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1.1 GENERAL INTRODUCTION ABOUT THE SECTOR
Insurance is commerce. Insurance product is a financial contract entered into by parties with
a define consensus of mind. Insurance, in its purest from, is a risk management tool, a
security blanket. It provides financial protection against unexpected events. When we buy
insurance, effectively a portion of risk is transferred to the insurer. This protection comes at a
price, but its a function of what we might otherwise find ourselves burdened with. Whatever
stage of life we are at, chances are, and we need insurance.
Insurance in India started without any regulation in the Nineteenth Century. It was a typical
story of a colonial era: a few British insurance companies dominating the market servingmostly large urban centers. After the independence, it took a dramatic turn. Insurance was
nationalized. First, the life insurance companies were nationalized in 1956, and then the
general insurance business was nationalized in 1972. Only in 1999 private insurance
companies have been allowed back into the business of insurance with a maximum of 26% of
foreign holding. We study the collective experience of the other countries in Asia already
deregulated their markets and have allowed foreign companies to participate. If the
experience of the other countries is any guide, the dominance of the Life Insurance
Corporation and the General Insurance Corporation is not going to disappear any time soon.
Insurance can be define as a contract by which insurance agrees to pay the insured a
compensation for specified damage loss or injury suffered in exchange for periodic
payment called premium
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1.2INDUSTRY PROFILE
a) Origin and Development of the Industry
Life 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 collectstatistical 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, 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 industry
fairness, solidity, growth and reach.
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 thelife 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.
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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.
General Insurance
The General Insurance industry in India dates back to the Industrial Revolution and the
subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the
British brought General Insurance to India, and a similar path was followed in the
development of this industry. A number of private companies were in existence for years and
years until, in 1971, the Indian Government decided that the public interest would be served
by nationalizing the industry, merging all the 107 companies into four companies, depending
on the sort of business transacted.
These were the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the
New India Assurance Company Ltd., and the United India Insurance Company Ltd. located
in Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance
Corporation (GIC) was set up in 1972 as a holding company, having these four companies
as its subsidiaries.
Some of the important milestones in general insurance business in India are:1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general
insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company
Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
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INDUSTRY REFORMS
In 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an
autonomous body to regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April, 2000. The key objectives of the IRDA include
promotion of competition so as to enhance customer satisfaction through increased consumer
choice and lower premiums, while ensuring the financial security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has
the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from
2000 onwards framed various regulations ranging from registration of companies for
carrying on insurance business to protection of policyholders interests.
Role of IRDA:
Protecting the interests of policyholders.
Establishing guidelines for the operations of insurers, and brokers.
Specifying the code of conduct, qualifications, and training for insurance intermediariesand agents.
Promoting efficiency in the conduct of insurance business.
Regulating the investment of funds by insurance companies.
Specifying the percentage of business to be written by insurers in rural sectors.
Handling disputes between insurers and insurance intermediaries.
b) Growth and Present Status of The Industry
India's insurance sector is zooming to show an unprecedented progressive growth of more
than 200% by the period of 2009-09. The Associated Chambers of Commerce and Industry
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of India has clocked out the fact that during this period, private players in the industry will
see a growth of about 140 per cent, owing to the adoption of the aggressive marketing
techniques in comparison of the growth rate of 35 per cent-40 per cent achieved by the state
owned insurance companies. The chamber is expected to poise the business of insurance to
reach at Rs.2000 billions in coming 2 years from the present level of Rs. 500 billion. With
the result of adoption of the intense marketing strategies by the private players, the
declination has been witnessed in respect of the share of the state owned insurance
companies captured in the market. The market share fallout has been noticed in context of
such companies like GIC, LIC, which have come down to nearly 70 per cent in the past 4-5
years from the 97 per cent. The experts have fore casted the more severe competition in the
insurance sector likely to be occurred in the near future. Till recently, insurance sector was
majority driven by the government sector players but now many private sector multinationalplayers have come into the picture. Like HDFC, ICICI, Kotak, Mahindra and Birla Sun life.
Insurance sector has been characterized as the booming sector of the Indian arena, which has
shown the growth rate of more than 15 per cent to 20 per cent. Insurance in India is put under
the federal subject and is governed by the Insurance Act, 1938, the Life Insurance
Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972,
Insurance Regulatory and Development Authority (IRDA) Act, 1999 and by various other
acts.
The roots of the insurance sector can be tracked down in the year 1818 in the formation of
the life insurance Corporation in Calcutta. The idea was to provide means to the English
widows. During that time different premiums were charged for the Indian and English people
lives. In 1870, the Bombay Mutual Life Insurance Society started its insurance business and
it charged the same premium from all people irrespective of whether they were Indian or
English. In the year 1912, insurance regulation was started due to the passing of the Life
Insurance Companies Act and the Provident Fund Act. By the year of 1938, in India there
were total 176 insurance companies. In the year of 1938, with the passing of Insurance Act,
1938 there was the introduction of the first comprehensive legislation. It was passed with the
aim of providing the strict state control over the insurance business. After the independence,
insurance sector in India grew at a much higher pace. In the year 1956, Indian government
combined together 245 Indian and foreign insurers and the provident societies under the
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name of nationalized Monopoly Corporation. It was the same period when the life insurance
corporation (LIC) came into the existence by the passing of the Act of Parliament and
through the contribution of capital around Rs. 5 crore. Till 1972, private sector has enjoyed
somehow monopoly in the general insurance sector. There were around 107 private
companies in the field. With the effect of the General Insurance Business (Nationalization)
Act, 1972, the general insurance business got nationalized in the India. Due to the
amalgamation of 107 private insurance companies, 4 new companies, as the subsidiaries of
the General Insurance Company, came into effect- National Insurance Company, New India
Assurance Company, Oriental Insurance Company and United India Insurance Company.
SEVEN Ps OF INSURANCE SECTOR
7 Ps Of Insurance Sector
Product PricingPromotions
Place
People Process
Physical
Evidence
Wherever there is uncertainty there is risk. We do not have any control over uncertaintieswhich involves financial losses. The risks may be certain events like death, pension,
retirement or uncertain events like theft, fire, accident, etc.
Insurance is a financial service for collecting the savings of the public and providing them
with risk coverage. The main function of Insurance is to provide protection against the
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possible chances of generating losses. It eliminates worries and miseries of losses by
destruction of property and death. It also provides capital to the society as the funds
accumulated were invested in productive heads. Insurance comes under the service sector
and while marketing this service, due care is to be taken in quality product and customer
satisfaction. While marketing the services, it is also pertinent that they think about the
innovative promotional measures. It is not sufficient that you perform well but it is also
important that you let others know about the quality of your positive contributions. The
creativity in the promotional measures is the need of the hour. The advertisement, public
relations, word of mouth communication needs due care and personal selling requires
intensive care.
INSURANCE MARKETING: The term Insurance Marketing refers to the marketing of
Insurance services with the aim to create customer and generate profit through customersatisfaction. The Insurance Marketing focuses on the formulation of an ideal mix for
Insurance business so that the Insurance organisation survives and thrives in the right
perspective.
MARKETING --MIX FOR INSURANCE COMPANIES: The marketing mix is the
combination of marketing activities that an organization engages in so as to best meet the
needs of its targeted market. The Insurance business deals in selling services and therefore
due weight-age in the formation of marketing mix for the Insurance business is needed. The
marketing mix includes sub-mixes of the 7 P's of marketing i.e. the product, its price, place,
promotion, people, process & physical attraction.
