Professional Documents
Culture Documents
Inividual Investor
Inividual Investor
Contents
Sl. No. Titles Page No.
I Chapter 1
Executive summary 1
Statement of the problem & objectives 2
IRDA 29
38
Organization Profile
44
Board of directors
51
Work flow
54
Organization Chart
56
Swot analysis
Research methodology
Measuring tools
III Chapter 3
Analysis and interpretation 57
Findings 82
Suggestions 83
84
Conclusion
IV Chapter 4
Annexure 85
Bibliography 89
Babasabpatilfreepptmba.com
1
A study of investment decisions of individual investor with regard to ULIPs
Executive summary
The main aims of the investor is to minimize the risk involved in investment & maximize
return and today there are number of options available to investor like Post office
investment, bank deposit, Real estate, debentures, Government securities, stock market,
insurance & gold etc. Among these, ULIP introduced by the insurance companies is the
option which require less capital & give the benefit of Professional Management &
suitable for all especially to the persons who do not have time to watch the market
regularly.
ICICI Prudential commenced on January 20th 2002. The Hubli branch however was
established in Feb 2004. The branch office has mainly 2 departments i.e.; Operations and
Sales. The branch office looks after the business from various serviceable locations, still
in pipeline of expansion to cover some parts of North Karnataka.
ULIP came into play in the 1960s and became very popular in Western Europe and
Americas. In India also it has become popular. Today ULIP contribute 80% of the
premium collected by the insurance company.
Babasabpatilfreepptmba.com
2
A study of investment decisions of individual investor with regard to ULIPs
PROBLEM DEFINITION
“To know the factors that affects the investment decisions of individual investor while
investing in ULIPs”
RESEARCH STUDY
“A study of investment decisions of individual investor with regard to ULIPs at ICICI
prudential life insurance co ltd HUBLI branch”.
Babasabpatilfreepptmba.com
3
A study of investment decisions of individual investor with regard to ULIPs
The big question mark in front of every investor is where to invest money to get real
income. There are so many options available to them but it is very difficult to choose
among them, as every option has it’s own merits & demerits. Investor has to be fully
aware of all these options & he should be in a position to choose which one is suitable for
him on the basis of his risk, investment objective and expected return etc. Option that is
suitable for one person may not suit other person’s requirement. This process of choosing
suitable product take long time, the best way for the person who has no time & expertise
in selecting investment avenue can go for ULIP.
The reasons for confining the scope of the research in Hubli were.
1) One of the fast growing city in Karnataka and represents huge market for scope
with more than 90 lakhs people.
2) Hubli is one of the commercial areas.
3) It is a place where the small and large industries are located .with the more
increase population and there style more people are conscious about their lives
• The time was not enough to study the vast and growing life insurance sector in
Hubli city.
• The study and the survey were conducted in hubli city only.
Babasabpatilfreepptmba.com
4
A study of investment decisions of individual investor with regard to ULIPs
LIFE INSURANCE
Life insurance is a contract providing for a payment of a sum of money to the person
assured or failing him to the person entitled to receive the same on the happening of
certain event. Uncertainty of death is inherent in human life. It is this risk, which gives
rise to the necessity for some form of protection against the financial loss arising from
death. Insurance substitutes this uncertainty by certainty. The objective of insurance is
normally to provide:
a. Family protection and
b. Provision for old age.
Conceptually, the mechanism of insurance is very simple, people who are exposed to the
same risks come together and agree that, if any one of the members suffers a loss, the
others will share the loss and make good to the person who lost.
A human life is also an income generating asset. This asset also can be lost through
unexpectedly early death or made non-functional through sickness and disabilities caused
by accidents. Accidents may or may not happen. Death will happen, but timing is
uncertain. If it happens around the time of one’s retirement, when it could be expected
that the income will normally cease, the person concerned could have made some
arrangements to meet the continuing needs. But if it happens much earlier when the
alternate arrangements to meet the continuing needs are not in place, insurance is
necessary to help those dependent on the income.
The risk only means that there is a possibility of loss or damage. It may or may not
happen. There has to be an uncertainly about the risk. Insurance is done against the
contingency that it may happen. Insurance is relevant only if there are uncertainties. If
Babasabpatilfreepptmba.com
5
A study of investment decisions of individual investor with regard to ULIPs
The peril cannot be avoided through insurance. The peril can sometimes be avoided
through better safety and damage control management. Insurance only tries to reduce the
impact of the risk on the owner of the asset and those who depend on that asset. It may
not fully compensate the losses. Only economic or financial losses can be compensated.
Satisfaction of economic need requires generation of income from some source. If the
property, which is the source of such income, were lost fully or partially, permanently or
temporarily, the income too would stop. The purpose of insurance is to safeguard against
such misfortunes any, who are exposed to the same risk but saved from the misfortune.
Thus the essence of insurance is to share losses and substitute certainty.
There are certain basic principles, which make it possible for insurance to remain
popular, and a fair arrangement. The first is the fact that people are exposed to risks and
that the consequences of such risk are difficult for any one individual to bear. It becomes
bearable when the community shares the burden.
The second is that no one person should be in a position to make the risk happen. In other
words, none in the group should set fire to his assets taking unfair advantage of an
arrangement put into place to protect people from the risks they are exposed to.
The IRDA bill provides for the establishment of an authority to protect the interest of the
Babasabpatilfreepptmba.com
6
A study of investment decisions of individual investor with regard to ULIPs
holders of insurance policies, to regulate, promote and insure orderly growth of the
insurance industry and amend the insurance Act 1938, the life Insurance Act, 1956 and
the General Insurance Business (Nationalization) Act, 1972. the bill allows foreign equity
stake in domestic private insurance companies to a maximum of 26 per cent of the total
paid-up capital and seeks to provide statutory status to the insurance regulator.
The need for life insurance comes from the need to safeguard our family. If you care for
your family's needs you will definitely consider insurance. Today insurance has become
even more important due to the disintegration of the prevalent joint family system, a
system in which a number of generations co-existed in harmony, a system in which a
sense of financial security was always there as there were more earning members.
INDUSTRY PROFILE
Insurance is in a manner of speaking the last frontier in the financial sector to open. it is
also a sector which will lead to benefits across the full spectrum, from the individual who
will now have wider choices, to the economy which will see increased savings, to the
Babasabpatilfreepptmba.com
7
A study of investment decisions of individual investor with regard to ULIPs
infrastructure sector which can look forward to long term funding being available. variety
is the spice of life, unless you are in insurance business. Traditionally, the most
successful insurance firms generally take on the least risk. However, factors such as
deregulation, globalization, and the internet are shaking up the industry.
1. LIFE insurance
Death
Diseases
Disability
Pure life covers where policy holder pays for the risk cover and do not expect to receive
anything else in return. Term insurance is now available in India. Opting for such policy
will improve the efficiency of the policy premium and enable policy holder for a bigger
risk cover for the same cost. These are term insurance plans without interest.
Whole life policies require the policy holder to pay premium throughout his/her life and
cover risk for the whole life. The policies without profits are cheaper.
Babasabpatilfreepptmba.com
8
A study of investment decisions of individual investor with regard to ULIPs
Endowment policies are costliest and among this group, money back policies involve
paying highest premium. They give customers maturity benefits (normally, sum assured)
and additional profits by way of bonus, guaranteed additions, loyalty bonus, etc. money
back policies also provide partial payment back to the insured person at pre-set time
periods.
2. Non-Life insurance
• Theft
• Fire
• Loss In Transit
• Accidents
INDIVIDUAL POLICY
When we buy an individual policy, we choose the company, the plan, and the
benefits and features that are right for us and our family .We might be able to buy the
policy from the same agent or company or company representative who sells us property
and liability.
Insurance for your home, automobile or business and although you won’t qualify
for any discount by buying your life insurance and other insurance from the same
representative, working with a single advisor for all your insurance needs can make your
financial life simpler.
Individual policies are typically sold through insurance agents or brokers .If you buy
policy through an agents or brokers .If you buy a policy through an agent or broker, you
will pay a commission, also called as “ load “ that is built into the premium rate.
Babasabpatilfreepptmba.com
9
A study of investment decisions of individual investor with regard to ULIPs
• 1818 The British introduce to India, with the establishment of the Oriental Life
Insurance company in Calcutta.
• 1850 Non life insurance debuts, with Triton Insurance Company.
• 1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer
• 1907 Indian mercantile Insurance is the first Indian non-life insurer.
• 1912 The Indian life assurance companies’ act enacted to regulate the life
insurance business.
• 1938 The insurance act, which forms the basis for most current insurance laws,
replaces earlier act.
• 1956 Life insurance nationalized, government takes over 245 Indian and foreign
insurers and provident societies.
• 1956 Government sets up LIC
• 1972 Non life insurance nationalized, GIC set up.
• 1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up
to draw up a blue print for insurance sector reforms.
Babasabpatilfreepptmba.com
10
A study of investment decisions of individual investor with regard to ULIPs
History
Insurance in India has its history dating back until 1818, when Oriental Life Insurance
Company was started by Anita Bhavsar in Kolkata to cater to the needs of European
community. The pre-independent era in India saw discrimination among the life of
foreigners and Indians with higher premiums being charged for the latter. In 1870,
Bombay Mutual Life Assurance Society became the first Indian insurance company
covering Indian lives at normal rates.
At the dawn of the twentieth century, many insurance companies were founded. In the
year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to
regulate the insurance business. The Life Insurance Companies Act, 1912 made it
necessary that the premium-rate tables and periodical valuations of companies should be
certified by an actuary. However, the disparage still existed as discrimination between
Indian and foreign companies. The oldest existing insurance company in India is the
National Insurance Company Ltd., which was founded in 1906. It is in business. Before
that, the industry consisted of only two state insurers: Life Insurers (Life Insurance
Corporation of India, LIC) and General Insurers (General Insurance Corporation of India,
GIC). GIC had four subsidiary companies.
