1. University of Mumbai
ICLES' MOTILALJHUNJHUNWALA COLLEGE OF ARTS,
SCIENCE AND COMMERCE, VASHI NAVI MUMBAI
A PROJECT REPORT ON
“PROMOTIONAL STRATAGIES OF LIFE
INSURANCE COMPANIES WITH REFERANCE
TO HDFC BANK”
SUBMITTED BY
RASHMITA BHIMJI MANONDRA
ROLL NO – 210615026
TYBBI (SEMESTER VI)
IMPARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE BACHELORS OF BANKING AND INSURANCE
ACADEMIC YEAR 2020-21
UNDER THE GUIDANCE OF ASST. PROF. AARTI
2. ACKNOWLEDGEMENT
I would like to thank “ICLES’ MOTILALJHUNJHUNWALA COLLEGE,
VASHI’’ for giving me this golden opportunity to do a project on
“PROMOTIONALSTRATAGIES OF LIFE INSURANCE COMPANIES
WITH REFERANCE TO HDFC BANK’’.
I would like to thank our principal Dr. Poonam Singh for her support.
I would also like to thank our head department of banking and insurance and
my guide Ms. Aarti Patil for her guidance and constant supervision and
providing necessary information regarding the project.
I’m heartily thankful to my family and friends for helping me in selecting this
project and supporting me throughout the project.
I’m making this project for gaining knowledge.
DATE:
RASHMITA BHIMJI MANONDRA
TYBBI
3. DECLARATION
I, RASHMITA BHIMJI MANONDRA student of TYBBI, ICLES’
MOTILAL JHUNJHUNWALA COLLEGE OF ARTS, SCIENCE AND
COMMERCE VASHI, hereby declare that I have submitted my project on
“MARKETING MIX OF INSURANCE INDUSTRY’’ in academic year 2021-
22.
The information submitted by me in this project is true and original to the best
of my knowledge.
DATE:
Signature:
4. INDEX
SR. NO TOPIC PG. NO
EXECUTIVE
SUMMARY
1
1.1
1.2
1.3
Introduction
Objective of Study
Literature Review
Research Methodology
2 Marketing Mix
3 Importance of Marketing Mix In
Insurance Industry
4 Process in Marketing Mix – Concepts
& Types Of Process
5 Advantages & Disadvantages
of Marketing Mix In Insurance
Industry
6 The 7P’s
7 Balancing the Marketing Mix through
Creative and Innovative Strategies
8 Marketing Mix framework / structure
The 4Cs of Marketing Mix
The 7Cs Compass Model
9 Retail Marketing Mix and The 7 P’s of
the Retail Mix
5. 10 Obstacles to Marketing Mix In
Insurance Industry
11 The Marketing Mix from the
Customer’s Perspective
12 Conclusion
Finding
Suggestion
6. EXECUTIVE SUMMARY
Promotional strategies play a key role in sales performance of any institution. Insurance
products are generally difficult to sell and require well thought out marketing strategies that
will include persuasive promotional activities. A survey by Insurance Regulatory Authority
(2013) found low consumer demand for insurance products as the biggest challenge to the
growth of the industry in Kenya. Engaging in promotional activities is costly and the results
uncertain. Hence the purpose of this study was to determine the effect of promotional
activities on sales performance of Insurance companies. The study was guided by the
following specific objectives: to determine the effect of sales promotion, advertising,
personal selling and public relations on sales growth of insurance companies. The study
adopted a descriptive research design. The population of the study comprised of the branch
managers, unit managers and salespeople of insurance companies operating in Embu County,
Kenya. The sample size of the study was 175 respondents. A response rate of 85.7% was
achieved. Data was analyzed using both descriptive and inferential statistics. Overall, the
study established that promotional activities significantly affected sales performance of
insurance companies even though at an individual level, public relations did not have any
significant effect on sales performance. The study recommends that insurance companies
should engage in maximum utilization of the entire promotion mix to enhance sales growth.
