Summer Internship Project

Factors effecting the Consumers Buying Behaviour for

Life Insurance

Prepared by Aditya More

Enrolment Number: A 03
MBA Batch 2020-22

Under the guidance of Dr Rita Dangre

ACADEMIC YEAR
2020-22

Submitted To
Shree Chanakya Education Society’s Indira Institute of
Management, Pune

Affiliated To
An Autonomous Institute affiliated to Savitribai Phule
Pune University

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Certificate of completion

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 Student’s Declaration

I undersigned Aditya Sanjay More student of Indira Institute of Management, Pune MBA
3rd semester, declare that summer internship project titled “Factors effecting the Consumers
Buying Behaviour for Life Insurance” is a result of my/our own work and my/our
indebtedness to other work publications, references, if any, have been duly acknowledged. If
I/we are found guilty of copying any other report or published information and showing as
my/our original work, I understand that I/we shall be liable and punishable by Institute or
University, which may include ‘Fail’ in examination, ‘Repeat study & re- submission of the
report’ or any other punishment that Institute or University may decide.

Name of Student: Aditya Sanjay More

Enrollment Number: Marketing A-03

Signature:

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 Acknowledgement

The project titled “Factors effecting the Consumers Buying Behaviour for Life
Insurance” which is part of the summer internship program of the MBA course has been
successfully completed. I take this opportunity to thank all the people involved directly or
indirectly in making this project a success.

Firstly, I would like to thank my external project guide Mr Shivshankar Bhind for giving me
an opportunity to showcase my skills and talent by contributing in favor of the organization. I
would also like to thank him for providing all the necessary facilities and support within the
organization during the internship tenure.

I would like to thank my internal project guide Prof. Dr Rita dangre of IIMP for his timely &
valuable guidance throughout the project. I am very thankful to the Director Dr. Pandit Mali
who has been guiding lighthouse for me. I am also thankful to Dr. Pallavi Sajanapwar, Dy.
Director, Indira Institute of Management Pune for approving my Project. Their constant
motivation accelerated my performance and helped me produce great results.

I would like to express my sincere gratitude towards all the components of Ecosense which
made the internship journey an unforgettable one.

Mr Aditya Sanjay More

Indira Institute of Management, Pune

MBA II – Marketing

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Sr. No Contents Page No
Executive Summary 7
1. Introduction and Rationale of the study 9
1.1 Introduction to the title 9
1.2 Significance of the study 10
2. Industry/Sector Profile 11
2.1 Overview of the industry/sector 11
2.2 Contribution of sector towards GDP 11
2.3 Major Players 13
2.4 Regulatory framework 14
3 Company Overview 15
3.1 History 15
3.2 Mission and Vision Statement of Company 15
3.3 Registered Address 16
3.4 Composition of Board 17
3.5 Major Customers 17
3.6 Financial Performance 18
3.7 Achievements 19
3.8 Organogram 20
3.9 Functional Overview 20
3.10 Products 20
4 Review of literature (research project) 23
5 Application of management framework (management models as 25
applicable)
5.1 SWOT Analysis 25
5.2 PESTEL Analysis 26
5.3 Five PORTER Forces Model 27
6 Objectives and scope of project 29
6.1 Objectives of the Project 29
6.2 Scope of the Project 29
7 Research Methodology 30
7.1 Rational for the study 30

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 7.2 Statement of problem 30
7.3 Significance of the Problem 30
7.4 Research Objectives 30
7.5 Scope of the study 30
7.6 Research design (Research Type) 30
7.7 Data sources (Primary and secondary sources) 31
7.8 Data Collection Instrument (for e.g. Questionnaire) 32
7.9 Sampling Design 32
7.10 Outline of Analysis 32
7.11 Limitations of the Project 32
8 Data Analysis 34
8.1 Data Analysis and Interpretation 34
9 Findings 39
10 Conclusions and Suggestions 40
11 Bibliography/References 41

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 Executive Summary

Title of the project and organization where project was undertaken

Factors effecting the Consumers Buying Behaviour for Life Insurance”

Importance of the project

Purpose of this project was to Factors effecting the Consumers Buying Behaviour for Life
Insurance. With the help of this project company will find and understand their customers
perception and their investment behavior towards insurance products. Ultimately, increase the
company value and position in market. The company will know customers better and what
they look for. They can provide services and products better. The growth of company and
performance will increase. The company will gain more prospects. This will be advantages
for them as compare to their competitors.

OBJECTIVES

• Proper understanding & analysis of life insurance industry.

• To conduct market surveys on a sample selected from the entire population and study
the consumers buying behavior.
• To generate Leads for the company.
• To know the awareness of various Insurance product of life insurance to people

Methodology adopted
Research methodology helps to know the research methods use in the context of our
research study and explain why we are using a particular method or technique. Mix
Research methodology used in this proposal at both the qualitative and quantitative
aspects. It focuses on the numerical data as well as the exploratory nature of the
mixed methodology. The qualitative data would help us in aspects such as individual
behavior, factors etc. Whereas the quantitative aspects like age, prices, etc. with the
numerical side of the research. The methodology that is followed includes primary
data collection. Primary data collection is including a simple questionnaire. This
questionnaire helps to reach various awareness products and services as a platform
for investment and customer preference regarding life insurance companies.

