PURCHASE BEHAVIOR OF POTENTIAL CUSTOMERS FOR KOTAK MAHINDRA LIFE INSURANCE
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Transcript of PURCHASE BEHAVIOR OF POTENTIAL CUSTOMERS FOR KOTAK MAHINDRA LIFE INSURANCE
1
SCOPE OF STUDIESNeed for measuring customer satisfaction.
Customers are too good to lose---------- Lets keep them happy!Customer is the king.
In the era of cutthroat competition and economic recession, above axiom has more importance than ever before.
“Marketing starts with the customer and ends the customer.” ------Peter Drucker.So no organization, small or big ignores the customers.
“Earth is not the center of universe but revolves around the Sun.” -----------Copernicus.Similarly, we have come to believe that business firm is not the center of economic universe but revolves around the customer.
“Build customer and not only products.”
Building customers is not a single step exercise but a process.
2
Executive Summary
The objective of the project was to do Market Research on consumer behaviour for Kotak Mahindra Life
Insurance for that we have to understand the customer needs, income, constraints and emotion. The
objective of this study was to analyze consumer satisfaction of in Kolkata city with respect to the
performance, sales effort and sales service.
As the company is new and it is yet to be marketed to a large number of customers, it was essential to
know the feedback of customers in order to, formulate effective marketing and sales strategies in future
and improve the quality of service to achieve better consumer satisfaction.
The site visits and campaigns made us possible to measure the satisfaction of consumer by identifying
the attributes, which gave consumer-varying degrees of satisfaction.
Questionnaire based on attributes like requirement of customer and sales services offered by company
were identified as critical(motivational) factors for measuring satisfaction level of consumers, while
other factors like accessibility of deposit centre, timely reminder and collection of premium. In absence
of such hygiene factors, definitely, results in an unhappy customer.
For this a questionnaire was prepared which gave a vague idea about the people who were really
interested and wanted to know about various new opportunities in the insurance sector. The study was
undertaken for Kolkata region. I initially collected data and scanned them. The questionnaire contains
various aspects like their address, their present age, profession, number of dependents, goals and also
planning for old age (Retirement) etc.
The second part of the study consists of scanning the questionnaire and taking appointments. After that
usually meeting the persons and tell them about the company. Lastly, most important part was
analyzing the information.
3
OBJECTIVE OF THE STUDY
1) To determine the present purchase behaviour of target customers.
The main objective of the project was to analyze consumer behaviour of insurance buyers in Kolkata.
And also present position of the company.
2) To determine the market share of different brands. The second objective of the project was to
determine the market share of different brands available in the market. There was a tough competition
for the brand in the market. Therefore to get establish, company had to make its competitors analysis
and need to determine where do they stand.
3) Identify pros and cons of the brand. This was a fundamental objective of the whole research.
Company wants to identify that where the brand does lack. In other words, what are the brands so that
it can rectify them in order to establish the brand in the market.
4) Suggestions and recommendations. The objective of the research was not only to find out the
problem but also the identification of solutions or suggestions of the problems.
4
INTRODUCTION OF THE TOPIC
The purpose of this training was to have practical experience of working within the organization, in the
field of marketing and to have exposure to the important management practices in marketing insurance
products.
While writing this report the language has been kept simple and the entire discussion is logical and has
coherent outlines. The aim of the project work was Market Research on customer behaviour of Kotak
Mahindra Life Insurance, Kolkata. It includes thorough market research on various plans of Kotak
Mahindra Life Insurance, and consumer (behaviour) responses analysis, by surveying a sample of target
consumers.
The project report is divided into two parts, first part consists of market research for finding out best
sold plans of Kotak Mahindra Life Insurance, and second consist survey report of various consumers
about their responses about satisfaction towards Kotak Mahindra Life Insurance Company.
5
IMPORTANCE OF THE TOPIC
The project report is all about market research to find out best sold plan of Kotak Mahindra Life
Insurance, Kolkata; and to identify key behaviours of consumers while buying insurance policies.
This market research will help Kotak Mahindra Life Insurance to identify the most preferred plans of it
by its consumers. Secondly, it will help in drawing a marketing strategy to promote its products more
effectively by targeting customers according to their buying behaviour.
