A Project On

“Customer Acquisition for Aditya Birla Sun Life Insurance Company,Pune.”

A Project report submitted to Indira Institute of Management Pune in partial fulfillment of the
requirement for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by:
Pratik S. Gawhare

INDIRA INSTIUTE OF MANAGEMENT

PUNE UNIVERSITY

2018-2020
College Certificates

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Company certificate

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 Acknowledgement

I would like to heartily thank Aditya Birla Sun Life Insurance Company for giving me
this opportunity to display my skills and learn extensively about the corporate world. It was an
extremely rewarding experience for me both in terms of skills acquired and work attitudes
imbibed in my first exposure to the corporate world.

With deep gratitude and humble heart, I would like to thank Mr. Jitendra Bapna of
Aditya Birla Sun Life Insurance Company for providing me this opportunity and in giving
basic shape to this project without his help this project would not have materialized.

I express my sincere thanks to Prof. D. K. Sakore and the Director Dr. Pandit Mali
for his invaluable suggestions and support provided during the course of the project.

I am extremely thankful for all those people who have helped me in completion of this project.

Pratik S. Gawhare

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 * EXECUTIVE SUMMARY *
PROJECT TITLE :

“Customer Acquisition for Aditya Birla Sun Life Insurance Company, Pune”.

IMPORTANCE OF THE PROJECT:

 An in-depth study in Customer buying insurance policy.

 To Learn “ How Insurance sector works ?”
 To Learn various insurance policy’s terms & conditions and compare
best of them to customer’s portfolio.
 To Study the growth of insurance sector & and “ How it helps Indian
economy ? ”

OBJECTIVES OF THE PROJECT:

 Learn insurance sector & policies.

 Analysis of customer behavior over Aditya Birla’s policies.

 Make customer aware about an important of birla’s product &

differentiate from competition.

 Study insurance policies as a good investing decision.

 Understand “ Why customer need an insurance policy ? ” .

METHODOLOGY ADOPTED:

 Training session on internship.

 Policy related data on various website.


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LEARNING FROM THE PROJECT:

 Product Pitching.
 Understand various customer and their perspective related to policy.
 Understand customer portfolio and suggest them suitable policy.
 Insurance as an alternative place to invest.
 Understand various policy for short term and long term need of the
customer.

UTILITY TO THE ORGANISATION:

 Promote Birla’s Product & Increase awareness about its scheme and
policies


CONCLUSION:

 It is a booming sector. In India insurance penetration is low of 3.5% -

4% in 2017 – 2018.
 In an upcoming era insurance sector will be growing in fast pace.
 Government should initiate awareness about insurance policy and its
benefits among people.
 Middle class of customer need to have an adequate knowledge about
insurance sector.
 Birla sun life should concentrate better services after sale.


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 INDEX

CHAPTER PAGE NO

1. INTRODUCTION AND RATIONALE OF THE STUDY

2. INDUSTRY / SECTOR PROFILE

3. ORGANISATIONAL PROFILE AND BUSINESS OVERVIEW

4. OUTLINE OF PROBLEM / TASK UNDERTAKEN

5. THEROTICAL FRAMEWORK (SALES PROJECT) /

LITERATURE REVIEW (RESEARCH PROJECT)
6. OBJECTIVES & SCOPES OF PROJECT

7. METHODOLOGY (SALES PROJECT)/

RESEARCH METHODOLOGY (RESEARCH PROJECT)
8. ANALYSIS & FINDINGS

9. CONCLUSION (SALES PROJRCT) / CONCLUSION &

SUGGESTIONS (RESEARCH PROJECT)
10. KEY LEARNINGS & CONTRIBUTION TO THE HOST
ORGANISATION

11. BIBLIOGRAPHY / REFERENCES IN APPROPRIATE STYLY

12. ANNEXURES: GLOSSARY ,QUESTIONAIRE / CHECK LIST
OF QUESTIONS.

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 CHAPTER 1. INTRODUCTION

INTRODUCTION TO THE TITLE:

`In this project the main work which was needed to focus on is, sales process
in financial sector, customer buying behavior of financial product, identify the
target audience ,analyze their risk profile , select the best asset allocation for clients
portfolio and give them a best product.

SIGNIFICANCE OF THE STUDY:

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 CHAPTER 2. INDUSTRY / SECTOR PROFILE
OVERVIEW OF THE INDUSTRY / SECTOR:

The insurance industry of India consists of 57 insurance companies of which 24 are

in life insurance business and 33 are non-life insurers. Among the life insurers,
Life Insurance Corporation (LIC) is the sole public sector company. Apart from
that, among the non-life insurers there are six public sector insurers. In addition to
these, there is sole national re-insurer, namely, General Insurance Corporation of
India (GIC Re). Other stakeholders in Indian Insurance market include agents
(individual and corporate), brokers, surveyors and third party administrators
servicing health insurance claims.

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. Life
insurance industry in the country is expected grow by 12-15 per cent annually for
the next three to five years.
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.
Exchange Rate Used: INR 1 = US$ 0.0159 as on March 31, 2019

CONGTRIBUTION OF THE SECTOR TOWARDS GDP:

Government's policy of insuring the uninsured has gradually pushed insurance

penetration in the country and proliferation of insurance schemes.
Gross premiums written in India reached Rs 5.53 trillion (US$ 94.48 billion) in
FY18, with Rs 4.58 trillion (US$ 71.1 billion) from life insurance and Rs 1.51
trillion (US$ 23.38 billion) from non-life insurance. Overall insurance penetration
(premiums as % of GDP) in India reached 3.69 per cent in 2017 from 2.71 per cent
in 2001.
In FY19 (up to October 2018), premium from new life insurance business
increased 3.66 per cent year-on-year to Rs 1.09 trillion (US$ 15.46 billion). In
FY19 (up to October 2018), gross direct premiums of non-life insurers reached Rs
962.05 billion (US$ 13.71 billion), showing a year-on-year growth rate of 12.40
per cent.

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MAJOR PLAYERS:

1.Life Insurance Corporation of India(LIC):-

LIC is the oldest and most trusted brand amongst the best life insurance companies
in India. Established in 1956, this is a state-owned enterprise which offers a huge
and diverse variety of life insurance products such as endowment plans, money
back plans, term assurance plans, pension plans, unit-linked plans, children plans,
group schemes, special plans and many more. The company is a favoured choice
amongst millions of Indians also for its best claim settlement ratio of over 98%.

