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Financial planning indian_market-hdfc

  2. 2. Directorate of Distance LearningGuru Jambheshwar University of Science and Technology Hisar (India) ACKNOWLEDGEMENTWe take due pleasure to thank all those who have helped & supported us for completionof this project.Mr. Pradeep Sharma (Territory Manager) HDFC Standard Life, our Project Guide,for guiding us throughout our internship which proved to be very essential for ourproject.We are extremely grateful to him for giving me his time and valuable inputs for ourproject. His valuable suggestion and guidance proved to be indispensable for thecompletion of my project.I would like to thank Ms. Anju Dwivedi who helped me in making this project. I alsothank to my faculty for their valuable support. I take this opportunity to thank all thosewho have directly or indirectly helped me specially JAGANNATH INSTITUE OFMANAGEMENT SCIENCES who has provided me an opportunity to do my summerinternship in HDFC Standard Life Insurance co.All the other people at HDFC Standard Life are regarded with great gratitude for theirvaluable time and support without which our project would not have been completed.MOHIT AGARWAL 2
  4. 4. PREFACEThe purpose of this project is to study the training procedure provided by HDFCStandard Life Insurance Company Ltd. to Financial Consultant (FC’s) and its FinancialAnalysis.It’s been a great experience to work with such an esteemed organization. I am grateful tomy guide Mr. Pradeep Sharma (Territory Manager) for providing me right directionand sparing his valuable time to discuss on various issues of training procedure &financial analysis of HDFC Standard Life Insurance Company Ltd.This project report has been divided into different chapters. viz.The project work has been a great experience for me in it was a learning process. EarlierI was unaware of many things regarding to insurance industry. But after working withthis organization, I got the knowledge of insurance apart of my project work.Throughout the development of the project it has been my own endeavor to tailor likeapproach, subject matter & presentation according to the requirements of its readers. Thelanguage has been kept simple and the entire discussion has been built on a logical &coherent outlines. Thus this project will meet the requirements of its readers. 4
  6. 6. EXECUTIVE SUMMARYOverall, the life insurance and pension sector is set for rapid changes and growth in theyears ahead. Delivering service, building trust and being innovative are key areas inwhich any company will have to excel in order to do well in the long road ahead.Different companies will take different approaches and it would be myriad of solutionsthat will be found to delight the Indian customer.During the first part, I was given complete classroom training about the various unitlinked as well as the traditional plans and solutions which the company offers.Later, Market Research was done through various activities and tele-calling which arediscussed further in the report. Activities led to practical exposure and taught me theaspects of customer dealing.Finally, interesting conclusions were drawn out of the data collected regarding theAwareness of Financial Planning among the people in today’s environment.It was great experience because selling an insurance product demands a great dealof confidence and product knowledge. 6
  7. 7. TABLE OF CONTENTS Page No.1. Introduction to Industry 01- 192. Introduction to Company 19- 343. Research Methodology 35-39 a) Title 36 b) Objectives 36 c) Significance of study 37 d) Research design 37 e) Sampling methodology 38 f) Limitations 394. Facts and Findings 40-485. Data Analysis and Interpretation 49-636. Recommendations 64-657. Conclusion 66-698. Bibliography 70-71 7
  8. 8. 9. Annexure 72-75 8
  9. 9. OverviewWith largest number of life insurance policies in force in the world, Insurance happens tobe a mega opportunity in India. It’s a business growing at the rate of 15-20 per centannually.Together with banking services, it adds about 7 percent to the country’s GDP .In spite ofall this growth the statistics of the penetration of the insurance in the country is verypoor. Nearly 80 per cent of Indian population is without life insurance cover while healthinsurance and non-life insurance continues to be below international standards. And thispart of the population is also subject to weak social security and pension systems withhardly any old age income security. This it-self is an indicator that growth potential forthe insurance sector is immense.Historical PerspectiveThe insurance came to India from UK; with the establishment of the Oriental Lifeinsurance Corporation in 1818.The Indian life insurance company act 1912 was the firststatutory body that started to regulate the life insurance business in India. By 1956 about154 Indian, 16 foreign and 75 provident firms were been established in India. Then thecentral government took over these companies and as a result the LIC was formed. Sincethen LIC has worked towards spreading life insurance and building a wide networkacross the length and the breath of the country.Important milestones in the life insurance business in India:1912: The Indian Life Assurance Companies Act enacted as the first statute to regulatethe life insurance business. 9
  10. 10. 1956: 245 Indian and foreign insurers and provident societies were taken over by thecentral government and nationalized. LIC formed by an Act of Parliament- LIC Act1956- with a capital contribution of Rs.5 cr. from the Government of India.Important milestones in the general insurance business in India are:1907: The Indian Mercantile Insurance Ltd. set up- the first company to transact allclasses of general insurance business.1957: General Insurance Council, a wing of the Insurance Association of India, frames acode of conduct for ensuring fair conduct and sound business practices.1972: The general insurance business in India nationalized through The GeneralInsurance Business (Nationalization) Act, 1972 with effect from 1st January 1973. 107insurers amalgamated and grouped into four companies- the National InsuranceCompany Limited, the New India Assurance Company Limited, the Oriental InsuranceCompany Ltd. and the United India Insurance Company Ltd. GIC incorporated as acompany. 10
  11. 11. Insurance Sector ReformsPrior to liberalization of Insurance industry, Life insurance wasmonopoly of LIC.In 1993, Malhotra Committee- headed by former Finance Secretary and RBI GovernorR.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend itsfuture direction. The Malhotra committee was set up with the objective ofcomplementing the reforms initiated in the financial sector. The reforms were aimed atcreating a more efficient and competitive financial system suitable for the requirementsof the economy keeping in mind the structural changes currently underway andrecognizing that insurance is an important part of the overall financial system where itwas necessary to address the need for similar reforms. In 1994, the committee submittedthe report and some of the key recommendations included:StructureGovernment stake in the insurance Companies to be brought down to 50%. Governmentshould take over the holdings of GIC and its subsidiaries so that these subsidiaries canact as independent corporations.CompetitionPrivate Companies with a minimum paid up capital of Rs.1 billion should be allowed toenter the sector. No Company should deal in both Life and General Insurance through asingle entity. Foreign companies may be allowed to enter the industry in collaborationwith the domestic companies. 11