The above mentioned 7 P's can be used for marketing of Insurance products, in the following
manner:
Product :
A product means what we produce. If we produce goods, it means tangible product and when
we produce or generate services, it means intangible service product. A product is both what
a seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and
therefore services are their product.
In India, the Life Insurance Corporation of India (LIC) and the General Insurance
Corporation (GIC) are the two leading companies offering insurance services to the users.
Apart from offering life insurance policies, they also offer underwriting and consulting
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services. When a person or an organization buys an Insurance policy from the insurance
company, he not only buys a policy, but along with it the assistance and advice of the agent,
the prestige of the insurance company and the facilities of claims and compensation. It is
natural that the users expect a reasonable return for their investment and the insurance
companies want to maximize their profitability. Hence, while deciding the product portfolio
or the product-mix, the services or the schemes should be motivational. The Group Insurance
scheme is required to be promoted, the Crop Insurance is required to be expanded and the
new schemes and policies for the villagers or the rural population are to be included. He
introduction of Rural Career Agents Scheme has been found instrumental in inducing the
rural prospects but the process is at infant stage and requires more professional excellence.
The policy makers are required to activate the efforts. It would be prudent that the LIC is
allowed to pursue a policy of direct investment for rural development. Investment inGovernment securities should be stopped and the investment should be channelized in private
sector for maximizing profits. In short, the formulation of product-mix should be in the face
of innovative product strategy.
Pricing :
In the insurance business the pricing decisions are concerned with:
The premium charged against the policies,
Interest charged for defaulting the payment of premium and credit facility, and
Commission charged for underwriting and consultancy activities. With a view of
influencing the target market or prospects the formulation of pricing strategy
becomes significant. In a developing country like India where the disposable income in
the hands of prospects is low, the pricing decision also governs the transformation of
potential policyholders into actual policyholders. The strategies may be high or low
pricing keeping in view the level or standard of customers or the policyholders. The
pricing in insurance is in the form of premium rates. The three main factors used for
determining the premium rates under a life insurance plan are mortality, expense and
interest. The premium rates are revised if there are any significant changes in any of these
factors.
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Mortality (deaths in a particular area): When deciding upon the pricing strategy the
average rate of mortality is one of the main considerations. In a country like South Africa
the threat to life is very important as it is played by host of diseases.
Expenses: The cost of processing, commission to agents, reinsurance companies as well
as registration are all incorporated into the cost of installments and premium sum and
forms the integral part of the pricing strategy
Interest: The rate of interest is one of the major factors which determines people's
willingness to invest in insurance. People would not be willing to put their funds to invest
in insurance business if the interest rates provided by the banks or other financial
instruments are much greater than the perceived returns from the insurance premiums.
Place :
This component of the marketing mix is related to two important facets --
Managing the insurance personnel, and
Locating a branch. The management of agents and insurance personnel is found
significant with the viewpoint of maintaining the norms for offering the services. This is
also to process the services to the end user in such a way that a gap between the services-
promised and services -- offered is bridged over. In a majority of the service generating
organizations, such a gap is found existent which has been instrumental in making worse
the image problem. The transformation of potential policyholders to the actual
policyholders is a difficult task that depends upon the professional excellence of the
personnel. The agents and the rural career agents acting as a link, lack professionalism.
The front-line staff and the branch managers also are found not assigning due weight-age
to the degeneration process. The insurance personnel if not managed properly would
make all efforts insensitive. Even if the policy makers make provision for the quality
upgrading the promised services hardly reach to the end users.
Promotion :
The insurance services depend on effective promotional measures. In a country like India, the
rate of illiteracy is very high and the rural economy has dominance in the national economy.
It is essential to have both personal and impersonal promotion strategies. In promoting
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insurance business, the agents and the rural career agents play an important role. Due
attention should be given in selecting the promotional tools for agents and rural career agents
and even for the branch managers and front line staff. They also have to be given proper
training in order to create impulse buying. Advertising and Publicity, organisation of
conferences and seminars, incentive to policyholders are impersonal communication.
Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and
publicity drive through the mobile publicity van units would be effective in creating the
impulse buying and the rural prospects would be easily transformed into actual
policyholders.
People :
Understanding the customer better allows to design appropriate products. Being a serviceindustry which involves a high level of people interaction, it is very important to use this
resource efficiently in order to satisfy customers. Training, development and strong
relationships with intermediaries are the key areas to be kept under consideration. Training
the employees, use of IT for efficiency, both at the staff and agent level, is one of the
important areas to look into.
Process :
The process should be customer friendly in insurance industry. The speed and accuracy of
payment is of great importance. The processing method should be easy and convenient to the
customers. Installment schemes should be streamlined to cater to the ever growing demands
of the customers. IT & Data Warehousing will smoothen the process flow. IT will help in
servicing large no. of customers efficiently and bring down overheads. Technology can either
complement or supplement the channels of distribution cost effectively. It can also help to
improve customer service levels. The use of data warehousing management and mining will
help to find out the profitability and potential of various customers product segments.
Physical Distribution:
Distribution is a key determinant of success for all insurance companies. Today, the
nationalized insurers have a large reach and presence in India. Building a distribution
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network is very expensive and time consuming. If the insurers are willing to take advantage
of India's large population and reach a profitable mass of customers, then new distribution
avenues and alliances will be necessary. Initially insurance was looked upon as a complex
product with a high advice and service component. Buyers prefer a face-to-face interaction
and they place a high premium on brand names and reliability. As the awareness increases,
the product becomes simpler and they become off-the-shelf commodity products. For
example, in UK, retailer like Marks & Spencer sells insurance products. The financial
services industries have successfully used remote distribution channels such as telephone or
internet so as to reach more customers, avoid intermediaries, bring down overheads and
increase profitability. A good example is UK insurer Direct Line. It relied on telephone sales
and low pricing. Today, it is one of the largest motor insurance operators. Technology will
not replace a distribution network though it will offer advantages like better customerservice. Finance companies and banks can emerge as an attractive distribution channel for
insurance in India. In Netherlands, financial services firms provide an entire range of
products including bank accounts, motor, home and life insurance and pensions.
c) Future of the Industry
Before looking insurance future prospectus of the insurance industry, we must take a look
into its past history. The independent India started with private sector insurance companies.
These companies were nationalized by the Union Govt. in 1965 to form a monopoly known
as Life Insurance Corporation of India has being under public sector for over four decades till
the govt. opened the insurance sector for private companies in 2000. When the insurance
Industry was nationalized, it was consider a land mark and a milestone on the way to the
socialistic pattern of society that India had chosen after independence.
INDIAN COMPANIES WITH FOREIGN PARTNERSHIP
Indian Partner International Partner
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Tata American Int. Group, US
CK Birla Group Zurich Insurance, Switzerland
ICICI Prudential, UK
Sundaram Finance Winterthur Insurance, SwitzerlandHindustan Times Commercial Union, UK
Ranbaxy Cigna, US
HDFC Standard Life, UK
Bombay Dyeing General Accident, UK
DCM Shriram Royal Sun Alliance, UK
Dabur Group Allstate, US
Kotak Mahindra Chubb, US
Godrej J Rothschild, UK
20th Century Finance Canada Life
M A Chidambaram Met Life
Vysya Bank ING
Insensitivity to the needs of the market, traditions insurance adoption of modern practices to
upgrades technical skills coupled with a scene of lethargy which probable led to a feeling
amongst that the insurance industry was not fully responsive to customers needs. The life
insurance corporation of India has not succeeded in extending the insurance cover to all the
needy people of the country due to various reasons. LIC could not insure very fast growth of
insurance in India even in a long period extending over four decades. Hence the penetration
of insurance is very low insurance India. The following indicates as explained and support
this contention:
While per capita insurance premium in developed country is high, it is quite lowinsurance India. For instance, per capital insurance premium insurance India insurance
1999 was only $8 while it was $4800 for Japan and $1000 for Republic of Korea, $887
for Singapore, $823 for Hong-Kong and $144 for Malaysia.
