MINOR PROJECT

ON

HDFC Standard Life Insurance Company Ltd

CUSTOMER-BUYING BEHAVIOR

Submitted In Partial Fulfillment of the Requirement

Of Bachelor of Business Administration

SUBMITTED TO: SUBMITTED BY:

MISS.MANISHA SETHI RADHIKA MEHRA

Project guide (internal)

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Delhi institute of rural development, Nangli Poona)

(Affiliated to Guru Gobind Singh Indraprastha University)

 DECLARATION

I hereby declare that this Project Report titled ‘HDFC STANDARD LIFE
INSURANCE CUSTOMER BUYING BEHAVIOR’ submitted by me to Delhi
Institute Of Rural Development, NANGLI POONA is a Bonafide work undertaken
during the period from 24th may 2010 to 31st July 2010 by me and has not been submitted
to any other University or Institution for the award of any degree diploma / certificate or
published any time before.

…………………… Date: / / 2010

Radhika Mehra

01012401709

(2009-2011)

Signature of the Student

 BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitled ‘HDFC STANDARD
LIFE INSURANCE CUSTOMER BUYING BEHAVIOR’ is the Bonafide research
work carried out by Radhika Mehra, student of BBA, DIRD, NANGLI POONA, New
Delhi during May-July 2010, in partial fulfillment of the requirements for the Minor
Project of the Degree of Bachelor of Business Administration.

She has worked under my guidance.

Counter signed by

-------------

Dr. A.K CHOUDHARY

Director

Date:

…………………

MISS.MANISHA SETHI

Project Guide (Internal)

Date:
ACKNOWLEDGEMENT

First of all I will thank to our director sir “Dr. A.K CHOUDHARY”, who give me the
valuable suggestion for my minor project.

The success of this final report is the outcome of Guidance and Valuable suggestions
provided by the all concerned without which the report could not fide on the right back.

I express my sense of deep gratitude to Faculty Coordinator “MISS.MANISHA SETHI”

for inclusions and timely suggestions in the preparation of this final report.

Finally ,I will be failing in my duty, if I do not thank my parents, brother, friends and
well wishers for their enthusiastic support and who have directly or indirectly helped in
some way or the other in making this final report a success.

Name: Radhika Mehra

BBA

01012401709
EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that insurance sector has the maximum
growth and potential as compared to the other sectors. Insurance has the maximum
growth rate of 70- 80% while as FMCG sector has maximum 12-15% of growth rate.
This growth potential attracts me to enter in this sector and HDFC Standard Life
Insurance Company Ltd has

The success story of good market share of different market organizations depends upon
the availability of the product and services near to the customer, which can be distributed
through a distribution channel. In Insurance sector, distribution channel includes only
agents or agency holders of the company. If a company like RELIANCE
LIFE INSURANCE, TATA AIG, MAX etc have adequate agents in the market they can
capture big market as compared to the other companies.

The company should also provide the promised benefits to the customers to spread the
positive word of mouth. This mode is very effective in building a popular and trusted
brand in the market.
CHAPTER 1

INTRODUCTION
History of insurance

In 1818 the British established the first insurance company in India in Calcutta, the
Oriental Life Insurance Company. First attempts at regulation of the industry were made
with the introduction of the Indian Life Assurance Companies Act in 1912. A number of
amendments to this Act were made until the Insurance Act was drawn up in 1938.
Noteworthy features in the Act were the power given to the Government to collect
statistical information about the insured and the high level of protection the Act gave to
the public through regulation and control. When the Act was changed in 1950, this
meant far reaching changes in the industry. The extra requirements included a
statutory requirement of a certain level of equity capital, a ceiling on share holdings in
such companies to prevent dominant control (to protect the public from any adversarial
policies from one single party), stricter control on investments and, generally, much
tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance
companies. Business was heavily concentrated in urban areas and targeted the higher
echelons of society. “Unethical practices adopted by some of the players against the
interests of the consumers” then led the Indian government to nationalize the
industry. In September 1956, nationalization was
completed, merging all these companies into the so-called Life Insurance Corporation
(LIC). It was felt that “nationalization has lent the industr y fairness, solidity, growth and
reach.”

Defination ofInsurance

insurance is a contract between two parties where by one party is called insurer
undertakes in exchange for a fixed sum called premium , to pay other party happening of
certain event.
TYPES OF INSURANCE

Insurance can be termed as a form of risk management which is mainly used to protect an
individual against the risk of prospective financial loss, if any. Insurance can be used as a
tool to shield an individual against potential risks like travel accidents, death,
unemployment, theft, property destruction by natural calamities, fire mishaps etc.

Different types of insurance is used to cover different properties and assets such as
vehicles, home, health care etc. Basically, an insurance policy can also be known as a
protection net which secures you from any financial losses in future.
All you have to do is pay the insurance agencies a specified amount every month, known
as premium, so that they can take care of you by providing you financial back up in case
of a sudden health emergency or a fatal incident.