  12. 12. Regulatory BodyThe Insurance Act should be changed. An Insurance Regulatory body should be set up.Controller of Insurance- a part of the Finance Ministry- should be made independentInvestmentsMandatory Investments of LIC Life Fund in government securities to be reduced from75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company(there current holdings to be brought down to this level over a period of time)Customer ServiceLIC should pay interest on delays in payments beyond 30 days. Insurance companiesmust be encouraged to set up unit linked pension plans. Computerization of operationsand updating of technology is to be carried out in the insurance industry. 12
  13. 13. STATISTICS (INDIAN & GLOBAL)This section gives the users important and detailed statistics of the Indian as well as theGlobal insurance industry. These statistics would give important insights of where therespective markets are headed for. • The global life insurance market stands at $1,521.2 billion while the non-life insurance market is placed at $922.4 billion. • The United States itself accounts for about one-third of the $2443.6 billion global insurance market and Japan stands next with a 20.62% share. • India takes the 23rd position with US $9.933 billion annual premium collections and a meager 0.41% share. • Out of one billion people in India, only 35 million people are covered by insurance. • Indias life insurance premium as a percentage of GDP is just 1.77 per cent. • The income derived by GIC and its subsidiary companies through investment was Rs.2491.76 crore and the investable fund generated was Rs.2843 crore in 1999-2000. • Indian insurance market is set to touch $25 billion by 2010, on the assumption of a 7 per cent real annual growth in GDP. 13
  14. 14. NATURE OF INDUSTRYThe insurance industry provides protection against financial losses resulting from avariety of perils. By purchasing insurance policies, individuals and businesses canreceive reimbursement for losses due to car accidents, theft of property, and fire andstorm damage; medical expenses; and loss of income due to disability or death.The insurance industry consists mainly of insurance carriers (or insurers) andinsurance agencies and brokerages. In general, insurance carriers are large companiesthat provide insurance and assume the risks covered by the policy. Insurance agenciesand brokerages sell insurance policies for the carriers.Insurance companies assume the risk associated with annuities and insurance policiesand assign premiums to be paid for the policies. In the policy, the companies states thelength and conditions of the agreement, exactly which losses it will providecompensation for, and how much will be awarded.The premium charged for the policy is based primarily on the amount to be awarded incase of loss, as well as the likelihood that the insurance carrier will actually have to pay.In order to be able to compensate policyholders for their losses, insurance companiesinvest the money they receive in premiums, building up a portfolio of financial assetsand income-producing real estate, which can then be used to pay off any future claimsthat may be brought.There are two basic types of insurance carriers: Direct and Reinsurance. 14
  15. 15. Direct carriers are responsible for the initial underwriting of insurance policies andannuities, while Reinsurance carriers assume all or part of the risk associated with theexisting insurance policies originally underwritten by other insurance carriers.Direct insurance carriers offer a variety of insurance policies.Life insurance provides financial protection to beneficiaries—usually spouses anddependent children—upon the death of the insured.Disability insurance supplies a preset income to an insured person who is unable towork due to injury or illnessHealth insurance pays the expenses resulting from accidents and illness.An Annuity (a contract or a group of contracts that furnishes a periodic income at regularintervals for a specified period) provides a steady income during retirement for theremainder of one’s life.Property-casualty insurance protects against loss or damage to property resulting fromhazards such as fire, theft, and natural disasters.Liability insurance shields policyholders from financial responsibility for injuries toothers or for damage to other people’s property. Most policies, such as automobile andhomeowner’s insurance, combine both property-casualty and liability coverage.Companies that underwrite this kind of insurance are called property-casualty carriers. 15
  16. 16. What is Life Insurance?Human life is subject to risks of death and disability due to natural and accidentalcauses. When human life is lost or a person is disabled permanently or temporarily, thereis a loss of income to the household. The family is put to hardship. Risks areunpredictable. Death/disability may occur when one least expects it. There are a numberof life insurance products which offer protection and also coupled with savings.A Term insurance product provides a fixed amount of money on death during the periodof contract.A Whole Life insurance product provides a fixed amount of money on death.An Endowment Assurance product provided a fixed amount of money either on deathduring the period of contract or at the expiry of contract if life assured is alive.A Money Back Assurance product provides not only fixed amounts which are payableon specified dates during the period of contract, but also the full amount of moneyassured on death during the period of contract.An Annuity product provides a series of monthly payments on stipulated dates providedthat the life assured is alive on the stipulated dates.A Linked product provides not only a fixed amount of money on death but also sums ofmoney which are linked with the underlying value of assets on the desired dates.There are a variety of life insurance products to suit to the needs of various categories ofpeople—children, youth, women, middle-aged persons, old people; and also ruralpeople, film actors and unorganized laborers. 16
  17. 17. Life insurance products could be purchased from registered life insurers notified by theIRDA. Insurers appoint insurance agents to sell their products.As per regulations, insurers have to give the various features of the products at the pointof sale. The insured should also go through the various terms and conditions of theproducts and understand what they have bought and met their insurance needs. Theyought to understand the claim procedures so that they know what to do in the event of aloss. INDIAN INSURANCE SECTORREGULATORY BODYInsurance is a federal subject in India. The primary legislation that deals with insurancebusiness in India is: Insurance Act, 1938, and Insurance Regulatory & DevelopmentAuthority Act, 1999.The Insurance Regulatory and DevelopmentAuthority (IRDA)Reforms in the Insurance sector were initiated with the passage of the IRDA Bill inParliament in December 1999. The IRDA since its incorporation as a statutory body inApril 2000 has fastidiously stuck to its schedule of framing regulations and registeringthe private sector insurance companies.The other decision taken simultaneously to provide the supporting systems to theinsurance sector and in particular the life insurance companies was the launch of theIRDA’s online service for issue and renewal of licenses to agents. Since being set up asan independent statutory body the IRDA has put in a framework of globally compatibleregulations. 17
