A DISSERTATION REPORT ON HDFC Standard Life Insurance Company Ltd ON CUSTOMER-BUYING BEHAVIOR WITH A FOCUS ON MARKET SEGMENTATION

Submitted by

Abhishek Singh

in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

in

MARKETING DOON BUSINESS SCHOOL, DEHARDUN

UTTRAKHAND TECHNICAL UNIVERSITY:: DEHRADUN

May 2012

UTTRAKHAND TECHNICAL UNIVERSITY

BONAFIDE CERTIFICATE
Certified that this project report HDFC Standard Life Insurance Company Ltd On CUSTOMER-BUYING BEHAVIOR WITH A FOCUS ON MARKET SEGMENTATION is the bonafide work of Abhishek Singh

who carried out the project work under my supervision.

<<Signature of the Head of the Department>> SIGNATURE

<<Signature of the Supervisor>> SIGNATURE

<<Name>> HEAD OF THE DEPARTMENT

<<Name>> SUPERVISOR

<<Academic Designation>> <<Department>> <<Full address of the Dept & College >> <<Department>> <<Full address of the Dept & College >>

INDEX

1-INTRODUCTION 2-LITERATURE REVIEW 3-RATIONALE OF THE STUDY 4-OBJECTIVE OF THE STUDY 5-RESEARCH METHODOLOGY 6-DATA ANALYSIS AND INTERPRETATION 7-FINDING AND RECOMMENDATION 8-CONCLUSION 9-BIBLIOGRAPHY

INTRODUCTION TO THE COMPANY HDFC Standard Life Insurance Company Ltd. Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited) - India's leading housing finance institution, and a Group Company of the Standard Life Plc, UK. The Company is one of leading private insurance companies, offering a range of individual and group insurance solutions, in India. Being a joint venture of top financial services groups, HDFC Standard Life has adequate financial expertise to manage long-term investments safely and resourcefully. 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: HDFC Standard Life Insurance Company Ltd. is one of Indias 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.), Indias leading housing finance institution and The Standard Life Assurance Company, a leading provider of financial services from the United Kingdom.

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 Youngster 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

Key features: Creating corporate agents through HDFC bank in India. Creating agents to provide total financial consultancy Introducing low cost group schemes for companies and NGOs.

HDFC Standard Life Insurance fund options- growth fund, balanced fund, defensive fund, secure fund, liquid fund. allocation to equities- 100% in growth fund, 30-60% in balanced fund, 15-30% in defensive fund, 0% in secure and liquid fund. minimum premium- 10,000. min/max age at entry- 18- 65 years. sum assured- annual premium*term/2, to 40 times the regular premium amount. fund management charges- .80%. fixed monthly expenses- 20 rs.

partial withdrawals allowed- above 6 partial withdrawals 250 rs. per withdrawal. charges on top ups- 2.5% for initial 2 years, after 1%. switching charges- 24 free switching and then 100 rs. per switching.

Company ProfileCOMPANY PROFILE OF HDFC STANDARD LIFE INSURANCE COMPANY LTD ABOUT HDFC STANDARD LIFE INSURANCE 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 STANDARD LIFE INSURANCE PARENTAGE HDFC Limited. 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 As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors. Rated AAA by CRISIL and ICRA for the 10th consecutive year Stable and experienced management

 High service standards Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development. Presented the Dream Home award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards.

Roles of life insurance: Life insurance as an investment: - Insurance products yield more than any other investment instruments and it also provides added incentives or bonus offered by insurance companies. Life insurance as risk cover: - Insurance is all about risk cover and protection of life. Insurance provides a unique sense of security that no other form of invest can provide.

Life insurance as tax planning: - Insurance serves as an excellent tax saving mechanism too.

CORPORATE OBJECTIVE 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'.

'The most obvious choice for all'.

Our Values

Values that we observe while we work:

.Integrity .Innovation .Customer centric .People Care One for all and all for ones .Teamwork .Joy and Simplicity

Accolades and Recognition

.Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in 2004.

.Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India number 1 personal finance magazine

Chapter 2: literature review

REVIEW OF LITERATURE
Some people distinguish the psychological aspect of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product or service. People engaged in branding seek to develop or align the expectations behind the brand experience (see also brand promise), creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. Careful brand management, supported by a cleverly crafted advertising campaign, can be highly successful in convincing consumers to pay remarkably high prices for products which are inherently extremely cheap to make. This concept, known as creating value, essentially consists of manipulating the projected image of the product so that that the consumer sees the product as being worth the amount that the advertiser wants him/her to see, rather than a more logical valuation that comprises an aggregate of the cost of raw materials, plus the cost of manufacture, plus the cost of distribution. Modern value-creation branding-and-advertising campaigns are highly successful at inducing consumers to pay,

Chapter 3: Rationale of the study SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry 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.

SIGNIFICANCE OF THE STUDY

This is a limited study which takes into consideration the responses of 100 people. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapiddly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends. SIGNIFICANE FOR THE RESEARCHER : To facilitate and provide all the useful informtaion of the studt, the company, the insurance industry and also provide marketing ways, methods of HDFC Standard Life insurance.

OBJECTIVES OF THE STUDY

Objective One 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 policy.

Objective Two
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.

CHAPTER 3 RESEARCH METHODOLOGY

HYPOTHESIS: In statistics, a null hypothesis (H0) is a concept which arises in the context of statistical hypothesis
testing.

A common convention is to use the symbol H0 to denote the null hypothesis. The null

hypothesis describes in a formal way some aspect of the statistical behavior of a set of data and this description is treated as valid unless the actual behavior of the data contradicts this assumption. Statistical hypothesis testing is used to make a decision about whether the data does contradict the null hypothesis: this is also called significance testing. A null hypothesis is never proven by such methods, as the absence of evidence against the null hypothesis does not establish the truth of the null hypothesis. Failing to reject H0 says that there is no strong reason to change any decisions or procedures predicated on its truth, but it also allows for the possibility of obtaining further data and then re-examining the same hypothesis. The alternative hypothesis (or maintained hypothesis or research hypothesis) and the null
hypothesis

are the two rival hypotheses whose likelihoods are compared by a statistical hypothesis

test Usually the alternative hypothesis is the possibility that an observed effect is genuine and the null hypothesis is the rival possibility that it has resulted from chance. The classical (or frequentist) approach is to calculate the probability that the observed effect (or one more extreme) will occur if the null hypothesis is true. If this value (sometimes called the "pvalue")

is small then the result is called statistically significant and the null hypothesis is rejected

in favor of the alternative hypothesis. If not, then the null hypothesis is not rejected. Incorrectly rejecting the null hypothesis is a Type I error; incorrectly failing to reject it is a Type II error.

RESEARCH METHODOLOGY TITLE: To determine customer-buying behavior with a focus on market segmentation for HDFC Standard Life Insurance. TITLE JUSTIFICATION: The above title is self explanatory. The study deals mainly with studying the buying pattern

in the insurance industry 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. SAMPLING METHODOLOGY Sampling Technique: 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 judgmental and convinent Sample size: Age INCOME Educational Qualification Have responsibility 20 years to 50 years More then 150000 Per annum At least High school Like children or wife

The sample size was restricted to only 100, which comprised of mainly peoples from different regions of Noida due to time constraints.

DATA COLLECTION:PRIMARY DATA New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the course of research, Consists of original information that comes from people and includes information gathered from surveys, focus groups, independent observations and test results. Data gathered by the researcher in the act of conducting research. This is contrasted to secondary data, which entails the use of data gathered by someone other than the researcher information that is obtained directly from first-hand sources by means of surveys, observation or experimentation. Primary data is collected by getting questionnaire filled by the respondents.

SECONDARY DATA Information that already exists somewhere, having been collected for another purpose. Sources include census reports, trade publications, and subscription services. There are two types of secondary data: internal and external secondary data. Information compiled inside or outside the organization for some purpose other than the current investigation Researching information, which has already been published? Market information compiled for purposes other than the current research effort; it can be internal data, such as existing sales-tracking information, or it can be research conducted by someone else, such as a market research company or the U.S. government.