• Research Design: Descriptive research

• Sample size:155

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 • Research Approach: Both Qualitative and Quantitative research
• Sampling Technique: Convenience Sampling (due to covid-19 restriction)

Learning from the project

• The Importance of insurance in Individual life

• Networking and communication skills are important.
• Analyze the data from Google form in excel format and its interpretation.
• The pitching to customers about insurance products. Don’t get disheartened by
negative response of people. Have patience and

Utility to the organization

During my 2 months Summer Internship, I work on various aspects like, I have been
given training program in which mentor told the importance of Life insurance,
History, types, advantages, company products and services of company. The senior
executive of company teach us demo of pitching products. Our seniors who got PPO
were also in one session they guided me. I was divided into various teams about
progress of lead. I started pitching the products as per training. I got some lead for the
company.
I made Google forms based on buying and investment behavior of customers.
Collected data of customers on basis of Google form. And according to their nature.

Conclusion
• During the survey, it has been found that people have great awareness about various
companies but a lot more has to be done, especially by smaller companies like Kotak
Life Insurance and Shriram Life Insurance to establish their market presence.
• People are beginning to look beyond LIC for their insurance needs and are willing to
trust private players with their hard earned money.
• People in general have been influenced by the marketing activities of insurance
companies. A high penetration of print, radio and TV ad campaigns over the years is
beginning to have its impact now.
• Another important trend was in terms of people viewing insurance as a tax saving and
investment instrument as much as protective one.

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 CHAPTER I

INTRODUCTION AND RATIONALE OF THE STUDY

1.1 Introduction to the title: Factors effecting the Consumers Buying Behaviour for
Life Insurance

Key Objective behind this project was to find out Consumer Buying Behaviour of Customers
towards Insurance policies. Insurance is a means of protection individual and families from
any financial loss. It is basically risk management from any adversities or uncertain loss. An
entity which provides insurance is known as an Insurer, an insurance company, an insurance
carrier, or an underwriter. A person who buys insurance is known as an insured or as a
policyholder. In this study shows what the various factors are responsible for customer
behaviour like premium, good will of company, returns. Also, we can consider other factors
like age, emotional stability etc are responsible for customer behaviour. Do people aware of
various insurance plans of life insurance plans. People can consider insurance as a platform
for investment. Other Investment platforms like share market, mutual funds etc. do people
prefer this over Insurance. This study shows how investment perception and behaviour of
customers towards Life insurance policy.
Life insurance allows individuals to secure the financial future of their families in the event of
their own premature death. It also serves the savings and investment needs of individuals who
may be unaware of or wary about investing in mutual funds or the stock market. Unlike
countries in the developed world, social security or government pension schemes are
accessible to only a small part of the population in India. Most people use bank savings, fixed
deposits, post office savings and public provident fund (PPF) as instruments for savings and
investment. Due to the lack of access to formal financial markets and lack of information and
financial literacy, life insurance assumes a critical role in the financial wellbeing of a large part
of the society. It is especially important for rural and poorer sections of the society.

1.2 Significance of the study

This study shows the detailed analysis of Life Insurance perception means choosing,
purchasing and consumption of good and services offered by consumer. The factors
responsible for consumers behavior about various Insurance plans like premium, age , good
will of company etc. because of this company should improve their strategies.
Awareness plays important role for new customers and engage for existing customers. Consumer
buying behaviour responsible for companies’ success.

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1.3 Significance from Intern’s Perspective

I have got detail knowledge of process of the marketing activities in a company. The study
includes a detailed STP Model analysis starting from the collection of prospects database
given by the company along with observation of daily business activities. This helped me to
predict out the appropriate suggestions and also analyses the STP Model & Sales revenue. As
a summer trainee, I have gained better understanding of the accountabilities and the
undertakings of various departments of a company. It helped to understand splitting buyers
into groups with similar needs and wants to best utilize a firm's finite resources through
buyer-based marketing. The project assisted the practical application of STP Model of a
company and it also guided how to increase marketing efficiency by directing effort
specifically toward the designated segment in a manner consistent with that segment's
characteristics.

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 CHAPTER II
INDUSTRY/SECTOR PROFILE

2.1 OVERVIEW OF THE SECTOR

Insurance is an important part in the financial sector that contributes significantly to the
economy of a country. Insurance market contributes to the economic growth as a financial
intermediary and also helps in managing risk more effectively. This piece of research work
made an attempt to examine the relationship between insurance and economic growth in
India considering the state level data and contributing to the existing literature. The data is
collected for twenty-five states of India and covers the time period for 2000 to 2021.
Endogenous growth model with a modified Cobb-Douglass production function is used. This
result implies that the insurance policies which can improve the insurance penetration in
different states of India should be promoted. The relationship between physical capital and
economic growth indicates that more investments should be made on the policies of
infrastructure like health facilities, road etc. This research work could be useful for the state
Governments to improve the economic growth and also is useful for the development of the
insurance sector in India.

2.2 CONTRIBUTION OF THE SECTOR TOWARDS GDP

There are 24 life insurance and 34 non-life insurance companies in the Indian market who
compete on price and services to attract customers, whereas there are two reinsurance
companies. The industry has been spurred by product innovation and vibrant distribution
channels, coupled with targeted publicity and promotional campaigns by insurers. The market
share of private sector companies in the general and health insurance market increased from
47.97% in FY19 to 48.03% in FY20. In the life insurance segment, private players held a
market share of 33.78% in premium underwritten services in FY20.

In FY21 (until March 2021), premium from new business of life insurance companies in
India stood at US$ 31.9 billion.

In India, gross premiums written of non-life insurers reached US$ 26.52 billion in FY21
(between April 2020 and March 2021), from US$ 26.49 billion in FY20 (between April 2019
and March 2020), driven by strong growth from general insurance companies.

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In March 2021, health insurance companies in the non-life insurance sector increased by
41%, driven by rising demand for health insurance products amid COVID-19 surge.

