MINOR PROJECT ON

HDFC Standard Life Insurance Company Ltd

CUSTOMER-BUYING BEHAVIOR
Submitted In Partial Fulfillment of the Requirement Of Bachelor of Business Administration

SUBMITTED TO: MISS.MANISHA SETHI Project guide (internal) 01012401709

SUBMITTED BY: RADHIKA MEHRA

Delhi institute of rural development, Nangli Poona) (Affiliated to Guru Gobind Singh Indraprastha University)

DECLARATION

I hereby declare that this Project Report titled HDFC STANDARD LIFE INSURANCE CUSTOMER BUYING BEHAVIOR submitted by me to Delhi Institute Of Rural Development, NANGLI POONA is a Bonafide work undertaken during the period from 24th may 2010 to 31st July 2010 by me and has not been submitted to any other University or Institution for the award of any degree diploma / certificate or

published any time before.

Date: Radhika Mehra 01012401709 (2009-2011) Signature of the Student

/ 2010

BONAFIDE CERTIFICATE
This is to certify that as per best of my belief the project entitled HDFC STANDARD LIFE INSURANCE CUSTOMER BUYING BEHAVIOR is the Bonafide research work carried out by Radhika Mehra, student of BBA, DIRD, NANGLI POONA, New Delhi during May-July 2010, in partial fulfillment of the requirements for the Minor Project of the Degree of Bachelor of Business Administration. She has worked under my guidance. Counter signed by -------------

Dr. A.K CHOUDHARY Director Date:

MISS.MANISHA SETHI Project Guide (Internal) Date:

ACKNOWLEDGEMENT
First of all I will thank to our director sir Dr. A.K CHOUDHARY, who give me the valuable suggestion for my minor project. The success of this final report is the outcome of Guidance and Valuable suggestions provided by the all concerned without which the report could not fide on the right back. I express my sense of deep gratitude to Faculty Coordinator MISS.MANISHA SETHI for inclusions and timely suggestions in the preparation of this final report. Finally ,I will be failing in my duty, if I do not thank my parents, brother, friends and well wishers for their enthusiastic support and who have directly or indirectly helped in some way or the other in making this final report a success.

Name: Radhika Mehra

BBA 01012401709

EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70- 80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector and HDFC Standard Life Insurance Company Ltd has The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have adequate agents in the market they can capture big market as compared to the other companies.

The company should also provide the promised benefits to the customers to spread the positive word of mouth. This mode is very effective in building a popular and trusted brand in the market.

CHAPTER 1

INTRODUCTION

History of insurance
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 industr y fairness, solidity, growth and

reach. Defination ofInsurance insurance is a contract between two parties where by one party is called insurer undertakes in exchange for a fixed sum called premium , to pay other party happening of certain event.

TYPES OF INSURANCE

Insurance can be termed as a form of risk management which is mainly used to protect an individual against the risk of prospective financial loss, if any. Insurance can be used as a tool to shield an individual against potential risks like travel accidents, death, unemployment, theft, property destruction by natural calamities, fire mishaps etc. Different types of insurance is used to cover different properties and assets such as vehicles, home, health care etc. Basically, an insurance policy can also be known as a protection net which secures you from any financial losses in future. All you have to do is pay the insurance agencies a specified amount every month, known as premium, so that they can take care of you by providing you financial back up in case of a sudden health emergency or a fatal incident. Ther are two ways for getting an insurance done.

One way is to visit an agent and consult him for the best option you can avail for your situation. And then, trust him/her for their suggestion on the type of insurance they feel is right. The other way is to research and choose on your own, the type of insurance which will be

