Professional Documents
Culture Documents
Balaji Project - Ref To Birla Sunlife Insurance
Balaji Project - Ref To Birla Sunlife Insurance
Balaji Project - Ref To Birla Sunlife Insurance
Some investment avenues involve huge risk and some less risk. Depending on the
changing risk environment and emerging investment opportunities, investments
need to be evaluated on a regular basis and form strategies which will help in
minimizing the risk and maximizing the returns to the investor.
1
TABLE OF CONTENTS
Chapter No. Topic Page No.
1 CONTEXTUAL BACKGROUND
A. Brief introduction of the Company
B. Industry and Market conditions
C. Competitor Analysis
D. Product or Service being studied
E. Purpose of study with Objectives
F. Development of Hypothesis/Research Question
2 LITERATURE REVIEW
3 RESEARCH METHODOLOGY
A. Research Design for primary data collection
B. Primary data and Secondary data
C. Sampling Method
D. Sample Size
E. Research Instrument used
F. Processing and collection of data
G. Statistical or Analytical Techniques used
4 Data Analysis and Interpretation
Testing of Hypothesis
5 Summary
Finding(s) of the study
Conclusion
Recommendation(s)
Limitation(s) of the study
6 Bibliography/Courses/References
Appendix
2
Chapter 1
Introduction
Birla Sun Life Insurance Company Limited (BSLI) was established in 2000 as a joint venture
between the Aditya Birla Group, a well known and trusted name globally amongst Indian
conglomerates and Sun Life Financial Inc, leading international financial services organization
from Canada.
With an experience of over 9 years, BSLI has significantly contributed to the growth and
development of life insurance industry in India. BSLI currently ranks amongst top 5 private life
insurance companies in the country. Known for its innovation and industry benchmarks, BSLI has
several firsts to its credit. BSLI was the first Indian Insurance Company to introduce “Free Look
Period” and the same was made mandatory by IRDA for all other life insurance companies. In
addition to this BSLI also pioneered the launch of Unit Linked Life Insurance plans amongst the
private players in India. To establish creditability and transparency, BSLI enjoys the prestige to be
the originator of practice to disclose portfolio on monthly basis. These development benefits have
helped BSLI be closer to its policy holders’ expectations which gets further accentuated by the
compete bouquet of insurance products (viz. pure term plan, life stage products, health plan and
retirement plans) that the company offers.
In addition to this, the extensive reach through its network of 600 branches and 1, 75,000
empanelled advisors. The impressive combination of domain expertise, product range, reach and
ears on ground, helped BSLI cover more than 2 million lives since it commenced operations and
establish a customer base spread across more than 1500 towns and cities in India. To ensure that
customers have an impeccable experience, BSLI ensured lowest outstanding claims ratio of 0.00%
for FY 2008-09. BSLI also has the best Turn Around Time according to LOMA on all claim
Parameters. Such services are well supported by sound financials that BSLI has. The AUM of
BSLI stood at Rs. 8165 crores as on February 28, 2009, while as on March 31, 2009, the company
has a robust capital base of Rs. 2000 crores.
3
Vision:
To be a leader and role model in a broad based and integrated financial services business.
Mission:
To consistently pursue investor's wealth optimization by:
Values
Integrity
Commitment
Passion
Seamlessness
Speed
Industry scenario
Insurance
Today insurance is a tool for investing money that provides an assurance of
security with attractive returns. Insurance is a risk transfer tool. Insurance means “it
covers all uncertain risk of financial assets” as we know that assets have some
economic value. Same that concept is followed on the human being. Insurance
protect the economic value of all financial assets.
4
IC Continues to Dominate Life Insurance Segment
As of 2016, life insurance sector has 29 private players in comparison to only four
in FY02
With 70.4 per cent share market share in FY16, LIC continues to be the market
leader, followed by SBI (5.1 per cent), ICICI (4.9 per cent) and HDFC (4.1 per
cent)
Post liberalisation, the insurance industry in India has recorded significant growth.
The Indian insurance industry is expected to grow to US$ 280 billion by FY2020,
owing to the solid economic growth and higher personal disposable incomes in the
country.
There are 24 life insurance and 28 non-life insurance companies in the Indian
market who compete on price and services to attract customers. The industry has
been spurred by product innovation, vibrant distribution channels, coupled with
targeted publicity and promotional campaigns by the insurers.
Government has approved the ordinance to increase Foreign Direct Investment
(FDI) limit in Insurance sector from 26 per cent to 49 per cent which would further
help attract investments in the sector.