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2.3 MAJOR PLAYERS

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2.4 REGULATORY FRAMEWORK
The Insurance Regulatory and Development Authority (IRDA)
The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a
strong and powerful supervisory and regulatory authority for insurance. Post nationalization,
the role of Controller of Insurance diminished considerably in significance since the
Government owned the insurance companies.
But the scenario changed with the private and foreign companies foraying in to the insurance
sector. This necessitated the need for a strong, independent and autonomous Insurance
Regulatory Authority was felt. As the enacting of legislation would have taken time, the then
Government constituted through a Government resolution an Interim Insurance Regulatory
Authority pending the enactment of a comprehensive legislation.
The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the
establishment of an Authority to protect the interests of holders of insurance policies, to
regulate, promote and ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the
Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization)
Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance
business) and General Insurance Corporation and its subsidiaries (for general insurance
business).
The act extends to the whole of India and will come into force on such date as the Central
Government may, by notification in the Official Gazette specify. Different dates may be
appointed for different provisions of this Act.

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 CHAPTER III
COMPANY OVERVIEW

3.1 HISTORY
Motilal Oswal Financial Services Ltd. (MOFSL) was founded in 1987 as a small sub-broking
unit, with just 2 people running the show. Focus on customer-first attitude, ethical and
transparent business practices, respect for professionalism, research based value investing and
implementation of cutting-edge technology have enabled us to blossom into an 8500+
member team.

Today we are a well-diversified financial services firm offering a range of financial products
and services such as Private Wealth Management, Retail Broking and Distribution,
Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity
Broking, Currency Broking, and Home Finance.

We have a diversified client base that includes retail customers (including High Net worth
Individuals), mutual funds, foreign institutional investors, financial institutions and corporate
clients. We are headquartered in Mumbai and as of June 2021, had a network spread over 550
cities and towns comprising 2500+ Business Locations operated by our Business Partners, us
and 31,00,000+ customers.

3.2 MISSION & VISION

• Invest All resources and energies in delivering high quality products and services
through Innovation, Capability Enhancement & people Initiatves,Based on the
foundation of our core Values

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 Vision

• To Achieve Excellence in all our Endeavors while Delivering superior value to

stakeholders& delighting Them.

3.3 REGISTERED ADDRESS

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite
Parel ST Depot, Prabhadevi, Mumbai – 400025

Local Address : Jai Ganesh Vision, B-Wing, 1st Floor, Off. No-154, Akurdi Pune-411035

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3.4 COMPOSITION OF BOARD

Key People

3.5 Major customers

Motilal oswal has been focused on serving the protection needs of the rural segment and
lower income segments. These segments are most affected by the crisis due to the dual
impact of the health emergency and loss of income. Growth of 8 per cent in the number of
policies sold underlines this commitment.

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3.6 Financial performance

YoY
Parameter MAR 21 MAR 20
%Change
Net Sales 36256 23575.5 53.79
Total 16086.5 15460.4 4.05
Expenditure
PBIDT (Excl 20169.5 8115.1 148.54
OI)
Other Income 54.4 78.6 -30.79
Operating 20223.9 8193.7 146.82
Profit
Interest 4302.8 4944.7 -12.98
Exceptional -881 NA NA
Items
PBDT 15040.1 3249 362.91
Depreciation 472.7 397.1 19.04
Profit Before 14567.4 2851.9 410.8
Tax
Tax 2590.5 697.9 271.18
Provisions NA NA NA
and
contingencies
Profit After 11976.9 2154 456.03
Tax
Extraordinary NA NA NA
Items
Prior Period NA NA NA
Expenses
Other NA NA NA
Adjustments
Net Profit 11976.9 2154 456.03
Minority -140.1 -62.1 -125.6
Interest
Shares of 617.7 -258.2 339.23
Associates
Other related NA NA NA
items
Misc. NA NA NA
Expenses
Written off
Consolidated 12454.5 1833.7 579.2
Net Profit

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 Equity 146.6 148.1 -1.01
Capital
Face Value 1 1 0
(IN RS)
Reserves 44175 30714.9 43.82
Calculated 84.96 12.38 586.15
EPS
Calculated 84.96 12.38 586.15
EPS
(Annualised)
No of Public 43015315 44770638 -3.92
Share
Holdings
% of Public 29.34 30.24 -2.98
Share
Holdings
NA NA NA NA
PBIDTM% 55.63 34.42 61.62
(Excl OI)
PBIDTM% 55.78 34.76 60.5
PBDTM% 41.48 13.78 201.01
PBTM% 40.18 12.1 232.15
PATM% 33.03 9.14 261.56

3.7 Achievements
For his work and contribution to the capital markets, Oswal has received several awards
including:

• Mr. Motilal Oswal, Chairman & MD is awarded as Outstanding Institution Builder of

the year in The AIMA Managing India Awards]
• Special Contribution award to Indian Capital Markets’ Award by Zee Business
• The Hall of Fame for Excellence in Franchising’ by Franchising World Magazine
• Champion of Arthshastra’ by the Rotary Club
• Oswal has received the Rashtriya Samman Patra[6] awarded by the Government of
India for being amongst the highest income taxpayers in the country for a period of 5
years from FY95–FY99.
• Oswal is associated with various social organizations. He is the President of the Jain
International Trade Organization (JITO) and a Trustee of "Agarwal-Oswal
Chhatravas" of the Rajasthan Vidyarthi Griha; among others.
• He has authored two books of quotations on The Essence of Business &
Management and The Essence of Life.