2. ICICI Prudential Life Insurance:-

The first private player in the insurance sector of India, ICICI Prudential has a
good popularity amongst its clients. The company offers an array of policies to suit
all kinds of needs of insurers and has a good claim settlement ratio of over 96%.
ICICI Prudential Wealth Builder II has been its most appreciated life insurance
product during previous financial year.

3. SBI Life Insurance:-

A joint venture between State Bank of India, the largest bank of our country and
BNP Paribas, a France-based Banking and Financial Services Company is the
largest in private segment and third most dependable insurance company of India.
Offering a diverse variety of life insurance products, its customer service
mechanism is one of the strongest. The claim settlement ratio of more than 95% is
quite impressive. Two plans namely ‘SBI Life Saral Pension’ and ‘SBI Life Shubh
Nivesh’ are the most sought-after plans offered by the company.

4. HDFC Standard Life Insurance:-

The company stands third in the list of the top private insurance companies in India
with regards to total volume of business. HDFC Click2 Invest and HDFC Click2
Protect Plus are the two remarkable and most demanded life insurance products of
HDFC Standard Life Insurance. It is best known for its healthy claim settlement

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ratio and percentage of customer grievances resolved. Also, marketing its products
using the HDFC Bank channel, this company has its reach in about 1000 towns and
cities of India.

5.Max Life Insurance:-

Recognized for solving all of its customer grievances (yes! 100% of them), Max
Life Insurance was also awarded for settling most claims in the year 2015. Overall,
the claim settlement ratio is close to 97%, the best among all private insurance
brokers in India.

7. Bajaj Allianz Life Insurance:-

The company lives up to the expectations people have with the name of Bajaj
brand by offering a wide range of customization in products and transparency in
benefits. The plans of Bajaj Allianz have been conceptualized and composed for all
age and income groups. Guided by the principle of customer delight, the insurer
manages to resolve more than 99% of its customer complaints and settle 91% of its
claims.

8. Birla Sun Life Insurance:-

Backed by globally renowned Aditya Birla Group, Birla Sun Life Insurance has
more than 600 branches and an extensive network of banks, brokers and corporate
agents marketing its products. The first insurance company to introduce Unit
Linked Plans to the insurance sector, it has ever been known for offering the most
innovative products to its client base. The maximum maturity age for its plans is 80
years, while for most others it is 65 to 75 years.

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 REGULATORY FRAMEWORK:

1. Insurance Regulatory and Development Authority of India (IRDAI), is a

statutory body formed under an Act of Parliament, i.e., Insurance Regulatory and
Development Authority Act, 1999 (IRDAI Act 1999) for overall supervision and
development of the Insurance sector in India.
2. The powers and functions of the Authority are laid down in the IRDAI Act,
1999 and Insurance Act, 1938. The key objectives of the IRDAI include promotion
of competition so as to enhance customer satisfaction through increased consumer
choice and fair premiums, while ensuring the financial security of the Insurance
market.
3. The Insurance Act, 1938 is the principal Act governing the Insurance sector in
India. It provides the powers to IRDAI to frame regulations which lay down the
regulatory framework for supervision of the entities operating in the sector.
Further, there are certain other Acts which govern specific lines of Insurance
business and functions such as Marine Insurance Act, 1963 and Public Liability
Insurance Act, 1991.
4. IRDAI adopted a Mission for itself which is as follows:
 To protect the interest of and secure fair treatment to policyholders;
 To bring about speedy and orderly growth of the Insurance industry (including
annuity and superannuation payments), for the benefit of the common man,
and to provide long term funds for accelerating growth of the economy;
 To set, promote, monitor and enforce high standards of integrity, financial
soundness, fair dealing and competence of those it regulates;
 To ensure speedy settlement of genuine claims, to prevent Insurance frauds
and other malpractices and put in place effective grievance redressal
machinery;
 To promote fairness, transparency and orderly conduct in financial markets
dealing with Insurance and build a reliable management information system to
enforce high standards of financial soundness amongst market players;

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 To take action where such standards are inadequate or ineffectively enforced;
 To bring about optimum amount of self-regulation in day-to-day working of
the industry consistent with the requirements of prudential regulation.
5. Entities regulated by IRDAI:
a. Life Insurance Companies - Both public and private sector Companies
b. General Insurance Companies - Both public and private sector Companies.
Among them, there are some standalone Health Insurance Companies which offer
health Insurance policies.
c. Re-Insurance Companies
d. Agency Channel
e. Intermediaries which include the following:
 Corporate Agents
 Brokers
 Third Party Administrators
 Surveyors and Loss Assessors.
6. Regulation making process:
 Section 26 (1) of IRDAI Act, 1999 and 114A of Insurance Act, 1938 vests
power in the Authority to frame regulations, by notification.
 Section 25 of IRDAI Act, 1999 lays down for establishment of Insurance
Advisory Committee consisting of not more than twenty five members
excluding the ex-officio members. The Chairperson and the members of the
Authority shall be the ex-officio members of the Insurance Advisory
Committee.
 The objects of the Insurance Advisory Committee shall be to advise the
Authority on matters relating to making of regulations under Section 26.
 Accordingly the draft regulations are first placed in the meeting of Insurance
Advisory Committee and after obtaining the comments/recommendations of
IAC, the draft regulations are placed before the Authority for its approval.
 Every Regulation approved by the Authority is notified in the Gazette of India.

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 Every Regulation so made is submitted to the Ministry for placing the same
before the Parliament.
7. The Authority has issued regulations and circulars on various aspects of
operations of the Insurance companies and other entities covering:
 Protection of policyholders’ interest
 Procedures for registration of insurers or licensing of intermediaries, agents,
surveyors and Third Party Administrators;
 Fit and proper assessment of the promoters and the management
 Clearance /filing of products before being introduced in the market
 Preparation of accounts and submission of accounts returns to the Authority.
 Actuarial valuation of the liabilities of life Insurance business and forms for
filing of the actuarial report;
 Provisioning for liabilities in case of non-life Insurance companies
 Manner of investment of funds and periodic reports on investments
 Maintenance of solvency
 Market conduct issues

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CHAPTER 3.ORGANISATIONAL PROFILE AND BUSINESS OVERVIEW

MISSION AND VISION OF THE COMPANY:-

Mission:- To deliver superior value to our customers, shareholders, employees

and society at large.To consistently pursue investor's wealth optimization by:

 Achieving superior and consistent investment

results.
 Creating a conducive environment to hone and retain
talent.
 Providing customer delight.

 Growth opportunities for its employees.

 Institutionalizing system-approach in all aspects of

functioning.
 Upholding highest standards of ethical values at all
times.
Vision:-

To be a premium global conglomerate with a clear focus on each of the

businesses. To be a leader and role model in a broad based and integrated
financial services business.