best suited for your situation. You should research the market as well as the net, to look for the best insurance companies, and further more, the most suitable type of insurance thattheyoffer. Also explore the various types of policies which are available to you in the market, and then compare to decide which one to choose finally. HealthCareInsurance With such high medical and health care costs these days, its hard to even think about visiting a doctor. But what about an unexpected mishap or an unforeseen disability or attack, where the potential medical bills could shoot up to a sky? Where would you get so much money from? These are exactly the situations where you feel you had a security, something which could come to your rescue and save you from such financial crisis. While some companies do provide its employees with health insurance, for others, this is a must. Especially for the aging couples, who have a comparatively more chances of needing emergency bill money. The health insurance does it all, so that they do not have to worry for the huge payments at the last minute. A health insurance can cover all from a routine immunization to a major illness. LifeInsurance Loss of a family member is a catastrophe which glooms a familys life. But even more tragic is the death of a sole bread earner for the family, who then has to go through the pain of losing their loved one, as well as the financial loss putting their survival in jeopardy. This financial hardship due to a sudden death of a family member or a disability resulting to a loss of job or inability to work can be avoided to a great extent by taking up a life insurance policy. A Life insurance or disability insurance covers such losses and pays a family, compensation to restore the earnings lost by them due to a sudden death or disability. The monthly premiums for a life insurance are generally based upon the age, health, and occupation information of the applicant, in addition to the total benefits to be paid to him for his policy. HomeInsurance Real estate property and hard assets are subject to accidental risks like theft, destruction due to natural disasters or fire accidents etc. with such huge investments gone into buying a real estate property like your home or office, the risk involved is a loss of large amount of money.

Home and property insurance helps you in managing and protecting against these risks. The cost of a real estate property and its insurance is mostly based upon the worth of the already insured hard assets and also the location in which the assets are situated. TravelInsurance This is intended to cover any of the financial or any other losses which were incurred by the insured while traveling, be it nationally or internationally, such as mountain trekkers, cruisetc. Autoinsurance Any vehicle on road, no matter how safe its driver is, is bound to meet with an accident or two, which may leave it with just a few scratches, or crash it up totally. Most countries today require you to have an auto insurance while on road in your vehicles. If you have an accidental car crash, a total repair could cost you a fortune. On the other hand, a little scratch on your Land Cruiser might also soar up your bills to a high. Whether or not you need an auto insurance mostly depends on the type of car you own. If you have an expensive car and a little repair could wipe you out financially, you should very well go in for a buying an all-inclusive and crash insurance which could protect you

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

MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread the message of life insurance in the countr y and mobilise peoples savings for nation-building activities. LIC with its central office in Mumbai and seven zonal offices at Mumbai, Calcutta Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in important cities and 2,048 branch offices. LIC has 5.59 lakh active agents spread over the country. LIC has even provided insurance cover to five million people living below the poverty line, with 50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95 per cent and GIC'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. HDFC Standard Life Insurance Company Ltd

HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life 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.), Indias leading housing finance institution and The Standard Life Assurance Company, a leading provider of financial services from the United Kingdom. They have managed to cover over 11,00,000 individuals out of which over 3,40,000 lives have been covered through our group business tie-ups. Max New York Life Insurance Co. Ltd. Max New York Life Insurance Company Limited is a joint venture that brings together two large forces - Max India Limited, a multi-business corporate, together with New York Life International, a global expert in life insurance. With their various Products and Riders, there are more than 400 product combinations to choose from. They have a national presence with a network of 57 offices in 37 cities across India. . ICICI Prudential Life Insurance Company Ltd ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). The company has a network of about 56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups.

Om Kotak Mahindra Life Insurance Co. Ltd. Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc

Birla Sun Life Insurance Company Ltd Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and Sun Life financial Services of Canada.

Marketing of Insurance In India

Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also a sector, which leads to benefits across the full spectrum, from the individual who now have wider choices, to the economy, which see increased savings, to the infrastructure sector, which can look forward to long term funding being available. In an under-insured economy, newer channels of distribution have to be utilized to intensify the reach of insurance both in urban and rural markets. This will create huge employment opportunities not only within insurance companies but also as agents and consultants of insurance companies.

Marketing Mix Policies

Different companies can choose to position themselves differently and hence the Marketing Mix is different. However, there are certain common char acteristics that one can cull out from the possible strategies that companies adopt . Product:

The development of flexible products to suit individual requirements is what will differentiate the winners from the also-rans. The key to success is in providing insurance solutions, not standardized insurance products. The concept of riders/optional benefits has already been a huge. innovation brought about by the new players, which has led to customization of products for individual needs. However, companies may differentiate themselves on the basis of product segments that they choose to focus on and excel in

Place: 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 sales, new business underwriting, policy servicing, premium payments, claim processing and so on. Technology can play a crucial role in delivering the highest standards of service set by the company and it will be imperative for any serious player to excel in all of these. Price: 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 annuities. Here too, service delivery and financial strength will need to be present at a minimum long- term returns generated are more relevant than just the price of the product. A focus on generating good investment performance and keeping a tight control on costs 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.

