s

1. 1
SUMMER INTERNSHIP PROJECT REPORT ON
A study on perception of customer towards life insurance as an investment avenue with
special reference to LIC INDIA
Submitted in Partial Fulfillment for the Award of the Degree of
Master of Management Studies (MMS)
(under University of Mumbai)
BATCH 2021-23
SUBMITTED BY
[Akash.R.Chauhan]
ROLL NO: [ 211132]
SPECIALISATION
[FINANCE]
UNDER THE GUIDANCE OF
[ Dr. Shaheda Shaikh ]
PILLAI INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH,
NEW PANVEL - 410206

2. 2
SUMMER INTERNSHIP PROJECT REPORT ON
A study on perception of customer towards life insurance as an investment avenue with
special reference to LIC INDIA
Submitted in Partial Fulfillment for the Award of the Degree of
Master of Management Studies (MMS)
(under University of Mumbai)
BATCH 2021-23
SUBMITTED BY
[Akash.R.Chauhan]
ROLL NO: [ 211132]
SPECIALISATION
[FINANCE]
UNDER THE GUIDANCE OF
[ Dr. Shaheda sheikh ]
PILLAI INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH,
NEW PANVEL - 410206

3. 3
DECLARATION
I hereby declare that this Project Report titled" A study on perception of customer towards life
insurance as an investment avenue with special reference to LIC INDIA”, submitted by me to
PILLAI INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH, NEW
PANVEL – 410206 is a bonafide work undertaken by me and it is not submitted to any
other University or Institution for the award of any degree diploma or certificate or published
any time before.
Name : [Akash.R.Chauhan]
Roll No. : [211132 ]
Signature of the Student

4. 4
PILLAI INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH,
NEW PANVEL - 410206
CERTIFICATE
This is to certify that project titled “" A study on perception of customer towards life insurance
as an investment avenue with special reference to LIC INDIA”is successfully completed by
Mr. Akash.R. Chauhan during the III Semester, in partial fulfillment of the Master's Degree in
Management Studies recognized by the University of Mumbai for the academic year
2021 – 23 through PILLAI INSTITUTE OF MANAGEMENT STUDIES AND
RESEARCH, NEW PANVEL – 410206. This project work is original and not
submitted earlier for the award of any degree / diploma or associate ship of any other University
/ Institution.
Name of Guide: [Dr. Shaheda Sheikh]
Date: ______________________ (Signature of the Guide)

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CERTIFICATE FROM THE COMPANY

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ACKNOWLEDGEMENTS
It is really matter of pleasure for me to get an opportunity to thank all the persons who
contributed directly or indirectly for the successful completion of the project report, A study
on perception of customer towards life insurance as an investment avenue with special
reference to LIC INDIA”,
I am thankful for their aspiring guidance, invaluably constructive criticism and friendly advice
during the project work. I am sincerely grateful to them for sharing their truthful and
illuminating views on a number of issues related to the project. I express my warm thanks to
Dr. Shahada Sheikh for their support and guidance from Pillai College New Panvel.
Finally, I acknowledge the people who mean a lot to me, my parents, for their inspiration,
unconditionallove, support, and faith for carrying out this work to finishing line. I want to give
special thanks to allmy friends who went through hardtimes together, cheered me on, helped
me a lot, and celebrated eachAccomplishment. Lastly, to the Almighty, for showering his
blessings and to many more, whom I didn’t mention.

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Executive summary
In today's corporate and competitive world, I find that the insurance sector has the
maximum growth and potential as compared to the opposite sectors. Insurance has the
maximum rate of growth of 70-80% while the FMCG sector includes a maximum rate.
This growth potential attracts me to enter this sector. The success story of fine market
share of various market organizations depends upon the supply of the merchandise and
services almost about the customer, which might be distributed through a marketing.
However, understanding the market, consumer preference and introducing new products
to suit different tastes and at the identical time offering a price product would be the key
steps to fight competition.
Marketing is a crucial activity in any organization's sales strategy. Marketing helps
in promoting the products within the targeted market and make a recall value and branding
to the products. Marketing departments perform the initial market study for the
suitability of the merchandise launches; study the market requirements within the existing
markets to further strengthen the market capitalisation identity, the feature needed for a
product's longevity. Agents are the sole way for an organization within the Insurance sector
through which policies and benefits of the corporate may be explained to the Customer.

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Sr.no Content Page
1 Chapter 1: Introduction to the Project 9
A brief on the topic
Objectives of the study
Scope
Limitations
Research Methodology
Utility of the study.
2 Chapter 2 - PART A: Industry Analysis 12
PESTEL analysis
Porter’s Framework
Summary of Industry Analysis
3 Chapter 3 - PART B: Company Analysis 19
Organization history in brief.
Brief details of the Top Management.
Vision and Mission of the organization.
SWOT Analysis
7-S framework
Ansoff Analysis
Summary of Company Analysis
4 Chapter 4 - PART C: Management Concept 51
Introduction to Management Concept
Literature Review
Presentation of Data / Data Analysis
Brief report on Project work done at the
organization
Conclusions
Recommendations

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CHAPTER:1 INTRODUCTION
BREIF ON THE TOPIC
Ratio evaluation is a monetary technique that informs the control and buyers of an enterprise
approximately the enterprise’s monetary reputation. It is usually denoted as a percent and
may be a marker of the increase of an enterprise. It is a quantitative approach that offers a
perception into the liquidity, profitability, and operational performance of a enterprise via
way of means of analysing the monetary statements, stability sheets, and earnings statements.
Ratio evaluation permits buyers to effectively examine the monetary reputation of
corporations via way of means of comparing them beyond in addition to their cutting-edge
monetary statements. The comparative information can assist expect the overall performance
of the enterprise over the years and its destiny overall performance as well. The ratio
evaluation is a totally exciting mathematical and statistical technique this is utilized in quite a
few methods to extract useful records associated with organizations and corporations that
could assist corporations get blessings and a top hand from their competition withinside the
market. The ratio evaluation compares the cutting-edge overall performance of an enterprise
with their preceding statistics in addition supporting them to evaluate the overall performance
in their corporation with their comparable competition. These ratios additionally assist in
tracking and figuring out the problems that may be highlighted and resolved and additionally
in destiny decision-making processes

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OBJECTIVES OF STUDY
Research objectives of the study as follows: -
 To study the perception of customers towards the life insurance sector as an
investment avenue.
 To understand customer’s perception towards LIC INDIA.
 To analyse the financial statement of LIC INDIA with help of ratio analysis
SCOPE OF THE STUDY
This study will examine the perception level of investors towards life insurance sector as an
investment avenue for investing: -
 Conceptual scope: This study is limited to those who prefer to invest in the life
insurance sector,
 Geographical scope: The study is centred to social media, relatives and friends.
Limitations of study
 The study is only centred to social media, relatives and friends.
 The duration of the project is 2 months
Research Methodology
 The data used both primary and secondary data. Primary data collected through
questionnaires, secondary data collected from official websites, articles, etc.
 The study is based on the data collected from LIC INDIA for a detailed study of its
financial statement analysis with the help of ratio analysis. The following study is
based on secondary data which was already prepared by the company

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 This data has been collected fro the financial report of the company. For this study
financial statements of the LIC INDIA.
1.6 UTILITY OF THE STUDY
 The study helpful to under various scheme available as investment options
 It is also useful to understand factors that are considered by customers while investing
in it
 It can be used to analyse the strength , weakness , opportunities and threat to the
industry in the markets.