The study suggests that further research be carried out to determine the effect of the entire
marketing mix on sales performance of the insurance and other related industries using
different performance measurements. Future researchers will utilize this study as a reference
point. Policy makers can reference the study in formulating fiscal policies for the insurance
and overall financial sector.
7. CHAPTER – 1 INTRODUCTION
Life insurance is designed to protect life and to product family against financial uncertainties
that may result due to unfortunate demise or illness. It can also view as a comprehensive
financial instrument, as a part of the financial planning offering savings & investment
facilities along with cover against financial loss. By choosing the right policy as per the
needs. i.e. customized solutions, you will be able to plan for a secure future for yourself and
your loved ones.
We all have different financial neals and objectives. But life insurance plays a fundamental
role in most of our plans for financial security. That's because of the variety of life insurance
plans available and the many ways they can be customized to meet unique needs at different
periods of your life.
Insurance sector is a booming sector and the penetration in India is quiet low, So, all the
private players are trying increase the market share in the public. This study also involves
creating awareness among the urban and rural consumer about the insurance sector and also
the various policies involving various premium rates. Since the penetration of private
companies and policies is low among the consumer, it is necessary to create awareness about
life insurance policies and to know the satisfaction lead among consumer. Hence the present
studies entitled awareness about it among the consumer.
8. 1.1OBJECTIVES OF STUDIES
To create an awareness about insure company and policies.
To identify the potential policy holders among and users and to create a relationship
between the companies and potential customers.
To find out the customer satisfaction level among the go with their respecting
insurance companies in which they hold the polices.
To find out the awareness of people about insurance policies.
To affair suggestions based on findings.
9. 1.2 LITERATURE REVIEW
Internet insurers have a 23.0% cost advantage over agency insurers and a 5.1% cost
advantage over their nearest rivals, the direct response insurer. The Internet is the most
cost-effective means of selling insurance ever devised. This is important since consumers
buy basic "commodity-type" insurance products on price considerations in the majority of
cases (Data Monitor, 1996).
Insurance companies selling and servicing over the Internet will have a cost advantage over
traditional insurers in the range of 58% to 71% over the life time of a customer. Savings are
driven by reduced sales costs, lower customer service and operations costs, and cheaper
and better information capture. (Booz-Allen & Hamilton, 1997).
Insurance companies and producers are already taking advantage of the commercial
potential of the Internet by establishing websites (National Association of Insurance
Commissioners, 1998), The insurance industry "remade itself" in response to new issues and
new technologies (Insurance marketing issues). Commercial retail insurance insurance
marketing differs from physical products marketing, as well as other financial services
marketing (Nogueira & Oliveira, 2003). In banking, information technology investments have
enabled banks to rely more upon ATMs become standardized and automated to the point
where far fewer loan officers are needed to manage a portfolio of a given size (Wilhelm,
2001). The early empirical evidence on the impact of the Internet on insurance prices is
limited to a study by Brown and Goolsbee (2002).
Robert P. Hartwig, president of the Insurance Information Institute, says rumors of the
insurance agent's death have been greatly exaggerated. Online insurance shopping is already
a crowded space, which in addition to comparison portals includes the powerful marketing
arms (Robert P. Hartwig, 2015).
10. 1.3 RESEARCH METHODOLOGY
Data collection:- To fulfil the objectives of study ,
Secondary Data have been taken into consideration. . In that I will be focusing mainly
PROMOTING STRATIGIES OF LIFE INCURANCE COMPANIES AND STRATIGIES
OF HDFC BANK .
SECONDARY DATA
There was extensive use of secondary information in the form of websites of HDFC life
insurance(my insurance club .com) , circulars , reports(http;/bizfluent.com).
11. CHAPTER- 2 Insurance Industry
The businessof insurance startedwithmarine business.Traders,whousedtogatherinthe Lloyd’s
coffee house inLondon, agreedtoshare the lossestotheirgoodswhile beingcarriedbyships.The
lossesusedtooccur because of pirateswhorobbedonthe highseasor because of bad weather
spoilingthe goodsorsinkingthe ship.The firstinsurance policywasissuedin1583 in England.In
India,insurance beganin1870 withlife insurance beingtransactedbyanEnglishcompany,the
Europeanand the Albert.The firstIndianinsurance companywasthe BombayMutual Assurance
SocietyLtd,formedin1870. Thiswasfollowedbythe Oriental LifeAssurance Co.in1874, the Bharat
in1896 and the Empire of Indiain1897.