 To be a Leader: Commitment to being a leader in their businesses

 To be a Role Model: Strive to be best

 To be a broad-based player: Meeting all needs of their target customer

 Integrated Player: Competitive edge through sharing of best practices.

ABCL Endeavour to become a preferred and trusted financial services

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 brand of choice for all their customer’s needs across their life cycle.

REGISTERED ADDRESS/NUMBER OF BRANCHES:-

Aditya Birla Sun Life Insurance Company Limited (ABSLI), is a subsidiary of

Aditya Birla Capital Ltd (ABCL). ABSLI was incorporated on August 4th, 2000
and commenced operations on January 17th, 2001. ABSLI is a 51:49 a joint venture
between the Aditya Birla Group and Sun Life Financial Inc., a leading
international financial services organization in Canada.

Formerly known as Birla Sun Life Insurance Company Limited, ABSLI is one of
India's leading life insurance companies offering a range of products across the
customer's life cycle, including children future plans, wealth protection plans,
retirement and pension solutions, health plans, traditional term plans and Unit
Linked Insurance Plans ("ULIPs").

As of 30 June 2019, total AUM of ABSLI stood at Rs. 410,110 million. ABSLI
recorded a gross premium income of Rs. 12,607 million in Q1 FY 2019-20 and
registering a y-o-y growth of 30% in Individual First Year Premium and currently
ranked 7th in Individual Business (Individual FYP adjusted for 10% single
premium) (Source: IRDAI reported Financials). ABSLI has a nation-wide
distribution presence through 425 branches, 9 bancassurance partners, 6
distribution channels, over 85,000 direct selling agents, other Corporate Agents
and Brokers and through its website. The company has over 10,000 employees and
more than 16 lac active customers.

Aditya Birla Capital Limited (ABCL), is the financial services platform of the
Aditya Birla Group. With a strong presence across the life insurance, asset
management, private equity, corporate lending, structured finance, project finance,
general insurance broking, wealth management, equity, currency and commodity
broking, online personal finance management, housing finance, pension fund
management and health insurance business, ABCL is committed to serving the
end-to-end financial services needs of its retail and corporate customers. Anchored

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by more than 18,000 employees, ABCL has a nationwide reach and more than
2,00,000 agents / channel partners.

COMPOSITION OF BOARDS:-

Mr. Kumar Mangalam Birla, Chairman Aditya Birla Group

Mr.A. Balasubramanian, Chief Executive Officer – Aditya Birla Sun Life AMC
Ltd

Mr. Anil Kumar Singh, Chief Actuarial Officer & Appointed Actuary
Mr. Amit Jain, Chief Financial Officer (CFO) & Head – Group Business
Mr. Ashok Suvarna - Chief Operations Officer
Ms. Shobha Ratna - Head HR & Training
Mr. Amber Gupta - Head - Legal & Company Secretary
Mr. Deven Sangoi, Chief Investment Officer – Equity
Mr. Devendra Singhvi, Chief Investment Officer – Debt
Mr. Shailendra Kothavale, Chief Compliance & Risk Officer
Mr. Parag Raja, Chief Distribution Officer (CDO) – Interim in charge and
Principal Officer
Mr. Ashim Chatterjee, Head- Marketing & Digital
Mr. Ajay Vernekar – Chief Technology Officer

MAJOR CUSTOMERS:-

 Corporates
 Working professionals
 Students
 Self employed
 Business man

FINANCIALS PERFORMANCE:-

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ACHIEVEMENTS:-

Year Awarded From Title

Golden Peacock Global

2011 Golden Peacock Award
Awards Secretariat

Internet Advertising
Best Insurance Integrated ad campaign
2011 Competition (IAC)Awards
(NotJobsButPassion campaign)
2011

Advertising Agencies
Bronze - Media Abby Awards at Goa Fest
2011 Association of India &
2011 as Best Never Before use of Media
Advertising Club Bombay

Advertising Agencies
Gold - Creative Abby Awards at Goa Fest
2011 Association of India &
2011 as Direct marketing Dimensional Mail
Advertising Club Bombay

Advertising Agencies Best use of Outdoor & Ambient media

2011 Association of India & Awards at Goa Fest 2011 - Direct marketing
Advertising Club Bombay Flat Mail

Gold - "financial services website" category

BBC.com-Campaign India
2011 for Birla Sun Life Insurance -
Digital Media Awards 2011
NotJobsButPassion microsite

APPIES 2010 - Asia Pacific

Silver Medal & a letter of appreciation for -
2010 Advertising & Marketing
Wealth with Protection Solutions campaign
Congress

14th Annual Webby Awards Official Nominee - BSLI Email marketing

2010
2010 campaign 'Save Forest'

Institute of Chartered ICAI Awards for Excellence in Financial

2009
Accountants of India (ICAI) Reporting - Silver in Insurance Category

2009 - Recruiting and Staffing Best in Class Awards

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 Outlook Money Awards Best Life Insurer (Runner Up) 2004
2004
2004 TROPHY

Outlook Money Awards Best Life Insurer (Runner Up) 2004

2004
2004 CERTIFICATE

The 8th Asia Insurance

2004 Top five nominees in the category
Industry Awards 2004

The Indo-Canadian 'Successful Performance' for 4 years April

2005
Business Chamber 2005

'The Hewitt Best Employers In India Awards

2004 Hewitt
2004' Trophy

Anil Sachdev (Chairman &

MD of Grow Talent
Company Ltd) Robert
'The Great Place to Work Seminar Series
2007 Levering (Co-founder Great
2007'
Place to Work Institute) and
Jehangir Pocha (Business
World Magazine)

Dr. Bhishma Narain Singh

(Former Governor of Tamil
Nadu & Assam) in The Bhartiya Shiromani Puraskar for
2006
association with the Enhancing the image of India
"Institute of Economic
Studies (IES)"

The Mayor, David Miller –

2005 A letter sent to BSLI - A Message
Toronto

2004 Hewitt Hewitt Best Employers in India 2004

Sponsorship Acknowledgement for - The

2004 Asia Insurance Review
Asia Insurance Review

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 The Institute of Chartered
2012 'Gold Trophy' for Financial Reporting
Accountants of India (ICAI)

