Final Repor IDBI Federal - CRM - Aman

1
Customer Relationship
Management
IDBI Fortis Life Insurance Co. Ltd.

AMAN GUPTA (09 BS 0000 162)
5/13/2010

CUSTOMER RELATIONSHIP MANAGEMENT

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IDBI FORTIS LIFE INSURANCE CO. LTD.
A PROJECT REPORT
On
(CUSTOMER RELATI ONSHI P MANAGEMENT)
By
AMAN GUPTA (09 BS 0000 162)
In
(IDBI FORTIS LIFE INSURANCE CO. LTD.)
A project report Submitted in partial fulfillment of the requirement of MBA
Program of the I CFAI University, Dehradun
DISTRIBUTION LIST:
Faculty Guide: Company Guide
Prof. Monica Dighe Mrs. C. Shanthi
PGDBM (XLRI-J), MA (DSE, Delhi) Manager Distribution
IBS BANGALORE IDBI Fortis Life Insurance Co. Ltd.

Date of Submission: 13/05/2010

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AUTHORISATION

This report Customer Relationship Management An IDBI FORTIS Perspective done during
my Summer Internship Program (SIP) is submitted as a partial fulfillment of the requirement of
MBA program of ICFAI Business School (IBS), Bangalore.

13
th
May 2010
AMAN GUPTA


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ACKNOWLEDGEMENTS

I would like to express my sincere gratitude to my company guide Mrs. C. Shanthi Yagyanath,
Manager Distribution - Chief IDBI Fortis Life Insurance Company, Coimbatore for guiding me
throughout my summer internship and research project. Her encouragement, time and effort are
greatly appreciated.
I would then like to thank my faculty guide, Prof. Monica Dighe, for all her valuable inputs and
constant support towards me throughout my project and providing me an opportunity to learn
outside the class room. It was a truly wonderful learning experience.
I would like to thank all my friends who did their SIP from IDBI FORTIS for their valuable
suggestions and support.
Last but not the least I would like to thank all the respondents who offered their opinions and
suggestions and sometimes critical views throughout the survey which made me constantly
update myself come out with a successful project.


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TABLE OF CONTENTS

PAGE NUMBER
AUTHORIZATION 3
ACKNOWLEDGEMENTS 4
ABSTRACT 6
INTRODUCTION 10
LITERATURE STUDY
INSURANCE - OVERVIEW 11

CUSTOMER RELATION
MANAGEMENT
14
COMPANY PROFILE 17
PRODUCT RANGE 19
RESEARCH DESIGN
RESEARCH OBJECTIVE 21
RESEARCH PLAN 22
DATA ANALYSIS

SECONDARY DATA
ANALYSIS
27
WEALTHSURANCE 28
INCOMESURANCE 31
PRIMARY DATA ANALYSIS B2B 35
B2C 38

STATISTICAL
ANALYSIS
44
INTERPRETATION 56
FINDINGS 64
RECOMMENDATION 66
EXPERIENCE AND
LEARNING
68
CONCLUSION 70
ANNEXURE - I Questionnaire(B2B) 71
ANNEXURE - II Questionnaire(B2C) 74
REFERENCES 78

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ABSTRACT

The project aims at customer Relationship Management at IDBI Fortis Life Insurance Co. Ltd. It
includes a detailed study of the strategies adopted by different companies which provide
intangible products and services and implement that strategy in IDBI Fortis Life Insurance Co.
Ltd. The targeted sectors for this analysis are:
1. Banks
2. IT - ITES sector
3. Insurance Companies
4. Tours and Travels
5. Others service industries

It also includes the research survey done for the common people done to know the mind set of
the people and the features which they consider the most before going for any insurance policy in
order to maintain the long term relationship with them.
The project also includes the detailed study of Unit Linked Insurance Plans (ULIPs) in the Indian
context, a comparative analysis of ULIPs of some well known selected companies with that of
IDBI Fortis and in the process identifies the strengths and weaknesses of IDBI FORTIS. The
different selected companies apart from IDBI FORTIS on which the project is entirely focused
are namely:
1. ICICI PRUDENTIAL
2. LIFE INSURANCE CORPORATION OF INDIA
3. HDFC STANDARD LIFE
4. MetLife
5. SBI Life Insurance
The results of the project have been an outcome of a detailed analysis of collected secondary data
and well supported by analysis of primary data collected through a survey conducted in the
Bangalore city. The project required me to design two questionnaires and conduct a primary
survey. One is Business To Customer (B2C) for the general people to know their mind set and
other one is for the employees of the targeted companies in order to know about the strategies
followed by various companies in order to maintain customer relationship. The survey was
mainly conducted to study the consumer perception, opinion and awareness of various insurance
products. The number of respondents targeted was 250. The sample of respondents included was

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carefully selected targeting respondents from all age groups. Also the preferences of the
respondents towards these selected insurance companies have been noted and the reasons
analyzed. The data gathered from the primary survey was coded in a statistical tool called as
Statistical Package for Social Science (SPSS) for analysis and to find various factors that affect
an investor decisions while choosing an investment option in this vast market. Finally I
interpreted the results of the project by combining both the primary and the secondary data
analyses then identified the areas where the company is really strong and the areas where it needs
to have a second look. The Project helped me enhance my knowledge on various technicalities of
the Indian insurance industry and gave me a broader prospective of various investment
opportunities available in the market. Marketing concepts learnt in the classroom were
implemented in a real life environment.


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LIST OF ILLUSTRATIONS

PAGE NUMBER
FIGURE I - Market share of insurance companies 11
FIGURE II - The trend of Indian Insurance Industry ($Bn)
2000- 2011
12
TABLE I - Features of wealthsurance of IDBI Fortis 27
TABLE II - ULIPs of LIC INDIA 29
TABLE III - Comparitive analysis of ULIPs of LIC with
wealthsurance
30
TABLE IV - ULIPs of ICICI Prudential 30
TABLE V - Comparitive analysis of ULIPs of ICICI
Prudential with wealthsurance
31
TABLE VI - Comparative analysis of Incomesurance 33
TABLE VII - Comparative analysis of the strategies 34
GRAPH I - Main reason for choosing the company 35
GRAPH II - Preferred interval of communication 36
GRAPH III - Preferred medium of communication 36
GRAPH IV - Frequency of resolving customer complaint 37
GRAPH V - Methodology adopted 37
GRAPH VI- Efforts to establish loyal customers 38
GRAPH VII - Age Group of the respondents 39
GRAPH VIII - Occupation 39
GRAPH IX - Own an insurance policy 40
GRAPH X - Reason for taking insurance policy 40
GRAPH XI - Preferred investment instrument 41
GRAPH XII - Preferred company to invest 42
GRAPH XIII - Risk in ULIPs 43
TABLE VIII Long term investment is favourable 45
GRAPH XIV - Showing responses 45
TABLE IX - Investment in financial products 46
GRAPH XV - Showing responses 46

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TABLE X - Insurance coverage 47
GRAPH XVI - Showing responses 47
TABLE XI - High returns 48
GRAPH XVII - Showing responses 48
TABLE XII - Service differenciation 49
GRAPH XVIII - Showing responses 49
TABLE XIII - Flexible investment options 50
GRAPH XIX Showing responses 50
TABLE XIV - Risk involved 51
GRAPH XX - Showing responses 51
TABLE XV - Services 52
GRAPH XXI - Showing responses 52
TABLE XVI - Credibility 53
GRAPH XXII - Showing responses 53
TABLE XVII - Tax benefit 54
GRAPH XXIII - Showing responses 54
TABLE XVIII - Customization of products 55
GRAPH XXIV - Showing responses 55
FIGURE III - Importance - Performance analysis 56
GRAPH XXV - Comparison of the extracted factors 58
TABLE XIX - Association of customized service with
customer service
59
TABLE XX - Association of assuring high returns with
customer service
60
TABLE XXI - Association of flexibility with customer
Service
60
TABLE XXII - Association of assuring better tax benefit with
customer service
61
TABLE XXIII - Association of lower risk involved with
customer service
61


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INTRODUCTION
PURPOSE
The project is being done as a part of summer internship program of ICFAI BUSINESS
SCHOOL, Bangalore. The completion of the project is a partial fulfillment requirement for
being awarded the Masters in Business Administration (MBA) degree from the university.
SCOPE OF THE STUDY
This study aims to know the consumer mind set and perception towards various insurance
policies. The analysis is based on the empirical data collected from the Bangalore city. The study
also aims to discuss in detail the various strategies adopted by different companies providing
intangible services to know how they are maintain long term relationship with their customers
and implement that strategy in IDBI Fortis Life insurance co. Ltd.
OBJECTIVE OF THE PROJECT
To maintain Relationship of IDBI Fortis Life Insurance Co. Ltd. with the
customers.