Later, the HindustanCooperative wasformedinCalcutta,the UnitedIndiainMadras,the Bombay
life inBombay,the National inCalcutta,the New IndiainBombay,the JupiterinBombayandthe
Lakshmi inNewDelhi.These were all Indiancompanies,startedasaresultof the swadeshi
movementinthe early1900s. By the year 1956, whenthe life insurancewasnationalizedandthe
Life Insurance Corporationof India(LIC) wasformedon1st September1956, there were 170
companiesand75 providentfundsocietiestransactinglife insurance businessinIndia.Afterthe
amendmentstothe relevantlawsin1999, the L.I.C. didnothave the exclusive privilegeof doinglife
insurance businessinIndia.By31.3.2002, elevennew insurershadbeenregisteredandhasbegunto
transact life insurance businessinIndia.
Needof Insurance
Assetsare insured,because theyare likelytobe destroyed,throughaccidentaloccurrences.Such
possible occurrencesare calledperils.Fire,floods,breakdowns,lightning,earthquakes,etc,are
perils.If suchperilscancause damage to the asset,we saythat the assetis exposedtothatrisk.
Perilsare the events.Risksare the consequentiallossesor damages.The riskto an ownerof a
building,becauseof the peril of anearthquake,maybe a few lakhsora few crores of rupees,
dependingonthe costof the buildingandthe contentsinit.
The risk onlymeansthatthere isa possibilityof lossordamage.The damage mayor may not
happen.Insurance isdone againstthe contingencythatitmayhappen.There hasto be an
uncertaintyaboutthe risk.Insurance isrelevantonlyif there are uncertainties.If there isno
uncertaintyaboutthe occurrence of an event,itcannotbe insuredagainst.Inthe case of a human
being,deathiscertain,butthe time of deathisuncertain.Inthe case of a personwhoisterminally
ill,the time of deathisnot certain,thoughnotexactlyknown.He cannotbe insured.
Insurance doesnotprotect the asset.Itdoesnot preventitslossdue tothe peril.The peril cannot
be avoidedthroughinsurance.The peril cansometimesbe avoided,throughbettersafetyand
damage control management.Insurance onlytriestoreduce the impactof the risk onthe ownerof
the assetand those whodependonthatasset.It onlycompensatesthe losses –and that too,not
fully.
Onlyeconomicconsequencescanbe insured.If the lossisnotfinancial,insurance maynotbe
possible.Examplesof non-economiclossesare love andaffectionof parents,leadershipof
managers,sentimental attachmentstofamilyheirlooms,innovate andcreative abilities,etc.
13. PROFILE OF HDFC STANDARD LIFE INSURANCE Co.Ltd
HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies,
which offers a range of individual and group insurance solutions. It is a joint venture between
Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance
institutionanda Group Company of the Standard Life, UK. HDFC Standard Life is one of the leading
life insurance companieshavingatrack record of declaringbonuseseveryyearsince inception.HDFC
as on March 31, 2007 holds 81.9 per cent of equity in the joint venture.
STRENGTHS OF HDFC STANDARD LIFE INSURANCE
FINANCIAL EXPERTISE
HDFC Standard Life Insurance has the financial expertise required to manage long-term
investments safely and efficiently.
RANGE OF SOLUTIONS
HDFC Standard Life Insurance has a range of individual and group solutions, which can be
easily customized to specific needs. HDFC Standard Life Insurance’s group solutions have
been designed to offer a complete flexibility combined with a low charging structure to
people.
TRACK RECORD
HDFC Standard Life Insurance’s cumulative premium income, including the first year
premiums and renewal premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06.
It has covered over 1.6 million individualls out of which over 5, 00,000 lives have been
covered through our group business tie-ups.