The South Asian Federation 'Best Presented Accounts & Corporate

2012
of Accountants (SAFA) Governance Disclosures Awards

2012 Golden Peacock Award Excellence in Corporate Governance

2012 Effies Gold in the 'Services category'

2012 Kaan awards Best use of Radio

Asian Confederation of
2012 Best Employer Brand Award
Businesses

Golden Peacock HR
2012 Golden Peacock HR Excellence Award
Excellence

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ORGANOGRAM:-

FUNCTIONAL OVERVIEW:-

MAJOR PRODUCT LINES:-

There are many pr0ducts and s0luti0ns 0ffered by ABSLI such as

IndividualS0luti0ns, Gr0up S0luti0ns, RuralS0luti0ns and NRIS0luti0ns
some of them as follows:-

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Protection Plans - People spend their working life striving tofulfil the
big dreams for their families. However, in an increasingly uncertain
world, everyone needs toensure that their family is free from any
financial burden in case of any unfortunate events. This is where term
life insurance comes in toprovide complete financial security for their
family. Aditya Birla Sun Life Insurance Protection Solutions are
designed togive an individual a sizeable life cover at low premiums.
Some of the protection solution plans are as follows –

a) ABSLI Digi shieldPlan

b) ABSLI Inc0me ShieldPlan

c) ABSLI Life ShieldPlan

Wealth with protection Solutions -Every0ne has dreams f0r their lives- the
dream h0use, the luxury car, the h0liday abr0ad and many m0re. In 0rder t0
achieve these dreams, it is imp0rtant t0 have a financial g0al in mind and w0rk
t0wards achieving it.

Aditya Birla Sun Life Insurance Wealth with Protection not only
provides life cover but also encourages people tosave regularly for your
future, by offering flexible plans to suit every individual’s needs. There
are three plans under this category-

a) ABSLI Wealth MaxPlan

b) ABSLI Wealth SecurePlan

c) ABSLI Wealth AssurePlan

d) ABSLI F0rtune ElitePlan

e) ABSLI Wealth AspirePlan

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Children Protection Plan- A child is a source of joy for every parent. Everyone
works towards ensuring that they have
themeanstomeetthebigfutureexpensesofyourchild,beitforhighereducation,marriageor
any other dreams that you have for your child. Aditya Birla Sun Life Insurance
Children’s Future Solutions lies in its Vision Star Plan which has been designed
tohelp one build a corpus that allows one tomeet the major expenses of one’s child in
future. Besides providing life cover, it ensures that child’s dream is alsosecured by
making payments at important junctions of his/her life.

Health and Wellness Solutions-With medical c0sts increasing

c0nsiderably, many pe0ple find themselves unprepared f0r sudden medical
emergencies. Aditya Birla Sun Life Insurance Health & Wellness S0luti0ns
ensuresthatanindividualneverlackthefundst0g0inf0rqualitytreatmentincase0fme
dical
emergencies.Theplanhelpst0insure0neselfandhisfamilyf0ranadequatesum,again
stmaj0r illnesses and injuries. ABSLI als0 pr0vides plans that 0ffer the
cashless facility. S0me 0f the health and wellness s0luti0n plans are asf0ll0ws:

a) ABSLI UniversalHealth

b) ABSLI HealthPlan.

Retirement Solutions

During retirement, income stops but the expenses don’t. With inflation
increasing the cost of
basicessentials,savingstodaymightnotsufficemeetingthecostofnecessitiest
hroughoutthe retired life. It is therefore important tostart saving early
and in a planned manner for a comfortable, stress-free retired life. What
is alsoimportant is todetermine the retirement corpus on basis of your
projected needs during retired life. Aditya Birla SunLife Insurance

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 RetirementSolutionsensurethatanindividualenjoyasecureandhappyretired
lifebymaking a fixed payment at maturity or retirement. The Plans under
the sameare:

a) ABSLI Emp0wer Pensi0nPlan

Saving With Protection Solution-

These plans 0ffer a chance t0 systematically save m0ney in small

am0unts while pr0viding largelifec0verandtax-
freereturns.Theam0untc0llectedunderthisplanisinvestedinMutual Funds
0r 0ther financial instruments in 0rder t0 give higher returns. S0me 0f
the plansare:

 ABSLI Secure PlusPlan

 ABSLI Visi0n M0ney Back PlusPlan

 ABSLI Visi0n Life Inc0me Plan

 ABSLI SavingsPlan

 ABSLI Visi0n Life SecurePlan

 ABSLI Inc0me AssuredPlan

 ABSLI Visi0n End0wment PlusPlan

 ABSLI Guaranteed Milest0nePlan

BUSINESS SEGMENT-INCOME, ASSET SIZE AND PROFITABILITY:-

23
 CHAPTER 4. OUTLINE OF PROBLEM/TASK UNDERTAKEN

Consumer Behavior and Preferences:

The consumer behavior, in general, is prompt by number of factors viz. Psycho

graphical, Economical, Social, Politico legal and Demographical. The list is not
exhaustive but it is sufficient to have the deep understanding of the factors
influencing the decision.

psycho graphical factors are those factors that include the behavioral aspect of the
individual viz. Lifestyle, living standard. Here purchase decision in influenced by
those issues that affect the must lifestyle of the consumer or in the other that
reflects the status For e.g.: purchase decision related to buying of car and that to
Mercedes Benz. Talking specifically to the insurance sector, here customer will
buy only that policy that has got high premium or that type of policy which
company is promoting to limited high-incomc level group only. e.g. “Classic Life
premier” policy of Birla Sun life insurance is meant for only those individual, who
can pay at least Rs.25000 per annum.

Economic factors affect the purchase decision by influencing the issues pertaining
to money and income level of the individual. Consumers buy only that product
which will not have any negative effect on his pocket e.g. decision to buy an
insurance policy is influenced by the deepness in the pocket. Social factor affects
the purchase decision by influencing the issues pertaining to social beliefs and
morals.

Marketing Strategies:

Serve as the fundamental underpinning of marketing plans designed to reach

marketing objectives. It is important that those objectives have measurable results
A good marketing strategy should integrate an organization's marketing goals,
policies, and action sequences (tactics) into a cohesive whole. The objective of a
marketing strategy is to provide a foundation from which a tactical plan is
developed. This allows the organization to early out its Mission effectively and
efficiently.

The following techniques are implemented to device the Marketing Strategy for the
Product/service:

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  Segmentation
 Targeting
 Positioning

Market segmentation:

Market segmentation is the process in marketing of grouping a market (i.e.

customers) into smaller subgroups. This is not something that is arbitrarily
imposed on society: it is derived from the recognition that the total market is often
made up of submarkets (called 'segments'). These segments are homogeneous
within (Le. people in the segment are similar to each other in their attitudes about
certain variables). Because of this intra-group similarity, they are likely to respond
somewhat similarly to a given marketing strategy. That is, they are likely to have
similar feeling and ideas about a marketing mix comprised of a given product or
service, sold at a given price, distributed in a certain way, and promoted in a
certain way.

