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Comparativeanalysisofulips 110509070849 Phpapp02
Comparativeanalysisofulips 110509070849 Phpapp02
Comparativeanalysisofulips 110509070849 Phpapp02
A Comparative Study and Analysis of Unit Linked Insurance Plans (ULIPs)-An IDBI FORTIS Perspective
AUTHORISATION
This report A Comparative Analysis of Unit Linked Insurance Plans (ULIPs) An IDBI FORTIS Perspective done during my Summer Internship Program (SIP) is submitted as a partial fulfillment of the requirement of MBA program of ICFAI Business School (IBS), Hyderabad. 16th May 2009 C.JOHN WILLIAMS
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ACKNOWLEDGEMENTS
I would like to express my sincere gratitude to my company guide Ms.Shanthi Yagyanath, Agency Manager -IDBI Fortis Life Insurance Company, Coimbatore for guiding me throughout my summer internship and research project. Her encouragement, time and effort are greatly appreciated. I would then like to thank my faculty guide, Prof. S Subramanian, for all his valuable inputs and constant support towards me throughout my project and providing me an opportunity to learn outside the class room. It was a truly wonderful learning experience. I would like to thank the training heads Mr.Anand, Ms Sudha and Sales executive Ms Priya for helping me with the training and other activities and constantly motivating me to give my best. I would like to dedicate this project to my parents. Without their help and constant support this project would not have been possible. I would like to thank all my friends who did their SIP from IDBI FORTIS for their valuable suggestions and support. Last but not the least I would like to thank all the respondents who offered their opinions and suggestions and sometimes critical views throughout the survey which made me constantly update myself come out with a successful project.
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TABLE OF CONTENTS
AUTHORISATION ..........................................................................................................................2 ACKNOWLEDGEMENTS ................................................................................................................3 ABSRACT .......................................................................................................................................6 LIST OF ILLUSTRATIONS ................................................................................................................8 INTRODUCTION ..........................................................................................................................10 PURPOSE ....................................................................................................................................12 SCOPE OF THE STUDY .................................................................................................................12 OBJECTIVES OF THE PROJECT .....................................................................................................12 LIMITATIONS OF THE STUDY ......................................................................................................12 METHODOLOGY .........................................................................................................................13 SOURCES OF DATA .....................................................................................................................14 LITERATURE STUDY ....................................................................................................................14 INSURANCE.................................................................................................................................15 CHARACTERISTICS OF INSURANCE .............................................................................................15 HISTORY OF INDIAN INSURANCE ...............................................................................................15 INSURANCE MARKET - PRESENT ................................................................................................16 CAPITAL REQUIREMENTS AND FOREIGN PARTICIPATION .........................................................17 LIFE INSURANCE .........................................................................................................................18 COMPANY PROFILE ....................................................................................................................21 ABOUT IDBI FORTIS ....................................................................................................................21 PRODUCT RANGE OF IDBI FORTIS ..............................................................................................23 UNIT LINKED INSURANCE PLANS................................................................................................24 STRUCTURE OF ULIPs .................................................................................................................24 TYPES OF FUNDS UNDER ULIPs ..................................................................................................27 ADVANTAGES OF ULIPS ..............................................................................................................28 FACTORS INFLUENCING THE BUYING OF UNIT LINKEDINSURANCE PLAN (ULIPs) .....................29 UNIT LINKED INSURANCE PLANS (ULIPs) OF DIFFERENT COMPANIES.......................................30 IDBI FORTIS LIFE INSURANCE COMPANY ...................................................................................30 COMPARITIVE SECONDARY DATA ANALYISIS.............................................................................31
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TATA AIG LIFE INSURANCE COMPANY .......................................................................................31 BAJAJ ALLIANZ LIFE INSURANCE COMPANY ...............................................................................33 LIFE INSURANCE CORPORTAION (LIC) OF INDIA ........................................................................35 HDFC STANDARD LIFE INSURANCE COMPANY ..........................................................................37 ICICI PRUDENTIAL LIFE INSURANCE COMPANY .........................................................................39 PERFORMANCE OF ULIPs OF THE SELECTED COMPANIES .........................................................44 PRIMARY DATA ANALYSIS ..........................................................................................................48 MERITS AND DE-MERITS OF IDBI FORTIS LIFE INSURANCE COMPANY ......................................57 MERITS .......................................................................................................................................57 DEMERITS ...................................................................................................................................57 POSITIONING ..............................................................................................................................59 POSITIONING STRATEGIES..........................................................................................................59 POSITIONING STRATEGIES OF IDBI FORTIS ................................................................................60 FINDINGS ....................................................................................................................................63 RECOMMENDATIONS .................................................................................................................64 MY EXPERINECES AND LEARNINGS ............................................................................................66 CONCLUSION ..............................................................................................................................66 ANNEXURE - I (QUESTIONNAIRE) ...............................................................................................69 ANNEXURE - II (FACTOR ANALYSIS OUTPUT [SPSS]) ..................................................................73 ANNEXURE - III (SCHEDULE OF THE PROJECT) ...........................................................................79 REFERENCES ...............................................................................................................................80
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ABSRACT
The project aims to make a detailed study of Unit Linked Insurance Plans (ULIPs) in the Indian context, a comparative analysis of ULIPs of some well known selected companies and in the process identify the strengths and weaknesses of IDBI FORTIS. The different selected companies apart from IDBI FORTIS on which the project is entirely focused are namely: a. ICICI PRUDENTIAL b. BAJAJ ALLIANZ c. TATA AIG LIFE d. LIFE INSURANCE CORPORATION OF INDIA e. HDFC STANDARD LIFE The comparative study is primarily based in terms of the various benefits offered viz. Death Benefits, Health benefits, Maturity Benefits, financial benefits & other benefits. The various parameters taken into consideration were flexibility, transparency, liquidity and the number of funds options available. The project consists of a detailed analysis of the comparison of various ULIPs of IDBI FORTIS with that of the selected major players in the market. The results of the project have been an outcome of a detailed analysis of collected secondary data and well supported by analysis of primary data collected through a survey in the Hyderabad city. The project required me to design a questionnaire and conduct a primary survey. The survey was mainly conducted to study the consumer perception, opinion and awareness of various insurance products. The number of respondents targeted was 133.The sample of respondents included was carefully selected targeting respondents from all age groups. Also the preferences of the respondents towards these selected insurance companies have been noted and the reasons analyzed. The data gathered from the primary survey was coded in a statistical tool called as Statistical Package for Social Science (SPSS) for analysis and to find various factors that affect an investor decisions while choosing an investment option in this vast market. Finally we interpreted the results of the project by combining both the primary and the secondary data analyses then identified the areas where the company is really strong and the areas where it needs to have a second look. We have also found out the amount to which each of the selected companies was affected due to the market slow down in the last one year The project also involved a complete study of the positioning strategies adopted by IBDI FORTIS in general. This includes a detailed study of the various advertising strategies as well.
ICFAI BUSINESS SCHOOL-HYDERABAD
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The sole objective of this study was to understand the strategies being adopted by the company to counter the highly efficient stronger players in the market and survive with success. Finally after a detailed study we have found out the merits and demerits of the IDBI FORTIS and based on those we have given some recommendations to the company in areas where the company to has to really work on. The Project helped me enhance my knowledge on various technicalities of the Indian insurance industry and gave me a broader prospective of various investment opportunities available in the market. Marketing concepts learnt in the classroom were implemented in a real life environment.