  18. 18. MISSION-IRDA“To protect the interests of the policyholders, to regulate, promote and ensureorderly growth of the insurance industry and for matters connected therewith orincidental thereto.” IMPACT OF LIBERALISATIONThe introduction of private players in the industry has added to the colors in the dullindustry. The initiatives taken by the private players are very competitive and have givenimmense competition to the on time monopoly of the market LIC. Since the advent ofthe private players in the market the industry has seen new and innovative steps taken bythe players in this sector.The new players have improved the service quality of the insurance. As a result LICdown the years have seen the declining phase in its career. The market share wasdistributed among the private players. Though LIC still holds the 79% of the insurancesector but the upcoming natures of these private players are enough to give morecompetition to LIC in the near future. LIC market share has decreased from 95% (2002-03) to 81 %( 2004-05).LIC has the current market share of 79%.Among the private players ICICI Prudential has the maximum of app. 5.60%Followed by Bajaj Allianz (3.27 %) and HDFC Standard Life of about 3.11%.Below is the table that shows the market share of various players of the industry. 18
  19. 19. The following companies have the rest of the market share of the insurance industry. COMPANY NAME MARKET SHARE LIC 79.30 ICICI PRUDENTIAL 5.63 BAJAJ ALLIANZ 3.27 HDFC STANDARD LIFE 3.11 BIRLA SUNLIFE 2.32 TATA AIG 1.45 SBI LIFE 1.24 MAX NEWYORK 0.90 AVIVA LIFE 0.82 ING VYSYA 0.66 OM KOTAK LIFE 0.54 AMP SANMAR 0.38 METLIFE 0.33 RELIANCE LIFE 0.05The liberalization of the Indian insurance sector has opened new doors to privatecompetition and the new and improved insurance sector today promises several new jobopportunities. With private players now in the field, there will be innovative products,better packaging, improved customer service, and, most importantly, greateremployment opportunities.There are a number of options to choose from for a career in Insurance. Ideally aninsurance company will have openings in the following fields: 19
  20. 20. Actuaries Evaluates the risk for companies to be used for strategic management decisions. Actuaries use their analytical skills to predict the risk of writing insurance policies through the use of mathematical, statistical and economic models.Underwriters Insurance underwriters review insurance applications and decide whether they should be accepted or rejected based on the degree of risks involved in insuring the people or objects of concern. In the life insurance business, an underwriter is expected to filter the "bad or substandard lives".Agents/Brokers: Insurance agents may work for one insurance company or as independent agents selling for several companies. Insurance agents and brokers can find openings in the health insurance sector, financial planning services, retirement planning counseling or even provide other services, for e.g. sell mutual funds, annuities etc.Surveyor/Loss Assessor: Surveyors are professionals who assess the loss or damage and serve as a link between the insurer and the insured. They usually function only in non life business. Their job is to assess the actual loss and avoid false claims.Sales/Marketing: And who can forget the guys who make and break a brand. They would be required in a large number in order to promote the number of products that will be launched by numerous companies in the insurance sector. 20
  21. 21. CURRENT SCENARIO OF THE INDUSTRYINSURANCE MARKET IN INDIAIndia with about 200 million middle class household shows a huge untapped potentialfor players in the insurance industry. Saturation of markets in many developedeconomies has made the Indian market even more attractive for global insurance majors.The insurance sector in India has come to a position of very high potential andcompetitiveness in the market.Innovative products and aggressive distribution have become the say of the day. Indians,have always seen life insurance as a tax saving device, are now suddenly turning to theprivate sector that are providing them new products and variety for their choice. Lifeinsurance industry is waiting for a big growth as many Indian and foreign companies arewaiting in the line for the green signal to start their operations. The Indian consumershould be ready now because the market is going to give them an array of products,different in price, features and benefits. How the customer is going to make his choicewill determine the future of the industry.CUSTOMER SERVICEConsumers remain the most important centre of the insurance sector. After the entry ofthe foreign players the industry is seeing a lot of competition and thus improvement ofthe customer service in the industry. Computerization of operations and updating oftechnology has become imperative in the current scenario. Foreign players are bringingin international best practices in service through use of latest technologies. The one timemonopoly of the LIC and its agents are now going through a through revision andtraining programs to catch up with the other private players. Though lot is being done forthe increased customer service and adding technology to it but there is a long way to goand various customer surveys indicate that the standards are still below customerexpectation levels. 21
  22. 22. DISTRIBUTION CHANNELSTill date insurance agents still remain the main source through which insurance productsare sold. The concept is very well established in the country like India but still theincreasing use of other sources is imperative. It therefore makes sense to look at well-balanced, alternative channels of distribution.LIC has already well established and have an extensive distribution channel andpresence. New players may find it expensive and time consuming to bring up adistribution network to such standards. Therefore they are looking to the diverse areas ofdistribution channel to have an advantage. At present the distribution channels that areavailable in the market are:• Direct selling/Retail• Corporate agents• Group selling• Brokers and cooperative societies• BancassuranceDIRECT SELLING/RETAILDirect selling or retail business is carried out by Agents of the company. This is themain distribution channel due to the complexity of most insurance products(Endowment, Whole of Life, Unit Linked). This tends to be the focus of most companiesdue to its past success as well as its ability to deliver the right advice. However, thischannel can be expensive and it is a time consuming sales process. An agent is the publicface of an Insurance company. Hence it is important that this face is always smiling andpresentable and the facts and figures at his/ her command are updated and correct.An agent should be a pleasing personality with complete knowledge about the variousplans and solutions which the company has to offer and must also understand thecustomer’s psychology well to deal in an efficient manner. 22