VISION
The most successful and admired life insurance company, which mean that we are the most
trusted company, the easiest to deal with, offer the best value for money, and set the
standards in the industry. 'The most obvious choice for all'
VALUES
Values that HDFC Standard Life Insurance observes are
Integrity
Innovation
Customer centric
People Care “One for all and all for one”
Team work
14. Joy and Simplicity
Major competitors of HDFC STANDARD LIFE
Life Insurance Corporation of India
ICICI Prudential Life Insurance
Bajaj Allianz Life
SBI Life Insurance
15. CHAPTER-3 PRODUCT PROFILE OF HDFC STANDARD LIFE
HDFC Standard Life Insurance offers various insurance solutions to meet every ones need. HDFC
Standard Life Insurance offers various insurance solutions to individuals as well as to companies
looking to provide benefits to their employees.
The products that are offered by are mainly classified as follows,
Individual Products.
Group Products.
INDIVIDUAL PRODUCTS
1. Production plan
(a)Term assurance plan
A pure risk cover plan, which gives you protection against the uncertainties of life. The Term
Assurance Plan is an insurance policy that is designed to help secure your family's financial
needs.
(b) Loan cover term assurance plan
An ideal way to cover your home loan or other loan liabilities. This Plan provides a lump
sum on the unfortunate death of the life assured within the policy term.
2. Investment plan
(a)Single premium whole of life plan
Our Single Premium Whole of Life plan is well suited to meet your long term investment
needs. We provide you with attractive long term returns through regular bonuses.
3. Pension plans
(a)Personal pension plan
It provides a post retirement income in your golden years and gives you the flexibility to
plan your retirement date and Gives you tax benefits on your premiums. The plan receives
simple Reversionary Bonuses, which are usually added annually. At the end of the term an
additional Terminal Bonus may be paid depending on the performance of the underlying
investment.
16. (b) Unit linked pension
It's an outstanding investment opportunity by providing a choice of thoroughly researched
and selected investments and post retirement income for life and also Flexibility to plan your
retirement date.
(c)Unit linked pension plus
It's an outstanding investment opportunity by providing a choice of thoroughly researched
and selected investments. Regular Loyalty Units to boost your fund value every year and post
retirement income for life and also Flexibility to plan your retirement date.
4. Savings plan
(a)Endowment assurance plan
It's an ideal way to secure your long-term financial goals. Valuable protection to your family
by way of lump sum payment in case of your unfortunate demise within policy term and
Lump sum payment on survival up to maturity date
(b) Unit linked Endowment
It's an outstanding investment opportunity by providing a choice of thoroughly researched
and selected investments. Valuable protection to your family in case you are not around and
Flexible benefit combinations and payment options and also flexible additional benefit
options such as critical illness cover.
(c) Unit linked Endowment plus
It's an outstanding investment opportunity by providing a choice of thoroughly researched
and selected investments. Regular Loyalty Units to boost your fund value every year.
Valuable protection to your family in case you are not around and Flexible benefit
combinations and payment options and also flexible additional benefit options such as critical
illness cover.
(d) Money back plan
A proportion of the basic sum Assured as Cash lump sums at regular 5-year intervals within
the policy term an ideal way to secure your long- term as well as short-term financial goals
and a lump sum payment on survival up to maturity date. Valuable protection to your family
by way of lump sum payment in case of your unfortunate death within the policy term.
(e) Children's plan
The Children's Plan is designed to secure your child's future by giving your child a
guaranteed lump sum, on maturity or in case of your unfortunate demise, early in the policy
term. The premiums, paid by you, are invested by the company to give you good long-term
returns.
17. (f) Unit linked young star
It's an outstanding investment opportunity by providing a choice of thoroughly researched
and selected investments. Valuable protection to your child in case you are not around.
Flexible benefit combinations and payment options and also flexible additional benefit
options such as critical illness.
(g)Unit linked young star plus
It's an outstanding investment opportunity by providing a choice of thoroughly researched
and selected investments. Regular Loyalty Units to boost your fund value every year and
Valuable protection to your child in case you are not around and Flexible benefit
combinations and payment options and also flexible additional benefit options such as critical
illness cover.