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LIST OF ILLUSTRATIONS
Figure 1: The trend of the Indian insurance industry ($Bn) 2000-2011 Table 1 : The list of life insurance companies in India .................................17
............................................................18 ........................................19
Figure 3 : Premium break -up under ULIPs .............................................................................. 24 Table 2 : Types of funds under ULIPs ...................................................................................... 26
Figure 4 : Advantages of Unit Linked Insurance Plans ............................................................31 Table 3 : NAVs of HDFC Standard Life .................................................................................... 43
Figure 5 : NAVs of HDFC Standard Life ..................................................................................... 43 Table 4 : NAVs of Bajaj Allianz ................................................................................................ 44 Figure 6 : NAVs of Bajaj Allianz .................................................................................................. 44 Table 5 : NAVs of ICICI Prudential ........................................................................................... 44 Figure 7 : NAVs of ICICI Prudential ......................................................................................... 44
Table 6 : NAVs of LIC ............................................................................................................... 45 Figure 8 : NAVs of LIC ............................................................................................................... 45 Table 7 : NAVs of IDBI FORTIS ................................................................................................. 45 Figure 9 : NAVs of IDBI FORTIS ................................................................................................. 45 Table 8 : NAVs of Tata-AIG ..................................................................................................... 46
Figure 10 : NAVs of Tata-AIG .................................................................................................... 46 Table 9 : Percentage change in NAVs of various companies due to recession ...................... 46
Figure 11 : Percentage change in NAVs of various companies due to recession ..................... 46 Figure 12 : Break-up of respondents between different age groups ....................................... 47 Figure 13 : Break-up of respondents by their occupations ........................................................ 48 Figure 14 : Break-up of respondents based on their preferences for various savings instruments .............................................................................................................................. 48 Figure 15 : Break-up of respondents based on factors influencing their decision ................. 49
Figure 16 : Break-up of respondents based on preferences for various forms of investment ... 49 Figure 17 : Break-down of respondents based on their frequencies of investment ............50
Figure 18 : Break-down of respondents who own/do not own an insurance policy ................ 50
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Figure 19 : Break-down of respondents who rated risk involved in ULIPs ............................... 50 Figure 20 : Break-down of respondents who own insurance policies in various life insurance companies ............................................................................................................................ 51 Figure 21 : Rating scale of selected insurance companies ...................................................... 52 Figure 22 : Break-down of respondents with different perceptions about the term WEALTHSURANCE .............................................................................................................. 52 Figure 23 : Break-down respondents with various responses about the future of IDBI Fortis ..............................................................................................................................53 Table 10 : Average frequency of investments among different age groups ............................ 353 Figure 24 : Average frequency of investments among different age groups Table 11 : Age and Frequency of investment (Chi-Square table) Table 12 : KMO and Bartletts test of sphericity ........................54
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..................................................................55 ........... 55
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INTRODUCTION
In the commercial arena, the choice of an effective strategy is perhaps the most important and the toughest decision to take. The decision to select among the grand strategies and deciding upon which strategy will best meet the enterprises objectives is rendered complex by multiple considerations. The same is also true with the insurance companies in India who are constantly revamping their strategies and coming out with innovative options to stay in the competition. There were days when Life Insurance Corporation of India (LIC) was the only insurance company available to people in India and where people synonymised Insurance to LIC. Also since it was a Public Sector Undertaking (PSU) it has a great support from people. But now times have changed a lot of private players have entered into the fray. There have been a lot of Indian companies collaborating with foreign insurance giants like ICICI Prudential, Bajaj Allianz etc who have already made their presence felt in the Indian Insurance industry. Even though LIC is still the market leader with more than over 60% of the market share, the private players are giving it a tough time. Since the last decade the market share of LIC had fallen down by about more than 20%. The new private players have started offering a variety of unlimited schemes right from insurance plans for a 30 day old baby to that of a 70 year old senior citizen. Also the private companies have started creating the importance and need of insurance in todays life. They have started positioning their brands and are marketing their products in such a way the people have started feeling the need of security in their lives. Taking into account the huge population and growing per capita income besides several other driving factors, a huge opportunity is in store for the insurance companies in India. According to the latest research findings, nearly 80% of Indian population are without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subjected to weak social security and pension systems with hardly any old age income security. As per our findings, insurance in India is primarily used as a means to improve personal finances and for income tax planning; Indians have a tendency to invest in properties and gold followed by bank deposits. They selectively invest in shares also but the percentage is very small (4-5%). This in itself is an indicator that growth potential for the insurance sector is immense. It's a business growing at the rate of 15-20% per annum and presently is of the order of around more than $55 billion. India is a vast market for life insurance that is directly proportional to the growth in premiums and an increase in life density. With the entry of private sector players backed by foreign expertise, Indian insurance market has become more vibrant.
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Competition in this market is increasing with companys continuous effort to lure the customers with new product offerings. However, the market share of private insurance companies remains low in the 25-35% range. Even to this day, Life Insurance Corporation (LIC) of India dominates Indian insurance sector. The heavy hand of government still dominates the market, with price controls, limits on ownership, and other restraints. They private players are still in their initial days and would take some more time to capture a good market share. At present they are coming up with new and innovative ideas. Since the last decade the life insurance industry in India has been growing very fast and many new companies have entered this business insurance. The Indian life insurance industry has recorded a robust growth of more than 16 per cent for the nine-month period which ended on December 31, 2008.It is expected to grow at an amazing rate of 20 per cent this year Also in the present scenario the most sought after insurance plans are the Unit Linked insurance Plans (ULIPs). A ULIP is a life insurance policy which provides a combination of risk cover and investment. ULIPs have gained high acceptance due to attractive features they offer like flexibility, transparency, liquidity and a vast variety of fund option. Unit linked plans are suitable for all customer profiles; however as a general belief the risk averse investors tend to choose traditional plans and an informed customer prefers a ULIP. ULIPs offer the kind of flexibility that no insurance product can. ULIPs essentially combine the benefits of an insurance policy and a market-linked investment. Investors can select a ULIP with an equity-debt combination that is in line with their risk profile. A risk-taking investor would typically select one with a high equity component, while a risk-averse investor would opt for a debt-heavy one. Simply put, ULIPs are structured in such a way that the protection element and the savings element are distinguishable, and hence managed according to your specific needs. In this way, the ULIP plan offers unprecedented flexibility and transparency. So with many players around for a company to really be successful it has to really be very efficient on all fronts. It has to constantly adapt to the changing consumer preferences with a lot of new innovations and implementing new technology try to different from the lot. Especially if it is a new player in the market the company has to really work very hard to get into the completion and stay afloat.
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PURPOSE
The project is being done as a part of summer internship program of ICFAI Business SchoolHyderabad. The completion of the project is a partial fulfillment requirement for being awarded the Masters in Business Administration (MBA) degree from the university.
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METHODOLOGY
The techniques used for data collection are: A. Internet surveys and B. Questionnaire method The following methodology has been followed to achieve the objectives of the project. Step: 1 Developing a right research design and timeline for the project. Step: 2 Collecting Secondary data of the insurance Industry Step: 3 Designing of the Questionnaire Step: 4 Analysis of secondary data Step: 5 Pilot Study Step: 6 Collection of primary data-Questionnaires and internet surveys Step: 7 Analysis of primary data Step: 8 Study of positioning strategies of IDBI FORTIS Step: 9 Interpretation of the results Step: 10 Preparation of the final report
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SOURCES OF DATA
In the data collection method, we have collected both primary and secondary data to meet our objectives Primary Data The primary data was collected by a survey based on the questionnaire. It was formulated on the basis of information carefully gathered by me about the various mindsets of the people. This questionnaire was mainly formulated to target the common man to see his perception and awareness of various investment options available. The number of respondents targeted was around 150 and the survey was confined to Hyderabad city. Secondary Data The secondary data was collected directly from the companies and their websites and internet surveys. Also a lot of similar research studies and journals have been referred to.
LITERATURE STUDY
Till today a lot of research has been done on the Indian insurance industry especially the life insurance sector. The material for this study was collected from various internet sites, journals and books by various authors. Similar research has been carried out by Sathak Mohanty who worked on the risk profile of ULIPs and analyzed insurance as an investment option. He says that Life Insurance Corporation of India (LIC) is still the undisputed leader in the Indian context. According to Anita Gupta-director, marketing and communication, ING Vysa Life insurance ULIPs are suitable for all types of customers, right from the lower class to the premium class. Also according to the Financial express (Dated 12th April, 2009) ULIPs are flexible to the core. During the course of the project some official studies on the products of Tata-AIG and HDFC standard Life have been referred to. Also the books on Marketing Management by Philip Kotler and that of Marketing Research by Naresh Malhotra were referred to gain a deeper insight on positioning strategies and marketing research techniques. A lot of groundwork has also been done by studying the vast range insurance products before taking up this research.
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INSURANCE
Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks which can be insured against include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance.
CHARACTERISTICS OF INSURANCE
1. 2. 3. 4. 5. Sharing of risks Cooperative device Evaluation of risk Payment on happening of a special event The amount of payment depends on the nature of losses incurred.
The Indian life insurance market generated total revenues of $41.36 billion in 2007, thus Representing a compound annual growth rate (CAGR) of 11.84% for the period spanning 20002007. Life insurance market had a growth of $22.46 billion within a period of 7 years with a growth rate of 118.24%. Estimated life premiums rose to INR 1,470,800 million ($36.77 billion) in 2006 from INR 1,301,540 million ($32.54billion) in 2005. We envisage that life premiums in 2011 will be $65.96 billion, a growth larger than they were in 2007. The performance of the market is forecast to accelerate, with an anticipated CAGR of 9.78% for the four-year period 2007-2011 expected to drive the market to a value of $65.96 billion by the end of 2011. There would be a growth of $24.6 billion i.e. 59.48% in the next 4 years. Non-life premiums in India were $6.53 billion in 2007. Gross written premium (GWP) in the Indian non-life insurance market reached a value of $5.75 billion in 2006, this representing an annual growth of 13.55% for the period spanning 2006-2007. Estimated non-life premiums rose from INR230 billion ($5.75 billion) in 2006 to INR261 billion ($6.53 billion) in 2007. We anticipate that non-life premiums will grow by a CAGR of 9.40% between 2007-2011. We are looking for non-life premiums to rise by $405 million over the five years to the end of 2011 with a growth rate of 62.02%. (Source: http://www.scribd.com/doc/4996143/OVERVIEW-OFINSURANCE-SECTOR-INDIA,http://www.indiaprwire.com/pdf/pressrelease/200805079347.pdf) With a huge population base and large untapped market, insurance industry is a big opportunity area in India for national as well as foreign investors. India is the fifth largest life insurance market in the emerging insurance economies globally and is growing at 32-34% annually. This impressive growth in the market has been driven by liberalization, with new players significantly enhancing product awareness and promoting consumer education and information. The strong growth potential of the country has also made international players to look at the Indian insurance market. Moreover, saturation of insurance markets in many developed economies has made the Indian market more attractive for international insurance players, according to "Booming Insurance Market in India (2008-2011).