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CHAPTER 2- PART A: INDUSTRY ANALYSIS
2.1 PESTEL ANALYSIS OF INSURANCE INDUSTRY
A PESTLE analysis is a framework to analyse the key factors (Political, Economic,
Sociological, Technological, Legal and Environmental) influencing an organisation. It offers
people professional’s insight into the external factors impacting their organisation. The
analysis is flexible, so organisations can be use it in a range of different scenarios. People
professionals and senior manager can use the result to guide strategic decision making.
1.Political factor:
 This is taken into consideration to be one of the essential elements and plenty of
uncontrollable factors at the same time as making plans advertising strategy. India has

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democracy shape and federal shape of authorities, it visible now no longer an
unmarried political birthday celebration rules each centre and state.
 The present-day authorities in energy have collection of plans in want of Insurance
agencies like Rastriya Fasal Bima Yojana, Pradhan Matri Jan dhan Yojana, ShramiK
Bima Yojana etc.
2. Economic Factor:
 The insurance industry is heavily influenced by the economic climate. Strong
competition in the insurance market following its opening to private players is an
illustration of how the economy has changed.
 The economy has been impacted by COVID 19, and the insurance industry has also
undergone transformation. Demand for health insurance has increased while demand
for non-life insurance has decreased. Technology and globalisation have an effect on
the insurance industry.
 The use of software has simplified and simplified insurance operations, and overseas
partners now have access to suitable and specialised technology. Internet of things
and robotic process automation are growing in popularity,
3. Social Factors:
 Society’s marketing environment can be understood with the help of demographic and
cultural parameters etc. Demographic parameters like education, income, age, family
etc. plays important role.


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 Some countries and some culture have different views towards insurance. Some
developed countries insurance is compulsory but for developing countries like India
the insurance products need push.
4. Technological Factor:
 Evolving technology has revolutionised every business field and insurance filed as
well. Insurance company, regulators and customers all are benefitted by internet
connectivity.
 Internet has provided transparency about product benefits & operations and increased
connectivity between company and customers.
 Analytical tools helped company to understand the market and consumer behaviour
which further helped in getting, keeping and growing customers.
5. Legal Factor:
 Like many other businesses and ensure fair practice legal bodies are formed. The
Insurance Regulatory and Development Authority of India (IRDAI) is an insurance
regulatory body which controls insurance companies.
 Before developing any new product, it needs IRDAI approval and all other activities
and customer grievances are looked by IRDAI. Apart from IRDAI, the National
Insurance Academy (NIA), Pune, is an institution that offers consultancy and help
insurance companies to train, educate and conduct research.

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6. Environmental Factors:
 Due to global economy change in environmental is observed. The leader style of
management is required for functioning of environment. In LIC democratic style of
leadership is followed.
 Each strategic business unit is endowed with specific responsibility and flexibility in
taking business related decisions. As per the 2015-16 annual report of LIC, the are 73
zones to serve customers. But major decision is taken at head office only.

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2.2 PORTES FIVE FORCES: -
 Competitive Rivalry:
 Highly Competitive Industry
 Large insurance companies offer similar products
 Insurance products similar to commodity
 Companies with low costs, operating efficiency, and superior customer service will be
more competitive
 Consolidation and A activity among the larger companies
 Threat of New Entrants:
 Difficult to enter insurance industry as a small “start-up” player due to capital and
regulatory requirements
 Large financial services companies such as banks or investment banks offering
insurance products
 Entrance of niche companies such as Life Settlement firms that buy existing policies
 Power of Suppliers:
 Suppliers of capital, such as reinsurers, control the cost structure of external capital
which could cause difficulties with insurers to write new business
 Threat of suppliers or other competitors hiring away key professional and executive
talent

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 Power of Buyers:
 Individual consumers are not a major factor
 Brokers and distributors of Genworth products have more bargaining power as to
what products to sell to consumers Availability of Substitutes:
 Many substitutes in the insurance industry
 Most of Genworth’s competitors (Met Life, John Hancock, Prudential, Protective
Life) offer a similar suite of retirement and protection products
 Threat of substitutes:
 Similar in services makes switchover a potent threat
 Investment oriented have switched to other avenues

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SUMMARY OF INSURANCE INDUSTRY ANALYSIS: -
The industry of insurance in India has two major players:-
• Life Insurance Corporation of India (LIC)
• General Insurance Corporation of India (GIC)
However, there are 58 insurance companies in total among which 24 are life
assurance companies. Most of them have international ties.
Under the life insurer segment, LIC is that the sole public sector company while there are six
public sector companies within the no-life insurer vertical. GIC is that the sole national re-
insurer within the industry. The chain has many players like brokers, surveyors and third-
party administrators serving insurance claims.

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The government has always pushed for insurance penetration within the economy. As per the
information from sectoral regulator IRDAI, gross direct premiums of non-life insurers in
India grew nearly 7% to Rs 14,809.27 crore in June this year while the 34 non-life insurance
companies within the country had reported gross direct premium of Rs 13,842.27 crore in
June 2020.
Of these, the 25 general insurance companies registered a 4.9% rise in gross direct premium
during the month at Rs 13,041.51 crore as against Rs 12,435.71 crore within the year-ago
period.
The five-standalone private-sector health insurers witnessed a 46.6% jump in gross direct
premium at Rs 1,556.89 crore from Rs 1,061.94 crore in June 2020.
Two specialised PSU insurers– Agricultural insurer of India and ECGC Ltd — reported a
decline of 38.8% in combined gross direct premium during the month at Rs 210.87 crore
from Rs 344.62 crore a year ago.
Cumulatively, the premium written by all the players during April-June 2021-22 was up
13.8% to Rs 44,434.96 crore as against Rs 39,054.82 crore within the same period of 2020-
21.
PART B- COMPANY ANALYSIS
Company Profile
Life Insurance Corporation of India (LIC) is an Indian statutory insurance and investment
corporation headquartered within the city of Mumbai, India. it's under the ownership of
presidency of India.
The insurance Corporation of India was established on 1 September 1956, when the
Parliament of India passed the life assurance of India Act that nationalized the insurance

