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Mba training report . on custumer buying behaviour

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Mba training report . on custumer buying behaviour

  1. 1. TRAINING REPORT 2013 A SUMMER TRAINING REPORT ON “CUSTSOMER-BUYING BEHAVIOUR WITH A FOCUS ON MARKET SEGMENTATION” Conducted at: DLF PRAMERICA LIFE INSURANCE COMPANY LTD. Submitted in partial fulfillment of the requirement for the award of the Degree of master in business administration (session 2012-2014) M.B.A 3rd semester SUBMITTED TO : KURUKSHETRA UNIVERSITY, KURUKSHETRA . SUBMITTED BY : Malkeet Singh M.B.A (hons)F Roll no. 46 UNIVERSITY SCHOOL OF MANAGEMENT KURUKSHETRA UNIVERSITY, KURUKSHETRA. HARYANA-136119(INDIA) 1
  2. 2. TRAINING REPORT 2 2013
  3. 3. TRAINING REPORT 2013  CONTENTS Preface Acknowledgement Declaration Organization certificate Executive summary Sr. no. Chapters name Page no. 1. Industry profile 8. 2. Company profile 20. 3. Research methodology 33. 3.1 Objectives of the study 3.2 Research design 3.3 Methods of data collection 3.4 Techniques 3.5 Scope of the study 3.6 Significance of the study 3.7 Limitations of the study 4. Study of the topic 38. 5. Analysis and interpretation 40. 6. Findings, Conclusion and policy implication 60. 7. Suggestions 62. 8. Bibliography 63. 9. Appendix 64. Questionnaire 3
  4. 4. TRAINING REPORT 2013  PREFACE The liberalization of the Indian insurance sector has been the subject of much heated debate for some years. The policy makers where in the catch 22 situation wherein for one they wanted competition, development and growth of this insurance sector which is extremely essential for channeling the investments in to the infrastructure sector. At the other end the policy makers had the fears that the insurance premia, which are substantial, would seep out of the country; and wanted to have a cautious approach of opening for foreign participation in the sector. As one of the rare occurrences the entire debate was put on the back burner and the IRDA saw the day of the light thanks to the maturing polity emerging consensus among factions of different political parties. Though some changes and some restrictive clauses as regards to the foreign participation were included the IRDA has opened the doors for the private entry into insurance. Whether the insurer is old or new, private or public, expanding the market will present multitude of challenges and opportunities. But the key issues, possible trends, opportunities and challenges that insurance sector will have still remains under the realms of the possibilities and speculation. What is the likely impact of opening up India’s insurance sector? The large scale of operations, public sector bureaucracies and cumbersome procedures hampers nationalized insurers. Therefore, potential private entrants expect to score in the areas of customer service, speed and flexibility. They point out that their entry will mean better products and choice for the consumer. The critics counter that the benefit will be slim, because new players will concentrate on affluent, urban customers as foreign banks did until recently. This seems to be a logical strategy. Start-up costs-such as those of setting up a conventional distribution network-are large and high-end niches offer better returns. However, the middle market segment too has great potential. Since insurance is a volumes game. Therefore, private insurers would be best served by a middle-market approach, targeting customer segments that are currently untapped. 4
  5. 5. TRAINING REPORT 2013  ACKNOWLEDGEMENT First of fall I would like to thank the Management at DLF PAMERICA Life Insurance Company Ltd for giving me the opportunity to do my two-month project training in their esteemed organization. I am highly obliged to Mr. NEERAJ VERMA (Branch Manager) for granting me to undertake my training at KARNAL branch. I express my thanks to Mr. Kanwar Abhimanyu (Sales Managers) under whose able guidance and direction, I was able to give shape to my training. Their constant review and excellent suggestions throughout the project are highly commendable. My heartfelt thanks go to all the executives who helped me gain knowledge about the actual working and the processes involved in various departments 5
  6. 6. TRAINING REPORT 2013  DECLARATION I hereby declare that the project report titled “Customer-buying behavior with a focus on market segmentation” at DLF PRAMERICA Life Insuarance Co. Ltd. submitted in partial fulfillment of the requirement for the Degree of Master of Business Administration is record of bonafide research and that no part of this report has been submitted for the award of any other diploma, degree fellowship or other similar title prize. The report is based on my personal opinion hence cannot be referred for official or legal purpose. The conclusion & findings in the project are based on the data collected by me. The contents and the data are collected by me under the guidance of training guide. Place: Kurukshetra Date:_____________ 6 Malkeet singh (Signature)
  7. 7. TRAINING REPORT  2013 EXECUTIVE SUMMARY • The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have adequate agents in the market they can capture big market as compared to the other companies. Agents are the only way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer In today’s corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70- 80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector and DLF PRAMERICA Life Insurance Company Ltd has given me the opportunity to work and get experience in highly competitive and enhancing sector. 7
  8. 8. TRAINING REPORT 8 2013
  9. 9. TRAINING REPORT 2013 THE INTRODUCTION TO INDUSTRY THE HISTORY OF INDIAN INSURANCE INDUSTRY  Life Insurance In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society.“Unethical practices adopted by some of the players against the interests of the consumers” then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that “nationalization has lent the industry fairness, solidity, growth and reach.”Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: The market contained 154 Indian and 16 foreign life insurance companies. 9
  10. 10. TRAINING REPORT 2013  General Insurance The General Insurance industry in India dates back to the Industrial Revolution and the subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the British brought General Insurance to India, and a similar path was followed in the development of this industry. A number of private companies were in existence for years and years until, in 1971, the Indian Government decided that the public interest would be served by nationalizing the industry, merging all the 107 companies into four companies, depending on the sort of business transacted (Marine, Fire, Miscellaneous). These were the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the New India Assurance Company Ltd., and the United India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance Corporation (GIC) was set up in 1972 as a ‘holding’ company, having these four companies as its subsidiaries. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. 10