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3.8 Organogram
Board Of Directors

Chairman

Chairman

Relationship Manager

Intern

3.9 Functional overview

Motilal Oswal Financial Services Ltd (MOFSL) was set up by Motilal Oswal and Raamdeo
Agrawal as a broking house in 1987.
The company entered into investment banking in 2005, followed by private equity fund in
2006.On February 2006, Motilal Oswal Financial Services Ltd. acquired Peninsular Capital
Markets, a Cochin, Kerala based Broking Company for Rs. 35 crore. The company tied up
with State Bank of India in 2006,Punjab National Bank in 2007 [and Axis Bank in 2013[8] to
offer online trading to its customers On January 2010, Motilal Oswal Financial Services Ltd.
set up Mutual fund business named as Motilal Oswal Asset Management Company
(MOAMC).
On 2013, Motilal Oswal Financial Services Ltd. laid foundation of Aspire Home Finance
Corporation Limited (AHFCL). The company offers loans for home, construction, composite,
improvement, and extension in India.

3.10 Products
Motilal Oswal Securities Ltd
Motilal Oswal Securities Ltd (MOSL) is a part of Motilal Oswal Group, a diversified
financial service provider in India offering services including broking, loans, investment
banking, wealth management, life and general insurance, fixed income, IPOs, Mutual fund,
Bonds, NCDs etc. The group is spread wide and big with 2200 locations in 500 cities and 9 lk
customers.

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Motilal Oswal Securities Ltd (MOSL) is a full service broker offering equity, derivatives,
commodity and currency trading across BSE, NSE, NCDEX, MCX and MSEI. Motilal
Oswal Securities Ltd is also a distributor of Mutual Fund, PMS & IPOs.
PMS & Mutual Funds are offered through Motilal Oswal Asset Management Company
Ltd (MOAMC) which is group company of MOSL.
Commodity services are offered through Motilal Oswal Commodities Broker Pvt.
Ltd member of MCX, NCDEX.
Motilal Oswal Equity Trading
Motilal Oswal is registered member of NSE and BSE, you can trade in Equity Cash and
Equity Derivatives with MO using online or offline (branch / sub brokers) network. Motilal
Oswal equity research team is there for you to give daily research report, weekly research
report, latest market updates and news and intraday stock tips.
Motilal Oswal Commodity Services
Motilal Oswal provides commodity trading services through Motilal Oswal Commodities
Broker Pvt. Ltd, an associate company which is trading member of MCX and NCDEX. You
can trade across Bullion, Metals, Energy, Agro and other commodities and also get a leverage
tool called Value Plus for intraday traders to get exposure of upto 3-4 times of available
funds. You also have access to latest happenings from the commodity markets across MCX
& NCDEX with commodity news, advice, research and latest prices.
Motilal Oswal depository services(DP services)
Motilal Oswal is a depository participant (DP) of NSDL and CDSL. They offers 2-in-1
account which include an online trading account and a demat account for secure and hassle
free trading.
Motilal Oswal Customer Service
Motilal Oswal offer online application (Will complete in 15 min), 100 % paperless trading
and demat account opening process, dedicated customer service team with a 6 hour query
resolution TAT, huge network of sub brokers and branches, dedicated Relationship Managers
and advisory team at every branch for personal touch-base.
Motilal Oswal gives you opportunity to become Business Partners with them in either of
these ways- Franchisee, Remisier, employee or channel partner.

• Motilal Oswal Customer Care Number/Customer Support No : 91-22-39982515 /

67490600
• Motilal Oswal Support Email - query@motilaloswal.com
• Motilal Oswal Call and Trade Number : 91-22-39982600

Motilal Oswal Robust Business Portal

With Motilal Oswal’s business development portal - UpperMOST, you can monitor your
business progress as well as client’s holdings on a real-time basis.
Motilal Oswal Portfolio Management Services(PMS)
Motilal Oswal Asset Management Company Ltd (MOAMC) being India 's leading PMS
service providers, offers professional management of your investments with benefits like
regular reviews, strong risk management flexibility makes it an ideal investment avenue for
high net worth investors. It gives you Flexibility to switch from one strategy to other and
additional purchase facility & partial withdrawal facility. They offer three products namely:

• Value Strategy

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 • Next Trillion Dollar Opportunity
• India Opportunities Portfolio Strategy

You get Dedicated Relationship Managers for your account and centralized team of service
coordinators for hassle-free servicing and local servicing from large network of branches
across India. Remember your minimum investment is 25 lk.
Motilal Oswal Research Services
Motilal Oswal is one the best market analyst in the industry with a dedicated large cap, mid
cap & technical research teams for in-depth daily reports on equity, currency and commodity
market, weekly, monthly and yearly company reports, sector reports, thematic reports, market
analysis reports.
Motilal Oswal Advisory Services
Motilal Oswal provides advisory services across various asset classes on all of their platforms
for Mobile, Tablet, Desktop and web. Tailor made customized actionable plans, advanced
tools & strategies are available across investment styles & risk profiles. They have
specialized desk of 105+ advisors to help you reactivate inactive clients and increase your
revenue multifold.
Motilal Oswal Mutual Fund Services
Mutual Fund Services with Motilal Oswal comes with Invest wisely with us in Lump sum,
Systematic Investment Plans (SIPs), Systematic Transfer Plan (STPs), Systematic
Withdrawal Plan (SWPs) and New fund offers (NFO 's) across all the asset class - Equity,
Debt, Balanced, Tax Saving funds. You can invest in 9,000+ schemes across 40 AMCs.
Margin facility giving you an option to leverage your mutual fund units.
Motilal Oswal has its own Asset Management company (AMC) - "Motilal Oswal Asset
Management Company Limited", is ingaged in Asset Management.
Motilal Oswal IPO Investment Services
Motilal Oswal provides investment in IPOs online and offline both through ASBA process.
They also provide IPO recommendations by their advisory team. You need a single login
across devices Desktop, Mobile or Web.
Motilal Oswal commonly misspelled as "Motiwal Oswal","mosl","MotilalOswal","moti
lal","moti lal Oswal","moti Oswal","Motilal","Motilal Oswal"

Motilal Oswal Branches

www.motilaloswal.com is an online investment website of Motilal Oswal Ltd. Motilal Oswal
offers most of its customer services through its website only.
They also offer customer service though branches which are located around the country in
almost all major cities in India.
Customer could visit any local Motilal Oswal branch and ask for help related to Motilal
Oswal Trading & Demat account, Motilal Oswal Commodity account. If the branch
doesn’t exist in your city, still you can open account with Motilal Oswal and start your
investment via online trading platform and call n trade service.
Motilal Oswal Branch Locator / Sub Broker
Motilal Oswal website provide the branch locator under customer service section. This
locator can be used to locate the branch nearby you.