6
INTRODUCTION
Wherever there is uncertainty there is risk. The risk cannot be averted. The risk is uncertainty of a
financial loss. We don’t have any command on uncertainties. This makes it essential for us to look for a
device that becomes instrumental in spreading the loss. It is in this context that we think of insurance;
protection against the possible chances of generating uncertain losses. It eliminates worries and
miseries of losses on destruction of property and death.
Life insurance is a contract between you and a life insurance company. Buying insurance is extremely
essential if one is the principal earning member in the family. In case of an unfortunate premature
demise, his/her family can remain financially secure because of the insurance cover that you have
purchased.
The primary purpose of life insurance is, therefore, protection of financial health of the family in an
event of death of the insured. Insurance is also seen as a tool of savings to plan financial goals effectively
for your future years; for example your retirement needs, children’s future needs, etc. Today, the
market offers insurance plans that not just provide protection, but also at the same time grow your
wealth too. If you have dependants and have financial responsibilities toward them, then you certainly
need an insurance coverage.
Having a family means dependant, which in turn means financial commitments. It comes inform of
loans, children’s education, medical expenses etc. Imagine what would happen if you were to lose your
life suddenly or become disabled and unable to earn for your family. If you are insured, in such a
situation an insurance cover can help you meet basic needs of the family.
By insuring yourself, you are insuring your earning capacity so that your dependents can continue living
without financial hardships even in case of your sudden demise.
Most insurance plans available today, come with a savings element built within it. These policies are not
only for covering financial risk on death but also for a financially independent future; such as having a
comfortable retirement life. For example. Kotak preferred Retirement plans such as income plan and
Kotak Multiplier plan.Kotak preferred Retirement plans meet your dual financial goals of life cover and
savings for the future.
Life isn’t designed to be risk free. The key is not to eliminate risk, but toestimate it accurately and
manage it wisely.
7
Insurance sector have characteristics that can boost the growth of any economy. It is due to the savings
done at the individual level or at microlevel.It generates funds for infrastructure building as cash flow is
constant while the payout is differed. Hence, insurance companies are becoming biggest investors in
long gestation infrastructure development projects and, thus, play an important role in developing
economy. With an annual growth rate of 15-20% and the largest number of life insurance policies in
force in the world, the potential of the Indian Insurance industry is huge.
8
INDUSTRY PROFILEA. The oldest form of insurance (12th century) is marine insurance. Afterwards in 16th century fire
insurance is started in Germany.
B. The first registered life office was Hand in Hand Society established in 1696.
C. In India, the first life insurance company was started in the Bengal Presidency in1818 knows as
Oriental life insurance company.
D. Experiencing so many ups and downs the insurance business was found in changed shapes.
Particularly after attaining independence and to be more specific, after nationalizing in 1956.
E. There was major change in the insurance sector after globalization in2001. Private players enter
in the insurance industry and end the dominance of LICI.
F. Different MNC companies enter into Indian insurance industry by collaborating with Indian
companies. Today total 11 private life insurance companies are working in insurance industry in
India.
HISTORY
1912: The Indian Life Assurance Companies Act enacted as the first stature to regulate the life insurance
business.
1928: The Indian Insurance Companies Act enacted to the government to collect statistical information
about both life and non life insurance businesses.
1938: Earlier legislation consolidated and amended to the insurance Act with the objective of protecting
the interests of the insuring public.
9
1956: 245 Indian and Foreign insurers and provident societies were taken over by the central
government and was nationalized. Thus, LICI formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 core from the Government of India.
INSURANCE SECTOR REFORMS
1) Structure
Government stake in the insurance companies are brought down to 50%.
2) Competition
Private companies with a minimum paid up capital of Rs. 1bn should be allowed to enter the industry.
No company should deal in both Life and General Insurance through a single entity. Foreign companies
may be allowed to enter the industry in collaboration with the domestic players. Postal Life Insurance
should be allowed to operate in the rural market. Only single State Life Insurance Company should be
allowed to operate in each state.
3) Regulatory Body
- Insurance Regulatory and Development Authority (IRDA) is the governing body in India for insurance
industry.
