A REPORT ON

“A STUDY ON FACTORS AFFECTING

CUSTOMERS DECISION MAKING
TOWARDS
INVESTING IN
INSURANCE POLICIES”

By
Pooja Suresh
21BSP3460

Agile Capital Services Pvt. Ltd.

 REPORT ON

“A STUDY ON FACTORS AFFECTING

CUSTOMERS DECISION MAKING
TOWARDS
INVESTING IN
INSURANCE POLICIES”

By
Pooja Suresh
21BSP3460

Agile Capital Services Pvt. Ltd.

A report submitted in partial fulfilment of the requirements of

PGPM Program of IBS Mumbai

Faculty Guide : Company Guide:

Prof. Chitvan Mehrotra Mr. Chinmay Tiwari

Date of Submission : 7th April, 2022

 Table of Contents

ABSTRACT..........................................................................................................................................1
INTRODUCTION TO NON-BANKING FINANCIAL COMPANIES................................................2
INTRODUCTION TO AGILE CAPITAL SERVICES PVT. LTD.......................................................3
SWOT ANALYSIS OF BANKING FINANCIAL SERVICE & INSURANCE...................................5
COMPETITIVE ANALYSIS................................................................................................................6
INTRODUCTION TO INSURANCE...................................................................................................7
INTRODUCTION TO LIFE INSURANCE........................................................................................11
WORK UNDERTAKEN.....................................................................................................................13
LIMITATIONS...................................................................................................................................16
 ABSTRACT

My internship training at ACS, Delhi was part of my PGPM curriculum. In this report, I will
describe my 47-days experience working for the organization. I was required to grasp the
concept of Financial Sectors and manage to sell the product. On the very first week a brief
introduction about the company and how it works was given by the company guide and HR,
providing with the road map of the future process of SIP. Discussed about the project title,
report plan, spoke about BFSI sector, made us understand how to make proposal, IIR and
also I got to learn a new tool called VRIO. We were introduced to some basic terminologies
that were necessary for working in the SIP, such as, Proposer, Rider, Life Assurance (LA),
Nominee etc. One the 2nd week we learnt about generating Pay slip, Taxation, Financial
sectors available in India, Insurance awareness and Further sessions were taken by Director
explaining about the corporate world that is how it works, and what all are the necessary
minimum requirements to work in it. Then we were taught about investment banking and its
aspects and how the firm will operate from the investment banking perspective.

We were asked to do some research on several topics such as:

 Types of investor
 Types of consulting and consulting firms
 Credit rating agencies how they work
 IB process

Our company guide showed us a sample of all the documents and taught us when where and
how to use these documents. In the end of first week, we were asked to make a presentation
on financial sectors and present it to company guide. In the initial days of the second week,
we were briefed about several investment banking projects in various sectors. These projects
fall under either category of New Business Development or Existing deal completion. After
the projects were briefed, we were asked to choose projects on the basis of our capability,
matter of priority, interest and keeping in mind many more factors. The pitch was made
through Cold Calling process and follow ups were taken. The scope of my work comprises of
tasks like, Cold calling, Analysis clients requirements, Data collection, Presentation,
Documentations and Finalizing the deal.

1
 INTRODUCTION TO NON-BANKING FINANCIAL COMPANIES

Definition of NBFCs : “NBFCs are Companies that are registered under The Companies
Act, 1956 of India. NBFCs are engaged in business of Loans and Advances, Acquisition of
shares, bonds, hire purchase Insurance Business or chit-fund Business but does not include
principal business includes agriculture, industrial activity or the sale, purchase or
construction of immovable property.”

Non-Banking Financial Companies (NBFCs) play a vital role in expanding access to financial
services, increasing competition, and diversifying the financial industry. Financial services
are provided by a variety of entities in India. Commercial banks, financial institutions (FIs),
and non-banking finance companies are among them (NBFCs). NBFCs have evolved as a
vital element of the Indian financial system as a result of financial sector reforms. Non-
banking financial organisations commonly provide loans and credit facilities, collect deposits,
manage mutual funds, and perform other similar tasks. They compete with banks and
financial institutions and add value to them. In 1995-96, numerous initiatives were done to
decrease banking system restrictions and remove operational limits. Interest rate deregulation,
liberalisation and selective abolition of the Cash Reserve Ratio (CRR) requirement, and
improved refinancing capabilities against government and other recognised securities are
among them.