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 CHAPTER IV-

LITERATURE REVIEW

LITERATURE REVIEW

Life insurance is a form of insurance that pays monetary proceeds upon the death of the
insured covered in the policy. Essentially, a life insurance policy is a contract between the
named insured and the insurance company wherein the insurance company agrees to pay an
agreed upon sum of money to the insured's named beneficiary so long as the insured's
premiums are current. With a large population and the untapped market area of this
population insurance happens to be a very big opportunity in India. Today it stands as a
business growing at the rate of 15-20% annually. Nearly 80% of Indian populations are
without life insurance cover and the health insurance. This is an indicator that growth
potential for the insurance sector is immense in India. Insurance is the business of providing
protection against financial aspects of risk, such as those to property, life health and legal
liability. It is one method of a greater concept known as risk management –which is the need
to manage uncertainty on account of exposure to loss, injury, disadvantage or destruction.
The business of insurance is related to the protection of the economic values of assets. Every
asset has a value. The asset would have been created through the efforts of the owner. The
asset is valuable to the owner, because he expects to get some benefit from it. The benefit
may be an income or in some other form.

Dr. Praveen Sahu, Gaurav Jaiswal and Vijay Kumar Pandey on topic A STUDY OF
BUYING BEHAVIOUR OF CONSUMERS TOWARDS LIFE INSURANCE
POLICIES (2009)

In Indian market, continues changing investment habits of Indians according to their

individual factors. The study shows Investment perception and consumer’s behaviour
towards Life Insurance Services. The consumer’s perception towards Life Insurance Policies
is optimistic. In insurance policies developed a positive mind sets for their investment
pattern, some changes are required in plans according to the current need. Many major
factors playing the role in developing consumer’s perception towards Life Insurance
Policies are consumer Loyalty, service Quality, Ease of Procedures, satisfaction Level,
company Image, and company-Client Relationship. Insurance industry is continuously
growing. Still opportunities are waiting. This research will help in developing the market
share, loyalty and further development in insurance sector.

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Vijay Victor 1, Jose Joy Thoppan , Robert Jeyakumar Nathan and Fekete Farkas
Maria on topic Factors Influencing Consumer Behavior and Prospective Purchase
Decisions in a Dynamic Pricing Environment—An Exploratory Factor Analysis
Approach (2018)

This study has identified, measured and classified various online dynamic pricing
environment. This measures into seven factors which could influence consumer behavior
and prospective purchase decisions in a dynamic pricing situation. The results of the
exploratory factor analysis identified shopping experience, awareness about dynamic
pricing, privacy concerns, buying strategy, fair price perceptions, reprisal intentions and
self-protection intentions as factors which could have a significant influence on consumer
behavior and their prospective purchase decisions. This study, in agreement with previous
studies, points out that dynamic pricing decisions must be made carefully by figuring out
their impact on consumer reactions.

Lim Phui Guan , Dayang Hasliza Muhd Yusuf , and Mohd Rosli Abdul Ghani on
Factors Influencing Customer Purchase Intention Towards Insurance Products 2020

The study finds that external state of marketing mix employed by life insurance marketers
have a positive influence on purchase decision. The factor that influences most of customer
intend to purchase insurance is price of the insurance, product features, promotion, and the
distribution channel. Customers are willing to purchase insurance with lower price as long
as the insurance can provide some coverage for them. The 4 Ps of marketing mix are also
responsible for their buying decision. Thus, company should be aware of the importance of
customers’ attitude in influencing buying decisions and therefore aims towards marketing
activity that can influence customers’ attitude. Future studies looking into these additional
factors would be beneficial to add more literature and empirical data about how marketing
mix affect life insurance purchase intention in Malaysia.

Ms. Anitha and D. Phani Bhargavi on topic Investors’ Perception Towards Investment
(2014)

In this study, different demographic variables are considered on decision making behaviour.
It is a risky situation. The direct effects of these demographic factors on risk perception and
propensity ultimately on risky decision making have been established in this study. This
study covers that old age investors have more risk perception and younger. Gender effects
the decision in a manner that females have less risk preferences than males and thus affects
the risky decision-making behaviour negatively and are reluctant to take risky decision.

J.Pavithra , Rajan singh on topic A STUDY ON CUSTOMER’S PERCEPTION

TOWARDS FINANCIAL PRODUCT IN I SEC, CHENNAI (2018)

In this project this study shows that the awareness level are high with the present youngsters
and the middle-aged group which can be observed as a positive sign for the growth of the
industry. The effectiveness of the other supporting instrument like client relationship can be
further improved so that the impact will be high.