- Any insurance plan designed by an insurance company need to get accepted by the IRDA before it get
launched in the market.
4) Investments
- Mandatory Investment of LIC Life Fund in government securities to be reduced from 75% to 50%.
- FDI has been raised to 49% from 26% in Indian insurance companies.
10
5) Customer service
Insurance companies are supposed to pay interest on delays in payments beyond 30 days. Insurance
companies must be encouraged to set up unit linked pension plans. Computerization of operations and
updating of technology to be carried out in the insurance industry. The committee emphasized that in
order to improve the customer services and increase the coverage of the insurance; industry should be
opened up to competition.
6) Road Ahead
The future of India's insurance sector looks bright. The country has a favourable demographic, growing
awareness, investment friendly government which is constantly working towards framing policies that
can attract investment, customer-centric products, and practices that give businesses the best possible
environment to grow. India's insurable population is anticipated to touch 75 crore in 2020, with life
expectancy reaching 74 years. Furthermore, life insurance is projected to comprise 35 per cent of total
savings by the end of this decade, as against 26 per cent in 2009-10.
ENTRANCE OF PRIVATE PLAYERS IN INSURANCE SECTORS
As per IRDA annual report for 2012-13, India still has a low life insurance penetration of just 3.96
percent of GDP. Despite the fact that India boosts a saving rate of around 25 percent, less than 5
percent is spent on insurance. The insurance landscape in India is undergoing major changes. Closed to
foreign competition since nationalization in 1956, the life insurance industry had been protected from
competitive pressures. Now, with reopening of the sector, several new players have entered the scene.
Insurance Regulatory and Development Authority of India oversees the insurance business in India. It
protects the interests of the policyholders and ensures orderly growth of the insurance industry and for
11
matters connected there to. Beside Kotak Mahindra Life Insurance, there are other 11 private players
working in life insurance sector, which are as follows:
Bajaj Allianz Life Insurance Company Ltd.
Bajaj Allianz Life Insurance Company Ltd. is a joint venture between Allianz AG (Largest insurer in
Europe) and Bajaj Auto Ltd. with 26:74 ratios. It was incorporated on12th march 2001.
Reliance Life Insurance Company Ltd.
Reliance Life Insurance Company (RLIC) is one of the largest life insurance companies in India with a
market share of 5%. The company has over 7 million policy holders and a distribution network of close
to 1,230 branches with over 124,000 agents as of 31 March 2013.Nippon Life Insurance Company
acquired 26% interest in equity share capital of the company effective October 7, 2011.
Aviva Life Insurance Company Ltd.
Aviva Life Insurance Company Ltd. is a joint venture between Dabur Indiaand CGU, is a wholly subsidiary
of Aviva Plc (UK).
SBI Life Insurance Company Ltd.
India’s largest bank, State Bank of India, and Cardiff S.A, a leading insurer in France, came together to
from SBI Life.
Tata AIG Life Insurance Company Ltd.
Tata AIG Life Insurance Company Ltd. is capitalized at Rs. 185 crore; of which74% has been brought in by
TATA Sons and the American partner brought the balance 26%.
ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential equity based stands at Rs. 675 Cr. With ICICI group and Prudential Plc holding 74% and
26% stake respectively.
Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance Company is a 74:26 joint venture company between Aditya Birla Group and Sun
Life Financial Services of Canada.
12
HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Company Ltd. was one of the first companies to be granted license by the
IRDA to operate in life insurance sector. It was incorporated on 14th august 2000. HDFC is the majority
stakeholder in insurance JV with 81.4% stake and Standard life (largest mutual assurance company in
Europe) has a stake of 18.6%.
Exide Life Insurance Company Ltd
Exide Life Insurance Company Limited is a life insurance company headquartered in Bangalore, and was
founded in 2001 as ING Vysya Life Insurance Company Limited with a joint venture between ING Vysya
Bank and Exide Industries Ltd. As of January 2013, ING Group planned to divest itself from its Indian
insurance and investment management businesses through the sale of its 26% interest in ING Vysya Life
Insurance Company Ltd. to its joint venture partner Exide Industries Ltd thus forming Exide Life
Insurance. The company serves over 1,000,000 customers across India.ING Vysya Life Insurance
Company Ltd. is expected to be first bank assurance venture in the country. Together they have roped in
GMR group, which has wide-ranging interests in field such as power generation infrastructure,
manufacturing, software and banking. As per JV agreement Vysya bank would hold 49% stake, ING
(Europe, Dutch origin) 26% and GMR group would hold 25% of the stake.