Similarly the penetration of insurance is also assessed by the ratio of insurance premium
to gross domestic products in a country. While insurance premiums as a percentage of
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GDP was 14% in Japan 13% for South-Africa, 12% for Korea, 9% for UK and France. It
was only around 2% insurance India insurance 1999. Hence the 34 th penetration of
insurance is low here.
The penetration of insurance is also assessed by a ratio of insurance premium to gross
domestic savings (GDS). While insurance premium as a percentage of GDS was 52% for
UK, 35% for other European and American countries, it was only 9% insurance Indian
Insurance 1999. hence even this index indicates low level of penetration of insurance
insurance India.
The share of India insurance the world market insurance terms of gross insurance
premium is again very small for instance while Japan 31%, European union 25%, South
Africa 2.3%, Canada 1.7% share of global insurance premium to is only 0.3% for India.
SWOT ANALYSIS OF INSURANCE COMPANIES
STRENGTH WEAKNESS
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INTRODUCTION
Patents
Insurance having currently good market
Premiums rates are increasing and so on
commissions
It brings new dimensions to insurance
sector
Variety of products increasing
Insurance companies are often slow to
respond to changing needs
Buying insurance policy is a
cumbersome process
Product or service similar to
competitors
OPPORTUNITY THREATS
Technology is improving, paper less
transactions are available
busy life, customers need flexible and
customizable life
like mobile banking mobile insurance
can be a hit
weather cycles
new substitute product emerging
increasing expenses and lower profit
margins will hit hard on the smaller
agencies and insurance companies
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HDFCSLIC stands for Housing Development Finance corporation standard life insurance
company. It is incorporated in 1977 as a public limited company with the specialization
in provision of housing finance to individuals cooperative societies and the corporate
sector. One significant matter about the HDFC is that it is first private sector retail
housing finance company and it is listed on both BSE and NSE. Its market capitalization
in June 2002.
Standard life insurance is founded in 1825. Standard life was reincorporated as a mutual
assurance company in 1925. Its largest mutual life insurance company in Europe. For the
joint venture between HDFC and SLIC, the discussion commenced in January 1995 and
the agreement signed in October 1995. Further joint venture agreement renewed in
October 1998. In January 2000 the life insurance project team established in Mumbai. At
last the company officially incorporated in 14th August 2000. It is the matter of greathappiness for HDFCSLIC is that it is the first private sector life insurance company to be
granted a certificate of registration in 23rd October, 2000. Today 75% shareholding in the
hand of HDFC and Standard life has 25% shareholding in this joint venture.
OUR PARENTAGE
HDFC LimitedHDFC Limited, India's premier housing finance institution has assisted more than 3.8 million
families own a home, since its inception in 1977 across 2400 cities and towns through its
network of over 289 offices. It has international offices in Dubai, London and Singapore with
service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRI's and PIO's to own
a home back in India. As of March 2011, the total asset size has crossed more than Rs. 1,
32,727crores including the mortgage loan assets of more than Rs.1, 17,126 crores. The
corporation has a deposit base of over Rs. 24,625 crores, earning the trust of nearly one
million depositors. Customer Service and satisfaction has been the mainstay of the
organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition
for the service to the sector has come from several national and international entities
including the World Bank that has lauded HDFC as a model housing finance company for
the developing countries. HDFC has undertaken a lot of consultancies abroad assisting
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different countries including Egypt, Maldives, Mauritius, and Bangladesh in the setting up of
housing finance companies.
STANDARD LIFE PLC.
Established in 1825, Standard Life Plc. is a leading provider of long term savings and
investments to around 6 million customers worldwide. A Headquartered in Edinburgh,
Standard Life has around 9,000 employees across the UK, Canada, Ireland, Germany,
Austria, India, USA, Hong Kong and mainland China. The Standard Life group includes
savings and investments businesses, which operate across its UK, Canadian and European
markets; corporate pensions and benefits businesses in the UK and Canada; Standard Life
Investments, a global investment manager, which manages assets of over 157bn globally;
and its Chinese and Indian Joint Venture businesses. A At the end of April 2011 the Grouphad total assets under administration of 198.4bn. Standard Life plc is listed on the London
Stock Exchange and has approximately 1.5 million individual shareholders in over 50
countries around the world.
VISION STATEMENT
'The most successful and admired life insurance company, which means that we are themost 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'.
MISSION STATEMENT
To reach out an influence our target customer so as to provide them. World class
Competitive insurance solution .HDFCSLIC focuses long term strategy".
VALUES
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Values that we observe while we work:
Integrity
Innovation
Customer centric
People Care "One for all and all for one"
Team work
Joy and Simplicity
AWARDS & ACCOLADES
RECEIVED 2008 CIO BOLD 100 AND CIO SECURITY AWARDS
HDFC Standard Life has received the 2008 CIO Bold 100
Award. This annual award recognizes organizations that
exemplify the highest level of operational and strategic
excellence in information technology. This year's award
theme, 'The Bold 100,' recognized those executives and
organizations that embraced great risk for the sake of great reward.HDFC Standard Life has also been one of the five recipients of the Special 2008 CIO
Security Award aimed at CIOs, whose pioneering implementations have taken their
enterprise security to the next level. This award category identifies innovative andgroundbreaking deployment of technologies aimed at creating a secure business
infrastructure.
The company received the 2008 CIO Bold Award for its
mobile workforce portal and the CIO Security Award for its
initiatives for a secure computing environment, including
identity management.
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RECEIVED PCQUEST BEST IT IMPLEMENTATION AWARD 2008
HDFC Standard Life received the PCQuest Best IT Implementation Award 2008 for
Consultant Corner, the applications for its financial consultants, providing centralized control
over a vast geographical spread for key business units such as inventory, training, licensing,
etc.
HDFC Standard Life has won the PCQuest Best IT Implementation Award for two years
consequently. Last year, the company received the award for Wonders, its path-breaking
implementation of an enterprise-wide workflow system.
SILVER ABBY AT GOOFIEST 2008
HDFC Standard Life's radio spot for Pension Plans won a Silver Abby in the radio writing
craft category at the Goofiest 2008 organised by the Advertising Agencies Association ofIndia (AAAI). The radio commercial 'Pata nahin chala' touched several changes in life in the
blink of an eye through an old manna perspective. The objective was drive awareness and ask
people to invest in a pension plan to live life to the fullest even after retirement, without
compromising on one's self-respect
UNIT LINKED SAVINGS PLAN TOPS MINT BEST TV ADS SURVEY
The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading
private insurance companies in India, has topped Mint's Top Television Advertisementsurvey conducted, for February 2008. HDFC Standard Life's Unit Linked Savings Plan
advertisement was ranked 4th in terms of a combined score of ad awareness and brand recall
and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, and claim).
The respondents were between 18 and 40 years. Mint exclusive report, 'New voices in a
makeover' outlines the survey in detail.
