Pragya_complete Study of Agency Module of Reliance Life Insu
Transcript of Pragya_complete Study of Agency Module of Reliance Life Insu
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PROJECT REPORT ON
COMPLETE STUDY OF AGENCY
MOUDLE
OF LIFE INSURANCE
A report submitted in partial fulfilment
Of the requirement of MBA Program of
2007-2008 at WISDOM BANASTHALI UNIVERSITY
SUBMITTED BY :-
PRAGYA MAJEJI
MBA II SEM
ROLL NO:- 7726
BANASTHALI UNIVERSITY
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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 Indias 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 benefitwill 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.
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EXECUTIVE SUMMARY
In todays 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 RELIANCE LIFE INSURANCE
has given me the opportunity to work and get experience in highly
competitive and enhancing sector.
The success story of good market share of different marketorganizations 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, and
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 throughwhich policies and benefits of the company can be explained to the
customer.
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CONTENTS
INTRODUCTION TO THE INDUSTRYINTRODUCTION TO THE COMPANY
CHAIRMAN PROFILE
BOARD OF DIRECTORS
ABOUT RELIANCE
OBJECTIVES
CORE VALUES
PLANS OFFERED
RESEARCH METHODOLOGY
Title
Objective of the Study
Scope of the Study
Significance of the Industry
Significance of the Research
Research Technique
Sampling Methodology
Sampling unit
Sampling Area
Sample Size
Limitations
MARKETING STRATREGIES
FACTS AND FINDINGS
DATA AND INTERPRETATION
RECOMMENDATIONS
CONCLUSION
BIBLIOGRAPHY
ANNEXURE
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TOGETHER WIN THE WORLD
INTRODUCTION TO THE INDUSTRY
THE HISTORY OF INDIAN INSURANCEINDUSTRY
Life Insurance
In 1818 the British established the first insurance company in India inCalcutta, 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 acertain 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
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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.
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 setminimum solvency margins and the Tariff Advisory Committee set up.
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1972: The General Insurance Business (Nationalization) Act, 1972
nationalize the general insurance business in India with effect from 1st
January 1973. 107 insurers amalgamated and grouped into four
companies viz.
The National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd. and the United
India Insurance Company Ltd. GIC incorporated as a company.
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MAJOR PLAYERS IN THEINSURANCE INDUSTRY IN INDIA
Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) was established on 1September 1956 to spread the message of life insurance in the country
and mobilise peoples 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.
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.
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IN ADDITION TO ABOVE STATE INSURERS THEFOLLOWING HAVEBEEN PERMITTED TO ENTER INTO
INSURANCE BUSINESS: -
The introduction of private players in the industry has added to the
colours 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 stepstaken 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).
1. HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Company Ltd. is one of Indias
leading private life insurance companies, which offers a range of
individual and group insurance solutions. It is a joint venture between
Housing Development Finance Corporation Limited (HDFC Ltd.),
Indias leading housing finance institution and The Standard Life
Assurance Company, a leading provider of financial services from 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 International, a
global expert in life insurance. With their various Products and Riders,
there are more than 400 product combinations to choose from. They
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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 bancassurance and 150 corporate agent tie-ups.
4. Kotak Mahindra Life Insurance Co. Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture
between Kotak Mahindra Bank 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.
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6. Reliance Life Insurance Company Limited
Reliance Life Insurance, a part of the Reliance - Anil Dhirubhai
Ambani Group is India's fastest growing life insurance company and
among the top 5 private sector life insurers.Reliance Life Insurancehas a pan India presence and a range of products catering to individual
as well as corporate needs. Reliance Life Insurance has over 700
branches and 1,50,000 agents. It offers 23 products covering savings,protection & investment requirements. Reliance Life Insurance will
endeavour to attain a leadership position in the market over the next
few years, by further expanding and strengthening its distribution
network and offering a diverse array of products to suit the varied and
specific needs of individual customers.
7. TATA AIG General Insurance Company Ltd.
Tata AIG General Insurance Company Ltd. is a joint venturecompany, formed from the Tata Group and American International
Group, Inc. (AIG). 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.
8. Reliance General Insurance Company Limited.
9. IFFCO Tokio General Insurance Co. Ltd.
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CHAIRMAN PROFILE
Regarded as one of the foremost corporate leaders of contemporary India,
Anil Dhirubhai Ambani is the Chairman of all listed Group companies,
namely: Reliance Communications, Reliance Capital, Reliance Energy
and Reliance Natural Resources Limited.