MAX New York Life Insurance Company Ltd.
It’s a partnership between MAX India ltd and New York life, a Fortune 100company.
PNB Metlife India Insurance Company Ltd.
PNB MetLife India Insurance Company Limited (PNB MetLife) is a joint venture between MetLife
International Holdings Inc. (MIHI), Punjab National Bank Limited (PNB), Jammu & Kashmir Bank Limited
(JKB), M. Pallonji and Company Private Limited and other private investors, with MIHI and PNB being the
majority shareholders. PNB MetLife was previously known as MetLife India Insurance Company Limited
(MetLife India) and has been present in India since 2001.
13
COMPANY PROFILE
14
COMPANY PROFILE
About Kotak Mahindra Old Mutual Life Insurance Ltd
Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture company between Kotak
Mahindra Life Insurance Ltd. and Old Mutual plc. The company started operations in 2001, and strives to
offer its customers outstanding value through high customer empathy, consistent and benchmarked
service and a suite of products that leverage the combined prowess of protection and long term savings.
The company covers over 4 million lives and is one of the fastest growing insurance companies in India.
About Kotak Mahindra Group
Established in 1985, the Kotak Mahindra group is one of India's leading financial services conglomerates.
In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received a
banking license from the Reserve Bank of India (RBI). With this, KMFL became the first non-banking
finance company in India to become a bank – Kotak Mahindra Bank Limited.
The consolidated balance sheet of Kotak Mahindra group is over Rs. 1.17 lakh crore and the
consolidated net worth of the Group stands at Rs. 17,228 crore (approx. US$ 2.9 billion) as on June 30,
2013. The Group offers a wide range of financial services that encompass every sphere of life. From
commercial banking, to stock broking, mutual funds, life insurance and investment banking, the Group
caters to the diverse financial needs of individuals and the corporate sector. The Group has a wide
distribution network through branches and franchisees across India, and international offices in London,
New York, Dubai, Abu Dhabi, Mauritius and Singapore.
Old Mutual
Old Mutual provides life assurance, asset management, banking and general insurance to more than 14
million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old
Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.
15
In the year ended 31 December 2012, the Group reported adjusted operating profit before tax of £1.6
billion (on an IFRS basis) and had £262 billion of funds under management from core operations.
MILE STONES
1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting
1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market
1990 The Auto Finance division is started
1991 The Investment Banking Division is started. Takes over FICOM, one of India’s largest financial retail marketing networks
1992 Enters the Funds Syndication sector
1995 Brokerage and Distribution businesses incorporated into a separate company Kotak‐ Securities. Investment Banking division incorporated into a separate company ‐ Kotak Mahindra Capital Company
1996 The Auto Finance Business is hived off into a separate company – Kotak Mahindra Primus Limited. Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group’s entry into information distribution.
1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company.
2000 Kotak Securities launches kotakstreet.com its on line broking site. Formal‐ ‐ commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund.
2001 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.
2003 Kotak Mahindra Finance Ltd. converts to bank
16
Vision and Mission Statement
An uncommon bond Strengthened by a common vision. Apart from common beliefs, values and
objectives we believe in the vision of a better tomorrow. It is this deep veneer of faith that has
brought us together and fortified our bond.
The global Indian financial services brand. Our customers will enjoy the benefits of dealing with
a global Indian brand that best understands their needs and delivers customized pragmatic
solutions across multiple platforms. We will be a world-class Indian financial services group. Our
technology and best practices will be benchmarked along international lines while our
understanding of customers will be uniquely Indian. We will be more than a repository of our
customers' savings. We, the group, will be a single window to every financial service in a
customer's universe.
The most preferred employer in financial services. A culture of empowerment coupled with a
spirit of enterprise, attracts bright minds with an entrepreneurial streak to join us and stay with
us. Working with a home-grown, professionally-managed company, which has partnerships with
international leaders, gives our people a perspective that is universal as well as unique.