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Total life insurance premium in India is projected to grow Rs 1,230,000 crore by 2010-11. Total non-life insurance premium is expected to increase at a CAGR of 25% for the period spanning from 2008-09 to 2010-11.
With the entry of several low-cost airlines, along with fleet expansion by existing ones and increasing corporate aircraft ownership, the Indian aviation insurance market is all set to boom in a big way in coming years. Home insurance segment is set to achieve a 100% growth as financial institutions have made home insurance obligatory for housing loan approvals.
Health insurance is poised to become the second largest business for non-life insurers after motor insurance in next three years. A booming life insurance market has propelled the Indian life insurance agents into the top 10 country list in terms of membership to the Million Dollar Round Table (MDRT) an exclusive club for the highest performing life insurance agents. (Source: http://www.marketsmonitor.com/Report/IM588_related.htm)
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LIFE INSURANCE
As is evident from its very name, it deals with insurance of human life. Life insurance corporation of India- a public sector undertaking has the monopoly in this sector since its nationalization. In our wordily life, whenever there is uncertainty, there is an involvement of risk. The instinct for security against such risk is one of the basic motivating forces determining human attitudes. As a squeal to this quest for Security, the concept of insurance must have been born. The urge to provide insurance or protection against the loss of life & property must have prompted people to make some sort of sacrifice willingly in order to achieve security through COLLECTIVE CO-OPERATION, in this sense; story of insurance is probably as old as the story of mankind. All life insurance companies in India have to comply with the strict regulations laid out by Insurance Regulatory and Development Authority of India (IRDA). Therefore there is no risk in going in for private insurance players. In terms of being rated for financial strength like international players, only ICICI Prudential is rated by Fitch India at National Insurer Financial Strength Rating of AAA (Ind) with stable outlook indicating the highest claims paying ability rating.
90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Life Non-life
Figure 1: The trend of the Indian insurance industry ($Bn) 2000-2011 (Source: The knowledge Centre)
Life Insurance Corporation of India (LIC), the state owned behemoth, remains by far the largest player in the market. Among the private sector players, ICICI Prudential Life Insurance(JV between ICICI Bank and Prudential PLC)is the largest followed by Bajaj Allianz Life Insurance Company Limited (JV between Bajaj Group and Allianz).
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The private companies are coming out with better products which are more beneficial to the customer. Among such products are the ULIPs or the Unit Linked Insurance Plans which offer both life cover as well as scope for savings or investment options as the customer desires. Further, these types of plans are subject to a minimum lock-in period of three years to prevent misuse of the significant tax benefits offered to such plans under the Income Tax Act. Unlike the mutual fund product that has a very simple cost structure, ULIPs carry a greater number of costs (administration and mortality), in addition to the others. So comparing ULIPs with mutual funds is erroneous. (Source: http://www.scribd.com/doc/136703/Indian-Insurance-Changing-Trends-and-a-FreshPerspective) Right now there are a total twenty two life insurance companies operating in India, of which one (Life Insurance Corporation) is a Public Sector Undertaking and the remaining twenty are all private sector enterprises. (Source: www.irdaindia.org) List of life insurance companies in India 1. AEGON RELIGARE 2. AVIVA 3. BAJAJ ALLIAZ 4. BHARATHI AXA 5. BIRLA SUN LIFE 6. FUTURE GENERALI 7. HDFC STANDARD LIFE 8. HSBC 9. ICICI PRUDENTIAL 10. IDBI FORTIS 11. ING VYSYA 12. KOTAK LIFE INSURANCE 13. LIC 14. MAX NEWYORK LIFE 15. MET LIFE 16. RELIANCE LIFE 17. SAHARA INDIA 18. SBI LIFE 19. SHRIRAM LIFE 20. TATA AIG LIFE 21. DLF PRAMERICA 22. CANARA HSBC OBC
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MARKET SHARE
2% 3% 2% 3% 3% 7% 9% 64% 1% 6%
LIC ICICI Prudential Bajaj Allianz SBI Life Reliance HDFC Standard Life Birla Sun Life Max Newyork Kotak Mahindra Others
Figure 2: The market share of the Indian Life Insurance industry (figures are approximate) (Source: As per a report published in 2008 by Ms Pinky Walia-Financial Advisor)
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In addition to interconnected branches and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, co-branded credit cards, online bill payment and call centre facilities to offer round the clock banking convenience to its customers. The Bank has been a pioneer in providing innovative technological solutions to its customers and the Bank has won several awards and recommendations. Fortis, a European financial services provider engaged in banking and insurance with a presence in over 50 countries, offers its personal, business and institutional customers a comprehensive package of products and services through its own channels, in collaboration with intermediaries and through other distribution partners. With a market capitalization of over EUR 40 billion, Fortis ranks among the 20 largest financial institutions in Europe. Fortis sound solvency position and dedicated, professional workforce of over 80,000, enables it to combine global strength with local flexibility to provide its clients with optimum support and service.
VISION
To be the leading provider of wealth management, protection and retirement solutions that meets the needs of our customers and adds value to their lives.
MISSION
To continually strive to enhance customer experience through innovative product offerings, dedicated relationship management and superior service delivery while striving to interact with our customers in the most convenient and cost effective manner. To be transparent in the way we deal with our customers and to act with integrity. To invest in and build quality human capital in order to achieve the mission.
VALUES
Transparency: Crystal Clear communication to our partners and stakeholders Value to Customers: A product and service offering in which customers perceive value Rock Solid and Delivery on Promise: This translates into being financially strong, operationally robust and having clarity in claims. Customer-friendly: Advice and support in working with customers and partners. Profit to Stakeholders: Balance the interests of customers, partners, employees, shareholder sand the community at large
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The Wealthsurance Foundation Plan enables the customer to save and build wealth to meet your financial goals. However, unlike other investment alternatives, it also enables him to achieve his wealth goals even in the event of unexpected death, accidents, disablement or serious illness. The Wealthsurance Foundation Plan can ensure that his plans for wealth creation are achieved by protecting that plan with insurance benefits.
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan, which provides insurance cover equal to the outstanding balance of your home loan. In the unfortunate event of death of the home loan borrower, the insurance cover enables repayment of the home loan liability.
BONDSURANCE
Bondsurance is a single premium plan which allows you to make a one-time investment and get a guaranteed amount on maturity. You can choose a maturity period of 5 or 10 years for your investment. At the end of the chosen period, you will receive a guaranteed maturity amount. Besides the guaranteed maturity amount, Bondsurance also provides a life insurance cover. In case of death before the maturity date, a Death Benefit which is also guaranteed will be paid. Thus you can get life insurance cover, while earning an assured return on your investment.
RETIRESURANCE
Retiresurance is a pension plan without life cover that allows a longer policy term so that the customers investments can get the benefit of compounding. The customer has to choose any vesting age between 40-75 yrs. The vesting age chosen can also be postponed or preponed within the above range by informing the company 30 days in advance. It is especially for people who wish to lead a happy and prosperous life even after their retirement. (Source:www.idbifortis.com)
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STRUCTURE OF ULIPs
ULIPs offered by different insurers have varying charge structures. Broadly the different types of fees and charges are given below. However the insurers have the right to revise or cancel the fees and charges over a period of time ( Source: http://www.scribd.com/doc/7044410/ULIPs) Premium Allocation charges This is a percentage of the premium appropriated towards charges before allocating the units under the policy. This charge normally includes initial and renewal expenses apart from commission expenses.
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Mortality Charges These are charges to provide for the cost of insurance coverage under the plan. Mortality charges depend on number of factors such as age, amount of coverage, state of health etc. Fund Management Charges These are fees levied for management of the fund(s) and are deducted before arriving at the Net Asset Value (NAV) . Policy/ Administration Charges These are the fees for administration of the plan and levied by cancellation of units. This could be flat throughout the policy term or vary at a pre-determined rate
PREMIUM
LESS CHARGES
LIFE COVER
ULIPs Structure
Administration Charges Premium Allocation Charges Invested Amount Mortality Charges
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Surrender Charges A surrender charge may be deducted for premature partial or full encashment of units wherever applicable, as mentioned in the policy conditions. Fund Switching Charge Generally a limited number of fund switches may be allowed each year without charge, with subsequent switches, subject to a charge. But now a days many insurers offer fund switching free of cost. Service Tax Deductions Before allotment of the units the applicable service tax is deducted from the risk portion of the premium.