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industry in India. Over 245 insurance companies and provident societies were merged to
make the state-owned insurance Corporation of India.
History of LIC INDIA:
Life Insurance in its modern form came to India from England within the year 1818.
Oriental life assurance Company started by Europeans in Calcutta was the
primary insurance company on Indian Soil. All the insurance companies established during
that period were referred to with the aim of taking care of the wants of world
organization and Indian natives weren't being insured by these companies. However, later
with the efforts of eminent people like Babu Muttylal Seal, the foreign insurance companies
started insuring Indian lives. But Indian lives were being treated as sub-standard lives and
heavy extra premiums were being charged on them. Bombay Mutual insurance Society
heralded the birth of first Indian insurance company within the year 1870, and covered Indian
lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance
companies came into existence to hold the message of insurance and social insurance through
insurance to varied sectors of society. Bharat insurance underwriter (1896) was also one
amongst such companies inspired by nationalism. The Swadeshi movement of 1905-1907
gave rise to more insurance companies. The United India in Madras, National Indian
and social insurance in Calcutta and therefore the Co-operative Assurance at Lahore were
established in 1906. In 1907, Hindustan Co-operative insurer took its birth in one amongst the
rooms of the Jorasanko, house of the nice poet Rabindranath Tagore, in Calcutta. The Indian
Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were a number of the
businesses established during the identical period. before 1912 India had no legislation to
manage insurance business. within the year 1912, the life assurance Companies Act, and also
the Provident Fund Act were passed. The insurance Companies Act, 1912 made it necessary
that the premium rate tables and periodical valuations of companies should be certified by an

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actuary. But the Act discriminated between foreign and Indian companies on many accounts,
putting the Indian companies at a drawback.
The first 20 years of the 20 th century saw lot of growth in insurance business. From 44
companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total
business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies
many financially unsound concerns were also floated which failed miserably. The Insurance
Act 1938 was the primary legislation governing not only insurance but also non-life
insurance to produce strict state control over insurance business. The demand for
nationalization of life assurance industry was made repeatedly within the past but it gathered
momentum in 1944 when a bill to amend the insurance Act 1938 was introduced within
the legislature. However, it absolutely was much presently the 19th of January, 1956,
that insurance in India was nationalized. About 154 Indian insurance companies, 16 non-
Indian companies and 75 provident were operating in India at the time of nationalization.
Nationalization was accomplished in two stages; initially the management of the
businesses was confiscate by means of an Ordinance, and later, the ownership too by means
of a comprehensive bill. The Parliament of India passed the insurance Corporation Act on the
19th of June 1956, and also the life assurance Corporation of India was created on 1st
September, 1956, with the target of spreading life assurance far more widely
and specifically to the agricultural areas with a view to achieve all insurable persons within
the country, providing them adequate financial cover at an affordable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, except for its corporate
office within the year 1956. Since life assurance contracts are future contracts and
through the currency of the policy it requires a range of services need was felt within the later

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years to expand the operations and place a branch office at each district headquarter. Re-
organization of LIC transpire and huge numbers of latest branch offices were opened. As
a results of re-organisation servicing functions were transferred to the branches, and branches
were made accounting units. It worked wonders with the performance of the corporation. it
should be seen that from about 200.00 crores of latest Business in 1957 the corporation
crossed 1000.00 crores only within the year 1969-70, and it took another 10 years for LIC to
cross 2000.00 crore mark of recent business. But with re-organisation happening within
the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new
policies.
Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices, 8
zonal offices, 1381 satallite offices and therefore the Corporate office. LIC’s Wide Area
Network covers 113divisional offices and connects all the branches through a Metro Area
Network. LIC has engaged with some Banks and repair providers to supply on-line premium
collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an
addition to customer convenience. but on-line Kiosks and IVRS, Info
Centres are commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad,
Kolkata, New Delhi, Pune and plenty of other cities. With a vision of providing quick
access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The
satellite offices are smaller, leaner and closer to the customer. The digitalized records of the
satellite offices will facilitate anywhere servicing and plenty of other conveniences within
the future.LIC continues to be the dominant life insurer even within the liberalized scenario
of Indian insurance and is moving fast on a brand new growth trajectory surpassing its own
past records. LIC has issued over one crore policies during this year. it's crossed the
milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy rate of

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16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented performance
records in various aspects of insurance business. the identical motives which inspired our
forefathers to bring insurance into existence during this country inspire us at LIC to
require this message of protection to light the lamps of security in as many homes as possible
and to assist the people in providing security to their families.
BREIF DETAILS OF THE TOP MANAGEMENT:
Shri. Mangalam Ramasubramanian Kumar (Chairperson)
Mr. Mangalam R. Kumar may be a Non-Executive Chairman at IDBI Bank Ltd., a md at LIC
Housing Finance Ltd., a boss at LIC (International) BSC, a md at LIC mastercard Services
Ltd., a md at LIC Pension Fund Ltd., a boss at LIC Democratic Socialist Republic of Sri
Lanka Ltd., a boss at life assurance Corp. (Nepal) Ltd, a boss at insurance Corporation
(Singapore) Pte Ltd. and a Zonal Manager-North Central Zone at LIC of India
Kanpur. he's on the Board of Directors at ACC Ltd. Mr. Kumar was previously employed as
a Non-Executive Director by India Cements Ltd., an Independent Non-Executive Director
by province Newsprint & Papers Ltd., and an administrator by insurance Corp of India.

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Shri. Suchindra Mishra (Government Nominee)
The Central Government nominates Shri Suchindra Misra, Additional Secretary, Department
of Financial Services as Director on the Board of Export Import Bank of India (Exim Bank),
Shri Raj Kumar (Managing Director)
Shri Raj Kumar, Managing Director of Life Insurance Corporation of India. Born in the
year 1962, in Nabha Town of Punjab, India, graduated in Science from DAV College,
Jalandhar, India, in 1981, Shri Raj Kumar joined the Corporation as a 13th Batch Direct
Recruit in the year 1984. Presently, he is the Managing Director of Life Insurance

25. 25
SIZE OF THE ORGANIZTION
The life assurance Corporation (LIC) was established in India with a view to produce an
insurance cover against various risks in life. A monolith then, the corporation, enjoyed a
monopoly status and have become synonymous with life assurance. Its main asset is its staff
strength of 1.24 lakh employees and a couple of,048 branches and over six lakh agency force.
LIC has hundred divisional offices and has established extensive training facilities in the
least levels. At the apex, is that the Management Development Institute, seven Zonal Training
Centres and 35 Sales Training Centres. LIC of India is one amongst India’s leading financial
institutions, offering complete financial solutions that encompass every sphere of life. From
commercial banking to stock broking to mutual funds to life assurance to investment banking,

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the group caters to the financials needs of people and company. The LIC features a net of
over Rs. 1,800 crores. With a presence in 82cities in India and it services a customer base of
over 20, 00,000.
At the industry level, together with the govt and therefore the GIC, it's helped establish
the social insurance Academy. It presently transacts individual life
assurance businesses, insurance businesses, Social Security schemes and pensions, grants
housing loans through its subsidiary; and markets savings and investment products through
its open-end fund. It pays off about Rs 6,000 crore annually to five.6 million policyholders.
It has been started with the objectives of spreading insurance widely and specifically to the
agricultural areas, meet the varied insurance needs of the community that will arise within
the changing social and economic environment.
Mission
Ensure and embellish the status of life of folk through fiscal protection by providing
commodity and services of hoped attributes accompanying competing returns, and by
interpretation resources for financial incident.
Vision
A trans-nationally competitive financial conglomerate of significance to societies and Pride
of India.

