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EXECUTIVE SUMMARY
New business premium income of life insurance companies fell for the sixth straight month as strict month as strict regulation on sale of the once popular Unit Linked Insurance Policy took sheen off investing in insurance products. Insurer collected new business premium of Rs 3009 crore in Feburary2011, down 39% from Rs 4896 crore a year earlier, according to the latest data collated by the industry. The drop in collection is due to shift towards conventional insurance policies which have regulator designed investment norms. Private players reported a drop of 33% during the month to Rs 1713 crore against Rs 2543 crore in February 2010. Private insurer such as ICICI Prudential and SBI Life Reported a fail of 55% and 4% respectively. Reliance Life Insurance business premium decline by 35.6% to Rs 593.7 crore This is the really bad news for the insurance companies, this suddenly change in consumer behaviour towards life insurance is really bad news for the companies. Particular Reliance Life Insurance, the same thing happened, the sales managers are getting difficulty to make new customers and to retain the old customers for the life insurance policy. I was asked to do market research for this behaviour change. To know briefly about the life insurance, I felt to qualify the IRDA exam, which I did, and then with the help of the sales manager, I reached the questionnaire part of the research, I found that the problem is with the two thing, to know the attitude of the people, there are the two kind respondent I need, first who has Life Insurance Policy and who has not Life Insurance Policy. So, the whole questionnaire is divided into two parts, section A and section B, section A is for the respondent who has life insurance policy and section B is for the respondent who has not life insurance policy. Sample size is 100 people and all the respondent are segmented into different category, considering their age, income etc, which effect the business of life insurance. In the analysis of the research, I found that the customer, who has life insurance policy, needs more Tax Benefits from the Life Insurance Policy rather than other benefits of life insurance like, maturity amount and death claim etc and the consumer who has not life insurance policy has not so much idea about the benefits of the life insurance policy.

OBJECTIVES OF STUDY
1) To get some good market exposure by dealing with the prospects face to face. 2) To improve our ability to sell a financial product like life insurance. 3) To know the perception of the consumer about life insurance. 4) To get a deep knowledge of the financial product like insurance. 5) To get some information about the market share of Reliance Life Insurance as compared to the giants like LIC and to know the standing of the company in the market.

QUESTIONNAIRE
It is most common instrument whether administered in person by phone or online questionnaires are very flexible. The form of each question is also important. Closed end question include all the possible answers and subjects matters choices among them. I have used open-end questions so that customers can write answer in their own words. I have also used closed-end questions, which provide answers that are easier to interpret and tabulate. I have taken care in the wording and ordering of questions. I have used simple, direct, unbiased wording questions, which are arranged in a logical order. I have asked personal questions at last so that respondent does not become defensive.

SAMPLING METHOD AND SAMPLE SIZE

Introduction:Any organization whether big or small, private or public need different types of information are to know its popularity. I have gathered secondary data and primary data and collected information from the combination of these two data.

Secondary data: Secondary data consist of information that already exists somewhere, having been collected for another purpose. I have gathered secondary data from website of different operators, different magazines, newspapers and libraries.

Primary data: I have taken great care while collecting primary data to answer that it is relevant, accurate, current and unbiased. I have taken a sample of 100 people. I have visited them personally to get data.

Sample size:

I have taken sample size of 100 respondents. Because the population is too large so it is difficult to survey. But I tried to get the different category customer for the research

Questionnaire
NameAgeRelationship statusOccupationFamily membersQ1- What is your monthly income? (In thousands) (a) 0-15000 (b) 15000-30000 (c) 30000-45000 (d) more than 45000

Q2-Do you have Idea about Life Insurance? (a) Yes (b) No

Q3-Do you have Life Insurance policy or any family member of yours has life insurance policy? (a) Yes (b) No

Q4-What is your level of concern about Inflation? (a) Very High (b) High (c) Medium (d) Low (If you have Life Insurance Policy, then please go to the section A, if you dont have Life Insurance Policy then go to section B)

Section A
Q5-What thing force you more for purchase Life Insurance Policy? (a) Tax Benefits (b) Death or Maturity claim amount (c) Less Risky (d) Advisor force me

Q6-Do you think purchasing life insurance policy is better than other market investment, like mutual funds and shares? (a) Yes (b) No

Q7-What do you like most about Life Insurance from the following? (a) Maturity/Death claim amount (b) Less risk full than other investments (c) It reduces the uncertainty of risk in life (d) Premium of the life insurance policy

Q8-Rank the following benefits of Life Insurance. (a) (b) (c) (d) Tax Benefits Guarantee Return Reduce the uncertainty of risk Usage of Policy as mortgage

Q9-What is the level of concern about Brand Name of the Life Insurance Policy? (a) (b) (c) (d) Most Important Important Medium Low

Q10- Tick out the following point according to your priorities for it. Most Important Important (a) Strongest Possible guarantee (b) Lowest Possible Premium (c) Potential returns in the long term

Medium

If you dont have Life Insurance Policy, then Please go for the section B. Section- B Q11- Rank the following points according to your priority for money investment. (a) Stock and Shares (b) Property (c) Gold (d) Mutual funds

Q12-Do you need life insurance policy? a) Yes b) No c) Cant say

Q13- What are you looking for in life insurance policy? (a) More Tax Benefits (b) More Guarantee Return (c) Reduce the uncertainty of risk (d) More Usage of Policy as mortgage Q 14- Do you feel insurance policy is the mode of saving? a) Saving b) Investment c) Saving and Investment, Both