To know about the strategy adopted by different companies which provide
intangible services and implementing that strategy in IDBI Fortis.

Features which the people consider the most while taking any insurance policy
and work on to strengthen that feature.

Segmenting the customers on the basis of their expectations.


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LITERATURE STUDY

INSURANCE
Insurance may be described as a social device to reduce or eliminate risk of loss to life and
property. Under the plan of insurance, a large number of people associate themselves by sharing
risks attached to individuals. The risks which can be insured against include fire, the perils of
sea, death and accidents and burglary. Any risk contingent upon these, may be insured against at
a premium commensurate with the risk involved. Thus collective bearing of risk is insurance.
CHARACTERISTICS OF INSURANCE
1. Sharing of risks
2. Cooperative device
3. Evaluation of risk
4. Payment on happening of a special event
5. The amount of payment depends on the nature of losses incurred.
HISTORY OF INDIAN INSURANCE
Insurance has a long history in India. Life Insurance in its current form was introduced in 1818
when Oriental Life Insurance Company began its operations in India. General Insurance was
however a comparatively late entrant in 1850 when Triton Insurance company set up its base in
Kolkata.
History of Insurance in India can be broadly bifurcated into three eras:
a. Pre Nationalization
b. Nationalization and
c. Post Nationalization

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Life Insurance was the first to be nationalized in 1956. Consolidating the operations of various
insurance companies formed Life Insurance Corporation of India. General Insurance followed
suit and was nationalized in 1973. General Insurance Corporation of India was set up as the
controlling body with New India, United India, National and Oriental as its subsidiaries. The
process of opening up the insurance sector was initiated against the background of Economic
Reform process, which commenced from 1991.
For this purpose Malhotra Committee was formed during this year who submitted their report in
1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly
Indian Insurance was opened for private companies and Private Insurance Company effectively
started operations from 2001.

FIGURE - - I Market share of Indian Life insurance companies.
INSURANCE MARKET - PRESENT
The insurance sector was opened up for private participation a decade back. For years now, the
private players are active in the liberalized environment. The insurance market has witnessed
dynamic changes, which include presence of a fairly large number of insurers both life, and non-
life segment. Most of the private insurance companies have formed joint venture partnering
well-recognized foreign players across the globe.
The Indian life insurance market generated total revenues of $41.36 billion in 2007, thus
representing a compound annual growth rate (CAGR) of 11.84% for the period spanning 2000-
2007. Life insurance market had a growth of $22.46 billion within a period of 7 years with a
growth rate of 118.24%. Estimated life premiums rose to INR 1,470,800 million ($36.77 billion)

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in 2006 from INR 1,301,540million ($32.54billion) in 2005. We envisage that life premiums in
2011 will be $65.96 billion, a growth larger than they were in 2007. The performance of the
market is forecast to accelerate, with an anticipated CAGR of 9.78% for the four-year period
2007-2011 expected to drive the market to a value of $65.96 billion by the end of 2011. There
would be a growth of $24.6 billion i.e. 59.48% in the next 4 years. Non-life premiums in India
were $6.53 billion in 2007. Gross written premium (GWP) in the Indian non-life insurance
market reached a value of $5.75 billion in 2006, this representing an annual growth of 13.55%
for the period spanning 2006-2007. Estimated non-life premiums rose from INR230 billion
($5.75 billion) in 2006 to INR261 billion ($6.53 billion) in 2007. We anticipate that non-life
premiums will grow by a CAGR of 9.40% between 2007-2011. We are looking for non-life
premiums to rise by $405 million over the five years to the end of 2011 with a growth rate of
62.02%.

FIGURE - - II The trend of Indian Insurance Industry ($Bn) 2000-2011
With a huge population base and large untapped market, insurance industry is a big opportunity
area in India for national as well as foreign investors. India is the fifth largest life insurance
market in the emerging insurance economies globally and is growing at 32-34% annually. This
impressive growth in the market has been driven by liberalization, with new players significantly
enhancing product awareness and promoting consumer education and information. The strong
growth potential of the country has also made international players to look at the Indian
insurance market. Moreover, saturation of insurance markets in many developed economies has
made the Indian market more attractive for international insurance players, according to
"Booming Insurance Market in India (2008-2011).


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Changes in customer expectations can be identified throughout the world. Customer relationship
management (CRM) strategies have become increasingly important worldwide due to these
changes in expectations from customers as well as changes in the nature of markets. Changes
have been noted across the world, but opportunities present themselves in South Africa and other
developing countries for CRM strategies. Customer Relationship Management (CRM) is a
managerial philosophy that seeks to build long term relationships with customers. CRM can be
defined as the development and maintenance of mutually beneficial long-term relationships
with strategically significant customers .Under certain circumstances it may result in the
termination of relationships. It can also be noted that the relationship is developed with
strategically significant customers, and hence it is necessary for the organization to determine the
nature of the significance. Traditionally this would be done by determining the value of the
customer to the organization, but other criteria that can be used include whether a customer
serves as a benchmark for other customers or whether the customer inspires change in the
supplier.
The implementation of CRM is regarded as desirable by organizations due to the benefits that
accrue from these strategies among their customers, such as greater loyalty and resulting profits.
The focus of a CRM strategy is the acquisition, retention and overall customer profitability of the
specific group of customers.
Acquisition of customers: This refers to the need of organization to find new customers for
their products. This means they are required to develop strategies to attract potential customers to
purchase the product. The cost of attracting a new customer is estimated to be five times the cost
of keeping a current customer happy.
Retention of customers: Organizations also need to focus on existing customers in order to
ensure that they continue purchasing and continue supporting the product. Organizations can
increase their profitability by between 20% and 125% if they boost their customer retention rate
by 5 percent.
Profitability: Customer profitability reflects the financial performance of customers with
respect to all the costs associated with a transaction. Profitability in the case of CRM is
determined in the light of the lifetime value of the customer to the organization, taking account
the income and expenses associated with each customer and their respective transactions over
time.
In attempting to understand the implementation of CRM programmes, it must be borne in mind
that economies differ in terms of their level of development. Two economic criteria can be used
in this economic analysis - population size and per capita income have been incorporated into

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the calculation of per capita GNP and per capital GDP. This analysis makes it possible to
categorize economies as being Developed, Developing and Less-Developed.
Developed economies are characterized by political stability, highly-educated and literate
populations, high levels of innovation and entrepreneurship as well as high levels of both
industrial and information technology.
Less-developed economies (such as Bulgaria, Bangladesh and Ethiopia) have political
instability (sometimes political anarchy), government inefficiency, low standards of living and
low levels of economic wealth.
An emerging market (or developing economy) is defined as markets that are in the process of
evolving to becoming developed (i.e. higher income).
Developing economies have the following characteristics:
Improving educational standards, literacy and work skills levels
Relatively efficient technology systems
Relative political stability and a movement towards market-based economies
Rapidly expanding financial services.
The characteristics of developing economies as listed above form part of the imperatives for the
implementation of CRM. CRM includes the use of technology in the building of databases and
the use thereof to develop and improve the relationship with the various markets, including the
final consumer. In order to exploit this technology, skills among staff are required. Organizations
within developing markets have customer information in databases, though many do not have the
advanced technology or skills to exploit the information that is stored. This indicates that CRM
can be used within developing markets, though organizations will still be required to manage its
implementation with care.
The answer to this question has to be no. The reason for this is that not all organizations have
customer information, which makes the implementation of CRM impossible. Examples of these
products include mass products. Further, businesses where there is a high customer churn (where
customers remove their patronage) or where there is a low Customer Lifetime Value (CLV)
which impacts on the profitability of the organization is not suitable to the implementation of
CRM. These are true, irrespective of the nature of the economic development within markets. It
can thus be said that CRM is appropriate for certain organizations in emerging markets.
Organizations that can implement CRM successfully are those that have a great deal of