DEEPAK M SATWALEKAR AWARDED QIMPRO GOLD STANDARD AWARD
2007
Mr Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received the
QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro
Awards function. The award celebrates excellence in individual performance and highlights
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the quality achievements of extraordinary individuals in an era of global competition and
expectations.
SAR UTHA KE JIYO AMONG INDIA'S 60 GLORIOUS ADVERTISING MOMENTS
HDFC Standard Life's advertising slogan honoured as one of '60 Glorious Advertising &Marketing Moments' over the last 60 years in India,' by 4Ps Business and Marketing
magazine. The magazine said that HDFC Standard Life is one of the first private insurers to
break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its
brand proposition. This was then, followed by others including ICCI Prudential, thus giving
HDFC Standard Life the credit of bringing up one such glorious advertising and marketing
moment in the last 60 years.
RECEIVED CIO 'THE INGENIOUS 100 2009' AWARD
HDFC Standard Life has received the CIO 'The Ingenious 100 - 2009 Award,' for ATLAS
(Agency Training Licensing and Servicing System). Additionally,
the company has received the CIO 100 'Security Award 2009' for pioneering LANDesk
Management and Security Suite security implementation and taking its security to a higher
level of technological excellence.
HDFC Standard has received the CIO 100 Award for the third consecutive year. It had
received the 2008 CIO Bold Award for Consultant Corner and CIO Security Award for our
initiatives for a secure computing environment, including Sesame - Identity and Access
Management. In 2007, the company received CIO 100 award for Wonders and a Special
Award in Storage category.
CIO magazine has a long tradition of honoring leading companies for business and
technology leadership and innovations through its flagship award program - CIO 100. It's a
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celebration of 100 organizations (and the people within them) that are using IT in innovative
ways to deliver business value, whether by creating competitive advantage, optimizing
business processes, enabling growth or improving relationships with customers.
RECEIVED DIAMOND EDGE AWARD 2009
HDFC Standard Life has received the Diamond EDGE Award 2009 for its mobile
workforce portal - Consultant Corner. EDGE - Enterprises Driving Growth
and Excellence (using IT) is an initiative by the ,Network
Computing magazine to identify, recognize, and honor end-
user companies in India that have demonstrated the best useof technology to solve a business problem, improve business
competitiveness, and deliver quantifiable ROI to
stakeholders.
Network Computing magazine is part of CMP Technology, which brings more than 100 IT
media brands to more than 18 million technology and business decision makers worldwide.
BEST COMPANIES TO WORK FOR IN INDIA IN 2010
HDFC Standard Life has been adjudged one of the Best Companies to Work for in India in
2010. The company participated in the Great Places to Work study for the first time and
ranked first in the insurance category. It ranked 34th on the Top 50 Best Companies to Work
for, in India 2010 list. The company was also
Awarded for its unique employee initiative - Mission in-
Genius national quiz. The study has shown that HDFC Standard Life conscientiously
develops employee talent programmers to keep engaging and motivating its employees. The
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company provides some unique platforms such as 'Mission in Genius' national quiz. The
management is accessible to all at all times and sincerely seeks feedback from its employees
through programmes such as 'Sparsh', the study said.The Best Companies to Work in India is
a study conducted by the Great Place to Work Institute, India in partnership with The
Economic Times. The 2010 edition is the seventh study in India, which received
overwhelming response from more than 400 companies, making it the largest such study in
India. And only 50 companies made it to the Best Companies to Work list!
'YOUNGSTAR SUPER' VOTED 'PRODUCT OF THE YEAR 2010'
HDFC Standard Life Young Star Super has been voted Product of the Year 2010 in the
'Insurance' category by more than 30,000 consumers nationwide across 36 markets. Young
Star Super is an
Unit linked Children Plan with unique benefits such as bumper additions, double and triple
benefits, attractive allocations rates, and seven different funds.
The consumer study on product innovation in India was conducted by A C Nielsen, the
leading global research firm. Entries were accepted from products that demonstrate
innovation in their product function, design, packaging or process or any other specifiedform. Entries were then filtered by a jury of distinguished industry professionals to ensure
that the products meet the innovation criteria before they were passed on to the consumer
votes/survey round. Product of the Year is an Internationally Recognized Standard that
celebrates and rewards the best innovations in consumer products and services. The Product
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of the Year is selected through an independent consumer survey across the country in 26
countries for the past 20 years.
2.1 ORIGIN OF THE ORGANIZATION
HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint
venture between Housing Development Finance Corporation Limited (HDFC Ltd.) India and
UK based Standard Life Company. Both the joint venture partners being one of the leaders in
their respective areas came together in this 81.4:18.6 joint Venture to form HDFC standard
life insurance company limited.
The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has given the company
new directions and has helped the company achieve the status it currently enjoys. HDFC
Standard Life brings to you a whole range of insurance solutions be it group or individual or
NAV services for corporations; they can be easily customized as per specific needs.
HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by
March'2007. The gross incomes standing at a whopping Rs. 2, 856 crores, HDFC Standard
Life Insurance Corporation is sure to become one of the leaders and the first Preference for
any life insurance customer.
The Banc assurance partners of HDFC Standard Life Insurance Co Ltd are HDFC, HDFC
Bank India Limited, Union Bank of India, Indian Bank, Bank of Baroda,
Sarawak Bank and Bajaj Capital.
The premium payment options available to the customers vary from online payment to direct
desk payments at the HDFC Standard Life Branches, by courier services or in drop boxes
provided. You can also pay by ECS or Automatic Debit System or credit cards or standinginstruction mandate. HDFC Standard Life Insurance Company is a customer oriented
corporation and aim at complete customer satisfaction.
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The lapsation and renewal policy of HDFC Standard Life are clearly defined on the official
website. Online renewal forms are also available. For any change in personal details like the
contact details or the nominee of the policy or policy benefits, online servicing is also
available. Even the claim procedure has been simplified since affect of the loss life is
irreparable and is thus fully understandable at HDFC Standard Life. A completely hassle-free
process has been formulated to provide maximum convenience.
HDFC Standard Life first came together for a possible joint venture, to enter the Life
Insurance market, in January 1995. It was clear from the outset that both companies shared
similar values and beliefs and a strong relationship quickly formed. In October 1995 the
companies signed a 3 year joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the
relationship.
The next three years were filled with uncertainty, due to changes in government and ongoing
delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in
parliament. Despite this both companies remained firmly committed to the venture.
In October 1998, the joint venture agreement was renewed and additional resource made
available. Around this time Standard Life purchased 2% of Infrastructure Development
Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC
Treasury department to advise them upon their investments in India.
Towards the end of 1999, the opening of the market looked very promising and both
companies agreed the time was right to move the operation to the next level. Therefore, in
January 2000 an expert team from the UK joined a hand picked team from HDFC to form the
core project team, based in Mumbai.
Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in
HDFC Bank.
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In a further development Standard Life agreed to participate in the Asset Management
Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was
launched on 20th July 2000.
INCORPORATION OF HDFC STANDARD LIFE INSURANCE
COMPANY LIMITED:
The company was incorporated on 14th August 2000 under the name of HDFC
Standard life insurance Company limited.
Their ambition from the beginning was to be the first private company to re-enter the life
insurance market in India. On the 23rd of October 2000, this ambition was realized when
HDFC Standard Life was the first life company to be granted a certificate of registration.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life
owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the
maximum investment allowed under current regulations.
HDFC and Standard Life have a long and close relationship built upon shared values and
trust. The ambition of HDFC Standard Life is to mirror the success of the parent companiesand be the yardstick by which all other insurance companies in India are measured.