Analysis:I have used pie charts, and some other statistical measures to analyze the questions. There is the questionnaire for the market research of the Life InsuranceFirst of all, it is very important to know the personal detail of the consumer and their segment like age, income, marital status etc. Before all the things, I made the questionnaire into three parts, In the first part of the questionnaire, I asked the personal detail of the consumer In the question number 1, I asked about the income of the candidate and there are the four options which has segmented into groups Q1- What is your monthly income? (In thousands) (a) 0-15000 45000 (b) 15000-30000 (c) 30000-45000 (d) more than

5% 8%

0-15000 15000-30000 30000-45000 55% 32% more than 45000

In the second question, I tried to know whether the consumer has some knowledge about the life insurance or not

Q2-Do you have Idea about Life Insurance? (a) Yes (b) No

13%

yes

no

87%

87 out of 100 respondent said yes, thats means they have idea about what is life insurance means, but it doesnt means that they has all knowledge about life insurance, they might dose not has idea about advantages and benefits of life insurance, but here number of YES is more rather than NO. Q3-Do you have Life Insurance policy or any family member of yours has life insurance policy? (a) Yes (b) No

39% yes 61% no

As expected, majority of the public dont have the life insurance policy, now point has, why they dont need the life insurance policy?

Q4-What is your level of concern about Inflation? (a) (b) (c) (d) Very High High Medium Low

3% 24% 42% Medium 31% Low Very High High

Inflation is the term which matter most in the common public, but most of the time we forget to consider it, in this question I got the result that public is very high concern about inflation. Next question has been asked to those consumers who has life insurance policy, (Section A) Q5-What thing force you more for purchase Life Insurance Policy? a) Tax Benefits force me (b) Death or Maturity claim amount (c) Less Risky (d) Advisor

7% 13% 41% Death or Maturity claim amount Less Risky Advisor force me 39% Tax Benefits

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Surprisingly, the I found that majority of the consumer takes life insurance policy for saving tax rather than other benefits of life insurance. Q6-Do you think purchasing life insurance policy is better than other market investment, like mutual funds and shares? (a) Yes (b) No

33% yes No 77%

If investment is concern, then consumer dont like to invest into the life insurance policy. Q7-What do you like most about Life Insurance from the following? (a) Maturity/Death claim amount (c) It reduces the uncertainty of risk in life (b) Less risk full than other investments (d) Premium of the life insurance policy

17% Maturity/Death claim amount 11% 53% Less risk full than other investments It reduces the uncertainty of risk in life 19% Premium of the life insurance policy

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In life insurance, we do not need to pay the whole amount suddenly Q8-Rank the following benefits of Life Insurance. (a) Tax Benefits (b) Guarantee Return (c) Reduce the uncertainty of risk (d) Usage of Policy as mortgage In this question I wanted to know the customer priority for the benefits of life insurance policy

How many times options got ranked 1 st

31% Tax Benefits 22% Gurantee Return Reduce the uncertainity of risk 34% Usage of Policy as mortage

1.2

In the question, I found that tax benefits has been given more priority rather than other benefits of the life insurance. Q9-What is the level of concern about Brand Name of the Life Insurance Policy? (a) (b) (c) (d) Most Important Important Medium Low
4% 79% Most Important Important Medium 1.4 9% Low

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Q10- Tick out the following point according to your priorities for it. Most Important Important (a) Strongest Possible guarantee (b) Lowest Possible Premium (c) Potential returns in the long term
80% 75% 67% 59%

Medium

70%

60%

50%

most important important 32%

40%

30% 21% 20%

27%

medium

10% 4% 0% Strongest Possible guarantee

9% 6%

Lowest Possible Premium

Potential returns in the long term

If you dont have Life Insurance Policy, then Please go for the section B. (Section- B) Q11- Rank the following points according to your priority for money investment. (a) (b) Stock and Shares Property

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(c) (d)

Gold Mutual funds

7% 16% Stock and Shares Property Gold Mutual Fund 11%

66%

Q12-Do you need life insurance policy? d) Yes e) No f) Cant say

70% 63% 60%

50%

40% 28%

Column 1 Column 2 Column 3 9%

30%

20%

10%

0% Yes No Can't

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Q13- What are you looking for in life insurance policy? (e) More Tax Benefits (f) More Guarantee Return (g) Reduce the uncertainty of risk (h) More Usage of Policy as mortgage
12%

More Tax Benefits 17% 47% Reduce the uncertainty of risk More Usage of Policy as mortgage More Guarantee Return

24%

Q 14- Do you feel insurance policy is the mode of saving? d) Saving e) Investment f) Saving and Investment, Both
3.5 3 2.5 2 1.5 1 0.5 0 Saving Investment Saving and Investment, Both

Series 1 Series 2 Series 3

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Conclusion
I found that the customer, who has life insurance policy, needs more Tax Benefits from the Life Insurance Policy rather than other benefits of life insurance like, maturity amount and death claim etc and the consumer who has not life insurance policy has not so much idea about the benefits of the life insurance policy. Here the advisor and the sales manger need to understand the consumer very well, and they should sell the benefits of the Life Insurance Policy. Because in the research, It is clear that the respondent only try to get benefits. For example, most of the people said to me personally that they would like to invest their money as fixed deposit, now the sales manager should tell him or her that the current inflation rate is 8.23% and the fixed deposit rate of interest is less than the inflation rate, then how they could get profit form Fixed Deposit.