5
The Insurance Regulatory and Development Authority (IRDA) recently allowed
life insurance companies that have completed 10 years of operations to raise
capital through Initial Public Offerings (IPOs).
uring the first half of FY 2016-17 the Life Insurance industry reported a 20 per
cent growth in overall annualised premium equivalent with the help of both private
players and Life Insurance Corporation
market scenerio
Life Insurance
Life insurance is also an attractive financial instrument for the security purpose and
sharing of the uncertain risk. Life insurance may be the other form of saving
investment with safety returns. Like as the following ways:-
Saving through life insurance guarantee financial protection against risk of
death of policy holder.
Liquidity means providing loan and conversion of cash easily. When you
need money it will provide in proper way.
Tax rebate is also another form for saving.
Providing the full sum assured when any loss of the financial assets.
Long term savings can be made in a relatively painless manner because of
the easy installment facility.
Providing all the basic benefits which are coming under the life insurance
plans.
6
Competitor analysis
SWOT Analysis
Competition
1. LIC
2. SBI Life Insurance
7
Life Insurance Corporation (LIC) is the biggest life insurer in India and totally
owned by the union government. It specializes in individual life insurance,
pension plans, and group insurance plans. The organization has in excess of 12
million policyholders and more than 9 lakh agents. Till date it has issued in
excess of 120 million policies.
ICIC Prudential Life Insurance has a big network comprising more than 1900
branches, which includes 1074 micro offices and more than 210,000 advisors.
It is one of the earliest life insurers to have received the AAA (Ind) National
Financial Strength rating from Fitch.
HDFC life has a commendable presence in more than 700 towns and cities and
has 568 branches. It has employed approximately 2 lakh financial advisors for
dealing with different requirements of their customers such as protection,
investments, pension, health, and savings. It also offers customized plans for
the convenience of its clients.
8
Products
BSLI Vision Money Back Plus Plan is a traditional Money Back Plan providing
regular payouts to meet liquidity requirements and also life insurance coverage for
security purposes.
Key Features
It is a participating plan with limited premium payment option
The survival benefits can be deferred until the next payout to enhance the
amount of payout
Benefits
Survival benefits accrue every 4 or 5 years starting @ 10% or 15% and
thereby increasing by 5% in every subsequent payout
9
The minimum death benefit should be 105% of all premiums paid till death
Income tax benefit on the premium paid as per Section 80C and on the claims
received as per Section 10(10D) of the Income Tax Act.
Minimum Maximum
10
Vision life income plan
The Birla Sun Life Vision Plan is a Traditional non-participating Whole Life
Plan, which means that the returns are guaranteed and there is no Bonus declared
in this plan.
How it works – In this plan, premium needs to be paid till the end of the
Guaranteed Survival Benefit Term. This policy accrues Monthly Additions at the
end of each policy month for as long as the premiums are paid.
If the Life Insured survives till 100 years of age then the Sum Assured is paid to him
as Maturity Benefit. This plan has 5 additional riders available.
Death Benefit – In case of death of the Life Insured within the Policy Tenure, i.e.
before the Life Insured is 100 years old, then Death Benefit is paid to the nominee
and the policy would be terminated.
Within the GSB Term, the Sum Assured + accrued Monthly Additions till
date of death + + enhanced Monthly Additions for tenure of more than 21
years, would be paid as Death Benefit
After the GSB Term, the Sum Assured would be paid as Death Benefit
Survival Benefit— At the end of the Guaranteed Survival Benefit (GSB) Term,
the Sum Assured + accrued Monthly Additions + enhanced Monthly Additions for
tenure of more than 21 years would be paid as the Survival Benefit and the policy
continues.
Maturity Benefit – At the end of the Policy tenure, i.e. if the Life Insured survives
till 100 years of age, then the Sum Assured would be paid as Maturity Benefit and
the policy would terminate.
11
Entry Age (Age on last
1 – 60 years
birthday)
Policy Term Whole Life to Age 100
Premium Paying Term 15 to 40 years
Attained Age at end of Premium Paying Term is 18
Minimum
or more
Attained Age at end of Premium Paying Term is 75
Maximum
or less
Minimum Sum Assured Rs. 200,000
Minimum Premium Rs. 18,000
Premium Frequency Annual, Semi-annual, Quarterly, Monthly
12
Purpose of study/Research question:-
Objectives:-
Variables:-
There are certain variables which affects customer perception for buying insurance
plan
Tax benefit
Child education
Investment
Child marriage
Retirement
Protection
.2.
13
Literature review
14
at the importance of cultural variables of which the most significant is the percentage
of the population that professes to be Catholic. They attribute this to a strong
correlation between religious beliefs and risk preferences. The other major factor is
the population’s attitude toward financial instruments in general. Both results are
robust to the model specification. The findings should be of interest to insurance
companies attempting to market life insurance throughout the world.
.3.
RESEARCH
METHODOLOGY
15
Introduction :
Research can be defined as systematized efforts to gain knowledge. A research is
carried out by different methodologies, which have their own pros and cons.