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Nature of investments Primarily invested in company stocks with the general aim of capital appreciation. Invested in corporate bonds, government securities and other fixed income instruments. Sometimes known as Money Market Funds invested in cash, bank deposits and money market instruments Combining equity investment with fixed interest instruments
Medium
Cash Funds
Low
Balanced Funds
Medium
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ADVANTAGES OF ULIPS
ULIP distinguishes itself through the multiple benefits that it provides to the consumer. The plan is a one stop solution for everything the customers want. Unit Linked Insurance Plans (ULIPs) are different from traditional plans purely because, they are much more transparent, various charges are shared with the customer before the sale of the product, so as to enable the customer to make an informed decision. (Source:www.scribd.com/doc/7044410/ULIPs) Customers have the flexibility to choose their life cover. Also the customers have the choice of multiple fund options based on their risk appetite, thereby enabling an investor to make the desired returns from the investment. The following are some of the advantages of Unit linked plans: a. Life protection b. Investment and Savings
Market linked fund based on risk profile Switch option Premium redirection Automatic Transfer Plan(ATP)
c. Tax Planning d. Flexibility of cover continuance e. Transparency f. Extra protection with riders
g. Liquidity
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Insurance + Investment
Riders
Transparency
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UNIT LINKED INSURANCE PLANS (ULIPs) OF DIFFERENT COMPANIES IDBI FORTIS LIFE INSURANCE COMPANY
IDBI FORTIS different variety of schemes and a good range of ULIPs under the flagship banner Wealthsurance. There are a lot of other ULIPs under Bondsurance, Homesurance and Retiresurance but as our study is only confined to the study and comparative analysis of ULIPs under Wealthsurance we would just be discussing about the various plans under Wealthsurance. As discussed earlier the Wealthsurance Foundation Plan enables the customer to save and build wealth to meet your financial goals. However, unlike other investment alternatives, it also enables him to achieve his wealth goals even in the event of unexpected death, accidents, disablement or serious illness. The Wealthsurance Foundation Plan can ensure that his plans for wealth creation are achieved by protecting that plan with insurance benefits. Wealthsurance is one of its kind in India. The company offer 11 investment options and 8 protection benefits under the plan apart from tax benefits (Source: www.idbifortis.com) Under Wealthsurance there are a lot of different funds available which are explained below: WEALTHSURANCE 30 dys 65 yrs 10000 75 yrs ADBR,ADB,WOPR,MAJOR DISEASES BENIFIT,HOSPITAL CASH BENEFIT,TERMINAL ILLNESS BENEFIT 3 yrs EQUITY,NIFTY,Capital Guarantee, Asset Allocator, GRF,MONTHLY INT A/C,INCOME,LIQUID
Min entry age Max entry age Min premium Max maturity age Riders Min premium payment term Types of funds
As discussed earlier we would be comparing the Unit Linked Insurance Plans (ULIPs) of the companies selected initially with those of IDBI FORTIS and then make a detailed analysis. This analysis would be well supported by the primary data analysis and then the final results would be interpreted .So here first we would be listing out various ULIPs of the selected companies and their details. After that we make a detailed comparison with that of the plans under Wealthsurance of IDBI FORTIS and explain it. So following are the details of ULIPs of various companies and the comparative analyses.
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INVEST ASSURE CARE Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term
INVEST ASSURE FLEXI Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term
INVEST ASSURE II Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term
INVEST ASSURE EXTRA Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider, NM-Not Mentioned (Source: www.tata-aig-life.com)
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COMPARITIVE ANALYSIS I. Through Wealthsurance a customer can even invest at the age of 65 where as in this product if the customer is beyond 45 years he will not be allowed to invest. Customer can keep his money invested till the age of 75 years and take benefit of the market performance whereas here the plan matures at the age of 65. In Wealthsurance Free partial withdrawal starts after completion of 3 years where as in this product the customer needs to wait for 5 completed years before he can do a withdrawal Wealthsurance has a Premium allocation charge of only 4% as against 50% allocation in this product Through Wealthsurance a customer can even invest at the age of 65 where as in this product if the customer is beyond 45 years he will not be allowed to invest. Customer can keep his money invested till the age of 75 years and take benefit of the market performance whereas here the plan matures at the age of 60. Wealthsurance has a Premium allocation charge of only 4% as against 40% allocation in this product Through Wealthsurance a customer can even invest at the age of 65 where as in this product if the customer is beyond 45 years he will not be allowed to invest. Customer can keep his money invested till the age of 75 years and take benefit of the market performance whereas here the plan matures at the age of 60. Min Entry age in Wealthsurance as 0 Years as against the Min Entry age of 15 Years In Wealthsurance the Min Premium amount is only Ten Thousand Rupees in comparison to Fifteen Thousand Rupees in this Product. Wealthsurance has a 4% allocation charge where as in this product the allocation charge is 16% Wealthsurance has different riders/protection Basket to choose from including Hospital cash benefit which gives money on a daily basis if hospitalized.
II.
III.
IV. I.
II. III.
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UNIT GAIN PLUS GOLD Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term
CENTURY PLUS Min entry age Max entry age Max Maturity age Min premium No of funds Riders
NEW UNIT GAIN PLUS Min entry age Max entry age Max Maturity age Min premium No of funds Riders
3 yrs
PENSION GUARANTEE Min entry age Max entry age Max Maturity age Min premium
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider, NM-Not Mentioned, WOP-Waiver of Premium, FIB-Family Income Benefit, HCB-Hospital Cash Benefit, PDB-Permanent Disability Benefit (Source: www.bajajallianz.com)
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COMPARITIVE ANALYSIS I. UNIT GAIN PLUS GOLD II. Wealthsurance only has a allocation charge of only 4% in comparison to 15% in this product Max Entry age in Wealthsurance is 65 as against 60 of Unit Gain Gold Plus Wealthsurance has an Min Entry Age of 0 Years against this product where the entry age is 8 Years. Min Premium in Wealthsurance is only Ten Thousand Rupees in comparison to Twenty Five Thousand Rupees of this product. In Wealthsurance there is a choice of 5 riders where as in this product only one rider is available Wealthsurance only has a allocation charge of only 4% in comparison to 55% in this product Max Entry age in Wealthsurance is 65 as against 60 of Unit Gain Gold Plus Min Premium in Wealthsurance is only Ten Thousand Rupees in comparison to Fifty Thousand Rupees of this product. Max Entry age in Wealthsurance is 65 as against this product which has a cut of 60 years. Wealthsurance can be customized for retirement planning. Customers can opt for a partial withdrawal without any charges post 3 years from his fund value and use the money as pension. There is no Tax/Charges on the money withdrawn/taken as pension
V.
I. II.
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FORTUNE PLUS Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider (Source: www.licindia.com)
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COMPARITIVE ANALYSIS I. II. MARKET PLUS III. IV. Premium allocation charge is 16.5% in this product where as Wealthsurance has a charge of Max 4%. In Wealthsurance there is unlimited switching redirection and partial withdrawal allowed absolutely free of charge. There are no riders available in this product as against Wealthsurance has a host of riders to choose from. After 3 years we can go for unlimited partial withdrawals as against in this product there are no partial withdrawal available Premium allocation charge is 15% min in this product where as Wealthsurance has a charge of Max 4%. In Wealthsurance there is unlimited switching redirection and partial withdrawal allowed absolutely free of charge. There are no riders available in this product as against Wealthsurance has a host of riders to choose from. Min Entry age in Wealthsurance is 0 years as against in this product it is 12 years Max entry age in Wealthsurance is 65 years as against in this product it is 60 years only.
III.
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18 45 75 12000 7 NO TERM
UNIT LINKED PENSION RP Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term
18 65 75 12000 7 NO TERM
UNIT LINKED PENSION SP Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term
18 70 75 NM 7 NO TERM
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COMPARATIVE ANALYSIS I. ENOWMENT PLUS II II. III. IV. V. ENHANCED LIFE PROTECTION II VI. Min Entry age in Wealthsurance is 0 years as against in this product it is 18 years Premium allocation charge is 40% in this product where as Wealthsurance has a charge of Max 4%. Min Premium in Wealthsurance is 10000 as against this product. Min Entry age in Wealthsurance is 0 years as against in this product it is 18 years Premium allocation charge is 40% in this product where as Wealthsurance has a charge of Max 4%. Min Premium in Wealthsurance is 10000 as against this product. Max entry age in this product is only 45 years where as in Wealthsurance it is 65 years In Wealthsurance after 3 years unlimited partial withdrawals are allowed where as in this product the customer needs to wait till the 5th year. There are no rider available in this product as against Wealthsurance has a host of riders to choose from. Allocation charge of 25% on this product and Wealthsurance has a 4% charge. Annuity is taxable where as all the funds in Wealthsurance is tax free. Wealthsurance can be customized to be a tax free retirement plan. Post 3 years customers can also do unlimited partial withdrawal whenever there is a need for money without being charged or taxed. Min Premium in Wealthsurance is 10000 as against this product. There is no rider available in this product as against Wealthsurance has a host of riders to choose from. Allocation charge of 6% on this product and Wealthsurance has a 4% charge. Post 3 years customers can also do unlimited partial withdrawal whenever there is a need for money without being charged or taxed. Min Premium in Wealthsurance is 10000 as against this product.
VII.
I.
IV.
IV.
