31 percent
and the largest number of life insurance policies in force, the potential of the
Indian insurance industry is huge. The year 1999 saw a revolution in the Indian
insurance sector, as major structural changes took place with the ending of
Development Authority (IRDA) Bill, lifting entry restrictions for private players
and allowing foreign players to enter the market with some limits on direct
foreign ownership.
According to the CSO, the insurance and banking services’ contribution to the
country’s GDP is 7.1 percent out of which the gross premium collection forms a
significant part. Life insurance penetration in India was less than 1 percent till
1990-91. During the ‘90s, it was between 1 and 2 percent and from 2001 it was
private players and taking positive steps in increasing the insurance awareness
among the people. Besides, the insurance companies in general and private
anyone expected. Life insurance is viewed as a tax saving device. People are
now turning to the private sector for providing them with new products and
greater variety for their choice. The improvement in FDI flows reflected the
The Government’s proposal to increase the FDI cap in the insurance sector from
contingency.
-- Justice Tindall
premium assumes particular risks of the other party and promises to pay to him
-- E.W.Fitterson
--Encyclopedia Britannica
spread the loss caused by a particular risk over a member of persons who are
exposed to it and who agree to insure themselves against risk. Insurance does
not eliminate risk but only reduces the financial burden, which may be very
heavy.
FINANCE DEPARTMENT
HDFC Standard Life, one of the leading private life insurance companies in India
declared its annual results for the financial year ending March 31, 2008. The company
generated New Business Premium Income of Rs. 2,685 crores in FY2007-08 registering a
year-on-year growth of 63%. The growth was primarily driven by the success of the
company's initiative on structured sales processes based on customer needs and their
assessments.
HDFC Standard Life, one of the leading private life insurance companies in India
declared its annual results for the financial year ending March 31, 2008. The company
generated New Business Premium Income of Rs. 2,685 crores in FY2007-08 registering a
year-on-year growth of 63%. The growth was primarily driven by the success of the
company’s initiative on structured sales processes based on customer needs and their
assessments.
Mr. Deepak Satwalekar, MD & CEO, HDFC Standard Life attributed this growth to the
quality of life insurance solutions offered by the company and its increased geographical
reach. He also emphasised, “We believe that our success is a result of our efforts in
giving customers, the best long-term solutions to take care of their insurance needs. Our
endeavour to provide high quality insurance and pension solutions to customers through
quality pre-sales advice, based on a sound need-based solutions approach, and post-sales
service has started to pay off.”
Highlights of Financial Year 2007-08
• New Business Premium Income up by 63% to Rs. 2,685 crores. Total Premium
Income is up by 70% at Rs. 4,859 crores as against Rs. 2,856 crores in FY2006-
07
• Alternate Channels including bancassurance has recorded an impressive growth
of over 63% to contribute 41% to the Effective Premium Income (EPI)
• Group business funds under management have increased to Rs. 959 crores,
registering a growth of 83% over FY2006-07
• The average premium has increased to Rs. 33,000
• Company products and services are now available in 726 cities and towns across
the country
• Strength of Financial Consultants has increased to 1,45,000.
HDFC Standard Life tracks its New Business Premium on the basis of Effective Premium
Income (EPI). EPI is calculated by giving only a 10% value to a Single Premium policy
and is an internationally accepted indicator of an insurance company’s performance. The
total premium income (including renewal premium) grew by 70% to touch a figure of Rs.
4,859 crores. High levels of persistency have resulted in higher level of renewal
premiums. Although there has been a slight dip from 89% to 86%, we continue to have
the highest persistency level in the industry. The cumulative sum assured for all policies
issued upto March 31, 2008 crossed Rs. 87,000 crores.
In offering unit linked products, the structured sales process adopted by the company has
paid rich dividends. “We believe that we should be able to lengthen the maturity profile
of our policy portfolio, now that the regulatory disincentive has been removed with effect
from April 1, 2008,” added Mr. Satwalekar. HDFC Standard Life offers, both, life
insurance policies as well as pension products on a unit linked platform as also the
conventional ‘with profits’ platform.
Over 50% of the sum assured as on March 31, 2008, is in respect of non unit-linked
policies. Over 30% of funds under management are in respect of non-linked business,
which reflects the balanced book between conventional and unit-linked business in the
total portfolio of the company.