Promotion and Advertising: The level of demand is latent and will have to be activated considerably. The market needs to be developed. Greater awareness of insurance and the need to have it as a protection tool rather than as a tax planning measure needs to be appreciated by the Indian people. Various communication tools including advertising, direct marketing and road shows contribute to all this and different companies take different approaches on

these. Process: Cashless settlement: One of the most defining and customer-friendly changes that weve seen in recent years relates to the way claims settlements are made. The advent of the third-party administrator (TPA) regime has facilitated the transition to the hugely convenient era of cashless settlement of health and auto insurance claims. TPAs are entities who process claims on behalf of insurers: the IRDA licenses them after it is satisfied that they have the financial strength, the trained manpower, the infrastructure and the skills to undertake this activity Likewise, with auto insurance, the TPA ties up with garages and authorized service centers for cashless settlement of auto insurance claims. Lower premiums: The spirit of competition and the broadening of the risk experience of insurance companies have contr ibuted to a fall in premiums over the years. Thats because, other things being equal, an insurer who covers the lives just of 10 people bears a higher risk than an insurer who covers the lives of, say, 100 people. Further, a broader base will provide greater efficiencies on costs such as distribution, management and claims. A broad basing of the mortality experience, therefore, gives insurers the elbowroom to compete by lowering premiums and that trend is expected to continue. People: The most important factor that materializes sales and maintains customer relationships on a long- term basis is this factor. No matter what distribution strategy a company adopts, customer relationship has to be taken care of in order to maintain the customer base on a long-term basis.

OBJECTIVES OF STUDY
To study about the awareness among the people for joining as agent in life insurance companies. To know the role and scope of financial consultant in life insurance companies. To know the perception of consumer about life insurance. To do the swot analysis of hdfc standard life insurance. To know the different products offered by hdfc standard life insurance.

CHAPTER 2

COMPANY PROFILE

HISTORY
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 Rs. 36,000 Cr. Stable and experienced management. HDFC Standard Life Insurance offers a range of individual and group solutions, which can be easily personalized to specific needs. Its group solutions have been planned to offer complete flexibility, together with a low charging structure. As of 31 December, 2008, the Company's new business premium income stood at Rs. 1,839.70 Crores; it has

covered over 812,811 lives so far. Given below is a comprehensive list of policies and products on offer by HDFC Standard Life Insurance: Gross premium income, for the year ending March 31, 2009 touched Rs. 5,564.69 crore As on March 31, 2009, it has over 27 lakh polices in force and Our gross premium income, for the year ending March 31, 2010 stood at Rs. 7005 crores and new business premium income stood at Rs. 2,561 crores. Their key strenths lie on their financial expertise range of solution as mentioned earlier and their immpacable track record thus far. Their trained sales force state of the art technology and appropiate system and processes are all considered in ordre to acieve the highest possible standard in customer sevice. The company is to set the standard of the company by offering the best value of money. They want to be the most trusted brand in the insurance business and they aim to be the easiest company to deal with when it comes to their valuable client , shareholders and employees.

It is a commercial bank of India has many branches all over India. HDFC Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company of India. HDFC bank allows users to use ATM outside the Country without any extra fees. HDFC Bank online banking is available for users. That means you can open HDFC bank account online and check HDFC account status online. Most of the people of India like HDFC Standard Life Insurance policy plans and products. HDFC Standard Life Insurance company is one of leading private insurance companies, offering a range of individual and group insurance solutions in India. Here you can catch all life insurance plans of HDFC Standard Life Insurance Policy. HDFC Standard Life Insurance Policy plans are so simple. You can make a better future of your own and also your family with opening a HDFC Standard Life Insurance Policy. HDFC Standard Life Insurance also allows you HDFC Standard Life Insurance online payment. You can pay HDFC Standard Life Insurance premium online. You can buy HDFC Standard Life Insurance Policy online. Here is a list of policies and products offer by HDFC Standard Life Insurance