He is also Chairman of the Board of Governors of Dhirubhai Ambani
Institute of Information and Communication Technology, Gandhi Nagar,
Gujarat.
Till recently, he also held the post of Vice Chairman and Managing
Director in Reliance Industries Limited (RIL), Indias largest private
sector enterprise.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer,
and was centrally involved in every aspect of the companys management
over the next 22 years.
He is a member of:
Wharton Board of Overseers, The Wharton School, USA
Central Advisory Committee, Central Electricity Regulatory Commission
Board of Governors, Indian Institute of Management, Ahmedabad
Board of Governors Indian Institute of Technology, Kanpur
In June 2004, he was elected for a six-year term as an independent
member of the Rajya Sabha, Upper House of Indias Parliament a
position he chose to resign voluntarily on March 25, 2006.
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BOARD OF DIRECTORS
1) Amitabh Jhunjhunwala, Vice-Chairman
Amitabh Jhunjhunwala, an FCA, has over 23 years of experience in
finance and the capital markets. Amitabh is also the
Director of Reliance Capital Asset Management Limited.
(2) Rajendra Chitale, Independent Director
Rajendra P. Chitale, an eminent Chartered Accountant, is the Managing
Partner of M/s M. P. Chitale & Co. He is a Director on Boards of the
National Stock Exchange of India (NSE). He is also a member of the
Advisory Group on Derivatives and the Takeover Panel, Securities and
Exchange Board of India, as well as the Company Law Advisory
Committee of the Government of India.
(3) Shri C. P. Jain
Shri C.P. Jain, aged 60 years, is the former Chairman andManaging Director of National Thermal Power Corporation(NTPC). Shri Jain has an illustrious career spanning over fourdecades of contribution in the fields of financial management,general management, strategic management and businessleadership.
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ABOUT RELIANCE
Reliance Life Insurance Company Limited is a part of Reliance
Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance
Capital is one of Indias leading private sector financial services
companies, and ranks among the top 3 private sector financial services
and banking companies, in terms of net worth. Reliance Capital has
interests in asset management and mutual funds, stock broking, life
and general insurance, proprietary investments, private equity and
other activities in financial services.
Reliance Capital Limited (RCL) is a Non-Banking Financial
Company (NBFC) registered with the Reserve Bank of India
under section 45-IA of the Reserve Bank of India Act, 1934.
Reliance Capital sees immense potential in the rapidly growing
financial services sector in India and aims to become a
dominant player in this industry and offer fully integrated
financial services.
Reliance Life Insurance is another step forward for Reliance
Capital Limited to offer need based Life Insurance solutions to
individuals and Corporates.
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OBJECTIVES
(1) Make affordable insurance accessible to all
(2) Keep customer as focal point for all operations
(3) Protect policy holders interests
(4) Adopt best international practices in claims, underwriting and policy
servicing
(5) Be the most innovative in product development
(6) Establish Pan India presence
Value propositions
Risk Evaluation: Provide expertise in risk evaluation and risk mitigation
leading to the most appropriate risk transfer solution.
Post sales services: Differentiate on service parameters by ensuring
prompt and correct documentation& fair, transparent, speedy claims
settlement.
New products: Introduce innovative products suited to specific market
segments
Training: Extensive training to the employees involved in underwriting
and claims to ensure availability of a varied experienced and competent
team to cater to the customer needs.
Technology: Use IT as a means to provide for a far superior customer
experience in terms of access, speed and simplicity
Reinsurance backing: Apart from using capacity of the national
reinsurer, establish relationships with the best reinsurers across the world.
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CORE VALUES
Opportunity has a new name Reliance Life Insurance Company
Limited. If you have been waiting for that one job which will enrich
your professional and personal life then you are at the right place. At
Reliance Life Insurance Company Limited ,the mission is to be the best
in every sphere - business results, customer care and employee focus.
Some of the important core values are:
In the area of Human Resources RELIANCE INSURANCE looking
towards fulfilling their core values through:
An open environment enabling free interaction between all levels.
A balanced scorecard approach to strategy deployment and
performance measurement which set goals and measure financial,
customer focused, process related and employee development related
initiatives.
Aggressive Reward & Recognition plans including sales incentives.
Career Development plans that will identify potential and create
avenues for growth.
Intensive training practices for both functional as well ascompetency development.
Knowledge sharing and certification practices.
Planned team building and fun events.
Creating Reliance Life Insurance family including employees,
associates and their families.
