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Awareness On Insurance
Awareness On Insurance
Awareness On Insurance
The life insurance market was underdeveloped in the developing counties and started
to open up new vistas and increase its cover with the entry of private players under the
supervision of regulatory bodies. Initially the life insurance was seen more as a tax saving
instrument than a life insurance product. The pace of coverage extension was found to be
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awfully inadequate. In recent times, there has been growing awareness about life insurance
products and the various associated benefits among the policyholders. The private players
customized the insurance products and introduced innovations in annuity, health, education
and pension plans. Offerings like Unit Linked Insurance Plans (ULIPs) have done their bit to
draw attention of individuals towards the insurance segment. Tax benefits have also
contributed to their allure and helped in popularizing insurance products. Conversely, there
are products like medical insurance or med claim as it is commonly referred to, which can
add value to an individual’s insurance portfolio, but are relatively lesser known. People
started thinking that life insurance also caters to the increased savings from the households
thus increasing the much needed domestic savings. Awareness in the benefit of life insurance
as such and also as a secondary investment instrument had to the increased interest in the life
insurance products. The advertisement, promotional activities, ecommerce, m-commerce and
viable strategic planning by the new entrants in the insurance market have also helped in
spreading the consumer awareness and policy benefits. The distribution of life insurance in
innovative methods apart from the standard agent based model has also helped in creating
awareness and interest among people. On-line insurance, kiosks for mallsurance,
bankasurance and other marketing activities are insisting marketers to cater varying needs of
intellectual, rational and busy policyholders as a faster mode of communication approached
by a mass all over the world.
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return for investment. Most people would like to invest in insurance for risk hedging and tax
saving potential. The government provides tax saving benefits for insurance. This is
encouraging people to save their money. The other options of investment are mutual funds,
share market, gold, government bonds/securities, bank and post office deposits.
The fluctuations and financial crisis in stock market is also changing attitude of
consumers for exploring new pattern of investments. Some of the government investments
plans provides return and benefits after certain periods at limited time only. Life insurance
provides returns and risk coverage for whole life. The return may come to the policyholders
on monthly, quarterly, half yearly and annual basis. This feature is possible in money back
policy and in some other life insurance products.
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Industry Analysis
Out of 33 non-life insurance companies, five private sector insurers are registered to
underwrite policies exclusively in health, personal accident and travel insurance segments.
They are Star Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance
Company Ltd, Max Bupa Health Insurance Company Ltd, Religare Health Insurance
Company Ltd and Cigna TTK Health Insurance Company Ltd. There are two more
specialised insurers belonging to public sector, namely, Export Credit Guarantee Corporation
of India for Credit Insurance and Agriculture Insurance Company Ltd for crop insurance.
Market Size
Government's policy of insuring the uninsured has gradually pushed insurance penetration in
the country and proliferation of insurance schemes.
The domestic life insurance industry registered 10.99 per cent y-o-y growth for new business
premium in 2017-18, generating a revenue of Rs 1.94 trillion (US$ 30.1 billion).
Gross direct premiums for non-life insurance industry increased by 17.54 per cent y-o-y in
FY18.
Investments
The following are some of the major investments and developments in the Indian insurance
sector.
Insurance sector companies in India raised around Rs 434.3 billion (US$ 6.7 billion) through
public issues in 2017.
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In 2017, insurance sector in India saw 10 merger and acquisition (M&A) deals worth US$
903 million.
India's leading bourse Bombay Stock Exchange (BSE) will set up a joint venture with Ebix
Inc. to build a robust insurance distribution network in the country through a new distribution
exchange platform
Government Initiatives
The Government of India has taken a number of initiatives to boost the insurance industry.
Some of them are as follows:
National Health Protection Scheme will be launched under Ayushman Bharat to provide
coverage of up to Rs 500,000 (US$ 7,723) to more than 100 million vulnerable families.
Over 47.9 million famers were benefitted under Pradhan Mantri Fasal Bima Yojana
(PMFBY) in 2017-18.
The Insurance Regulatory and Development Authority of India (IRDAI) plans to issue
redesigned initial public offering (IPO) guidelines for insurance companies in India, which
are to looking to divest equity through the IPO route.
IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1) bonds that
are issued by banks to augment their tier 1 capital, in order to expand the pool of eligible
investors for the banks.
Road Ahead
The future looks promising for the life insurance industry with several changes in regulatory
framework which will lead to further change in the way the industry conducts its business
and engages with its customers.
The overall insurance industry is expected to reach US$ 280 billion by 2020.
Demographic factors such as growing middle class, young insurable population and growing
awareness of the need for protection and retirement planning will support the growth of
Indian life insurance.
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Role of Insurance in minimizing risk:
. To create awareness among individuals how insurance plays a key role in reducing risk.
The present study is limited to 80 respondents of age group between 18 & 45. The
total respondents are from Andhrahalli area of Banglore city.
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Objectives of the study:
Research Methodology:
Sample Size : “80”
Sample Type : “Non Random Sampling”
Data collection Instrument : “Structured questionnaire”
Date analysis : Bar graphs, percentage method and Pie charts.
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1) Age group ?
Age
80
70
60
50
40
74
30
20
10
0 4 2 0
less than 30 years 30-40 years 40-50 years 50 & above
INTERPRETATION: from the above graph 74 respondents are of less than 30 years of age
group and 4 respondents are 30-40 years age group and remaining 2 respondents are of 40-50
years of age group.
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2) EDUCATION ?