  11. 11. TRAINING REPORT 2013 MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA • Life Insurance Corporation of India (LIC) Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread the message of life insurance in the country and mobilise people’s savings for nation-building activities. LIC with its central office in Mumbai and seven zonal offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in important cities and 2,048 branch offices. LIC has 5.59 lakh active agents spread over the country. The Corporation also transacts business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the field of insurance, namely, KenIndia Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur; and Life Insurance Corporation (International), E.C. Bahrain. It has also entered into an agreement with the Sun Life (UK) for marketing unit linked life insurance and pension policies in U.K. In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's income grew at a healthy average of 10 per cent as against the industry's 6.7 per cent growth in the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US). LIC has even provided insurance cover to five million people living below the poverty line, with 50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95 per cent and GIC's at 74 per cent are higher than that of global average of 40 per cent. Compounded annual growth rate for Life insurance business has been 19.22 per cent per annum 11
  12. 12. TRAINING REPORT 2013 • General Insurance Corporation of India (GIC) The general insurance industry in India was nationalized and a government company known as General Insurance Corporation of India (GIC) was formed by the Central Government in November 1972. With effect from 1 January 1973 the erstwhile 107 Indian and foreign insurers which were operating in the country prior to nationalization, were grouped into four operating companies, namely, (i) National Insurance Company Limited; (ii) New India Assurance Company Limited; (iii) Oriental Insurance Company Limited; and (iv) United India Insurance Company Limited. (However, with effect from Dec'2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies). All the above four subsidiaries of GIC operate all over the country competing with one another and underwriting various classes of general insurance business except for aviation insurance of national airlines and crop insurance which is handled by the GIC. Besides the domestic market, the industry is presently operating in 17 countries directly through branches or agencies and in 14 countries through subsidiary and associate companies. IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEEN PERMITTED TO ENTER INTO INSURANCE BUSINESS: The introduction of private players in the industry has added to the colors in the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LIC. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in this sector. The new players have improved the service quality of the insurance. As a result LIC down the years have seen the declining phase in its career. The market share was distributed among the private players. Though LIC still holds the 75% of the insurance sector but the upcoming natures of these private players are enough to give more competition to LIC in the near future. LIC market share has decreased from 95% (2002-03) to 82 %( 2004-05). 12
  13. 13. TRAINING REPORT 2013 1.DLF Pramerica life insurance DLF Pramerica Life Insurance Company Limited is a joint venture between DLF Limited, one of India’s largest and most respected real estate organizations, and Prudential International Insurance Holdings, Ltd (PIIH), a fully owned subsidiary of Prudential Financial, Inc. (hereafter referred to as “PFI”), a U.S. based financial services leader About DLF DLF Limited is one of the leading real estate companies in the world. It has a track record of over six decades of sustained growth, customer satisfaction, and innovation. DLF's primary business is development of residential, commercial and retail properties. DLF has a unique business model with earnings arising from development and rentals. DLF has entered into several strategic alliances with global industry leaders. Also, it has recently forayed into the infrastructure, SEZ, financial services and hotel businesses. About PFI Pramerica Financial is a trade name used by PFI, a company incorporated and with its principal place of business in the United States, and its affiliates in select countries outside the United States. PFI is a financial services leader with operations in the United States, Asia, Europe, and Latin America. PFI’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. In the U.S., the company’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. PFI of the United States is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom. 2. Max New York Life Insurance Co. Ltd. Max New York Life Insurance Company Limited is a joint venture that brings together two large forces - Max India Limited, a multi-business corporate, together with New York Life 13
  14. 14. TRAINING REPORT 2013 International, a global expert in life insurance. With their various Products and Riders, there are more than 400 product combinations to choose from. They have a national presence with a network of 57 offices in 37 cities across India. 3. ICICI Prudential Life Insurance Company Ltd. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). The company has a network of about 56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups. 4. Om Kotak Mahindra Life Insurance Co. Ltd. Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak MahindraBank Ltd. (KMBL), and Old Mutual plc. 5.Birla Sun Life Insurance Company Ltd. Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and Sun Life financial Services of Canada.  Tata AIG Life Insurance Company Ltd.  SBI Life Insurance Company Limited  ING Vysya Life Insurance Company Private Limited  Allianz Bajaj Life Insurance Company Ltd.  Metlife India Insurance Company Pvt. Ltd.  AMP SANMAR Assurance Company Ltd.  Dabur CGU Life Insurance Company Pvt. Ltd. 14
  15. 15. TRAINING REPORT 2013 1. Royal Sundaram Alliance Insurance Company Limited The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram Finance Limited started its operations from March 2001. The company is Head Quartered at Chennai, and has two Regional Offices, one at Mumbai and another one at New Delhi. 2. Bajaj Allianz General Insurance Company Limited Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany. 3. ICICI Lombard General Insurance Company Limited ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified financial corporate engaged in general insurance, reinsurance, insurance claims management and investment management. Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of Canada's oldest property and casualty insurers. ICICI Lombard General Insurance Company received regulatory approvals to commence general insurance business in August 2001. 4. Cholamandalam General Insurance Company Ltd. Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture of the Murugappa Group & Mitsui Sumitomo. Chola-MS commenced operations in October 2002 and has issued more than 1.4 lakh policies in its first calendar year of operations. The company has a pan-Indian presence with offices in 15