Ther are two ways for getting an insurance done.

One way is to visit an agent and consult him for the best option you can avail for your
situation. And then, trust him/her for their suggestion on the type of insurance they feel is
right.

The other way is to research and choose on your own, the type of insurance which will be
best suited for your situation. You should research the market as well as the net, to look
for the best insurance companies, and further more, the most suitable type of insurance
thattheyoffer.
Also explore the various types of policies which are available to you in the market, and
then compare to decide which one to choose finally.

HealthCareInsurance

With such high medical and health care costs these days, it’s hard to even think about
visiting a doctor. But what about an unexpected mishap or an unforeseen disability or
attack, where the potential medical bills could shoot up to a sky? Where would you get so
much money from?

These are exactly the situations where you feel you had a security, something which
could come to your rescue and save you from such financial crisis. While some
companies do provide its employees with health insurance, for others, this is a must.
Especially for the aging couples, who have a comparatively more chances of needing
emergency bill money. The health insurance does it all, so that they do not have to worry
for the huge payments at the last minute.
A health insurance can cover all from a routine immunization to a major illness.
LifeInsurance

Loss of a family member is a catastrophe which glooms a family’s life. But even more
tragic is the death of a sole bread earner for the family, who then has to go through the
pain of losing their loved one, as well as the financial loss putting their survival in
jeopardy.

This financial hardship due to a sudden death of a family member or a disability resulting
to a loss of job or inability to work can be avoided to a great extent by taking up a life
insurance policy.
A Life insurance or disability insurance covers such losses and pays a family,
compensation to restore the earnings lost by them due to a sudden death or disability.

The monthly premiums for a life insurance are generally based upon the age, health, and
occupation information of the applicant, in addition to the total benefits to be paid to him
for his policy.

HomeInsurance

Real estate property and hard assets are subject to accidental risks like theft, destruction
due to natural disasters or fire accidents etc. with such huge investments gone into buying
a real estate property like your home or office, the risk involved is a loss of large amount
of money.

Home and property insurance helps you in managing and protecting against these risks.
The cost of a real estate property and its insurance is mostly based upon the worth of the
already insured hard assets and also the location in which the assets are situated.

TravelInsurance

This is intended to cover any of the financial or any other losses which were incurred by
the insured while traveling, be it nationally or internationally, such as mountain trekkers,
cruisetc.

Autoinsurance

Any vehicle on road, no matter how safe its driver is, is bound to meet with an accident
or two, which may leave it with just a few scratches, or crash it up totally. Most countries
today require you to have an auto insurance while on road in your vehicles.

If you have an accidental car crash, a total repair could cost you a fortune. On the other
hand, a little scratch on your Land Cruiser might also soar up your bills to a high.
Whether or not you need an auto insurance mostly depends on the type of car you own.

If you have an expensive car and a little repair could wipe you out financially, you should
very well go in for a buying an all-inclusive and crash insurance which could protect you

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government
to collect statistical information about both life and non-life insurance businesses

1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public

1956: The market contained 154 Indian and 16 foreign life insurance companies
MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to

spread the message of life insurance in the countr y and mobilise people’s savings
for nation-building activities. LIC with its central office in Mumbai and seven zonal
offices at Mumbai, Calcutta Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates
through 100 divisional offices in important cities and 2,048 branch offices. LIC
has 5.59 lakh active agents spread over the country.

LIC has even provided insurance cover to five million people living below the poverty
line, with 50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95 per
cent and GIC's at 74 per cent are higher than that of global average of 40 per cent.
Compounded annual growth rate for Life insurance business has been 19.22 per cent per
annum.

HDFC Standard Life Insurance Company Ltd

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life
insurance companies, which offers a range of individual and group insurance solutions. It
is a joint venture between Housing Development Finance Corporation Limited
(HDFC Ltd.), India’s leading housing finance institution and The Standard Life
Assurance Company, a leading provider of financial services from the United Kingdom.
They have managed to cover over 11,00,000 individuals out of which over 3,40,000 lives
have been covered through our group business tie-ups.

Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings together
two large forces - Max India Limited, a multi-business corporate, together
with New York Life International, a global expert in life insurance. With their various
Products and Riders, there are more than 400 product combinations to choose from. They
have a national presence with a network of 57 offices in 37 cities across India.

. ICICI Prudential Life Insurance Company Ltd

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 Insurance Regulatory Development
Authority (IRDA). The company has a network of about 56,000 advisors; as well as 7
banc assurance and 150 corporate agent tie-ups.

Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc

Birla Sun Life Insurance Company Ltd

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and Sun
Life financial Services of Canada.
Marketing of Insurance In India

Insurance is in a manner of speaking the last frontier in the financial sector to open. It is
also a sector, which leads to benefits across the full spectrum, from the individual who
now have wider choices, to the economy, which see increased savings, to the
infrastructure sector, which can look forward to long term funding being available. In an
under-insured economy, newer channels of distribution have to be utilized to intensify
the reach of insurance both in urban and rural markets. This will create huge
employment opportunities not only within insurance companies but also as agents and
consultants of insurance companies.