HDFC Standard Life Insurance Company Limited is one of India's leading private life
insurance companies offering 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 Standard Life plc, the leading providers of financial
services in the United Kingdom.
HDFC Ltd. as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.
HDFC Standard Life's Product portfolio comprises solutions, which meet various customer
needs such as Protection, Pension, Savings, and Investment. Customers have the added
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advantage of customizing the Plans, by adding optional benefits called riders, at a nominal
price. The company currently has 21 retail and 6 group products in its portfolio.
HDFC Standard Life maintains very high professional standards during product offerings by
providing sound financial advice, efficient post-sale service, and immaculate financial
security. Ongoing training for conventional products, and specialized training, for unit-linked
products, for its financial consultants, has also helped its customers choose the product, best
suited for their needs.
HDFC Standard Life operates across more than 726 cities and towns of the country supported
by its strong network of more than 1,45,000 Financial Consultants. HDFC Standard Life also
has more than 383 corporate agents and other sales intermediaries including banks fordistribution of insurance products.
2.2 GROWTH AND DEVELOPMENT OF THE
ORGANIZATION
HDFCSL Milestone
2006 2008
HDFCSL expanded its reach in the Banc
assurance channel by arrangements with
co-operative banks in the rural areas.
Continued to increase its focus on quality
service, by putting in place a robust
mechanism to capture 'Voice of the
Customer' through service audits across its
offices. This was complemented by use of
technology that enabled capture of all
Received the PCQuest Best IT
Implementation Award 2008 for
Consultant Corner, the applications for
its financial consultants, providing
centralized control over a vastgeographical spread for key business
units such as inventory, training,
licensing, etc.
Received the 2008 CIO Bold 100 Award
for its mobile workforce portal and the
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interactions with customers across all touch
points
Sar Utha Ke Jiyo was honored as 'Among
India's 60 Glorious Advertising Moments.
The advertisements of the company were
ranked 6th amongst 'The 10 most effective
Advertisements' in September 2007.
Received the PCQuest Best IT
Implementation Award 2007 for Wonders,
its path-breaking implementation of an
enterprise-wide workflow system. In
addition the company also bagged theEMC storage award for being the most
innovative users of storage and storage
management.
Pension Plan Tops Mint's Survey of Best
TV Ads.
HDFC Standard Life's advertising created
high awareness for the brand and bagged 2silver and 1 bronze awards at the ADFEST
2007 National Awards organised by the
Advertising Agencies Association of India
(AAAI). The 3 awards are the highest won
by any single brand in the financial
services business (including banking,
mutual fund, insurance and other financial
services).
Ranked 29th most trusted Indian Brands
amongst the Top 50 Service Brands of
2006 according to a study conducted by the
Brand Equity Economic Times, the
Special 2008 CIO Security Award for a
secure computing environment,
including identity management
respectively.
Mr. Deepak M Satwalekar AwardedQIMPRO Gold Standard Award.
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leading business publication of India.
The year witnessed the launch of 'My
Account', a web-based facility with various
policy servicing options such as switch,
premium redirection to be executed by
clients, without recourse to visiting a
branch
As against a regulatory requirement of
writing 18% of all policies in rural areas,
the company issued over 1, 21,000 policies
accounting for more than 23% of all
policies issued during the year. The company had been awarded the
"Intelligent Enterprise" Award by the
Express Computer Magazine Part of the
Indian Express Group, for investing in
workflow and imaging technology which
helped in increasing volumes without
affecting service standards. Was selected as the '4Ps Power Brand
2006', for being one of India's Top 25
'Most Innovative Companies' in an
exclusive survey conducted by ICMR
(Indian Council of Market Research) and
4Ps - Business and Marketing (a Business
and Marketing magazine published by
Planman Media).
Biggest NGO covered on 28th March 2006
with 14000 lives
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2.3 PRESENT STATUS OF THE ORGANIZATION
HDFC LIFE REGISTERS HIGHEST GROWTH IN INDIVIDUAL NEW BUSINESS
IN 2010-11; ONLY COMPANY TO REGISTER POSITIVE GROWTH IN NEW
REGIME (H2, 2010-11)
Continues to be the fastest growing company with 26% YoY growth and the only one among
the top 5 private players to be on positive YoY growth; Strongest market share gain of 4.2%
in private space in 2010-11
Mumbai, May 4, 2011:HDFC Life, one of Indias leading private life insurance companies,
registered highest growth of 26% in individual new business (regular and single) among the
top 5 private life insurance players in 2010-11. HDFC Life recorded 36% growth in renewal
premium and 29% growth in total premium in the financial year 2010-11.
Announcing the companys financial results,Mr. Amitabh Chaudhry, MD& CEO, HDFC
Life, said, I am extremely satisfied with our performance in 2010-11. In spite of significant
challenges in the market, we responded extremely well and demonstrated significantly better
traction than our competitors. Our proactive efforts on gearing up the organization to face
challenges in the market reflect in the early signs of adapting well to the new regime. We
ranked 1stin H2 FY2010- 11 in individual business in the industry and we are one of the very
few private insurers to achieve positive growth in FY2010-11. Our consistent focus on
creating awareness about life insurance as long-term financial instruments has resulted in our
customers exhibiting renewed focus on life insurance reflected in our high conservation ratio
of 81%.
Key Financial and Operational Highlights (2010-11):
Robust growth of 29% in total premium income to Rs. 9004 crore from Rs. 7005 crore in
2009-10
26% growth in individual new business (regular and single) to Rs. 3488 crore from Rs.
2753 crore in 2009-10
High quality of existing policies & continuous focus on persistency lead to 36% increase
in renewal premium of Rs. 4924 crore from Rs. 3627 crore last year
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Strongest market share gain of 4.2%* in private space in 2010-11 over same period last
year; Market share increased to 12.9% in private space in 2010-11 from 8.7% in 2009-10;
Overall market share increased to 5.9% in 2010-11 from 4.6% in 2009-10
With growth of 1.6%* in H2, 2010-11, stood first in the industry in individual business;
Stood 3rd in the private space in 2010-11 in total premium
Conservation ratio (individual business) improved substantially to 81% in 2010-11 from
72% in 2009-10
31% growth in Assets Under Management over March 31, 2010 to Rs. 27,177 crore from
Rs. 20,767 crore same period last year
Solvency ratio as on March 31st, 2011 was 172% as against regulatory requirement of
150%
Claim repudiation ratio for FY 2010-11 is 3.97%, which means we have settled 96.03%claims
Distribution mix - 66% from Banassurance, 31% from Agency and rest from others
including Direct Sales
The references of growth are in terms of Weighted Received Premia (WRP) of individual
business.
Management action on cost containment and productivity enhancement has seen operating
expense ratio reducing over the last 3 years. We would continue to invest in nurturing new
distribution channels, achieving cost leadership across the value chain, rolling out more
customer-centric initiatives, and driving awareness about life insurance as a long-term
financial instrument, concluded Mr. Chaudhry.