PLANS FOR HDFC STANDARD LIFE INSURANCE HDFC Standard Life realize 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 the future of your famil

Protection Plans

HDFC Term Assurance Plan HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection Plan HDFC Children's Plan HDFC Unit Linked Young Star II

Children's Plans

HDFC Unit Linked Young Star Plus II HDFC Unit Linked YoungStar Champion HDFC Personal Pension Plan HDFC Unit Linked Pension II HDFC Unit Linked Pension Maximiser II HDFC Immediate Annuity HDFC Unit Linked Endowment Plus II HDFC SimpliLife HDFC Unit Linked Endowment II HDFC Unit Linked Enhanced Life Protection II HDFC Unit Linked Wealth Maximiser Plus HDFC Unit Linked Endowment Winner HDFC Endowment Assurance Plan HDFC Money Back Plan HDFC Single Premium Whole of Life Insurance Plan HDFC Assurance Plan HDFC Savings Assurance Plan HDFC Critical Care Plan HDFC SurgiCare Plan

Retirement Plans

Savings & Investment Plans

Health Plans

Group Plans

Group Term Insurance Plan Group Variable Term Insurance Plan Group Unit Linked Plan - Gratuity

Group Unit Linked Plan - Superannuation Group Unit Linked Plan - Leave Encashment

HEAD OFFICE Trade Star 2nd floor, A WingJunction of Kondivita and M.V, RoadAndheri-Kurla RoadAndheri (East), Mumbai : 400059, Maharashtra ,India .

BRANCHES They have so many branches and substations in the India. They have around 160 branches in the India. And they have planned to open more branches across the country in the coming months.

MANAGING DIRECTOR AND CEO: The managing director and ceo of standard lifi insurance company is Mr.Deepak satwlekar. AWARDS AND ACHIEVEMENTS:

Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in 2004 Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in 2004 finance magazine

HDFC KEYS STRENGHS

Financial expertise as a joint venture of leading financial sevices group HDFC Standard life has the financial expertise required to manage your long term investment safely and efficiently. Range of solution HDFC Standard have a range of individual and group solution , which can easily customized to specific needs . and its group solution is designed to offer the complete flexibility combine with a low charge structure.

Track record so far

Its gross premium income for the year 31st march 2008 stood at Rs 4859 crores and new business premium income stood at Rs. 2685 crores. The company has cover over 959000 year ending march 2008

Our Vision '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'.

Our Values Values that we observe while we work. Integrity Innovation Customer centric People Care One for all and all for ones Teamwork Teamwork

RECRUITMENT Process in HDFCSLIC

Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. In this company the Sales Manager, who recruits the advisors/agents for selling the products of the company, does the recruitment. The advisors should have at least passed the S.S.C. examination. They must pass the pre recruitment examination, which is conducted by the Insurance Institute of India, Mumbai, or any other approved examination body. After clearing theExamination the code will be provided to them and the license will also be given to them, the validity the license would be 3 years. After all these requirements, the person will become an insurance advisor in the company. SELECTION Selection is the process of picking individuals (out of the pool of job applications) with requisite qualifications and competence to fill job in the organization. In simple words, it is the process of differentiating between applicants in order to identify these with a

greater likelihood of success in a job. The Branch Manager, will conduct the process of selection of Sales Manager. Personal Interview: The first step of selection of Sales Manager in HDFC Standard life insurance corporation is to conduct a personal interview of an applicant by the Branch Manager. Interview with Regional Head: After clearing the project 40 interview, the applicant should be interviewed by the Regional Head, who will check his/her performance. Negotiation: After clearing the interview with Regional Head, the negotiation will be provided to the applicant. Medical Examination: After that, the medical checkup should e made to the applicant. Selection: After clearing all the above steps the applicant should be appointed /selected as a Sales Manager in the company. TRAINING AND DEVELOPMENT:Training and Development is any attempt to improve current or future employee performance by increasing an employees ability to perform through learning usually by changing the employees attitude or increasing his/her skills and knowledge. The need for training and development is Determined by the employees performance deficiency, computed as follow: CAREER DEVELOPMENT They are also providing career development plans, which will identify potential and create avenues for growth.

INCENTIVES Incentives are monetary benefits paid to workmen in recognition of their outstanding

performance. They are providing an aggressive reward and recognition plans, which are including sales incentives.

