REASONS OF LACK OF AWARENESS ABOUT REASONS OF LACK OF AWARENESS ABOUT INSURANCE AND COMPETITIVENESS AMONG THE INSURANCE AND COMPETITIVENESS AMONG THE

INSURANCE COMPANIESINSURANCE COMPANIES

Executive SummaryProject objectiveMethodology adopted in the projectFindings and AnalysisRecommendation

The research was conducted to study the level of awareness about insurance and market share of different life insurance companies.

The reasons of lack of awareness of insurance are ---------

1. High illiteracy rate

2. Lack of investing capacity of the people.

3. Lack of interest & knowledge in insurance.

4. Lack of proper guidance.

5. Casual approach towards life insurance.

Project objective  • To find out the cause of lack of awareness of insurance. • To find out the level of awareness of Insurance. • To find out the present market share of private companies & L.I.C. • To find out the level of awareness of the name of the Bajaj Allianz Life

Insurance Company Limited. • To find out the present market share of Bajaj Allianz .  

Methodology adopted in the project• DATA   SOURCE - Preliminary data gathering was done from the market apart from

valuable information obtain from Bajaj Alliance. Past records interviews conducted with their competitor to collect information. Investigation methodology is a way to reach a definite solution.

• DATA COLLECTION METHOD- A project unbiased questionnaire has been formulated to collect the primary data consisting of closed - end question and open - end question and secondary data has been collected directly from company, with the help of company yearly record and other report .

• PRIMARY SOURCE OF DATA- Primary source of data were collected mainly from structured undisguised Questionnaire’s in Kolkata.

• SECONDARY SOURCE OF DATA- Secondary source of data were mainly collected from the internal source like company past records .

• SAMPLE SIZE - It is needed to estimate or to decide the mean of the universe , after discussion with Manager it was decided that at least 200 sample from Kolkata to be taken to make the study effective

Findings & Analysis In the region of Kolkata awareness of insurance is much higher as compare to the whole India but much lower than the other big cities in the world. In Kolkata 51% people are aware about insurance OUT OF WHICH 33% people are insured which is lower than the other cities.

The main reason of lack of awareness is –High illiteracy rate Lack of investing capability of the people Lack of interest and knowledge in insurance Lack of proper guidanceTreating insurance as a tax saving instrument In Kolkata Life Insurance Corporation of India has captured maximum market share of 75% while other private insurance has captured 25% of market share.

Among the private insurance companies ICICI Prudential has acquired 6.9% market share while Baja Allianz acquired 3.9 % market share.  

COMPANIES NAME MARKET SHARE

L.I.C. 75%

ICICI Prudential 6.90%

Bajaj Allianz 3.40%

I.N.G.Vysya 0.70%

A.M.P. Sanmar 0.50%

S.B.I. Life 2.50%

Tata A.I.G 1.70%

H.D.F.C Standard 2.20%

Birla Sulife 2.90%

Aviva 1.30%

Kotak MahindraC 1.20%

Max Newyork 1.10%

MetLife 0.40%

Sahara Life 0.20%

MARKET SHARE OF DIFFERENT INSURANCE COMPANIES[Source:Secondary Data]

ANALYSIS

PERCENTAGE OF AWARENESS OF INSURANCE AMONG PEOPLE IN KOLKATA ANALYSIS

• Survey result shows that there are 51% of people aware of insurance in Kolkata which is much lower than other developing countries.

48

48.5

49

49.5

50

50.5

51

Series1 51 49

Aware of insurance

Unaware of insurance

48

48.5

49

49.5

50

50.5

51

Series1 51 49

Aware of insurance

Unaware of insurance

0

10

20

30

40

50

60

70

Insuredpersons

Non Insuredpersons

Insured persons

Non Insuredpersons

0

10

20

30

40

50

60

70

Insuredpersons

Non Insuredpersons

Insured persons

Non Insuredpersons

PERCENTAGE OF INSURED PERSION IN KOLKATA

ANALYSIS

• Survey result shows that there are 33% of people are insured in Kolkata which is 

much lower than other developing countries.

0

10

20

30

40

50

60

70

80

LIC Privet Insurancecompany

LIC

Privet Insurancecompany

0

10

20

30

40

50

60

70

80

LIC Privet Insurancecompany

LIC

Privet Insurancecompany

MARKET SHARE OF MARKET LEADERLIC & OTHER PRIVATE COMPANY IN KOLKATA

ANALYSISSurvey result shows that market share of market leader LIC is 75% where as other private companies is 25%in kolkata .

75

3.4

0.7 0.5

2.51.7 2.2

2.91.3 1.2 1.1 0.4 0.2

6.9

0

10

20

30

40

50

60

70

80

1

LIC

ICICI PRODENCIAL

BAJAJ ALLIANZ

ING VYSYA

AMP SANMAR

SBI LIFE

TATA AIG

HDFC STANDARD

BIRLA SUNLIFE

AVIVA

KOTAK MAHINDRA

MAX NEWYORK

MET LIFE

SAHARA

75

3.4

0.7 0.5

2.51.7 2.2

2.91.3 1.2 1.1 0.4 0.2

6.9

0

10

20

30

40

50

60

70

80

1

LIC

ICICI PRODENCIAL

BAJAJ ALLIANZ

ING VYSYA

AMP SANMAR

SBI LIFE

TATA AIG

HDFC STANDARD

BIRLA SUNLIFE

AVIVA

KOTAK MAHINDRA

MAX NEWYORK

MET LIFE

SAHARA

MARKET SHARE OF MARKET LEADER LIC & OTHER PRIVATE COMPANY IN KOLKATA

SUGGESTIONSSUGGESTIONS• The suggestions are based on the findings & analysis of the Market survey. • The suggestions are as follows: • Advertisement is very necessary to increase the awareness of insurance & to capture the market.

• Provide customer gift

• Provide the attractive scheme like premium holiday

• Reduce the minimum premium amount for rural & poor people to capture the rural market.

• Provide monthly base or weekly base or even if possible daily base premium payment option for poor people.

• To overcoming the competitors & present market situation, company should go for promotional activity like coupon, value added sponsorship events etc.

• Company should improve the quality of the service of the customer. • Company should market its products aggressively. • The company should employ the effective agents who are capable to convince people on his own

way.