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SWOT ANALYSIS:
 STRENGHTS:
India’s largest insurance company:
LIC now operates across India accompanying 2048 sufficiently computerized arms, 8
zonal agencies, about 113 divisional agencies,
2,048 arm offices and 1381 subsidiary commissions and corporate buildings. The complete c
ountry is divided into 54 consumer zones and 25 duty centres in various Indian centers and to
wns. Currently, LIC has 1,337,064 individual powers, 242 corporate powers, 89 standard of
comparison agents, 98 brokers and 42 banks for business life protection to the society.
Brand Image:
LIC has a powerful brand countenance in India. Its tagline Yogakshemam
Mahamyaham, that wealth prosperity for all, is frequented or used by
travelers. The Economic Time Brand Equity Survey of 2015 decided LIC as ultimate trustwor
thy security wage earner in India.
Asset base:
LIC has huge assets of around USD 150 billion and is additionally India’s largest investor,
giving it enormous power in India’s financial sector.

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Network of agents:
LIC has 1,337,064 individual powers, 242 allied powers, 89 referral powers, 98
brokers and 42 banks across India, top all corner of the country.
Strong Employees:
LIC has over 1,15,000 employees across India.
Subsidiaries:
LIC has powerful something added like LIC Housing Finance Limited, LIC
Cards Services Limited, LIC Nomura Mutual Fund, LIC (Nepal) Ltd, LIC (Lanka) Ltd,
LIC(International), BSC(C).
 Weakness
Organisational Culture:
LIC is powerfully even to the administration and accordingly trails a really promiscuous and
slow work idea. this is often a proneness distinguished to up-to-date private protection parties
that are strategically savvy.
Poor Advertising Strategy:
compared to the private providers, LIC does not spend too much money on advertising, which
is reflected in the quality of the ads it publishes.
Too Many Restrictions:
Since LIC is an administration-possessed party, it is liable to be subjected many limits and
skilled are always administrative challenges. This creates conclusion making at LIC slow.
Overburdened:
LIC has a large number of staff and most of them work in their own offices. Paying their
salaries and managing the issues is often a big challenge for the company
 Opportunities

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Cyber Threats:
skilled are many cases of facts dangers and breaches of security wholes. At an occasion when
cybersecurity is a danger, security tactics against this threat can show expected an excellent
convenience.
Online Services:
following the progress of connected to the internet charges, public have begun pregnant
knowledgeable alternatives like protection and still knowledge about it is soon above before.
This supports an excuse for providers like LIC, the individual is labour-complete, to humiliate
costs by substitute crowd accompanying electronics.
Shift From Protection to Prevention:
There is an inaccurate current shift from care to stop, that is to say an clue for security
friendships to rapidly donate exertion to entity risk stop alternatively risk relief measures.
More Disposable Income:
Insurance is immediately visualized as a form of expenditure alternatively just care. By
imposing upon this new approach, insurance parties can evolve new brand.
 Threats
Competition:
With the privatisation of protection, LIC has dreaming allure old lustre and immediately faces
hard contest from private protection guests that have brought more lustre to the manufacturing.
Change of Governments:
With each new government, monetary and finances policies change, so procedures should be
revised correspondingly. This pays a lot of hassles

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Technology:
Nowadays, most finances help providers are making science an elemental few their work
through structure place banking undertakings are achieved electronically and connected to the
internet financial income acquired immune deficiency syndrome. However, the LIC still has a
lot commotion to equal skill.
7S Framework
7S of Mckinsey’s 7S strategic framework are: – Strategy, Structure, Systems, Skills, Staff,
Style, a Shared Values.

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Strategy
 Lic Housing Finance needs to build a balance betwixt short run cost stockpiles
and saving allure centre back-and-forth competition.
 Customers see Lic Housing Finance production and duties to give ‘advantage for
services’ proposition plus some extra.
 In allure taste to gain more market share through contesting on prices, Lic
Housing Finance concede possibility prevent hateful costs that can influence
inferior production and help transmittal.
Structure
 The universal has challenged the current makeup and supply chain
administration of the company.
 To be more flexible institution and form itself for future division of akin
magnitudes Lic Housing Finance concede possibility focus on – diversifying
suppliers geographically for fear that atmosphere connected, geopolitical, and
different disruptions don’t impact the long-term continuation of the company.
Systems
 Lic Housing Finance needs to devote effort to something the following fields –
Improve within processes, in the way that risk administration, Customer
Relationship Management (CRM), netting app addition, and dossier imagination
across the institution.
 Lic Housing Finance needs to fix healthy system for “work from home” workers
for fear that there may be better interplay among the operators two together
online and in material atmosphere. It will not only improve output but more
increase the dossier security and high-tech freedom.

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Staff
 Recruitment and detached onboarding – Because of the universal, plenty
employees are occupied from detached districts. To form the surroundings more
all-encompassing for the new employees, Lic Housing Finance bear build
arrangement for detached onboarding to a degree – directory of short videos,
small groups interplay, mechanics manifestations.
 Open chats for people as political whole to approach population at differing
levels in the hierarchy. It will not only help the top administration to
straightforwardly communicate accompanying people as political whole below
but again help in construction an open and understandable education.
Skills
 Lic Housing Finance can build a structured training and development program
for people acting from remote locations.
 Lic Housing Finance can hire fresh talent as more and more people are leaving
their existing jobs because they're not challenging them enough.
Style
 The leadership styles required within the physical location and in remote
scenario are completely different.
 In a physical environment manager can stop by a conversation, provide inputs
and bear the work. But within the remote locations employees must add way
more isolated environment.
 To improve the workflow – leaders should pursue collaborative and inclusive
sort of leadership. Leaders should build smaller teams as a part of larger teams

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Shared Values
 The organization has built a successful business model supported its core values,
vision and mission. It doesn’t need to change much within the shared values
segment.
 One area where it can focus more is – sustainability. Investors are putting plenty
of stress on Environmental, Societal, and Governance issues, so it can bring more
transparency by using the Triple Bottom Line concept in its ESG and financial
reporting.

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BCG matrix: -
The BCG matrix could be a strategic management tool that was created by the Boston
Consulting Group, which helps in analysing the position of a strategic business unit and
also the potential it's to supply. The matrix consists of 4 classifications that
are supported two dimensions. These first of those dimensions is that the industry or
market growth. the opposite of those dimensions is that the relative market share of the
strategic business unit. Strategic business units are placed in one among these 4
classifications. The BCG matrix for LIC will help choose the strategies that may be
implemented for its strategic business units.