2.4 FUNCTIONAL DEPARTMENT OF THE ORGANIZATION
CHIEF EXECUTIVEOFFICER
REGIONAL MANAGER
ZONAL MANAGERBUSINESS HEAD
CHAIRMAN
MANAGING DIRECTOR
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2.5 HIERARCHIAL STRUCTURE OF THE
ORGANIZATION
CHAIRMAN
MR. DEEPAK S. PAREKH
MANAGING DIRECTOR & CHIEF
EXECUTIVE OFFICER
MR. AMITABH CHAUDHRY
EXECUTIVE DIRECTOR AND CHIEF
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2.6 PRODUCT AND SERVICE PROFILE OF THE
ORGANIZATION COMPETITORS
HDFC Standard Life offers a bouquet of insurance solutions to meet individuals need, the
company has a range of protection, investment, pension and savings plans that assist and
nurture dreams apart from providing protection. The customers can choose from a range ofproducts to suit their life-stage and needs. At HDFC Standard Life realize that not everyone
has the same kind of needs. Keeping this in mind, varied range of products that customer can
choose from to suit all needs. These will help secure customer future as well as the future of
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family. The products of the company are categorized into various sections which are as
follows:
PROTECTION PLANS
Protection Plans help you shield your family from uncertainties in life due to financial losses
in terms of loss of income that may dawn upon them incase of your untimely demise or
critical illness. Securing the future of one's family is one of the most important goals of life.Protection Plans go a long way in ensuring your family's financial independence in the event
of your unfortunate demise or critical illness. They are all the more important if you are the
chief wage earner in your family. No matter how much you have saved or invested over the
years, sudden eventualities, such as death or critical illness, always tend to affect your family
financially apart from the huge emotional loss.
For instance, consider the example of Amit who is a healthy 25 year old guy with a income
of Rs. 1,00,000/- per annum. Let's assume his income increases at a rate of 10% per annum,
while the inflation rate is around 4%; this is how his income chart will look like, until he
retires at the age of 60 years. At 50 years of age, Amit's real income would have been around
Rs. 10,00,000/- per annum. However, in case of Amit's unfortunate demise at an early age of
42 years, the loss of income to his family would be nearly Rs. 5,00,000/- per annum.
PROTECTIONPLANS
CHILDREN'S PLANS RETIREMENTPLANS
SAVINGS &INVESTMENT
HEALTH PLANS
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However, with a Protection Plan, a mere sum of Rs. 2,280/- annually (exclusive of service
tax & educational cess) can help Amit provide a financial cushion of up to Rs. 10,00,000/-
for his family over a period of 25 years.
CHILDRENS PLAN
Children's Plans helps you save so that you can fulfill your child's dreams and aspirations.
These plans go a long way in securing your child's future by financing the key milestones in
their lives even if you are no longer around to oversee them. As a parent, you wish to provide
your child with the very best that life offers, the best possible education, marriage and life
style.
HDFC Premium Guarantee Plan
HDFC Term Assurance Plan
TYPES OFPROTECTION PLANS
HDFC Loan Cover Term AssurancePlan
HDFC Home Loan Protection Plan
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Most of these goals have a price tag attached and unless you plan your finances carefully,
you may not be able to provide the required economic support to your child when you need it
the most. For example, with the high and rising costs of education, if you are not financially
prepared, your child may miss an opportunity of a lifetime.
Today, a 2-year MBA course at a premiere management institute would cost you nearly Rs.
3,00,000/- At a assumed 6% rate of inflation per annum, 20 years later, you would need
almost Rs. 9,07,680/- to finance your child's MBA degree.
An illustration of how education expenses could rise with passing time due to inflation
Source: HDFC Standard Life Survey 2008. Inflation assumed as 6% p.a.
So, how can you cope with these costs? Children's Plans help you save steadily over the long
term so that you can secure your child's future needs, be it higher education, marriage or
anything else. A small sum invested by you regularly can help you build a decent corpus over a
period of time and go a long way in providing your child a secured financial future along with.
HDFC SL Young Star Super II
HDFC Children's Plan
TYPES OFCHILDRENS PLANS
HDFC SL Young Star Super
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SAVINGS & INVESTMENT PLANS
You have always given your family the very best. And there is no reason why they shouldn't
get the very best in the future too. As a judicious family man, your priority is to secure the
well-being of those who depend on you. Not just for today, but also in the long term. More
importantly, you have to ensure that your family's future expenses are taken care, even if
something unfortunate were to happen to you.
A big factor that you need to consider while building your wealth is inflation. It has a dual
impact on your hard-earned savings. Inflation not only erodes your current purchasing power
but also magnifies your monetary requirements for the future. Sample this: An 35 Year
individual needs to invest Rs. 36,000/- per year with 8% returns to build a corpus of Rs.
10,00,000/- by the age of 50 Years.
However, Rs. 10,00,000/- after 15 years would be worth roughly around half of what it is
today once adjusted for inflation at the rate of 4%. Therefore, an individual will need to save
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nearer to Rs 50,000/- annually to reach your targeted savings at the age of 50 Years, if you
consider inflation.
Our Savings & Investment Plans provide you the assurance of lump sum funds for your and
your family's future expenses. While providing an excellent savings tool for your short termand long term financial goals, these plans also assure your family a certain sum by way of an
insurance cover.
HEALTH PLANS
Health plans give you the financial security to meet health related contingencies. Due to
changing lifestyles, health issues have acquired completely new dimension overtime,
becoming more complex in nature. It becomes imperative then to have a health plan in place,
Type Conventional Plans Unit Linked Insurance
Plans
Regular
Premium
HDFC SL New Money Back Plan
HDFC Assurance Plan#
HDFC Savings Assurance Plan^
HDFC Endowment Assurance Plan
HDFC Life Sampoorn Samridhi Insurance
Plan
HDFC SL ProGrowth
Super II
HDFC SL ProGrowth
Flexi
Single
Premium/
Investment
HDFC Single Premium Whole of LifeInsurance Plan
HDFC SL ProGrowthMaximiser
Limited
Premium
Payment
HDFC SL ClassicAssure Insurance Plan HDFC SL Crest
TYPES OF SAVINGS & INVESTMENT PLANS
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which will ensure that no matter how critical your illness is, it does not impact your financial
independence. In the race to excel in our professional lives and provide the best for our loved
ones, we sometimes neglect the most important asset that we have - our health. With
increasing levels of stress, negligible physical activity and a deteriorating environment due to
rapid urbanization, our vulnerability to diseases has increased at an alarming rate.
As can be seen in the above chart, lifestyle diseases are set to spread at disturbing rates. The
result - increased expenditure. In many cases, people need to borrow money or sell assets to
cover their medical expenses. All it takes is a suitable plan to help you overcome the
financial woes related to your health by paying marginal amounts as premiums. For example,
if you are 30 years old, then a mere sum of approximately Rs 3500* annually can provide
you a health insurance plan of Rs 5 lakh over a period of 20 years, and a worry-free future for
you and your family.
RETIREMENT PLANS
Retirement Plans provide you with financial security so that when your professional income
starts to ebb, you can still live with pride without compromising on your living standards. By
providing you a tool to accumulate and invest your savings, these plans give you a lump sum
on retirement, which is then used to get regular income through an annuity plan. Given the
TYPES OF HEALTH PLANS
HDFC Surgi Care Plan
HDFC Critical Care Plan
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high cost of living and rising inflation, employer pensions alone are not sufficient. Pension
planning has therefore become critical today.
India's average life expectancy is slated to increase to over 75 years by 2050 from the present
level of close to 65 years. Life spans have been increasing due to better health and sanitationconditions in the country. However, the average number of years of employment has not
been rising commensurately. The result is an increase in the number of post-retirement years.
Accordingly, it has become necessary to ensure regular income for life after retirement, so
that you can live with pride and enjoy your twilight years.