Research methodology is a way to solve research problem along with the logic
behind them. First of all it is necessary to create research design.
RESEARCH DESIGN:
Basically there are three of approaches
Exploratory
Descriptive
Experimental
I have used descriptive research. Descriptive research includes surveys and fact
finding enquire of all kinds.
Research Instrument: Survey Method
SAMPLING:
We can say that sampling is the collection of information about an entire population
through examining a part of it. This is the best way for getting information which
going to help me to analysis the product performance and current market position of
the company.
TYPES OF SAMPLING:
1) Probability Sampling
2) Non- Probability Sampling
I have used non probability sampling. Under this I have chosen convenience
sampling.
16
While deciding about the method of data collection to be used for the study, there
are only two types of data –
Primary Data
Secondary Data
As far as the data collection method is concerned, designing the data collection for
Survey method is applicable to the project. A survey can be conducted by
PERSONAL INTERVIEW, TELEPHONIC INTERVIEW, E-MAIL.
Amongst the above, I had conducted Personal interview.
17
Data Presentation
Analysis
&
Interpretation
Introduction:
These Survey forms are filled by those people who have taken at least one
Life Insurance so that we can get in-depth details about the actual feedback of the
clients. Many of the clients were given survey forms at Birla SunLife pune.
18
Life Insurance Policy %
LIC 84 48
Birla Sunlife 34 19
SBI Life 9 5
ICICI Prudential 25 14
Tata AIG 4 2
Max New York 7 4
Reliance 5 3
HDFC Standard Life 6 3
Others 1 1
Tata AIG
5%
Max New York
Reliance
19%
19
Type of Insurance
%
Plan
Traditional 51 29%
ULIP 67 38%
Health 35 20%
Term 25 14%
14%
29% Traditional
ULIP
20%
Health
Term
37%
INTERPRETATION:
Many respondents had taken more than 1 type of plan. In
this also, I got 175 responses. In recent times with the popularity of ULIP’s, the
traditional plans have taken a back seat. Only 15 respondents out of 175 had pure
term plan.
20
3. Why did you take this plan? (Choose any 2)
Investment
7% Child Education
42%
Child Marriage
4%
Protection
Retirement
9%
Tax-Benefit
22%
INTERPRETATION:
Every respondent was asked to tick 2 points, Surprising many
respondents were taking a Life Insurance not for protection but for tax-saving.
People also concentrated about retirement. Very less respondents had taken
for child marriage, protection.
21
4. From where have you taken the Insurance Policy?
INTERPRETATION:
22
5. Are you getting proper service from the Bank/Agent/Company?
Proper Services %
Yes 81 74%
No 29 26%
Proper Services
26%
Yes
74%
No
INTERPRETATION:
Only 81 respondents were getting good services from their respective seller,
while 29 respondents feel that they were not getting proper service from
their sellers.
23
6. Are you aware about Birla SunLife Insurance Company?
Know Birla
%
SunLife
Yes 99 90%
No 11 10%
10%
90%
Yes No
INTERPRETATION:
99 respondents knew about Birla SunLife Insurance. This clearly states that
most of the people in the market know about Birla SunLife in the market
which is a positive sign for the distribution team.
24
7. From where do you know Birla SunLife?
25
Source of knowledge about Birla
SunLife
6% 3% 0% 8% T.V Ads
3%
8% Radio Ads
15%
Newspaper/Magazine
Online
6% Advisor
Broking Firm
Bank
51%
Relatives/Friends
INTERPRETATION:
Most of the respondents came to know about Birla SunLife from advisors
proving that the company advisors are active in the market. To add Birla has
also made a mark through other mediums like TV & Radio Ads, Newspaper,
Magazines, & Online.
26
8. Do you have any Insurance Policy from Birla SunLife?
34%
Yes
No
66%
INTERPRETATION:
Out of 99 respondents who knew about Birla SunLife, only 34 had taken a
policy of Birla SunLife, While 65 respondents had not taken the policy
which is not a good sign for company.
27
9. Are you going to buy any Insurance Plan in near future?
Yes
No
90%
INTERPRETATION:
84 respondents were interested in taking insurance Policy from birla sun life
in near future. While 26 respondents were not interested in taking any policy
from birla sun life insurance company.
28
10.What type of plan are you planning to take?
Plans to buy %
Investment 10 12%
Child 30 36%
Pension 5 6%
Term 10 12%
Health 29 35%
Plans to buy
12%
34%
Investment
Child
Pension
36% Term
Health
12%
6%
INTERPRETATION:
29
For objective 1. To identify the motivation of people behind buying life
insurance policies.
50
45
40
35
30
18-25
25
26-35
20
36-60
15
10
0
Tax benefit Child Investment Child Retirement Protection
education marriage
30
Surprisingly respondent was taking a Life Insurance not for protection but for tax-
saving followed by Investment & retirement. So the main motive behind purchasing
insurance is not a protection but the tax benefit.