35. 35
Stars
 The financial services strategic business unit may be a star within the BCG
matrix of LIC. It operates during a market that shows potential within the future.
LIC earns a major amount of its income from this SBU. LIC should vertically
integrate by acquiring other firms within the supply chain. this may help it in
earning more profits as this Strategic business unit has potential.
 The Number 1 brand Strategic business unit could be a star within the BCG
matrix of LIC, and this is often also the merchandise that generates the best sales
amongst its product portfolio. The potential within this market is
additionally high as consumers are demanding this and similar styles
of products. LIC should undergo a development strategy for this SBU, where it
develops innovative features on this product through research and
development. this may help LIC by attracting more customers and increases its
sales.
 The Number 2 brand Strategic business unit could be a star within the BCG
matrix of LIC as LIC incorporates a 20% market share during this category. It
also the market leader during this category. the category is anticipated to grow
at 5% within the next 5 years, which shows that the market rate of growth is
anticipated to stay high. LIC should use its current products to penetrate the
market. this might be done by improving its distributions which will help in
reaching bent untapped areas. this can help increase the sales of LIC.
Cash Cows
 The supplier management service strategic business unit may be
a projection within the BCG matrix of LIC. This has been operating for over
decades and has earned LIC a major amount in revenue. The market share for
LIC is high, but the market is declining as companies manage their supplier

36. 36
themselves instead of outsourcing it. The recommended strategy for LIC is to
prevent further investment during this business and keep operating this strategic
business unit as long as its profitable.
 The Number 3 brand strategic business unit may be a money-spinner within
the BCG matrix of LIC. this is often an innovative product that encompasses
a market share of 25% in its category. LIC is additionally the market
leader during this category. the general category has been declining
slowly within the past few years. LIC has the facility to influence the
market additionally during this category. It should, therefore, invest in research
and development in order that the brand may be innovated. this may help the
category grow and can turn this project into a star. the general benefit would be a
rise in sales of LIC.
 The international food strategic business unit may be a money-spinner within
the BCG matrix for LIC. This business unit features a high market share of 30%
within its category, but people are now inclined less towards international
food. this transformation in trends has led to a decline within the rate of the
market. The recommended strategy for LIC is to take a position enough to
stay this strategic business unit under operations. If it now not remains profitable
and turns into a dog, then LIC should divest this strategic business unit.
Question Marks
 The local foods strategic business unit may be a interrogation point within
the BCG matrix for LIC. The recent trends within the market show that
buyers are focusing more towards local foods. Therefore, this market is showing
a high market rate of growth. However, LIC incorporates a low market
share during this segment. The recommended strategy for LIC is to speculate in
research and development to return up with innovative features.
This development strategy will make sure that this strategic business unit turns

37. 37
into a money-spinner and brings profits for the corporate within the future.
 The Number 4 brand strategic business unit could be a punctuation mark within
the BCG matrix for LIC. This strategic business unit could be a a part of a
market that's rapidly growing. However, this strategic business unit has been
incurring losses within the past few years. it's also failed within the attempts
made at innovation by research and development teams. The recommended
strategy for LIC is to divest and forestall any future losses from occurring.
 The confectionery strategic business unit may be a punctuation within the BCG
matrix for LIC. The confectionery market is a pretty market that's growing over
the years. However, LIC encompasses a low market share during this attractive
market. The low sales are as a results of low reach and poor distribution of
LIC during this segment. The recommended strategy for LIC is to
undergo penetration, where it pushes to form its product present on more
outlets. this can ensure increased sales for LIC and convert this strategic business
unit into a cash
Dogs
The plastic bags strategic business unit could be a dog within the BCG matrix of
LIC. This strategic business unit has been within the loss for the last 5 years. It
also operates during a market that's declining because of greater environmental
concerns. The recommended strategy for LIC is to divest this strategic business
unit and minimise its losses.
 The Number 5 brand strategic business unit may be a dog within the BCG matrix
for LIC. this is often operating in a very market segment that's declining within
the past 5 years. the corporate also has negative profits for this strategic business

38. 38
unit. However, it's expected that the market will grow within the future with
environmental changes that are occurring. The recommended strategy for LIC
is to speculate within the business enough to convert into a money-spinner. this
may ensure profits for LIC if the market starts growing again within the future.
The synthetic fibre products strategic business unit may be a dog within
the BCG matrix of LIC. The marketplace for such products has been declining,
and as a result of this decline, LIC has been facing a loss within the past 3 years.
The market share for it's also but 5%. The recommended strategy for LIC is to
divest this strategic business unit to minimise from now on losses.
 The artificially flavored products strategic business unit could be a dog within
the BCG matrix for LIC. These products were launched recently, with the
prediction that this segment would grow. However, with increasing health
consciousness, people are now refraining from consumption of artificial
flavours. The market is shrinking, and LIC has no significant market share. The
recommended strategy for LIC is to call back this product.
Some of the strategic business units identified within the BCG matrix for LIC
have the potential of adjusting from their current classification. for instance, a
dog changing to a money-spinner. These are identified within the BCG matrix of
LIC and recommended strategies to confirm such change have also been made.

39. 39
Ansoff analysis
The Ansoff matrix could be a strategic tool developed to facilitate and guide
businesses in decision regarding business growth. The Ansoff matrix offers four
strategic choices to businesses to decide on from – penetration, market
development, development and diversification. a corporation or a business is to
settle on any of those four strategies, or a mix – deepening on various internal
and external factors.
Market penetration
The penetration strategy is employed by businesses that seek growth for existing products in
markets where their brands are existing, and already operational.
Increase production capacity

40. 40

Increased production capacity will allow LIC to succeed in more customers within the
identical market

Increased production capacity would also result in more efficiency and effectiveness –
especially for controlling overhead costs

Controlled overhead costs would result in competitive pricing and would appeal to the
consumers within the same market

Increased attractiveness and competitive pricing within the identical market will result
in increased sales and consumption – and thus a better penetration
Increased marketing investment
 The LIC can even increase its investment in marketing and advertising activities to
extend penetration

The LIC should attempt to develop and style engaging communication
content that's relevant to its various market groups

Engaging communication and investment in marketing activities, and advertising will
allow the LIC to succeed in more consumers within the identical market

41. 41

With higher marketing investment, the LIC are going to be ready to increase
its penetration within the present markets for existing products
Enhanced distribution
 The LIC can explore new and innovative means of distribution

The LIC also can explore new channels of distribution for his or her products

New and enhanced distribution channels and techniques will allow the LIC to
achieve new consumer segments and consumer groups within the same market
– which can be inaccessible previously

Improved supply chains and distribution systems may cause increased penetration
within the identical market by improving accessibility
Competitive pricing
The LIC may introduce competitive pricing and price cuts to extend the appeal of its
products
 Competitive pricing are a source of competitive advantage for the corporate, and
can result in enhanced consumer engagement with the merchandise
 At the identical time, competitive pricing will increase the sales for the LIC and result
in increased penetration
2.5. Reduce operational costs
The LIC can reduce operational costs to extend competitive pricing

42. 42
Competitive pricing will help the LIC increase its sales volume and consumption
 Lower operational costs will cause less costs being passed on to the consumers, and
can make the products offered by the LIC more desirable and affordable
 Higher affordability and accessibility will help the LIC increase its penetration
Acquiring competitors

The LIC can acquire competing players within the market
 The acquisitions will give the LIC leverage in reaching different consumer groups and
segments
 The acquisitions also will allow the LIC to develop leverage through diversified
supply chain and distribution channels
Acquisitions will result in higher penetration through improving the LIC’s
accessibility of various consumer groups and segments in existing markets
Partnerships and joint ventures
 The LIC may enter strategic partnerships and joint ventures with other players within
the market
 These will be players belonging to similar industry, or perhaps different industries
 Strategic partnerships and joint ventures will allow the LIC to realize access to
different consumer groups, and their market behaviour and consumption patterns
 Additionally, the LIC are going to be mitigating risk factors through limited
investment – which successively will safeguard it against potential losses
Joint ventures and partnerships can provide the LIC with guided means of

43. 43
skyrocketing penetration in existing markets
New product benefits and features
 The LIC can identify new features and characteristics in existing products for existing
markets
 This identification will cause innovative and novice product consumption
purposes and behavior
Consumers should even be made attentive to these new and innovative usage patterns
and consumptions ways of the LIC products by the corporate
Increased marketing and communication of recent product use and benefits, together
with characteristics and features will cause increased consumption in existing
consumer groups and segments, moreover as in new consumer segments and groups
 This will facilitate the LIC in improving its overall penetration in existing companies
Increased frequency of consumption

The LIC also can initiate communication and marketing aimed toward increasing the
frequency of consumption of the products in existing markets
 Increased consumption frequency will cause an overall increased consumption
 The LIC will thus be ready to increase the sales volume sold to existing consumers in
existing markets
 Market development
With market development strategies, the LIC can enhance its business growth through
introducing existing products in new markets. this can be possible for the LIC with different
strategies.