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information concerning the customer and where there are differentiated needs among the
customers. Financial services meet the criteria for the implementation of CRM. Financial
institutions have a great deal of information concerning their customers and their needs differ.
This means that banks offer different products to different customers. Some customers require a
mortgage bond in addition to their current account and credit card, while for other customers,
vehicle financing is more important. The financial circumstances of customers differ, resulting in
different packages being offered to customers. It is also possible for financial institutions to tailor
their packages thereby making them customer specific.
Talking particularly about insurance sector like IDBI Fortis Life Insurance Co. Ltd., different
customers has different needs therefore it is necessary to differenciate and segmenting the
customers according to their needs and requirements. Like some customers are interested in
Wealth insurance while some are interested in income Insurance and some are in Retiresurance.
Therefore it is the duty of the marketers to understand the needs of the customers and segment
the customers accordingly. The customers should be targeted after properly having the full
information of the financial circumstances of the customers and offer the package accordingly.


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COMPANY PROFILE

About IDBI Fortis

IDBI Fortis Life Insurance Co Ltd is a joint-venture of IDBI Bank, Indias premier development
and commercial bank, Federal Bank, one of Indias leading private sector banks and Fortis
Insurance International, a multinational insurance giant based out of Europe. In this venture,
IDBI owns 48% equity while Federal Bank and Fortis own 26% equity each. At IDBI Fortis, we
endeavor to deliver products that provide value and convenience to the customer. Through a
continuous process of innovation in product and service delivery we intend to deliver world-class
wealth management, protection and retirement solutions to Indian customers. Having started in
March 2008, in just five months of inception we became one of the fastest growing new
insurance companies to garner Rs 100 Cr in premiums. The company offers its services through
a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a
sizeable network of advisors and partners. In only its first year of operations, as on March 31st
2009, the company collected more than 328 Cr in premiums highest first year collection in the
history of Indian life insurance industry, through over 87000 policies and over Rs 2825 Cr in
Sum assured.

About the sponsors of IDBI Fortis Life Insurance Co Ltd

IDBI Bank Ltd. continues to be, since its inception, Indias premier industrial development
bank. Created in 1956 to support Indias industrial backbone, IDBI Bank has since evolved into a
powerhouse of industrial and retail finance. Today, it is amongst Indias foremost commercial
banks, with a wide range of innovative products and services, serving retail and corporate
customers in all corners of the country from over 700 branches and more than 1180 ATMs. The
Bank offers its customers an extensive range of diversified services including project financing,
term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate
advisory services and legal and technical advisory services to its corporate clients as well as
mortgages and personal loans to its retail clients. As part of its development activities, IDBI
Bank has been instrumental in sponsoring the development of key institutions involved in Indias
financial sector such as the Securities and Exchange Board of India (SEBI), National Stock
Exchange of India Limited (NSE) and National Securities Depository Ltd.


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Fortis is an international insurance group composed of AG Insurance, the overall market leader
in life and non-life insurance in Belgium, distributing its insurance products through the network
of BNP Paribas Fortis Bank and independent insurance brokers, and Fortis Insurance
International with subsidiaries in the UK, France, Hong Kong, Luxembourg (Non-life),
Germany, Turkey, Russia and Ukraine, and joint ventures in Luxembourg (Life), Portugal,
China, Malaysia, Thailand and India.

Federal Bank is one of Indias leading private sector banks, with a dominant presence in the
state of Kerala. It has a strong network of over 660 branches and 690 ATMs spread across India.
The bank provides over four million retail customers with a wide variety of financial products.
Federal Bank is one of the first large Indian banks to have an entirely automated and
interconnected branch network. In addition to interconnected branches and ATMs, the Bank has
a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any Where
Banking, debit cards, online bill payment and call centre facilities to offer round the clock
banking convenience to its customers.
.


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PRODUCT RANGE
INCOMESURANCE
Incomesurance not only gives you unmatched transparency and flexibility but there are lots of
other features which are inbuilt in the product like convenient premium payment options, Tax
benefits and double advantage of Endowment and Money Back plan.

Incomesurance combines Endowment and Money Back benefits into one plan. You can get
periodic payments as in Money Back or get a lump sum at maturity as in Endowment. You can
make it into an Endowment plan or Money Back plan, as you wish.

WEALTHSURANCE
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your financial
goals. However, unlike other investment alternatives, it also enables you to achieve your wealth
goals even in the event of unexpected death, accidents, disablement or serious illness.

The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are achieved
by protecting that plan with insurance benefits.

With Wealthsurance Foundation Plan, you can:

Save into the Plan as much money as you want whether at one time, at regular intervals or
as per your convenience.

Build your wealth by choosing the investments your savings go into and change them from
time to time as you wish.

Get adequate life insurance cover with a unique built-in terminal illness benefit, so that the
financial security of your loved ones is assured and your plans are always realized.


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RETIRESURANCE
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement. The plan is tailor-made for the ever changing
investment environment, with built-in flexibilities to manage your investment mix. On
retirement, you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life, even after you stop earning your regular income.

HOMESURANCE

The Homesurance Protection Plan is a reducing term plan, which provides insurance cover
equal to the outstanding balance of your home loan. In the unfortunate event of death of the
home loan borrower, the insurance cover enables repayment of the home loan liability.

Protection against loan liability

A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there, it could become a serious burden to the family. The Homesurance Protection
Plan protects against this liability.

BONDSURANCE

Bondsurance is a single premium plan which allows you to make a one-time investment and
get a guaranteed amount on maturity. You can choose a maturity period of 5 or 10 years for
your investment. At the end of the chosen period, you will receive a guaranteed maturity
amount.

Besides the guaranteed maturity amount, Bondsurance also provides a life insurance cover.
In case of death before the maturity date, a Death Benefit which is also guaranteed will be
paid.

Thus you can get life insurance cover, while earning an assured return on your
investment.


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RESEARCH DESIGN:

RESEARCH OBJECTIVES:
The primary research objective is to determine how the implementation of a CRM programme
could optimize the relationship between IDBI Fortis Life Insurance Co. Ltd. and its clients, and
thereby to gain competitive advantage in the market. In order to achieve this objective, it is
necessary for me to approach the common people to know their mind set and perception about
insurance and features they are looking in any insurance policy. Also have to know about the
strategies adopted by different companies to maintain customer relationship. For this purpose,
two types of questionnaires have been designed:
1. B2C i.e. Business To Customer for the common people

2. Other one for the employees of the companies.
The purpose of designing B2C questionnaire is as follows:
To know the mind set of the people before taking any insurance policy.
Features which the people consider the most while taking any insurance policy and work
on to strengthen that feature.
Remove the current pitfalls and improve customer relationship.
Segmenting the customers on the basis of their expectations.
Positioning the customers.
Work on the customer acquisition and retention.
Developing a customer database and planning to do multi- level marketing based on the
responses by the people and generate business.

The purpose of designing questionnaire for the employees is as follows:
To know about the strategy adopted by different companies which provide
intangible services and implementing that strategy in IDBI Fortis.
To compare policies followed by other companies with that of IDBI Fortis.

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To focus on their marketing efforts to build customer relationship and work on the
same.
To know the strategies adopted to retain the existing customers.