In recent years, NBFCs have experienced tremendous expansion in terms of both the number
and amount of commercial transactions. Companies that finance productive assets use
equipment leasing and hire purchase finance. The role of NBFCs in consumer durables and
vehicle loans is aggressive. The rapid rise of NBFCs' business necessitated robust regulatory
action to protect investors' interests. The Reserve Bank has begun to regulate the activities of
NBFCs with the dual goals of ensuring that they properly serve the financial system and do
not compromise depositors' interests.

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 INTRODUCTION TO AGILE CAPITAL SERVICES PVT. LTD.

About The Company

ACS is your one-stop shop for all of your financial requirements. Our goal is to provide the
greatest solution for consumers to direct their finances in the most beneficial way possible.
Financial planning is a dynamic process, and financial goals can alter over time as people's
lifestyles change. ACS is a privately held financial services organisation dedicated to
assisting you in achieving long-term financial success. We offer specialised advising services
to affluent clientele that require investment management. Our aim is to provide excellent
returns to our clients by leveraging our relationships with Indian government-owned banks.

Agile Capital Services is the choice of many reputed Multinational Organizations and
businesses because of its commitment to deliver best results. ACS pride itself with the
reputation of being the trusted and reliable talent acquisition partner as well as providing
expert guidance towards achieving financial independence to its clients. We have specialists
who provide financial and investment consulting services to individuals so that they can
safeguard their financial future and that of their families. Agile Capital Services is an
upcoming consulting firm in India. We provide wealth management services to high- and
ultra-high-net-worth individuals at Agile Capital.

Vision of ACS
Our vision is to significantly increase the wealth of our clients by providing best financial
services as well as most valuable recruitment service provider.

Mission of ACS
We thrive to provide best and simplest wealth management advice through honest financial
solutions as well as inspire the candidates to explore job opportunities across various
industrial sectors.

Products provided by ACS

 IndiaFirst Life Mahajeevan Plus Plan: It is a Non-Linked, Participating, Individual,

Limited Pay, Money Back Endowment Plan which allows you to plan wisely for your
growing financial needs with the assurance of liquidity as well as security.

 IndiaFirst Life Guaranteed Benefit Plan: Introducing IndiaFirst Life Guaranteed

Benefit Plan that backs your dreams with the comfort of guaranteed benefits, giving
you the freedom to write your own future.

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Solutions provided by ACS

 Financial Advisory: Team works with large number of private funds such as
hedge funds and private equity to provide beneficial deal to our clients.

 Risk Management: Team helps to quantify the potential for losses and then take
the appropriate actions. We help our client to identify, analysis or acceptance or
migration of uncertainty.

 Investment Research: We have gained investment banking analytics expertise to

develop underwriting and money management business. Through these facilities
we provide best in class services to our customers.

Services Provided By ACS

 Portfolio Management: The art of selecting the right investment policy for the
individuals in terms of minimum risk and maximum return is called as portfolio
management.
 Financial analysis: Analysis and Interpretation of financial statements refers to the
process of determining the significant operating and financial characteristics from
the accounting data with a view to getting an insight into the activities of an
enterprise.
 Recruitment Service: At ACS, you will find a network of efficient regional
consultants who will provide you the pathway towards seamless recruitment
services starting from identifying your potential clients to handling the immigration
process, if required. 
 Internship Programme: We have developed training manuals, conducted training
needs analysis, provided in-house training and produced online and e-training
resources.
 DE stress Your Tax: Fulfil those little desires with the money you save on tax. Our
Tax Savings Solutions can help you to DE-stress tax and at the same time, aim to
grow your money through equity investments.
 Professional Skills Development: Our Professional Skill Development programs are
developed with a purpose of enhancing employability and performance of
individuals that can further support them in their career development.

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 SWOT ANALYSIS OF BANKING FINANCIAL SERVICE &
INSURANCE

STRENGTHS WEAKNESS
1.One of the oldest industries 1. Lack of worldwide coordination
2. A leader in economic growth 2. Old technology leads to vulnerabilities
3. Financial support after a crisis 3. No access to rural areas
4. Digital banking convenience
SWOT Analysis
of BFSI Sector

THREATS
OPPORTUNITIES 1. The biggest threat of all: recessions
1. Move into rural regions 2. Data breaches
2. Offer more or lose customers 3. Increasing Competition

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 COMPETITIVE ANALYSIS

The top key players in the market are:

 SBI Life Insurance

 HDFC Standard Life Insurance
 ICICI Prudential Life Insurance
 Life Insurance Corporation of India
 Bajaj Allianz General Insurance
 Cover Fox
 My Insurance Clubs
 Aditya Birla Sun Life Insurance
 Max Life Insurance
 Exide Life Insurance.