Marketing Mix Policies

Different companies can choose to position themselves differently and hence the
Marketing Mix is different. However, there are certain common char acteristics that one
can cull out from the possible strategies that companies adopt .

Product:

The development of flexible products to suit individual requirements is what will

differentiate the winners from the also-rans. The key to success is in providing
insurance solutions, not standardized insurance products. The concept of riders/optional
benefits has already been a huge. innovation brought about by the new players, which has
led to customization of products for individual needs. However, companies may
differentiate themselves on the basis of product segments that they choose to focus on
and excel in

Place:

Different companies may however choose different channels and different geographies to
focus on. The channel options are - tied agency force, corporate agents and brokers and
this is an area where different companies will make different choices. Many companies
like HDFC Standard Life are focusing on all channels whereas companies like Max New
York Life are focusing on the tied agency force only. Customer interface will be a
key challenge for life insurance
sales, new business underwriting, policy servicing, premium payments, claim processing
and so on. Technology can play a crucial role in delivering the highest standards of
service set by the company and it will be imperative for any serious player to excel in all
of these.

Price:

Price is a relevant differentiator only in two segments - pure term insurance

and in pure annuities. Here too, service delivery and financial strength will need to be
present at a minimum annuities. Here too, service delivery and financial strength will need
to be present at a minimum long- term returns generated are more relevant than just the
price of the product. A focus on generating good investment performance and keeping a
tight control on costs help in generating. good long-term maturity value for customers.
Norms have been laid down on all of these by IRDA and adhering to these while
delivering good returns will be a challenge.

Promotion and Advertising:

The level of demand is latent and will have to be activated considerably. The market needs
to be developed. Greater awareness of insurance and the need to have it as a protection
tool rather than as a tax planning measure needs to be appreciated by the Indian people.
Various communication tools including advertising, direct marketing and road shows
contribute to all this and different companies take different approaches on these.

Process:

Cashless settlement: One of the most defining and customer-friendly changes that we’ve
seen in recent years relates to the way claims settlements are made. The advent
of the third-party administrator (TPA) regime has facilitated the transition to the hugely
convenient era of cashless settlement of health and auto insurance claims. TPAs are
entities who process claims on behalf of insurers: the IRDA licenses them after it is
satisfied that they have the financial strength, the trained manpower, the infrastructure
and the skills to undertake this activity Likewise, with auto insurance, the TPA ties up
with garages and authorized service centers for cashless settlement of auto insurance
claims.

Lower premiums: The spirit of competition and the broadening of the risk
experience of insurance companies have contr ibuted to a fall in premiums over the
years. That’s because, other things being equal, an insurer who covers the lives just of 10
people bears a higher risk than an insurer who covers the lives of, say, 100 people.
Further, a broader base will provide greater efficiencies on costs such as
distribution, management and claims. A broad basing of the mortality experience,
therefore, gives insurers the elbowroom to compete by lowering premiums and that trend
is expected to continue.

People:

The most important factor that materializes sales and maintains customer relationships on
a long- term basis is this factor. No matter what distribution strategy a company
adopts, customer relationship has to be taken care of in order to maintain the customer
base on a long-term basis.
OBJECTIVES OF STUDY

To study about the awareness among the people for joining as agent in life insurance
companies.

To know the role and scope of financial consultant in life insurance companies.

To know the perception of consumer about life insurance.

To do the swot analysis of hdfc standard life insurance.

To know the different products offered by hdfc standard life insurance.

CHAPTER 2

COMPANY
PROFILE
HISTORY

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions. It is a joint
venture between Housing Development Finance Corporation Limited (HDFC Ltd.),
India's leading housing finance institution and a Group Company of the Standard Life,
UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.
HDFC is India leading housing finance institution and has helped build more than 23,
00,000 houses since its incorporation in 1977. In Financial Year 2003-04 its assets under
management crossed Rs. 36,000 Cr. Stable and experienced management. HDFC Standard
Life Insurance offers a range of individual and group solutions, which can be easily
personalized to specific needs. Its group solutions have been planned to offer complete
flexibility, together with a low charging structure. As of 31 December, 2008, the
Company's new business premium income stood at Rs. 1,839.70 Crores; it has covered
over 812,811 lives so far. Given below is a comprehensive list of policies and products
on offer by HDFC Standard Life Insurance:

Gross premium income, for the year ending March 31, 2009 touched Rs. 5,564.69 crore
As on March 31, 2009, it has over 27 lakh polices in force and Our gross premium
income, for the year ending March 31, 2010 stood at Rs. 7005 crores and new business
premium income stood at Rs. 2,561 crores.

Their key strenths lie on their financial expertise range of solution as mentioned earlier
and their immpacable track record thus far. Their trained sales force state of the art
technology and appropiate system and processes are all considered in ordre to acieve the
highest possible standard in customer sevice.