RESEARCH PLAN
The research process depends upon developing the most efficient plan for gathering the needed
information. Designing a research plan calls for decisions on the data sources, research
approaches, research instruments, sampling plan, and contact methods.
As our primary objective is to optimize the relationship IDBI Fortis and its clients and to know
the mind set of the people before they are going for any insurance policy thus to generate
competitive advantage in the market place. So my initial job is to approach the people randomly
and look for the people who can be a potential customer for IDBI Fortis. Also I have to approach
various companies which provide intangible products (basically service organizations) to know
about their strategies which they use to maintain relationship with their customers and compare
that with IDBI Fortis.
DATE SOURCE:
For this project both primary and secondary data were the most valuable source of information.


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Secondary data:-
Secondary data provide a starting point for research and offer the valuable source of information.
The secondary data was the most important source of information for my project because I will
have to do the comparative analysis of the strategies followed by various competitors of IDBI
Fortis. It also helps me in doing the comparison of various financial products like Incomesurance
and various types of ULIPs under Wealthsurance. I have gone through the sites of the following
insurance companies to gather the required information and have done the comparative analysis:
LIC
ICICI Prudential Life Insurance company
HDFC Life Insurance Company
Primary data:-
Primary data are data freshly gathered for a specific purpose. The various sources of primary
data for my project are as follows.
IT companies
Local residents.
Insurance Companies
Shopping malls


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RESEARCH APPROACHES:-
After collecting the secondary data or information from the secondary sources then I started
collecting from primary sources to narrow down my research. There are basically five ways to
collect data.
Survey Research: - This method was the most appropriate way to collect data. And I
have used this method in my project to find out the perception of the different people
about IDBI Fortis Life Insurance Co. Ltd.
Observational Research:- This method was not used by me in my project because this
survey have no use for me.
Focus-group Research: - This method is also not used by me in my survey.
Behavioral data:-This method was also not used by me in my survey.
THE RESEARCH INSTRUMENT
The research instrument is used to measure the perception and expectation of the respondent.
There are various ways of research instrument of collecting primary data, the various methods
are:-
1. Questionnaires.
2. Psychological tools.
3. Mechanical Devices.
4. Qualitative Measures.

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From the above mentioned research instruments I had used only Questionnaires technique to
find out the various information about the clients such as their turnover, chartered accountant,
investment behaviors, who is their financial consultant etc. And this was the technique which I
felt the best way to extract information about the client.
The survey was conducted among the people of different age groups and occupation through the
Questionnaire (B2C) and among the employees of the different companies providing intangible
services.
The questionnaire was designed on the basis of LIKERT SCALE due to which it becomes very
easy to analyze the responses given by the people.
SAMPLING PLANS:-
After collecting entire data and deciding on the research approach and instruments, now I had to
decide on the sampling plan which was one of the important tasks, because from the bunch of
people I had to select only those people, whom I can target from now onward .There are two
ways of sorting the data.
o Sampling Unit: - who is to be surveyed? And now my task was to define
the target population, which will be sampled from the number of people.

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o Sample Size: - large sample give more reliable result than small sample,
so for this reason I had taken around 160 people for B2C questionnaire
and 50 people for the employees of the companies.
CONTACT METHODS:-
Once the client had been decided now my task was how to contact them, and for me there are
only two ways of contacting them.
1. Personal Interview: - this method was the most appropriate way of survey,
because by personal interview I came to know their feeling about IDBI
Fortis, their personal behavior and many more things.
2. Telephone: - This method is also used by me for once, because the client
had no time for me, and there was no other option for me.


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DATA ANALYSIS

SECONDARY DATA ANALYI SI S

IDBI FORTIS offers a different variety of schemes and a good range of ULIPs. There are a lot of
ULIPs under the flagship banner Wealthsurance, Bondsurance, Homesurance and Retiresurance.
I have done the comparative analysis of money back scheme which is called incomesurance and
ULIPs under Wealthsurance.
Analysis of ULIPs has been done under the flagship banner wealthsurance and the companies
undertaken for the study are:
LIC INDIA

ICICI Prudential
Comparative analysis of money back schemes of IDBI Fortis which is called Incomesurance has
been done taking the following companies under consideration:
LIC INDIA

SBI Life Insurance Company

ICICI Prudential

MetLife


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COMPARATIVE ANALYSIS OF IDBI FORTIS LIFE INSURANCE CO.
LTD. WITH OTHER COMPETITORS
PRODUCT WEALTHSURANCE

I. IDBI FORTIS LIFE INSURANCE CO. LTD.

Minimum entry age(yrs)
30 Days
maximum entry age(yrs)
65
maximum maturity
age(yrs)
75
min. premium 10000
No. of funds 7
Riders
ADBR, ADB, WOPR, MAJOR DISEASES
BENIFIT, HOSPITAL BENEFIT, TERMINAL
ILLNESS BENEFIT
Min. premium payment
term(yrs)
3
TABLE - - I

TYPES OF FUND. EQUITY, NIFTY, CAPITAL GUARANTEE, ASSET
ALLOCATOR, GRF, MONTHLY INT A/C, INCOME,
LIQUID


Page | 29
II. LIFE INSURANCE CORPORTAION (LIC) OF INDIA
LIC offers 3 different types of ULIPs under flagship banner wealth insurance:
a. MARKET PLUS
b. PROFIT PLUS (RP & SP)
c. FORTUNE PLUS
ADBR-Accidental Death Benefit Rider,
CIBR-Critical Illness Benefit Rider

Market Plus Profit Plus (RP & SP) Fortune Plus
Minimum entry
age(yrs)
18 0 12
maximum entry
age(yrs)
70 65 60
maximum maturity
age(yrs)
75 70,75 65
min. premium 10000 20000 20000
No. of funds 4 4 4
Riders ADBR ADBR,CIBR ADBR
Min. premium payment
term(yrs)
5 3 5
TABLE - - II


Page | 30
COMPARITIVE ANALYSIS
MARKET PLUS
I. Premium allocation charge is 16.5% in this product where as
Wealthsurance has a charge of Max 4%.

II. In Wealthsurance there is unlimited switching redirection and partial
withdrawal allowed absolutely free of charge.

III. There are no riders available in this product as against Wealthsurance
has a host of riders to choose from.

IV. After 3 years we can go for unlimited partial withdrawals as against
in this product there are no partial withdrawal available.

PROFIT PLUS
(RP & SP)
I. Premium allocation charge is 15% min in this product where as

II In Wealthsurance there is unlimited switching redirection and partial

III. There are no riders available in this product as against Wealthsurance
has a host of riders to choose from.

FORTUNE PLUS
I. Min Entry age in Wealthsurance is 0 years as against in this product it
is 12 years

II. Max entry age in Wealthsurance is 65 years as against in this product it
is 60 years only.
TABLE - - III
III. ICICI PRUDENTIAL LIFE INSURANCE COMPANY
ICICI PRUDENTIAL OFFERS 5 DIFFERENT TYPES OF ULIPs
a. LIFE TIME GOLD
b. LIFE LINK SUPER
c. PREMIER LIFE GOLD
d. LIFE TIME PLUS

Page | 31
e. LIFE STAGE
LIFE TIME GOLD
LIFE
LINK
SUPER
PREMIER LIFE
GOLD
LIFE TIME
PLUS
LIFE
STAGE
Minimum
entry
age(yrs)
0 0 0 0 0
Maximum
entry
age(yrs)
65 65 69 65 65
Maximum
maturity
age(yrs)
75 70 75 75 75
Min.
premium
20000 50000 10000 20000 15000
No. of
funds
7 7 7 7 7
Riders ADBR,CIBR,WOP NO ADBR,CIBR,WOP ADBR,CIBR ADBR,CIBR
Min.
premium
payment
term(yrs)
3 SP 3 and 5 3
LIFE
BASED
TABLE - - IV
COMPARATIVE ANALYSIS
LIFE TIME
GOLD
I. Premium allocation charge is premium based in this product where as
Wealthsurance has a charge of Max 4% and with higher premium the
allocation charge decreases.
II. Min Premium in Wealthsurance is only Rs.10000 as against in this
product it is 20000