With effect from December 2000, these subsidiaries have been de-linked from the parent
company and were set up as independent insurance companies: Oriental Insurance
Company Limited, New India Assurance Company Limited, National Insurance
Company Limited and United India Insurance Company Limited.
Babasabpatilfreepptmba.com
11
A study of investment decisions of individual investor with regard to ULIPs
Currently, in India only two million people (0.2 % of the total population of 1 billion) are
covered under Mediclaim, whereas in developed nations like USA about 75 % of the total
population is covered under some insurance scheme. With more and more private
companies in the sector, the situation may change soon.
Acts
The insurance sector went through a full circle of phases from being unregulated to
completely regulated and then currently being partly deregulated. It is governed by a
number of acts.
The Insurance Act of 1938 was the first legislation governing all forms of insurance to
provide strict state control over insurance business.
Life insurance in India was completely nationalized on January 19, 1956, through the
Life Insurance Corporation Act. All 245 insurance companies operating in the country
were merged into one entity, the Life Insurance Corporation of India
The General Insurance Business Act of 1972 was enacted to nationalize the about 100
general insurance companies and subsequently merging them into four companies. All
the companies were amalgamated into National Insurance, New India Assurance,
Oriental Insurance and United India Insurance, which were headquartered in each of the
four metropolitan cities.
Until 1999, there were not any private insurance companies in India. The government
then introduced the Insurance Regulatory and Development Authority Act in 1999,
thereby de-regulating the insurance sector and allowing private companies. Furthermore,
foreign investment was also allowed and capped at 26% holding in the Indian insurance
companies.
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
Babasabpatilfreepptmba.com
12
A study of investment decisions of individual investor with regard to ULIPs
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies were the launch of the
IRDA’s online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to sell
their products, which are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 12 life insurance and 6 general
insurance companies have been registered.
MISSION
To protect the interests of the policyholders, to regulate, promote and ensure orderly
growth of the insurance industry and for matters connected therewith or incidental
thereto.
• Documentation Requirements
• Training
• Examination Process
• Code & License
Documents Required
Babasabpatilfreepptmba.com
13
A study of investment decisions of individual investor with regard to ULIPs
Training
IRDA mandates the individual applying for a license to sell life Insurance must go
through training.
Examination
India has an enormous middle-class that can afford to buy life, health, and
disability and pension plan products. The low level of penetration of life insurance in
India compared to other developed nations can be judged by a comparison of per capita
life premium. Clearly, there is considerable scope to raise per capita life premium if the
market is effectively tapped.
India has traditionally been a high savings oriented country - often described as being on
par with the thrifty Japan. Insurance sector in the USA is as big in size as the banking
Babasabpatilfreepptmba.com
14
A study of investment decisions of individual investor with regard to ULIPs
industry there. This gives us an idea of how important the sector is. Insurance sector
channelises the savings of the people to long term investments. In India where
infrastructure is said to be of critical importance, this sector will bring the nations own
money for the nation. This has made the sector the hottest one in India after IT. With
social security and security to the public at large being the agenda for opening the sector,
the role of the regulator becomes all the more serious and one that would be carefully
watched at every step.
The Insurance Regulatory and Development bill is now an Act. With this India is now the
cynosure of all the global insurance players. Numerous players, both Indian and foreign,
have announced their intention to start their insurance shops in India. IRDA, under the
chairmanship of Mr. Rangachary, opened the window for applying licenses in India. One
of the main differences between the developed economies and the emerging economies is
that insurance products are bought in the former while these are sold in latter. Focus of
insurance industry is changing towards providing a mix of both protection/risk over and
long-term investment opportunities.
Historical Perspective
• Life Insurance is the only sector which garners long term savings.
• Spread of financial services in rural areas and amongst socially less privileged.
• Long term funds for infrastructure.
• Strong positive correlation between development of capital markets and
insurance/pension structure.
Babasabpatilfreepptmba.com
15
A study of investment decisions of individual investor with regard to ULIPs
• Employment generation.
Fiscal Reforms
There is no denying that a thriving insurance industry is critical for every modern
economy. It is, therefore, not surprising that when the government initiated the reforms
process in the early 90s, it decided that dismantling the physical barriers for growth that
emerged in the “License-Permit Raj” though desirable and necessary would not alone
promote growth unless accompanied by fiscal reforms and a thorough revamping of the
financial sector. While in the early period of reforms the government removed many of
the licensing requirements thus giving freedom to the industry to decide on when, where
and how much to invest, a process of fiscal consolidation and reforms in the tax structure
was initiated to make the Indian industry compete effectively with the external
markets. The tax reforms had to be carefully timed so that industry which was insulated
from outside competition for a long period had enough time and resources to withstand
competition from multinationals. The reforms in the financial sector are an integral part
of the whole reforms process and unless there is major break through in this area, a
sustained growth of the economy is not feasible.
The reforms in the Banking sector were primarily aimed at giving the freedom to the
Banks to determine the interest rates based on the risk profile of the customer. The
freeing of the interest rates coupled with other structural reforms were expected to build a
Babasabpatilfreepptmba.com
16
A study of investment decisions of individual investor with regard to ULIPs
strong and resilient banking system. As a result of the reforms initiated in the 90s the
banking system acquired strength, vibrancy and efficiency and the Indian Banks are now
able to effectively compete with their global counterparts. There has been a notable
improvement in the financial health of the banks in terms of capital adequacy,
profitability and asset quality. As regards stock market, the controller of capital issues
was replaced by SEBI, an independent regulator and we have been witnessing for the last
few years increased confidence in the market by the domestic as well as international
investors. The flow of funds into the stock market is the greatest testimony to the
confidence the individuals and corporate repose in the Indian stock market.
Insurance Reforms
It may be recalled that while the reforms in various sectors of the economy were either
welcomed or considered essential to overcome a crisis, there was considerable debate on
the need for reforms in insurance industry. There were many who maintained that since
insurance contracts between insurers and the insured involve special fiduciary
obligations, it is better if those obligations are guaranteed by the State ownership of
insurance companies. It was argued that insurance industry was nationalized on the
grounds that (i) the State would be in a better position to apply the massive resources
generated through insurance for nation building activities; (ii) the insurance companies
were urban centric and the vast majority of the population that live in the rural areas were
denied the benefit of insurance and the State would have the means and the motivation to
reach out to this section of the population and (iii) the governance standards in some of
the companies were low and that there was a threat of insolvency. The votaries of status
quo argued that these considerations were still valid and there was no need for effecting
any changes.
Those who favored change pointed out that there was a wide gap in terms of market
potential and its exploitation by the nationalized industry, the consumer did not benefit in
the absence of competition in terms of wider choice and competitive pricing and that the
reach of the nationalized companies was limited, the range of products offered restricted
Babasabpatilfreepptmba.com
17
A study of investment decisions of individual investor with regard to ULIPs
and the service to the consumers inadequate. It was felt in 1990s that the scale of
economic activity attained in the mid-eighties and the momentum generated through the
reforms process in other sectors of the economy cannot be sustained by state controlled
insurance industry and that insurance penetration and enlargement of the market can be
accomplished only when a large number of companies compete with each other. It was
also realized that the objectives of nationalization of the industry could largely be
accomplished through appropriate regulatory measures and a state monopoly was no
longer necessary.
The champions of change finally prevailed and the Insurance Regulatory and
Development Authority Act was notified in April 2000. It took a long time and a great
deal of perseverance on the part of the government to bring about reforms in insurance
sector.
While the long debates in the 90s; and the twists and turns that surrounded the opening up
of the sector for private participation had at times thrown up serious concerns about the
implementation of insurance reforms in this country, once the legislation was put
through, the actual process of inducting private players into the market had gone off
smoothly. I do not think there is any other sector in this country where the transition from
state monopoly to free market has been as hassle free as that of the insurance sector.
The transition was smooth partly due to the continuity provided by the office of the
interim Regulator through those turbulent 4 years (1996 to 1999) between the creation of
the office and the passing of the IRDA Bill by the Parliament. This office was able to
appreciate the concerns of the Government, the Parliament and the private investors and
harmonize these various view points while framing the Regulations. They also had time
to study the various models obtaining in the world for regulation of the industry and
identify what suited the needs of our country.
Babasabpatilfreepptmba.com
18
A study of investment decisions of individual investor with regard to ULIPs
The Authority was keen that only companies with a sound financial background enter
insurance industry and, therefore, stipulated a high solvency margin in addition to high
entry capital requirements. The high initial capital requirements and the 26% cap on
Foreign Direct Investment had, in no way, deterred the Indian enterprises and the major
foreign insurance companies from collaborating to form the Indian Insurance
companies. The industry has so far witnessed the entry of 15 new private companies in
the life segment and 8 in the non-life segment. In addition, two insurers have been
granted license to operate exclusively in the health sector. Of the private insurers who
commenced operations in the country other than one insurer each in life and non life
segment, all others have set up businesses in collaboration with a foreign partner. In case
of one life insurer, where both the foreign and the Indian partner quit from the Indian
insurance company in the year 2005, the entire equity stake has been picked up by an
Indian entity. Thus, as on date, 21 insurance companies in the private sector are operating
in the country in collaboration with established foreign insurance companies from across
the globe.
Babasabpatilfreepptmba.com
19
A study of investment decisions of individual investor with regard to ULIPs
The insurance sector was opened up for private participation on the ground that in spite
of enormous contributions made by the public sector to expand the coverage and spread
awareness about insurance, the interests of the consumers would be better served if there
is competition among the insurers. It was also recognized that the country has a vast
potential waiting to be tapped and this can be done only when we have a large number of
companies spreading their wings across the country and offering a variety of products
catering to the demands of different sections of the population. It was also felt that
competition would generate a healthy attitude towards redressal of consumer grievances
and improve the quality of service. We have now seven years of experience of public and
private sector operating together and it is, perhaps, time to see whether the expectations
are fulfilled.