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LIFE TIME GOLD Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term 0 65 75 20000 7 ADBR,CIBR, WOP 3 yrs
LIFE LINK SUPER Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term 0 65 70 50000 7 NO SP
PREMIER LIFE GOLD Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term 0 65,69 75 10000 7 ADBR,CIBR WORP 3,5 yrs
LIFE TIME PLUS Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term 0 65 75 20000 7 ADBR,CIBR 3 yrs
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LIFE STAGE Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term 0 65 75 15000 7 ADBR,CIBR LIFE BASED
SMART KID CHILD PLAN Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term 0 15 25 12000 7 ADBR,CIBR WOP 3 yrs
LIFE TIME SUPER PENSION Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term 18 65 45 yrs vesting age 15000 7 ADBR,CIBR 3 yrs
LIFE STAGE RP PENSION Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term 18 70 50-80 yrs Vesting age 15000 6 NO 3 yrs
LIFE STAGE RP Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term 0 MAX TERM 75 75 15000 6 ADBR,CIBR 3 yrs
LIFE STAGE ASSURE Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term 0 65 75 10000 7 ADBR,CIBR 3 yrs
INVEST SHIELD LIFE NEW Min entry age Max entry age Max Maturity age Min premium No of funds Riders Min premium payment term 0 65 75 12000 6 NM 3 yrs
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider, NM-Not Mentioned, WOP-Waiver of Premium SP-Single Premium (Source: www.iciciprulife.com)
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COMPARATIVE ANALYSIS I. LIFE TIME GOLD II. III. Premium allocation charge is premium based in this product where as Wealthsurance has a charge of Max 4% and with higher premium the allocation charge decreases. Min Premium in Wealthsurance is only Rs.10000 as against in this product it is 20000 In Wealthsurance there is unlimited switching redirection and partial withdrawal allowed absolutely free of charge. Premium allocation charge is 20% in this product where as Wealthsurance has a charge of Max 4%. Min Premium in Wealthsurance is only Rs.10000 as against in this product it is 20000 In Wealthsurance there is unlimited switching redirection and partial withdrawal allowed absolutely free of charge. Premium allocation charge is 12% in this product where as Wealthsurance has a charge of Max 4% There are no riders available in this product as against Wealthsurance has a host of riders to choose from. In Wealthsurance there is unlimited switching redirection and partial withdrawal allowed absolutely free of charge Premium allocation charge is 25% in this product where as Wealthsurance has a charge of Max 4%. Min Premium in Wealthsurance is only Rs.10000 as against in this product it is 20000 In Wealthsurance there is unlimited switching redirection and partial withdrawal allowed absolutely free of charge. Premium allocation charge is 25% in this product where as Wealthsurance has a charge of Max 4%. Min Premium in Wealthsurance is only Rs.10000 as against in this product it is 20000 In Wealthsurance there is unlimited switching redirection and partial withdrawal allowed absolutely free of charge. There are only 2 riders available in this product as against Wealthsurance has a host of riders to choose from.
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III.
IV.
IV.
Premium allocation charge is 25% in this product where as Wealthsurance has a charge of Max 4%. Min Premium in Wealthsurance is only Rs.10000 as against in this product it is 20000 In Wealthsurance there is unlimited switching redirection and partial withdrawal allowed absolutely free of charge. There are only 2 riders available in this product as against Wealthsurance has a host of riders to choose from. Premium allocation charge is 20% in this product where as Wealthsurance has a charge of Max 4%. Min Premium in Wealthsurance is only Rs.10000 as against in this product it is 12000 Wealthsurance can be beautifully customized to be a child plan by just adding wavier of premium. Premium payable in this product is Rs.75000 as against in Wealthsurance it is only Rs.10000 There are only two rider available in this product as against Wealthsurance has a host of riders to choose from. Allocation charge of 20% on this product and Wealthsurance has a 4% charge. Annuity is taxable where as all the funds in Wealthsurance is tax free. Wealthsurance can be customized to be a tax free retirement plan. 4. Post 3 years customers can also do unlimited partial withdrawal whenever there is a need for money without being charged or taxed. Premium payable in this product is Rs.15000 as against in Wealthsurance it is only Rs.10000 There are only two rider available in this product as against Wealthsurance has a host of riders to choose from. Annuity is taxable where as all the funds in Wealthsurance is tax free. Wealthsurance can be customized to be a tax free retirement plan. Post 3 years customers can also do unlimited partial withdrawal whenever there is a need for money with being charged or taxed, absolutely free.
I. II.
III. IV.
III.
IV.
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I.
In Wealthsurance partial withdrawals are allowed right after 3 years where as in this product the customer cannot touch his funds till 7th year. First year premium is utilized towards Guaranteed additions and returned on maturity as a Guarantee. If you surrender the policy the GA component is not given to the customer and only the FV which gets accumulated from 2nd premium is returned after deducting surrender charges, where as in Wealthsurance there will not be any other charges apart from surrender charges that too if applicable Premium allocation charge is 20% in this product where as Wealthsurance has a charge of Max 4%. Min Premium in Wealthsurance is only Rs.10000 as against in this product it is 20000 In Wealthsurance there is unlimited switching redirection and partial withdrawal allowed absolutely free of charge. There are only 2 riders available in this product as against Wealthsurance has a host of riders to choose from. This product has no top up facility where as in Wealthsurance tops are allowed any time.
VII.
VIII.
IDBI FORTIS is a new company with over just over one year of operations and so we have very less information about its past performance. Therefore not many negatives can be found with the company in regard to the Unit Linked Insurance Plans. Some general demerits with regard to the distribution network and marketing strategies have been mentioned after the analysis of the primary data. As a part of this comparative analysis we have also compared the performance of ULIPs of a selected fund since the last one year (as the data of IDBI FORTIS is limited only to the last one year). The comparison has been carried out in the next page.
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NAV
MONTH
Month Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09
NAV 8.4099 7.7124 7.5374 8.1797 7.9632 5.9740 5.7968 5.6706 5.5100 5.4479 5.1516 6.1597 6.4646 BAJAJ ALLIANZ
30 25 20 NAV 15 10 5 0 Jun-08 May-08 Mar-09 Mar-09 Oct-08 Apr-08 Aug-08 Nov-08 Jan-09 Sep-08
(Source: www.bajajallianz.com)
Month Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09
NAV 56.3500 56.6050 48.9250 48.8700 51.4450 49.1450 39.4450 35.6850 36.4000 34.8450 34.2650 33.4050 39.9150 ICICI PRUDENTIAL
60 50 40 NAV 30 20 10 0 May-08 Aug-08 Nov-08 Sep-08 Dec-08 Feb-09
Dec-08
Feb-09
(Source: www.iciciprulife.com)
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Apr-09
Apr-08
Jun-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-08
Month Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09
NAV 12.2400 12.1735 11.0585 11.0290 11.4950 11.1155 9.5505 9.3775 9.6165 9.6130 9.5395 9.4765 10.5715 LIC
14 12 10 NAV 8 6 4 2 0 Apr-08 May-08 Aug-08
Sep-08
Nov-08
Dec-08
Feb-09 Feb-09
MONTH
(Source: www.licindia.com)
Month Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09
NAV 10.5838 10.4991 9.1765 9.3448 9.8183 9.0915 7.0785 6.9028 6.9151 6.6861 6.5328 6.4605 7.7746 IDBI FORTIS
12 10 8 NAV 6 4 2 0 May-08 Nov-08 Apr-08 Aug-08
Mar-09 Mar-09
Sep-08
Dec-08
(Source: www.idbifortis.com)
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Apr-09
Jun-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-08
Oct-08
Jun-08
Jan-09
Month Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09
NAV 13.4790 13.3460 11.9805 11.9125 12.3240 11.7975 10.1290 9.8400 9.9140 9.8000 9.6675 9.4175 10.7340 TATA-AIG
16 14 12 10 8 6 4 2 0 Jun-08 Oct-08
NAV
Jan-09
May-08
Mar-09
Aug-08
Sep-08
Nov-08
MONTH
(Source: www.tata-aig-life.com ) COMPANY BAJAJ ALLIANZ HDFC STANDARD LIFE ICICI PRUDENTIAL IDBI FORTIS LIC TATA AIG % CHANGE -43.84% -38.74% -40.98% -38.95% -23.38% -30.13%
PERCENTAGE (% ) CHANGE
TATA AIG LIC IDBI FORTIS ICICI PRUDENTIAL HDFC STANDARD LIFE BAJAJ ALLIANZ
Table 9 & Figure 11: Percentage changes in NAVs of various companies due to recession
Dec-08
Feb-09
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Apr-09
Apr-08
Jul-08
NO. OF REPONDENTS
AGE GROUP
The sample of respondents was heterogeneous with people of various occupations right from government service to ones who were self employed. Out of these people who were working in private companies constituted round 65%.
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80%
PERCENTAGE OF RESPONDENTS
Also the customers preferences for different forms of savings have been carefully studied. The main savings instruments generally preferred by customers are bank deposits, fixed deposits, investments and post office schemes. Out of these Investments has been preferred by around 43% respondents and fixed deposits by around 27%.
PREFERENCE OF SAVINGS
6% 12%
12%
43%
Others
Figure 14: Break-up of respondents based on their preferences for various savings instruments
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When we talk about making investment decisions around 45% respondents considered their own decision and another 40% respondents considered their familys opinion before making any important investment decision.
PERCENTAGE OF RESPONDENTS
50% 40% 30% 20% 10% 0% Family's Friend's Broker's Own Any Opinion Advice Advice Decision Others
DECISION MAKING
The various forms of investments generally preferred by customers have been identified as mutual funds, stocks and shares, insurance products and government bonds. Out of these around 35% preferred stocks and shares and around 20% preferred insurance products.