Page | 32
III. In Wealthsurance there is unlimited switching redirection and partial
LIFE LINK
SUPER
I. Premium allocation charge is 20% in this product where as
product it is 20000
PREMIER
LIFE GOLD
II. There are no riders available in this product as against Wealthsurance
has a host of riders to choose
from.
withdrawal allowed absolutely free of charge
LIFE TIME
PLUS
product it is 20000
LIFE STAGE
product it is 20000
IV. There are only 2 riders available in this product as against
Wealthsurance has a host of riders to choose from.
TABLE - - V

Page | 33
PRODUCT INCOMESURANCE
COMPARATIVE ANALYSIS

S.No. Income Insurance
IDBI Fortis Life
Insurance co. Ltd.
LIC
SBI life insurance
company
ICICI prudential
life insurance
company
MetLife
(junior)
1 Entry Age (years)
Minimum 30 days 12 15 16 0
Maximum 65 65 60 70 14
2 Sum insured (Rs.)
Minimum
Subject to a minimum
based on min.
premium
50000 50000 75000 50000
Maximum No Limit no limit 5 crores No Limit
No
Limit
3 policy terms
Minimum 10 5 10 15 20
Maximum 25 55 25 20 -
4
Maximum
premium paying
period(years)
15 25 25 20 -
5
Minimum
premium paying
period(years)
5 3 10 15 20
6 Mode of payment
montly,half yearly,
annually
montly,quarterly,half
yearly, annually, salary
saving scheme
montly,quarterly,half
yearly, annually
yearly, half yearly,
monthly
monthly
and
annually
7
policy loan
available
No No No No No
8
Minimum
premium (Rs)

10000 3000 3200 6000 5000

9
Maximum
premium (Rs)

no limit no limit Rs 3051170 No Limit
No
Limit

10
Annually
premium paid
sum
insured is
100000
Rs 12000 Rs 8398 Rs 11228 - - policy
term is 10
years
age 25
11 tax benefit

double tax benefit double tax benefit double tax benefit - -

TABLE - - VI


Page | 34
COMPARATIVE ANALYSIS OF IDBI FORTIS WITH ITS COMPETITORS
The analysis is done on the basis of Questionnaire designed for the employees of the different
companies providing intangible services (Refer to APPENDIX- I). Sample size taken is 50 in
numbers.
Here, the companies taken into consideration are different competitors of IDBI Fortis in order to
understand the strategies adopted by them to maintain customer relationship.
TABLE - - VII
S.NO. Parameters
IDBI Fortis
Life
Insurance
Co. Ltd.
LIC
ICICI
Prudential
AEGON
Religare
SBI Life Insurance
Company
MetLife
Bajaj
Alliance
1
Key features
identified
Product
service
and
reliability
Services
product
and
reliability
services and product
services and
product
services and
product
2
interval of
communications
Weekly Weekly Monthly Monthly Weekly Quarterly Weekly
3
Mode of
communications
personally
and mails
telephone
and mails
personally
and
telephonically
telephones
and e-
mails
telephones and e-mails
telephones
and e-mails
personally
and telephone
4
time taken to
resolve
Customer
complains
1 to 3 days
depends
on the
complaint
3 to 6 days 1 to 3 days 3 to 6 days 3 to 6 days 1 to 3 days
5
Methodology
followed
product
differentiation
Brand
image and
customer
centric
product
differentiation
and customer
centric
customer
centric and
services
product differentiation
product
differentiation
and customer
centric
customer
centric
6
Customization
of services and
products
on a regular
basis
on a
regular
basis
very flexible
on a
regular
basis
very essential
on a regular
basis
depends upon
the feasibility
7
promotion and
Distribution
strategies
bill boards,
hoardings and
management
trainees
Media
media,
newspaper,
magazines
and
distributers
media,
hoardings
and
distributers
media,newspaper,distributers
media,
hoardings and
distributers
media and
agents
8
Pricing of
products
Moderate very less Moderate Moderate suitable for customers
suitable for
customers
customer
centric
9 Primary focus product Services good services Services Services Services Product
10
handle
customer
feedback
immediate
action
personally
talking
with the
customers
and
sorting
the query
positively and
one to one
quickly
through
telephones
constructively and through
telephones
mostly one to
one
constructively

Page | 35
PRIMARY DATA ANALYSIS
I have done a detailed survey in Bangalore city to understand and study the consumers
responses. The primary data was collected through questionnaires. There are two types of
questionnaires designed for this purpose. One for the employees of the different companies
providing intangible services i.e. B2B to know about the strategies adopted by various
companies to maintain the customer relationship and other one is for the common people i.e.
B2C to understand the mindset of the people towards insurance industry.
I. ANALYSIS OF B2B QUETIONNAIRE (Refer to APPENDIX- I).
Sample size taken is 50 in numbers.
The sample includes the responses of the employees of the companies who have given the main
reason for their customers to choose their respective companies and 50% of them considered
their services as the main reason for the customers to choose their company.

.
The strategy also includes how often they contact their customers in order to develop the
relationship with their customers. Around 70% of the companies prefer to contact their
customers on monthly and weekly basis to get their feedback and work for the improvisation.

0
10
20
30
40
50
Main Reason
Percentage of
companies
GRAPH -- I

Page | 36

Also when asked about the preferred medium of communication with their customers, around
70% of the company prefer telephone as the main medium for the communication with their
customers. Next preference will be given to face to face talking with the customers.

When asked about the time taken by them to resolve customer complaints, around 70 % of them
take 1 to 3 days to resolve the customer complaints.
0
5
10
15
20
25
30
35
40
45
Percentage of
companies
Preffered interval of communication
0
10
20
30
40
50
60
70
face to face telephone e mails
Percentage of
companies
Preffered Medium
GRAPH -- III
GRAPH -- II

Page | 37

When asked about the methodology adopted by different companies in order to differentiate
themselves from their competitors, 55% of the companies adopted customer centric approach
and give priority to their services in order to maintain customer relationship with the customers.

0
10
20
30
40
50
60
70
1 to 3
days
3 to 6
days
6 to 9
days
more
than 10
days
Others
Frequency of resolving customer
complaints
Percentage of
companies
0
10
20
30
40
50
60
Percentage of
companies
Methodology adopted
GRAPH -- IV
GRAPH -- V

Page | 38
Also when asked about the strategy they adopted in order to establish the loyal customers and
retain the existing one, around 65% said about providing good services and 20% of them prefer
timely feedback to the customers.

II. ANALYSIS OF B2C QUESTIONNAIRE (Refer to Appendix II)
Sample size taken is 160 in numbers
This questionnaire was mainly formulated to target the common man to see his perception and
awareness of various investment options available. The sample of respondents was carefully
selected covering people in all age groups and with different backgrounds and occupations. The
analyses of these questionnaires give us an insight about the mindset of people regarding various
investments. I have also used factor analysis in SPSS to extract the prominent factors influencing
the investment decisions of the customers. Customer preferences as to where they would like to
invest have been studied. Also we come to know about the preferences given by customers
towards various top life insurance companies and their reasons for it. Here we see that most of
the customers invest regularly from quite some time but since the last few months their
investments have come down due to recession and market slowdown. Following is the analysis
0
10
20
30
40
50
60
70
Percentage of
companies
Efforts to establish loyal customers
GRAPH -- VI

Page | 39
of the primary data collected through questionnaires. The sample included respondents from all
the age groups out of which people in the age group 30-40 constituted around 60%.

The sample of respondents was heterogeneous with people of various occupations right from
government service to ones who were self employed. Out of these people 50% of the respondents
are working in the private companies.

0
10
20
30
40
50
60
20-30 30-40 40-50 50-60
Age Group
percentage of
respondents
0
10
20
30
40
50
Occupation
percentage
GRAPH -- VII
GRAPH -- VIII

Page | 40
When asked from the respondents that whether they own an insurance policy or not, 80% of the
respondents own an insurance policy.

When asked about the reasons for taking the insurance policy, 60 % of the people will consider
risk coverage before taking the insurance policies.

