PROJECT REPORT

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

BANKING
AND
INSURANCE

BY
SYBMS 07
ASHFAQ MALIK
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

Difference between public and private insurance sector

Conclusion
Questionnaire

DECLARATION

I ASHFAQ MALIK hereby declare that this “PROJECT REPORT“ is my work, carried out
under the guidance of my faculty guide Mrs NEELAM . This report neither full no
r in part has ever been submitted for award of any other degree of either this u
niversity or any other university.

ASHF
AQ
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
project work.

It gives me immense pleasure to express my deep sense of gratit

ude to Mrs NEELAM Faculty Guide , for her valuable guidance and consistent supe
rvision throughout the course of my Report.

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 t
he world.
It is a joint venture between Housing Development Finance Corporation L
imited (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 insti
tution in the country
.In India, the company is marketing life insurance products and unit lin
ked investment plans.
HDFC operates through almost 450 locations throughout the country with i
ts corporate head quarters in Mumbai, India
HDFC Standard Life, one of India’s leading private life insurance compan
ies, has revamped its corporate website ((www.hdfcinsurance.com) in line with it
s 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, w
hile 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 mo
ney, 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.HDF
C Standard Life insurance’s revenue has come down from Rs 33.07 crore in the fin
ancial year 2007-08 to Rs 27.77 crore in financial year 2008-09The company produ
ced sum premium revenue of Rs.5,564.69 crore as opposed to Rs.4,858.56 crore las
t year, posting a y-on-y increase of 15%.
Its revitalization premium also witnessed an increase of 34% for the economic ye
ar 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 est
imated 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
Analysis: Due to the economic downturn has hit the insurance industry. HDFC Stan
dard 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:
NAME OF INSURANCE COMPANIES
MARKET SHARE in %
LIC 72.15
HDFC Standard 3.88
ICICI 5.91
Birla Sun life 2.6
Bajaj Allianz 1.62
Tata AIG 1.5
SBI 1.19
AVIVA 1.8
MAX Newyork life 2.4
OM KOTAK 1.9
ING vysya 1.2
AMP SANWAR 1
METLIFE 1.4
OTHERS 1.45

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 an
d 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 F
Y2008-09 registering a year-on-year growth of 15%. The growth was primarily driv
en 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 un
expected events - sharp correction in financial markets and a spread of recessio
nary trends. These events also had an impact on the Indian life insurance indust
ry. HDFC’s new policies issued grew by 16% over the last year. However, given t
he uncertainty in the overall scenario, customers have reduced their annual prem
ium 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

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 assessmen
ts, 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 publi
c and providing them with risk coverage.
The main function of Insurance is to provide protection against the poss
ible 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 inv
ested in productive heads
Insurance comes under the service sector and while marketing this servic
e, 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 th
e 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 insura
nce services to the users. Apart from offering life insurance policies, they als
o offer underwriting and consulting services along with it the assistance and ad
vice 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 services
They try to offer same standardized services to all their customers e.g., a cour
ier services
They 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 year
s.
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, wh
ich 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, protecti
on 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 bene
fits 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 gr
and parents or other relatives of the child. However, its greatest strength is t
hat company continues to make savings on your behalf, in your absence. The savin
gs can be directed 100% towards your policy or 50% towards your policy and 50% w
ill be available for the beneficiary’s regular use until the original Maturity D
ate. The development of flexible products to suit individual requirements is wha
t 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,
and
iii) Commission charged for underwriting and consultancy activities.
With a view of influencing the target market or prospects the formulation of pri
cing strategy becomes significant. In a developing country like India where the
disposable income in the hands of prospects is low, the pricing decision also go
verns 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 insur
ance 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 d
educted 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 r
egistration are all incorporated into the cost of installments and premium sum a
nd forms the integral part of the pricing strategy.
• Interest:
The rate of interest is one of the major factors which determines people’s willi
ngness 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 oth
er financial instruments are much greater than the perceived returns from the in
surance premiums.
Price is a relevant differentiator only in two segments - pure term insurance an
d 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 differen
tiator.
In case of savings oriented products, long term returns generated will be more r
elevant 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 d
elivering good returns will be a challenge.
3. PLACE:
The Place Mix has two important dimension/ facets --
i) HDFC STANDARD LIFE Managing the insurance personnel, and
ii) 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 year
The management of agents and insurance personnel is found significant with the v
iewpoint 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 be
tween the services- promised and services – offered is bridged over.
In a majority of the service generating organizations, such a gap is found exist
ent which has been instrumental in making worse the image problem.
The transformation of potential policyholders to the actual policyholders is a d
ifficult task that depends upon the professional excellence of the personnel.
The agents and the rural career agents acting as a link, lack professionalism. T
he front-line staff and the branch managers also are found not assigning due wei
ghtage to the degeneration process.
The insurance personnel if not managed properly would make all efforts insensiti
ve. Even if the policy makers make provision for the quality up gradation, the p
romised services hardly reach to the end users.
LOCATING A BRANCH:
HDFC operates through almost 450 locations throughout the country with its corpo
rate head quarters in Mumbai, India.
HDFC also has an International Office in Dubai, UAE with service associates in K
uwait, 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 factor
s, such as smooth accessibility, availability of infrastructural facilities and
the management of branch offices and premises. In addition it is also significan
t to provide safety measures and also factors like office furnishing, civic amen
ities and facilities, parking facilities and interior office decoration should b
e given proper attention.
Thus the place management of insurance branch offices needs a new vision, distin
ct approach and an innovative style. This is essential to make the work place co
nducive, attractive and proactive for the generation of efficiency among employe
es. The branch managers need professional excellence to make place decisions pro
ductive.