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PLANS OFFERED BY
RELIANCE LIFE INSURANCE
INSURANCE PLANS AVAILABLE
1. Products (Individual Plans)
Savings (Endowment)
2. Reliance Endowment Plan(formerly Divya Shree)
3. Reliance Special Endowment Plan
(formerly Subha Shree)
4. Reliance Cash Flow Plan
(formerly Dhana Shree)
5. Reliance Child Plan
(formerly Yuva Shree)
6. Reliance Whole Life Plan
(formerly Nithya Shree)
Pensions
7. Reliance Golden Years Plan
(formerly Bhagya Shree)
Investments
8. Reliance Market Return Plan
(formerly Kanaka Shree)
9. Reliance Automatic Investment Plan
10. Reliance Super InvestAssure Plan
11. Reliance Term Plan
(formerly Raksha Shree)
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Products (Group / Corporate Plans)
12.Risk (Protection)Reliance Group Term Assurance Policy
(formerly Group Term Assurance Policy)
Reliance EDLI Scheme
(formerly EDLI Scheme)
13.Pensionsa. Reliance Group Gratuity Policy
(formerly Group Gratuity Policy)
b. Reliance Group Superannuation Policy
(formerly Group Superannuation Policy)
14. Reliance Money Guarantee Plan
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The 3 plans that are discussed below are
studying in detail.
Reliance Automatic Investment Plan
Key Benefits
Automatic Asset AllocationAsset Allocation according to your risk at a particular
age
Systematic Transfer Plan Helps to average out the cost of units
Exchange OptionOption to move between in and out of specific Reliance
Life ULIP
Other Benefits
Fund options Choice of 7 carefully designed funds
Riders Accident Death & Disability and Term Riders
Tax Benefit Under section 80C and 10(10D)
Unmatched Flexibility
Top UpsCan be used to increase the investment component in
the policy
Partial Withdrawals Provides liquidity in case of need
Switching Options Flexibility to switch between funds
Premium Redirection To change fund configuration for future premiums
\Settlement Options Keep the money invested and receive in installments
Premium payment Options Flexibility to pay premiums in over different modes
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Reliance Super Invest Assure Plan
Regular Premium Unit Linked Insurance Plan
Guaranteed Additions up to 250% of annual premium inaddition to earnings growth (10 th year 50% - 15th year 50%, 20
th year 50%, 25th year 50% and 30th year 50%)
Wide array of 8 fund options including 3 Sectoral Funds and a Pure
Equity Fund
Liquidity through partial withdrawals
Life Cover upto 20 times Annual Premium Depending on Age
Unparalleled investment flexibility through Free Switches, Top-
ups, Systematic Transfer, Premium Redirection and Exchange
Additional Protection with Riders (Reliance Term Life, Reliance
Accidental Death & Total & Permanent Disablement, Reliance
Critical Conditions (25) & Reliance Major Surgical Riders)
Wide Investment Optionswith over 7 funds
Liquidity through PartialWithdrawals
Protection with Life Cover,additional protection withAccident & Health Riders
Rewards in form of GuaranteedAdditions of upto 250% ofannual premium amount
Tax saving u/s 80 C,80D & 10 (10D)
Unmatched flexibilityon your investments
RELIANCE SUPERINVESTASSURE PLAN
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Reliance Money Guarantee Plan
All Basic premiums are guaranteed across all terms
4 fund option with 60% equity exposure
Top-ups available
Rs 40 policy admin charge
Applicable between 30 days to 55 years
Guarantee continues on base policy even after withdrawal from
top-ups
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RESEARCH METHODOLOGY
TITLE:
To determine customer-buying behavior with a focus on market
segmentation for Reliance 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 Reliance life Insurance. The various segments of the
markets divided in terms of Insurance Needs, Age groups ,
Satisfaction levels etc will also studied.
OBJECTIVE
Objective One
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.
Objective Two
To determine customers perception towards private insurance
companies and their expectation form private insurance
companies.
To determine the feedback on services provided by any otherinsurance agent.
To study the types of benefits provided by insurance services.
To determine the use of Internet for valuable information and
decision-making process.
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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 Reliance in focus and the various segments
that it caters to. The study then goes on to evaluate and analysethe 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 theresponses 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 its 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 reliance life insurance.
RESEARCH DESIGN
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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 customers
perception and buying behavior, through this questionnaire.
SAMPLING METHODOLOGY
SamplingTechnique: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 judgmental and convenient
Sampling Unit:
The respondents who were asked to fill out questionnaires are thesampling units. These comprise of employees of MNCs, Govt.