FORMS OF INVESTMENT
35% 29% 20% 13% 5%
Mutual funds
Insurance Products
Govt Bonds
Others
Figure 16: Break-up of respondents based on preferences for various forms of investment
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The main reason for people to invest in the insurance products was that they had the advantage of both life cover and tax benefits apart from other normal benefits. Talking about the frequency of investment around 45 respondents preferred investing once a year and another 25% preferred investing 2-3 times a year. It was also noticed that greater majority of respondents owned an insurance policy. Only 11% of the respondents did not own an insurance policy.
FREQUENCY OF INVESTMNET
Once a year 2-3 Times a year More than 3 Times a year Not Investing (No Idea) Not Interested
Figure 18: Break-down of respondents who own/do not own an insurance policy
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6%
4%
High risk
Moderate risk
Low risk
No idea
LIC 2% 3% 5% 7% 13% 63% 1% 2% 1% 3% ICICI Prudential IDBI Fortis Bajaj Allianz HDFC Standard Life SBI Life Max New York Birla Sunlife
Kotak Mahindra
Others
Figure 20: Break-down of respondents who own insurance policies in various life insurance companies
Around 63% respondents felt that there was an amount of moderate to high risk involved with ULIPs. Around 63% of the respondents owned an insurance policy in LIC which clearly shows that LIC still continues to be the market leader in as it has been since the last 50 years or so in spite of the presence various powerful private players which are still finding hard to capture a major market share. Around 13%b respondents chose ICICI Prudential.
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Following is the rating (from 1-5, 1-bad, 5-best) given by respondents to the five selected life insurance companies. Here we can clearly see that LIC has the best rating. The reasons given by the respondents were that LIC was a public sector company which is well established and has got loads of experience 1 BAJAJ ALLIANZ HDFC STANDARD LIFE ICICI PRUDENTIAL IDBI FORTIS LIC TATA-AIG
Figure 21: Rating scale selected insurance companies
WEALTHSURANCE
No idea
All the above A finacial security and risk coverage A savings plan with good returns Tax saving plan 0%
Figure 22: Break-down of respondents with different perceptions about the term WEALTHSURANCE
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71%
26% 3% IDBI Fortis is one of It has a long way to the best go Don't know
Figure 23: Break-down respondents with various responses about the future of IDBI Fortis
Many people responded that they have no idea about IDBI Fortis or its various products under the umbrella wealthsurance.That is true as it is a new company it has a long way to go as responded by around 26% of the respondents. This could be due to the fact that IDBI FORTIS has a limited presence and it has just started its operations just more than a year ago. We also have found out the age played an important role in deciding the investing patterns of the respondents .It was found out that people who were generally in between 18-30 had a higher tendency to invest quite frequently in a year. The following table and the figure below show us the results. Age No of Respondents 18-30 30-50 >50 49 70 14 133 36.84% 52.63% 10.52% 100% % Average Frequency of investments per year 2.105263158 1.537313433 1.461538462
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2.5
2.10
2
FREQUENCY
1.53
1.5
1 0.5 0 18-30(young) 30-50(middle) >50(old)
1.46
AGE
In order to find the relationship between the age of the respondents and their investment patterns, a chi-square test for independence of attributes was used and results of the test is shown in the following table: Factor AGE Calculated 2 value 2.801856 Tabulated 2 value 7.814728 DF 3 Significance Significant at 5% level of significance
It is noted from the above table that the calculated Chi-square value is less than the table value and the result is significant at 5% level. Hence, the null hypothesis the age of the respondents and frequency of investment holds good. From the above analysis it is concluded that there is a close relationship between the age of the respondents and their investment patterns We have also used factor analysis in SPSS (Statistical Package in Social Sciences) extract most prominent factors that considered by a consumer before making an investment decision. We had initially considered 28 factors which can influence a consumers investment decision and we have asked the customers to rate them according to their importance in the questionnaire (Refer to annexure I).
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So through the factor analysis the number of factors extracted was 9.KMO (Kaiser-Meyer-Olkin Measure of Sampling Adequacy) and Bartletts test of sphericity were used and for extraction principle component method had been used. About 75.68% of the information has been extracted through this test which shows that the results are reliable. The output of the factor analysis has been included in the annexure. (Refer to annexure II). Also we can see from below that the KMO coefficient is 0.702. The coefficient always lies between 0 and 1 and the requirement is that it should not be less than 0.50. So here we can say this is a good test. Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartletts test of Sphericity : Approx Chi-Square DF Sig
Table 12: KMO and Bartletts test of sphericity
.702
So following are the nine extracted prominent factors that influence the consumer while making an investment decision: 1. Rate of return 2 .Death benefits and lock in period 3. Present market scenario and tax benefits 4. Past performance of the company 5. Flexible investment options and the risk involved 6. Amount payable and the after investment service 7. Opinion of media, friends and acquaintances 8. Level of knowledge about investment 9 .Commercials associated with investments
Table 13: The prominent factors influencing the consumers investment decision
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MERITS
1. When compared to the other selected insurance companies IDBI Fortis gives a min fixed Interest rate for monthly interest account and a min fixed NAV (Net Asset Value) for funds under Unit Linked Insurance Plans (ULIPs) at the time of maturity. So here in terms of market slowdown and recession the fund value will not come down below a specified limit which is not the case with the other companies. 2. The Fund allocation charges and fund management charges are very low when compared to most of the other companies in the market. 3. The growth of the company has been tremendous in terms of the premiums collected and the variety of funds introduced. All this has been done in a very short span of time which indicates that there is a great future for IDBI Fortis. 4. IDBI Fortis offers funds almost to everyone right from a 3 month child to a 70 year old elderly person. The variety of funds offered is very vast. 5. The tie-up of the well known IDBI bank with Fortis International and Federal bank both of which are well established and good rated gives the company a greater scope for good growth in the future. 6. All the plans offered by the company especially under ULIPs are really flexible as there are no charges charged for switching and a customer can make use of the switching facility any number of times he wants to free of charge. Also the premiums payable can be decided by the customers themselves according to their feasibility and capacity.
DEMERITS
1. IDBI Fortis has a limited presence right now so most of the people know nothing about the company. 2. With already around more than 20 private companies in the market it is really a mammoth task for IDBI Fortis to establish itself and move forward successfully as it is always difficult for any new company to capture the market very early.
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3. Also with LIC still at the helm as the market leader it is really difficult for the company to move anywhere closer to it because LIC is the only public sector life insurance company and generally people would prefer a public company rather than a private company. 4. The company has to improve its distribution network as its reach to a common man is very limited .Also the number of agents working for the company is very less right now when compared to the other companies. 5. It is very difficult to convince the customers first because this is a new unknown company and secondly there are no part records which normally the customers consider seriously to show the companys performance. 6. Also the company has no funds like SBI Smart ULIPs of SBI, Tata-AIG life invest assure of Tata-AIG and Birla Sun life insurance platinum plans of Birla Sun life which offer the highest NAV observed during the entire policy term at the time of maturity of the fund which are really a great hit among the customers. 7. The variety of funds under IDBI FORTIS has to increase as competitors like ICICI Prudential have a larger and better variety of the same.
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POSITIONING
Positioning is the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. A product's position is the way the product is defined by consumers on important attributes - the place the product occupies in consumers' minds relative to competing products. Positioning is the difference the company creates for its products relative to the products of the other companies Not all brand differences are meaningful or worthwhile. Not every difference makes a good differentiator. Each difference has the potential to create company costs as well as customer benefits. Therefore, the company must carefully select the ways in which it will distinguish itself from competitors. A difference is worth establishing insofar as it satisfies the following criteria: (source: http://www.determan.net/Michele/mposition.htm) IMPORTANT DISTINCTIVE SUPERIOR The difference delivers a highly valued benefit to target buyers
Competitors do not offer the difference, or the company can offer it in a more distinctive way.
The difference is superior to other ways that customers might obtain the same benefit. COMMUNICABLE The difference is communicable and visible to buyers PRE-EMPTIVE Competitors cannot easily copy the difference AFFORDABLE Buyers can afford to pay for the difference PROFITABLE The Company can introduce the difference profitably
POSITIONING STRATEGIES
There are seven positioning strategies that can be pursued: Product Attributes: What are the specific product attributes? Benefits: What are the benefits to the customers? Usage Occasions: When / how can the product be used? Users: Identify a class of users. Against a Competitor: Positioned directly against a competitor. Away from a Competitor: Positioned away from competitor. Product Classes: Compared to different classes of products.
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IDBI Fortis has positioned itself quite nicely by offering all the products under one single umbrella WEALTHSURANCE. The Wealthsurance Foundation Plan enables the customer to save and build wealth to meet his financial goals. However, unlike other investment alternatives, it also enables him to achieve his wealth goals even in the event of unexpected death, accidents, disablement or serious illness. Here under WEALTHSURANCE the company offers all various varieties of plans right from plans for a 3 month baby to plans for elderly people. Also in all its advertisement campaigns the company has been using the term WEALTHSURANCE extensively. The company has positioned itself in such way the customers started feeling that Wealthsurance is the solution for all problems. Some major strategies used by the company The name Wealthsurance is being marketed very effectively that too with the tag line investment chalta jaye, chahe kuchh ho jaye which means that the wealth creation continues no matter whatever happens. This concept is being well supported by a new commercial released by the company being aired on all major channels.