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 econo
my 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 l
ine staff. They also have to be given proper training in order to create impulse
buying.
HDFC standard life insurance follows personal and impersonal promotion strategie
s 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 w
ould 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 rath
er 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 a
ge 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 onli
ne, or through the sales person. If the customer is well educated and he can man
age the things through online he will register Himself through online.
HDFC standard life being a service industry which involves a high level of peopl
e interaction, it is very important to use following resource efficiently in ord
er 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 im
portant areas to look into.
Customers are likely to be loyal to organizations that serve them well - from th
e way, in which a telephone query is handled, to direct face-to-face interaction
s. Although the have a nice day approach is a bit corny, it is certainly bette
r than a couldn t care less approach to customer relations.
Call centre staff and customer interfacing personnel are the front line troops o
f HDFC’s and therefore need to be thoroughly familiar with good customer relatio
n 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 overhea
ds. Technology can either complement or supplement the channels of distribution
cost effectively. It can also help to improve customer service levels. The use o
f 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 maki
ng marketing effective in an organization e.g. processes for handling cust
omer complaints, processes for identifying customer needs and requirements, proc
esses for handling order etc HDFC uses very easy method for all the above proces
ses

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 diffe
rent choices. Many companies like HDFC Standard Life are focusing on all channel
s 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 a
nd includes every that interaction that the customer has with the company, such
as sales, new business underwriting, policy servicing, premium payments, claim p
rocessing and so on.
• HDFC STANDARD LIFE has successfully used remote distribution channels su
ch as telephone or internet so as to reach more customers and increase profitabi
lity.
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 sel
ling a range of products. It is anticipated that rather than formal ownership ar
rangements, 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 c
ustomers segments - individuals and corporate. In case of the retail business fo
r individuals, the 4 sub-segments are - protection, investment, savings and pens
ion.
BENEFIT AREA
CUSTOMER
SEGMENT Protection Investment Savings Pensions
Individuals term Assurance Single 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
.
Individuals
Among the retail products for individuals,
1. Pure risk protection products have been introduced in the market. As these pr
oducts have no savings component to it, the premiums are very low compared to ot
her 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 pro
tection and investment benefits.
4. The last segment of pension includes products that are aimed at offering cust
omers an income during their retirement years.
GROUP
In case of the group business, there are three sub-segments - protection, statut
ory 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 insuranc
e cover as part of employee benefit packages to motivate employees or to cover t
he 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 essen
tially comprises of the gratuity products for companies. The pension segment wil
l include products like group superannuation, which will enable a company to ben
efit from the actuarial, investment and operational expertise of a specialist co
mpany 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 f
uture 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 a
ge 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 onli
ne, or through the sales person. If the customer is well educated and he can man
age the things through online he will register Himself through online.
CUSTOMER SATISFACTION: Customer satisfaction here is measured by the feedback an
d 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 satisfaction
LIC 167
HDFC 103

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 cu
stomer 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 pub
lic 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 Stan
dard Life Insurance Co Ltd, Bajaj Allianz Life Insurance Co Ltd, SBI Life Insura
nce 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, a
nd Aviva Life Insurance Company India Ltd.
HDFC STANDARD LIFE faces a very stiff competition with its other players like LI
C, 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 t
he most massive mortgage institution of finance. With thrust for standard life,
HDFC is the joint collaboration of HDFC and Standard Life, which are protagonist
s in this marketing platform from commendable years of enriching experience. Mor
eover to add to its reputation, HDFC Life Insurance was the first company to att
ain the license to work in the insurance arena and the rest is history. It has o
peration from more than 52 locations. It’s just not about the renowned name of t
he 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 ser
vices 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 cove
r, tax benefits, indexation, accident cover while prospecting customers
Try to sell the product/plan which the consumer requires and not the pla
n 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 o
f 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 i
ts tax saving nature and as an investment opportunity with high returns. Individ
uals at this age are trying to buy a house or a car. Insurance could help them w
ith 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 policy
Yes 103
No 167
CHART 1:
ANALYSIS:
This graph shows that out of total 270 respondents only 103 or 38% respondents h
ave 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 t
hese people. So in future business of life insurace will grow further.