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 CHAPTER V
APPLICATION OF MARKETING MODELS

5.1 SWOT ANALYSIS

A SWOT analysis is an incredibly simple, yet powerful tool to help you develop your
business strategy, whether you’re building a startup or guiding an existing company. SWOT
stands for Strengths, Weaknesses, Opportunities, and Threats.
Strengths and weaknesses are internal factors of company where you have some control over
and can change. Examples include who is on your team, your patents and intellectual
property, and your location.
Opportunities and threats are external factors that are going on outside your company, in the
larger market. You can take advantage of opportunities and protect against threats, but you
can’t change them. Examples include competitors, prices of raw materials, and customer
shopping trends

SWOT ANALYSIS OF MOTILAL OSWAL

Strengths

• Large and diverse distribution network

• Strong research and sales teams
• Brand recognition  Experienced top management
• Strong financial results Weaknesses
• Charges are high compare to other companies in industry

Weaknesses

• Charges are high compare to other companies in industry

Opportunities

• Growing Financial Services industry's share of wallet for disposable income

• Huge market opportunity for wealth management service providers as Indian wealth
management business is transforming from mere wealth safeguarding to growing
wealth.
• Regulatory reforms would aid greater participation by all class of investors
• Leveraging technology to enable best practices and processes
• Increased appetite (need) of Indian corporate for growth capital

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Threats

• Execution risk
• Slowdown in global liquidity flows
• Increased intensity of competition from local and global players
• Unfavorable economic conditions

5.2 PESTLE ANALYSIS OF MOTILAL OSWAL FINANCIAL LTD.

PESTLE analysis is one the significant and widely used tool or framework mostly by
organizations with the intent of considering the market environment before commencing the
process of marketing. In fact, the analysis of the environment needs to feed all planning
aspects as well as it should be continuous. The internal environment of an organization
includes internal customers or staff, wages, office technology and finance etc. whereas the
micro environment includes the external customers of an organization, distributors or agents,
competitors and suppliers. Additionally, the macro environment includes legal and political
factors, sociocultural forces, economic forces and technological factors.

The factors or forces are discussed below;

Political forces:
These are the Motilal Oswal Financial Services Ltd In India forces that tends to be altered by
the influence of government on the infrastructure of country. The political factors may
involves environment regulations, employment laws, tariffs, tax policy, trade restrictions,
political stability and reforms. It is noteworthy, that the charities needs to be included where a
government are not willing services and goods to be provided.

Economic factors:
The Motilal Oswal Financial Services Ltd In India economic factors or forces involves
interest rates, inflation, and growth of economy, cost of living, working hours, wage rate and
exchange rates. Combining these factors, it last greater and inevitable impact on organization.

Social factors:
The culture or social influence on certain businesses vary from country to country. It is
significant to consider these factors. The social factors includes safety and health
consciousness, various demographics, population growth rates and cultural aspects.

Technological factors:
Notably, Motilal Oswal Financial Services Ltd In India technology is one of the most
important way of being competitive in the highly competitive market arena. Not only this, it
drives globalization, the factors includes environmental and ecological aspects, and available
services as well as products. An organization should innovate and be compatible with the
technologies.

Legal factors:
The Motilal Oswal Financial Services Ltd In India legal factors involves the certain laws and
regulations which might effect on the business operations of an organization. It also includes

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impending and current legislation that tends to impact on the industry in areas including
competition, employment, safety and health. An organization should consider the influence of
the national and international laws where the organization would originate the business
operations.

Environmental factors:
The environmental factors include all those factor lasting impact or influence, the
surrounding environment most likely determine environmental factors. The factors involves
awareness of the seasonal or climate change or terrain variation. The analysis of the
environment including internal and external elements is vital for organization since it impacts
on the performance of an organization.

5.3 PORTER FIVE FORCES MODEL OF MOTILAL OSWAL FINANCIAL LTD

• Competitive rivalry -The competition among the firms help in identifying the
lucrativeness of an industry where companies are competing hard in order to maintain
their power within the industry. The Motilal Oswal Financial Services Ltd in India
competition is moreover on basis of diversity, the development within the sector and
the barriers related to entrance in the market. The competitive rivalry is the analysis of
the brands and the product, its strengths and weakness along with the strategies,
competitors and the share in the market.

• Threats of new entrants- The market has a high danger of new entrants since it does
not require high financial investment in innovation to get in the market. With no
economies of scale being seen in the industry due to the absence of larger gamers, the
industry uses very low barriers to entry.

• Threat of substitutes: The hazards of replacement might be low offered the fact that
automobile washing does not particularly have substitutes. While the principle may
have different kinds of automobile Porters Analysis of Motilal Oswal Financial
Services Ltd in India such as self-service automobile washes and automated cars and
truck Porters Analysis of Motilal Oswal Financial Services Ltd in India, but the
general concept of car wash does not have substitutes.

• Bargaining power of suppliers: Powerful suppliers possess more power to capture

significant value for themselves by demanding high prices while limiting the quality
and the quantity of the product or services or by transferring the cost on the
participant of the industry. Many condition imposed by the suppliers generally include
the increase in price while compromising the quality and quantity

A bargaining power of a supplier in the market is strong if:

• It is more concentrated than the industry it is selling to.
• It is not heavily relying on the industry for its profits

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 • The product being offered by the suppliers are highly differentiated.
• And when there is no close substitute available for the products being supplied by the
suppliers.

• Bargaining power of customers The buyers having strong bargaining power can
highly influence the profitability of the suppliers operating in the market by imposing
condition that are not much favorable for the suppliers in terms of price, quality or
service. Therefore choosing clients often become crucial for the organizations as to
avoid the situation of being highly depended on the buyers. The level of interest and
concentration of buyers toward the product gives them more or less power.

The customer are assumed to have strong buying power in case:

• If the number of buyer are limited or each of the buyer purchases large quantity
relative to the size of the suppliers.
• The products in the industry are standardized or are undifferentiated.
• The cost of switching is comparatively low.

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 CHAPTER VI

Objectives and Scope of the Project

6.1 OBJECTIVES

• Proper understanding & analysis of life insurance industry.