The company is to set the standard of the company by offering the best value of money.
They want to be the most trusted brand in the insurance business and they aim to be the
easiest company to deal with when it comes to their valuable client , shareholders and
employees.

It is a commercial bank of India has many branches all over India. HDFC Bank was
promoted by the Housing Development Finance Corporation, a premier housing finance
company of India. HDFC bank allows users to use ATM outside the Country without any
extra fees. HDFC Bank online banking is available for users. That means you can open
HDFC bank account online and check HDFC account status online. Most of the people of
India like HDFC Standard Life Insurance policy plans and products.

HDFC Standard Life Insurance company is one of leading private insurance companies,
offering a range of individual and group insurance solutions in India. Here you can catch
all life insurance plans of HDFC Standard Life Insurance Policy. HDFC Standard Life
Insurance Policy plans are so simple.

You can make a better future of your own and also your family with opening a HDFC
Standard Life Insurance Policy. HDFC Standard Life Insurance also allows you HDFC
Standard Life Insurance online payment. You can pay HDFC Standard Life Insurance
premium online. You can buy HDFC Standard Life Insurance Policy online. Here is a
list of policies and products offer by HDFC Standard Life Insurance
PLANS FOR HDFC STANDARD LIFE INSURANCE

HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in
mind, we have a varied range of Products that you can choose from to suit all your needs.
These will help secure your future as well as the future of your famil

Protection Plans

• HDFC Term Assurance Plan

• HDFC Loan Cover Term Assurance Plan
• HDFC Home Loan Protection Plan

Children's Plans

• HDFC Children's Plan

• HDFC Unit Linked Young Star II
• HDFC Unit Linked Young Star Plus II
• HDFC Unit Linked YoungStar Champion

Retirement Plans

• HDFC Personal Pension Plan

• HDFC Unit Linked Pension II
• HDFC Unit Linked Pension Maximiser II
• HDFC Immediate Annuity

Savings & Investment Plans

• HDFC Unit Linked Endowment Plus II

• HDFC SimpliLife
• HDFC Unit Linked Endowment II
• HDFC Unit Linked Enhanced Life Protection II
• HDFC Unit Linked Wealth Maximiser Plus
• HDFC Unit Linked Endowment Winner
• HDFC Endowment Assurance Plan
• HDFC Money Back Plan
 • HDFC Single Premium Whole of Life Insurance Plan
• HDFC Assurance Plan
• HDFC Savings Assurance Plan

Health Plans

• HDFC Critical Care Plan

• HDFC SurgiCare Plan

Group Plans

• Group Term Insurance Plan

• Group Variable Term Insurance Plan
• Group Unit Linked Plan - Gratuity
• Group Unit Linked Plan - Superannuation
• Group Unit Linked Plan - Leave Encashment

HEAD – OFFICE

Trade Star 2nd floor,

A WingJunction of Kondivita and M.V,

RoadAndheri-Kurla RoadAndheri (East),

Mumbai : 400059,

Maharashtra ,India .
BRANCHES

They have so many branches and substations in the India.

They have around 160 branches in the India.

And they have planned to open more branches across the country in the coming months.

MANAGING DIRECTOR AND CEO:

The managing director and ceo of standard lifi insurance company is Mr.Deepak
satwlekar.

AWARDS AND ACHIEVEMENTS:

Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in
2004 Rated by 'Business world' as 'India's Most Respected Private Life Insurance
Company' in 2004 finance magazine
HDFC KEYS STRENGHS

Financial expertise

as a joint venture of leading financial sevices group HDFC Standard life has the financial
expertise required to manage your long term investment safely and efficiently.

Range of solution

HDFC Standard have a range of individual and group solution , which can easily
customized to specific needs . and its group solution is designed to offer the complete
flexibility combine with a low charge structure.

Track record so far

Its gross premium income for the year 31st march 2008 stood at Rs 4859 crores and new
business premium income stood at Rs. 2685 crores.
The company has cover over 959000 year ending march 2008
Our Vision
'The most successful and admired life insurance company, which means that we are the
most trusted company, the easiest to deal with, offer the best value for money, and set the
standards in the industry'.

Our Values

Values that we observe while we work.

Integrity
Innovation
Customer centric
People Care One for all and all for ones
Teamwork
Teamwork
RECRUITMENT Process in HDFCSLIC

Recruitment is the process of finding and attracting capable applicants for employment.
The process begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of applicants from which new employees are selected.

In this company the Sales Manager, who recruits the advisors/agents for selling the
products of the company, does the recruitment. The advisors should have at least passed
the S.S.C. examination. They must pass the pre recruitment examination, which is
conducted by the Insurance Institute of India, Mumbai, or any other approved
examination body. After clearing theExamination the code will be provided to them and
the license will also be given to them, the validity the license would be 3 years. After all
these requirements, the person will become an insurance advisor in the company.