  16. 16. TRAINING REPORT 2013 Chennai, Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai, Pune, Indore, Ahmedabad, Delhi, Chandigarh, Kolkata and Vizag. 5. TATA AIG General Insurance Company Ltd. Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the Tata Group and American International Group, Inc. (AIG). Tata AIG combines the strength and integrity of the Tata Group with AIG's international expertise and financial strength. The Tata Group holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26 per cent stake. Tata AIG General Insurance Company, which started its operations in India on January 22, 2001, offers the complete range of insurance for automobile, home, personal accident, travel, energy, marine, property and casualty, as well as several specialized financial lines. 6. Reliance General Insurance Company Limited. 7. IFFCO Tokio General Insurance Co. Ltd 8. Export Credit Guarantee Corporation Ltd. 9. HDFC-Chubb General Insurance Co. Ltd.  Marketing of Insurance In India Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also a sector, which leads to benefits across the full spectrum, from the individual who now have wider choices, to the economy, which see increased savings, to the infrastructure sector, which can look forward to long term funding being available. In an under-insured economy, newer channels of distribution have to be utilized to intensify the reach of insurance both in urban and rural markets. This will create huge employment opportunities not only within insurance companies but also as agents and consultants of insurance companies. 16
  17. 17. TRAINING REPORT 2013  Marketing Mix Policies Different companies can choose to position themselves differently and hence the Marketing Mix is different. However, there are certain common characteristics that one can cull out from the possible strategies that companies adopt. Product: The development of flexible products to suit individual requirements is what will differentiate the winners from the also-rans. The key to success is in providing insurance solutions, not standardized insurance products. The concept of riders/optional benefits has already been a huge innovation brought about by the new players, which has led to customization of products for individual needs. However, companies may differentiate themselves on the basis of product segments that they choose to focus on and excel in. Place: Different companies may however choose different channels and different geographies to focus on. The channel options are - tied agency force, corporate agents and brokers and this is an area where different companies will make different choices. Many companies like DLFpramerica Life are focusing on all channels whereas companies like Max New York Life are focusing on the tied agency force only. Customer interface will be a key challenge for life insurance companies and includes every that interaction that the customer has with the company, such assales, new business underwriting, policy servicing, premium payments, claim processing and so on. Technology can play a crucial role in delivering the highest standards of service set by thecompany and it will be imperative for any serious player to excel in all of these. Price: Price is a relevant differentiator only in two segments - pure term insurance and in pure annuities. Here too, service delivery and financial strength will need to be present at a minimumacceptable level for price to be a relevant differentiator. In case of savings oriented products, long-term returns generated are more relevant than just the price of the product. A focus on generating good investment performance and keeping a tight control on costs help in 17
  18. 18. TRAINING REPORT 2013 generating good long-term maturity value for customers. Norms have been laid down on all of these by IRDA and adhering to these while delivering good returns will be a challenge. Promotion and Advertising: The level of demand is latent and will have to be activated considerably. The market needs to be developed. Greater awareness of insurance and the need to have it as a protection tool rather than as a tax planning measure needs to be appreciated by the Indian people. Various communication tools including advertising, direct marketing and road shows contribute to all this and different companies take different approaches on these. Process: Cashless settlement: One of the most defining and customer-friendly changes that we’ve seen in recent years relates to the way claims settlements are made. The advent of the thirdparty administrator (TPA) regime has facilitated the transition to the hugely convenient era of cashless settlement of health and auto insurance claims. TPAs are entities who process claims on behalf of insurers: the IRDA licenses them after it is satisfied that they have the financial strength, the trained manpower, the infrastructure and the skills to undertake this activity. Likewise, with auto insurance, the TPA ties up with garages and authorized service centers for cashless settlement of auto insurance claims. Lower premiums: The spirit of competition and the broadening of the risk experience of insurance companies have contributed to a fall in premiums over the years. That’s because, other things being equal, an insurer who covers the lives just of 10 people bears a higher risk than an insurer who covers the lives of, say, 100 people. Further, a broader base will provide greater efficiencies on costs such as distribution, management and claims. A broad basing of the mortality experience, therefore, gives insurers the elbowroom to compete by lowering premiums, and that trend is expected to continue. Premium payment flexibility: Insurers have imparted certain flexibility to premium payment options in order to address this concern. For instance, one now have the option to pay your premiums upfront, which is then carried forward for the tenure of the policy. The yearly premiums are drawn from the initial corpus. Insurers have also introduced the concept of ‘automatic cover maintenance’ to protect your policy from lapsing owing to your omission to pay your premium on time. Under this, in the event of your not paying the premium, the insurer dips into your investment account to the extent of the premium. Of course, this comes 18
  19. 19. TRAINING REPORT 2013 with an inbuilt drawback: your investment portion diminishes year on year to the extent of the amount paid to cover your risk. Physical Evidence: This can play a significant role for marketing in the Indian scenario. Since Internet users are comparatively lesser than countries such as US, the offline mode will be preferred in India. Although the distribution model is largely agent-based, wherever the customer is in contact with the company, this factor can play a significant role in luring the customer. People: The most important factor that materializes sales and maintains customer relationships on a long-term basis is this factor. No matter what distribution strategy a company adopts, customer relati 19
  20. 20. TRAINING REPORT 20 2013
  21. 21. TRAINING REPORT 2013  INTRODUCTION TO THE COMPANY  COMPANY PROFILE OF DLF PRAMERICA LIFE INSURANCE COMPANY LTD. About DLF PRAMERICA LIFE INSURANCE For DLF Pramerica Life Insurance Company Limited, this is not just a phrase - it is a promise. It is to deliver on this promise to you, our customers, and your loved ones that we commenced business on September 01, 2008. We know that our work begins much before telling you about our products - it begins with comprehensive advice on everything related to insurance. From giving insurance advice to offering information on our solutions and services and then finally to provide you with the promised protection, our team stays with you every step of the way. A hand-picked and highly trained sales force ensures that your needs are assessed accurately so that you can make an informed choice and you get the insurance cover that is best suited to your needs. We understand that your needs may vary from investment returns to protection and we advise you on achieving both. Our mission is to not just help you with insurance, but also help you achieve overall financial security. Through our customized plans and advice, we ensure that you are financially secure to face any eventuality. Ultimately, we are not just a life insurance provider. We are a symbol of trust, commitment and leadership. We are a promise of protection. 21