SERVICES They are offering following certain services to their employees.

They are providing knowledge sharing and certification practices. They are planned team building and fun events.

SWOT ANALYSIS SWOT analysis is the analysis of the internal and external factors, which have impact on the survival of any organization. STREANTH: Stong brand name a large distribution network customer centric approach execution in excellence team work good infrastructure

WEAKNESSES: Frequent job rotation by employees less number of advertisement hidden charges OPPORTUNITY: Only 25% of insurable people have any insurance can introduce innovative products offering a right mix of flexibility / risk / return share of fdi is going to raise by 26% to 49%.

THREATS: People prefer short investment rather than insurance. Other private insurance companies

CHAPTER 3
LITERATURE REVIEW

Major Insurance Industry Trend

Although the insurance sector has had at least one spectacular disaster during the current financial crisis, in the shape of the huge losses sustained by American International Group (AIG), it has, by and large, not been nearly as badly damaged by the crisis as the global banking sector. In a considered paper on the impact on the sector of the crisis, Zurich Re author, Marian Bell, argues that although insurers and banks are both suppliers of financial services, and together constitute the bulk of the financial services industry, they remain very distinct businesses, with different regulatory regimes, and a different approach to risk. Thus, it is not surprising that the financial crisis has affected the two related businesses of banking and insurance differently. The insurance sector has been exposed to the current financial crisis in several ways. It invests in equities, and, substantially, in banking stocks (which gives it exposure to bank losses through share price losses in its investment portfolio), and in corporate investmentgrade bonds, about 60% of which come from the finance sector. Insurance companies have also, in recent years, become much more involved in the capital markets, with some insurance lines being securitized and sold to the capital markets. However, this does not pose as great a risk as the banks investing in asset-backed securities, many of which turned toxic as the US subprime mortgage crisis developed. The International Association of Insurance Supervisors (IAIS), which represents insurance regulators and supervisors from some 190 jurisdictions around the world, has a

clear view of the global insurance industry. In a communiqu issued on December 17, 2008, it said that the global reinsurance sector remains resilient amid the financial crisis. The IAIS made the remarks in the context of publishing its fifth annual overview of the financial conditions of reinsurers, the Global Reinsurance Market Report 2008. The overview assessed the reinsurance markets stability and interrelated risks, as well as the impact of the current turmoil on the sectors ability to transact business. The point is that reinsurers, who can be thought of as the companies to which insurance organizations hand off some of their book risk, so as to dilute their own positions, play an important role in the functioning of efficient insurance markets across the world. They act like shock absorbers, particularly in providing disaster coverage. The reinsurance business, as is true for the whole insurance sector, is very cyclical, with good years and bad years. Another cycle in the sector is that of hard pricing versus soft pricing. Hard pricing, basically, takes over after the sector has endured one or more particularly bad years, and the cost of insurance across a whole range of lines of business rises sharply. Normally, the capacity in the industry is enough to ensure that competition for business keeps prices on the low side. Any insurance company that tries to raise prices finds its customers going elsewhere, so no single organization has the power to harden prices. This can only happen when capacity is taken out of the industry, again, usually after companies have made losses through massive payouts on disasters. The IAIS points out that, following record losses in 2005, particularly hurricane losses and flood damage, both 2006 and 2007 were profitable years for the reinsurance sector. This gave the sector a solid financial base to weather the challenges of the financial crisis, the IAIS says. Zurich Re, in its report, quotes the IAIS as saying that no insurers have, so far, experienced liquidity difficulties as a result of the recent market turmoil. They have all remained open for business, and have been transacting business in a way that the banks clearly have not. In all, the Zurich Re report says, insurers exposure to the toxic asset-backed securities market amounts to no more than 1% of assets in aggregate. In effect, the report says that the upturn in the insurance industrys pricing cycle in 2008, with prices hardening in some lines of business, led insurers to start redeploying their capital away from potentially dodgy derivatives investments, and back into their core lines of business.