60 Education
50
40
30
48
20
24
10
8
0 0 0 0 0 0
Matriculatio Higher Post
Illiterate Primary Graduation vocational other
n secondary graduation
Series 1 0 0 0 8 24 48 0 0
INTERPRETATION : from the above graph 48 respondents are post graduated and 24 are
graduated and remaining 8 respondents are higher secondary
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3) Occupation?
employed Un Self student House professional Family Retired
employed employed wife owned
business
20 16 6 34 0 0 4 0
Occupation
40
34
35
30
25
20
20
16
15
10
6
4
5
0 0 0
0
self family owned
emplpoyed un employed student house wife professional retired
employed business
Series 1 20 16 6 34 0 0 4 0
INTERPRETATION: From the above graph we can observe that 34 respondents are
students and 20 respondents are employed and 16 respondents are unemployed 6 respondents
are self employed.
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4) Income per annum (Rs)
Less than 1,00,000- 2,00,000- 3,00,000- 4,00,000- 5,00,000 &
1,00,000 2,00,000 3,00,000 4,00,000 5,00,000 above
50 6 17 0 5 2
40
30
20 17
10 6 5
2
0
0
less than 1,00,000- 2,00,000- 3,00,000- 4,00,000- 5,00,000 &
1,00,000 2,00,000 3,00,000 4,00,000 5,00,000 above
Series 1 50 6 17 0 5 2
INTERPRETATION: from that above graph 50 respondents have income less than
1,00,000 and 17 respondents income 2,00,000-3,00,000 per annum and 6 respondents have
income 1,00,000 to 2,00,000
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5) Do you have insurance policy ?
25
55
yes no
INTERPRETATION: From the above graph, it is observed that, 25 respondents have taken
insurance policy and 55 respondents haven’t taken insurance policy, total respondents being
80.
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6) Who is your insurer?
Public company Private company Others
45 15 20
40
35
30
25
20
20
15
15
10
0
public company private company others
Column1 45 15 20
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7) Source of insurance?
source of insurance
30
25
25
21
20 18
15
10 8
5 4 4
0
0
Newspaper and Television and Agents and sales Internet Direct mail Friends others
Magazine radio representative
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8) What made you buy insurance policy ?
Brand image Excellent My friends Marketing Impressed by Desire to try
of company cost record of people company ads out a new
performance insisted way and company
to buy promotions
34 10 16 5 5 10
34
35
30
25
20
16
15
10 10
10
5 5
5
0
Excellent cost marketing people impressed by
Brand image of desire to try out a
record of my friends insisted way to company ads and
company new company
performance buy promotions
Series 1 34 10 16 5 5 10
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9) What is the main message that you get from the advertisement?
Risk Protection Long term Tax savings Provision others
coverage for the family savings for old age
13 24 19 17 2 5
25 24
20 19
17
15 13
10
5
5
2
0
Protection for the Provision for old
Risk coverage Long term savings Tax savings others
family age
Series 1 13 24 19 17 2 5
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10) How do you make purchase decision of insurance products?
Consult other people Try to buy same Consulting Base my decision on the
to choose the best brand that my friends agents/advisor before brand value of company
alternative available have bought making final decision to and the product
buy
15 18 20 27
25
20
20 18
15
15
10
0
consult other people to consulting agents/advisor base my decision on the
try to buy same brand that
choose the best alternative before making final decision brand value of company and
my friends have bought
available to buy the product
Series 1 15 18 20 27
INTERPRETATION : From the study, we understood that, 33% respondents are making
purchase decision based upon the brand value of company and the products and 25%
respondents make decision through consulting agents and 22% are taking insurance policy
based on the suggestions from the friends and 20% of respondents are taking decisions by
consulting the people.
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11) What is the reason that may have held you back from investing in
insurance products?
Lack of Returns not Promotional Not Inclination to Not
awareness lucrative measures not approached short term affordable
enough attractive by the lump sum
intermediaries gain
23 20 12 0 10 15
20
20
15
15
12
10
10
0
0
promotional inclination to short
retuns not not approached by
lack of awarness measures not term lump sum not affordable
lucrative enough the intermediaries
attractive gain
Series 1 23 20 12 0 10 15
INTERPRETATION : From the study, it is observed that, the major reason that have held
back from investing in insurance products is lack of awareness and the next reason is not
getting sufficient returns , followed by not affordable, not attractive promotional measures &
family inclination to short term lumpsum gain.
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Findings of the study:
From the analysis it is found that 56% of the respondents have insurance policy with
public sector and 25% of other insurance and 19% have their private sector
Only 15% of respondents are insured remaining 85% of respondents are not insured
The major source of insurance from friends , agents and sales representatives.
Brand image of company prompted highly to buy the insurance policy from the
company
Protection for the family is the main message that respondents get from the
advertisement
Respondents make purchase decision based upon the brand value of the company and
the products
Lack of awareness is the reason that held you back from investing in insurance
products awareness and the next reason is not getting sufficient returns , followed by
not affordable, not attractive promotional measures & family inclination to short term
lump sum gain.
SUGGESTIONS :
Insurance companies should educate individuals more on the available insurance
policies and suggest them which suits more to their requirements
Insurance companies should bring new schemes in the market in order to attract more
people
CONCLUSION:
Insurance industry is experiencing a sea change in India and is rapidly growing
AWARNESS should be created among the people towards insurance policies and try
to reach maximum no.of Individuals so companies should approach individuals
according to their requirements and serve them in a better manner with customized
policies.
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