Growth of Premium
In spite of this impressive growth by the public sector insurer, the private sector
companies have managed to gain a market share of 26% by the year 2006-07. That they
Babasabpatilfreepptmba.com
20
A study of investment decisions of individual investor with regard to ULIPs
have been able to make such a significant inroad into the market dominated by the LIC is
a great testimony to the leadership of the captains of private industry. The happy feature,
however, is that their market share had not been gained at the expense of LIC but has
come out of the enlarged insurance market. The credit for the enlargement of the market
should legitimately go to the private sector which had identified new markets that were
hitherto unexplored by the LIC. That the LIC had later followed the lead of the private
sector speaks volumes about the contribution made by the liberalization process to the
enlargement of the market.
Insurance Penetration
The opening of the sector has, as earlier pointed out, led to unprecedented increase in
coverage, especially in the life segment and it has impacted the level of insurance
penetration which has witnessed a surge in the last two years. While insurance
penetration was 1.93% in 1999 it rose to 4.8% in the year 2006. It has thus more than
doubled in 7 years. While the increase is impressive in the case of life, where it increased
from 1.39% to 4.1%, it remained stagnant at nearly 0.6% in the case of non-life. The
increased economic activity coupled with recent reforms in general insurance market,
would certainly help expand the market in the years to come.
Insurance Density
In the area of insurance density, significant contribution has been made by the private
sector. We had the problem of not only absence of risk protection through insurance but
also a considerable amount of under insurance. During the pre-liberalization era, the
nationalized companies were unable to target niche markets and were content to sell a
large number of low ticket items spread over the whole country. The private sector has,
on the contrary, started looking at the requirements of various segments of the
population, and introduced need based selling through excellent counseling. It is not
uncommon to see the CEOs of insurance companies personally making presentations to
Babasabpatilfreepptmba.com
21
A study of investment decisions of individual investor with regard to ULIPs
the heads of industrial and service sector companies and advising them on what products
are best suited to their employees. The product development has also benefited through
these interactions as the insurance chiefs could profitably use their feedback to evolve
new products. Through this process they were able to minimize at least to some extent,
the problem of under insurance. We see a significant increase in the size of the
policies. While the average size of the policy before opening up was around Rs.50,000/-
it has now gone up to Rs.1 lakh in the case of L.I.C. In the case of private insurers, the
average size is Rs.2.50 lakhs. The insurance density which was $10 in the year 1999 has
gone up to $33.2 in 2006.
Product Development
The opening up has augured well for the consumer who has now access to a wide range
of new products. Particularly, unit linked products have attracted the attention of the
insured. While this is a product for the discerning public, there seems to be appetite for
this product from all sections. Availability of riders, particularly health riders, has been a
positive development. In the non-life segment crop insurance based on rainfall and
temperature, experiments in health insurance, Directors and Officers liability covers have
made their entry and have come to stay. The removal of tariffs will give a further boost to
development of tailor made products in the years to come.
Agents Training
The expanding market demands a large agency force. The insurers have, therefore, been
recruiting agency force on a continuous basis. Presently there are more than 20 lakh
individual agents and nearly 5000 Corporate Agents. In order to introduce an element of
professionalism in the insurance intermediaries elaborate training and testing
arrangements were introduced by the Authority. The demand for tied agency force has
led to a situation where the resources of the institutes providing training have been
stretched. The inspections by the Authority of these institutes have revealed a number of
areas where improvements were called for. It was noticed that some of the institutes
Babasabpatilfreepptmba.com
22
A study of investment decisions of individual investor with regard to ULIPs
did not have the infrastructure to conduct classes and the faculty was drawn on an ad hoc
basis and the courses conducted in a short span as a result of which many of the agents
did not receive adequate training. It was also noticed that the licensed training institutes
allowed franchisees to conduct training on their behalf which was irregular. The insurers,
in their anxiety to recruit agents, did not pay any attention to the type of training
imparted. The Authority had, during 2004, streamlined the system of training and
impressed upon the insurers the need for greater attention being paid to the training of
their agency force. The revised guidelines were issued after extensive consultations with
the stakeholders and it is hoped that this effort would result in improving the quality of
the agency force. The Authority is keen that the agency force should be properly
equipped as the insurance products are no longer simple and the agent should be able to
assess the requirements and advise on the appropriate policy.
It would not be out of place to mention here the importance of the field force being
adequately trained. Being the person on the spot as a representative of the insurer, it is
essential that the agent recognizes and understands the need of the prospect. Having
identified the need, it is his duty to ensure a need-based selling. In the absence of a need-
based selling, the contracts are not likely to last long and the policyholder looks for the
earliest opportunity to quit. The large attrition rate in the contracts bears silent testimony
to this fact. In this regard, another important factor that comes to my mind is the
unhealthy and illegal practice of paying rebates to solicit business. Sec. 41 of the
Insurance Act, 1938 strictly prohibits rebating for procuring business. Apart from the
statutory imposition, the practice also is generally responsible for the poor retention
ratios. Although the retention ratios of insurance companies have been progressively
showing improvement, a great deal needs to be done in this area. A well-trained agent,
fulfilling his role as the primary underwriter, can contribute a great deal in the
accomplishment of this task.
Corporate Agents
Babasabpatilfreepptmba.com
23
A study of investment decisions of individual investor with regard to ULIPs
The opening of the sector is accompanied by entry of new set of intermediaries in the
insurance market. The institution of corporate agents was a new experiment started by the
Authority to facilitate sale of insurance policies through existing institutions which are in
contact with a large section of the population in the discharge of their normal activities.
The Corporate Agent model is expected to bring down costs of procurement of business
substantially to the insurance company while benefiting the corporate with fee based
income which improves its revenue stream. The insured himself, should feel comfortable
with this model as he would be dealing with an Institution that is familiar to him. In parts
of Europe the Bancassurance model has worked well and the experience of the three
parties to the transaction, namely, the Bank, the insurance company and the customer has
been positive. You would notice in India too the insurers are keen to have working
arrangements with Banks so that they have access to their databank which is a valuable
resource for the insurer to build his customer base. I am confident that in the years to
come Bancassurance would be a critical intermediary in the spread of insurance in the
country.
Brokers
The introduction of brokers in the Indian insurance industry in the liberalized scenario is
another significant development. Brokers act as representatives of the policyholders
although they are paid by the insurers. As a result, they are expected to bring better
service to the clients in several areas like:
• Monitoring the insurance market, the credibility of the players and the quality of
services they render.
• Analyzing the various products available in the market and assist the clients in
choosing the products that suit their requirement.
• Helping the client in the completion of the proposals, conclusion of the contract
and render subsequent service, if any
• Assisting the client in the settlement of claims.
Babasabpatilfreepptmba.com
24
A study of investment decisions of individual investor with regard to ULIPs
One of the spin-offs of liberalization of the insurance sector has been rise in demand for
insurance education, training and research. The Insurance Institute of India’s role appears
to have been confined to professional examinations conducted by it. The course is a
recognized qualification for professional competence in the area of insurance. What was
perhaps ignored is the need to innovate by way of introduction of new subjects in tune
with the demand and expectations of an evolving market after a thorough review of the
existing course curriculum. Examples of such subjects include Health Insurance, Unit
Linked Insurance, Micro insurance, tapping of alternate channels of distribution, ALM
(Asset Liability Management) related issues and re-visiting the insurance regulations in
the context of the evolving economic environment. The market realities dictate that these
areas are dealt with in greater detail. The various stakeholders need to be receptive to the
changing ground realities to be in a position to meet the challenges.
Similarly research in insurance remains a neglected area and there is need for a concerted
effort to develop and define areas of focus for research in tune with the requirements of
the industry. Without a research focus no institute can expect to make tangible gains in
the near future in terms of value addition and meeting the expectations of its members
and the industry at large. Experiences of the other economies and particularly the
emerging economies are particularly relevant in this context.
During the debate on opening of the insurance sector, concern was expressed in some
sections that the competition generated with the entry of private insurers would result in
all the insurers including the public sector insurers to chase the niche markets in the
relatively well off regions and their activities would, therefore, be mostly urban centric
and they would ignore the rural markets and the weaker sections of the society.
Babasabpatilfreepptmba.com
25
A study of investment decisions of individual investor with regard to ULIPs
It was indicated that when the state has monopoly of the sector the public sector
companies were being used as instruments of state for implementing welfare schemes
benefiting the rural masses and the vulnerable sections. These companies were able to
carry out the mandate given by the government even if it meant that they had to suffer
some losses, because the tariff allowed them enough margin in other segments to cover
these losses. This situation would alter with entry of private players and removal of
tariffs. The cushion enjoyed by the PSUs would disappear and they have to compete with
private sector for business and they would then be unable to take on any additional load
imposed by the government by way of obligations to the poor. It was then argued by
many academicians that all business relating to rural areas and weaker sections need not
be loss making and all insurers should have the obligation to serve the rural areas and
weaker sections. The Insurance Act was, therefore, amended authorizing the Regulator to
lay down certain obligations on the insurers towards rural areas and weaker sections.
The Authority notified the regulations on obligations of insurers towards the rural and
social sectors in the year 2000. The definition of rural area is in accordance with the one
provided by the Census of India. It is mandatory for all insurers to comply with the rural
and social sector obligations which are linked to the year of commencement of operations
of the respective company.
The Insurance industry has, in the last 7 years, grown enormously. Global players are
interested in the market and are anxious to come to India. There is a vast untapped
potential with a major portion of the savings parked in Banking sector. Part of those
savings can easily migrate to insurance. While the Authority is happy about the positive
developments in the sector, there are still some concerns in certain areas.