Employees, Self Employed etc.
Sample size:
The sample size was restricted to only 100, which comprised of
mainly peoples from different regions of Indore due to time
constraints.
Sampling Area :
The area of the research was Indore, India
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LIMITATIONS OF THE RESEARCH
1. The research is confined to a certain parts of Delhi 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.
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FACTS/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 forinsurance 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 Reliance Life Insurance 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 greaterattention to the service part provided to their customer and
thereby forming a long and trusted relationship.
DATA ANALYSIS AND
INTERPRETATION
1. Respondents of the sample size as per the market
share of the companies.
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COMPANY NAME RespondentLIC 62RLIC 7ICICI PRUDENTIAL 9SBI LIFE 6
OTHERS 12
MARKET SHARE AS PER THE RESPONDANT
65%7%
9%
6%
13%
LIC
RLIC
ICICI PRUDENTIAL
SBI LIFE
OTHERS
Interpretation:-
1. As per the respondents of the survey LIC still maintains its top
position with 65%.
2. Among the private sector companies there is a tough compition
after the LICs position.
3. ICICI PRUDENTIAL still the largest sector InsuranceCompany but SBI LIFE, RLIC, HDFC STANDARDS are hot
on heals of ICICI PRUDENTIAL.
2. Purpose of the ULIP as per the respondents.
BenefitsResponden
t
Future Investment 35
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Cover Uncertanity 40
Tax saving 25
PURPODE OF ULIP AS PER THE RESPONDENTS
35%
40%
25%
Future Investment
Cover Uncertanity
Tax saving
Interpretation:-
1. According to the sample survey 40% of the respondents take
ULIP as per future uncertainty.
2. About 35% of the respondents take ULIP for future
investment/savings.
3. Only 25% of the respondents take ULIP as per tax saving tool.
3. The percentage of people who are covered under
insurance policy.
responses no. of respondents
yes 8
No 92
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People covered under insurance policy
yes
8%
no
92%
yes
no
Interpretation:-
1. Only 8% of the people are covered by insurance according to
the survey.
2. A huge majority of 92% of the people are not covered under
insurance.
4. As per the sample size the respondents behaviortowards the insurance sector.
policy type no. of respondentsLife policy 80non life policy 20both 20none 70
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respondents as per the policy covered and not
life policy
41%
non life policy
11%
both
11%
none
37%life policy
non life policy
both
none
Interpretation:-
1. According to the survey 41% of the respondents take ULIP as
for insurance cover.2. About 37% of the respondents do not believe in ULIP.
3. An equal share is distributed between as per non life policy and
both.
5. Buying behavior of the respondents.
Buying process No. of respondentsDirect companuy 20Through agents 80
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Data show byuing behaviour of people
direct companuy
20%
through agents
80%
direct companuy
through agents
Interpretation:-
1. According to the survey people who buy insurance 80% of
them are approached by the sales person of the company.
2. About 20% of the people approach the company directly.
MARKETING STRATEGIES
Reliance life insurance industry continued to face challenges from low
interest rates and heavy pressure from financial sales channels. To ensurestable and fair operation of the life insurance industry, the securities
oversight institutions implemented an RBC system, enacted liberalization
of the policy dividend system, and began easing of caps on foreign
investment. These steps helped to solidify the foundations for a sound
and impartial life insurance industry.
To respond to a rapidly changing industry environment .Reliance Life
has employed a number of proactive and effective operating strategies,
worked to strengthen its competitiveness and reinforce its marketleadership position. These strategies include developing strategic
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products to satisfy customer requirements, actively opening up new sales
channels, implementing a CRM system to promote diversified marketing
campaigns, and continuing to recruit high-calibre marketing personnel to
the organization to lead the organizational restructuring.
Reliance Life Insurance is committed to a business philosophy based on
placing customers first and emphasizing corporate social responsibility.
We will continue to develop dynamic, innovative services to satisfy ourcustomers. Examples include being the first to implement electronic
signatures in our online insurance policy system, supporting the Cloud
Gate Dance Theatre's outdoor performance for eight years in a row and
sponsoring the 28th annual national children's drawing competition. For
the last six years in a row Because of our outstanding operational
achievements, Reliance have received awards from professional
organizations and magazines as an industry-leading brand.
As interest rates in the financial sector remain low and with theliberalization of policy dividends, all aspects of their business-property,
accident and health insurance-are actively expanding sales channels to
face the challenge of an increasingly competitive market.