It is important to understand the difference between the types of risk run by the two sectors. As the Zurich Re report notes, the banking sector invested in products where the underlying risk is a financial or market risk (such as credit worthiness, price volatility, or exchange-rate volatility). Insurance-linked securities, on the other hand, are products where the underlying risk is a real event, such as a natural catastrophe, a fire, or a motor accident. The various types of financial risk can, in some circumstances, all turn out to be related, creating a perfect storm. With insurance risk, however, the events are fundamentally unrelated and uncorrelated. They are non-systemic, idiosyncratic risks. This means that in financial risks the risk can be aggregated in ways that prevent hedging strategies from working (all prices fall when markets collapse). The risks cannot be diversified away by investing in other financial and market risks, the report says. In contrast, insurance-linked securities offer the prospect of diversification and are not subject to the same degree of contagion as financial risk. Here again, this explains why the insurance sector has come out of the crash better than the banking sector.

CHAPTER 4

RE SEARCH METHODOLOGY

The above title is self explanatory. The study deals mainly with studying the buying pattern in the insurance industr y with a special focus on HDFC Standard Life Insurance. The various segments of the markets divided in terms of Insurance Needs, Age groups , Satisfaction levels etc will also studied. SamplingTechnique: Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judemental and convinent

Primary data: For the survey a sample of 150 people were considered. Out of these 70 of them are personally visited, rest information about 80 are gathered through online. Out of these 14 people havent responded, 36 responses were discarded and remaining 30 responses were complete to get data.

Secondary data: Secondary data consist of information that already exists somewhere, having been collected for another purpose. For this report secondary data is collected from website of different operators, different magazines, newspapers and libraries.

Sample size: -

Thus sample size of 100 respondents is taken. Because the population is too large so it is difficult to survey.

OBJECTIVE OF THE RESEARCH METHODOLOGY To determine reasons behind opting for an insurance To provide the company with information of customer's Insurance policy if they have any and reasons for opting for that particular policies. To determine customers perception towards private insurance companies and their expectation form private insurance companies To determine the feedback on services provided by any other insurance agent To study the types of benefits provided by insurance services To determine the use of Internet for valuable information and decision-making process.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industr y in recent times. A large number of new players have entered the market and are vying to gain market share in this rapidly improving market. The study deals with HDFC Standard Life in focus and the various segments that it caters to. The study then goes on to evaluate and analyse the findings so as to present a clear picture of trends in the Insurance sector.

SIGNIFICANE FOR THE RESEARCHER

To facilitate and provide all the useful informtaion of the studt, the company, the insurance industr y and also provide marketing ways, methods of HDFC Standard Life insurance.
RESEARCH DESIGN
NON-PROBABILITY EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The sources of infor mation are both primary & secondary A well-structured questionnaire was prepared and personal interviews were conducted to collect the customers perception and buying behavior, through this questionnaire

CHAPTER 5
DATA ANALYSIS

Market Research for the project was conducted in Delhi and Ghaziabad. It is a descriptive type of research and sampling for responses is simple random sampling. The sample size for the research is 100 for comparative analysis and 100 for recruiting Life Advisors. In the survey I have also found out the persons who are working and the students were keen in taking on line training as compared to housewives and retired persons.

Analysis Made By Responses :

Which Age Group buy insurance policy?

AGE GROUP 20-29 30-39 40-49 50-59 Above 60 TOTAL

IN PECENTAGE 35 31 18 5 11 100

Table No1.1: Age Group of the Customers

AGE GROUP

11% 5% 18% 35% 20-29 30-39 40-49 50-59 Above 60 31%

INTERPRETATION: As evident from the chart that I have taken a sample of 100. Out of which 35% people are aged between 20 to 29, 31% people are aged between 30 to 39, 18% people are aged between 40 to 49, 5% are between 50-59, and remaining 11% are above 60. According to above data, we get to know that People belong to Age Group 20-39 buys Insurance policies most. This shows, youth are more concerned towards saving or making investments to secure their today as well as tomorrow. This also depicts that, Youths are investing to get returns more, where as people belongs to age group 50-59 are investing for saving purpose in their retirement

What Are The Occupation Of Customers? TYPES OF OCCUPATION SERVICE BUSINESS SELF EMPLOYED RETIRED TOTAL PERCENTAGE 46 28 12 14 100

Table No1.2: occupation of customers

OCCUPATION

14% SERVICE 46% BUSINESS SELF EMPLOYED RETIRED 28%

12%

. INTERPRETATION: As the evident from the chart that out of 100 respondents, 46% are of service men, 28% are of business men, 12% are of self employed, and remaining 14% are of retired.