Babasabpatilfreepptmba.com
26
A study of investment decisions of individual investor with regard to ULIPs
ULIPs have been selling like proverbial `hot cakes' in the recent past and they are likely
to continue to outsell their plain vanilla counterparts going ahead. So what is it that
makes ULIPs so attractive to the individual is, as follows
1. Insurace cover plus savings: ULIP serve the purpose of providing life insurance
combined with savings at market-linked returns. To that extent, ULIPs can be termed as a
two-in-one plan in terms of giving an individual the twin benefits of life insurance plus
savings. This is unlike comparable instruments like a mutual fund for instance, which
does not offer a life cover.
2. Multiple investment options: ULIP offer a lot more variety than traditional life
insurance plans. So there are multiple options at the individual's disposal. . ULIPs
generally come in three broad variants:
Although this is how the ULIP options are generally designed, the exact debt/equity
allocations may vary across insurance companies. Individuals can opt for a variant based
on their risk profile. For example, a 30-Yr old individual looking at buying a life
insurance plan that also helps him build a corpus for retirement can consider investing in
the Balanced or even the Aggressive ULIP. Likewise, a risk-averse individual who is not
comfortable with a high equity allocation can opt for the Conservative ULIP.
3. Flexibility: Mutual Funds also offer hybrid/balanced schemes that allow an individual
to select a plan according to his risk profile. The difference lies in the flexibility that
ULIPs afford the individual. Individuals can switch between the ULIP variants outlined
above to capitalize on investment opportunities across the equity and debt markets. Some
insurance companies allow a certain number of `free' switches. This is an important
Babasabpatilfreepptmba.com
27
A study of investment decisions of individual investor with regard to ULIPs
feature that allows the informed individual/investor to benefit from the vagaries of
stock/debt markets. For instance, when stock markets were on the brink of 7,000 points
(Sensex), the informed investor could have shifted his assets from an Aggressive ULIP to
a low-risk Conservative ULIP.
Switching also helps individuals on another front. They can shift from an Aggressive to a
Balanced or a Conservative ULIP as they approach retirement. This is a reflection of the
change in their risk appetite, as they grow older.
4. Works like an SIP: Rupee cost-averaging is another important benefit associated with
ULIPs. With an SIP, individuals invest their monies regularly over time intervals of a
month/quarter and don't have to worry about `timing' the stock markets. As a matter of
fact, even the annual premium in a ULIP works on the rupee cost-averaging principle. An
added benefit with ULIPs is that individuals can also invest a one-time amount in the
ULIP either to benefit from opportunities in the stock markets or if they have an
investible surplus in a particular year that they wish to put aside for the future.
Babasabpatilfreepptmba.com
28
A study of investment decisions of individual investor with regard to ULIPs
The chart below shows how ULIP can meet multiple needs at different life stages.
child
Flexibility Choose low death Increase death Increase death
enhanced
ups to increase
your accumulation
Babasabpatilfreepptmba.com
29
A study of investment decisions of individual investor with regard to ULIPs
creation but stop premium for 2-3 yrs for insurance as the dependencies
liquidity for
education expenses
Withdrawal from Withdrawal from the account Decrease the death benefit-
the account for the for higher education/marriage reduce it to the minimum
education expenses expenses of the child. Premium possible. Choose the income
of the child holiday-to stop premium for a investment option. Top-ups form
accumulation
Because of their flexibility to adjust to different life stage needs, ULIPs fit in very well
Babasabpatilfreepptmba.com
30
A study of investment decisions of individual investor with regard to ULIPs
COMPANY PROFILE
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and Prudential plc, a leading international financial
services group headquartered in the United Kingdom (UK). The company brings together
the local market expertise and financial strength of ICICI Bank and Prudential’s
International life insurance experience. The company was granted a certificate of
Registration by the IRDA on November 24, 2000 and eighteen days later, issued its first
policy on December 12. ICICI Prudential was amongst the first private sector insurance
companies to begin operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).
From its early days, ICICI Prudential seemed to have the wherewithal for a large-scale
business. By March 31, 2002, a little over a year since its launch, the company had issued
100,000 policies translating into premium income of approximately Rs. 1,200 million on
a sum assured of over Rs.23 billion. When the company began its operations, the need
was to build a brand that was relatable to, symbolized trust and was easily recognized and
understood. It launched a corporate campaign ICICI Prudential also made using the
theme of ‘Sindoor’ to epitomize protection, trust, togetherness and all that is Indian;
endearing itself to the masses. The success of the campaign, ‘the calling card of the
company’ saw the brand awareness scores almost at par with its 40 year old competitor.
The theme of protection was also extended to subsequent product and category specific
Babasabpatilfreepptmba.com
31
A study of investment decisions of individual investor with regard to ULIPs
Campaigns –from child plans to retirement solutions –which highlight how the company
will be with its customers at every step of life.
From day one, the company has unflinchingly focused on being mass-market player,
developing products, creating a distribution network and deploying resources that would
further its goal. Apart from ramping up thoroughly training its advisors, the company has
twelve ‘Bancassurance’ partners –the largest in the country. It swiftly revised and added
to its initial range of products, pioneering market-linked products and pension plans, to
offer customers the most flexible life insurance policies in the country. In February 2004,
ICICI Prudential increased its capital base by Rs. 500 million, its ninth capital hike,
bringing the total paid –up equity capital to Rs. 6,750 million. With the authorized capital
of the company standing at Rs. 12 billion, ICICI Prudential continues to have the highest
capital base amongst all life insurers in the country. The challenge ICICI Prudential now
faces is to retain its top-notch position and continue to deliver the finest life insurance
and pension solutions to its ever-growing customer base.
ICICI Prudential’s equity base stands at Rs. 1185 crore with ICICI Bank and Prudential
plc holding 74% and 26% stake respectively. For the year ended March 31, 2006, the
company garnered Rs.2, 412 crore of weighted new business premium and wrote 837,963
policies. The sum assured in force stands at Rs.45, 888 crore. The company has a
network of over 72,000 advisors; as well as 9 bancasurance partners and over 200
corporate agent and broker tie-ups.
ICICI Prudential is also the only private life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA rating is the highest
credit rating, and is a clear assurance of ICICI Prudential’s ability to meet its obligations
to customers at the time of maturity or claims. For the past five years, ICICI Prudential
has retained its position as the No.1 private insurer in the country, with a wide range of
flexible products that meet the needs of the Indian customer at every step in life.
Babasabpatilfreepptmba.com
32
A study of investment decisions of individual investor with regard to ULIPs
Beginning operations in December 2000, ICICI Prudential’s success has been meteoric,
becoming the number one private life insurer within months of launch. Today, it has one
of the largest distribution networks amongst private life insurers in India, with branches
in 54 cities. The total number of policies issued stands at more than 780,000 with a total
sum assured in excess of Rs.160 billion.
ICICI Prudential closed the financial year ended march 31, 2004 with a total received
premium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20
billion. New business premium income shows a 106% growth at Rs. 7.5 billion, driven
mainly by the company’s range of unique unit-linked policies and pension plans. The
company’s retail market share amongst private companies stood at 36%, making it clear
leader in the segment. To add to its achievements, in the year 2003/04 it was adjudged
Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand Survey’ by AC
Nielsen ORG-MARG). It was also conferred the ‘Outlook Money-Best Life Insurer’
award for the second year running. The company is also proud to have won Silver at
EFFIES 2003 for its ‘Retire from work, not life’ campaign. Notably, ICICI Prudential
was also short-listed to the final round for its ‘Sindoor campaign in EFFIES 2002.
ICICI Prudential’s success is rooted in its philosophy to always offer the customer a
choice. This has been the driving force behind its multi-channel distribution strategy,
which includes advisors, banks, direct marketing and corporate agents. In fact, ICICI
Prudential was the first life insurer to invest in multiple channels and offer the customer
choice and access; thus reducing dependency on any one channel, great strides in the
retirement solutions and pensions market.
The Company’s penetration of the retirement market was driven by the focused approach
towards creating awareness through sustained campaign; ‘Retire from work, not life’.
Within six months, the campaign rewarded ICICI Prudential with an increased share of
23% of the total pensions market and 78% amongst private players.
Babasabpatilfreepptmba.com
33
A study of investment decisions of individual investor with regard to ULIPs
A) ICICI BANK
ICICI Bank is India’s second –largest bank with total assets of about Rs 112,024 crore
and a network of about 450 branches and offices and about 1750ATMs. It offers a wide
range of banking products and financial services to corporate and retail customers
through a variety of delivery channels and through its specialized subsidiaries and
affiliates in the areas of investments banking, life and non–life insurance, venture capital,
asset management and information technology. ICICI bank posted a net profit of Rs1,637
crore for the year ended March 31,2004 .ICICI Bank’s equity shares are listed in India on
stock exchanges at Chennai, Delhi, Kolkata and vadodare, the stock Exchange, Mumbai
and the National Stock Exchange of India limited and its American Depositary
Receipts(ADRs) are listed on the New York Stock Exchange(NYSE).
Babasabpatilfreepptmba.com
34
A study of investment decisions of individual investor with regard to ULIPs
B) PRUDENTIAL
Established in London in 1848, Prudential plc, through its businesses in the UK and
Europe, the US and Asia, Provides retail financial services products and services to
more then 16 million customers, policyholder and unit holders worldwide. As of June 30,
2004, the company had over US$300 billion in funds under management. Prudential has
brought to market an integrated range of financial services products that now includes life
assurance, pensions, mutual funds, banking, investment management and general
insurance, In Asia, prudential is the leading European life insurance company with a vast
network of 24 life and mutual fund operations in twelve countries-China, Hong Kong,
India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand
and Vietnam.
DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private life
insures in India, having commenced operations in 69 cities and towns in India. That are
Agra, Ahmedabad, Ajmer, Allahabad, Amristar, Aurangabad, Bangalore, Barely,
Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore,
Dehradun, Durgapur, Faridabad, Goa, Guntur, Gurgaon, Guwahati, Gwalior, Hyderabad,
Hubli, Indore, Jaipur, Jalandhar, Kota,cochin Kottayam, Lucknow, Ludhiana, Madurai,
Mangalore, Meerut, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune,
Raipur, Rajkot, Ranchi, Rourkela, Salem, Siliguri, Surat, Thane, Thrissur, Trichy,
Trivandrum, Udaipur, Vadodara, Vapi, Varanasi, Vashi, Vijayavada and Vizag.