The company’s national relationships with large public and private sector banks have also
helped it reach out to a larger number of customers across the country. The company
plans to further strengthen these relationships through the introduction of products
specially designed for this channel.
HDFC Standard Life continues to have one of the widest reaches among new insurance
companies. The company strengthened its number of offices from 103 to 572 across the
country in less than 3 years. Through these offices, the company today services customer
needs in over 726 cities and towns. The company also increased its depth in existing
markets by increasing its Financial Consultant strength from 74,000 as on March 31,
2007 to 1,45,000 as on March 31, 2008. There has been a huge jump of 300% over the
last 3 years in the number of its Financial Consultants who have qualified to become
members of the prestigious Million Dollar Round Table (MDRT) Club. The strength of
MDRT qualified members has gone up to 496 as on December 31, 2007.
As against the regulatory requirement of writing 18% of all policies in rural areas, HDFC
Standard Life has issued over 217,000 policies accounting for 23% of all policies issued
during 2007-08. Additionally, during 2007-08, HDFC Standard Life has covered 51,326
lives under the social sector category, as against the requirement of 25,000 lives. Overall,
the company has covered over 9,59,000 lives during the year ending March 31, 2008.
To meet the demands arising from the company’s rapid growth, shareholders have
contributed additional Rs. 470 crores of equity to take the paid-up share capital as on
March 2008 to Rs. 1,271 crores.
RECRUITMENT PROCESS
The chief attributes HDFC SL looks out for in a candidate.
Making an Application
Assessment Process
• We conduct relevant assessments like psychometric tests and written exercises -
these will be part of the selection process
• The interview panel will ask questions which will assess your knowledge, skills
and attitude. You will also have your queries addressed.
HDFC Standard Life continues to have one of the widest reaches among new insurance
companies. The company strengthened its number of offices from 103 to 572 across the
country in less than 3 years. Through these offices, the company today services customer
needs in over 726 cities and towns. The company also increased its depth in existing
markets by increasing its Financial Consultant strength from 74,000 as on March 31,
2007 to 1,45,000 as on March 31, 2008. There has been a huge jump of 300% over the
last 3 years in the number of its Financial Consultants who have qualified to become
members of the prestigious Million Dollar Round Table (MDRT) Club. The strength of
MDRT qualified members has gone up to 496 as on December 31, 2007.
As against the regulatory requirement of writing 18% of all policies in rural areas, HDFC
Standard Life has issued over 217,000 policies accounting for 23% of all policies issued
during 2007-08. Additionally, during 2007-08, HDFC Standard Life has covered 51,326
lives under the social sector category, as against the requirement of 25,000 lives. Overall,
the company has covered over 9,59,000 lives during the year ending March 31, 2008.
To meet the demands arising from the company’s rapid growth, shareholders have
contributed additional Rs. 470 crores of equity to take the paid-up share capital as on
March 2008 to Rs. 1,271 crores.
ADVERTISEMENT AND SALES PROMOTION
And hands him the cheque. Dad looks Daughter: “Relax dad, plan kiya.”
at the cheque and questions. Dad doesn’t know what to say: “Par...”
Dad (seriously): “Itne paise aaye
kahaan se?”
Dad doesn’t know what to say as he Mother enters with tea. She senses
looks at the cheque. something serious and questions
Daughter pleads: “Please…dad” them.
Mother: “Aree Kya hua?”
Father looks at her and says Super: Unit Linked Savings Plans
emotionally. MVO: “Unit Linked Savings Plans
Dad: “Car badi ho gayi, aur beti bhi.” from HDFC Standard Life. zimmedari
Daughter smiles with pride. nibhao, Aaj bhi kal bhi ”
PRODUCTION DEPARTMENT
benefits to their employees. This section gives you details of all our products.
plans that assist and nurture dreams apart from providing protection. You can
For organisations we have a host of customised solutions that range from Group
These affordable plans apart from providing long term value to the employees
Individual Products
We at HDFC Standard Life realise that not everyone has the same kind of
needs. Keeping this in mind, we have a varied range of Products that you can
choose from to suit all your needs. These will help secure your future as well as
Protection Plans
You can protect your family against the loss of your income or the burden of a
loan in the event of your unfortunate demise, disability or sickness. These plans
offer valuable peace of mind at a small price. Our Protection range includes our
Investment Plans
Our Single Premium Whole Of Life plan is well suited to meet your long term
investment needs. We provide you with attractive long term returns through
regular bonuses.