The India First Life Insurance Pvt ltd began operations in November 2009, as the 23rd
private sector entrant in the Life Insurance Industry. The firms listed above are India first life
Insurance Pvt Ltd.’s competitors, as most of the companies offer similar products. We are
the best in terms of claim settlement ratio and giving benefits to customers, and we follow
the #CustomerFirst ideology. Starting with Endowment Insurance policies to Term Insurance
and ULIP with very minor differences in terms of benefits to customers, we stand as the best
in terms of claim settlement ratio and giving benefits to customers.

To increase client acquisition and retention, maintain market share, and accelerate further,
India First Life Insurance Pvt ltd should develop creative promotion and advertising
approaches and strengthen its marketing strategy. They must be more digitally visible.

6
 INTRODUCTION TO INSURANCE

Definition: “Insurance is a contract, represented by a policy, in which an individual or entity

receives financial protection or reimbursement against losses from an insurance company.”

Introduction To Insurance And Its Components

Insurance is a way of safeguarding against financial loss. It's a type of risk management
that's generally utilised to protect against the danger of a speculative or unpredictable loss.

An insurer, insurance business, insurance carrier, or underwriter is a company that sells

insurance. An insured or policyholder is a person or entity who purchases insurance. In
exchange for the insurer's pledge to compensate the insured in the case of a covered loss,
the insured assumes a guaranteed and known relatively small loss in the form of payment to
the insurer. The loss might be financial or non-financial, but it must be reducible to
monetary terms and usually involves something in which the insured has an insurable
interest based on ownership, possession, or a prior relationship.

The insured is given a document, known as an insurance policy, that outlines the terms and
conditions under which the insurer will compensate them. The premium is the amount of
money charged by the insurer to the Policyholder for the coverage specified in the insurance
policy. If the insured suffers a loss that may be covered by the insurance policy, the insured
files a claim with the insurer, which is then processed by a claims adjuster. The insurer can
reduce its risk by purchasing reinsurance, in which another insurance company agrees to
take on a portion of the risk, especially if the primary insurer considers the risk to be too
great for it to bear.

Insurance entails pooling funds from a number of insured businesses (known as exposures)
to cover losses incurred by some. The insured entities are thus shielded from risk in
exchange for a cost, which is determined by the frequency and severity of the event. The
risk insured against must have specific qualities in order to be insurable. Insurance as a
financial intermediary is a commercial activity and a significant element of the financial
services industry, but individuals and businesses can also self-insure by putting money aside
to cover any losses in the future.

Insurance Sector In India

There are 57 insurance companies in India's insurance industry. There are 24 life insurance
companies and 34 non-life insurance companies. Life Insurance Corporation (LIC) is the only
public corporation among life insurers. In the non-life insurance segment, there are six
public sector insurers. Aside from this, the General Insurance Corporation of India is the only

7
national re-insurer (GIC Re). Agents (individual and corporate), brokers, surveyors, and
third-party administrators handling health insurance claims are among the other
stakeholders in the Indian insurance sector.

Market Size

In India, the whole insurance industry is estimated to reach US$ 280 billion by 2020.
Between 2019 and 2023, the life insurance industry is predicted to grow at a CAGR of 5.3
percent. In FY21, India's insurance penetration was 4.2 percent, with life insurance
accounting for 3.2 percent and non-life insurance accounting for 1.0 percent. In terms of
insurance density, India ranked 78th in the world in FY21.

The life insurance industry grew at a 5.8 percent annual pace in the first half of FY22,
compared to 0.8 percent in the same period previous year.

Government Initiatives

The Indian government has made a number of steps to help the insurance industry grow. The
following are a few of them:

 The Indian government inked a US$ 40 million agreement with the World Bank in November
2021 to improve the quality of health services in Meghalaya, particularly the state's health
insurance programme.

 The Union Cabinet approved a Rs. 6,000 crore (US$ 804.71 million) investment in enterprises
in September 2021, with the aim of facilitating increased exports of Rs. 5.6 lakh crore (US$
75.11 billion) over the next five years.

 Finance Minister Nirmala Sitharaman indicated in the Union Budget 2021 that LIC's initial
public offering (IPO) will take place in FY22 as part of the banking and insurance sector's
restructuring. LIC's IPO has the potential to raise Rs. 1 lakh crore (US$ 13.62 billion) despite
the lack of a formal market valuation.