Segmentation:

Market segmentation is widely defined as being a complex process consisting in

two main phases: 1. identification of broad, large markets.

2. Segmentation of these markets in order to select the most appropriate target

markets and develop marketing mixes accordingly.

Positioning:

Simply, positioning is how your target market defines you in relation to your
competitors. A good position is:

1. What makes you unique?

2. This is considered a benefit by your target market Positioning is important

because you are competing with all the noise out there competing for your
potential fans attention. If you can stand out with a unique benefit, you have a
chance at getting their attention. It is important to understand your product ii‘om
the customer’s point of view relative to the competition.

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Targeting:

Targeting involves breaking a market into segments and then concentrating your
marketing efforts on one or a few key segments. Target marketing can be the key
to a small business’s success. The beauty of target marketing is that it makes the
promotion, pricing and distribution of your products and/or services easier and
more cost-effective. Target marketing provides a focus to all of your marketing
activities.

Marketing Mix:

Marketing professionals and specialist use many tactics to attract and retain their
customers. These activities comprise of different concepts. the most Important one
being the marketing mix, There are two concepts for marketing mix, 4P and 7P,
It is essential to balance the 4Ps or the 7Ps of the marketing mix. The concept of
4Ps has been long used for the product industry while the latter has emerged but as
a successful proposition for the services industry.
The 7Ps of the marketing mix that are used to frame marketing strategy of
life insurance companies can be discussed as:

Product:

It must provide value to a customer hut duet not have to the tangible at the same
time. Basically, it involves introducing new products or Improvising the existing
products A product means what we produce. If we produce goods it means tangible
product & when we produce & generate services, it means intangible service
product. A product is both what seller has to sell & buyer has to buy. So insurance
companies sell & services are their products. Apart from life insurance product
customer not only buy product but also services in the form of assistance & advice
of agent. It is natural that customer expect reasonable return for their investments
& insurance companies want to maximize their profitability. Hence while deciding
the product mix services or schemes should be motivational.

Price:

Pricing must be competitive and must entail profit, The pricing strategy comprises
discounts, otters and the like. The pricing of insurance products not only affects the
sales volume and profitability but also influences the perceived quality in the

26
minds of the customers. There are several different methods for pricing insurance,
based on the insurance marketer’s corporate objectives. They are the survival
approach. the sales maximization approach, and the profit maximization approach,
To determine the insurance premium. Marketer’s consider various factors such as
mortality rate, investment earnings, and expense, In addition to the individual risk
Profile based on age, health. etc.. and the time period/ frequency of payment, In
Insurance bussiness the pricing decisions are concerned with:

1.The premium charged against policies.

2.The interest charged for de-faulting the payment of premium & credit facility.
3. Commission charged for underwriting & consultancy activities.

The pricing decisions may be high or low keeping in view the level or standard of
welcome or the policyholders. Mainly, pricing of insurance is in the form of
premium rates. The three main factors used for determining the premium rates
under a life insurance plan are mortality, m & interest. The pricing of insurance is
in form of premium rates. The three main factors for determining the premium
rates under life insurance plan are: Mortality: Average death rates in a particular
area, Expenses: The cost of processing, commission to agents, registration is all
incorporated into the cost of installments & premium sum & forms the integral part
of pricing strategy, Interest: The rate of interest is one of the major factors which
determine people’s willingness to invest in insurance. People would not be willing
to put their funds to invest in insurance business if the interest rates provided by
other financial instruments are higher than the perceived returns from the insurance
premiums. Place:

It refers to the place where the customers can buy the product and how the product
reaches out to that place. This is done through different channels, like Internet,
wholesalers and retailers. This component of marketing mix is related to two
important facet.

 Managing the insurance personnel

 Locating a branch

The management of insurance personal should be done in such a way that gap
between the services promises-services offered is bridged over. In a majority of
service generating organizations, such a gap is found existent which has been
instrumental in making down the image problem .The insurance personnel if not

27
managed properly would make all efforts insensitive. They are required to be given
adequate incentives to show their excellence. They Should be provided intensive
trainings to focus mainly on behavioral management. Another important dimension
to the place mix is related to the location of insurance branches. While locating
branches, branch manager needs to consider the number of factors such as Smooth
accessibility, availability of infrastructural facilities and management of branch
offices and premises.

Promotion:

It includes the various ways of communicating to the customers of what the

company has to offer. It is about communicating about the benefits of using a
particular product or service rather than just talking about its features. The
insurance services depend on effective promotional measures, so as to create
impulsive buying. Promotion comprises of advertising & other publicity tactics.
The promotion is a fight not only for market share, but also for mind share. The
insurance services depend on effective promotional measures, so as to create
impulsive buying. Promotion comprises of advertising & other publicity tactics.
Due attention should be given in selecting the promotional tools. Personnel should
be given adequate training for creating impulsive buying.

People:

People refer to the customers, employees, management and everybody else

involved in. It is essential for everyone to realize that the reputation of the brand
that you are involved with is in the people's hands. Understanding the customer
better allows designing appropriate products. Being a service industry which
involves a high level of people interaction, it is very important to use this resource
efficiently in order to satisfy customers. Training, development &strong
relationships with intermediaries are the key areas to be kept under consideration.

28
Process:

It refers to the methods and process of providing a service and is hence essential to
have a thorough knowledge on whether the services are helpful to the customers, if
they are provided in time, if the customers are informed in hand about the services
and many such things. The process should be customer friendly in insurance
industry. The processing method should be easy to& convenient to the customers.
Installment schemes should be streamlined to cater to the ever growing demands of
the customers. IT will help in servicing the large no. of customers efficiently and
bring down overheads. Technology can either complement or supplement the
channels of distribution cost effectively.

Physical (evidence):

It refers to the experience of using a product or service. When a service goes out to
the customer, it is essential that you help him see what he is buying or not. For
example brochures, pamphlets etc. serve this purpose. Evidence is a key element of
success for all insurance companies. Physical evidence can be provided to
insurance customers in the form of policy certificate and premium payment
receipts.

IDENTIFICATION OF PROBLEM OR TASK UNDERTAKENS:-

IMPLICATION OF EXISTING PROBLEM OR TASK ON THE HOST

ORGANISATION:-

29
CHAPTER 5. THEROTICAL FRAMEWORK(SALES
PROJECT)/LITERATURE REVIEW(RESEARCH PROJECT).

Research on Life Insurance:-

The research literature on Life Insurance is vast and covers a number of

dimensions. The following section provides a brief summary of research in
different areas of life insurance research.