SELECTION OF LIFE INSURANCE COMPANIES

TABLE 2:

LIFE INSURER NUMBER OF RESPONDENT

LIC 76
HDFC STANDARD LIFE 08
ICICI PRUDENTIAL
OTHERS 11
05

CHART 2:

Analysis:
In India, the largest life insurance company is Life Insurance Corporation of In
dia. 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 1
8 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 wi
lling to spend between Rs. 10001 – Rs. 25000 for life insurance. 27 % would be w
illing to spend between Rs. 6001 – Rs. 10000 per annum. Only 15% would be willin
g 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 e
ndowment plans and 39% of the respondents hold term insurance plans. Endowment p
lans 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 bene
fit that is, sum assured and accumulated bonus. On survival the policy holder re
ceives 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 sh
ould be promoted through advertising. The company can advertise through televisi
on, radio, newspapers, bill boards and pamphlets to increase awareness
Unit – linked plans are those where the benefits are expressed in terms of numbe
r 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 va
lue 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 p
olicy term of 10 – 15 years, 19% prefer a term of 3 – 5 years and 15% prefer a t
erm of 6 – 9 years. This means that HDFC SLIC could introduce more plans wherein
the premium paying term is less than 15 years.

INTERPRETATION:
From the joint plot category we can interpret that people scale the brand in bet
ween good and average category. In terms of price HDFC stands at satisfactory p
osition. 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 opin
ion 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 uniqu
e 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 ha
s good reputation in the market.
HDFC Standard Life Insurance was grown a lot through its aggressive mark
eting strategies and the growth rate as tremendous, through it is growing faster
 it has to work on certain things and maintain the standard. This can be done t
hrough introducing more innovative products and recruiting good quality advisors
because they are the pillars of the company and it is the most valuable value a
dded services that the company is having.
Therefore, the best the company can do is giving the customer something,
which is little bit different and better than its competitor. The company shoul
d also be successful in expressing the extra features, which is given to the cus
tomer. The customer should feel that whatever company is giving is something gre
at, and no one could ever imagine about it. This feeling makes the customer feel
that company is very much satisfying them. In addition, the extra feature given
to satisfying is some thing great.

In India most of the people working in Government and Business sector and they d
on’t have much financial planning. Another important point is they have good com
pensation package. So the company should bring more innovative and should carry
out more promotional activities in government fields. Better promotion of unit l
inked plans can generate more sales to the company.

DIFFERENCE BETWEEN PRIVATE AND GOVERNMENT INSURANCE SECTOR

Private sector insurance Government sector insurance

1.This firm are owned by private owners.
2.The main motive of this organization is to earn profit
3.Banks provides long term insurance to private sectors in order to take care of
there assets

4.Private banks are directly or indirectly depended on nationalized banks for gr

anting insurance or loans
5. A private insurance company is run by private entities, either individually o
r by joint ventures

6. Private Sector Bank -where en employee is generally polite, helpful and works
with a sword hanging over his head. Decisions are taken quickly and your work i
s attended promptly.
The main owner of this organization is public.
The main motive of this organization is public welfare
Banks provides short term or as per require insurance policy in order to help th
em during occurrence of nature or manmade calamities
Public or nationalized banks are self depended for possession of insurance or l
oan

while a public sector company, or as you say, government insurance company does
not have any private owner, instead is owned by the state or say, government
In public Sector Bank, the job for the employee is secured and your work may be
done if you have good rapport with the staff. The Lower strata employee commands
the Senior Manager who is remains a mute spectator to the harrow s faced by the
Customer
SUGGESTIONS:
HDFC STANDARD LIFE INSURANCE COMPANY’s unit linked insurance plans can e
ffectively meet the requirements of the customers, because unit linked plans are
directly related to the market, so the customers can creates more wealth throug
h fund and he can enjoy the tax benefit, and also the insurance cover. The press
ure on the sales team would be lessoned by increasing the awareness among the pe
ople about the credibility of the companies and need for capitalizing on the var
ious insurance plans offered by the private life insurance companies.
• As the awareness of insurance is less among the people, its awareness sh
ould be creating among the people by conducting stage shows and explaining its n
eed and importance.
• Insurance should not be considered only as a risk cover element but also
as a long term investment
• It is also recommended to concentrate to on lower income group people.
• More efforts should be taken by the company’s financial consultants to c
onvert the leads into policy holder of HDFCSL.
• Follow up should be taken and customer relation should be maintained by
the inviting the existing customers to the seminars conducted when launching a n
ew product or any changes are made to the products or rules to retain them.