This is due to the following reasons:
1. It will provide returns in the case of unexpected death to deal with debts, mortgage
payments and day-to-day living expenses. It offers protection to the family you leave
behind and serves as a cash resource.
0
20
40
60
80
Yes No
Own an insurance policy
percentage of
respondents
0
10
20
30
40
50
60
70
Risk
Coverage
Pension Tax
Benefit
others
percentage of customer
GRAPH -- IX
GRAPH -- X

Page | 41
2. It secures your estate on death by providing tax free cash which can be utilized to pay
estate and other death duties.
3. Some policies have riders such as critical illness for the children or spouse. There are
particular rules considering eligibility for riders which you will have to clearly
understand.
4. In case of bankruptcy, the cash value together with the death benefits is exempt from
your creditors.
5. It is considered as having a financial asset and this will improve your credit rating when
you need medical insurance or a home loan or business loan.
6. It has double benefits as it protects and you can also your money back during strategic
points in your life.
7. It can contribute towards sustaining a familys standard of living when one contributing
partner dies unexpectedly.
Also the customers preferences for different forms of savings have been carefully studied. The
Comparison of investment in insurance has been done with other forms of investment
instruments and analyzed carefully. The main savings instruments generally preferred by
customers are bank deposits, mutual funds, insurance and shares and debentures. Around 35% of
the respondents feel Mutual funds and bank deposits are better investment instruments than
insurance but 29% are willing to invest in insurance industry.

Around 63% of the respondents owned an insurance policy in LIC which clearly shows that LIC
still continues to be the market leader in as it has been since the last 50 years or so in spite of the
presence of various powerful private players which are still finding hard to capture a major
market share. Around 13% of respondents chose ICICI Prudential.
0
10
20
30
40
Investment instrument
percentag
GRAPH -- XI

Page | 42
Following is the rating (from 1-5, 1-bad, 5-best) given by respondents to the five selected life
insurance companies. Here we can clearly see that LIC has the best rating. The reasons given by
the respondents were that LIC was a public sector company which is well established and has got
loads of experience

Also, Around 62% respondents felt that there was an amount of moderate to high risk involved
with ULIPs.

GRAPH -- XII

Page | 43

0
10
20
30
40
Unit linked insurance Plans
percentage
of
GRAPH -- XIII

Page | 44
STATISTICAL ANALYSIS
The mind set of the people while going for any insurance policy will depend upon the following
variables:
1. Long term investment
2. Investment in financial products
3. Factors that considered most by the respondents while going for any insurance
policy:

Insurance coverage
High returns
Low premium
Flexible withdrawals
Risk involved
Customer service
Credibility
Safety
Tax benefit
Customization of products and services

The data collected was statistically analyzed by making use of the following tools:
1. Frequency distribution table
2. Pearsons co-efficient r
3. Charts and graphs
The responses of each respondent were carefully analyzed and the key features of the insurance
policy were extracted thereafter.
The coding is done like:
Strongly disagree 1.Strongly agree - 5
The responses which were missed by the respondents during the survey are given code as 6.


Page | 45
1. Long term investment is favorable

value label value frequency Percentage
valid
percentage
cumulative
percentage
strongly
disagree
1 1 0.636942675 0.641025641 0.408296587
Disagree 2 5 3.184713376 3.205128205 3.846153846
Neutral 3 26 16.56050955 16.66666667 20.51282051
Agree 4 60 38.21656051 38.46153846 58.97435897
strongly agree 5 64 40.76433121 41.02564103 100
Missing 6 1 0.636942675
TOTAL 157 100 100

TABLE - - VIII
This shows that 41% of the respondents with valid responses strongly agreed that long term
investment is favourable. Mean calculated represents the location of central tendency which
signifies that it lies between agree and strongly agree and 59% of them indicated the long term
favorability value of 4 or less which shows that they were agree to it.

0
10
20
30
40
50
1 2 3 4 5
Long Term investment
valid percentage
GRAPH -- XIV

Page | 46
This is due to following reasons:
Investment amount is less in long term
Returns are much better in long term
They get the benefit on tax for longer term.

2. Investment in financial Products is beneficial
value label value Frequency Percentage
valid
percentage
cumulative
percentage
strongly
disagree
1 2 1.27388535 1.342281879 0.816593173
Disagree 2 10 6.369426752 6.711409396 8.053691275
Neutral 3 49 31.21019108 32.88590604 40.93959732
Agree 4 52 33.12101911 34.89932886 75.83892617
strongly agree 5 36 22.92993631 24.16107383 100
missing 6 8 5.095541401
TOTAL 157 100 100

TABLE - - IX

0
10
20
30
40
1 2 3 4 5
Investment in financial products is better
valid percentage
GRAPH -- XV

Page | 47
This shows that 34% of the respondent with valid responses agreed that investment in the
financial products is beneficial but the mean lies between agree and neutral. But the mean lies
between 3 and 4 therefore location of central tendency lies between neutral and agree.
3. Also the features which the people consider while going for any insurance policy :

INSURANCE COVERAGE
valid
percentage
cumulative
percentage
strongly
disagree
1 1 0.636942675 0.662251656 0.408296587
disagree 2 5 3.184713376 3.311258278 3.973509934
neutral 3 43 27.38853503 28.47682119 32.45033113
agree 4 63 40.12738854 41.7218543 74.17218543
strongly agree 5 39 24.84076433 25.82781457 100
missing 6 6 3.821656051
TOTAL 157 100 100

TABLE - - X

0
10
20
30
40
50
1 2 3 4 5
Insurance coverage
valid percentage
GRAPH -- XVI

Page | 48
HIGH RETURNS
value label value frequency percentage
valid
percentage
cumulative
percentage
strongly
disagree
1 1 0.636942675 0.662251656 0.408296587
Disagree 2 1 0.636942675 0.662251656 1.324503311
Neutral 3 32 20.38216561 21.19205298 22.51655629
Agree 4 77 49.04458599 50.99337748 73.50993377
strongly agree 5 40 25.47770701 26.49006623 100
Missing 6 6 3.821656051
TOTAL 157 100 100

TABLE - - XI

0
10
20
30
40
50
60
1 2 3 4 5
High returns
valid percentage
GRAPH -- XVII

Page | 49
SERVICE DIFFERENTIATION
valid
percentage
cumulative
percentage
strongly
disagree
1 2 1.27388535 1.333333333 0.816593173
disagree 2 7 4.458598726 4.666666667 6
neutral 3 52 33.12101911 34.66666667 40.66666667
agree 4 61 38.85350318 40.66666667 81.33333333
strongly agree 5 28 17.8343949 18.66666667 100
missing 6 7 4.458598726
TOTAL 157 100 100

TABLE - - XII

0
10
20
30
40
50
1 2 3 4 5
Service differentiation
valid percentage
GRAPH -- XVIII

Page | 50
FLEXIBLE INVESTMENT OPTION

value label value Frequency percentage
valid
percentage
cumulative
percentage
strongly
disagree
1 0 0 0 0
disagree 2 5 3.184713376 3.378378378 3.378378378
neutral 3 59 37.57961783 39.86486486 43.24324324
Agree 4 61 38.85350318 41.21621622 84.45945946
strongly agree 5 23 14.64968153 15.54054054 100
missing 6 9 5.732484076
TOTAL 157 100 100

TABLE - - XIII

0
5
10
15
20
25
30
35
40
45
1 2 3 4 5
Flexible investment options
valid percentage
GRAPH -- XIX

Page | 51
RISK INVOLVED
valid
percentage
cumulative
percentage
strongly
disagree
1 0 0 0 0
disagree 2 8 5.095541401 5.405405405 5.405405405
neutral 3 56 35.66878981 37.83783784 43.24324324
agree 4 68 43.31210191 45.94594595 89.18918919
strongly agree 5 16 10.1910828 10.81081081 100
missing 6 9 5.732484076
TOTAL 157 100 100
TABLE - - XIV

0
5
10
15
20
25
30
35
40
45
50
1 2 3 4 5
Risk involved
valid percentage
GRAPH -- XX