  22. 22. TRAINING REPORT 2013  Leadership PavanDhamija Managing Director & CEO Pavan Dhamija is the Managing Director & CEO of DLF Pramerica Life Insurance Company Limited (DPLI). Mr. Dhamija joined DPLI in August 2010 as Chief Operating Officer responsible for oversight of several key departments in the company. He was appointed the CEO in January 2011. In his new role, he is focused on strengthening the business proposition and building a robust operating model for sustained growth of the company. 22
  23. 23. TRAINING REPORT 2013 Pavan Dhamija has over 17 years of experience in the retail financial services sector having worked with leading consumer finance companies including GE Money, Standard Chartered Bank and HDB, a fully owned subsidiary of HDFC Bank. He has initiated and implemented effective business models in India and China and built several successful strategic partnerships, many from scratch. He has the unique exposure of working across functions; both front end and back end and brings in valuable experience of working within start-up environments, in JVs and with partners. Pavan Dhamija is an alumni of the Indian Institute of Management (IIM), Ahmedabad, and the Indian Institute of Technology (IIT), Kanpur.  Lineage DLF Pramerica Life Insurance Company Limited is a joint venture between DLF Limited, one of India’s largest and most respected real estate organizations, and Prudential International Insurance Holdings, Ltd (PIIH), a fully owned subsidiary of Prudential Financial, Inc. (hereafter referred to as “PFI”), a U.S. based financial services leader  About DLF DLF Limited is one of the leading real estate companies in the world. It has a track record of over six decades of sustained growth, customer satisfaction, and innovation. DLF's primary business is development of residential, commercial and retail properties. DLF has a unique business model with earnings arising from development and rentals. DLF has entered into several strategic alliances with global industry leaders. Also, it has recently forayed into the infrastructure, SEZ, financial services and hotel businesses.  About PFI Pramerica Financial is a trade name used by PFI, a company incorporated and with its principal place of business in the United States, and its affiliates in select countries outside the United States. PFI is a financial services leader with operations in the United States, Asia, Europe, and Latin America. PFI’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual 23
  24. 24. TRAINING REPORT 2013 funds, investment management, and real estate services. In the U.S., the company’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. PFI of the United States is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom. Pramerica and the Rock Logo are proprietary servicemarks and may not be used without the permission of the owner.  Vision & Values Our Vision At DLF Pramerica Life Insurance, our vision is to ensure that every life we touch, feels secure and enriched. Our Mission We shall be a guide and a mentor to people so that they are able to make the most informed insurance decisions to meet their life goals.  Our Values Customer Focused Be someone who places customers and their needs at the forefront while developing and managing their financial solutions. Mutual Respect Build mutual respect by being an equal partner, who knows and willingly shares, helping people go further, rather than walking ahead and leading them, or walking behind and following. Worthy of Trust Build trust by choosing the right path, rather than the easy path and tell the truth the way it is. Be someone who keeps promises, meets commitments and behaves with integrity at all times. 24
  25. 25. TRAINING REPORT 2013 Winning Be positive and confident; seize every moment, every day, with a winning perspective, fearlessly facing the uncertainties of life. The Rock Standing tall and firm. At DLF Pramerica, the Rock is not just a corporate symbol. It is the essence of our being. It is the icon of strength, stability, expertise and innovation and is the symbol of our unshakable commitment to our customers, stakeholders and employees. It is also the seal of security for the lives we touch. In fact, at the heart of everything we offer at DLF Pramerica - be it a sense of trust, a ray of hope or a dash of happiness, are values that are truly and quintessentially Rock-Solid.  Spirit Awards for Community Service THE 2013 PRAMERICA SPIRIT OF COMMUNITY AWARDS The Pramerica Spirit of Community Awards is a school-level recognition programme for volunteer community service. The objective is to encourage the efforts of school children currently engaged in voluntary community service and hold them up as role models for all young Indians. The programme is an extension of the Prudential Spirit of Community Awards, the largest youth recognition programme in the United States, which Prudential Financial, Inc. (PFI) has 25
  26. 26. TRAINING REPORT 2013 been conducting for the last 17 years to identify the country’s top youth volunteers. The annual recognition events for these winners are held in Washington, D.C. and include gala award ceremonies at the Smithsonian's National Museum of Natural History and the U.S. Chamber of Commerce, tours of the capitol historic monuments and landmarks, Congressional visits on Capitol Hill, a festive dinner cruise on Potomac river and many other exciting events. It also offers opportunity to the honourees from participating countries to share their experiences and ideas with one another. Honourees also hear from notable public figures. Past speakers have included Jimmy Carter, Barbara Bush, Magic Johnson, Richard Dreyfuss, Madeleine Albright, Martin Sheen, Rudy Giuliani, Whoopi Goldberg, Susan Sarandon, Colin Powell, Ted Danson, Peyton Manning, Sarah Fergusan (The Duchess of York), Laura Bush, Condoleezza Rice and numerous U.S. senators. Besides the United States, the Spirit of Community Awards programme is conducted in Japan, South Korea, Taiwan and Ireland. In India, the programme was introduced in 2010 and more than 3500 students from across the country have participated in this initiative since then. Awards & Recognitions DPLI was awarded as the "Best Insurer – Technology" by Asia Insurance Review and Celent (part of Oliver Wyman group) in the inaugural ‘Asia Insurance Technology Awards’ held in Seoul in November 2011. The company was recognised for its initiatives in using technology to make life insurance solutions accessible to the under-developed/ under-served markets. 26
  27. 27. TRAINING REPORT 2013 DPLI won the "Skoch Financial Inclusion Award" in 2011 for an innovative marketing initiative that aimed to generate awareness and understanding about the need and benefits of life insurance among rural customers. The Skoch Awards recognize organizations doing noteworthy work in the area of financial inclusiononship has to be taken care of in order to maintain the customer base on a long  Below are some plans offer by dlf pramerica life insurance  Protection Plans Life is uncertain and the future even more so. Keeping that in mind, it makes sense to think ahead and secure ourselves and our families from any eventuality. DLF Pramerica Life Insurance Company’s protection plans provide you and your family with the financial security you need in case of unfortunate events like death or on the inability to earn due to physical disabilities. DLF Pramerica Family Income Destiny is not a matter of chance; it is a matter of choice. So, when it comes to your family’s future why leave it to fate? The tomorrow of your family will take shape based on the decisions you take today. One right decision pays forever! It’s in your hands to ensure that your family continues to have a safe and secure life even if you are not around. It’s you who can ensure that despite your absence, your children grow up and fulfill their dreams and it’s for you to provide your wife a secure and hassle-free future. You will agree that to make all these wishes come true for them you will have to take the right decision NOW. 27