8
  The General Insurance Business (Nationalization) Amendment Bill was enacted by
Parliament in August 2021. The measure proposes to allow state-run general insurance
businesses to be privatized.

 In June 2021, the government extended a Rs. 50 lakh (US$ 66.85 thousand) insurance
coverage scheme for healthcare workers across India until the next one year.

 In February 2021, the Finance Ministry announced to infuse Rs. 3,000 crore (US$ 413.13
million) into state-owned general insurance companies to improve the overall financial
health of companies.

 Under Union Budget 2021, fund of Rs. 16,000 crore (US$ 2.20 billion) has been allocated for
crop insurance scheme.

The government also makes an effort to provide insurance to people living in poverty by
implementing programs such as:

1. Pradhan Mantri Suraksha Bima Yojana (PMSBY)

2. Aam Aadmi Bima Yojana (AABY)
3. Rashtriya Swasthya Bima Yojana (RSBY) and
4. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

The introduction of these plans would enable people from lower and lower-middle income
groups in India to take advantage of new policies with lower premiums.

Investments

The following are some of the major investments and developments in the Indian insurance
sector.

 Companies are trying to leverage strategic partnership to offer various services as

follows:

 In November 2021, ICICI Lombard collaborated with Vega to provide a personal accident
insurance cover with every online Vega helmet purchase to increase road safety
awareness among customers.

 In November 2021, ICICI Prudential Life Insurance partnered with NPCI Bharat BillPay, a
subsidiary of National Payments Corporation of India (NPCI), to offer ClickPay feature to
its customers.

 In November 2021, the Competition Commission of India (CCI) approved HDFC Life
Insurance’s acquisition of 100% shareholding in Exide Life Insurance. The move is
expected to strengthen HDFC Life’s position in South India.

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 In November 2021, Willis Towers Watson acquired the remaining 51% shares in WTW
India, taking the company’s holding in WTW India to 100%.

 In November 2021, Acko, a digital insurance start-up, raised US$ 255 million in funds,
taking the company’s valuation to ~US$ 1.1 billion.

 In September 2021, ZestMoney raised US$ 50 million to enter new business

opportunities in the insurance sector.

Road Ahead

With various changes in the regulatory framework, the life insurance sector's future looks
bright. This will lead to even more changes in the way the industry conducts business and
interacts with its clients. By the end of 2020, the insurance business as a whole is
anticipated to be worth US$ 280 billion. For the next three to five years, the country's life
insurance business is predicted to grow by 14-15 percent annually.

The application of IoT in the Indian insurance business continues to go beyond telematics
and risk assessment of customers. In India, there are currently around 110+ InsurTech start-
ups.The rise of Indian life insurance will be aided by demographic factors such as a growing
middle class, a young insurable population, and a greater awareness of the need for
protection and retirement planning.

Market Share

Interpretation: As we can see, according to IRDA, the highest market share currently in India
is of Life Insurance Company, the reason being its trustworthiness and its existence for
these many years. It is followed by HDFC Standard Life with 14.25% of Market share and SBI
Life with 9.15% of Market Share. ICICI Prudential holds 6.35% of Market Share. The
remaining 17.48% has been a total of all other Insurance Companies.

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 INTRODUCTION TO LIFE INSURANCE

Definition : Life insurance (or life assurance) is a contract between an insurance policy holder
and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum
of money (the benefit) in exchange for a premium, upon the death of an insured person
(often the policy holder).

A contract for life insurance provides financial compensation in the event of death or
disability. Some life insurance policies even provide financial compensation after a set
amount of time or after retirement. As a result, life insurance assists you in ensuring the
financial stability of your family even if you are not present. When buying a life insurance
policy, you can either pay in one large sum or make monthly payments to the insurer. These
are referred to as premiums. In exchange, your insurer agrees to pay a certain amount to
your family in the case of your death, disability, or at a predetermined time. Even after you
retire, life insurance can help you support your family.

The goal of life insurance is to offer financial security to an insured's surviving dependents in
the event of his or her death. Before acquiring a life insurance policy, applicants must assess
their financial status and estimate the level of living required for their remaining
dependents. Agents or brokers who specialise in life insurance can help you examine your
needs and choose which sort of life insurance is best for you. Whole life, term life, universal
life, and variable universal life policies are among the options for life insurance. Annually, or
following big life events such as marriage, divorce, the birth or adoption of a child, and
major purchases such as a home, it is prudent to re-evaluate life insurance needs.

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 TYPES OF LIFE INSURANCE

 It is the most basic type of insurance.