The company has seven bank assurance ties – ups, having agreements with ICICI Bank,
South Indian Bank, Bank of India, Lord Krishna Bank and some co-operative Banks, as
well as 160 corporate agents and brokers. It has also tied up with organizations like Dhan
for distribution of Salaam Zindagi, a policy for the socially and economically
underprivileged sections of society.
Babasabpatilfreepptmba.com
35
A study of investment decisions of individual investor with regard to ULIPs
ICICI prudential has recruited and trained about 50,000 insurance advisors to interface
with and advice customers. Further, It leverages its state–of-the–art IT infrastructure to
provide superior quality of service to customers.
The insurance sector was monopoly of L.I.C. for the past 4 decades. So liberalization has
assured a new era of competition in this sector. Liberalization will bring about strong
marketing of policies by rival firms, which is expected to benefit the customers through a
wider range of products and better services. Insurance is a kind of product that is rarely
bought by the customers and in most cases they are sold to them, so it is essential for the
insurance company to market their products rightly and make people aware of it. Very
soon the market will be flooded with large number of products by a large number of
insurers operating in the Indian market. The potential for growth in the Indian market can
be gauged by the fact that the Indian Insurance Market registered the highest growth in
the Asian region even though India’s share of global insurance market is less than 0.5%
(1998). The private players know that market penetration is low and the potential to
exploit is high.
Some of the other factors that make the Indian Market lucrative are that the Insurance
premier per capita in India is very low and the presence of a very large middle class. The
Confederation of Indian Industry (CII) has projected a growth of Life Insurance premium
from Rs.350 Billion to Rs.1400 billion by 2009. The existing level of awareness of
consumers for insurance products is very low. It is so because only 62% of the Indian
population is educated and less than 10% are well educated. Even the educated
consumers are ignorant about the various products of insurance. Hence it is necessary that
all the insurance company should undertake the extensive plan for educating the
customer.
Babasabpatilfreepptmba.com
36
A study of investment decisions of individual investor with regard to ULIPs
OWNERSHIP PATTERN
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance companies to begin operations in December 2000 after
Receiving approval from IRDA.ICICI Prudential’s equity base stands at Rs.8.25 billion
with ICICI Bank and Prudential holding 74% and 26% stake respectively. In the half year
ended September 30, 2004 the company garnered Rs 498 Crore of new business premium
for a total sum assured of over Rs 23,000 Crore and had over 1 million policies. The
company has a network of over 40,000 advisors; as well as 7 banc assurance tie-ups.
Today, ICICI Prudential has emerged as the No. 1 private life insurer in the country, with
a wide range of flexible products that meet the needs of the Indian customer at every step
in life.
SERVICE
ICICI Prudential has recruited and trained over 83,000 insurance agents to interface with
and advise customers and has the highest number amongst private life insurers on the
Renowned Million Dollar Round Table (MDRT). Further, it leverages its state-of-the-art
IT infrastructure to provide superior quality of service to customers.
Consumer Education
ICICI Prudential has taken the lead in educating the market including seminars on
financial planning and retirement planning
Rural awareness: Gram Sabhas, e-Choupals, Project Shakti, Speaking regional languages
FINSITE - nearly 2000 people have enrolled in the program Newsletters - claims, funds
and group.
ICICI Prudential covers all types of consumers across their life stages, thus ensuring
cover for their entire associated goal based savings
Babasabpatilfreepptmba.com
37
A study of investment decisions of individual investor with regard to ULIPs
Transparency
Only insurance company to include a key feature document of the policy to the policy
holder
• Disclosure of portfolio in the quarterly newsletter
• Unit statement
• Daily NAV
Customer Centric
ICICI Prudential was the first company in the insurance space to decrease commissions
in a bid to increase overall customer value.
Senior management team visits customers to get their feedback on their policy
and service experience (30 visits a month and 300 in a year).
ICICI Prudential has the widest bouquet of need based products.
Service Delivery
ICICI Prudential has rigorous Six Sigma processes in place. Projects have been
undertaken in several customer-facing processes such as policy issuance, medical
process, premium ratings, etc.
Policy Issuance All policies issued within 10 working days.
Jet - 2003 sigma level was 1.9, currently it is 3.25.
Medical Process 1.9 in 2003 to 3 sigma now
Rating of Premiums Counteroffer acceptances up from 15% (Oct 2002) to 60%
(current)
Babasabpatilfreepptmba.com
38
A study of investment decisions of individual investor with regard to ULIPs
BOARD OF DIRECTORS
The ICICI Prudential Life Insurance Company Limited Board comprises reputed
people from the finance industry both from India and abroad.
Ms.Chanda.D.Kochhar, Chairperson
Mr.N.S.Kannan, Director
Mr.K.Ramkumar, Director
Mr.Barry.Stowe, Director
Mr.Adrian.O’Connor, Director
Mr.Keki.Dadiseth, Independent Director
Prof.Marti.G.Subrahmanyam, Independent Director
Ms.Rama.Bijapurkar, Independent Director
Mr.Vinod.Kumar.Dhall, Independent Director
Mr. V. Vaidyanathan, Managing Director & CEO
Babasabpatilfreepptmba.com
39
A study of investment decisions of individual investor with regard to ULIPs
Management Team
The ICICI Prudential Life Insurance Company Limited Management team comprises
reputed people from the finance industry both from India and abroad.
Mr.V.Vaidyanathan,ManagingDirector&CEO
Ms.AnitaPai, ExecutiveVice President - Customer Service, Technology & Marketing
Dr.Avijit.Chatterjee,Appointed.Actuary
Mr. Puneet Nanda, Executive Vice President
ICICI Prudential was positioned as an enabler of protection relevant to the needs of the
life stage.
VISION:
To make ICICI Prudential the dominant Life and Pensions player built on trust by world-
Babasabpatilfreepptmba.com
40
A study of investment decisions of individual investor with regard to ULIPs
• Understanding the needs of customers and offering them superior products and
service
employees
The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the
values describe what the company stands for, the qualities of our people and the way we
work.
MISSION:
ICICI Prudential is committed to provide insurance solutions and services that meet or
exceed the requirements of the clients. We shall strive to enhance customer satisfaction
employees.
CORE VALUES
• Customer First
• Bounder less
• Ownership
Babasabpatilfreepptmba.com
41
A study of investment decisions of individual investor with regard to ULIPs
• Passion
• Integrity
We do believe that we are on the threshold of an existing new opportunity, where we can
play a significant role in redefine and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.
The first Financial Services Company to get the status of Super Brand
Babasabpatilfreepptmba.com
42
A study of investment decisions of individual investor with regard to ULIPs
ICICI Prudential was voted the No.1 Company in a list of China’s top five insurance
companies with the greatest potential for growth and development at the 2004 World
Financial Laboratory Annual Awards.
ICICI Prudential Life was named ‘Best Life Insurer’ at the Outlook Money Awards
2003-2004. This was the second consecutive year that ICICI Pru won this award.
Prudential ICICI Asset Management and ICICI Prudential Life are among the top 50
most trusted services brands in India according to an independent survey by A.C. Nielsen
during 2003.
For the second successive year, Prudential Vietnam was awarded the Golden Dragon
Prize in 2003 – an annual award honoring the strongest foreign companies in Vietnam.
At the Yahoo! Emotive Brand Awards 2003-2004 Prudential was voted as one of the
most appealing and emotive brands by Hong Kong Internet users, which highlights the
strong public recognition of Prudential as a caring and listening company.
PCA LIFE (Korea) received the Global Marketing Grand Prix (Overseas Company)
Award for the successful launch of their PCA Platinum Annuity.
PCA Life (Taiwan) was named as one of the five ‘most reputable’ life insurance
companies in Taiwan for 2003 by Commonwealth magazine.
At the Investment Fund Awards 2003, the Prudential Singapore “PRUlink Singapore
Managed Fund” won the 10-year Special Award for the highest absolute return over 10
years in the Singapore authorized Investment-Linked Products category.
PCA Securities Investment Trust’s Hi-Tech Fund was recognized by Standard & Poor’s
Taiwan Investment Funds Awards 2003 as the Best Performing Fund in the ‘Three-year
Taiwan TMT (Technology Media Telecommunication)’ category.
Babasabpatilfreepptmba.com
43
A study of investment decisions of individual investor with regard to ULIPs
Private Players -
a) Bajaj Allianz Life Insurance Co. Ltd.
b) Birla Sun Life Insurance Co. Ltd.
c) HDFC Standard Life Insurance Co. Ltd.
d) ICICI Prudential Life Insurance Co. Ltd.
e) ING Vysya Life Insurance Co. Ltd.
f) Max New York Life Insurance Co. Ltd.
g) MetLife India Insurance Co. Pvt. Ltd.
h) Kotak Mahindra Old Mutual Life Insurance Co. Ltd.
i) SBI Life Insurance Co. Ltd.
j) TATA AIG Life Insurance Co. Ltd
k) AMP Sanmar Assurance Co. Ltd.
l) Aviva Life Insurance Co. Ltd.
m) Sahara India Life Insurance Co. Ltd.
n) Shriram Sunlam.
o) PNB Life Insurance.
p) Reliance Life Insurance.
q) Axa Bharti Enterprises.
Babasabpatilfreepptmba.com
44
A study of investment decisions of individual investor with regard to ULIPs
WORK FLOW
Actuary
Actuary is a group of mathematician who making insurance product, and these are
the people analyses customers’ requirement and also follows Government policies and
regulation etc. They are well aware about what customers looking for… They are
creating initial insurance product.
Under writers
After making initial insurance product actuaries forward this initial product to under
writers, these people are the real risk-taking people who make initial insurance product
into final product. After under writing final insurance product move to marketing
developers.