  23. 23. BANCASSURANCEBancassurance is the distribution of insurance products through the banks distributionchannel. It is a phenomenon wherein insurance products are offered through thedistribution channels of the banking services along with a complete range of banking andinvestment products and services. To put it simply, Bancassurance, tries to exploitsynergies between both the insurance companies and banks.Advantages to banks• Productivity of the employees increases.• By providing customers with both the services under one roof, they can improve overall customer satisfaction resulting in higher customer retention levels.• Increase in return on assets by building fee income through the sale of insurance products.• Can leverage on face-to-face contacts and awareness about the financial conditions of customers to sell insurance products.• Banks can cross sell insurance products e.g.: Term insurance products with loans.Advantages to insurers • Insurers can exploit the banks wide network of branches for distribution of products. The penetration of banks branches into the rural areas can be utilized to sell products in those areas. • Customer database like customers financial standing, spending habits, investment and purchase capability can be used to customize products and sell accordingly. • Since banks have already established relationship with customers, conversion ratio of leads to sales is likely to be high. Further service aspect can also be tackled easily. 23
  24. 24. the promise to pay, backed by one of the oldest and most stably regulated financialindustry operating in the Indian sub-continent today OPPORTUNITIES FOR INSURANCE COMPANIESIn the now open sector on insurance, the following is what I feel will determine thesuccess of the company in particular and the industry in general:1) A change in the attitude of the populationIndians have always been wary of employing their hard-earned money in a venture thatwill pay them on their death. Insurance has always been used as a Tax saving tool. Nomore, no less. It is upon the insurers to educate the people to secure/insure their futureagainst any unknown calamity and make a shield around their families and businesses.2) An open and transparent environment created under the IRDA .The reason for this being on the top of our understanding is that when ever we have seenany sector open up in India there are always grey areas and unsure policies. These arenot exactly what any player, be it Indian or foreign, looks for. It creates an air ofuncertainty in all the decision making process. Insurance as a sector requires players whoare strong financially and are willing to wait for returns.A well-established distribution network.To cater to the largest democracy in the world is by no means a cakewalk. Insuranceprofits are directly related to number of insured and this is in turn related to the reach.3) Trained professionals to build and sell the product.It is said that the insurance agent is the best salesman in the world. He makes you pay,regularly, an amount promising to pay back only on your death. Thus the players willrequire an excellent sales team to sell their products in the now competitiveenvironment.4) Encouragement of new and better products and letting the hackneyed ones die out. 24
  25. 25. This will itself ensure the market grows. And that every class/society gets a product thatbest suits them.SPECIAL PROVISIONSThe Income Tax Act and Life Insurance policies• Under Section 10(10D), any sum received under a Life Insurance policy (not being a Key Man policy) is also exempt from taxation. But it is wise to remember that Pensions received from Annuity plans are not exempted from Income Tax.• Section 80C provides a deduction up to Rs.1,00,000/- to an individual assesses for any amount paid as a premium.POLICYHOLDERS GRIEVANCESPolicyholders may have complaints against insurers either in respect of their policies ortheir claims. As per Regulations for Protection of policyholders’ interests, 2002, everyinsurer should have in place, a grievance redress system to address the complaints ofpolicyholders. The IRDA has a Grievance Redress Cell which plays a facilitative role bytaking up complaints against insurers with the respective companies for speedyresolution. The IRDA however does not adjudicate on complaints. 25
  26. 26. SWOT ANALYSIS OF INSURANCE INDUSTRYSTRENGTH1. Best returns with the added advantage of 100% life insurance coverage.2. Good option for new investors into the market as all the money is invested by best fund managers so with less knowledge also they can earn good returns.3. Best commission charges paid to the agents which vary from 12% to 35%.which is much higher as compared to mutual funds i.e.,only 2-2.5%.WEAKNESS1. HDFC SLIC could not able to match LIC in remote areas services.2. Misleading facts given by life advisors about the returns of ULIPs.3. Hidden charges taken by the companies.4. Less Promotional Campaigns.OPPORTUNITY1. 80 percent of Indian population is still under insured. So there is a big opportunity forinsurance companies.2. As the stock market can be under the mark any time so it can bring loss to the investors but as in ULIPs there is proper mixture of debt securities and equity so the loss is incurred during dark trading days also.3. Unit-linked products are exempted from tax and they provide life insurance.4. Increasing consumer awareness about Insurance and its use.THREAT1. Cannibalism within the industry by providing misleading figures to the investors. 26
  27. 27. 2. Govt.’s instability has a long term repercussions affecting company’s policies and its growth. 27
  28. 28. COMPANY’S PROFILEINTRODUCTIONHelping Indians experience the joy of home ownership.Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged asthe largest residential mortgage finance institution in the country. The corporation hashad a series of share issues raising its capital to Rs. 119 crores. HDFC operates through75 locations throughout the country with its Corporate Headquarters in Mumbai, India.OBJECTIVES AND BACKGROUNDBackgroundHDFC was incorporated in 1977 with the primary objective of meeting a social need –that of promoting home ownership by providing long-term finance to households fortheir housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.Business ObjectivesThe primary objective of HDFC is to enhance residential housing stock in the countrythrough the provision of housing finance in a systematic and professional manner, and topromote home ownership. Another objective is to increase the flow of resources to thehousing sector by integrating the housing finance sector with the overall domesticfinancial markets.. 28
  29. 29. ORGANIZATION AND MANAGEMENTHDFC is a professionally managed organization with a board of directors consisting ofeminent persons who represent various fields including finance, taxation, constructionand urban policy & development. The boardprimarily focuses on strategy formulation, policy and control, designed to deliverincreasing value to shareholders.HDFC has a staff strength of 1029, which includes professionals from the fields offinance, law, accountancy, engineering and marketing. 29
  30. 30. SUBSIDIARY & ASSOCIATE COMPANIES• HDFC Bank• HDFC Mutual Fund• HDFC Standard Life• Intel net Global Services Ltd.• HDFC Chubb General Insurance Company Ltd.• HDFC Reality• Other Companies Co-Promoted by HDFC  HDFC Trustee Company Ltd.  HDFC Developers Ltd.  HDFC Venture Capital Ltd.  HDFC Ventures Trustee Company Ltd.  HDFC Investments Ltd.  HDFC Holdings Ltd.  Home Loan Services India Pvt. Ltd. 30
  31. 31.  Credit Information Bureau (India) Ltd HDFC STANDARD LIFE INSURANCEHDFC Standard Life Insurance Company Limited was one of the first companies to begranted license by the IRDA to operate in life insurance sector. Each of the JV player ishighly rated and been conferred with many awards. HDFC is rated AAA by bothCRISIL and ICRA. Similarly, Standard Life is rated AAA both by Moodys andStandard and Poor’s. These reflect the efficiency with which HDFC and Standard Lifemanage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000.HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and StandardLife has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.THE PARTNERSHIP:HDFC and Standard Life first came together for a possible joint venture, to enter theLife Insurance market, in January 1995. It was clear from the outset that both companies 31