SELECTION

Selection is the process of picking individuals (out of the pool of job applications) with
requisite qualifications and competence to fill job in the organization. In simple words, it
is the process of differentiating between applicants in order to identify these with a
greater likelihood of success in a job.

The Branch Manager, will conduct the process of selection of Sales Manager.

Personal Interview: -

The first step of selection of Sales Manager in HDFC Standard life insurance
corporation is to conduct a personal interview of an applicant by the Branch
Manager.

Interview with Regional Head: -

After clearing the project 40 interview, the applicant should be interviewed by

the Regional Head, who will check his/her performance.

Negotiation: -

After clearing the interview with Regional Head, the negotiation will be
provided to the applicant.

Medical Examination: -

After that, the medical checkup should e made to the applicant.

 Selection: -

After clearing all the above steps the applicant should be appointed /selected as a
Sales Manager in the company.

TRAINING AND DEVELOPMENT:-

Training and Development is any attempt to improve current or future employee

performance by increasing an employee’s ability to perform through learning usually by
changing the employee’s attitude or increasing his/her skills and knowledge. The need for
training and development is

Determined by the employee’s performance deficiency, computed as follow:

CAREER DEVELOPMENT

They are also providing career development plans, which will identify potential and
create avenues for growth.

INCENTIVES

Incentives are monetary benefits paid to workmen in recognition of their outstanding

performance. They are providing an aggressive reward and recognition plans, which are
including sales incentives.

SERVICES

They are offering following certain services to their employees.

• They are providing knowledge sharing and certification practices.

• They are planned team building and fun events.
SWOT ANALYSIS

SWOT analysis is the analysis of the internal and external factors, which have impact on
the survival of any organization.

STREANTH:

Stong brand name

a large distribution network
customer centric approach execution in excellence
team work
good infrastructure

WEAKNESSES:

Frequent job rotation by employees

less number of advertisement
hidden charges

OPPORTUNITY:

Only 25% of insurable people have any insurance

can introduce innovative products offering a right mix of flexibility / risk / return
share of fdi is going to raise by 26% to 49%.

THREATS:

People prefer short investment rather than insurance.

Other private insurance companies

CHAPTER 3

LITERATURE
REVIEW
 Major Insurance Industry Trend

Although the insurance sector has had at least one spectacular disaster during the current
financial crisis, in the shape of the huge losses sustained by American International
Group (AIG), it has, by and large, not been nearly as badly damaged by the crisis as the
global banking sector.

In a considered paper on the impact on the sector of the crisis, Zurich Re author, Marian
Bell, argues that although insurers and banks are both suppliers of financial services, and
together constitute the bulk of the financial services industry, they remain very distinct
businesses, with different regulatory regimes, and a different approach to risk. Thus, it is
not surprising that the financial crisis has affected the two related businesses of banking
and insurance differently.

The insurance sector has been exposed to the current financial crisis in several ways. It
invests in equities, and, substantially, in banking stocks (which gives it exposure to bank
losses through share price losses in its investment portfolio), and in corporate investment-
grade bonds, about 60% of which come from the finance sector. Insurance companies
have also, in recent years, become much more involved in the capital markets, with some
insurance lines being securitized and sold to the capital markets.

However, this does not pose as great a risk as the banks investing in asset-backed
securities, many of which turned toxic as the US subprime mortgage crisis developed.
The International Association of Insurance Supervisors (IAIS), which represents
insurance regulators and supervisors from some 190 jurisdictions around the world, has a
clear view of the global insurance industry. In a communiqué issued on December 17,
2008, it said that the global reinsurance sector “remains resilient amid the financial
crisis.”

The IAIS made the remarks in the context of publishing its fifth annual overview of the
financial conditions of reinsurers, the Global Reinsurance Market Report 2008. The
overview assessed the reinsurance market’s stability and interrelated risks, as well as the
impact of the current turmoil on the sector’s ability to transact business. The point is that
reinsurers, who can be thought of as the companies to which insurance organizations
hand off some of their book risk, so as to dilute their own positions, play an important
role in the functioning of efficient insurance markets across the world. They act like
shock absorbers, particularly in providing disaster coverage.

The reinsurance business, as is true for the whole insurance sector, is very cyclical, with
good years and bad years. Another cycle in the sector is that of hard pricing versus soft
pricing. Hard pricing, basically, takes over after the sector has endured one or more
particularly bad years, and the cost of insurance across a whole range of lines of business
rises sharply. Normally, the capacity in the industry is enough to ensure that competition
for business keeps prices on the low side. Any insurance company that tries to raise
prices finds its customers going elsewhere, so no single organization has the power to
“harden” prices. This can only happen when capacity is taken out of the industry, again,
usually after companies have made losses through massive payouts on disasters.

The IAIS points out that, following record losses in 2005, particularly hurricane losses
and flood damage, both 2006 and 2007 were profitable years for the reinsurance sector.
This gave the sector a solid financial base to weather the challenges of the financial crisis,
the IAIS says.