The most trusted financial services company. We will create an ethos of trust across all our
constituents. Adhering to high standards of compliance and corporate governance will be an
integral part of building trust.
Value creation. Value creation rather than size alone will be our business driver.
17
Why Kotak Life Insurance
Kotak Mahindra Old Mutual Life Insurance is one of the fastest growing insurance companies in India,
trusted by over 4 million policyholders nationwide. The company is differentiated because of its proven
ability to deliver outstanding value to its customers through high customer empathy and understanding,
lifetime of exceptional service and suite of products that best leverage the combined prowess of
Protection and Long term Savings - the two key elements that determine any winning life insurance
product. The company also has among the best claim ratios in the industry, a solemn testimony to its
business practices.
Strengths
Financial Acumen - Holds a stable and diversified portfolio and has received some of the highest
ratings in financial strength from industry’s independent rating agencies.
Disciplined fund management - Years of experience in asset management, and a strong track
record in managing funds - backed by the acclaimed expertise of Old Mutual plc.
Innovativeness - Innovator in providing pragmatic and need based life insurance solutions, with
consistent emphasis on leveraging the combined prowess of protection and long term savings to
the customer’s best advantage.
Unrelenting Customer Focus - A highly committed sales force, with customer satisfaction as the
key driving force
Transparency in Services - Daily declaration of fund performances, regular performance
benchmarking, well regulated asset management, and monthly newsletter on market updates
18
PRODUCT
There are 19 plans available with Kotak Life Insurance to offer to its customers. Below I have discussed some most selling plans.
a) Kotak Assured Income Accelerator
Key Features:
Guaranteed Income payable every year during the Payout Period Income Boosters increases the Guaranteed Income between 5% to 7% every year Higher the annual premium, higher will be the Guaranteed Income Death benefit is payable irrespective of Guaranteed Income already paid Tax benefit on premiums paid u/s 80(C) and benefit received u/s 10(10D) of Income Tax Act
b) Kotak Premier Moneyback Plan
Kotak Premier Moneyback Plan provides enhanced cover against any unfortunate events of life, along with providing liquidity at regular intervals to take care of interim financial requirements
Key Features:
Regular payouts at specific intervals throughout the term Lump sum Maturity Addition Enhanced death cover with additional payout on accidental death Earn bonuses from 1st year onwards Additional Protection through optional riders
c) KotakClassic Endowment Plan
An Endowment policy is a combination of savings along with risk cover. These policies designed to accumulate wealth and at the same time cover your life. In simple words, issued for specific time periods during which you pay a regular premium. If you die during policy period, your beneficiaries will receive the sum assured along with the accumulated bonus.
Key Features:
In this plan minimum age of 18 years of old and maximum age is 65 years.
19
You can take a loan against your policy has been in force for at least three years. You have the option of paying premiums quarterly, half yearly or yearly. You have the benefit of a 15-day free look period.
d) Kotak Assured Savings Plan
Kotak Assured Savings Plan is a traditional savings cum protection oriented plan offering guaranteed
benefits
Key Features:
Guaranteed Maturity Benefit – Basic Sum Assured PLUS Accrued Guaranteed Yearly Additions PLUS Guaranteed Loyalty Addition
Increasing life cover – Guaranteed Yearly Additions added every time premium is paid, payable at maturity or earlier death
Longer the premium commitment, higher the benefits – Guaranteed Yearly Additions and Guaranteed Loyalty Addition increases with increase in premium payment term
More value for money through high premium benefit resulting into higher Basic Sum Assured
20
RESEARCH METHODOLOGY
INTRODUCTIONResearch is an art of scientific investigation through search for new facts in any branch of knowledge. It
is a moment from known to unknown. Research always starts with a question or a problem. Its purpose
is to find answers to questions through the application of the scientific method. It is a systematic and
intensive study directed towards a more complete knowledge of the subject studied. As marketing does
not address itself to basic or fundamental question, it does not qualify as basic research. On the
contrary, it tackles problems, which seem to have immediate commercial potential. In view of the major
consideration, marketing research should be regarded as applied research.