Pension Plans
Our Pension Plans help you secure your financial independence even after
retirement. Our Pension range includes our Personal Pension Plan, Unit Linked
Savings Plans
Our Savings Plans offer you flexible options to build savings for your future
needs such as buying a dream home or fulfilling your children’s immediate and
future needs. Our Savings range includes Endowment Assurance Plan, Unit
HDFC Standard Life has the most comprehensive list of products for
progressive employers who wish to provide the best and most innovative
We offer different products for different needs of employers ranging from term
insurance plans for pure protection to voluntary plans such as superannuation and
leave encashment. We now offer the following group products to our esteemed
corporate clients:
Also suitable for other employee benefit schemes such as salary saving schemes
Efficiency of Operations
significant manner for the purpose of framing out necessary conclusion and findings
of data perceived and formulated for deriving out the meaningful information. To
of research process where the data is collected via two process: - i) Primary Sources
and personal observation and is original in nature and accurate to the considerable
extent.
ii) Secondary sources: -Where the data is obtained from some published
published sources is then processed to obtained necessary inferences and findings for
considerable skill and knowledge is involved in analyzing the data for the purpose of
interpreting thereof.
.
TYPES OF RESEARCH
There are two types questionnaire bing carried necessary for the market survey
of the summer training being undertaken and put for the by the trainee to the
a) Open ended Questionnaire: - where the people (also called respondents) are
required freedom to present their views and suggestions for the benefits and success
of the organization.
of answer being delivered by the interviewer itself so that quick and fast means of
responses be derived out without wasting much time. Here close ended questionnaire
being followed by me during the course of the summer training market survey.
base for the entire population since entire population can not be asked about the
necessary objective upon which a questionnaire is put forth needed for the
responses to be derived for the purpose of generation of facts and customer view
sampling.
sample size randomly and no choice or preference to be made about the selection of
respondents for the market survey and questionnaire to be put forth against him.
selected respondents is figured out based on some criteria so that only those
The word data Mpesceans any raw information, which is either quantitative or qualitative
in nature, which is of practical or theoretical use. The task of data collection begins after
a research problem has been defined and research design chalked out. While deciding
about the method of data collection, the researcher should keep in mind that there are two
types of data primary and secondary.
Primary data: -
This is those, which are collected afresh and for the first Time, and thus happen to be
original in character. There are many ways of data collection of primary data like
observation method, interview method, through schedules, pantry Reports, distributors
audit, consumer panel etc. The Team Managers and employees of both the Department
were consulted to get information about procedure of both the online and off line share
trading. But the method used by us for the primary data collection was through
questionnaires.
Secondary data: -
These are those data, which are not collected afresh and are used earlier also and thus
they cannot be considered as original in character. There are many ways of data
collection of secondary data like publications of the state and central govt., reports
prepared by researchers, reports of various associations connected with business,
Industries, banks etc. And the method, which was used by us, was with the help of reports
of the company
INFORMATION AND DATA RELATED TO TOPIC
MARKET SURVEY
40
30
20 16
10
0
Prote ction of Tax be ne fit de vice B oth
human as s e t value
agains t unce rtainty CATEGORY
From the survey it was drawn that life insurance is more a protection of human
Both 16
IS LIFE IN S UR AN CE ES S EN TIAL?
78
80
70
60
RESPONDENTS
50 27
NO. OF
40
30
20
10
0
Ye s No
R ES P O N S ES
It has been observed and applied as a Life insurance is an essential service and
10 %
57%
When further enquired about the qualification of respondents, it was found that
57% of the respondents were graduates, 33% were post graduates and remaining
10% were of higher secondary out of total 105 respondents. Further depicted in
Post graduate 35
Graduate 59
Senior secondary 11
AGE QUALIFICAITON:
6%
20%
39% 18-25 age group
25 – 35 age group
35 – 45 age group
Above 45 age group
35%
Further, the age qualification for agency recruitment, it was found that 39%
35 age group where as 20% to 35 -45 age group and remaining 6% to above 45
25 – 35 age group 37
35 – 45 age group 21
10%
23%
Low employment
16%
Low earning / income
Low status
17%
34% Huge capital investment
Respondents had different views about the dissatisfaction from the present status
graphically above:
Low earning 3
70
59
60
46
RESPONDENTS
50
40
NO. OF
30
20
10
0
Yes RESPON SES No
When asked about whether they would like to know about a glorified career in
life insurance agency where they can fulfill any and every desire of their life, 59
respondents agreed while 46 respondents said No and will see later sometime in
future. It has been depicted that life insurance sector should be promoted at the
wide extent as it contribute to the economy as a useful source beneficial for both
100 86
80
RESPONDENTS
60
NO. OF
40 19
20
0
Ye s No
R ESPON SES
support in the situation of fatal calamity where the family is deprived by the fact
to live in future and sustains their living. When surveyed about life insurance as
disagreement.