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The company has already created sensation by introducing the term Wealthsurance and now it wants to project Wealthsurance is the solution for any kind of problem in life insurance. The company has also been promoting itself well especially since the past few months. It created ripples across India when it became the first insurance company ever to sponsor a major cricket tournament singlehandedly when it sponsored the Wealthsurance cup between India and Srilanka in Jan-Feb 2009.It made a right decision to do so because India is a cricket crazy country and there is nothing better than reaching to the people through cricket. Also the logo and pictures IDBI Fortis has been using in its advertisement campaigns through commercials and printed media have been really good. For example let us talk about the most common picture used i.e. that of a peeled orange with its peel by its side. The orange wouldnt grow if the peel hadnt protected it fruits from all sorts of dangers like birds worms etc. The same is with all fruits, nuts and grains or for the matter a human embryo. With this the company wants to say the best growth happens under a protective cover that just as nature has provided a protective shield for every fruit which projects the actual fruit and helps it grow IDBI Fortis acts as a protective shield for the investments the customers make and helps the best growth to happen. So with new innovative advertising strategies the company has been able to position itself as a new company with innovative products. All the punch lines used by the company easily attract the customers. Some of the advertising pictures used by the company are illustrated below with their taglines:
Protection Guaranteed
Your dreams and aspirations need money to fulfill. Make a promise to build wealth.
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IDBI Fortis positions itself as one of the top insurance companies in India. It aspires to be in the top four in the next five years and in the top 3 in the next seven years from now. Although the company has other products like Bondsurance, Homesurance and Retiresurance right now it is just focusing on Wealthsurance as it feels that the company needs to first capitalize on one particular product initially and latter on can diversify. IDBI Fortis aims to position itself as an insurance company for all classes. As the premiums payable and the plans are flexible according to the customers choices every person right from a worker to a high class businessman can purchase a policy. The minimum premium payable per month is Rs.1000 which is very affordable by anyone.
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FINDINGS
There is a great future of the life insurance sector in India as 80% of the Indian population is still without life cover and people are just now coming in response to the awareness campaigns being carried out by almost all the insurance companies. We have found out that age plays a major role in deciding the investment patterns of people as generally the younger class of people tend to take more risk and invest in various instruments more frequently in a year( 2.10 times a year) when compared with the older class of people(1.46 times a year). Life insurance Corporation (LIC) of India is the company to be least affected during this market slowdown as NAV of its equity growth funds came down just by 23% during this major recession. Life Insurance Corporation (LIC) of India is still the undisputed market leader as 63% of the respondents surveyed owned a policy in it and it has also got a tremendous rating of 4.2 out of 5 in the survey conducted. A good positive growth is being shown by IDBI FORTIS and even though it is still over one year old and has a long way to go it has already started working hard and is trying to make competition much tougher. All the products of IDBI FORTIS under Wealthsurance are really very good and have an edge over most of the products of other major life insurance companies as the plans offered by the company are really very flexible.
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RECOMMENDATIONS
IDBI FORTIS has to improve its distribution network as its reach to a common man is very limited .Also the number of agents working for the company is very less right now when compared to the other companies The company should constantly come out with innovative products as the competition is very tough with around 22 companies fighting hard for the market share. Some new innovative ideas have been suggested below. An insurance plan for the unborn babies. The premium payment term could be for 6 months and it could start once the fetus is 3 months old inside the mothers womb. There could be various benefits under this plan for the customers like in case of a premature or a complicated birth the company would bear the expenses till the baby is healthy again through the insurance policy. Also there could be death benefits in case of the death of the baby inside the womb or at the time of delivery. This plan could really be successful as in India there are lot of premature child deaths and if the company comes out with a plan like this very tactfully with some implied conditions it would be the first Indian company to offer insurance to unborn babies. An insurance plan for mentally retarded and physically handicapped people. This might be hard to digest but if at all plans like these are possible and really come out then a good amount of Indian population would really be interested. The company could also come out with a plan for both the husband and wife where automatically the wife gets insured along with her husband when her husband purchases the policy. This could also be the other way round. This could be called the combo family plan. In simple words it means buy one policy and get another free. No other company has done something like this till now. As the company is a new company it has to really work hard to get itself promoted. The company could start sponsoring major events and conduct talk shows and seminars to get noticed. It could also take the help of NGOs. There are many people in India who still do not know about the concept of insurance.The company could take this as an opportunity by trying to create awareness.
ICFAI BUSINESS SCHOOL-HYDERABAD Page 64
The company could start using star personalities for their endorsements especially cricket stars and film stars as India is a nation of crazy cricket and film followers and there is nothing better than reaching to the hearts of people through cricket. The company should come out with some really outstanding and out of the world advertisements like the ones Vodafone has released recently which people find it hard to forget soon. The company should first promote the brand IDBI FORTIS and create a positive impression in the minds of the people. In todays world it is really tough for the customer to choose from among a vast list of insurance companies as almost all of them offer the same plans .So the company has to be a bit different from others in order to stand apart.
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Through this research I enriched my knowledge on various competitive marketing strategies adopted b different companies y to survive in a highly competitive market. I learnt in a more detailed way about the nature of work existing in the insurance industry, the kind of deadlines they have to meet, the kind of pressure and levels of stress which they work under and the kind of recognitions given to them after they meet or exceed their targets. Segmentation, Positioning, Diffrencaition, Communication Mix, Direct selling were all the concepts learnt by be in the classroom before but this summer internship really helped me practically experience all these.
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CONCLUSION
Here I conclude that the summer internship program, done in IDBI FORTIS Life Insurance company , for partial fulfillment of the MBA program in ICFAI Business School (IBS)-Hyderabad. has been completed successfully. Following are the achievements done during the summer internship from 23th February 2008 to 23th May 2008: a. Survey done with interest of IDBI FORTIS has been conducted successfully and results are discussed above. b. Sales done by me during the time have done great business to the company. c. I was one of the Sales toppers with a generated sales of more than 1.5 lakh. d. The experience gained during the internship has sharpened my marketing and negotiable skills and given me a great on the field experience.
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ANNEXURE - I (QUESTIONNAIRE)
QUESTIONNAIRE (This questionnaire is only of the sake of some research work being done on insurance companies. Confidentiality would be maintained.) Name Gender : _________________________________________________________________ : Male Female Contact no : _______________________________
Age Group: 18-30 Qualification: Post Graduate Occupation: Government Service Self Employed Your income range (per annum): Below 150000 350000-450000 Your savings per year: Below 10000 50000-100000 10000-25000 More than 100000 25000-50000 150000-250000 More than 450000 250000-350000 Businessman Private Company Graduate 12th < 12th 31-40 41-50 >50
You would prefer savings in which form? Bank deposits Post Office schemes Fixed deposits Investments
What do you consider while making an investment decision? Familys opinion Your own decision Friends advice Brokers advice
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Your opinion about investment: Tax Saving Wealth creation Good returns Better future after retirement
Preferably you would like to invest in: Mutual funds Govt. Bonds & securities How frequently do you invest? Once a year Not investing (no idea) 2-3 times a year Not interested More than 3 times a year Stocks and shares Insurance products
Do you agree that Insurance products are susceptible to very low risk when compared to the other options for investment? Yes No Dont know
What do you understand by the term Wealthsurance? A tax savings plan A savings plan with good returns All the above
A financial security and risk coverage for your family I have no idea Name three insurance companies that come to your mind: 1. ___________________________________ 2. ___________________________________ 3. ___________________________________ Do you own an insurance policy? Yes No
If yes in which company? ______________________ According to you what is the amount of risk involved in (ULIPs) Unit Linked Investment Plans? High risk They are Safe Moderate risk No Idea Low risk
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Rate the following insurance companies (on a scale of 1-5): Company IDBI FORTIS ICICI Prudential Life Insurance Corporation of India Bajaj Allianz Max NewYork Life Insurance Tata AIG Life According to you which is the best insurance company and why? _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ With the different variety of schemes and unbelievable plans offered by IDBI FORTIS Do you think IDBI FORTIS is one of the best? Yes No Rating
Why?_______________________________________________
Please rate between 1-5 for all the following factors depending on thier effectiveness in influencing you to make an investment decision. 1- If the factor has no effect on your preference for the investment option 2- If the factor has only a slight affect on your preference for investment option 3- If the factor affects your preference for an investment option 4- If the factor will strongly affect your preference for the investment option 5- If the factor will be decisive in your preference for the investment option Particulars Rate of return( The amount which you get in return) Extra returns for extra investments Returns constant in all conditions (No opportunity for multiple returns) Can give huge returns but high risk ( no guarantee of even min returns) Rating
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Tax benefits Lock in period (Money cannot be withdrawn before a specific period) Death benefits( Benefits upon your inadvertent death) Compulsory investment (Mandatory for you to save a specific amount every year making you get greater amount at maturity date, e.g. Regular premium in insurance ) Transmission ( The investment option gets transferred to your nominee in case of any eventuality for example death) Amount payable can be adjusted later Amount payable ( Amount that you have to pay for investing) Amount of charges( Amount deducted for maintenance of your investment etc) Level of knowledge about an investment option in particular General level of knowledge about investment options Level of knowledge to be developed once you start investing After investment service( Level of advice you get when needed) Renewal procedure( in case of any discontinuity in payment) Time to be spent in future Regulatory authority Past history& performance of that investment option Market scenario Opinion of friends & acquaintances Opinion of Media Commercials associated with an investment option Your past experience in investments. Political factors( Government policies) Investment option caters to my group (Retired employees, etc) Other factors( Known person working in that sector etc)
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Factor Analysis
KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig.