  32. 32. shared similar values and beliefs and a strong relationship quickly formed. In October1995 the companies signed a 3 year joint venture agreement.Around this time Standard Life purchased a 5% stake in HDFC, further strengtheningthe relationship.In October 1998, the joint venture agreement was renewed and additional resource madeavailable. Around this time Standard Life purchased 2% of Infrastructure DevelopmentFinance Company Ltd. (IDFC). Standard Life also started to use the services of theHDFC Treasury department to advise them upon their investments in India.Towards the end of 1999, the opening of the market looked very promising and bothcompanies 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 toform the core project team, based in Mumbai.Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake inHDFC Bank.COMPANY’S MISSION:To be the top life insurance company in the market.This not only means being the largest or the most productive company in the market, buta combination of several things like- • Customer service of the highest order • Value for money for customers • Innovative products to cater to different needs of different customers • Use of technology to improve service standards • Increasing market shareCOMPANY’S VALUES: • SECURITY: Providing long term financial security to our policy holders will be our constant endeavor. • TRUST: Company appreciates the trust placed by our policy holders in us. • INNOVATION: Recognizing the different needs of our customers, company will be offering a range of innovative products to meet these needs. Company’s 32
  33. 33. mission is to be the best new life insurance company in India and these are the values that will guide us in this. KEY MANAGEMENT PERSONNELChairmanMr. Deepak S. ParikhBoard Of DirectorsMr. K. M. MistryMs. Renu S. KarnadMr. A. M. CrombieMs. Marcia D. CampbellMr. Norman Keith SkeochMr. G. R. DivanMr. G. N. BajpaiMr. Ranjan PantMr. Ravi NarainManaging Director & CEOMr. D. M. SatwalekarAUDIT COMMITTEEHaribhakti & CompanyChartered AccountantsB.K. Khare & Co. 33
  34. 34. Chartered AccountantsBankersHDFC Bank Ltd.Union Bank of IndiaIndian BankThe Saraswat Co-operative Bank Ltd.Federal Bank KNOWLEDGE MANAGEMENTWhen Should One Go For Insurance?Your insurance need will change as your life does, from starting to work to enjoyingyour golden years and all the stages in between. Each one of these stages may pose adifferent insurance need/cover for you. In this section, we have drawn up the basic lifestages and help you analyze various insurance needs accordingly. 34
  35. 35. Stage 1 : Young and SingleThis is an important stage where one lays down the foundation of a successful life ahead.Take advantage of the time and power of compounding to ensure that you build up yourdreams, so start saving early. Your needs: o Save for a home and wedding o Tax Planning o Save for Golden yearsStage 2 - Just MarriedMarriage brings about a significant change. New dreams and new opportunities alsobring in additional responsibilities. While both of you look forward to a happy andsecure life , it is equally important to ensure that eventualities don’t come in the way ofshaping your dreams.Your needs: o Planning for home / securing your home loan liability o Save for vacation o Save for your first child 35
  36. 36. Stage 3 - Proud ParentsOnce you have children, your need for life insurance is even more. You need to protectyour family from an untoward incident. Ensure your protection umbrella takes intoaccount the future cost of securing your child’s dream. You will want life to go on foryour loved ones, and having enough life insurance is a way to help ensure that.Your needs: o Provide for children’s education o Safeguarding family against loan liabilities o Savings for post-retirementStage 4 - Planning for RetirementWhile you are busy climbing the ladder of success today, it is important for you to taketime and plan for your life after retirement. Having an early start for retirement planningcan make a significant difference to your savings. Think about your golden years evenbefore you have reached them. The key is to think ahead and plan well using your timeand money.Your needs: o Provide for regular income post retirement 36
  37. 37. o Immediate Tax benefits o Lead a secure, independent and comfortable PRODUCT MIXAt HDFC Standard Life, there is a bouquet of insurance solutions to meet every need.They cater to both, individuals as well as to companies looking to provide benefits totheir employees.For individuals, they have a range of protection, investment, pension and savings plansthat assist and nurture dreams apart from providing protection. One can choose from arange of products to suit one’s life-stage and needs.For organizations they have customized solutions that range from Group TermInsurance, Gratuity, Leave Encashment and Superannuation Products.PRODUCTS FOR INDIVIDUALSPROTECTION - You can protect your family against the loss of your income or theburden of a loan in the event of your unfortunate demise, disability or sickness. Theseplans offer valuable peace of mind at a small price.Plans: Term Assurance Plan Loan Cover Term Assurance Plan.INVESTMENT - This includes a plan that is well suited to meet your long terminvestment needs. We provide you with attractive long term returns through regularbonuses.Plan: Single Premium Whole Of Life 37
  38. 38. PENSION - Our Pension Plans help you secure your financial independence evenafter retirement and live a relaxed retired life.Plans: Personal Pension Plan Unit Linked Pension Unit Linked Pension PlusSAVING - Our Savings Plans offer you flexible options to build savings for yourfuture needs such as buying a dream home or fulfilling your children’s immediate andfuture needs.Plans: Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Money Back Plan, Children’s Plan, Unit Linked Youngstar, Unit Linked Youngstar PlusGROUP PLANSHDFC Standard Life has the most comprehensive list of products for progressiveemployers who wish to provide the best and most innovative employee benefit solutionsto their employees. They offer different products for different needs of employersranging from term insurance plans for pure protection to voluntary plans such assuperannuation and leave encashment.Plans: Group Term Insurance with Riders Group Term Insurance with Profit-Share 38
  39. 39. Group Unit-Linked Plan For Gratuity For Defined Benefit Superannuation For Defined Contribution Superannuation Group Leave Encashment PlanRURAL CUSTOMER - According to research findings, there is keenness amongrural customers to invest in savings cum protection plan with a term of five years,especially, if the premium amount is low and affordable. Keeping this in view, HDFCSTD> LIFE has plans like:Plans: Bima Bachat Yojana. Super Bachat YojanaDISTRIBUTION OFFICESIn addition to the corporate office at Mumbai, your Company had 169 offices in over135 cities/towns in the country. It has a widespread network of Financial Consultants,Corporate Agents and Brokers servicing customers in these cities and towns.FINANCIAL CONSULTANTSThe number of licensed Financial Consultants appointed by your Company increasedfrom over 23,000 in the previous year to over 33,000 in the current year. During theyear, the Company continued its 39