44. 44
Research and development
 The LIC should invest in research and development to spot possible new markets and
consumer segments for its products
 The R&D should specialise in identifying and understanding different market
cultures, trends, and consumer behaviours - and the way they differ dim consumer
behaviour patterns in existing markets

Regional expansion

The LIC can expand regionally
 This will include expansion locally to different cities, or within the
identical geographical area
 Regional expansion should also take into consideration any cultural differences which
will have to be accommodated within the expansion process in terms of promoting or
product modifications and consumption methods.
International expansion

The LIC an also enjoy business growth through international expansion
International expansion will allow LIC to access different consumer groups, and
increase its overall share of the pie

International expansion would force the LIC to conduct in-depth PESTLE, Porters 5
forces and SWOT analyses to develop a comparative strategy and overview for
planned expansion

45. 45

The company also will must understand the possible cultural differences, and make
accommodations to its expansion strategy accordingly. Cultural differences should be
taken under consideration within the process of worldwide expansion.
New customer segments

The LIC can even explore new consumer segments within the same marketplace
for its products
 The company can identify new product uses and features and target new consumer
segments for the present products
 This will allow the corporate to tap into new markets and new market trends
within the identical market to assist in growth and expansion
Brand awareness

The LIC also invests in activities of building brand awareness
Building brand awareness is vital to assist the corporate reach new consumer
segments, and increase visibility
 Increased brand awareness for the LIC also
results in increased brand recall – which is vital for purchase decisions
Consequently, building brand awareness is very important for increasing sales, and
driving growth in new markets
Customer education

The LIC should also educate consumers in new markets for its products
This market education is vital for allowing consumers in understanding the
products, and its offerings

46. 46

The consumers will be able to understand consumption patterns for the
products better with education

The LIC increases sales through educating new consumer segments in existing
and new markets to guide to overall business development and growth,
 Product development
When an organization seeks to expand business growth in existing markets through
new products, it's termed as development. The LIC drives development in
several ways.
Modifications to existing products
 The LIC can introduce modifications and enhancements in existing
products to supply consumers new and enhanced offerings
 This will result in increased sales and consumption of the merchandise
Launch new products

The LIC also often engages in R&D activities to know and identify new
points of consumer demand
 The company then undergoes a NPD process, and develops and launches
new products within the marketplace for consumers
 This increases the breadth of the company’s reach, and also allows LIC to
penetrate new market segments

Research and development

47. 47
 LIC regularly invests in research and development – especially pertaining
towards understanding market trends and consumer behaviour
 Investment in R&D has allowed the LIC to stay competitive through
innovation and creativity – in product launches still as other functional
areas like marketing, operations and finances
 Research and development has also built the LIC to become more efficient in
its operations and routine activities.
Strategic partnerships
 The LIC engages in strategic partnerships to explore options
for development in addition
 Strategic partnerships allow LIC to possess access to new product
developments, and processes with limited financial investment- and thus
limited risk involved
 This is important for LIC – to be ready to understand the new product, and
development process together with the market reaction and acceptability
of the identical before engaging in fill fledged production of own
Product quality
 The company can even engage in new development through introducing
different quality products within the same market
 This will allow the LIC to penetrate new market and consumer
segments, still as target new consumer group

48. 48
 Diversification
Diversification refers to business growth and development that happens when a
corporation engages in new development in new markets. Diversification is a very
important and allows businesses just like the LIC to stay competent, innovative, and
competitive – thereby remaining relevant for the patron markets.
Vertical diversification
 Vertical diversification for the LIC means trying to find growth and business
development by introducing new products under existing product lines.
 This means that the new product developments and launches by the LIC would be just
like, and categorized under existing product groups and categories.
Horizontal diversification

Horizontal diversification occurs when the LIC decides to introduce and have
interaction with new product developments and launches that don't seem to be related
to the prevailing products
 It is however beneficial to introduce new products launches and developments for
products that share similar economic environments with the visiting products.
Diversification towards a replacement business

The LIC also can diversify into becoming a conglomerate by engaging during
a different business altogether

49. 49
 Diversification through a replacement business would involve the LIC to explore new
business ideas and choice to launch or acquire for purposes of growth and
development
Mergers and acquisitions

One of the ways through which the LIC may explore conglomeratic growth of
entering new businesses is thru mergers and acquisitions
 The LIC can partner with, or acquire companies and businesses that interest it in an
attempt to diversify into new markets and new consume groups with products and
services that are completely new, and not associated with existing offerings
SUMMARY OF COMPANY ANALYSIS
LIC stands forever Insurance Corporation of India. It started its operations as a company firm
in September 1956 after the insurance of India Act was gone by India’s Parliament in June
1956. The LIC Act came into effect from July 1956. It helped within the nationalization of
the private insurance industry in India. LIC of India was formed by merging
154 insurance companies, 16 foreign companies and 75 provident companies. it's one

50. 50
amongst the biggest financial institutions in India. it's an asset value of over 2,529,390 crores.
The headquarters of LIC is in Mumbai, Maharashtra.
Chapter4- PART C: Main Body of the Project Work
Introduction to management concept
Investors and analysts employ ratio analysis to gauge the financial health of companies by
scrutinizing past and current financial statements. Comparative data can demonstrate how an
organization is performing over time and could be accustomed estimate likely future

51. 51
performance. This data can also compare an organization's financial standing with industry
averages while measuring how a corporation stacks up against others within the identical
sector.
Investors can use ratio analysis easily, and every figure needed to calculate the ratios is found
on a company's financial statements.
Ratios are comparison points for companies. They evaluate stocks within an industry.
Likewise, they measure a company today against its historical numbers. In most cases, it is
also important to know the variables driving ratios as management has the flexibleness to, at
times, alter its strategy to make its stock and company ratios more attractive. Generally, ratios
are typically not employed in isolation but rather along with other ratios. Having an honest
idea of the ratios in each of the four previously mentioned categories will provide you with a
comprehensive view of the company from different angles and facilitate your spot potential
red flags.
Importance of ratio analysis

52. 52
Importance of Ratio Analysis
Ratio analysis could be a vital tool widely utilized by existing shareholders, prospective
investors, suppliers, lenders, competitors, customers (at times), equity research analysts,
government agencies for evaluating tenders, etc. the subsequent are the most reasons for such
wide usage.
 Provide abstract of operational efficiency.
 Reflects the profitability of the corporate.
 Helps in forming opinions and making further decisions.
 Helps in inter and intra-company comparisons.
 To learn more about the importance of ratio analysis, please refer: Importance of
Ratio Analysis
Applications of Ratio Analysis
There are various applications of ratio analysis depending on the purpose and need of the
analyst. Following are some of the major applications of ratio analysis.
 Assess the liquidity position.
 Helps in determining optimal capital structure.
 Depicting the efficiency of the company.
 Determining long-term solvency.