Market Developers
These people taking care of further development of product. They will deals with
distribution and promotion activities. Then the product will move to sales people who
directly contact with customers.
Sales people
Sales people are the people directly contact with customers. Its ability of sales
people to give clear idea regarding the new product to the customers. Insurance company
contact with customers through sales persons.
Babasabpatilfreepptmba.com
45
A study of investment decisions of individual investor with regard to ULIPs
ACTURY
SALES PEOPLE
CUSTOMERS
Babasabpatilfreepptmba.com
46
A study of investment decisions of individual investor with regard to ULIPs
PRODUCTS
products that meet the needs of customers at every life stage. Its products can be
SAVINGS SOLUTIONS
Secure Plus is a transparent and feature-packed savings plan that offers 3 levels
of protection.
Save ’n’ Protect is a traditional endowment savings plan that offers life
purchase of an asset.
Babasabpatilfreepptmba.com
47
A study of investment decisions of individual investor with regard to ULIPs
Life Time & Life Time II offer customers the flexibility and control to
customize the policy to meet the changing needs at different life stages. Each
Life Link II is a single premium Market Linked Insurance Plan which combines
life insurance cover with the opportunity to stay invested in the stock market.
Premier Life is a limited premium paying plan that offers customers life
Invest Shield Life is a Market Linked plan that provides capital guarantee on the
Invest Shield Cash is a Market Linked plan that provides capital guarantee on
the invested premiums and declared bonus interest along with flexible liquidity
options.
Invest Shield Gold is a Market Linked plan that provides capital guarantee on
the invested premiums and declared bonus interest along with limited premium
payment terms.
PROTECTION SOLUTIONS
Life Guard is a protection plan, which offers life cover at very low cost. It is
available in 3 options? level term assurance, level term assurance with return of
to help customers cover their home loans in a simple and cost-effective manner.
CHILD PLANS
Babasabpatilfreepptmba.com
48
A study of investment decisions of individual investor with regard to ULIPs
along with life insurance cover for the parent who purchases the policy. The
Smart Kid plans are also available in unit-linked form ? both single premium and
regular premium.
RETIREMENT SOLUTIONS
SecurePlus Pension is a flexible pension plan that allows one to select between 3
levels of cover.
Invest Shield Pension is a regular premium pension plan with a capital guarantee
Golden Years: is a limited premium paying retirement solution that offers tax
benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and
payout stages.
ICICI Prudential also launched “Salaam Zindagi”, a social sector group insurance policy
HEALTH SOLUTION
Babasabpatilfreepptmba.com
49
A study of investment decisions of individual investor with regard to ULIPs
Health Assure: Is a regular premium plan which provides l ong term cover
Health Assure Plus: Is a regular premium plan which provides long term cover
ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance
ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner. The plan
can also be customized to structure schemes that can provide benefits beyond the
statutory obligations.
ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined
of the group. Employees have the option of choosing from various annuity
retirement.
ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps
Babasabpatilfreepptmba.com
50
A study of investment decisions of individual investor with regard to ULIPs
ICICI Prudential Life offers flexible riders, which can be added to the basic policy at a
Accident & disability benefit: If death occurs as the result of an accident during
the term of the policy, the beneficiary receives an additional amount equal to the
rider sum assured under the policy. If the death occurs while traveling in an
authorized mass transport vehicle, the beneficiary will be entitled to twice the sum
Accident Benefit: This rider option pays the sum assured under the rider on death
due to accident.
Critical Illness Benefit: protects the insured against financial loss in the event of
9 specified critical illnesses. Benefits are payable to the insured for medical
Income Benefit: This rider pays the 10% of the sum assured to the nominee every
year, till maturity, in the event of the death of the life assured. It is available on
the premiums are waived till maturity. This rider is available with Secure Plus and
Cash Plus.
Babasabpatilfreepptmba.com
51
A study of investment decisions of individual investor with regard to ULIPs
The Structure
In ICICI Prudential Life Insurance the structure of the organization represents the
hierarchy of the organization.
ORGANIZATION CHART
Babasabpatilfreepptmba.com
52
A study of investment decisions of individual investor with regard to ULIPs
Tied Agency
Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large
advisor force that targets various customer segments. The strength of tied agency lies in
an aggressive strategy of expanding and procuring quality business. With focus on sales
& people development, tied agency has emerged as a robust, predictable and sustainable
business model.
The Operations department oils the work processes between the customer and the
company to ensure consistent and quality service to the customer. To streamline the
operations, the Operations department interfaces between the clients and the agents, the
branches and the underwriters, and manages work processes.
The Vision at Customer Service is to deliver ‘World Class Service’ at every opportunity.
Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query
Resolution Unit are all committed to providing effective solutions to over lakhs of
customers across the country.
Babasabpatilfreepptmba.com
53
A study of investment decisions of individual investor with regard to ULIPs
Information Technology
Marketing
The Marketing function at ICICI Pru covers an array of activities - brand and media
management, channel support, direct marketing and corporate communications. The
Brand and Communications team is in charge of advertising, consumer research, media
planning & buying and Public Relations; that helps develop and nurture ICICI
Prudential's corporate identity while effectively communicating its varied product
offerings to the customer. Channel marketing provides support to the sales force by
streamlining the design and development of collaterals and sales tools across distribution
channels. The Direct marketing team was set up to generate high quality leads for
profitable business. The team achieves this through target database acquisition and
communicating customized product information through e-mailers, telemarketing and
innovative direct mailers.
Babasabpatilfreepptmba.com
54
A study of investment decisions of individual investor with regard to ULIPs
Finance
Human Resource
The people strategy of ICICI Prudential is “To build a committed team with a culture of
innovation, learning and growth. The Human Resource Function at ICICI Prudential
drives the people strategy of the business. With its initial focus on operational excellence
to deliver benefits and services to staff members, HR is now committed to building
capability through state of the art processes. A robust performance management system,
compensation system and a segmented training architecture enable it to deliver value to
the organization.
Business Excellence
The Business Excellence function is committed to building a quality mindset across the
organization. ICICI Prudential is the first organization in the Insurance Industry that has
adopted the Six Sigma Methodology for process efficiency and measurement. The team
Babasabpatilfreepptmba.com
55
A study of investment decisions of individual investor with regard to ULIPs
is also driving the Malcolm Baldrige framework across the organization, an intervention
that examines management of key inputs for Business Excellence.
Strength
• Wide variety of products offered by the company
• High quality service delivered by the company
• Wide spread distribution network has helped to increase its operations
• Dedicated staff and advisors of the company has helped the company to issue
highest numbers of policies and thereby achieve No. 1 place amongst private
players.
• Advertisement campaigns of the company to create awareness among people as
been successful and also become one of the biggest strength of the company.
Weakness
• The product offered is little expensive compared to LIC and cannot be afforded
by lower income group.
• The operation of the company is limited to major cities and towns.
Opportunities
• Company can extend its operation to rural and sub-urban areas by developing
products which suit their needs.
• Since most of the insurable population in our country is unaware of the life
insurance, therefore the company can undertake aggressive marketing and
thereby tap this uninsurable segment.
Threats
• Stiff competition from LIC and other private players like Birla Sun life, HDFC std
life etc
Babasabpatilfreepptmba.com
56
A study of investment decisions of individual investor with regard to ULIPs
• Anticipated tax rates will have a direct impact on the demand of the Insurance.
RESEARCH METHODOLOGY
PROJECT TITLE:
“A study of investment decisions of individual investor with regard to UNIT LINKED
INSURANCE PLANS at ICICI prudential life insurance co ltd HUBLI branch”
Babasabpatilfreepptmba.com
57
A study of investment decisions of individual investor with regard to ULIPs
SURVEY
The survey has been conducted in the Hubli city.
MEASURING TOOLS:
SPSS Software used for measuring the response is in terms of percentage method using
graphical charts like Bar graphs and Pie charts.
Frequencies:
Frequency 1
gender
Cumulative
Frequency Percent Valid Percent Percent
Valid male 94 94.0 94.0 94.0
female 6 6.0 6.0 100.0
Total 100 100.0 100.0
Babasabpatilfreepptmba.com
58
A study of investment decisions of individual investor with regard to ULIPs
gender
female
male
Analysis:
The above table indicates that among 100 respondents 94% are male respondents and
only 6% are female respondents.
Interpretation:
From the survey we came to know that maximum numbers of respondents are male. Very
few respondents are female.
Frequency 2
age
Cumulative
Frequency Percent Valid Percent Percent
Valid 15-25 27 27.0 27.0 27.0
26-45 71 71.0 71.0 98.0
46-55 1 1.0 1.0 99.0
56-65 1 1.0 1.0 100.0
Total 100 100.0 100.0
Babasabpatilfreepptmba.com
59
A study of investment decisions of individual investor with regard to ULIPs
age
56-65
46-55
15-25
26-45
Analysis:
The above chart indicates that out of 100 respondents 27% of respondents fall under the
age group of 15-25, 71% of respondents fall under the age group of 26-45, only 1% are
fall under age group 46-55 and another 1% of respondent fall under the age group of
56-65.
Interpretation:
From the survey we come to know that most of the respondents are between the age
group of 26-45.
Frequency 3
Babasabpatilfreepptmba.com
60
A study of investment decisions of individual investor with regard to ULIPs
occupation
Cumulative
Frequency Percent Valid Percent Percent
Valid salaried govt employee 16 16.0 16.0 16.0
salaried pvt employee 57 57.0 57.0 73.0
business man 13 13.0 13.0 86.0
professional 4 4.0 4.0 90.0
retired and others 10 10.0 10.0 100.0
Total 100 100.0 100.0
occupation
retired and others
professional
business man
salaried govt employ
Analysis:
The above table shows out of 100 respondents 16% of are govt employees, 57% of are
pvt employees, 13% of respondents are businessmen’s, only 4% of respondents are
professionals and 10% of respondents are retired and others.