Data gives preference of respondents of insurance companies?

COMPANY NAME LIC

IN PERCENTAGE 30

HDFC ICICI Pru SBI Life RELIANCE life TOTAL

42 10 12 6 100

Table No1.3: occupation of customers

IN PERCENTAGE

6% 12% 30% LIC HDFC ICICI Pru SBI Life RELIANCE life 42%

10%

INTERPRETATION: 42% of the people contacted prefer HDFC LIFE policy to any other and therefore it is ranked no.1 by that percent of respondents. DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS?

BENEFITS Future uncertainity

IN PERCENTAGE 60

Tax deduction Future investment TOTAL

20 20 100

Table No1.4: occupation of customers

IN PERCENTAGE

20% Future uncertainity Tax deduction 20% 60% Future investment

INTERPRETATION: 60% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy Whereas, 20% and 20% of them believe that the other benefits are Tax deduction and future investments respectively What are the features of insurance policy that attract the respondents?

FEATURES Money Back guarantee Large Risk Coverance Low Premium

IN PERCENTAGE 20 38 30

Company Reputation TOTAL

12 100

Table No1.5: occupation of customers

IN PERCENTAGE

12%

20%

Money Back guarantee Large Risk Coverance

30%

Low Premium Company Reputation

38%

INTERPRETATION: Majority of the respondent (38%) found Larger risk coverance as the most attracted feature of the all.

Which type of policy does respondent have?

POLICY TYPE Life Policy Non Life Policy Both

IN PERCENTAGE 52 20 28

TOTAL

100

Table No1.6: occupation of customers

TYPE OF POLICY

28% Life Policy 52% Non Life Policy Both 20%

INTERPRETATION: 52% of the respondents have Life Insurance Policy while 28% have both

Have u heard about HDFC Standard Life Insurance Policy?

OPTIONS Yes No

IN PERCENTAGE 90 10

TOTAL

100 Table No1.7: occupation of customers

HDFC STANDARD LIFE INSURANCE

10%

Yes No

90%

INTERPRETATION: Of the sample size of 100 surveyed respondents 90% of the respondents are known about HDFC standard life insurance and other 10% did not even heard about the HDFC standard life insurance. Data shows the satisfaction of respondent with respect to insurance policy?

SATISFACTION Satisfied Not Satisfied Not Responding TOTAL

IN PERCENTAGE 60 30 10 100

Table No1.8: occupation of customers

SATISFACTION OF RESPONDENTS

10%

Satisfied 30% 60% Not Satisfied Not Responding

INTERPRETATION: 60% of the respondents are more or less satisfied with their existing policy 30% of the respondents are not satisfied with their existing policy and 10% of respondent have not responded . In which type of market will respondents invested their money?

TYPE OF MARKET Share Market Mutual Fund Insurance Others TOTAL

IN PERCENTAGE 14 15 23 48 100

Table No1.9: occupation of customers

INVESTMENT IN MARKET

14% Share Market Mutual Fund Insurance Others 23%

48%

15%

INTERPRETATION: 48% of respondents are like to invest money in other market whereas 23% of respondents are like to invest in insurance and 14% and 15% are like to invest in share market and mutual fund respectively.

Data shows the buying process of respondents?

BUYING PROCESS Customer Approach insurance Company Insurance Company Approach Customer TOTAL

IN PERCENTAGE 45 55 100

Table No1.7: occupation of customers

BUYING PROCESS

45% 55%

Customer Approach insurance Company Insurance Company Approach Customer

INTERPRETATION: As the evident from the chart out of 100 respondents 55% have approached by Insurance companies and remaining 45% have approached to the Insurance companies by own.

From the above analysis and interpretation following facts and findings are comi inti consideration: As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. The company should try to expand & build up its infrastructure because there is a large potential for insurance in India. Company should come up with its branch in Chennai. With the objective and goals to meet the demands & expectations of the public. Because the entrance of private players will increase the competition and it would be a tough task to secure a good position in market . Since HDFC STANDARD LIFE INSURANCE LTD is leading with several companies policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship. It is also find that HDFC Standard life insurance traditional plans are very useful for a normal person and the children plan is one of the most popular product of the company. As seen from the survey mostly the young generation is most preferring to buy the insurance policy to save their future uncertainity.and about 52% of the respondents prefer to buy life policy and 28% prefer both the policies that is life and non life policy. And the first and last the about 42%of respondents out of 100 is prefer to buy the HDFC Standard life insurance.