  28. 28. TRAINING REPORT 2013 DLF Pramerica Family First Your family, as your biggest source of happiness, is the world around which most of your decisions revolve. You take care of all their needs - whether it is getting your children their favorite treats or giving them the best possible education, from an evening in the park to a week-long holiday. You want to give them all. There’s nothing you’d like to deny them. Naturally, you would like them to have all this whether you’re there with them or not. This is where DLF Pramerica Family First protection plan will be your support. DLF Pramerica U-Protect Your life is precious, more so for your family and your loved ones. You are the one who make their world perfect. You are the one who spread happiness in their lives. After all, you are the one who work tirelessly to make sure that the lives of your loved ones are comfortable and well taken care of. Although we leave no stone unturned to make sure that all the needs of our family are met, yet we often leave a very big aspect unattended – the security of our family. In our busy lives, rarely do we pause for a moment and think of what would happen to our family in case something unfortunate was to happen. After all, life is full of uncertainties regarding the future and what it holds for us. Therefore, it becomes our duty as a responsible parent, a loving spouse or a dependable child to think ahead, plan and secure our family from any unfortunate happening.  Child Progress Plans As a parent you are the mainstay for building your children’s confidence through the care and support you provide them. Your most important responsibility is to secure your child’s future financially so that all his/her needs are met - from education to his/her marriage. Our child insurance plans work as hard as you to realize your dreams for your child, with the financial security to help you enjoy life, knowing that you have taken care of your child’s insurance needs. 28
  29. 29. TRAINING REPORT 2013 DLF Pramerica Fee Protect+ As a parent you understand the importance of a proper school education in securing your child’s future. While the school builds the foundation of all that your child will do in later life, helping you ensure the best possible education for your children is one of our highest priorities. DLF Pramerica Fee Protect As a parent, you understand the importance of a proper school education for securing your child’s future. That is the reason why you take extraordinary effort to ensure that your child gets the best possible schooling.While the school builds the foundation of all that your child will do in later life, helping you ensure the best possible education for your children is one of our highest priorities. DLF Pramerica Future Idols Gold As parents, you ensure that your children receive two things. The first one is a strong foundation for them to become fine adults. The second is a gentle, affectionate environment for them to blossom in. As parents, you will always be concerned about your children's security and what they become tomorrow. The fact remains though, that you cannot foresee your children's future but you can help shape it.  Savings Plans Your dreams for your loved ones come in all shapes and sizes, from the smallest of wishes to the highest of aspirations. And helping them realize these dreams is where most of your efforts are directed. When it comes to making your savings plans you have to ensure that you have planned for everything from saving for a rainy day to taking your family abroad on a holiday, from buying a new car to buying a bigger house, from getting your wife a nice anniversary gift to getting your daughter married. DLF Pramerica Life Insurance protection plans have been designed keeping this in mind and you can rest assured knowing that you have ensured that your family gets the best that life and you can offer. 29
  30. 30. TRAINING REPORT 2013 DLF Pramerica Dhan Suraksha We toil day in and day out so that our family can have a better tomorrow. We keep looking for opportunities to invest our hard earned money so our loved ones can have a brighter future. That’s why we need to plan our investments prudently so that the effort that we put in for the good/happiness of our family does not go waste. DLF Pramerica Dhan Suraksha gives you the key to strike the balance between maximum savings and protecting all that you have saved. DLF Pramerica Aajeevan Samriddhi Double the reason for you to smile – whole life protection with the advantage of a retirement payout at age 65. DLF Pramerica Assure Money + Have you ever noticed how those little things that you do bring the greatest of joys to your family? Like taking your kids out for an ice cream, or giving a bouquet to your wife, or getting your dad the latest book of his favorite author or, maybe, taking your mother to the temple over a weekend. Have you ever paused for a moment and wondered what makes these small gestures so special? It is because these small gestures constantly reinforce the belief that your family has in you – that of your selfless love and care.From you, they get the assurance of a safe, secure and a steady life that is full of delight and happiness. DLF Pramerica Wealth + Premier Your family is your world and their well-being is your biggest concern. But life is full of unexpected twists. So, who will protect them when you are not there? Isn’t it time you thought about their future and invested in a saving plan that’s designed to give more family protection than any other? DLF Pramerica Ezee Wealth + Life can get demanding at times and we often face our fair share of challenges - every day, every week, every month. From toiling hard for earning money to striving even harder for 30
  31. 31. TRAINING REPORT 2013 bringing happiness to our loved ones’ lives, we often find ourselves managing a lot of things that need our time and attention. As it is said, nothing in life comes easy. When it comes to investing in a savings plan to save for our family and secure their future, things look even more difficult. What if there was a solution that gave us the freedom to do just that? DLF Pramerica Wealth + Ace When we have a large sum of money, it is tempting to indulge ourselves with things that we so desire. While spending a little money from a windfall and enjoying a bit is only natural, it is far wiser to take advantage of it to plan and prudently build assets and investments that will secure your family’s happiness for the times ahead. DLF Pramerica Wealth+ Ace helps you use any lump sum amount in one go, in the best way possible… Just invest and forget! DLF Pramerica Tatkaal Suraksha Gold Take a moment and think of a typical day in your life. From morning till evening, you are caught up in a hundred things that demand your time and attention. You, in turn do your best in managing all of these. In doing so, often the urgent gets priority over the important, and you keep postponing essential things. For instance, buying yourself a life insurance cover. However, when it comes to something as important as insuring your life can you afford to put it off for later? Or excuse yourself from it simply because you don’t have time? Certainly DLF Pramerica Wealth Assure You constantly try to safeguard yourself and your family against the uncertainties in life. Given the choice, you would leave nothing to chance when it comes to your fulfilling your goals and ensuring your family’s financial security. At DLF Pramerica, we understand your concern and while we cannot guarantee a future without surprises, we can at least help you ensure that your family’s and your financial future remains secure. 31