ACCEPT LIFE IN S UR AN CE AS A CAR EER ?
50
41
40
RESPONDENTS
30 18
NO. OF
20
10
0
Ye s No
R ES PO N S ES
From the 59 respondents who agreed to know about the life insurance as a
career, 18 of them agreed to join HDFC Standard life insurance for agency and
come to the company fore more information whereas 41 still took time to think
and postponed to some future date. People are highly dissatisfied from the
earning, status and living standard they are sustaining at present and would
definitely like to make some additional source of earning and for this agency for
60
40 13
20
0
Ye s No
R ES PO N S ES
From all 105 respondents, 92 agreed that life insurance sector is a growing
concern and will grow at a rapid pace in future where as 13 took as a mere
are urging to make their investment in lucrative opportunities and therefore life
insurance sector is playing a vital role in educating the people to make their
investment which could secure their future, needs and living despite some fatal
50
40 31
30
20
10
0
Ye s No
R ESPON SES
life insurance and perceive that the people of India will know be more aware and
knowledgeable with respect to life insurance than that in the past 50 years with
even though people have become more advanced and they can invest their hard
earned money after undertaking their pros nad cons and company position in the
market.
FINDINGS
• Training enables employees to secure promotions easily. They can realize their
career goals comfortably.
• Employees can avoid mistakes on the job. They can handle jobs with confidence.
They will be more satisfied on their jobs.
• Training can contribute to higher production and fewer mistakes, greater job
satisfaction and lower employee turnover. Also, it can enable employees to cope
up with organizational, social and technological change.
RECOMMANDATION
1. Need to train and develop life insurance agents with more comprehensive
2. It is suggested that company should not left any stone unturned towards
on sales and marketing of financial servies who can render their best ideas for the
4. Also, care need to be taken that every customer’s grievance should be met
the needs of customer so that they can be inspire and motivated to invest.
CONCLUSION
In this Knowledge-based economy, training helps people to learn how to do the
things differently or to the different things. Products are now increasingly knowledge-
intensive; for this employers are responsible for providing opportunities for continued
learning. To cope with the challenges and competitiveness in the world, every
organization needs the services of trained persons for performing the activities in the
systemic way. So, training program plays a key role in individual as well as
organizational performance.
BIBIOLIOGRAPHY
Following are sources which helped me during my summer training:
BOOKS:
MAGAZINES:
India Today
Business World
REFERENCES
Websites: -
www.hdfcinsurance.com
www.irdaindia.org
www.liccouncil.org
www.businessconnect.com
APENDIX
Questionnaire
Name: - ……………………………………………………………
Age:- ……………………………………………………………
Location: - ……………………………………………………………
Occupation: -……………………………………………………………
c) Both
Q.2. Do you think life insurance is essential for every one?
a) Yes
b) No
a) Post graduate
b) Graduate
c) Senior secondary
b) 25 – 35 age group
c) 35 – 45 age group
a) Low employment
c) Low status
d) Huge capital investment
Q.6. Would you like to know about a career in life insurance advisor ship
a) Yes
b) No
Q.7 Do you perceive that life insurance business is a noble service oriented
business?
a) Yes
b) No
Q.8. Would you like to become or opt for life insurance advisor under
a) Yes
b) No
Q.9. Do you agree that the life insurance business is a growing industry and
a) Yes
b) No
a) Yes
b) No
Suggestions: -
1. ……………………………………………………………
2. ……………………………………………………………
3. ……………………………………………………………
4. ……………………………………………………………
5. ……………………………………………………………