Zurich Re, in its report, quotes the IAIS as saying that no insurers have, so far,
experienced “liquidity difficulties as a result of the recent market turmoil.” They have all
remained open for business, and have been transacting business in a way that the banks
clearly have not.

In all, the Zurich Re report says, insurers’ exposure to the toxic asset-backed securities
market amounts to no more than 1% of assets in aggregate. In effect, the report says that
the upturn in the insurance industry’s pricing cycle in 2008, with prices hardening in
some lines of business, led insurers to start redeploying their capital away from
potentially “dodgy” derivatives investments, and back into their core lines of business.

It is important to understand the difference between the types of risk run by the two
sectors. As the Zurich Re report notes, the banking sector invested in products where the
underlying risk is a financial or market risk (such as credit worthiness, price volatility, or
exchange-rate volatility). Insurance-linked securities, on the other hand, are products
where the underlying risk is a real event, such as a natural catastrophe, a fire, or a motor
accident. The various types of financial risk can, in some circumstances, all turn out to be
related, creating a “perfect storm.” With insurance risk, however, the events are
fundamentally unrelated and uncorrelated. They are non-systemic, idiosyncratic risks.
This means that in financial risks the risk can be aggregated in ways that prevent hedging
strategies from working (all prices fall when markets collapse). “The risks cannot be
diversified away by investing in other financial and market risks,” the report says. In
contrast, insurance-linked securities offer the prospect of diversification and are not
subject to the same degree of contagion as financial risk. Here again, this explains why
the insurance sector has come out of the crash better than the banking sector.
CHAPTER 4

RE
SEARCH
METHODOLOGY
The above title is self explanatory. The study deals mainly with studying the buying
pattern in the insurance industr y with a special focus on HDFC Standard Life Insurance.
The various segments of the markets divided in terms of Insurance Needs, Age groups ,
Satisfaction levels etc will also studied.

SamplingTechnique:

Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot
study was done in order to know the accuracy of the Questionnaire. The final
Questionnaire was arrived only after certain important changes were done. Thus my
sampling came out to be judemental and convinent

Primary data: -

For the survey a sample of 150 people were considered. Out of these 70 of them are
personally visited, rest information about 80 are gathered through online. Out of these 14
people haven’t responded, 36 responses were discarded and remaining 30 responses were
complete to get data.

Secondary data: -

Secondary data consist of information that already exists somewhere, having been
collected for another purpose. For this report secondary data is collected from website of
different operators, different magazines, newspapers and libraries.

Sample size: -

Thus sample size of 100 respondents is taken. Because the population is too large so it is
difficult to survey.
OBJECTIVE OF THE RESEARCH METHODOLOGY

To determine reasons behind opting for an insurance To provide the company with
information of customer's Insurance policy if they have any and reasons for opting for
that particular policies.

To determine customers perception towards private insurance companies and

their expectation form private insurance companies To determine the feedback on services
provided by any other insurance agent To study the types of benefits provided by
insurance services To determine the use of Internet for valuable information and decision -
making process.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industr y in recent times. A large number of
new players have entered the market and are vying to gain market share in this rapidly
improving market. The study deals with HDFC Standard Life in focus and the various
segments that it caters to. The study then goes on to evaluate and analyse the findings so
as to present a clear picture of trends in the Insurance sector.

SIGNIFICANE FOR THE RESEARCHER

To facilitate and provide all the useful informtaion of the studt, the
company, the insurance
industr y and also provide marketing ways, methods of HDFC Standard
Life insurance.

RESEARCH DESIGN

NON-PROBABILITY

EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The

sources of infor mation are both primary & secondary

A well-structured questionnaire was prepared and personal interviews were conducted to

collect the customer’s perception and buying behavior, through this questionnaire
CHAPTER 5

DATA
ANALYSIS
Market Research for the project was conducted in Delhi and Ghaziabad. It is a descriptive
type of research and sampling for responses is simple random sampling. The sample size
for the research is 100 for comparative analysis and 100 for recruiting Life Advisors.

In the survey I have also found out the persons who are working and the students were
keen in taking on line training as compared to housewives and retired persons.

Analysis Made By Responses :

Which Age Group buy insurance policy?

AGE GROUP IN PECENTAGE

20-29 35

30-39 31

40-49 18

50-59 5

Above 60 11

TOTAL 100

Table No1.1: Age Group of the Customers

 AGE GROUP

11%
5% 20-29
35%
30-39
18% 40-49
50-59
Above 60

31%

INTERPRETATION:

As evident from the chart that I have taken a sample of 100. Out of which 35% people are
aged between 20 to 29, 31% people are aged between 30 to 39, 18% people are aged
between 40 to 49, 5% are between 50-59, and remaining 11% are above 60. According to
above data, we get to know that People belong to Age Group 20-39 buys Insurance
policies most. This shows, youth are more concerned towards saving or making
investments to secure their today as well as tomorrow. This also depicts that, Youths are
investing to get returns more, where as people belongs to age group 50-59 are investing
for saving purpose in their retirement
What Are The Occupation Of Customers?