  32. 32. TRAINING REPORT 2013 Group Plans DLF Pramerica Sarv Suraksha To help you ensure a worry free future, we are pleased to bring to you DLF Pramerica Sarv Suraksha. This extremely an affordable Group Term Insurance Plan offers you complete protection with convenience. The scheme is simple and hassle-free. In other words, peace of mind guaranteed. DLF Pramerica Group Term Plan A comprehensive protection plan that secures your group and their families from uncertainties arising due to the unfortunate death of the insured person. What's more, this plan provides enough flexibility to suit businesses of every need and scale, so that you can take the right step today and help protect your members from the unpleasant surprises in life. 32
  33. 33. TRAINING REPORT 33 2013
  34. 34. TRAINING REPORT 2013  RESEARCH METHODOLOGY Title: To determine customer-buying behaviour with a focus on market segmentation for DLF Pramerica Life Insurance. Title justification: The above title is self explanatory. The study deals mainly with studying the buying pattern in the insurance industry with a special focus on DLF Pramerica Life Insurance. The various segments of the markets divided in terms of Insurance Needs, Age groups , Satisfaction levels etc will also studied.  Objective Main Objective • To determine reasons behind opting for an insurance. • To provide the company with information of customer's Insurance policy if they have any and reasons for opting for that particular policies. To know the most preferred policy Other Objective • To determine customers perception towards private insurance companies and their expectation form private insurance companies. • To determine the feedback on services provided by any other insurance agent. • To study the types of benefits provided by insurance services. • To determine the use of Internet for valuable information and decision-making process. 34
  35. 35. TRAINING REPORT 2013  Research design • NON-PROBABILITY • EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customer’s perception and buying behavior, through this questionnaire.  Data collection : After the research design, research method and Sampling procedure is decided, the next main step is Collection of Data for related study with the help of Research Method decided. In this study, the research method decided is – Survey Method and Secondary Data Collection Method.  Survey Method provides primary Data i.e., first – hand information by filling-up the Questionnaires.  Secondary Data collected from different Brochures, books and internet  Sampling techniques Sampling Technique: Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judemental and convinent 35
  36. 36. TRAINING REPORT 2013  Sampling Unit: The respondants who were asked to fill out questionnaires are the sampling units. These comprise of employees of MNCs, Govt. Employees, Self Employeds etc.  Sample size: The sample size was restricted to only 100, which comprised of mainly respondents from different regions due to time constraints.  Scope of the study A big boom has been witnessed in Insurance Industry in recent times. A large number of new players have entered the market and are vying to gain market share in this rapidly improving market. The study deals with DLF Pramerica Life in focus and the various segments that it caters to. The study then goes on to evaluate and analyse the findings so as to present a clear picture of trends in the Insurance sector.  Significance of the study  Significance to the industry This is a limited study which takes into consideration the responses of 100 people. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapiddly changing and evolving sector. People are only beginning to wake up to it’s vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.  Significane for the researcher To facilitate and provide all the useful informtaion of the studt, the company, the insurance industry and also provide marketing ways, methods of DLF Pramerica Life insurance. 36
  37. 37. TRAINING REPORT  2013 .Limitations of the research 1.The research is confined to a certain parts of haryana and does not necessarily shows a pattern applicable to all of Country 2. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. 3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings. 37
  38. 38. TRAINING REPORT 2013  STUDY OF THE TOPIC In a phase when Indian Insurance Industry is undergoing regulatory and policy level changes, and the industry is looking to grow at a high rate, low insurance penetration still remains a matter of concern for all. At this stage, it becomes important to understand and the buying behaviour of existing customers i.e. what actually motivates them to take a purchase decision? Evaluate the needs of potential customers in terms of what type of product are they looking for? Identify the challenge areas in customer service that should be dealt on a priority basis so that the levels of satisfaction of customers can be improved for business reputation and continuation. In the context of the above, the present study was conducted with an objective to analyze the buying behaviour of the respondents with respect to life insurance and to explore any pattern in this behaviour based on socio-economic and geographical parameters. The study also aimed at evaluating the level of customer satisfaction on services of life companies and awareness levels on various aspects of the policy held by them.  Some of the Main findings are:  Majority of the respondents displayed a risk averse nature; they saved in low risk and regular return instruments; Securing future of their children and meeting for postretirement expenses was their prime motive to save; Tax saving was not in the top three motives for savings;  Rate of return was secondary in importance and security of their savings was a major priority while choosing instruments;  People looked for medium term instruments and had lower preference to very short term and very long term instruments;  Around 77 percent of the respondents perceived that their present savings was not capable of fully meeting the requirements of critical illness and prolonged hospitalization; 38