  40. 40. CURRENT SALES- HDFC Standard Life “HDFC STANDARD LIFE PACING AHEAD”The Financial Express 15th May 2006“HDFC Standard Life has recorded a strong year-on-year growth of 112% for the period April-March2005-06, in comparison to the same period 2004-05, with a new business first year premium of Rs 1,029crore.In terms of effective premium income (EPI), which gives a 10% value to a Single Premium policy and isan internationally-accepted indicator of an insurance company’s performance, the EPI grew by 103% toRs 887 cr from Rs 436 crore. The average premium also grew by 62% to Rs 27,500 in 2005-06 from Rs17,000 in 2004-05.During the year the company issued over 3,97,000 policies and has covered more than5,80,000 lives”Table Showcasing Financial Results: April-March April-March Parameters 2006-07 2007-08 Growth (Rs. Cr) (Rs. Cr) (%) Total received premium 668.40 1532.21 129.23 i. New Business 486.15 1028.94 111.65 ii. Renewal 182.25 503.27 176.14 40
  41. 41. Effective Premium Income (Total) 436.08 887.30 103.47 Group Business Premium (EPI) 49.40 135.15 173.58 FUTURE PLANSHDFC has always been market-oriented and dynamic with respect to resourcemobilization as well as its lending program. This renders it more than capable to meetthe new challenges that have emerged. Over the years, HDFC has developed a vast clientbase of borrowers, depositors, shareholders and agents, and it hopes to capitalize on thisloyal and satisfied client base for future growth. Internal systems have been developed tobe robust and agile, to take into account changes in the volatile external environment.HDFC has developed a network of institutions through partnerships with some of thebest institutions in the world, for providing specialized financial services. Eachinstitution is being fine-tuned for a specific market, while offering the entire HDFCcustomer base the highest standards of quality in product design, facilities and service. 41
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  43. 43. 1. TITLE “AWARNESS OF FINANCIAL PLANNING IN EMERGING INDIAN MARKET” a. TITLE JUSTIFICATION A research design is one, which simplifies the framework of plan for the study and adds itself in the quick collection and analysis of the data. It is a blue print that has been filled in completing the study. Some 100 respondents were taken randomly.2. OBJECTIVESOBJECTIVE ONE: To study the awareness of Financial Planning among the people and the importance ofInsurance in today’s scenario.OBJECTIVE TWO: To study Brand awareness of various private insurance companies and their differentinvestment toolsOBJECTIVE THREE: Purpose of buying insurance and choosing right channel for buying life insuranceOBJECTIVE FOUR: 43
  44. 44. Quality of service provided by agents and clients satisfaction level.OBJECTIVE FIVE: Customer’s perception of improvements brought in by entry of Private Insurancecompanies. 3. SIGNIFICANCE OF STUDY 1) Significance to the industryCompetition is the basic element of a free enterprise system. The internet of both theorganization and the customer are better served when there are choices available in themarket. Competition encourages progress and product development. It forcesorganizations to be more innovative and productive.All the insurance companies are respective competitors of each other in there productsegments but they also face the other competition by the following other companies. 2) Significance for the researcherA questionnaire was prepared for the responses of the respondents. The questionnairewas designed on the primary objections were of both open ended and closed ended type.This help us a lot in knowing what is the customer’s perception about the product andhow to deal with them in the different situations4. RESEARCH DESIGNA) Probability/Non-ProbabilityThe sampling design for this study was probability sampling. Under this design, themethod of sampling used was simple random sampling. In simple random sampling, asimple random sample is a subset of individuals (a sample) chosen from a larger set (apopulation). Each individual is chosen randomly and entirely by chance, such that each 44
  45. 45. individual has the same probability of being chosen at any stage during the samplingprocess. This process and technique is known as Simple Random Sampling. Simplerandom sampling is the simplest of the probability sampling techniques. It requires acomplete sampling frame, which may not be available or feasible to construct for largepopulations. Even if a complete frame is available, more efficient approaches may bepossible if other useful information is available about the units in the population.Advantages are that it is free of classification error, and it requires minimum advanceknowledge of the population. It best suits situations where not much information isavailable about the population and data collection can be efficiently conducted onrandomly distributed items.B) Exploratory:Type of research carried out was EXPLORATORY in nature; the objective of suchresearch is to determine the approximate area where the drawback of the company liesand also to identify the course of action to solve it. For this purpose the informationproved useful for giving right suggestion to the company.5. SAMPLING METHODOLOGYa) SAMPLING UNIT:Interacting with number of customers during the activities performed, which included,markets, cold calling, canopies, etc, did the research process. Sample Design consists ofRandom Sampling.b) SAMPLING TECHNIQUE:QuestionnaireThe questionnaire was formulated by keep in mind the following Points: - 45
  46. 46. • Giving the respondents clear comprehension of the question. • Inducing the respondents to co-operate. • Giving instructions as to what is wanted. • Identifying the needs to be known.c) SAMPLING AREA:The primary data was collected through survey that was systematically carried inEast Delhi and NCR (i.e. NOIDA). The responses of the respondents were recorded inthe questionnaire prepared for them through questionnaires with oral interpretation.d) SAMPLING SIZE:The people who have been surveyed by the researcher were 100 i.e. the sampling size is1006. LIMITATIONS:The following were the limitations that were there during the course of the study: 1. Limited time period. 2. Less number of respondents. 3. Biasness of the respondents. 4. Place for research is limited 5. Funds available for the research is limited. 46
  47. 47. 47
  48. 48. 1. From which age group you belongs to?a) Below 30b) 31 - 45c) Above 45 Below 30 31 – 45 Above 452. Are you married or single? a) Single b) Married Single 76% Married 24% 48
  49. 49. 3. What is your annual income? )a Below 1.5 lakhs )b 1.5 – 5 lakhs )c Above 5 lakhs Below 1.5 lakhs 40% 1.5 – 5 lakhs 25% Above 5 lakhs 35%4. Are you aware about Financial Planning ? a) Yes b) No YES 98% NO 72% 49
  50. 50. 5. Are you Insured? a) Yes b) No Yes 87% NO 13%6. Which is your most preferred option among these for investment? a) Banks and post office b) Share market c) Insurance d) Bonds e) Mutual Fund f) Real Estate Banks and post office 21% Share market 18% Insurance 20% Bonds 11% Mutual Fund 21% Real Estate 9% 50
  51. 51. 7. How would you rate the following companies from the point of view of investmentsas well as returns? (1 - Excellent, 2 - Very Good, 3 - Good, 4 - Average) a) ICICI Prudential b) HDFC Standard Life c) AVIVA Life Insurance(A) ICICI Prudential • Excellent • Good • Average • Poor EXCELLENT 30% GOOD 20% AVERAGE 35% POOR 15% 51