Priorities at different stages of life:-
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The above illustration shows how with each passing year your annual savings requirement
would increase. For instance, if you are 30 years old and plan to retire at 60, then, with a
current annual expenditure of Rs. 3,00,000/- , you would need a corpus in excess of Rs.
2,00,00,000/- to maintain your living standards, assuming you live till 85 years and the
inflation rate is 4%. To build this retirement corpus, you need to invest Rs 3,60,000/- per
annum in a retirement plan that offers 8% returns per annum. In case you delay planning
your retirement by 5 years then the investment amount would increase to Rs 6,90,000/- per
annum.
Type Conventional Plans Unit Linked Insurance Plans
Regular Premium HDFC Personal Pension
Plan
HDFC Life Classic
Pension Insurance Plan
Single Premium/
Investment
HDFC SL Pension
Maximus
TYPES OF RETIREMENT PLANS
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ORGANIZATION COMPETITORS ARE AS:
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 service groupheadquartered in the United Kingdom.
ICICI prudential was amongst the first private sector insurance company to being operations
in December 2000 after receiving approval from Insurance Regulatory Development
Authority (IRDA) . ICICI Prudential equity base 74% and 26% stake respectively. In the
period April-December 2004, the company garnered Rs. Billion of new business premium for
a total sum assured of over Rs 73.6 billion and wrote nearly 345000 policies.
The company has a network of over 50000 advisor; as well as 7 bank assurance tie-ups.
Today, ICICI Prudential has emerged as the No -1 Private Life insured in the country. With a
wide range of flexible products that meet the needs of the customer at every step in life.
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.
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TATA AIG General Insurance Company Ltd.
Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the Tata
Group and American International Group, Inc. (AIG). Tata AIG combines the strength and
integrity of the Tata Group with AIG's international expertise and financial strength. The
Tata Group holds 74 per cent stake in the two insurance ventures while AIG holds the
balance 26 per cent stake.
Tata AIG General Insurance Company, which started its operations in India on January 22,
2001, offers the complete range of insurance for automobile, home, personal accident, travel,
energy, marine, property and casualty, as well as several specialized financial lines.
3.1 STUDENTS WORK PROFILE
(ROLE AND RESPONSIBILITIES)
During the training period of 2 months I have gone through various stages Job role. I was
basically given the work to Target various Consumer Groups, Markets and Different
Organizations to whom and where the company can pitch its differential financial
products/services as well as to create awareness about the company and its offerings in the
regard to promote which create a Position in minds of the consumer. Moreover I was given
some training classes about and Life Insurance.
My role and responsibilities are as follows:
Searching for prospects, or leads. As such, I have to generate leads to sell policies. Some
of the leads were given by the company and the rest we have to generate by ourselves.
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In this I have decide how to allocate time amongst prospects and customers. In the
beginning I did the business through my natural market i.e. my relatives and friends.
Communicating information about the companys products and services with the
customers. As such customers require different plans and products according to its needs
and requirements.
Approaching, presenting, answering questions, overcoming objections and closing sales.
Providing various services to the customers-consulting on problems, rendering technical
assistance, arranging financing, expediting delivery.
Conducting market research and doing intelligence work
3.2 DESCRIPTION OF LIVE EXPERIENCES
From my work experience I have learnt a lot about the corporate world. I have learnt about
the various aspects about the Sales. As such I was in the sales department so I learnt about
the various strategies and techniques used by the insurance companies to sell policies.
In my opinion to sell insurance is a very tough work. Generally it takes about four to five
meetings with customers to sell the policy. As such insurance is intangible it is difficult to
sell i.e. it cannot be seen. I was selling a thing which cannot be seen and most of the
customers are unaware about the benefits of insurance. It takes a lot to convince the customer
to take the policy. As most of the Indian customers are unaware about the benefits of
insurance. In face to face meetings with the customers I generally tell them about benefits of
insurance such as investments, tax saving and life cover. By working in insurance sector I
also came to know that insurance cannot be selling by telling the truth. Thats why the
customer is usually kept in dark about the hidden charges and costs. As such if customer
knows about these charges he is reluctant to take policy.
By working in the excellent working environment of HDFC LIFE INSURANCE offices I
also learnt about the responsibilities of Sales Manager, Senior Sales Manager. I also learnt
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about the works of advisors and tell callers. Advisors are the backbone of every company.
Advisors generate the business for the company without them the company is nothing.
So it can be easily concluded that working with HDFC LIFE INSURANCE was full of
learning and an exciting experience.
4.1 RESEARCH PROBLEM
TITLE:
BRAND AWARENESS OF HDFC LIFE INSURANCE AMONG
POTENTIAL CUSTOMERS
Research can be defined as systematized effort to gain knowledge. A research is carried
out by different methodology, which has their own pros and cons.
Research can be defined as the search for knowledge or any systematic investigation to
establish facts. The primary purpose for applied research (as opposed to basic research) is
discovering, interpreting, and the development of methods and systems for the advancement
of human knowledge on a wide variety of scientific matters of our world and the universe.Research can use the scientific method, but need not do so.
Research methodology is a way to solve research problem along with the logic behind
them. Thus when we talk of the research methodology we not only take of research method
but also context of our research study and explain why we are using a particular method or
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techniques and why we are not using other so that research result are capable of being
evaluated either by the researchers himself or by others.
Research methodology means the method carried out to study the problem. It shows the type
of the sample design used, its size and the procedure used to dew sample. The extent of
precision achieved and the method used for handling any special problem during the course
of the study.
4.2 RESEARCH OBJECTIVE
One Objective
To determine reasons behind opting for an insurance.
To provide the company with information of customer's Insurance policy if they have anyand reasons for opting for that particular policies.
To know the most preferred policy.
Two Objectives
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.
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4.3 RESEARCH DESIGN AND RESEARCH
METHODOLOGY
Research design is a plan, structure, strategy of investigation conceived so as to obtainanswer to research question and control variance. There are three types of research design
system.
Explanatory Research.
Descriptive Research
Casual Research.
Among the above mentioned types descriptive research design has been chosen. Descriptiveresearch is to find ad efficient sales force, of Management Training. In order the study the
characteristics and variables, cross sectional analysis was conducted by using field survey
method. In the process of field survey, a questionnaire was developed and circulated to the
respondents, which formed the basis for entire research
Data source are the data resources or collection of fresh and data to obtain results. There are
two types of data sources: thus happen to be original in character.
Primary Data: Primary data is that which is collected fresh and thus happen to be
original in character.
Secondary data: Secondary data is any data, which have been gathered earlier for some
other purpose. Among the above mentioned types of data was used for the study and
analysis of the objective of this project, also the secondary to data proved to be helping
hand in framing up the industry scenario and also the relevant topics in the entire project
report.
Reason for selecting primary data:
In terms of primary data structure questionnaire was prepared to interview the professional,unemployed students, housewives, investment consultant, post office agent and other in
Delhi location. Analysis clearly reflected the views and preference regarding the perception
of the people towards joining HDFC LIFE INSURANCE.
SAMPLING
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Sampling refers to the method of selecting a sample from a given universe with a view to
draw conclusions about that universe. A sample is a representative of the universe selected
for study.
SAMPLE SIZE
The sample size for the survey conducted was 166 respondents. This sample size was taken
on 95% confidence level and 6 significant levels. Data universe for this sample is 10, 00,000
which is approx population of Delhi excluding people below age of 18 years.
PLAN OF ANALYSIS
Tables were used for the analysis of the collected data. The data is also neatly presented withthe help of statistical tools such as graphs and pie charts. Percentages and averages have also
been used to represent data clearly and effectively.