  39. 39. TRAINING REPORT  2013 There was a predominant preference to agency channel by both current and potential customers;  Average preference for agency as a channel among potential customers seen to be lower when compared to existing customers;  Average preference for banks and internet seen to increase Marginally among potential customers. Younger age group shows an inclination to usage of banking and internet channel.  Endowment and Money back among top preference by both existing and potential customers. However, a trend towards preference for life policy with fixed benefits (health) by potential customers seen.  Perception on insurance as an instrument for saving seen to be very strong;  Better returns from other instruments quoted as the main reason for non-purchase of Insurance; affordability also remains a hindrance factor for potential buyers.  Trustworthiness is the key determinant while choosing a company for purchase of life products; existing customers also looked at Brand Name/Image;  Only one-fourth of the existing customers are fully satisfied with the overall services of their life companies  A major proportion of the customers are ignorant of the minute details of their policies;  Customer Grievances seen to revolve mostly around ULIP's and Policy servicing matters; 39
  40. 40. TRAINING REPORT 40 2013
  41. 41. TRAINING REPORT 2013  DATA ANALYSIS & INTERPRETATION 1. Respondents perception about best form of investment for securing their future NO. OF RESPONDENT %age investment FIXED assets 75 33 Bank deposits 11 5 Jewellery 25 11 Securities i.e bonds;mfs 40 17 Shares 10 4 insuarance 70 30 interpretation • 33% of the respondents as with the view that Fixed Assets is the best form of investment for securing their future. • 30% of the respondents are with the perception that Insurance is the best form of investment for securing their future, which is one of the highest and this shows that insurance is an important key for securing your future. 41
  42. 42. TRAINING REPORT 2013 2. What people intent to gain from their investment RESPONSE NO. OF RESPONDENCE %age Savings & returns 100 38 Security 90 35 Tax benefits 71 27 interpretation • 38% of the respondents intent to gain saving and returns from their investment. • 35% of the respondent’s intent to gain security from their investments. • Whereas, 27% of the respondent’s intent to gain tax benefits from their investments 42
  43. 43. TRAINING REPORT 2013 3.People perception about insurance RESPONSE NO. OF RESPONDENT %age A saving tool 81 32 A tax saving device 74 29 A tool to protect your family 100 39 Interpretation • 32% of the respondents have perception of Insurance being a saving tool. • And 29% of the respondents have perception of Insurance being a tax saving device. • But 39% of the respondents are with the view that Insurance is a tool to protect your family 43
  44. 44. TRAINING REPORT 2013 4. Peoples having insurance RESPONSE NO. OF RESPONDENCE %age YES 70 70 NO 30 30 Interpretation •Of the sample size of 400 surveyed respondents 70% of the respondents are having Insurance policy. 30% of the respondents are either not having any Insurance policy at present or their policy is already matured. 44
  45. 45. TRAINING REPORT 2013 5. Reasons behind for insurance RESPONSE NO.OF RESPONDENTS %age Tax saving 80 31 Saving/investment 80 31 Family protection 100 38 Interpretation • 31% of the Respondents opted for Insurance for tax saving benefits. • 31% of the Respondents opted for saving / Investments. • But all of them, i.e. 38 of the respondents have opted for insurance for their family protection 45
  46. 46. TRAINING REPORT 6.Number of insurance policy type respondents POLICY TYPE NO. OF RESPONDENT %age LIFE POLICY 75 52 NON LIFE POLICY 25 17 BOTH 45 31 Interpretation  46 52% of the respondents have Life Insurance Policy while 31% have both. 2013
  47. 47. TRAINING REPORT 2013 7. Features of insurance policy that attracted respondents FEATURE NO. OF RESPONDENTS Money back guarantee Larger risk coverance Easy access to agents Low premium Compony reputation TOTAL 15 37 7 30 11 100 %age 15 37 7 30 11 100 Interpretation  Majority of the respondent (37%) found Larger risk coverance as the most attracted feature of the all. 47
  48. 48. TRAINING REPORT 2013 8. Benefits of insurance perceived by respondents benefits no.of respondents share (%) Benefits Cover future uncertanity Tax deduction Future investment Total No of respondent 55 20 25 100 %age 55 20 25 100 Interpretation  55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy. Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively 48
  49. 49. TRAINING REPORT 9. Number of respondents paying tax RESPONCE NO. OF RESPONDENTS % Paying tax Not paying tax Total 100 0 100 100 0 100 Interpretation Of the sample size of 400 respondents, all the respondents are paying tax 10.Respondent’s investments for tax saving INVESTMENT NO. OF RESPONDENTS %age LIC 51 30 NSC 33 19 BONDS 32 19 PPF 25 14 PF 21 12 49 2013
  50. 50. TRAINING REPORT 11 EPF 2013 6 Interpretation • 30% of the respondents save their tax by investing in LIC, which is the highest among all Investment. This shows that most people for getting taxes benefits invest in LIC. • 19% of the respondents do their tax saving by investing in NSC. •19% of the respondents to their tax saving by investing in bonds 11.PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES COMPANY NAME NO OF RESPONDENT %age LIC 78 78 DLF 2 2 ICICI 10 10 SBI 7 7 RELIANCE TOTAL 3 3 50 100 100
  51. 51. TRAINING REPORT 2013 RELIANCE SBI SHARES% ICICI NO OF RESPONDENT DLF LIC 0 20 40 60 80 INTERPRETATION  78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents. 12. People opinion about indian insurance companies RESPONSE NO. OF RESPONDENTS %age Rigid plans 67 35 Non user friendly 29 15 Unsatisfactory services 26 14 Non aggressive 35 18 Satisfactory 24 13 Good 10 5 Very good 0 0 51
  52. 52. TRAINING REPORT 2013 interpretation • 35% of the respondents have the opinion that Indian Insurance Companies have Rigid plans. • 15% feel that Indian Insurance companies are Non-user friendly. • 14% feel that services of Indian Insurance companies are Unsatisfactory. • 18% of the respondents are with the view that Indian Insurance companies are Nonaggressive. • 13% of the respondents feel that products and services of Indian Insurance companies is Satisfactory. • Whereas only 5% feel that it is Good enough. • And according to the data, no single person has felt that it is very good 52
  53. 53. TRAINING REPORT 2013 13.people interested in going for insurance if a service provider away from the city offers better service & products RESPONSE NO. OF RESPONDENTS %age Yes 43 43 No 44 44 Uncertain 13 13 Total 100 100 interpretation • The interested customers i.e. 43% are ready to go for insurance even away from a city if services and products are worthwhile, which again is a good prospect (potential) for Reliance Life Insurance to take them on their favor. 53
  54. 54. TRAINING REPORT 2013 14. People’s perception on appropriate age for buying insurance RESPONSE NO. OF RESPONDENTS %age After 25yrs 29 29 After 35yrs 10 10 After 45yrs 0 0 Anytime 60 60 interpretation • 29% of the respondents are with the view that insurance should be bought after the age of 25 years. • 10.5% of the respondents are with the view that insurance should be buyed after the age of 35 years. • Whereas, 60.5% of the respondents are with the view that buying of insurance do not have any thing to do with age i.e. there is no age limitations. It can be purchased any time 54
  55. 55. TRAINING REPORT 15.Satisfaction of respondents with respect to policy RESPONCE NO. OF RESPONDENTS %age Satisfied 60 60 Not satisfied 40 40 Not responded 0 0 Total 100 100 interpretation • 60% of the respondents are more or less satisfied with their existing policy. • 40% of the respondents are not satisfied with their existing policy. • In this case all of those who have taken a policy have responded. 55 2013
