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Project Report 1-Newest
Project Report 1-Newest
On
"A STUDY ON FACTORS AFFECTING CUSTOMERS DECISION
MAKING TOWARDS INVESTING IN INSURANCE POLICIES"
In Association with
COMPLETION CERTIFICATE
Project duration
27 Jun, 2022 to 27 Aug, 2022
The internship assessment fulfils the stated criteria and student findings are his original work.
We hereby certify his work satisfactory to the best of my knowledge with an aggregate
Grade 64
(Authorized Signatory)
Head HR
Agile Capital Services Pvt. Ltd.
I would like to avail this opportunity to pay my sincere gratitude and regards to
Dr Rajni Malhotra Dhingra, Director and Dr Vijay Kr Khurana, HOD, Business
Administration, Maharaja Agrasen Institute of Management Studies for providing
me such a wonderful opportunity to widen the horizons of my knowledge. I would
also like to express my heartfelt thanks to my Project Supervisor Dr Anitha G,
Assistant Professor for giving his/her support, guidance and encouragement
throughout the project work.
Last but not the least I would like to thank my parents, family and friends who have
directly or indirectly contributed in making this project a success.
Batch:……………………
Student Declaration
This is to certify that I, ISHANT BEHWAL have completed the Project
Agrasen Institute of Management Studies, Delhi. This is an original piece of work and
(Signature)
COUNTERSIGNED BY:
(Signature)
Name of Internal Faculty Supervisor:……………………
Designation…………………………………………..
Date:………………………………………………….
Executive Summary
Table of Contents
Annexures
lOMoAR cPSD| 20701600
By
ISHANT BEHWAL
Agile Capital Services Pvt. Ltd.
Table of Contents
ABSTRACT ...................................................................................................................................................1
INTRODUCTION TO NON-BANKING FINANCIAL COMPANIES .....................................................................1
INTRODUCTION TO AGILE CAPITAL SERVICES PVT. LTD. ............................................................................2
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.
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.
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
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. Nonbanking
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.
INTRODUCTION TO AGILE CAPITAL SERVICES PVT. LTD.
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.
• 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.
• 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.
STRENGTHS
STRENGTHS WEAKNESS
1.One1.One of the
of the oldest oldest
industries 1. Lack of worldwide
industries
2. A leader in economic growth coordination
2. A leader in economic 2. Old technology leads to
3. Financial
growthsupport after a crisis vulnerabilities
4. Digital bankingsupport
3. Financial convenience
after a 3. No access to rural areas.
crisis .
SWOT Analysis
SWOT Analysis
of BFSI Sector of
BFSI Sector
OPPORTUNITIES THREATSTHREATS
1. Move into rural regions. 1. The biggest threat of all:
Move into rural regions recessions. The biggest threat of all:
recessions
2. Offer more or lose customers.
2. Data breaches. Data breaches
Offer more or lose customers
3. Increasing Competition. Increasing
Competition
COMPETITIVE ANALYSIS
Cover Fox
My Insurance Clubs
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.
INTRODUCTION TO INSURANCE
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.
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.
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
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.
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:
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.
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
startups.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.
10
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.
11
12
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:
13
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.
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
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
14
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,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.
15
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.
Gathering personal details from the clients such as Income, Insurance Policy they are signed
with, etc. is difficult.
The reference section of the report will include a list of all of the sources that you used in
your report.
Book Citations
Format:
Last Name, Initials. (Year). Book title (edition). City, State/Country: Publisher.
Example:
Porter, M. E. (1998). Competitive strategy: Techniques for analyzing industries and
competitors (3rd ed.). New York, NY: Free Press.
Format:
Last Name, Initials., & Last Name, Initials. (Year). Article title. Journal Name,
Volume(Issue), Page Number(s). https://doi.org/DoiNumber
Example:
Andreff, W., & Staudohar, P. D. (2000). The evolving European model of professional
sports finance. Journal of Sports Economics, 1(3), 257–276.
https://doi.org./10.1177/152700250000100304
Website citations
Format:
Last Name, Initials. (Year, Month Day). Page title [OptionalType]. Retrieved from
http://webaddress
Example:
Worland, J. (2015, July 27). U.S. flood risk could be worse than we thought. Retrieved
from http://time.com/3973256/flooding-risk-coastal-cities