Dr. P.K. Gupta (2000), in the article named “Exploring Rural markets for Private
Life Insurance Players in India” has tried to examine the present state of affairs of
rural life insurance in India and attempts to explore the causes, which led to poor
penetration of rural life insurance markets for which a survey of 2000 sample of
rural customers was been conducted to examine their perception and attitude
towards buying life insurance products. The study bought out interesting facts to
lights like rural households with head of the family more educated but with less
family income are more likely to purchase a life insurance policy than those with
better social security but lesser education & rural customers consider safety of
invested funds as the most important factor in buying a life insurance followed by
claims settlement and assistance in policy purchases. On the distribution side the
research stated that a firm belief among the insurance companies is that agents are
best suited for tapping the rural segments. But the research concluded that the keys
to success in insurance penetration in rural areas for private players are
accessibility, reasonably priced products, effective communication and after-sales
service.

Alok Mittal and Akash Kumar (2003), in their study “An Exploratory Study of
Factors Affecting Selection of Life Insurance Products” have attempted to identify
the factors which are affecting the consumers in taking into consideration before
selecting a life insurance product and determining the extent to which these factors
are taken into consideration for choosing life insurance products. The study
highlighted that consumers take into consideration factors like product attributes,
customer delight, payment mode, product flexibility, risk coverage, grace period,
professional advisor, and maturity period as important before making a decision on
selection of a life insurance product but most important factors which are of vital
importance was product attributes, and the least important was maturity period.

30
T.Venkateswara Rao (2004), Presented a paper titled “Alternative Distribution
Channels in India” in Global Conference of Actuaries. This research points out that
a distribution channel means a set of interdependent organizations involved in the
process of making a product or service available for use or consumption by the
consumer by creating place utility & the value of having the products where the
customer wants them, when they want them. The research said that in Distribution
in Life Insurance requires the intermediaries. The current insurance market
depends heavily on Individual Agency channel but it concluded that Alternative
distribution channels can give competitive edge for the Insurers, a statistics of
Alternative Distribution channels of LIC suggest that corporate agencies including
banks are garnering 82% and the rest 18% is coming from Brokers & Over time
bancassurance may get at least 20% distribution share in life insurance market.

Parag Shil, in his research on the subject, “Distribution Channels For Micro-
Insurance Products In India” seeks to look into the performance, practices and
problems related to distribution channels of micro-insurance in India. The paper
explains that Micro-insurance concept means it’s a concept that provides
protection to individuals who have little savings and is tailored specifically for
lower valued assets and compensation for illness, injury or death. And it also
highlights that Micro-insurance is often found in developing countries. In India
according to IRDA regulation act of 2002 insurance companies were compelled to
obtain insurance business on a quota basis from pre-defined rural areas and social
sectors. In addition the regulation also creates a new intermediary called the micro-
insurance agent for selling and servicing various micro-insurance products among
the rural masses. It also highlights that in India micro insurance are sold by non
government organisation, self help groups & Micro-Finance Institutions. But it was
observed in the study that the exclusion of corporate MFIs, the restriction of
collaborations to one life and one non-life insurer and the limitations placed on
pricing have a dampening effect on the micro-insurance market in India.

C. Balaji (2015), in his paper- Customer awareness and satisfaction of life

insurance policy holders with reference to Mayiladuthurai town tries to measure
awareness among the urban and rural consumer about the insurance sector and also
the various policies involving various premium rates. The study was conducted by
examining around 100 sample respondents which revealed that 100% of
respondents are aware of the life insurance policies; where as 87% of the

31
respondents came to know about insurance policies through agents. But it also
came to light that Most of the respondents are aware of government insurance
company LIC and in the private sector HDFC Standard Life insurance. Finally the
research concludes that the penetration level of insurance in India is only 2.3%
when compared to 9-15% in the developed nations. So there is a huge market for
the Insurance products in the future in India.

India Monika, Halan Renuka & Sane Susan Thomas (2013), in their research
article on “Estimating losses to customers on account of mis-selling life insurance
policies in India” have tried to determine the loss to investors from mis-selling of
insurance products. The approaches used was analysing the the number of lapsed
policies from the annual reports of the insurance regulator, IRDA &the second
method used the persistence of premium payments that are reported in the annual
reports of individual insurance companies. The research has found out that the
estimated loss was Rs.1.5 trillion, or $28 billion, to investors owing to mis-selling
over the 2004-05 to 2011-12 periods. The authors concluded that there will be
adverse economic consequence for consumers if financial law and regulation does
not focus upon consumer protection, the existing policy environment has swung
from a lack of focus on the consumer interests where actually these interests are
the foundation of policy recommendations and regulatory changes .

Vijay Maruti Kumbhar (2013), in his article A Study of FDI in Life Insurance
Sector in India has tried to evaluate the concept of foreign direct investment and its
role in life insurance sector in India. The Insurance sector was opened up for
private sector in 2000 after the enactment of the Insurance Regulatory and
Development Authority Act, 1999 (IRDA Act, 1999) ,this Act permitted foreign
shareholding in insurance companies to the extent of 26 per cent with an aim to
provide better insurance coverage and to augment the flow of long-term resources
for financing infrastructure (Yashwant Sinha, 2013).The paper reveals that out of
24 insurance companies including LIC overall FDI is 25.47 percent in 2012 & Rs.
6324.27 of equity capital is invested by the foreign investors in 22 life insurance
companies in India out of 23 private insurance companies except SAHARA
Insurance and Rs. 18507.65 invested by Indian promoters. The paper concludes
that on the bases of statistics received from the IRDA indicates that there is better
growth trend in FDI in life insurance sector in India.

32
CHAPTER 6: OBJECTIVES AND SCOPE OF PROJECT

Objectives of the project:-

 Learn insurance sector & policies.

 Analysis of customer behavior over Aditya Birla’s policies.

 Make customer aware about an important of birla’s product &

differentiate from competition.

 Study insurance policies as a good investing decision.

 Understand “ Why customer need an insurance policy ? ” .

Scope of the studies:-

o Why customer buy Life Insurance Policy:

We all have dreams for our lives – the dream house, the luxury car,
the holiday abroad and many more. In order to achieve these dreams, it is
important to have a financial goal in mind and work towards achieving it.
With Birla Sun Life Insurance Wealth with Protection Solutions, your dream
is secure. Besides providing you a life cover, these solutions encourage you
to save regularly, by offering flexible plans suited to your goals. A person
buys life Insurance according to his need. The study analyzes the facts about
why a person buys Life Insurance Product.