Page | 52

SERVICES
valid
percentage
cumulative
percentage
strongly
disagree
1 0 0 0 0
disagree 2 3 1.910828025 2 2
neutral 3 27 17.19745223 18 20
agree 4 49 31.21019108 32.66666667 52.66666667
strongly agree 5 71 45.22292994 47.33333333 100
missing 6 7 4.458598726
TOTAL 157 100 100

TABLE - - XV

0
10
20
30
40
50
1 2 3 4 5
Services
valid percentage
GRAPH -- XXI

Page | 53

CREDIBILITY
valid
percentage
cumulative
percentage
strongly
disagree
1 1 0.636942675 0.67114094 0.408296587
disagree 2 6 3.821656051 4.026845638 4.697986577
neutral 3 40 25.47770701 26.84563758 31.54362416
agree 4 61 38.85350318 40.93959732 72.48322148
strongly agree 5 41 26.11464968 27.51677852 100
missing 6 8 5.095541401
TOTAL 157 100 100

TABLE - - XVI

0
5
10
15
20
25
30
35
40
45
1 2 3 4 5
Credibility
valid percentage
GRAPH -- XXII

Page | 54

TAX BENEFIT
value label value Frequency percentage
valid
percentage
cumulative
percentage
strongly
disagree
1 0 0 0 0
disagree 2 9 5.732484076 6.164383562 6.164383562
neutral 3 26 16.56050955 17.80821918 23.97260274
agree 4 71 45.22292994 48.63013699 72.60273973
strongly agree 5 40 25.47770701 27.39726027 100
missing 6 11 7.006369427
TOTAL 157 100 100

TABLE - - XVII

0
5
10
15
20
25
30
35
40
45
50
1 2 3 4 5
Tax Benefit
valid percentage
GRAPH -- XXIII

Page | 55

CUSTOMIZATION OF PRODUCTS AND SERVICES

valid
percentage
cumulative
percentage
strongly
disagree
1 0 0 0 0
disagree 2 1 0.636942675 0.684931507 0.684931507
neutral 3 32 20.38216561 21.91780822 22.60273973
agree 4 80 50.95541401 54.79452055 77.39726027
strongly agree 5 33 21.01910828 22.60273973 100
missing 6 11 7.006369427
TOTAL 157 100 100

TABLE - - XVIII

0
10
20
30
40
50
60
1 2 3 4 5
Customization of products and services
valid percentage
GRAPH -- XXIV

Page | 56
INTERPRETATION

IMPORTANCE PERFORMANCE ANALYSIS
Based on the TABLE - VII, below shows the features which IDBI Fortis Life Insurance Co. Ltd.
is required to focus to develop the customer relationship.

CONCENTRATE HERE
KEEP UP THE GOOD WORK

customer service intervals of communication
brand image Mode of communication
pricing customization of products
Methodology followed handling customer complaints
Distribution strategies

LOW PRIORITY POSSIBLE OVERSKILL

NIL
NIL

FIGURE - - III
IMPORTANCE RATING
PERFORMANCE RATING
Extremely
Slightly
Fair
Extremely

Page | 57
The above Importance-Performance chart reflects the issues which are very important in
the insurance sector but are under performed by IDBI Fortis. So it needs to focus on these
parameters to build up the customer relationship.

It also shows the issues which IDBI Fortis is performing well and that are also required
by the insurance sector to run well among the competitors.

As all the issues are quite important for customer relationship, so none of the issue can be
given low priority.

As IDBI Fortis is a new comer in this field, so none of the issue can be observed as
possible over skill of IDBI Fortis.


Page | 58
Following are main extracted prominent factors that influence the consumer and that help
in building relationship with the customer are:
1. Customer services
2. High returns associated with insurance policy.
3. Minimum Risk involved
4. Customization of services
5. Product differentiation
6. Tax benefit from the insurance policy.
7. Flexible investment options
When rating the above extracted factors based on the importance given by the respondents,
customer service is the most prominent feature associated with the insurance policy in order to
maintain the customer relationship as 43% of the respondents preferred of getting good service
from the insurance company they are dealing with.

Hence the key factor extracted from the above pie chart that is most responsible for maintaining
good customer relationship is CUSTOMER SERVICE

5%
11%
17%
7%
5%
43%
12%
Percentage of Respondents
Flexible investment
options
high returns
customization of
products
product differentiation
Risk involved
services
tax Benefit
GRAPH - -XXV

Page | 59
ASSOCIATION OF OTHER FACTORS WITH CUSTOMER SERVICE
The association of other factors with the customer service is statistically analyzed as they are
also the prominent factors and affects the customer relationship. The association is done by
evaluating the Pearsons co-efficient between the two variables. The value of Pearsons co-
efficient falls between -1.0 to +1.0 which indicate the strength and direction of association
between the two variables. The formula used in order to calculate the Pearsons co- efficient is:
R = SUM [(XI-X) (Y1-Y)] / [SUM (XI-X) ^ 2 * SUM (YI-Y) ^ 2] ^
Where:
X is the mean of the responses by the respondents of customer service
X1 is the individual responses by the respondents of customer service
Y is the mean the responses by the respondents of other factors
Y1 is the individual responses by the respondents of other factors

1. The level of customized service offered according to each individuals client need is
increased if the level of customer service is increased.

VARIABLE

VARIABLE ONE
INDEPENDENT VARIABLE
VARIABLE TWO
DEPENDENT VARIABLE
PEARSON
VALUE R
CUSTOMER SERVICE CUSTOMIZED SERVICE 0.506

TABLE - -XIX
R = 0.506
Since -1.0 < 0.506 < +1.0
Sine the value of R is positive therefore it shows that there is a positive relationship
between the two variables. Since its value is positive it shows that if the level of customer
service increased more will the level of customized service provided to the customers.

Page | 60
2. Increase in the level of customer service will also increase the possibility of assuring
high returns to the customers.

VARIABLE

VARIABLE ONE
VARIABLE TWO
DEPENDENT VARIABLE
PEARSON
VALUE R
CUSTOMER SERVICE ASSURING HIGH RETURNS 0.236
TABLE - -XX
R = 0.236
Since -1.0 < 0.236 < +1.0
Sine the value of R is positive therefore it shows that the relationship between the two is
moderately positive. Since its value is positive it shows that the possibility of assuring high
returns is increased if customer service is increased.
3. Increase in the customer service level will increase the flexibility in the investment
option of the customers.
VARIABLE

VARIABLE ONE
VARIABLE TWO DEPENDENT
VARIABLE
PEARSON
VALUE R
CUSTOMER SERVICE FLEXIBILITY 0.8806
TABLE - -XXI
R = 0.8806
Since -1.0 < 0.8806 < +1.0

Page | 61
The value of R is positive therefore it shows that there is a strong positive relationship
between the two variables. Since its value is very high it shows that if the level of customer
service increased, the customer will get better flexibility in their investment.
4. Increase in the customer service level will provide better tax benefit opportunities to
the customers.
VARIABLE

VARIABLE ONE
VARIABLE TWO
DEPENDENT VARIABLE PEARSON
VALUE R
CUSTOMER SERVICE TAX BENEFIT 0.799
TABLE - -XXII
R = 0.799
Since -1.0 < 0.799 < +1.0
Sine the value of R is positive therefore it shows that there is a positive relationship
between the two variables. Since its value is positive it shows that if the level of customer
service increased more will the level of customized service provided to the customers.
5. Better customer service will help to avoid any risk associated with the particular
insurance policy.
VARIABLE

VARIABLE ONE
VARIABLE TWO
DEPENDENT VARIABLE PEARSON
VALUE R
CUSTOMER SERVICE RISK INVOLVED 0.2367
TABLE - -XXIII
With Pearson value r of 0.2367, the correlation is positive, but the value is very less. Hence
by increasing the level of customer service will help to minimize the risk that is associated
with a particular insurance policy.