STUDY AREA
The samples referred to were residing in Delhi City. The areas covered were Shastri Nagar,
Sub hash Nagar, City Area and Kamla Nagar.
4.4 ANALYSIS OF DATA
A SURVEY ON THE LIFE INSURANCE INDUSTRY IN INDIA
1. How much percentage of respondents is aware of insurance industry in different age
group profile?
Age group No. of Respondents (%)
Below 20 years 1.18%
20-30 years 33.73%
30-40 years 22.89%
40-50 years 15.26%
More than 50 years 25.90%
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Analysis:
1.18% of the respondents fall in the age group of below 20 years.
33.73% fall in the age group of 2030 years.
22.89% fall in the age group of 3040 years.
15.26% fall in the age group of 40-50 years.
25.90% fall in the age group of above 50 years.
Therefore most of the respondents are relatively young (below 30years of age).
2.How much percentage of respondents is aware or unaware about life insurance intotal?
Life insurance No. of respondents %
Aware 88.55%
Unaware 11.45%
0.00%5.00%
10.00%15.00%
20.00%25.00%30.00%35.00%
Below 20years
20-30years
30-40years
40-50years
Morethan 50years
1.18%
33.73%
22.89%
15.26%
25.90%
Age Group
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Analysis:
Out of total 166 respondents only 88.55% of people are aware about life insurance
policies
Rest about 11.45% of people are there in Delhi who are unaware with the benefits of
insurance policies.
So there is a very big scope for life insurance companies to cover these people
So in future business of life insurance will grow further.
3.How much percentage of respondents is familiar with the HDFC life insurance?
HDFC life insurance No. of respondents %
aware 55%
unaware 45%
88.55%
11.45%
Aware
Unaware
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Analysis:
55% of people are aware about HDFC life insurance policies but still about 45% of
people are there in Delhi who are unaware with the benefits of insurance policies.
4.How MUCH percentage of respondents hasaware about HDFC life insurancethrough different parameters?
Parameter No. of Respondents %
TV 28.31%
Friends 25.30%
Hoardings 12.65%
Newspapers 33.73%
55%
45%
HDFC LIFE INSURANCE
aware
unaware
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Analysis:
From the chart above it can be seen that
the respondents purchase life insurance to secure their families,
28.31% of the respondents purchase insurance because of the influence of watching TV,
25.30% purchase insurance on the advice of their friends,
12.65% purchase insurance because of the influence of seeing hoardings,
33.73% purchase insurance because of the influence of reading newspapers.
The main purpose of insurance is to cover the financial or economic loss that occurs to
the family in case of the uncertain death of the policy holder.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00% 28.31%25.30%
12.65%
33.73%
NO.
OFRESPONDENTS
PARAMETER
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5.What is the percentage of respondents that are aware of unit linked insurance plans?
Awareness of Unit Linked Plans No. of Respondents %
Yes 43.98%
No 56.02%
Analysis:
43.98% of the respondents are aware of Unit Linked life insurance plans and
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Yes No
43.98%
56.02%
NO.OFRESPONDENTS
ULIP AWARENESS
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56.02% of people are unaware about such plans.
These plans should be promoted through advertising. The company can advertise through
television, radio, newspaper and pamphlets.
This would increase awareness and arouse curiosity in the minds of the consumer which
would enable the company to market its products more effectively.
Unit-linked plans are those where the benefits are expressed in terms of number of units
and unit price.
6. HOW much percentage of respondents has invested in mutual fund or share ofHDFC ?
Investment in mutual fund or
share
No. of respondents %
Yes 33.73%
No 66.27%
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Analysis:
66.27% of respondents do not invest in mutual fund or share in HDFC life insurance and
33.73% of respondents invest in it.
The main purpose of insurance is to cover the financial or economic loss that occurs to
the family in case of the uncertain death of the policy holder.
7. What percent of respondents consider what parameters while purchasing an
insurance policy?
Parameters No. of respondents %
Higher return 28.31%
Security 12.04%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Yes
No
33.73%
66.27%
NO.OFRESPONDENTS
INVESTMENT IN MUTUAL FUND AND SHARE
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Higher return and security 59.65%
Analysis:
59.65% of the respondents purchase life insurance to get high returns and to secure their
families.
28.31% of the respondents purchase life insurance to get high returns and
12.04% of the respondents purchase life insurance to get security.
The main purpose of insurance is to cover the financial and economic loss that occur to
the family in case of the uncertain death of the policy holder.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Higherreturn
Security Higherreturn and
security
28.31%
12.04%
59.65%
NO
.OFRESPONDENTS
PARAMETERS
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4.5 SUMMARY AND FINDINGS
Analysis of a research project is based on the primary data and secondary data which arebeing collected from various sources to take out some conclusions of the research study
being taken. In my project my purpose was to find the market credibility of HDFC LIFE
among various other private life insurance companies. For this a population of 166 people
was being interviewed having different lifestyles, different incomes, different occupations yet
the point which was kept in mind was that this interviewed population was insurable.
88.55% are aware Life Insurance.
45% are aware HDFC LIFE Life Insurance.
People viewing insurance as a tax saving and investment instrument as much as a
protective one.
There is great opportunity for Insurance companies as there is a is a rise in number of
people who want to invest in share market but dont have time and knowledge to do so,
also these people want to take less risk .
Young people these days are particularly more interested in insurance because they see
insurance as safe bet. Also these people have large disposable incomes and risk taking
capability too.
The bad part is people are still ignorant about insurance and different schemes about
insurance; hence it is very necessary to educate them about insurance.
Advertising can also play a major part as it has been seen that people buy insurance
looking at the brand name.
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5.1 SUMMARY OF LEARNING EXPERIENCE
This project has been a great learning experience for me; at the same time it gave me enough
scope to implement my analytical ability.I learnt a lot while working in HDFC LIFE INSURANCE. I learnt about the history of
HDFC Life Insurance and about the way of working of the insurance sector.
I was able to know the market position and competitors of HDFC Life insurance in the
insurance sector. By working with HDFC life Insurance, I was able to learn about its
organizational culture and the way of their working. The most important thing, which I
learned by working as a marketer, was the way of communicating and convincing people and
how to determine their needs. I also learnt about the various products offered by the HDFC
life Insurance.
I learnt about the various investments and protection plans of the company.
The most pivotal thing that I learn is to handle customers. I learnt a lot from the customers
about the minor things related to insurance. I learnt about the working environment of the
HDFC Life insurance and its system.
By working in HDFC it had helped me in becoming professional and to understand the
corporate world.
Every endeavor undertaken to accomplish challenging goals, can only be successful underthe experienced and encouraging guidance. I am privileged to have undergone training at
HDFC Life Insurance.. In brief my learning and achievements can be summarized as under:
Understanding of person and profile fit.
Convince people about the job profile and to sell the job to the prospective candidate;
Following up with the candidates during the entire selection process;
Learned to convince candidates about the offer rolled out and making them accept the
offer through effective communication;
Learning about salary fitments.
Communicating with the corporate;
Performance appraisals, its various types, implications and significance;
Handling queries received from various quarters;
Managing HR department in the absence of HR manager;
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Reply to official mails;
Prioritize issues according to their importance;
Field work exposure to tap candidates that further strengthened the learning.
Most popular stocks among fund managers, most lucrative sectors for fund managers, a
special report on Systematic Investment Plan, does fund performance persists and the topping
of all the servings in the form of portfolio analysis tool and its application. All the topics
have been covered in a ve