Reliance Insurance is focused on an operational strategy based on
professional leadership, innovative service and superior marketing to
develop new prospects, and is actively implementing more forward-
looking and concrete strategies. Reliance Insurance is strengthening
product and sales channel development, and promoting integrated
marketing to boost overall efficiency-in the finance area, we are
strengthening asset management and risk control to improve the
efficiency of capital utilization.
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SWOT ANALYSIS
SWOT expands to Strength, Weakness, Opportunities and
Threats.
STRENGTH WEAKNESS
Highly skilled sales
force (70000)
Array of products.
Higher customer
satisfaction
Communication gap
between differentfunctional area of
company
Complesency
OPPORTUNITIES THREATS
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Technology
enhancement.
Exploring newermarket
Competitors.
Fluctuation in market.
RECOMMENDATIONS
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 Reliance Life Insurance 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 andtrusted relationship.
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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.
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 shouldtry to convince these customers and get them in its favor.
The recruitment of advisors should be quality wise instead of
quantity wise.
There should be flexible working hours to avoid
dissatisfaction among employees.
Insurance Claim should be setteled on time.
The RLIC should start various training programmes on the
regular basis so that employees can able to solve the queriesof customers.
CONCLUSION
An 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 i 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 impression by the marketing and advertisingcampaigns of insurance companies. A high penetration of print, radio and
Television ad campaigns over the years is beginning to have its impact
now. Another heartening 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 respondents have opted for insurance for such
purposes and it shows how insurance companies have been successful to
attract public money in recent times.
In todays corporate and competitive world, I find that insurance sectorhas the maximum growth and potential as compared to the other sectors.
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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 RELIANCE LIFE INSURANCE
has given me the opportunity to work and get experience in highly
competitive and enhancing sector.
The success story of good market share of different market organizations
depends upon the availability of the product and services near to thecustomer, 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, and MAX etc have adequate agents in the
market they can capture big market as compared to the other companies
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.RELIANCELIFE.CO.IN
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WWW.INSURANCE.IND.COM3.REPORTS/ARTICLES
ANNEXURE
QUESTIONNAIRE
Dear Sir/Madam
I am a student of Banasthali UNIVERSITY. I am undertaking
a survey as a part of my Management Training course.
1. ARE YOU EMPLOYED?
YES/NO If YES, only then proceed
2. HOW MUCH IS YOUR EARNING FOR THE MONTH ?
a. Below 10000
b. 10000-20000c. Above 20000
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3. DO YOU HAVE ANY INSURANCE POLICY?
YES/NO
4. HOW MUCH IS YOUR SAVING FOR THE MONTH ?
a. Below 2000
b. 2000-4000
c. 4000-6000
d. Above 6000
5. YOUR SAVING IS IN WHICH MEDIUM ?
a. Government Scheme (Post Office)
b. Saving in Bank
c. Insurance
d. Others / money market
6. WHICH INSURANCE POLICY DO YOU HAVE?
LIFENON-LIFEBOTH
7. WHICH COS 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. TATA AIG LIFE
g. ANY OTHER________( Specify)
8. FOR HOW MANY YEARS DO YOU HAVE INSURANCE
POLICY? (Please Tick)
a.
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Thank you for investing your valuable time in giving us your
inputs.
___________________________________________________
____
Please give us the following details
Name :
Phone / Mobile Number :
Calculation Sheet
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Reliance life insurance co. ltd.
A Benefit Illustration of market return plan
Term= 20
Return= 30.0%
Year Age Premium
Top
Ups
WithdrawalsDeathBenefit
CHGS Mortality Year End growth
1 30 5,000 100,000 500 159 5,643
2 31 5,000 100,000 250 150 13,316
3 32 5,000 100,000 250 137 23,308
4 33 100,000 0 131 30,130
5 34 100,000 0 124 39,008
6 35 100,000 0 112 50,564
7 36 100,000 0 96 65,609
8 37 100,000 0 71 85,200
9 38 100,000 0 32 110,718
10 39 100,000 0 0 143,933
11 40 100,000 0 0 187,113
12 41 100,000 0 0 243,247
13 42 100,000 0 0 316,221
14 43 100,000 0 0 411,087
15 44 100,000 0 0 534,413
16 45 100,000 0 0 694,738
17 46 100,000 0 0 903,159
18 47 100,000 0 0 1,174,106
19 48 100,000 0 0 1,526,338
20 49 100,000 0 0 1,984,240