53. 53
Detail of the concept
Ratio analysis will be defined because the process of ascertaining the financial ratios that are
used for indicating the continuing financial performance of an organization using few forms
of ratios like liquidity, profitability, activity, debt, market, solvency, efficiency, and coverage
ratios and few samples of such ratios are return on equity, current ratio, quick ratio, dividend
payout ratio, debt-equity ratio, and so on.
Ratio analysis may be a process used for the calculation of economic ratios or in other words,
for the aim of evaluating the financial wellbeing of a corporation. The values used for the
calculation of economic ratios of an organization are extracted from the financial statements
of that very same company.
Advantages of Ratio Analysis
When employed correctly, ratio analysis throws light on many problems of the firm and also
highlights some positives. Ratios are essentially whistleblowers, they draw the managements
attention towards issues needing attention. allow us to take a glance at some advantages of
ratio analysis.
 Ratio analysis will help validate or disprove the financing, investment and operating
decisions of the firm. They summarize the finances into comparative figures, thus
helping the management to check and evaluate the financial position of the firm and
therefore the results of their decisions.

54. 54
 It simplifies complex accounting statements and financial data into simple ratios of
operating efficiency, financial efficiency, solvency, long-term positions etc.
 Ratio analysis help identify problem areas and produce the eye of the management to
such areas. a number of the data is lost within the complex accounting statements, and
ratios will help pinpoint such problems.
 Allows the corporate to conduct comparisons with other firms, industry standards,
intra-firm comparisons etc. this can help the organization better understand its fiscal
position within the economy.
Limitations of Ratio Analysis
While ratios are important tools of monetary analysis, they’d have some limitations, such as
The firm can make some year-end changes to their financial statements, to boost their ratios.
Then the ratios find yourself being nothing but window dressing.
 Ratios ignore the worth level changes because of inflation. Many ratios are calculated
using historical costs, and that they overlook the changes in index number between
the periods. This doesn't reflect the proper financial situation.
 Accounting ratios completely ignore the qualitative aspects of the firm. They only
take into consideration the monetary aspects (quantitative)
 There are not any standard definitions of the ratios. So firms is also using different
formulas for the ratios. One such example is Current Ratio, where some firms take
into consideration all current liabilities but others ignore bank overdrafts from current
liabilities while calculating current ratio

55. 55
 And finally, accounting ratios don't resolve any financial problems of the
corporate. they're a method to the top, not the particular solution.
Current ratio
The current ratio is a liquidity ratio that measures whether a firm has enough resources to
meet its short-term obligations.
Current Ratio = Current Assets / Current Liabilities
Quick ratio
The quick ratio is an indicator of a company’s short-term liquidity position and measures a
company’s ability to meet its short-term obligations with its most liquid assets.

56. 56
Net profit ratio
Net profit ratio is a profitability ratio which is expressed as a percentage hence it is
multiplied by 100. Net sales include both Cash and Credit Sales, on the other hand, net profit
is the net operating profit i.e., the net profit before interest and taxes.
Asset Turn Over Ratio
The asset turnover ratio is one of the ratios that measure the efficiency of a company by
finding the amount of revenue generated from its assets.
Solvency ratio
The solvency ratio helps us assess a company’s ability to meet its long-term financial
obligations.

57. 57
NET INCOME+DEPRICATION / LIABILITIES
Incurred Claim Ratio
Incurred Claims means a Liability related to services or benefits provided under a Benefit
Plan
Incurred Claim Ratio = Net claims incurred divided by Net premiums
collected

58. 58
Literature Review:
Bollen (1999)
conducted a study on Ratio Variables on which he found three different uses of ratio
variables in aggregate data analysis: (1) as measures of theoretical concepts, (2) as a way to
control an extraneous factor, and (3) as a correction for heteroscedasticity. within the use of
ratios as indices of concepts, an issue can arise if it's regressed on other indices or variables
that contain a standard component. as an example, the connection between two per capita
measures may be confounded with the common population component in each
variable. Regarding the second use of ratios, only under exceptional conditions will ratio
variables be an acceptable means of controlling an extraneous factor. Finally, the utilization
of ratios to correct for heteroscedasticity is additionally often misused. Only under special
conditions will the common form forgers soon with ratio variables correct for
heteroscedasticity. Alternatives to ratios for every of those cases are discussed and evaluated.
Cooper (2000)
conducted a study on Financial Intermediation on which he observed that the quantitative
behavior of business-cycle models during which the intermediation process acts either as a
source of fluctuations or as a propagator of real shocks. In neither case will we find
convincing evidence that the intermediation process is a crucial element of aggregate
fluctuations. For an economy driven by intermediation shocks, consumption isn't smoother
than output, investment is negatively correlated with output, variations within the capital
stock are quite large, and interest rates are procyclical. The model economy thus fails to
match unconditional moments for the U.S. economy. We also structurally estimate
parameters of a model economy within which intermediation and productivity shocks are
present, with the intermediation process to propagate the important shock. The unconditional
correlations are closer to those observed only the intermediation shock is comparatively
unimportant.
Gerrard (2001)
conducted a study on The Financial Performance on which he found that Using ratio analysis
the financial performance of a sample of independent single-plant engineering firms in Leeds
is examined with relevancy structural and locational differences in establishments. A number

59. 59
of determinants of performance are derived and tested against the constructed data base.
Inner-city engineering firms perform relatively less well on all indicators of
performance compared with outer-city firms. The study illustrates the importance of using
different measures of performance since this affectsthe magnitude and significance of the
results. support is necessary to sustain engineering within the heart within the long term.
Schmidgall (2003)
conducted a study on Financial Analysis Using the Statement of money Flows on which he
observed that Managers use many financial ratios to evaluate the health of their businesses.
With the recent requirement of an announcement of money flow (SCF) by the Financial
Accounting Standards Board, managers now have a brand new set of ratios that may provides
a realistic picture of the business. The ratios include cash flow-interest coverage, cash flow-
dividend coverage, and income from operations to income in investments. These ratios are
particularly useful because they show changes in a very hotel or restaurant's cash position
over time, rather than at a given moment, as is that the case withmany other ratios.
Murinde (2003)
conducted study on Corporate Financial Structures on which he observed that the financial
structure of a sample of Indian non-financial companies employing a new and unique dataset
consisting of a panel containing the published accounts of just about 900 companies that
published a full set of accounts once a year during 1989-99. in a very new departure within
the literature, the dataset includes quoted and unquoted companies. We compare the sources-
uses approach to analyzing company financial structures with the asset-liability approach. We
use both approaches to characterize and to match the financial structures of Indian companies
over time; between quoted and unquoted companies; and between companies which belong to
a business group and those that don't. Finally, we compare our results to those obtained
previously for India and for the industrial countries

60. 60
Presentation of Data and Data Analysis:
Questionnaire
Gender-
Gender Responds
Male 33
female 17
Total 50
Out of 50 respondence majority are female 66% compare to males.