33
CHAPTER 7: METHODOLOGY(SALES PROJECT) / RESEARCH
METHODOLOGY(RESEARCH PROJECT)

Research is the systematic process of collecting and analyzing information (data)

in order to increase our understanding of the phenomenon about which we are
concerned or interested. It is an activity that helps to improve the processes and
products in every field of life like industry, business, medicine, education,
agriculture, economics etc. It is considered to be the more formal, systematic,
intensive process of carrying out scientific analysis and it involves a systematic
investigation that may result in a foam] record of procedures and some kind of
generalization.

Research is an an of scientific investigation and Refer to search for knowledge. It

can also be defined as scientific search for pertinent information specific topic. It
consists of several steps that need to be implemented in sequential order for
achieving objective of research effectively.

The research done was descriptive in nature because we were able to define what
we wants to measure and must inadequate methods for measuring it along with a
clear cut definition of sample size we wants to study. The aim is to obtain complete
and accurate information and the procedure to be used must be carefully planned.
The design must focus attention on following:

1. Formulating the objective of the study.

2. Designing the methods of data collection.
3. Selecting the sample.
4. Collecting the data.
5. Processing and analyzing the data
6. Reporting the findings.

34
Research Methodology is a Way to systematically solve the problems, It may be
Understood to study how research is done scientifically. In this, we study various
steps that are generally adopted by the researcher in studying research problems
along with the logic behind them, to understand why we are using particular
method of technique so that the research results are capable of being evaluated.
This is analytical research area where we analyze information with cause and its
effects relationship. This analysis leads to the simple conclusions of whether to
lend money to the institution for business.

Process flow chart depicting the activities planned for conducting the project

1. Start
2. Objectives of study
3. Scope of study
4. Research methodology
5. Questionnaire design
6. Conduct survey
7. Compile & Analyze the collected information
8. Data Information
9. Findings
10.Report Writing

Types of Research, Sampling plan, and Data Collection techniques

 Descriptive Research

Descriptive research refers to a set of methods and procedures that describe

marketing variables. Descriptive studies portray these variable by answering
who, what, why and how questions.

35
 These types of research studies may describe such things as consumers’ attitudes,
intentions, and behaviours, or the number of competitors and their strategies.
Descriptive research or statistical research provides data about the population or
universe being studied. Descriptive research is used to describe characteristics of
a population or phenomenon being studied. It does not answer questions about
how/when/why the characteristics occurred. Rather it addresses the "what”
question

For this project it was decided to find out the Preferences and Purpose of
customers in pune area hence the research is descriptive research. It can only
describe the "Who, What, when, where and how" of a situation, not what caused it.

Therefore, descriptive research is used when the objective is to provide a

systematic description that is as factual and accurate as possible. It provides the
number of times something occurs, or frequency, lends itself to statistical
calculations such as determining the average number of occurrences or central
tendencies. Facts or information already available, and analyze these to make a
critical evaluation of the material.

Primary Data: Data observed or collected directly from firsthand experience is

known as primary data. Primary data can be collected from following methods:

 Observation method
 Interview method
 Questionnaires

For this study the primary data is collected through questionnaire technique
customers can fill up the questionnaires.

36
Secondary Data: Published data and the data collected in the past or other parties
are called secondary data. Secondary data can be collected from following
methods,

 Books, Magazines, and Newspapers

 Web sites
 Company brochure

Secondary data was collected from web sites of Birla Sun Life Insurance Co.
Ltd. and old data of the customer which is recorded in workshop used in this
report.

> Research design used: A Research design specifies the methods and procedures
for conducting a particular study. It is a map (or) blue print to which the research is
to be conducted. Descriptive research design has been considered as a suitable
methodology for present study and for data analysis. The personal interview
method of data collection was used for the survey.

Research Approach: Survey , A survey is a research technique used to gather

information from a sample of respondents by employing a questionnaire. Normally
surveys are carried out to obtain primary data.

Data Collection Instrument: Questionnaire

A questionnaire is a set of structured questions to be asked from respondents in a

particular order with appropriate instructions. A questionnaire serves four
functions enables data collection from respondents, lends a structure to interviews,
provides standard means for writing down answers and help in processing the data
collected. Type of questionnaire used: Structured & Non-disguised:

37
l. Structured: The questions used were not Open ended and respondents had to
answer from the given options given.

2.Open-endcd: The questions asked where to understand what the respondents

feel about supermarket and how supermarkets can improve.

> Sampling Design and Sample Size: The sampling method adopted for selecting
the respondents was simple random sampling. This procedure gives each item an
equal probability of being selected. In case of inl‘mite population, the selection of
each item in a random sample is controlled by the same probability and that
successive selections are independent of one another.

Population:

All the customers who have purchased Life Insurance Policy at Pune City only.
The duration of the study being 60 days it was only feasible for the researcher to
interview maximum 100 customers. Therefore, using simple random sampling
method the researcher Selected 80 customers from the customer database
(Sampling universe). From the 100 sampling unit 80 customers responded. Thus
the sampling size was determined as 80 samples.

Sequencing of activities with respect to time

R.M: Type of research, sampling plan, data collection techniques

38
CHAPTER 8: ANALYSIS AND FINDINGS

Data Tabulation

Graphical Interpretation

Findings with explanation

Note: All the analysis should be done using SPSS

39
DATA TABULATION

8.1 Awareness of Life Insurance Organisation:-

Sr.No Insurance Company Actual No. Percentage

1 LIC 75 93%
2 ICICI Prudential Life 50 62%
3 SBI Life 46 57%
4 HDFC Standard Life 31 38%
5 Max Life Insurance 22 27%
6 Bajaj Allianz 23 28%
7 Birla Sun Life 27 33%

Awareness of Life Insurance Organisation

80
70
60
Axis Title

50
40
30
20
10
0
Max
ICICI HDFC Birla
Life Bajaj
LIC Pruden SBI Life Standa Sun
Insuran Allianz
tial Life rd Life Life
ce
Percentage 93% 62% 57% 38% 27% 28% 33%
Actual No. 75 50 46 31 22 23 27

Interpretation:-

 The awareness of LIC (93%) is very high among customer.

 The awareness of ICICI Pru Life and SBI Life are also high amongst
customer.
 The Awareness of HDFC Standard Life is average amongst customer.