According to my data 18-25 age bracket will Purchase insurance because of tax
benefit and investment on the other hand people whose age is in between 26-35
purchase insurance because of tax benefit and retirement.
31
For objective 2 :- To determine policies likely to be in demand in future
30
25
20
traditional
15 ULIP
10 health
term
5
0
below 100000 1-3 lakhs 3-5 lakhs 5-10 lakhs 10 lakhs
above
According to my survey details most demanded plan is ULIP plan. As ULIP plan is
short term plan so those customers whose salary are in between 1-3 lakhs and 5-10
lakhs are attracted towards ULIP plan because there returns are high but risky.
Those whose salary are in between 3-5 lakhs are shifted to traditional and health
plans because they have limited money and they want to secure there selves first.
32
For objective 3:- To identify dependence of age on types of plan customer buys.
Count of plan Column
to buy Labels
healt investmen pensio ter Grand
Row Labels child h t n m Total
18-25 6 8 5 2 21
26-35 18 18 3 2 6 47
36-60 6 4 2 3 2 17
Grand Total 30 30 10 5 10 85
20
18
16
14
child
12
health
10
investment
8
pension
6
term
4
2
0
18-25 26-35 36-60
According to this analysis people wants child and health plans more than term plans
so companies will focus on their child and health plans.
33
For 18-25 age group people health plan is important and retirement plans are not
important.
For 26-35 age group child and health plans are most important compare to pension
For 36-60 age group also child plans are important.
34
Findings:
LIC is the market leader in Life Insurance with approx 48% market share
followed by ICICI Prudential, SBI Life & Birla SunLife.
Investors are ready to take little risk (by buying ULIP) if the brand of the
company is good.
In recent times with the popularity of ULIP’s, the term and traditional plans
have taken a back seat.
People are not taking term plan which is the most basic form of Insurance.
Surprising respondent was taking a Life Insurance not for protection but for
tax-saving followed by Investment, retirement and child.
35
Suggestions:
• Company should initiate relations with CA’s and tax filling agents to convert
their customer into our prospective client
• Company should create awareness about different Insurance Plans targeting
the higher educational institutions
• Most of the customer buy Insurance policy from advisors
• Give training on time to time basis
• Motivation Program
• conduct test for advisors
• Company should give timely intimation to Advisor & Customer Relating to
Policy document, Policy statements, New Plan
• Company should make the diversified distribution by having tie-ups with
Banks, Broking Firms etc.
36
It was difficult to find respondent as they were busy & collection of data was
difficult. Therefore, the study is carried out based on the availability of the
respondents.
Some people were hesitant to opt for insurance policy from Birla SunLife as
they were keener towards insurance policies offered by LIC of India. Some
respondent’s behaviour and attitude was not satisfactory.
Most of the customer data is been taken through customer coming in the
branch, which may give biased results towards Birla SunLife.
.7.
Conclusion
37
Birla SunLife have maintained very good brand image in the mind of the
customers.
Insurance Sector is booming, less than 4% of people have adequate money
after retirement.
Birla SunLife should advertise & spread awareness about Insurance,
Retirement & Child Plan which will help the distribution network also.
Insurance business depends on the distribution. Birla SunLife should invest in
training advisors & making the distribution system strong.
Birla SunLife should concentrate on giving better after sale service.
Government should also initiate awareness about Insurance products.
Birla SunLife should concentrate on making its distribution network strong
by continues Motivation, Training & Regular Contests for its advisors.
Company should make the diversified distribution by having tie-ups with
Banks, Broking Firms etc.
Birla SunLife should start selling policy online by reducing the charges levied
on a particular policy.
38
Bibliography
1. www.birlasunlife.com
2. www.bloomberg.com
3. www.karvy.com
4. www.indiainfoline.com
5. www.mcxindia.com
6. www.ncdex.com
7. Business Today
8. Business World
9. Economic Times
39
ANNEXURE
Name\
Gender:
Female:
Male:
Age:
18-25:
26-35:
36-60:
Occupation:
Business:
Service:
Student:
Profession:
Housewife:
Others:
Annual income:
below 100000:
100000-300000:
300000-500000:
500000-1000000:
1000000 and above:
40
Q What is your Annual savings?
Below 20000
20000-50000
300000-500000
500000-1000000
1000000 and above
Q What is your Annual savings *
0- 20000
20000-50000
50000-80000
more than 80000
Q Which company Insurance Plan do you have? *
LIC
Birla Sun Life
SBI Life
ICICI Prudential
Tata AIG
Max New York
Reliance
HDFC Standard
Other:
41
Q From where have you taken the Insurance Policy? *
Advisor
Tele caller/ corporate
Bank
Online
Other:
42