Secondary source of data used consists of books and websites My proposal is to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research.

RESEARCH DESIGN NON-PROBABILITY EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customers perception and buying behavior, through this questionnaire.

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION ANALYSIS AND INTERPRETATION Table: 1 DATA ANALYSIS & INTERPRETATION
DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

COMPANYS NAME L.I.C. HDFC ICICI PRUDENTIAL SBI LIFE RELIANCE LIFE INSURANCE TOTAL

NO.OF RESPONDENT 78 2 10 7 3 100

SHARE (%) 78 2 10 7 3 100

SBI ICICI 7% 10% HDFC 2%

REL 3%

LIC 78%

INTERPRETATION 78% of the people contacted prefer LIC 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 Cover Future Uncertainty Tax Deductions Future Investment TOTAL

NO.OF RESPONDENTS 55 20 25 100

SHARE (%) 55 20 25 100

Future Investment 25% Cover Future Uncertainty 55% Tax Deductions 20%

INTERPRETATION 55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy. Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively

 DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS FEATURE NO.OF RESPONDENTS Money Back Guarantee Larger Risk Coverance Easy Access to Agents Low Premium Companys Reputation TOTAL 15 37 7 30 11 100 15 37 7 30 11 100 SHARE (%)

Companys Reputation, 11

Money Back Guarantee, 15

Low Premium, 30

Larger Risk Coverance, 37

Easy Access to Agents, 7

INTERPRETATION Majority of the respondent (37%) found Larger risk coverance as the most attracted feature of the all.

 DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS POLICY TYPE NO. OF RESPONDENTS LIFE POLICY NON LIFE POLICY BOTH 75 25 45 75 25 45 SHARE (%)

BOTH 31% LIFE POLICY 52%

NON LIFE POLICY 17%

INTERPRETATION 75% of the respondents have Life Insurance Policy while 45% have both. (The % is calculated out of 280 positive response)

 DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE RESPONSE NO. OF RESPONDENTS A saving tool A tax saving device A tool to protect your family 81 74 100 81% 74% 100% SHARE (%)

A tool to protect your family 39%

A saving tool 32%

A tax saving device 29%

INTERPRETATION 81% of the respondents have perception of Insurance being a saving tool. And 74% of the respondents have perception of Insurance being a tax saving device. But 100% of the respondents are with the view that Insurance is a tool to protect your family.

 DATA SHOWS PEOPLES HAVING INSURANCE RESPONSE NO. OF RESPONDENTS Yes No 70 30 70% 30% SHARE (%)

NO 30%

YES 70%

INTERPRETATION Of the sample size of 400 surveyed respondents 70% of the respondents are having Insurance policy. 30% of the respondents are either not having any Insurance policy at present or their policy is already matured. And at present 100% of the respondents are with the view that Insurance is a tool to protect your family.

 DATA SHOWS BUYING PROCESS OF THE PEOPLE BUYING PROCESS NO. OF RESPONDENTS Customer approached Insurance company/Agent Company/agent approached customer Total 100 100% 55 555 45 45% SHARE (%)

Company/agent approached customer 56%

Customer approached Insurance company/Agent 44%

INTERPRETATION 44.5% of the respondents approached the Insurance Company / Agent. Whereas, 55.5% of the respondents were approached by the Company /Agent.

 DATA SHOWS REASONS BEHIND FOR INSURANCE RESPONSE NO. OF RESPONDENTS Tax saving Saving / Investment Family protection 80 80 100 80% 80.% 100% SHARE (%)

Family protection 38%

Tax saving 31%

Saving / Investment 31%

INTERPRETATION 80.71% of the Respondents opted for Insurance for tax saving benefits. 80.71% of the Respondents opted for saving / Investments. But all of them, i.e. 100% of the respondents have opted for insurance for their family protection.

 DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY RESPONSE NO. OF RESPONDENTS Satisfied Not satisfied Not Responded Total 60 40 0 100 60% 40% 0.0% 100% SHARE (%)

Not Responded 0%

Not satisfied 40%

Satisfied 60%

INTERPRETATION 60% of the respondents are more or less satisfied with their existing policy. 40% of the respondents are not satisfied with their existing policy. In this case all of those who have taken a policy have responded.

 DATA SHOWS SATISFACTION OF +RESPONDENTS WITH RESPECT TO SERVICE AGENT RESPONSE NO. OF RESPONDENTS Satisfied Not satisfied Not Responded Total 45 55 0 100 45% 55% 0.0% 100% SHARE (%)

Not Responded 0%

Satisfied 45% Not satisfied 55%

INTERPRETATION 45% of the respondents are satisfied with their existing service agent. 55% of the respondents are not satisfied with their existing insurance agent. All of those who have taken a policy have responded.

 DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX RESPONSE NO. OF RESPONDENTS Paying tax Not paying tax Total 100 100 100% 0% 100% SHARE (%)

Not paying tax 0%

Paying tax 100%

INTERPRETATION Of the sample size of 400 respondents, all the respondents are paying tax

 DATA SHOWS RESPONDENTS INVESTMENTS FOR TAX SAVING INVESTMENTS NO. OF RESPONDENTS LIC NSC Bonds PPF PF EPF 51 33 32 25 21 11 51% 33% 32% 25% 21% 11% SHARE (%)

PF 12%

EPF 6% LIC 30%

PPF 14%

Bonds 19%

NSC 19%

INTERPRETATION 51% of the respondents save their tax by investing in LIC, which is the highest among all Investment. This shows that most people for getting taxes benefits invest in LIC. 33.25% of the respondents do their tax saving by investing in NSC. 32.25% of the respondents to their tax saving by investing in bonds.

 DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR SECURING THEIR FUTURE NO. OF RESPONDENTS Fixed Assets 75 75% SHARE (%)

Bank deposits Jewellery Securities i.e. bonds, MFs Shares Insurance

11 25 40. 10 70

11% 25% 40% 10% 70%

Insurance 30%

Fixed Assets 33%

Securiti es i.e. bonds, Shares MFs 4% 17%

Bank deposits Jewellery 5% 11%

INTERPRETATION 75.25% of the respondents as with the view that Fixed Assets is the best form of investment for securing their future. 70.5% of the respondents are with the perception that Insurance is the best form of investment for securing their future, which is one of the highest and this shows that insurance is an important key for securing your future.

 DATA SHOWS WHAT PEOPLE INTENT TO GAIN FROM THEIR INVESTMENT RESPONSE NO. OF RESPONDENTS Saving & Returns Security Tax benefits 100 90 71. 100% 90% 71.% SHARE (%)

Tax benefits 27%

Saving & Returns 38%

Security 35%

INTERPRETATION 100% of the respondents intent to gain saving and returns from their investment. 90% of the respondents intent to gain security from their investments. Whereas, 71.75% of the respondents intent to gain tax benefits from their investments.

 DATA GIVES PEOPLES PERCEPTION ON APPROPRIATE AGE FOR BUYING INSURANCE RESPONSE NO. OF RESPONDENTS After 25 years After 35 years After 45 years Anytime 29 10 0 60 29% 10% 0% 60% SHARE (%)

After 25 years 29%

Anytime 61%

After 35 years 10% After 45 years 0%

INTERPRETATION 29% of the respondents are with the view that insurance should be bought after the age of 25 years. 10.5% of the respondents are with the view that insurance should be buyed after the age of 35 years. Whereas, 60.5% of the respondents are with the view that buying of insurance do not have any thing to do with age i.e. there is no age limitations. It can be purchased any time according to the need.

 DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES RESPONSE NO. OF RESPONDENTS Rigid plans Non user friendly Unsatisfactory services Non Aggressive Satisfactory Good Very good 67 29 26 35 24 10 0 67% 29% 26% 35% 24% 10% 0% SHARE (%)

Satisfactory 13%

Good Very good 5% 0%

Non Aggressive 18%

Rigid plans 35%

Unsatisfactory services 14%

Non user friendly 15%

INTERPRETATION

67% of the respondents have the opinion that Indian Insurance Companies have Rigid plans. 29.5% feel that Indian Insurance companies are Non-user friendly. 26.5% feel that services of Indian Insurance companies are Unsatisfactory. 35.75% of the respondents are with the view that Indian Insurance companies are Nonaggressive. 24% of the respondents feel that products and services of Indian Insurance companies is Satisfactory. Whereas only 10.25% feel that it is Good enough. And according to the data, no single person has felt that it is very good.

 DATA SHOWS WHAT PEOPLE WOULD LOOK FOR IN AN INSURANCE COMPANY RESPONSE NO. OF RESPONDENT S A trusted name Friendly service & 82 71 82% 71% SHARE (%)

responsiveness Good plans Accessibility 81 49 81% 49%

Accessibilit y 17% A trusted name 29% Good plans 29%

Friendly service & responsive ness 25%

INTERPRETATION 82% customers look for a Trusted name in a company for insurance. 81.5% customers look for a good plan in a company for insurance. Friendly service & responsiveness and Accessibility are also important factors looked by customers in a company.

 DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTS RESPONSE NO. OF RESPONDENTS Planning Not planning Total 87 13 100 87% 13% 100% SHARE (%)

Not planning 13%

Planning 87%

INTERPRETATION Only 12.5% of the customers contacted are not planning for new investments presently. Whereas, 87.5% of the customers are still planning for new investments this can be a great potential for Reliance Life Insurance to take them on their favor

 DATA SHOWS PEOPLE INTERESTED IN GOING FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS RESPONSE NO. OF RESPONDENTS Yes No Uncertain Total 43 44 13 100 43% 44% 13% 100% SHARE (%)

Uncertain 13%

Yes 43%

No 44%

INTERPRETATION

The interested customers i.e. 43% are ready to go for insurance even away from a city if
services and products are worthwhile, which again is a good prospect (potential) for

Reliance Life Insurance to take them on their favor.

CHAPTER 5: FINDINGS AND RECOMMENDATIONS

FINDINGS AND RECOMMENDATIONS: 1.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. 2.Company should come up with its branch in Chennai. With the objective and goals to meet the demands & expectations of the public. 3.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. 4.As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers. RECOMMENDATIONS 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. As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers. 43% of the customer is even ready to go for insurance if a service provider away from their home is providing it. But intend they should provide good products and services. The company should try to convince these customers and get them in its favor. We also find the actual fact that in insurances sector is ever-growing sector where we can get high income in less time and less work . We can also say on the basis of this insurance that its a highly future oriented area but it need more hard work to take it ahead. 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. Insurance companies have forgotten their traditional products. Companies are totally concentrating on selling ULIP products. Now insurance companies are selling their products as an investment product not as life insurance products.

CONCLUSION:
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 advertising campaigns of insurance companies. A high penetration of print , radio and Television ad campaigns over the years is beginning to have its impact now.

BIBLIOGRAPHY
1. BOOKS/MAGAZINES REFFERED:

STUDY GUIDE- PRINCILES & PRACTICES OF LIFE / GENERALINSURANCE, by AIMA. Books published by INSURANCE INSTITUTE OF INDIA LIFE-INSURANCE, by Mc GILL INSURANCEWATCH. MONEYOUTLOOK. 2. WEBSITES REFFERED:

WWW.CIFAINSURANCE.COM WWW.MONEYOUTLOOK.COM WWW.INSURANCE.IND.COM WWW.HDFCINURANCE.COM WWW.BUSINESS-STANDARD.COm 3. REPORTS/ARTICLES REFFERED:

REPORT: ISSUES & CHALLENGES FACING THE INSURANCE INDUSTRY. Dec2007. BRIEF PROFILE OF LIC, INDIADec 2008. REPORT: COPING WITH COMPETITIONJan2008