Communalities Initial 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .768 .530 .735 .554 .715 .661 .781 .673 .665 .750 .789 .744 .707 .701 .620 .727 .689 .755 .689 .623 .612 .561 .707 .704 .738 .747 .669 .616
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Total Variance Explained Extraction Sums of Squared Loadings % of Cumulative Total Variance % 4.467 3.481 2.612 1.882 1.799 1.547 1.290 1.137 1.016 15.955 12.433 9.328 6.722 6.424 5.525 4.607 4.059 3.629 15.955 28.389 37.716 44.438 50.863 56.387 60.994 65.053 68.683 Rotation Sums of Squared Loadings % of Cumulative Total Variance % 2.925 2.908 2.499 2.412 2.167 2.076 1.462 1.407 1.375 10.447 10.385 8.926 8.614 7.741 7.413 5.223 5.023 4.911 10.447 20.831 29.757 38.371 46.112 53.526 58.749 63.772 75.683
Component 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Initial Eigenvalues % of Cumulative Total Variance % 4.467 3.481 2.612 1.882 1.799 1.547 1.290 1.137 1.016 .868 .835 .713 .701 .681 .602 .543 .515 .476 .421 .395 .347 .310 .284 .266 .246 .211 .191 .165 15.955 12.433 9.328 6.722 6.424 5.525 4.607 4.059 3.629 3.100 2.982 2.545 2.503 2.433 2.150 1.939 1.838 1.699 1.504 1.410 1.239 1.106 1.014 .950 .878 .754 .682 .591 15.955 28.389 37.716 44.438 50.863 56.387 60.994 65.053 68.683 71.783 74.765 77.310 79.813 82.246 84.396 86.334 88.173 89.872 91.376 92.786 94.025 95.131 96.145 97.095 97.973 98.727 99.409 100.000
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Scree Plot
Eigenvalue
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Component Number
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Component Matrix(a) Component ROR ER RC HRHR TB LIP DB CI T APA AP AC LK GK LKS AIS RP TS RA PP MS OPNF OPNM COM PE PF IO OF 1 .058 .052 -.324 .261 .455 .618 .622 .682 -.573 -.726 -.429 .297 .439 .675 .349 .082 .272 .337 -.162 -.186 .273 .131 -.200 .353 -.384 -.354 .400 .067 2 -.043 .365 -.577 -.303 -.674 -.086 -.480 .044 -.084 -.249 .166 .388 -.243 -.187 -.087 .216 .435 .489 .092 -.277 -.190 .447 .194 .192 -.403 .677 .562 -.268 3 .127 .002 .077 .193 .088 .077 .161 -.404 -.176 .010 .567 .432 -.072 -.330 -.453 .618 -.262 .338 -.647 .117 .431 .174 -.288 -.166 -.180 -.200 .035 .305 4 -.162 -.014 .267 .297 .158 -.085 .051 .180 .234 .098 -.314 -.027 -.087 -.066 -.465 -.146 -.169 .462 -.012 -.540 -.323 .328 .369 -.029 .251 -.152 .284 .407 5 .123 -.182 -.079 .291 .105 -.003 -.138 .048 -.382 .143 .068 .543 -.588 .121 -.120 -.413 -.179 -.049 .467 .366 .127 .022 .276 -.155 -.135 -.242 .161 -.097 6 -.100 -.261 .217 .423 .076 -.496 -.316 -.004 -.046 .281 -.005 -.125 .233 .242 -.013 -.032 .437 -.150 -.060 -.010 .274 .114 -.079 .103 -.494 .184 .098 .265 7 .729 .416 .086 -.046 -.066 -.066 -.053 .057 .122 .170 -.086 -.085 .050 .080 .092 -.033 -.323 -.037 .070 .192 .137 .161 -.018 .414 .022 .072 .179 .287 8 -.264 .094 -.374 .041 -.005 .083 -.094 -.048 -.178 .153 .081 .021 -.076 .122 -.197 .038 .021 -.096 -.089 -.126 .216 -.359 .293 .544 .263 .052 -.201 .268 9 .307 -.332 -.137 .037 -.026 .019 -.071 -.046 .221 -.013 -.371 .000 .183 -.040 -.083 .309 .025 .197 -.031 .139 .235 -.194 .491 -.114 -.044 .009 -.055 -.217
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Rotated Component Matrix(a) Component ROR ER RC HRHR TB LIP DB CI T APA AP AC LK GK LKS AIS RP TS RA PP MS OPNF OPNM COM PE PF IO OF 1 .047 -.116 -.122 .118 .235 .143 .213 .583 -.113 -.388 -.650 -.283 .651 .649 .563 -.096 .527 -.062 .089 -.137 .105 -.047 -.060 .311 -.351 .022 .160 -.103 2 .036 -.001 .001 .088 .561 .710 .812 .347 -.273 -.483 -.265 .144 .158 .255 .127 -.008 -.358 .167 -.161 -.045 .037 -.123 -.165 -.042 .284 -.692 -.048 .053 3 .132 .263 -.080 .074 -.166 .042 -.013 .288 -.063 -.344 -.104 .378 -.072 -.039 -.164 .111 .140 .707 -.037 -.393 -.225 .721 .021 -.017 -.378 .159 .741 .065 4 -.056 -.061 -.523 .207 .037 .244 -.005 .118 -.723 -.278 .245 .692 -.218 .293 .048 .085 .275 .108 .018 .236 .453 .005 -.039 .164 -.523 -.053 .247 -.131 5 -.008 -.220 .462 .658 .527 -.193 .143 .035 -.096 .345 -.055 -.032 .097 .242 -.310 -.126 -.179 -.036 -.198 -.056 .305 .052 -.024 .115 -.018 -.412 -.002 .685 6 .053 -.020 -.105 -.019 -.026 .109 .153 -.268 .061 -.166 .216 .033 .413 -.212 -.211 .823 .087 .331 -.750 -.098 .392 -.008 -.185 .042 -.167 .063 -.068 .149 7 .119 .600 -.348 -.212 -.179 .157 -.016 .165 -.107 -.063 .037 -.046 .032 .150 .069 .005 -.036 .030 -.043 -.214 -.003 .035 -.015 .743 .162 .232 .144 .294 8 .852 .082 .124 -.014 .016 -.004 .011 -.089 .071 .126 -.043 .081 -.002 -.003 .144 .071 -.381 -.100 .094 .555 .312 .015 -.022 -.005 -.107 -.108 .034 -.031 9 .025 -.165 -.281 .073 -.077 .039 -.177 .091 .147 .070 -.415 .103 -.155 -.013 -.304 -.012 -.042 .300 .202 -.160 -.029 -.140 .799 .111 .227 .031 .072 -.050
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 13 iterations.
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Component Transformation Matrix Component 1 2 3 4 5 6 7 8 9 1 .607 -.055 -.535 -.146 -.291 .406 .038 -.112 .240 2 .567 -.456 .120 .142 .031 -.647 -.099 -.046 -.058 3 .293 .592 .175 .527 .044 .011 .146 -.471 -.102 4 .418 .296 .272 -.417 .592 .159 -.200 .270 -.030 5 .104 -.486 .281 .474 .183 .568 .184 .204 -.133 6 .110 .082 .666 -.116 -.593 .077 -.076 .128 .380 7 .152 .252 -.099 .002 -.242 -.172 .569 .603 -.357 8 -.034 -.150 .145 -.297 .257 -.074 .750 -.313 .367 9 -.045 .148 -.202 .425 .229 -.164 -.034 .413 .709
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
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REFERENCES
www.idbifortis.com www.hdfcstandardlife.com www.licindia.com www.bajajallianz.com www.iciciprulife.com www.tata-aig-life.com www.irdaindia.org http://www.scribd.com/doc/11005006/Insurance-Industry-Growth-Chart-Under-Drive-ofDemand-and-Value-Recommended20090121 http://www.scribd.com/doc/4996143/OVERVIEW-OF-INSURANCE-SECTOR-INDIA http://www.scribd.com/doc/7044410/ULIPs http://www.indiaprwire.com/pdf/pressrelease/200805079347.pdf http://www.scribd.com/doc/136703/Indian-Insurance-Changing-Trends-and-a-FreshPerspective http://www.scribd.com/doc/7216240/Understand-ULIP-Insurance The knowledge times
http://www.financialexpress.com/search/news/ulips+flexible+to+the+core/
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Principles of Marketing-Philip Kotler Marketing Research-Naresh Malhotra http://www.determan.net/Michele/mposition.htm http://www.quickmba.com/marketing/ries-trout/positioning http://tutor2u.net/business/marketing/brands_positioning.asp www.ducttapemarketing.com/strategies_for_positioning.htm http://www.quickmba.com/marketing/research/ http://www.ats.ucla.edu/stat/Spss/output/factor1.htm http://www.moneycontrol.com/planning_desk/fininvoption.php
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