  52. 52. (B) HDFC Standard Life • Excellent • Good • Average • Poor EXCELLENT 35% GOOD 25% AVERAGE 25% POOR 15%(c) MAX New York Life • Excellent • Good • Average • Poor EXCELLENT 35% GOOD 25% AVERAGE 25% POOR 15% 52
  53. 53. 8. According to you, which sector is most suitable to invest? a) Only LIC b) Private Companies c) Both Only LIC 30% Private Companies 35% Both 35%9. Which distribution channel would you prefer to buy the insurance? a) Known / Current Advisor b) Group Insurance c) Telesales / Unknown Advisor d) Friends and Relatives e) Bancassurance Known / Current Advisor 11% Group Insurance 89% Telesales / Unknown Advisor Friends and Relatives Bancassurance 53
  54. 54. 10. In which plan, would you like to invest your money? a) Money Back b) Endowment c) Pension Plan d) ULIPs Money Back 34.29% Endowment 20.23% Pension Plan 21.28% ULIPs 24.20%11. What is your purpose to do investment or buying insurance? a) Retirement Planning b) Tax Benefit c) Investment d) Risk Cover Retirement Planning 14% Tax Benefit 23% Investment 11% Risk Cover 52% 54
  55. 55. 12. If specifically you need to invest in insurance, than in which company would youlike to invest your finance? a) LIC b) ICICI Prudential c) HDFC Standard Life d) TATA AIG e) Birla Sun Life f) KOTAK Mahindra g) SBI Life h) AVIVA i) MAX New York j) METLIFE k) ING Vyasya LIC ICICI Prudential HDFC Standard life TATA AIG Birla Sun Life KOTAK Mahindra SBI Life AVIVA MAX New York METLIFE ING Vyasya 55
  56. 56. 56
  57. 57. 1. From which age group you belongs to? a) Below 30 b) 31 - 45 c) Above 45AGE DISTRIBUTION AGE DISTRIBUTION(yrs.) Below 30 24% 35% 31 - 45 Above 45 41%  Highest number of Respondents (41%) from Age group 31 to 45 yrs.  35% respondents are of age below 30 yrs, small percentage of which is unemployed. 57
  58. 58. 2. Are you married or single? a) Single b) MarriedMARITAL STATUS MARITAL STATUS SINGLE MARRIED 100% 90% 16 80% 70% 60% 37 50% 24 40% 19 30% 20% 10% 0% 4 Below 30 31 - 45 Above 45 AGE(yrs)  Total number of single respondents – 23  Total number of married respondents – 77 58
  59. 59. 3. What is your annual income? a) Below 1.5 lakhs b) 1.5 – 5 lakhs c) Above 5 lakhsINCOME DISTRIBUTION INCOME DISTRIBUTION(Annual in Rs.appx.) > 5 lacs 1 10 6 INCOME 3 - 5 lacs 5 12 12 1.5 - 3 lacs 13 12 6 <1.5 lacs 16 7 0 Below 30 31 - 45 Above 45  Highest, 16 respondents in income bracket below 1.5 lacs, which mainly comprises of age group below 30 years.  Respondents of the age group 31-45 yrs, lie in all the income slabs.  Minimum, 6 respondents in income bracket of above 5 lacs, which are in age group of above 45 years. 59
  60. 60. 4. Are you aware about Financial Planning? a) Yes b) NoARE YOU AWARE ABOUT FINANCIAL PLANNING ? DO YOU KNOW WHAT IS FINANCIAL PLANNING ? 100 YES 90 NO OF PEOPLE 98% 80 70 NO 60 50 40 30 2% 20 10 0  98% of the respondents were aware about Financial Planning. 60
  61. 61. 5. Are you Insured? a) Yes b) NoINSURED PERCENTAGE ARE YOU INSURED? 13% YES NO 87%  87 % of respondents were insured on own life and on life of their family members.  So we had 13 % of potential customers to approach. 61
  62. 62. 6. Which is your most preferred option among these for investment? a) Banks and post office b) Share market c) Insurance d) Bonds e) Mutual Fund f) Real EstateINVESTMENT PREFERENCE INVESTMENT PREFERENCE Banks & Post office 9% Share Market 21% 21% Insurance Bonds 18% 11% Mutual Funds 20% Real Estate  21% respondents prefer banks and post office schemes as an investment tool preference.  21% respondents prefer mutual funds for investment purpose.  Insurance ranks 2nd as an investment tool choice, which itself includes various protection, saving and pension plans.  Govt. Bonds & securities are mostly preferred by people of higher age group rather than young generation.  Property as an investment option is most lucrative choice. However it is important to mention that majority of respondents are in age group of above 62
  63. 63. 30 years and people with high income bracket prefers to invest in Real Estate.7. How would you rate the following companies from the point of view of investmentsas well as returns? (1 - Excellent, 2 - Very Good, 3 - Good, 4 - Average) a) ICICI Prudential b) HDFC Standard Life c) AVIVA Life Insurance(A) ICICI Prudential • Excellent • Very Good • Good • Average 15% 30% 35% 20% Excellent Good Average Poor 63
  64. 64. (B) HDFC Standard Life • Excellent • Very Good • Good • Average 15% 35% 25% 25% Excellent Good Average Poor 64
  65. 65. (c) MAX New York Life • Excellent • Good • Average • Poor 15% 35% 25% 25% Excellent Good Average Poor 65
  66. 66. 8. According to you, which sector is most suitable to invest? a) Only LIC b) Private Companies c) BothCOMPANY PREFERENCE COMPANY PREFERENCE(in %) 1 55% 30% 15% 0 20 40 60 80 100 120 ONLY LIC BOTH ONLY PVT. COs  55% of respondents have insurance cover provided by LIC only  15% of respondents have insurance cover provided by Private Cos. only  Whereas 30% have got insurance from both LIC and Private Companies. 66
  67. 67.  Total number of LIC policies sums up to 85% and total number of Pvt. Companies policies sold sums up to 45%.  Data provides that though LIC is still got a maximum market share but Private Companies are making a fast move in the market.9. Which distribution channel would you prefer to buy the insurance? a) Known / Current Advisor b) Group Insurance c) Telesales / Unknown Advisor d) Friends and Relatives e) BancassuranceDISTRIBUTION CHANNEL PREFERENCE CHANNEL PREFERENCE 1 56 17 14 9 4 0 20 40 60 80 100 120 Known/Current Advisor Friends & Relatives Group Insurance Banccassurance Telesales/unknown Advisor  According to the data, known/current Advisors remains the 1st choice for buying Insurance.  In retail also known Advisors are preferred over referrals. 67
  68. 68.  Bancassurance is emerging as a popular option for buying life Insurance.  Group insurance is a channel which customers expect but it is not so popular because only few employers have taken the initiative.  Buying insurance from a unknown person or getting a phone call is still not preferred by most of the people10. In which plan, would you like to invest your money? a) Money Back b) Endowment c) Pension Plan d) ULIPsTYPE OF PLAN BOUGHT TYPE OF PLAN 17, 20% MONEY BACK 26, 29% ENDOWMENT PENSION PLAN 24, 28% ULIPs 20, 23%  Money back Policies have been most popular and also the endowment plans.  As people today are more aware about financial planning, so people of the age 30 years have planned for their Retirement now. 68
  69. 69.  ULIPs are fast gaining popularity as they provide investment benefit with Insurance.11. What is your purpose to do investment or buying insurance? a) Retirement Planning b) Tax Benefit c) Investment d) Risk CoverPURPOSE OF BUYING INSURANCE PURPOSE OF BUYING INSURANCE Retirement Planning 14% Tax Benefit 23% Investment 11% Risk Cover 52% 0 10 20 30 40 50 60  Risk cover remains the most important purpose for buying insurance followed by option as Tax saving tools.  Retirement Planning in a early period is also gaining the market share. 69
  70. 70.  ULIPs are responsible for increasing popularity of insurance as an investment tool12. If specifically you need to invest in insurance, than in which company would youlike to invest your finance? a) LIC b) ICICI Prudential c) HDFC Standard Life d) TATA AIG e) Birla Sun Life f) KOTAK Mahindra g) SBI Life h) AVIVA i) MAX New York j) METLIFE k) ING VyasyaBRAND RECALL BRAND RECALL LIC 51 100 ICICI Prudential 60 HDFC Std Life 71 96 TATA AIG BIRLA SUN LIFE KOTAK MAHINDRA 75 SBI LIFE 92 AVIVA 64 MAX NEW YORK 82 METLIFE 72 86 INGVYSYA 70