Interpretation:
From the survey we came to know that most of the respondents are salaried private
employee and the remaining are govt, professionals, and businessmen’s.
Frequency 4
Babasabpatilfreepptmba.com
61
A study of investment decisions of individual investor with regard to ULIPs
income
Cumulative
Frequency Percent Valid Percent Percent
Valid below 2,00,000 95 95.0 95.0 95.0
2,00,000-5,00,000 4 4.0 4.0 99.0
above 5,00,000 1 1.0 1.0 100.0
Total 100 100.0 100.0
income
above 5,00,000
2,00,000-5,00,000
below 2,00,000
Analysis:
The above table indicates that out of 100 respondents 95% of respondents income level
is below 2,00,000 , 4% of respondents income level is between 2,00,000-5,00,000 and
only 1% of respondents income level is above 5,00,000.
Interpretation:
From the survey we came to know that most of the respondent’s income level is below
200000 and only one respondent income level is greater than 500000.
Babasabpatilfreepptmba.com
62
A study of investment decisions of individual investor with regard to ULIPs
Frequency 5
Cumulative
Frequency Percent Valid Percent Percent
Valid yes 96 96.0 96.0 96.0
no 4 4.0 4.0 100.0
Total 100 100.0 100.0
100
80
60
40
Frequency
20
0
yes no
Analysis:
The above table shows that out of 100 respondents 96% of respondents are aware of
ULIP and 4% are not aware.
Interpretation:
From survey we came to know that awareness level of ULIP is more among the
respondents and least respondents unaware.
Babasabpatilfreepptmba.com
63
A study of investment decisions of individual investor with regard to ULIPs
Frequency 6
Cumulative
Frequency Percent Valid Percent Percent
Valid 4 4.0 4.0 4.0
advertisement 38 38.0 38.0 42.0
family and friends 32 32.0 32.0 74.0
advisers 7 7.0 7.0 81.0
internet 19 19.0 19.0 100.0
Total 100 100.0 100.0
40
30
20
Frequency
10
0
advertisement advisers
family and friends internet
Analysis:
This above chart shows that 38% of the respondents aware of ULIP through
advertisements. 32% of the respondents are getting awareness through family and friends,
7% of the respondents are aware through advisers & 19% of the respondents are aware
from the internet.
Interpretation:
From the survey we came to know that most of the respondents aware of ULIPs through
advertisements Because of insurance co. are creating more awareness through Media’s
ex. Magazines, News papers & TV etc. and least percent of respondents getting
awareness through advisors.
Babasabpatilfreepptmba.com
64
A study of investment decisions of individual investor with regard to ULIPs
Frequency 7
Cumulative
Frequency Percent Valid Percent Percent
Valid 4 4.0 4.0 4.0
yes 87 87.0 87.0 91.0
no 9 9.0 9.0 100.0
Total 100 100.0 100.0
80
60
40
Frequency
20
0
yes no
Analysis:
This above chart shows that 87% of respondent’s interested investment in ULIP, 9% of
respondents don’t want to invest in ULIP and 4% of the respondents not responded.
Interpretation:
From the survey we came to that most of the respondents are interested to invest the
money on ULIPs. And only least respondents not interested.
Babasabpatilfreepptmba.com
65
A study of investment decisions of individual investor with regard to ULIPs
Frequency 8
Cumulative
Frequency Percent Valid Percent Percent
Valid 4 4.0 4.0 4.0
icici pru 35 35.0 35.0 39.0
bajaj allianz 9 9.0 9.0 48.0
LIC 50 50.0 50.0 98.0
aviva life insurance 2 2.0 2.0 100.0
Total 100 100.0 100.0
50
40
30
20
Frequency
10
0
icici pru bajaj allianz LIC aviva lif e insurance
Analysis:
The above table shows out of 100 respondents 50% respondents wants to invest in LIC,
35% respondents wants to invest in ICICI PRU, 9 % in BAJAJ ALLIANZ, only 2% in
AVIVA life and 4% are non respondents.
Interpretation:
From the survey we came to know that most of the respondents want to invest in LIC and
rest are in the other co.
Babasabpatilfreepptmba.com
66
A study of investment decisions of individual investor with regard to ULIPs
Frequency 9
what made you to go for that company?
Cumulative
Frequency Percent Valid Percent Percent
Valid 4 4.0 4.0 4.0
brand name 37 37.0 37.0 41.0
service 18 18.0 18.0 59.0
customer relationship 30 30.0 30.0 89.0
better policy option 11 11.0 11.0 100.0
Total 100 100.0 100.0
30
20
10
Frequency
0
brand name customer relationshi
service better policy option
Analysis:
The above table shows that out of 100 respondents 37% of respondents wants invest in
the company for Brand name,18% respondents wants to invest for the service provided,
30% wants to invest for the customer relationship the company maintains. 11% of
respondents want to invest for the better policy options available, and 4% have not
responded.
Interpretation:
Babasabpatilfreepptmba.com
67
A study of investment decisions of individual investor with regard to ULIPs
From the survey we came to know that most of the respondents considering brand name
while investing and least percent of respondents consider better policy option while
investing.
Frequency 10
Cumulative
Frequency Percent Valid Percent Percent
Valid 4 4.0 4.0 4.0
yes 19 19.0 19.0 23.0
no 77 77.0 77.0 100.0
Total 100 100.0 100.0
80
60
40
Frequency
20
0
yes no
Analysis:
The above table shows that out of 100 respondents 19 % of the respondents have invested
in ICICI pru and 77 % respondents have not invested and 4% are not responded.
Interpretation:
Babasabpatilfreepptmba.com
68
A study of investment decisions of individual investor with regard to ULIPs
From the survey we came to know that most of the respondents have not invested ICICI
pru and very least are invested in ICICI pru.
Frequency 11
Cumulative
Frequency Percent Valid Percent Percent
Valid 81 81.0 81.0 81.0
savings solution 3 3.0 3.0 84.0
childrens solution 8 8.0 8.0 92.0
market linked solution 7 7.0 7.0 99.0
retirement solution 1 1.0 1.0 100.0
Total 100 100.0 100.0
80
60
40
Frequency
20
0
savings solution market linked soluti
childrens solution retirement solution
Analysis:
The above table shows 3% of respondent own savings solution policies, 8% of
respondents own child solution policies, 7% of respondents own market linked solutions,
only 1% of the respondent own retirement solution, and 81% not responded.
Babasabpatilfreepptmba.com
69
A study of investment decisions of individual investor with regard to ULIPs
Interpretation:
From the survey we came to know that most respondents own child plans and very least
are own retirement solutions.
Frequency 12
Cumulative
Frequency Percent Valid Percent Percent
Valid 81 81.0 81.0 81.0
below 12,000 4 4.0 4.0 85.0
12,000-19999 9 9.0 9.0 94.0
20,000-50,000 6 6.0 6.0 100.0
Total 100 100.0 100.0
80
60
40
Frequency
20
0
below 12,000 12,000-19999 20,000-50,000
Analysis:
In this chart we conclude that 4% of the respondents are invested below 12000. 9% have
invested between 12000- 19999 and 6% have invested between 20000-50000. These all
are high risk takers. 81% of the clients have not responded.
Interpretation:
Babasabpatilfreepptmba.com
70
A study of investment decisions of individual investor with regard to ULIPs
From the survey we came to know that most of the respondents are having the premiums
between 12000-19000. Least is having below 12000 premiums.
Frequency 13
Cumulative
Frequency Percent Valid Percent Percent
Valid 81 81.0 81.0 81.0
very good 5 5.0 5.0 86.0
good 12 12.0 12.0 98.0
average 1 1.0 1.0 99.0
very bad 1 1.0 1.0 100.0
Total 100 100.0 100.0
80
60
40
Frequency
20
0
very good good average very bad
Analysis:
From the above table out of 100 respondents 5% of customer has rated ICICI PRU as
very good, 12% says good and 1% have rated as average, and only 1% rated very bad.
81% not responded.
Babasabpatilfreepptmba.com
71
A study of investment decisions of individual investor with regard to ULIPs
Interpretation:
From the survey we came to know that most of respondents rated good for the service
provided by ICICI pru. And least respondents rated very bad.
Frequency 14
Cumulative
Frequency Percent Valid Percent Percent
Valid 81 81.0 81.0 81.0
everyone 7 7.0 7.0 88.0
employed individuals 5 5.0 5.0 93.0
only children 3 3.0 3.0 96.0
self 4 4.0 4.0 100.0
Total 100 100.0 100.0
80
60
40
Frequency
20
0
everyone only children
employed individuals self
Analysis:
From the above table 7% respondents say’s all are having the policies, 5% employed
individuals, 3% are only child policies, 4% say’s self and 81% have not responded.
Interpretation:
Babasabpatilfreepptmba.com
72
A study of investment decisions of individual investor with regard to ULIPs
From the survey we came to know that most respondents said all the family members
having ICICI pru policies. And least is said having only child policies.
Frequency 15
how would you rate the offers and promotional activities of icici pru?
Cumulative
Frequency Percent Valid Percent Percent
Valid 81 81.0 81.0 81.0
very good 4 4.0 4.0 85.0
good 10 10.0 10.0 95.0
average 5 5.0 5.0 100.0
Total 100 100.0 100.0
how would you rate the offers and promotional activities of icici pru?
100
80
60
40
Frequency
20
0
very good good average
how would you rate the offers and promotional activities of icici pru?
Analysis:
From the above table 4% respondents rated very good, 10% rated good, 5% as average,
and 81% have not responded.
Interpretation:
Babasabpatilfreepptmba.com
73
A study of investment decisions of individual investor with regard to ULIPs
From the survey we came to know that most of the respondents rated good for the offers
and promotional activities of ICICI pru.