• To conduct market surveys on a sample selected from the entire population and study
the consumers buying behavior.
• To generate Leads for the company.
• To know the awarness of various Insurance product of life insurance to people

6.2 SCOPE

• As large insurance market is still untapped so based on the survey the potential of the
Indian market can be evaluated.
• New distribution channel and marketing strategies can be evaluated based on the
awareness among the masses regarding Life Insurance.
• Life advisor license to be used part time basis to generate revenue for the company &
income for self

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 CHAPTER VII:

METHODOLOGY FOLLOWED FOR THE PROJECT

Overview

Research always starts with a question or a problem. Its purpose is to question through the
application of the scientific method. It is a systematic and intensive study directed towards a
more complete knowledge of the subject studied. Marketing research is the function which
links the consumer, customer and public to the marketer through information used to identify
and define marketing opportunities and problems generate, refine, and evaluate marketing
actions, monitor marketing actions, monitor marketing performance and improve
understanding of market as a process. The data for this research project has been collected
through self-admiration. A structured questionnaire was framed as it is less time consuming,
generates specific and to the point information, easier to tabulate and interpret.

7.1 Rational for the study

The project aim was to study CONSUMERS Buying Behaviour For Life Insurance.
. Which other insurance platforms they prefer and why. What are factors like ROI, premiums
responsible for customer behaviour towards life insurance policy. To get maximum
information about it.

•7.2 Statement of problem

People generally prefer other investment tools rather than insurance policy. People behaviour
over insurance policy and factors responsible for that which will ultimately help company to
grow.

7.3 Significance of the Problem

As for any company people are asset of company. Customer Investment perception plays vital
role in any company. With the help of this study company understands customer’s perspective
and reduce the gap between them.

7.4 Research Objectives

• Proper understanding & analysis of life insurance industry.
• To conduct market surveys on a sample selected from the entire population and study
the consumers buying behavior.
• To generate Leads for the company.

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 • To know the reach of various Insurance product of life insurance to people

7.5 Scope of the study

• Factors responsible for consumer behaviour towards life Insurance like pricing,
returns, goodwill of company, duration of policy etc. Other factors includes the
emotional, age so considering this thing in mind company can develop their strategies
to influence their customers.
• Awareness regarding insurance product to people to secure their life and family from
financial loss or any adversities.
• Can Insurance as a platform for investments are people willing to pay as insurance is
best secure plan rather than other investment platforms. Because Insurance secure life
more appropriately than any other investment like stock market etc. It gives full
coverage life to you and your family.

Research design (Research Type)

Descriptive research is defined as a research method that describes the characteristics of the
population or phenomenon studied. This methodology focuses more on the “what” of the
research subject than the “why” of the research subject. When a study is designed primarily to
describe what is going on or what exists. Public opinion polls that seek only to describe the
proportion of people who hold various opinions are primarily descriptive in nature.

Data sources (Primary and secondary sources)

Primary data:
The primary data was collected by asking the respondents. For data collection, we have taken
convenience sampling. I have prepared the questionnaire among our peers to study Investment
perception and Behaviour of Customers towards Insurance policies of Life Insurance. Data
collection can be done through surveys to understand the typical characteristics or opinions of
people regarding insurance policies and factors responsible for their investment in insurance
plans. A questionnaire to a sample selected through convenience through online google form.
The questionnaire is completely anonymous so that people can answer the questions without
any form of guilt or sense of judgement.

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Secondary data:

Secondary data are the information which is attained indirectly. They are the data collected by
someone else and which has already passed through statistical process. For the literature
review of I have referred the data some related article to the topic.

• Data Collection Instrument (for e.g., Questionnaire)

Questionnaire through Google forms
It includes basic question from their Name, Age, Gender, to investment perception and factors
through google forms. By doing these clear responses can be calculated and understands better.

• Sampling Design
Since it is not possible to study whole population, it is necessary to obtain representative
samples from the population to understand its characteristics.

Sampling Area: Maharashtra

Sampling Unit- an individual person
Sampling Method- Convenience Sampling (due to covid-19 restriction)
Sample size: 120 respondents through different parts of Maharashtra
Research instrument: Structured Questionnaire
Contact method: Online Google Form

• Outline of analysis (a brief outline of tools and techniques to be used for analysis, statistical
tools and tests to be used)
Microsoft Excel sheet was maintained as the number of responses occur the proper information
about people in excel sheet. With help of Microsoft excel features like insert, create, edit, copy,
paste Pie chart, and Bar graph were used for data analysis.

• Limitations of the Project

Some of the difficulties and limitations faced during my training are as follows:

• Lack of awareness among the people – This is the biggest limitation found in this
sector. Most of the people are not aware about the importance and the necessity of the
insurance in their life.
• Perception of the people towards Insurance sector – People still consider insurance
just as a Tax saving device. So today also there is always a rush to buy an Insurance
Policy only at the end of the financial year.

• Increased competition – Today the competition in the Insurance sector has became
very stiff. Currently there are more than 20 Life Insurance companies working in
India. Today each and every company is trying to increase their Insurance Advisors so
that they can increase their reach in the market. This situation has created 25 a

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 scenario in which to recruit Life insurance Advisors and to sell life Insurance Policy
has become very difficult.
• Lack of knowledge: As a student, I had no past practical experience of data
collection, data processing, data analyzing, integrating, and presenting. So, it was a
limiting factor for obtain accurate information.
• Less Sample size: Sample size was very less so the findings from its observations are
not that accurate to make it as valid conclusions.
• More Challenge due to work from home type: As compared to on field internship,
work from home internship was more challenging as there was no personal interaction
with organization members and also with the prospects and customers.
• Shortage of time: Since the summer internship project was of very less time, less
areas were explored as compared to the internship of more time. New roles, new type
of work could be studied if the time would have permitted.