61. 61
Age
AGE RESPONDS
BELOW 25 18
25 TO 35 14
35 TO 45 13
45 AND ABOVE 6
TOTAL 50
Figure shoes that below are majority respondence compared to other age groups

62. 62
OCCUPATION
OCCUPATION RESPONDS
Government 7
Employee 16
Student 18
Business 8
others 1
TOTAL 50
Students’ majority is more in the survey which is 36%

63. 63
Are you aware about different options among Investment?
Awareness about different
option in investment
Responds
yes 17
no 20
Some knowledge 13
Total 40
40% of them are not aware about different options among investment

64. 64
What type of insurance do you have?
Type of investment Responds
Life insurance 13
Investments 24
Others 13
total 50
48% population is wants insurance as an investment decision.

65. 65
From which sector do you have insurance?
Sector Respondence
Public 22
Private 28
Total 50
People have now started trusting on private players in market which 28% of the survey

66. 66
Why do you prefer to purchase an insurance policy?
Reason to purchase an
insurance policy
Respondence
Tax saving 10
Future protection 12
Life security 18
Retirement plans 6
Others 4
Total 50
36% people are wanting insurance as an life security to them

67. 67
Your perception about life insurance?
Perception of life
insurance
Respondence
A saving tool 10
A tax saving income 21
A tool to protect your
family
15
Total 50
21% are have perception that insurance is a tax saving income

68. 68
What you look in insurance company before investing?
Before investing what
customers looks for
Respondence
A trusted plan 11
Friendly service 21
Good plan 14
Accessibility 4
Total 50
21% people expect to have friendly service from company

69. 69
Are you satisfied by the current plan?
Satisfaction level Respondence
Yes 31
No 19
Total 50
62% people are satisfied by their current plan

70. 70
Your overall perception towards LIC INDIA?
Perception towards
LIC India
Respondence
Below Average 5
Average 26
Excellent 14
Professional 5
Total 50
Perception towards LIC India is average 52%

71. 71
Features that made you to invest in LIC India?
Features made you invest in LIC
India
Respondence
Larger risk coverage 12
Easy access to agents 15
Low premium 13
Company’s reputation 9
Money back guarantee 1
Total 50
30% still needs easy access of agents to maintain trust

72. 72
Brief report on project work done at the organization
 ACS use an intern to save the times of employees and gives us experience by
 conducting a survey.
 ACS is a offline mode of survey because of their surveyor can pursuit the customer
and
 get genuine.
 AS follow a great feedback principle in which the customer not ready to invest or are
 not available then ACS approaches again after few months.
 ACS collaborates with other bank like Bank of Baroda so the client gets the best deal
 possible guaranteed by ACS as well as the bank.
 ACS is also following the code of conduct like DR report which means daily sales
 report.
 ACS Is also trained as about stock market even though they were in Insurance
company.
 ACS taught us about ratio analysis
 ACS taught us calculation of CTC.
 ACS prefers the old method of advertise of their policy by printing ADS on
newspaper
 and banner.

73. 73
Conclusion
The market potential for personal insurance companies is found to be greater within the
future as most of the Indians are of the opinion that non-public insurance companies would
be ready to perform well within the future. The private and public insurance companies need
to take immediate steps to appoint more agents and / or advisers additionally to employees in
order that more publicity is provided between people. The private and public insurance
companies need to target the factor like "prevention of loss' "assured returns' and future
investment', they'll also specialise in an insurance amount of rupees 1-2 lakhs with a
reimbursement policies hence the market has potential the private and public insurance
companies that are taking immediate states can tap it easily rapidly Insurance in India wont to
be firmly managed and hoarded by state-run insurance providers. After the move towards
financial change within the mid-1990s, different arrangements to redo the insurance picture at
long last brought about the section of IRDA Act in 1999. Altogether, the insurance business
was opened on two fronts. The industry is facing tough competition where finding a
replacement customer is difficult and retaining the existing one is costlier. Bringing and
keeping the non-policy holders under the umbrella of insurance requires a deliberate loom.
Also, the matter of slow growth, rising cost, failing distribution structure are faced by
insurance companies. insurance companies are at a boom whereas non-life remains facing the
matter of heavy claims, guarantying losses, inefficiencies in administration etc.

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Recommendations
LIC India is India’s is biggest insurance company which recently launched its IPO with so
many expectations to the customer and in market it was hyped to get over subscribed but due
to external factors and more lic price went 10% undersubscribed that means some where lic
India lacks in terms of valuation and financial postion.
Lic india has a huge network of human resource which is till a difficult task for lic to allocate
this as other competitors are using online portal and lic can use this human resource in mant
financial activities like mutual fund, broking and many more
Analyst sees future in lic india millions including me.

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References And Annexures:-
www.case48.com/bcg-matrix/13781-LIC
www.invesopedia.com
www.google.com
www.irda,gov.in
www.isrjournals.in
www.licindia.in
www.moneycontrol.com
www.formulahub.com
www.metlife.com
Anthony, R.N., and J.S. Reece. 1975. Principles of Management Accounting. Homewood, IL:
Richard Irwin Inc.
Batty, J. 1966. Management Accountancy. London, UK: MacDonald and Evans Ltd.
Damodaran, A. 2002. Investment Valuation: Tools and Techniques for Determining the
Value of Any Asset. 2nd ed. New York, NY: Wiley Finance Publishers.
Finney, H.A., and H.E. Miller. 1972. Principles of Accounting, Introductory. 7th ed.
Englewood Cliffs, NJ: Prentice-Hall.

76. 76
QUESTIONNAIRE
1) Gender?
a) Male
b) Female
2) Age?
a) below 25
b) 25 to 35
c) 35 to 45
d 45 and above
3)Occupation?
a) Government
b) Employee
c) Student
d) Business
e) Others
4) Are you aware about different options among Investment?
a) Yes
b) No
c) some knowledge
5) What type of insurance do you have?
a) Life insurance
b) Investment
c) others
6) From which sector do you have insurance?
a) public
b) private

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7) Why do you prefer to purchase an insurance policy?
a) Tax saving
b) Future protection
c) Life security
d) retirement plans
e) others
8) Your perception about life insurance?
a) A saving tool
b) Tax saving income
c) tool to protect family
9) What you look in insurance company before investing?
a) A trusted plan
b) friendly service
c) good plan
d) accessibility
10) Are you satisfied by the current plan?
a) Yes
b) No
11) Your overall perception towards LIC India?
a) below average
b) average
c) excellent
d) professional
12) Features that made you to invest in LIC India?
a) large risk coverage
b) easy to access agents
c) low premium
d) company's reputation
e) money back guarantee