We may also say that marketing research is of both types problem solving and problem oriented.
Marketing research is as systematic and objectives study of the problems pertaining to the marketing of
the goods and services. It may be emphasized that it is not restricted to any particular area of marketing,
but is applied to all the phases and aspects.
METHOD OF DATA COLLECTION
1) Data to be collected.Data includes facts and figures, which are required to be collected to achieve the objectives of the project. In order to determine the present position of Kotak Life Insurance and consumer behaviour insurance buyers, I collected data by the following tools:-
a) Primary DataThe data that is being collected for the first time or to particularly fulfil the objectives of the project is known as primary data.These types of data were,- The market share of Kotak Mahindra Life Insurance.- The market share of other brands available in the market.- Responses of consumer.- Identifying pros and cons of the brand.
21
The above primary data were collected through responses of consumer was conducted through questionnaires prepared for them.
b) Secondary DataSecondary data are that type of data, which are already assembled and need not to collected from outside. These types of data werei) Company Profileii) Product Profileiii) Competitors ProfileThe aforesaid data were collected through Internet and company’s financial report.
2) Data Collection MethodFor given project, the primary data, which needed to collect for the first time, were much significant. This type of information gathered through Survey technique, which is the most popular and effective technique for correct data collection. The survey was completed with the use of questionnaires.- Questionnaire for consumer.
3) SamplingSample is the small group taken under consideration from the total group. This small group represents the total group. In this project the market to be studied was Kolkata, but as it was not possible to approach all the target customers of the city, hence a sample was selected which represents the whole city. The areas selected for the sample are present further in the appendix.4) Data EvaluationThe data so collected were not simply accepted because it contained unnecessary information and over or under emphasized facts. Therefore only relevant data were included in the report, which helped in achieving the objectives of the project.
22
DATA INTERPRETATIONAND ANALYSIS
23
1. Personal detail
1 (a)
Age Class
% of responden
ts
i. 18-246.67
ii. 25-3426.7
iii. 35-4423.3
iv. 45-5433.3
v. 55 and above10
24
18-24 25-34 35-44 45-54 55 and above0
5
10
15
20
25
30
35
Age Group
Age class
% o
f res
pond
ents
1 (c)
Occupation
% of respondents
i. Private Ltd43.3
ii. Govt service/Public Ltd30
iii. Self Employed Professional/ Business23.3
iv. Student3.33
25
Priv
ate Ltd
Govt
servic
e/Public
Ltd
Self E
mployed Profes
sional/
Business
Studen
t0
10
20
30
40
50
Occupation
%.o
f Res
pond
eent
s
1 (d)
Marital Status
% of respondents
i. Single10
ii. Married80
iii. Divorced3.33
iv. Widow / widower6.67
26
Single Married Divorced Widow / widower0
10
20
30
40
50
60
70
80
90
Marital Status
1 (e)
Financial Liabilities
No.of Response
i. Child Education and Marriage30
ii. Loans30
iii. After retirement life63.3
iv. Medical Expenses36.7
v. None13.3
27
Child Ed
ucation an
d Marr
iage
Loans
After
retirem
ent li
fe
Med
ical Ex
penses
None
010203040506070
Financial Liabilities
No.