TYPES OF OCCUPATION PERCENTAGE

SERVICE 46
BUSINESS 28
SELF EMPLOYED 12
RETIRED 14
TOTAL 100

Table No1.2: occupation of customers

OCCUPATION

14%

SERVICE
12%
46% BUSINESS
SELF EMPLOYED
RETIRED

28%

. INTERPRETATION:

As the evident from the chart that out of 100 respondents, 46% are of service men, 28%
are of business men, 12% are of self employed, and remaining 14% are of retired.

Data gives preference of respondents of insurance companies?

COMPANY NAME IN PERCENTAGE
LIC 30
HDFC 42
ICICI Pru 10
SBI Life 12
RELIANCE life 6
TOTAL 100

Table No1.3: occupation of customers

IN PERCENTAGE

6%
12%
30%
LIC
HDFC
10%
ICICI Pru
SBI Life
RELIANCE life

42%

INTERPRETATION:

42% of the people contacted prefer HDFC LIFE policy to any other and therefore it is
ranked no.1 by that percent of respondents.

DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS?

BENEFITS IN PERCENTAGE

Future uncertainity 60

Tax deduction 20

Future investment 20

TOTAL 100

Table No1.4: occupation of customers

IN PERCENTAGE

20%

Future uncertainity
Tax deduction
20% 60% Future investment

INTERPRETATION:

60% of the respondents believe that covering future uncertainty is the biggest benefit of
an insurance policy Whereas, 20% and 20% of them believe that the other benefits are
Tax deduction and future investments respectively
What are the features of insurance policy that attract the respondents?
FEATURES IN PERCENTAGE
Money Back guarantee 20
Large Risk Coverance 38
Low Premium 30
Company Reputation 12
TOTAL 100

Table No1.5: occupation of customers

IN PERCENTAGE

12%
20% Money Back
guarantee
Large Risk
Coverance
30% Low Premium

Company
38% Reputation

INTERPRETATION:

Majority of the respondent (38%) found Larger risk coverance as the most attracted
feature of the all.

Which type of policy does respondent have?

POLICY TYPE IN PERCENTAGE
Life Policy 52
Non Life Policy 20
Both 28
TOTAL 100

Table No1.6: occupation of customers

TYPE OF POLICY

28%

Life Policy
52% Non Life Policy
Both

20%

INTERPRETATION:

52% of the respondents have Life Insurance Policy while 28% have both

Have u heard about HDFC Standard Life Insurance Policy?

OPTIONS IN PERCENTAGE

Yes 90

No 10

TOTAL 100

Table No1.7: occupation of customers

HDFC STANDARD LIFE INSURANCE

10%

Yes
No

90%

INTERPRETATION:

Of the sample size of 100 surveyed respondents 90% of the respondents are
known about HDFC standard life insurance and other 10% did not even heard about the
HDFC standard life insurance.

Data shows the satisfaction of respondent with respect to insurance policy?

SATISFACTION IN PERCENTAGE

Satisfied 60

Not Satisfied 30

Not Responding 10

TOTAL 100

Table No1.8: occupation of customers

SATISFACTION OF RESPONDENTS

10%

Satisfied
30% Not Satisfied
60% Not Responding

INTERPRETATION:

60% of the respondents are more or less satisfied with their existing policy 30% of the
respondents are not satisfied with their existing policy and 10% of respondent have not
responded .

In which type of market will respondents invested their money?

TYPE OF MARKET IN PERCENTAGE
Share Market 14
Mutual Fund 15
Insurance 23
Others 48
TOTAL 100

Table No1.9: occupation of customers

INVESTMENT IN MARKET

14%

Share Market
15%
48% Mutual Fund
Insurance
Others

23%

INTERPRETATION:

48% of respondents are like to invest money in other market whereas 23% of respondents
are like to invest in insurance and 14% and 15% are like to invest in share market and
mutual fund respectively.

Data shows the buying process of respondents?

BUYING PROCESS IN PERCENTAGE

Customer Approach insurance Company 45

Insurance Company Approach Customer 55

TOTAL 100

Table No1.7: occupation of customers

BUYING PROCESS

Customer
Approach
insurance
45% Company
55% Insurance
Company
Approach
Customer

INTERPRETATION:

As the evident from the chart out of 100 respondents 55% have approached by Insurance
companies and remaining 45% have approached to the Insurance companies by own.
From the above analysis and interpretation following facts and findings are comi
inti consideration:

As the people think that insurance is a tool to protect their family & a tax saving device.
They are aware of the fact & realizing its, importance. The company should try to expand
& build up its infrastructure because there is a large potential for insurance in India.
Company should come up with its branch in Chennai. With the objective and goals to
meet the demands & expectations of the public. Because the entrance of private players
will increase the competition and it would be a tough task to secure a good position in
market .
Since HDFC STANDARD LIFE INSURANCE LTD is leading with several
companies’ policies it should be easy for them to penetrate into the market and secure a
good position if they pay greater attention to the service part provided to their customer
and thereby forming a long and trusted relationship.
It is also find that HDFC Standard life insurance traditional plans are very useful for a
normal person and the children plan is one of the most popular product of the company.
As seen from the survey mostly the young generation is most preferring to buy the
insurance policy to save their future uncertainity.and about 52% of the respondents prefer
to buy life policy and 28% prefer both the policies that is life and non life policy.
And the first and last the about 42%of respondents out of 100 is prefer to buy the HDFC
Standard life insurance.
Following Is the Conclusion From The above Study:

Our exhaustive research in the field of Life Insurance threw up some intresting trends
which can be seen in the above analysis. A general impression that we gathered during
Data collection was the immense awareness and knowledge among people about
various companies and their insurance products. 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 impressioned by the marketing and adver tising
campaigns of insurance companies. A high penetration of print , radio and Television ad
campaigns over the years is beginning to have it’s impact now

According to findings, it is depicted that this is the sector, which has most business
opportunities perhaps in India. Insurance industry is one of the fastest sectors in India.
Insurance sector has been growing by 25% to 30% and it is expected to increase by 50%
in coming 5 years. After the opening up of the insurance sector, it has become much
competitive and insurance awareness among people has increased. Only 19% of the total
sample knows about more than 8 insurance companies. They don’t know about the new
entrants in the insurance industry. So private companies should use different channels to
establish them and ensure their presence in the minds of customers

Another heartning trend was in terms of people viewing insurance as a tax saving and
investment instrument as much as a protective one. A very high number of
respondants have opted for insurance for such purposes and it shows how insurance
companies ahve been successful to attract public money in recent times.

Life insurance service sector is highly growing. HDFC Standard Life Insurance is the
private insurance organization which is developing and growing at fast rate. It is renowned
for transparency and high corporate governance standard
The following is the limitation of study :

The research is confined to a certain parts of INDIA and does not necessarily
shows a pattern applicable to all of Country Some respondents were reluctant to divulge
personal information which can affect the validity of all responses.

. In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered in order to assimilate
the findings.

The opinion expressed by the respondents may be biased. The attitude of the research
might be biased. Another limitation is that there is lack of time. If more time is given then
studies will be more effective.
Following are the suggestion and recommendation for the HDFC Standard Life
Insurance

As the people think that insurance is a tool to protect their family & a tax saving device.
They are aware of the fact & realizing its, importance. The company should try to expand
& build up its infrastructure because there is a large potential for insurance in India.

Company should come up with its branch in Chennai. With the objective and goals to
meet the demands & expectations of the public. Because the entrance of private
players will increase the competition and it would be a tough task to secure a good
position in market Since HDFC Standard Life Insurance Company Ltd is leading
with several companies’

policies it should be easy for them to penetrate into the market and secure a good position
if they pay greater attention to the service part provided to their customer and thereby
forming a long and trusted relationship

Company must provide training to their agents and executives so that they can satisfy
customer’s doubts effectively. There must be good incentive schemes to be designed as
these can acts as good motivators for the agents. The scheme of permanent job placement
must be introduce for those advisors who have shown extra ordinary performance.
.
Increase in distribution sector. Provide proper training to workforce. The company should
more oriented towards rural market. Provide lower premium policies so that we could
target middle class people and generate good cash flow for futher growth. Changes in the
policies should be communicated to the customers at the earliest.
BIBLIOGRAPHY
ANNEXURE

1
 QUESTIONNAIRE

QUES 1- PERSONAL DETAILS

Name

Age

Salary

QUES 2 - ARE YOU EMPLOYED

YES 

NO 

QUES 3- DO YOU HAVE ANY INSURANCE POLICY

YES 

NO 

QUES 4 - WHICH INSURANCE POLICY DO YOU HAVE

YES 

NO 

QUES 5.- WHICHCO’S INSURANCE POLICY YOU PREFER THE MOST

LIC 

Icici Prudential life 

Reliance life insurance 

Max Newyork life 

Bajaj Allianz 

QUES 6 - WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE

COVER
COVER FUTURE UNCERTAINITY 

COVER FUTURE UNCERTAINITY 

FUTURE INVESTMENT 

ANY OTHER _________ (Specify

QUES 7- ARE YOU SATISFIED WITH THE POLICY

SATISFIED SAVING TOOL 

NOT SATISFIED 

NOT RESPONDING 

QUES 8- WHICH IS THE BEST FORM OF INVESTMENTS

FIXED ASSETS 

BANK DEPOSITS 

SECURITIES, i.e. Bonds, MFs 

SHARES 

INSURANCE 

QUES 9- WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs

A TRUSTED NAME 

FRIENDLY SERVICE & RESPONSIVENESS 

GOOD PLANS 

ACCESSIBILITY 

QUES 10- YOU’RE SUGGESTION (TO IMPROVE INSURANCE SECTOR)

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