  56. 56. TRAINING REPORT 2013 16.Satisfaction of +respondents with respect to service agent RESPONCE NO. OF RESPONDENTS %age Satisfied 45 45 Not satisfied 55 55 Not respondent 0 0 Total 100 100 interpretation • 45% of the respondents are satisfied with their existing service agent. • 55% of the respondents are not satisfied with their existing insurance agent. • All of those who have taken a policy have responded 56
  57. 57. TRAINING REPORT  2013 FINDINGS 1.As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. The company should try to expand & build up its infrastructure because there is a large potential for insurance in India. 2.Company should come up with its branch in delhi. With the objective and goals to meet the demands & expectations of the public. Because the entrance of private players will increase the competition and it would be a tough task to secure a good position in market. 3.Since DLF PRAMERICA LIFE INSURANCE LTD is leading with several companies’ policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship. 4.As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers. 5.43% of the customer is even ready to go for insurance if a service provider away from their home is providing it. But intend they should provide good products and services. The company should try to convince these customers and get them in its favor 57
  58. 58. TRAINING REPORT 2013  CONCLUSION Our exhaustive research in the field of Life Insurance threw up some intresting trends which can be seen in the above analysis. A general impression that we gathered during Data collection was the immense awareness and knowledge among people about various companies and their insurance products. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money. People in general have been impressioned by the marketing and advertising campaigns of insurance companies. A high penetration of print , radio and Television ad campaigns over the years is beginning to have it’s impact now. Another heartning trend was in terms of people viewing insurance as a tax saving and investment instrument as much as a protective one. A very high number of respondants have opted for insurance for such purposes and it shows how insurance companies ahve been successful to attract public money in recent times. The general satisfaction levels among public with regards to policy and agents still requires improvement. But therein lies the oppurtunity for a relative new comer like DLF PRAMERICA Life Insurance Company Ltd . LIC has never been known for prompt service or customer oriented methods and DLF PRAMERICA Life can build on these factors. 58
  59. 59. TRAINING REPORT 2013  Policy Implication Based on this study, a few suggestions for the life insurance industry in India regarding their policy pricing strategies can be made. The price level should be well within the affordability level of the customer. Flexibility and convenience of terms of payment must be followed as per the requirements of the potential customer. The life insurance companies must ensure that the price of the policy should not exceed its worth as anticipated by the buyer. Again, a transparent comparison with the price levels of similar policies provided by the rival companies should be made before the prospective buyers. A clear and simple price structure should be provided by the selling companies to the customer that can be understood easily by a lay man. Further, discounts and incentives should be included in the pricing structure in order to attract buyers. There should not be any hidden cost which is most rampant in India. Now, almost all the life insurance companies are inching towards a low-premium policy era making the poorer rural sections eligible to possess the most elusive life insurance cover. They are providing the costs and benefits of the policies and proper justification for the relevant pricing. They are renovating the products to become worthy of their buying price. They are also adding lot of add-on benefits to the products to attract the recession-hit cashstrapped customers. Life insurance policy pricing strategy adopted by the insurers must incorporate the customers‟ expectations along with their apprehensions in order to influence their buying behaviour. 59
  60. 60. TRAINING REPORT 2013  SUGGESTIONS .  There is a very good market for Insurance companies in India, companies must have to spent money on Marketing Strategies.  The survey show’s less than 20% have their Insurance policy, more than 80% persons don’t have a Insurance policy. This show’s a good opportunity for Insurance.  Companies must have to open their branches in every city and gives complete information about company and company schemes.  Companies must have to convince the persons that, this is not a fraud company. 60
  61. 61. TRAINING REPORT  BIBLIOGRAPHY 1. BOOKS/MAGAZINES REFFERED:  STUDY GUIDE- PRINCILES & PRACTICES OF LIFE / GENERALINSURANCE,by AIMA.  Books published by INSURANCE INSTITUTE OF INDIA  LIFE-INSURANCE, by Mc GILL  INSURANCEWATCH.  MONEYOUTLOOK. 2. WEBSITES REFFERED:  WWW.CIFAINSURANCE.COM  WWW.MONEYOUTLOOK.COM  WWW.INSURANCE.IND.COM  WWW.dlfpramericalifeinsuarance.COM o3. REPORTS/ARTICLES REFFERED:  REPORT: ISSUES & CHALLENGES FACING THE INSURANCE INDUSTRY….Dec2005.  BRIEF PROFILE OF LIC, INDIA…Dec 2006.  REPORT: COPING WITH COMPETITION…Jan2007 61 2013
  62. 62. TRAINING REPORT  APPENDIX  QUESTIONNAIRE QUESTIONNAIRE 1. ARE YOU EMPLOYED? YES NO If YES, only then proceed 2. YOUR MONTHLY INCOME? a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify 3. WHICH IS THE BEST FORM OF INVESTMENTS? (RANK THEM) a) FIXED ASSETS b) BANK DEPOSITS c) JEWELLERY d) SECURITIES, i.e. Bonds, MFs e) SHARES f) INSURANCE 4. DO YOU HAVE ANY INSURANCE POLICY? YES NO 5. WHICH INSURANCE POLICY DO YOU HAVE? LIFE NON-LIFE BOTH 6. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST? (RANK THEM) a) LIC b) ICICIPRUDENTIAL c) SBI LIFE INSURANCE d) ING VYSYA LIFE e) RELIANCE LIFE INSURANCE f) DLF Pramerica g) ANY OTHER ________( Specify) 62 2013
  63. 63. TRAINING REPORT 2013 7. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? (Please Tick) a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______ (Specify) 8. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT? (RANK THEM) a) LOW PREMIUM b) LARGER RISK COVERANCE c) MONEY BACK GUARNTEE d) REPUTATION OF COMPANY e) EASY ACCESS TO AGENTS f) ANY OTHER _________ (Specify) 9. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER? (RANK THEM) a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONS c) FUTURE INVESTMENT d) ANY OTHER _________ (Specify 10. WHAT’S YOUR PERCEPTION ABOUT INSURANCE? (RANK THEM) a) A SAVING TOOL b) A TAX SAVING DEVICE c) A TOOL TO PROTECT FUTURE 11. DO YOU PAY TAXES? YES NO 12. WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM) a) LIC b) NSC c) BONDS d) PPF e) PF f) EPF 63
  64. 64. TRAINING REPORT 2013 13. WHAT’S THE RIGHT AGE TO BUY INSURANCE? a) AFTER 25 Yrs b) AFTER 35 Yrs c) AFTER 45 Yrs d) ANYTIME 14.HOW WOULD YOU RATE INDIAN INSURANCE COs? a) RIGID PLANS b) NON-USER FRIENDLY c) UNSATISFATORY SREVICES d) NON-AGGRESSIVE e) SATISFACTORY f) GOOD g) VERY GOOD 15. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS? a) YES b) NO c) UNCERTAIN 16. ARE YOU SATISFIED WITH THE POLICY? a) SATISFIED SAVING TOOL b) NOT SATISFIED c) NOT RESPONDING 17. ARE YOU SATISFIED WITH THE SERVICE AGENT? a) SATISFIED SAVING TOOL b) NOT SATISFIED c) NOT RESPONDING THANK YOU NAME:_________________________ ADDRESS:______________________ ______________________________ OCCUPATION:__________________ 64
  65. 65. TRAINING REPORT 65 2013

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