40
  The awareness of Max Life, Bajaj Allianz and Birla Sun Life is an average
amongst the customer.

8.2 Preference to Life Insurance Company:-

Sr.No Insurance Company Actual No. Percentage

1 LIC 65 81%
2 ICICI Prudential Life 12 15%
3 SBI Life 22 27%
4 HDFC Standard Life 15 18%
5 Max Life Insurance 14 17%
6 Bajaj Allianz 17 21%
7 Birla Sun Life 25 31%

Preference to Life Insurance Company

Preference to Life Insurance

Company

100%
80%
60%
40%
20%
Percentage
0%

Interpretation:-

 Customer preference to LIC (81%) is very higher than other life

insurance company.

41
  Customer preference LIC because of trust and huge experience than
all other private life insurance company.
 The preference to all other life insurance company is very law

8.4 Reason behind Life insurance policy taken:-

Sr.No Reason Actual No. Percentage

1. Tax Benefit 40 50%
2. Investment 20 25%
3. Security 11 13%
4. Future Need 9 12%
Total 100

Reason behind Life Insurance

Tax Benefit Investment Security Future Need

12%

13%
50%
25%

Interpretation:-

 50% of the customer have taken life insurance for tax benefit.
 25% of the customer have taken life insurance for investment.
 13% of the customer have taken life insurance for security.
 12% of the customer have taken life insurance for Future needs.

42
 8.4 Type of Life Insurance Plan:-

Sr. No Type Of Policy Actual No. Percentage

1. Child 10 12%
2. Health 42 52%
3. Retirement 31 38%
4. Wealth & Protection 22 27%
5. Protection 8 10%

Type of life insurance plan

60%

50%

40%

30%
Percentage
20%

10%

0%
Child Health Retirement Wealth & Protection
Protection

Interpretation:-

 12% Customer have taken Life Insurance policy for Child future.
 52% Customer have taken Life Insurance policy for Health.
 38% Customer have taken Life Insurance policy for Retirement.
 12% Customer have taken Life Insurance policy for Wealth &
Protection.
 12% Customer have taken Life Insurance policy for Protection.

43
8.5 Mode of premium pay:-

Sr.No MODE Actual No. Percentage %

1. Single 0 0
2. Annual 12 15
3. Half Yearly 17 22
4. Quarterly 24 30
5. Monthly 27 33
Total 100

Mode Of Premium Paid

Single Annual Half Yearly
Quarterly Monthly
0% 15%
33%

22%

30%

Interpretation:-

 15% of customer prefers to pay annual premium payment

 22% of customer prefers to pay Half yearly premium payment
 30% of customer prefers to pay Quarterly premium payment
 33% of customer prefers to pay Monthly premium payment

44
8.6 Life Insurance Cover:-

Sr.No Total Cover Actual No. Percentage

1. <500000 35 43.75
2. 5LAC-10LAC 17 21
3. 10LAC-15LAC 11 14
4. 15LAC-20LAC 8 10
5. 20LAC-25LAC 6 7.5
6. 25LAC-30LAC 2 2.5
7. 3000000< 1 1.25
Total 100

Interpretation:-

 43.75% Customer have less than 5lakh of life insurance coverage.

 21% Customer have taken life insurance coverage 5Lakh – 10Lakh.
 14% Customer have taken life insurance coverage 10Lakh – 15Lakh.
 10% Customer have taken life insurance coverage 15Lakh – 20Lakh.
 7.5% Customer have taken life insurance coverage 20Lakh – 25Lakh.
 2.5% Customer have taken life insurance coverage 25Lakh – 30Lakh.
 1.25% Customer have more than 30Lakh of life insurance coverage.

FINDINGS OF THE STUDY

45
 CHAPTER 9. CONCLUSION

 The awareness of Birla Sun Life Insurance is comparatively less than LIC as
it is the oldest insurance firm in India. As it is the oldest insurance firm, it is
able to build trust with the customers.
 The customers mostly prefers the LIC as it has the wide range of network of
agents and offices all over the India. LIC has all able to build the network of
agents in rural area which is most untapped by private organization.
 Around all of customer come to know about the insurance policy from the
agents, which is a very big figure. In today’s technological world also the
customers are coming to know about the policy from agents only is
shocking.
 The main aim of an insurance policy is to have protection. But from the
study it came to know that more than half of the customers that we
interviewed sees insurance policy as investment purpose that will provide
them return and for tax benefit.
 From the study we came to know that most of the customers want to pay
premium monthly, so that the load of paying a large amount of premium
goes away or they want to pay direct yearly so that they don’t have to think
of payment again and again.
 Most of the customer want to have a policy which can give them a dual
benefit of wealth and protection in a same policy rather than going for two
different policies.
 The insurance covered for the policy is very less seeing at the expenses that
we have incur and in most of the cases it may not be sufficient. So there is a
large market available for more sum assured against the policy.
 The half of the customers are satisfied with insurance covered they have but
other half are not happy with the covered assured. They want to have more
sum assured but because of the higher premium they are not able to have
more cover.
 Almost all customers are happy with the Responsiveness, Honesty,
Experience and policies that they have, so in the operations department all
the organization are doing good.

46
 Around seventy percent of the customer are ready to pay a premium which is
around ten percent of their income which can be raised around five percent
more to have a good sum assured.

SUGGESTIONS AND RECOMMENDATIONS

 From study it has been came to know that most of the customer buys the
insurance policy from the Life Insurance Corporation because Life Insurance
Corporation are able to build the trust with the customers. in case of Birla
Sun Life, the organization have to build the trust through various promotion
activities. For this the company can have the get together of their existing
customer which will help the organization to build the trust.
 Most of the customers buys Insurance for return and wealth maximization
purpose, but the main purpose of having an insurance policy is protection.
So there is a need for creating an awareness about the importance of
protection by having an insurance policy. Birla can create awareness through
having camps in colleges or giving presentation at an organization level.
 When we have a policy there is a fix amount of premium that we have to at a
fix date. If you purchase a new policy a method of premium is get fixed by
the organization like yearly or half yearly. There is a need for flexible
method of paying a premium for a same policy.
 Birla Sun Life must widen their reach to the customers by having more
agents on the field. This will create a good network for Birla Sun Life
Insurance.
 The Bottom of Pyramid is mostly untouched regarding life insurance. The
organization can focus on the bottom of pyramid as there is a large customer
base is available which will again help the organization to create trust.
 Complained and feedback should be taken care in well manner to create the
loyalty and goodwill.
 Company should give information to the customers through the marketing
gimmick (sms) using database of customers.

47
 The agents should be well trained and should have the ability to find out
what exactly the customer is looking for,
 The detail chart regarding the cash flow should be provided to the customer
so that the transparency is maintained and the trust gets build.
 The organization must come up with more risk covered for policy compared
with the competitors as most of the customers want more risk covered.

48