 It covers you for a specific period.
Term Insurance  Your family gets a lump-sum amount in the case of
your death.
 If, however, you survive the term, no money will be
paid to you or your family.

 It covers you for a lifetime.

Whole Life Insurance  Your family receives a certain sum of money after
your death.
 They will also be entitled to a bonus that often
accrues on such amount.

 Like a term policy, it is also valid for a certain

period.
Endowment Policy  A lump-sum amount will be paid to your family in
the event of your death.
 Unlike a term plan, you get the maturity proceeds
after the term period.

 A certain percentage of the sum assured will be

paid to you periodically throughout the term as
survival benefit.
 After the expiry of the term, you get the balance
Money-back Policy amount as maturity proceeds.
 Your family gets the entire sum assured in case of
death during the policy period. This is regardless of
the survival benefit payments made.

 Such products double up as investment tools.

 A part of your premium goes towards your
insurance cover.
 The remaining amount is invested in Debt and
Equity.
 A lump-sum amount will be paid to your family in
the event of your death.
Unit-linked Insurance Plans
(ULIPs)

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 WORK UNDERTAKEN

Product Learning

At ACS I was thought about the various financial sectors, roles and responsibilities of HR,
Highlights of the product, understanding customers’ needs, pitching of the product, new
terminology, sales strategies, Pay slip, Taxation, Product knowledge and customer
knowledge.

Product Sale

We were asked to sell the products to our inner circle that is our family and friends and try
to convince them why they should buy our product. Apart from this few cold calling was also
done. The Daily Sales Report is shared with the manager and further if any doubts regarding
the pitch or sales we use to take help from them.

The following steps carried during the process of product selling are as follows:

 Suspect: My strategy is be first to get engaged with my personal connections such as

my family members, friends, relatives, neighbor’s, network and listing them
demographical factors such as age, income.

 Prospect: Ones I have segmented my suspect my next step would be to understand

their requirements and conditions along with their personal information such as
designation, occupation etc. so that it will be easier for me to and filter for the next
stage.

 Approach: I would do a thorough research of my prospect before engaging and

then get into a pre call planning. I will make sure that my prospect finds the product
worth investing and try to build the trust during the call. Will follow up questions
timely and mean while listen to his situation and where he stands in terms of
investing?

 Negotiate: I would convince the client it’s not just about money it’s beyond that and
make a steer clear range. Try to avoid splitting of difference. Would keep the
conversation light and won’t rush.

 Follow Up: Ones the conversation sounds to be positive we would encourage the
client to take action and by doing this the client will have some trust and also it’s a
kind of tactics to promote our product.

 Finalizing: Ones the client shows the green flag we will proceed with the
documentation and seal the deal.

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Daily Sales Report :

Monday to Saturday daily at 10:00AM I update my progress of sales report where the
number of pitches made by me and the status of my pitches is been mentioned. I follow the
above steps for my product pitching. Attaching the DSR

Progress Of The Project

Product Learning

Various marketing strategies are applied to increase the sale of insurance. Within the realm
of Financial Products, life insurance is one of the most important and crucial products.
Human life is a valuable asset, and life insurance is the most common type of insurance that
protects a person and his family financially in the event of unforeseen dangers or harm. The
purpose of life insurance policies is to offer users with safety and protection, as well as a
platform to encourage them to save. Life, like life insurance, is priceless. Because of India's
large population, insurance companies see it as one of the most promising markets for
selling life insurance. Customers are the life insurance industry's most important pillars.

Source of Data
 I am working on both, Primary and Secondary Data.
 Went through some literature review.
 Primary data will be collected through Google survey based on age gender income,

14
 etc., and then conducting the hypothesis test to calculate the association between
demographical factors and insurance decision making.
 Secondary data is collected from IRDA annual reports, insurance journals and
insurance website.

Road Ahead

 Ones all the data collection is completed will be start with the interpretation.
 To draw a sound conclusion will be using the technique of chi-square to test the
hypothesis.
 Tools used will be SPSS and MS Excel.

Other Roles and Learning’s

 Communication seed increased by pitching the product.
 Dealing with different kinds of customers.
 As a part of my project I got to learn a lot about finance

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 LIMITATIONS

 Since I'm doing WFH it's difficult to catch up with the learning’s online as it's a BFSI
sector, every day is a new learning.

 Lack of awareness about insurance amongst people.

 Gathering personal details from the clients such as Income, Insurance Policy they
are signed with, etc. is difficult.

 Arduous to measuring and predicting customers' behavior towards the product.

 Pitching people to invest on the product is difficult.

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