Following Is the Conclusion From The above Study: Our exhaustive research in the field of Life Insurance threw up some intresting trends which can be seen in the above analysis. A general impression that we gathered during Data collection was the immense awareness and knowledge among people about various companies and their insurance products. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money People in general have been impressioned by the marketing and adver tising campaigns of insurance companies. A high penetration of print , radio and Television ad campaigns over the years is beginning to have its impact now According to findings, it is depicted that this is the sector, which has most business opportunities perhaps in India. Insurance industry is one of the fastest sectors in India. Insurance sector has been growing by 25% to 30% and it is expected to increase by 50% in coming 5 years. After the opening up of the insurance sector, it has become much competitive and insurance awareness among people has increased. Only 19% of the total sample knows about more than 8 insurance companies. They dont know about the new entrants in the insurance industry. So private companies should use different channels to establish them and ensure their presence in the minds of customers Another heartning trend was in terms of people viewing insurance as a tax saving and investment instrument as much as a protective one. A very high number of respondants have opted for insurance for such purposes and it shows how insurance companies ahve been successful to attract public money in recent times. Life insurance service sector is highly growing. HDFC Standard Life Insurance is the private insurance organization which is developing and growing at fast rate. It is renowned for transparency and high corporate governance standard

The following is the limitation of study : The research is confined to a certain parts of INDIA and does not necessarily shows a pattern applicable to all of Country Some respondents were reluctant to divulge personal information which can affect the validity of all responses. . In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings. The opinion expressed by the respondents may be biased. The attitude of the research might be biased. Another limitation is that there is lack of time. If more time is given then studies will be more effective.

Following are the suggestion and recommendation for the HDFC Standard Life Insurance As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. The company should try to expand & build up its infrastructure because there is a large potential for insurance in India. Company should come up with its branch in Chennai. With the objective and goals to meet the demands & expectations of the public. Because the entrance of private players will increase the competition and it would be a tough task to secure a good position in market Since HDFC Standard Life Insurance Company Ltd is leading with several companies policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship Company must provide training to their agents and executives so that they can satisfy

customers doubts effectively. There must be good incentive schemes to be designed as these can acts as good motivators for the agents. The scheme of permanent job placement must be introduce for those advisors who have shown extra ordinary performance. . Increase in distribution sector. Provide proper training to workforce. The company should more oriented towards rural market. Provide lower premium policies so that we could target middle class people and generate good cash flow for futher growth. Changes in the policies should be communicated to the customers at the earliest.

BIBLIOGRAPHY

ANNEXURE

QUESTIONNAIRE

QUES 1Name Age Salary QUES 2 YES NO

PERSONAL DETAILS

ARE YOU EMPLOYED

QUES 3YES NO QUES 4 YES NO QUES 5.LIC

DO YOU HAVE ANY INSURANCE POLICY

WHICH INSURANCE POLICY DO YOU HAVE WHICHCOS INSURANCE POLICY YOU PREFER THE MOST

Icici Prudential life Reliance life insurance Max Newyork life Bajaj Allianz

QUES 6 - WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER COVER FUTURE UNCERTAINITY COVER FUTURE UNCERTAINITY FUTURE INVESTMENT ANY OTHER _________ (Specify

QUES 7-

ARE YOU SATISFIED WITH THE POLICY

SATISFIED SAVING TOOL NOT SATISFIED

NOT RESPONDING QUES 8-

WHICH IS THE BEST FORM OF INVESTMENTS

FIXED ASSETS BANK DEPOSITS SECURITIES, i.e. Bonds, MFs SHARES INSURANCE

QUES 9-

WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs

A TRUSTED NAME FRIENDLY SERVICE & RESPONSIVENESS GOOD PLANS ACCESSIBILITY

QUES 10- YOURE SUGGESTION (TO IMPROVE INSURANCE SECTOR)

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