of R
espo
nden
ts
28
2. Do you think is it essential to have Life Insurance?
Yes No Do not know0
10
20
30
40
50
60
70
80
90
% o
f res
pond
ents
% of responde
nts
i. Yes80
ii. No10
iii. Do not know10
29
3. Do you own any life insurance policy?
Yes No0
10
20
30
40
50
60
70
80
90
100
Chart Title
% o
f res
pond
ents
% of responden
ts
i. Yes96.7
ii. No3.33
30
4. Which are the companies you have invested your money with for Life Insurance?
Life Insurance Companies in India% of respondents invested
i. Kotak Mahindra Life Insurance13.3
ii. LIC80
iii. Bajaj Allianz16.7
iv. Tata AIG16.7
v. HDFC Life Insurance16.7
vi. ICICI Prudential Life Insurance26.7
vii. SBI Life16.7
viii. PNB Metlife10
ix. Reliance Life Insurance6.67
x. Others20
0102030405060708090 Popularity of Insurance companies
% o
f res
pond
ents
inve
sted
31
5. Why did you choose the above Life Insurance Company?
Selection Criteria% of respondents
i. Good Past record on ROI10
ii. Agent Pressure10
iii. Tax Benefit36.7
iv. Security /safety20
v. Low Premium10
vi. Protection13.3
Good Past record on ROI
Agent Pressure
Tax Benefit Security /
safety
Low Premium
Protection0
5
10
15
20
25
30
35
40
Selection Criteria
% o
f res
pond
ents
32
6. Which of the following insurance plans have you purchased?
i. Term Insurance Plans10
ii. Endowment Insurance Plans
46.7
iii. Money Back Plans20
iv. Child Plans
23.3
v. Retirement Plans
16.7
vi. Don’t know10
Term In-surance
Plans
Endowment Insurance
Plans
Money Back Plans
Child Plans Retirement Plans
Don’t know0
5
10
15
20
25
30
35
40
45
50
Insurance Plans
No.
of R
espo
nse
33
7. Rank the following in terms of their importance to you while making a decision to purchase an insurance policy from a particular service provider. (1 being most important and 5 least)
i. Easy accessibility to Service Outlets287
ii. Timely reminder as well as premium collection by agents283
iii. Easy and Quick Claim Settlement297
iv. Online services280
v. Good financial advises343
0
100
200
300
400
Factors influencing Purchasing Decision
No.
of R
espo
nden
ts
34
8. How will you rate the services given by your Life Insurance service provider?
Poor Average Good Excellent0
5
10
15
20
25
30
35
40
45
Ratings
% o
f Res
pond
ents
i. Poor20
ii. Average40
iii. Good33.3
iv. Excellent6.67
35
9. Would you like to invest with any other Life Insurer?
Yes No May be0
10
20
30
40
50
60
% o
f Res
pond
ents
i. Yes56.7
ii. No30
iii. May be13.3
36
OBSERVATIONS
Majority of the customer‘s belonged to age group of 45-54 years that is 10 consumers.
24 consumers think Life Insurance is essential for them.
51 respondents are investing in life insurance companies like Kotak Life Insurance, LIC, Bajaj
Allianz, HDFC, ICICI and SBI.
10 percentages of the total respondents invest in Insurance for getting high ROI.
Most of respondent s preferred Endowment Insurance Plan.
Most of the respondents expects good financial advices from Insurance Companies
As per 36.7% of respondents invested in Insurance for tax benefits.
56.7% of respondents are willing to purchased Insurance policies in future.
37
RECOMMENDATIONS
There is scope to sale insurance policy by concentrating on age group 45-54 years .
As major respondents think to have life insurance policy is very essential there is lot of scope for
insurance company.
Kotak Mahindra Life Insurance should try to build trust among the public by making people
aware of their investment is safe, high return on investment, Tax Benefits.
As more respondents are investing in Kotak Mahindra Life Insurance for getting high return on
investment the company should try to provide attractive returns on investments in future.
Kotak Mahindra Life Insurance should introduce attractive policies & also attractive bonus on
policies to attract more customers.
56.7% of respondents are willing to invest with new insurance providers
38
CONCLUSION
After conducting market research for Kotak Mahindra Life Insurance Company we came to know
different needs of consumers, their valuable suggestions, responses to the different questions. With this
information we can conclude that there is good potential for Kotak Mahindra Life Insurance Company in
Kolkata.
People prefer to invest in insurance mainly to avail tax exemption and high ROI. So, Kotak Mahindra Life
Insurance should try to build trust among the public by making people aware of their investment is safe,
high return on investment, Tax Benefits.
Kotak Mahindra Life Insurance should also educate their Life Advisors well about the financial market so
that they can give good advises to customers, which people in Kolkata are expecting from insurance
companies.
Kotak Mahindra Life Insurance should bring in new and attractive endowment plans, which is the most
selling product in Kolkata.
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BIBLIOGRAPHY
www.business.standards--- Mumbai Jan2,2014
Media Reports,Press Releases IRDA Journal
http://www.ibef.org/industry/insurance-sector-india.aspx
insurance.kotak.com/
40
ANNEXURE