Frequency 16
Cumulative
Frequency Percent Valid Percent Percent
Valid 10 10.0 10.0 10.0
exelent 38 38.0 38.0 48.0
satisfactory 34 34.0 34.0 82.0
good 17 17.0 17.0 99.0
poor 1 1.0 1.0 100.0
Total 100 100.0 100.0
40
30
20
Frequency
10
0
exelent satisfactory good poor
Analysis:
The above table shows that out of 100 respondents17% respondents recognize it as good,
10% clients are not preferred, 34% satisfied and 38% clients recognize it as excellent and
1% as poor.
Interpretation:
Babasabpatilfreepptmba.com
74
A study of investment decisions of individual investor with regard to ULIPs
In order to know the customers, were asked how they recognize ULIP as investment
avenue. It was found that most of the respondents recognized excellent and only least
have recognized as poor.
Frequency 17
Cumulative
Frequency Percent Valid Percent Percent
Valid 13 13.0 13.0 13.0
higher returns 28 28.0 28.0 41.0
liquidity 14 14.0 14.0 55.0
life cover 14 14.0 14.0 69.0
all the above 31 31.0 31.0 100.0
Total 100 100.0 100.0
30
20
10
Frequency
0
higher returns liquidity life cover all the above
Analysis:
Here 28% of the respondents consider high returns, 14% of the respondents consider
liquidity and life cover, and 31% of the respondent considers all above factor and 13%
are not responded.
Babasabpatilfreepptmba.com
75
A study of investment decisions of individual investor with regard to ULIPs
Interpretation:
From the survey we came to know that most of the respondent considers higher returns,
liquidity and life cover all together and least considers life cover factor while investing.
Frequency 18
Cumulative
Frequency Percent Valid Percent Percent
Valid 19 19.0 19.0 19.0
uncertainty 26 26.0 26.0 45.0
high cost 27 27.0 27.0 72.0
not interested
21 21.0 21.0 93.0
in investment
others 7 7.0 7.0 100.0
Total 100 100.0 100.0
20
10
Frequency
0
uncertainty not interested in in
high cost others
Analysis:
From the above table out of 100 respondents 26% of the respondents are uncertain to
invest. 27% of the respondents think it is high cost and 21% of them are not interested in
investments, 7% of respondent says other and 19% are non respondents.
Babasabpatilfreepptmba.com
76
A study of investment decisions of individual investor with regard to ULIPs
Interpretation:
From the survey we came to know respondents thinks that ICICI charging high cost and
least are in the category of others.
Frequency 19
Cumulative
Frequency Percent Valid Percent Percent
Valid 7 7.0 7.0 7.0
child plans 41 41.0 41.0 48.0
pension plans 47 47.0 47.0 95.0
health plans 4 4.0 4.0 99.0
ohers 1 1.0 1.0 100.0
Total 100 100.0 100.0
40
30
20
Frequency
10
0
child plans health plans
pension plans ohers
Analysis:
In this order 41% of the respondents preferred child plans, 47% preferred pension plans,
4% preferred health plans, 1% say others and 7% are not responded.
Interpretation:
Babasabpatilfreepptmba.com
77
A study of investment decisions of individual investor with regard to ULIPs
From the survey we came to know that most of respondents preferred pension plans and
least have preferred others.
Frequency 20
Cumulative
Frequency Percent Valid Percent Percent
Valid 81 81.0 81.0 81.0
gained profit 15 15.0 15.0 96.0
neither profit nor loss 4 4.0 4.0 100.0
Total 100 100.0 100.0
80
60
40
Frequency
20
0
gained profit neither profit nor l
Analysis:
When customers were asked experience having invested in ULIP, it was found that 4%
clients said that neither profit nor loss and 15% clients said profit. So it means that clients
are getting profit from investment. Finally it shows that ULIP is performing Good.
Interpretation:
Babasabpatilfreepptmba.com
78
A study of investment decisions of individual investor with regard to ULIPs
From survey we found that most of investors have gained profit and least of that gained
either profit or loss.
Frequency 21
Cumulative
Frequency Percent Valid Percent Percent
Valid 11 11.0 11.0 11.0
exellent 29 29.0 29.0 40.0
good 56 56.0 56.0 96.0
better 4 4.0 4.0 100.0
Total 100 100.0 100.0
50
40
30
20
Frequency
10
0
exellent good better
Analysis:
Here 4% of respondent agreed that its performing Better and 56% of respondent agreed
that its performing Good and 29% respondent said excellent respectively. And 11% are
not responded.
Interpretation:
Babasabpatilfreepptmba.com
79
A study of investment decisions of individual investor with regard to ULIPs
From the survey we came to know that most of the respondent opinion upon performance
of ULIP is good and least of that have the better opinion.
Frequency 22
Cumulative
Frequency Percent Valid Percent Percent
Valid 16 16.0 16.0 16.0
strongly agree 22 22.0 22.0 38.0
agree 43 43.0 43.0 81.0
iether agree nor disagre 10 10.0 10.0 91.0
disagree 7 7.0 7.0 98.0
strongly disagree 2 2.0 2.0 100.0
Total 100 100.0 100.0
40
30
20
Frequency
10
0
strongly agree iether agree nor dis strongly disagree
agree disagree
Analysis:
Babasabpatilfreepptmba.com
80
A study of investment decisions of individual investor with regard to ULIPs
From the above table 22% are strongly agree, 43% are agree with above, 10% says either
agree nor disagree, 7% are disagree and only 2% are strongly disagree, 16% have not
responded.
Interpretation:
From survey we came to know most of the respondents agrees that they will take the help
of advisor while investing in ULIPs and least have strongly disagreed.
Frequency 23
Cumulative
Frequency Percent Valid Percent Percent
Valid 7 7.0 7.0 7.0
yes 60 60.0 60.0 67.0
no 33 33.0 33.0 100.0
Total 100 100.0 100.0
60
50
40
30
20
Frequency
10
0
yes no
Analysis:
From the above table 60% of respondents plan to invest in ULIP and 33% do not plan to
invest, 7% have not responded.
Babasabpatilfreepptmba.com
81
A study of investment decisions of individual investor with regard to ULIPs
Interpretation:
From the survey we found most of the respondents planning to invest in near future and
least are not interested in investing in future.
Frequency 24
Cumulative
Frequency Percent Valid Percent Percent
Valid 36 36.0 36.0 36.0
right now 22 22.0 22.0 58.0
after one month 11 11.0 11.0 69.0
after six month 31 31.0 31.0 100.0
Total 100 100.0 100.0
30
20
10
Frequency
0
right now after one month after six month
Analysis:
From the above table 22% of respondents plan to invest right now, 11% after a month
and 7% plan to invest after six months and 36% have not responded.
Babasabpatilfreepptmba.com
82
A study of investment decisions of individual investor with regard to ULIPs
Interpretation:
From the survey we found that most of the respondents investing after six months. And
least is said after a month.
Frequency 25
Cumulative
Frequency Percent Valid Percent Percent
Valid 6 6.0 6.0 6.0
definitely will recommend 78 78.0 78.0 84.0
might not recommend 16 16.0 16.0 100.0
Total 100 100.0 100.0
80
60
40
Frequency
20
0
def initely w ill reco might not recommend
Analysis:
Babasabpatilfreepptmba.com
83
A study of investment decisions of individual investor with regard to ULIPs
The above table indicates that 78 % of the respondents definitely will recommend about
the investment in ULIP. 16 % of the respondents might or might not recommend. 6%
have not responded.
Interpretation:
From the survey we found that most will recommend to their friends least might not
recommend.
FINDINGS
Babasabpatilfreepptmba.com
84
A study of investment decisions of individual investor with regard to ULIPs
SUGGESTIONS
• Most of the peoples are middle class peoples so the new products have to be
launched according to which that suits there income.
• Most of the investors consider brand name so the ICICI should increase there
service quality ex: post sale services, customer relationship. To continue as a
leader in private insurance co.
• Maximum number of people takes the help of advisor while investing in ULIP
so the company has to provide proper training for the advisors to plan the
investments according to the needs of the customers.
• The insurance sector is still having the untapped market and LIC is the leader
in the sector so the ICICI should have to take step forward to know what are
the individual’s investment decisions, according to their perceptions,
preferences and income levels.
Babasabpatilfreepptmba.com
85
A study of investment decisions of individual investor with regard to ULIPs
CONCLUSION
The study aimed at identifying investor decisions with regard to ULIPs, so I have
concluded that majority of the respondents are satisfied with ULIPs performance and they
are having good investment decisions. Hence ICICI pru has great potential market in
HUBLI to make an aware about ULIP’s.
This study has basically helped to know how Unit Linked Insurance Plans are working
and how they differ. After comparing investment decisions of individuals it can be
concluded that most of investors go with the brand names and where there is low initial
charges are incurred.
Babasabpatilfreepptmba.com
86
A study of investment decisions of individual investor with regard to ULIPs
ANNEXURY
QUESTIONNAIRE
Sir/ Madam,
Respondent profile
NAME:
ADDRESS:
Babasabpatilfreepptmba.com
87
A study of investment decisions of individual investor with regard to ULIPs
Babasabpatilfreepptmba.com
88
A study of investment decisions of individual investor with regard to ULIPs
10. How would you rate the services of ICICI prudential life insurance?
Babasabpatilfreepptmba.com
89
A study of investment decisions of individual investor with regard to ULIPs
19. You always take the help of a advisor while investing in ULIPs.
20. Do you have any plan of investing in near future? (If no go to Q. 22)
a. Yes b. No
21. When do you plan to invest?
a. right now b. after one month
c. After six months
22. How likely are you to recommend investment in ULIP to your friend?
a. Definitely will recommend
b. Might not recommends
Babasabpatilfreepptmba.com
90
A study of investment decisions of individual investor with regard to ULIPs
BIBLIOGRAPHY
♦ WWW.iciciprulife.com
♦ WWW.google.com
♦ WWW.icicidirect.com
♦ Business magazines
♦ Product broachers.
Babasabpatilfreepptmba.com
91