  71. 71.  100 % respondents mentioned first name to be LIC Among private players, ICICI Prudential has the highest Brand Recall i.e. 96% HDFC Standard life has Brand Recall of 92% 71
  72. 72. RECOMMENDATIONS1. In line with the existing competition in the Insurance Sector and with new companies entering now and then, the cost of becoming a Financial Consultant with the company should be reduced or waived off.2. The HR Department should be more open to take advice and suggestions from the NON-HR Personnel of the company in context with their experience of the changing scenario of the market.3. Monetary gains should be given to the Summer Trainees, so that they are motivated to work more effectively & efficiently.4. Communication within the company and with the outside world should be given greater thrust.5. The Personnel manager should make effort for group cohesiveness because peoples’ commitment to their groups will be transient and changing. Formulas for Success • Critical to expanding the client base is generating leads and maintaining contacts with the prospects on a regular basis. Ideally one must plan 10- 12 names and phone numbers of prospects to call on each day prior to 10.00 A.M • Obtain 5 qualified referred leads each day & Book 3 appointments each day. Qualified Referrals are people who have a financial need, have the disposal income to pay the premiums and can been seen by you on a favourable basis. 72
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  74. 74. CONCLUSIONThe size of the market has grown and the size of the insurable population in India isindeed vast and the existing player has managed to cover about one-fourth of it. Theopportunities before the players are therefore a plenty in terms of target audience. Thefalling interest rates, the collapse of many small-time financial institutions, the scope forentering related areas like banking and pensions in a bid for synergy and the promise ofe-commerce are some of the other opportunities knocking at the doors of the insurancemajors.There is a probability of a spurt in employment opportunities. A number of web-sites arecoming up on insurance, a few financial magazines exclusively devoted to insurance andalso a few training institutes being set up hurriedly. Many of the universities andmanagement institutes have already started or are contemplating new courses ininsurance. Health insurance, which is still in its infancy, is also likely to get a majorboost, ultimately leading to improvement in the quality of medical treatment andfacilities in the country.Life insurance has today become a mainstay of any market economy since it offersplenty of scope for garnering large sums of money for long periods of time. A well-regulated life insurance industry which moves with the times by offering its customerstailor-made products to satisfy their financial needs is, therefore, essential if we desire toprogress towards a worry-free future.Economics experts and various studies conducted across the globe envisage India andChina to rule the world in the 21st century. For over a century the United States has beenthe largest economy in the world but major developments have taken place in the world 74
  75. 75. economy since then, leading to the shift of focus from the US and the rich countries ofEurope to the two Asian giants- India and China. According to some experts, the shareof the US in world GDP is expected to fall (from 21 per cent to 18 per cent) and that ofIndia to rise (from 6 per cent to 11 per cent in 2025), and hence the latter will emerge asthe third pole in the global economy after the US and China.By 2025 the Indian economy is projected to be about 60 per cent the size of the USeconomy. The transformation into a tri-polar economy will be complete by 2035, withthe Indian economy only a little smaller than the US economy but larger than that ofWestern Europe. By 2035, India is likely to be a larger growth driver than the six largestcountries in the EU, though its impact will be a little over half that of the US. India,which is now the fourth largest economy in terms of purchasing power parity, willovertake Japan and become third major economic power within 10 years.These are the opportunities that lie in India. Therefore insurance sector are coming tocater the Indian market. Therefore the competition for the Indian companies has alsoincreased and the companies that want to stay in the competition, they have to come upwith new innovative practices in order to neutralize the competitive advantage taken byinsurance company.My learning says that HDFC Standard Life Insurance Company, Products hastremendous potential and strength in the insurance sector. HDFC Standard LifeInsurance Company just needs to create more global awareness through electronic andprint media. The customers’ perception about the company and for the products is reallygood and the satisfaction level is very high.However, the insurance sector companies if concentrates on the following factors will beable to face the tough challenges:-  Technology  Product competition  Distribution Network 75
  76. 76.  Publicity through various media  Attractive Schemes  Innovative Bonus Packages  Innovative marketingThus if the HDFC Standard Life Insurance Company will concentrate on all theseabove factors then definitely the near future of the company would be very good. As theinsurance sector market is growing at a fast pace so the company is having a greatopportunity to maximize its wealth as well as to maximize its customer base byproducing quality and defect free products.The training at HDFC Standard Life Insurance Company taught me that classroomstudy is not and end but is a mean to achieve your goals. The stint at HDFC StandardLife Insurance Company will go on a long way in enhancing my life as student as lifeis full of learning one being student throughout it. 76
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  79. 79. • Personal Interviews with some Chartered Accountants• Various Insurance companies Brochures/Manuals 79
  80. 80. QUESTIONNAIRE 11. From which age group you belongs to? a) Below 30 b) 31 - 45 c) Above 452. Are you single or married? a) Single b) Married3. What is your annual income ? a) Below 1.5 lakhs b) 1.5 – 5 lakhs c) Above 5 lakhs4. Are you aware about Financial Planning? a) Yes b) No 80
  81. 81. 5. Are you Insured? a) Yes b) No6. Which is your most preferred option among these for investment? a) Banks and post office b) Share market c) Insurance d) Bonds e) Mutual Fund f) Real Estate7. How would you rate the following companies from the point of view of investmentsas well as returns? (1 - Excellent, 2 - Good, 3 - Average, 4 - Poor) a) ICICI Prudential b) HDFC Standard Life c) MAX New York Life8. According to you, which sector is most suitable to invest? a) Only LIC b) Private Companies c) Both9. Which distribution channel would you prefer to buy the insurance? 81
  82. 82. a) Known / Current Advisor b) Group Insurance c) Telesales / Unknown Advisor d) Friends and Relatives e) Bancassurance10. In which plan, would you like to invest your money? a) Money Back b) Endowment c) Pension Plan d) ULIPs11. What is your purpose to do investment or buying insurance? a) Retirement Planning b) Tax Benefit c) Investment d) Risk Cover12. If specifically you need to invest in insurance, than in which company would youlike to invest your finance? a) LIC b) ICICI Prudential c) HDFC Standard Life d) TATA AIG e) Birla Sun Life f) KOTAK Mahindra g) SBI Life 82
  83. 83. h) AVIVAi) MAX New Yorkj) METLIFEk) ING Vyasya 83