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 CHAPTER VIII
DATA ANALYSIS

Figure 1 shows that the Indian market has lot of potential for the life
insurance industry as more than 40% are still not insured.

Figure 2 clearly explains that LIC is still the most recalled brand in the
mind of the Indian consumers followed by Bajaj Allianz and HDFC.

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Figure 3 shows that people are willing to buy policies for 10-20 years. This is
due to the fact that many wants insurance to be a investment tool.

Figure 4 makes it clear that people prefer insurance as a comprehensive

investment, risk coverage and for Tax saving Purpose.

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Figure 5 says that people wants larger risk coverage as well as they prefer
money back guarantee.

Figure 6 makes it clear that Online Platform are the main source for
company to bring business.

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Figure 7 states the percentage of policy holder’s satisfaction level to their
company. Many are satisfied because of service after sales or during claims.

Figure 8 states that majority of people consider 25-35 their age while buying
an insurance policy. These shows that people plan their policies they just
buy at a suitable preferred age.

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Figure 8 states that majority of people buy Life Insurance policies as a
Investment and Saving purpose.

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 CHAPTER IX:

FINDINGS

• Based on the survey, it was found that more than 40% of the people still are not
insured.
• LIC tops the list when it comes to brand recall.
• Most of the people prefer policies for short term i.e for 10-20 years only.
• Many people believe that policies helps to save tax but majority of the policyholders
perceive it as a tool to avoid uncertainty in the future.
• More than 50% had bought the policies from Online Platform rather than approaching
directly to the agents.
• Although there are plans for different age groups of the society but majority of people
prefer buying insurance at the age of 25-35.
• Insurance also gives advantage to grow your money at a rate greater than FD’s and
other securities so people prefer investing in money back policies.
• Last but not the least is that the level of satisfaction is quite good among the
policyholders

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 CHAPTER X

Conclusion & Suggestions

10.1 Conclusion
• During the survey, it has been found that people have great awareness about various
companies but a lot more has to be done, especially by smaller companies like Kotak
Life Insurance and Shriram Life Insurance to establish their market presence.
• People are beginning to look beyond LIC for their insurance needs and are willing to
trust private players with their hard earned money.
• People in general have been influenced by the marketing activities of insurance
companies. A high penetration of print, radio and TV ad campaigns over the years is
beginning to have its impact now.
• Another important trend was in terms of people viewing insurance as a tax saving and
investment instrument as much as protective one.

10.2 Suggestions

• As LIC is still the most recalled brand among the masses so more advertisement needs
to be done via television, radio, hoardings, CSR activites, promotional events etc.
• More than 40% of the market is untapped so networking via life advisors, corporate
firms, other agencies should be done to tap the untapped market.
• Group insurance should be provided to schools. colleges. societies & different
organizations .
• As majority of the population lives in rural areas so they should be targeted simple
and affordable plans for them.
• Online platform (Web Sales) are the one which brings majority of the business for the
company. So more and more online channel teams should be recruited and paid good
commission for their work .
• In today’s corporate world customer satisfaction is the key element to earn profit and
run the business. So the best service should be given before and after the
commencement of the policy.
• Better service quality should include-issuing policy on time, providing claims on
time, proper communication via mail or courier on timely basis to aware customer
about the policy status.

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 ANNEXURE

Respondent’s Profile (Optional):

NAME:

AGE:

GENDER:

Q1)Do you have any life insurance policy?

A) Yes

B) No

Q2) Which company you will prefer to purchase the Life Insurance products?

a. LIC
b. ICICI Prudential Life Insurance
c. HDFC Standard Life Insurance
d. Bajaj Allianz Life Insurance
e. TATA AIG Life Insurance
f. Reliance Life Insurance
g. Others________________

Q3) If Yes, What is the Maturity of your insurance policy?

a. < 5 years
a. 5 – 10 years
b. 10 – 20 years
c. Others_____________
d.

Q4) What do you think are the benefits of Life Insurance? *

b. Covers future uncertainty
c. Tax Savings
d. Investments
e. Comprehensive investment and risk coverage instrument
f. All of the above

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Q5) Which feature of Life Insurance policy will you consider while buying? *
a) Money Back Guarantee
b) Larger Risk Coverage
c) Low Premium
d) Company’s Credibility
e) Easy Access to Agents
g) All of the above

Q6) How would you prefer to buy a Life Insurance policy?

a) Customer approaching insurance company / agent

b) Insurance company / agent approaching the customer
c) Online
d) Offline

Q7) why would you choose above platform to buy the policy?

Ans_________________________

Q8) After purchasing the policy

• Are you satisfied with your Life Insurance policy

a) Strongly disagree
b) Disagree
c) Neutral
d) Agree
e) Strongly agree

• Insurance company have extra benefits

a) Strongly disagree
b) Disagree
c) Neutral
d) Agree
e) Strongly agree

• Insurance as a platform for investment

a) Strongly disagree
b) Disagree
c) Neutral

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 d) Agree
e) Strongly agree

Q9) According to you, what is the right age to buy insurance? *

a) < 25 years
b) 25 – 35 years
c) 35- 45 years
d) 45 years

Q10) According to you, which plans you choose to buy? *

a) Investment
b) Retirement
c) Savings
d) Others

Q11) Suggestions (If any)

_______________________________________________

BIBLIOGRAPHY

• https://www.irdai.gov.in/
• www.google.com
• www.lifeinsuranceindia.com
• www.scribd.com
• Life Insurance Brochures
• Research Methodology

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 THANK YOU

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