Page | 62
Different ways of proving good customer service:

1. Going direct to the customer: The biggest current shift in the insurance market means
big changes for customer experience. Because of heightened competition from many of
the newer, more Internet-driven insurance providers, several of the older, well established
insurance companies are investing significant resources to move more towards a direct-
to-consumer business model and away from their traditional model, which has relied
heavily on third-party brokers or captive or independent insurance agents in the field.
This will help to maintain the customer relationship as they have greater control of the
company brand and more access to customer data.

2. Becoming more customer centric: In order to master providing a consistent and
consistently positive customer experience, insurance companies must rebuild their
organizations and their contact centers around the customer. They need to become
customer-centric rather than policy-centric.

3. Effectiveness and Efficiency in the Contact Center: Operational issues in the contact
center plague many large organizations and insurers are no different. Some of these
issues include:

Inefficiencies While there is evidence that this is improving, the insurance industry is
plagued with departmental silos and inefficiency.

Inflexible systems - Insurers are dealing with old, monolithic systems and are hesitant to
replace them because they have 100 years worth of data but they need flexibility across
systems and product lines in order to be able to sell more integrated products.

CSR churn - Insurance providers already experience a very high CSR churn rate in their
call centers, relative to other industries. This results in significant expense to the
company in terms of training and recruitment and can negatively impact customer
experience. One of the top reasons CSRs leave their jobs is because of the difficult
systems and technology they need to learn.

Provincial thinking Insurance providers as a whole are rather infamous for their we
can build it in IT culture. This tends to cripple insurance IT resources, and the customer
service operation continually falls down the IT priority list.

Desktop complexity - insurance companies have more than 20 applications and tools on
the desktop. That means that CSRs, who are supposed to provide quality and timely

Page | 63
service to customers on each call, end up navigating through dozens of non-integrated
applications. These business applications were all implemented to satisfy the needs of
other departments: the financial department needs a billing system, the marketing
department needs a CRM system, and the claims department needs a claims system. And
the poor CSR taking the customers call needs to access the data in ALL of those
systems, resulting in the CSRs desktop becoming complete chaos, with dozens of open
applications and tools, each of which contains important but siloed information. This
is why it can take several months just to get new insurance CSRs up to speed, let alone
fully productive, and it is a major contributor to the very high churn rate which insurance
contact centers experience.

4. Honest about the policy CSRs are required to be honest about the policy. As the
customers are very conscious these days, they want clarifications of each and every
question before taking any insurance policy.

5. Avoid false Selling As insurance is a business of developing trust with the customers
therefore CSRs are required to avoid the false selling to their customer as it will ruin the
relationship when the customer gets to know the truth.


Page | 64
FINDINGS

1. LIC, ICICI Prudential and HDFC offers various ULIPs under the same banner i.e.
wealthsurance as compared to IDBI Fortis. Hence they give more flexibility to the
customer which help to optimize the relationship with the customer.

2. The major competitive forces which are necessary to build the strong customer
relationships are:
Better quality
Low cost.
Reliability delivering on promises
Responsiveness willing to help
Brand Image
3. People are more willing to invest in Life insurance products as compare to Non-Life
insurance products.
4. In the insurance sector LIC is the number one company prefer by the people as its market
is very high as compare to other insurance companies.
5. Better customization of the product helps to strengthen the relationship with the
customer.

6. Most of the insurance companies consider Customer Service as the main reason for the
customers to choose their company.

7. Most of the insurance companies prefer monthly and weekly basis to communicate with
their customers.

8. Telephone is the most preferred mode of communication by the services companies.

9. Product differentiation and customer centric approach is the most preferred approach by
the companies.
10. Most of the respondents look for long term investment with the preferred company.


Page | 65
11. Customer Service is the prime reason given by the respondents behind taking any
insurance policy.

12. Bank deposits, mutual funds and insurance are considered to be the most preferred
investment instrument by the respondents.

13. Most of the respondents feels that high risk is involved in ULIPs.


Page | 66
RECOMMENDATIONS
1. The company should constantly come out with innovative products as the competition
is very tough with around 22 companies fighting hard for the market share. Some new
innovative ideas have been suggested below.

An insurance plan for the unborn babies. The premium payment term could be for 6
months and it could start once the fetus is 3 months old inside the mothers womb. There
could be various benefits under this plan for the customers like in case of a premature or
a complicated birth the company would bear the expenses till the baby is healthy again
through the insurance policy. Also there could be death benefits in case of the death of
the baby inside the womb or at the time of delivery. This plan could really be successful
as in India there are lot of premature child deaths and if the company comes out with a
plan like this very tactfully with some implied conditions it would be the first Indian
company to offer insurance to unborn babies.

An insurance plan for mentally retarded and physically handicapped people. This might
be hard to digest but if at all plans like these are possible and really come out then a good
amount of Indian population would really be interested.

The company could also come out with a plan for both the husband and wife where
automatically the wife gets insured along with her husband when her husband purchases
the policy. This could also be the other way round. This could be called the combo family
plan. In simple words it means buy one policy and get another free. No other company
has done something like this till now.

2. IDBI Fortis should focus on its customer services as more and more people are
inclined to this feature of the insurance policy which helps to acquire more customers
and retain the existing one.

3. As the company is a new company it has to really work hard to get itself promoted.
The company could start sponsoring major events and conduct talk shows and
seminars to get noticed. It could also take the help of NGOs. There are many people
in India who still do not know about the concept of insurance. The company could
take this as an opportunity by trying to create awareness.

4. IDBI Fortis should increase the number of plans under its products to give more
flexibility to the customers so that they get better options and take their decisions as
per their needs and requirements.


Page | 67
5. It should bring effective communication and efficiency in its contact center in order
to avoid any chaos and problem at the customer end in order to develop strong
relationship with them.

6. IDBI Fortis should adopt face to face interaction with its customers as the customers
expectations are fluctuating day by day so to overcome that it is required to
understand the need and behavior of the customer in a better way which can be done
by face to face interaction with him.

7. The company should contact its customers on the monthly basis in order to make
continuous interaction with them and taking regular feedback to improvise their
operations.

8. The company should make some innovative strategy to build loyal customers and
retain the existing one so that they can make long term relationship with the
company.

9. IDBI Fortis should launch the open source software as it is seen that theres lack of
awareness about the company in the market.

10. The company should target the consultancy companies for its promotion.

11. The company should not target that people only who are earning but much before
that. To gain the early bird advantage they must organize sessions in the schools and
colleges giving explanations on life insurance. This will make the younger
generations more responsible making them go in for insurance in a big way at the
earliest thus making IDBI Fortis the ultimate beneficiary to enjoy the income from
the customers from the very beginning of their service lives and make them as a long
term customers.

12. The company needs to understand the consumer buying behavior and formulate its
policy accordingly.


Page | 68
MY EXPERIENCES AND LEARNINGS
My SIP at IDBI FORTIS Life Insurance Company has been an extremely enriching one. My SIP
was divided into two main parts. One was the project work and the other was the promotion of
the company. Since the company is new to the market, we were given the major job of
promoting the company through sales. So apart from the project work I had to generate sales for
the company. Initially we found it very difficult to sell policies as the company was a new
company and no one was willing to buy moreover as we were basically located at Bangalore for
our SIP it was even more difficult for us as we knew no-one out there. We faced a lot of hurdles
but at the end we took it as a challenge and moved forward. The first twenty days were really
terrifying as I could not sell even a single policy and it was really very de-motivating but latter
on I moved ahead with the experience gained in the first few days tackling different customers in
different ways. Finally when I sold my first policy in the first week of March I gained confidence
and after that I did not look back. At the end of my SIP, I generated sales of over 1.2 lakhs for
the company and ended up being one among the students with the highest sales generated.
Though I did not have the opportunity of sitting in the office and have much corporate exposure I
dont regret it as I got full hands-on on-the field experience. I got to interact with a lot of
customers and in the process learnt of their different mindsets and the way to deal with each of
them differently. Once I was also thrown out of the house by an angry house-wife when I tried to
sell insurance early in the morning to her. It was a harrowing experience but after that incident I
learnt that marketing is all about dealing with right people at the right time. To summarize my
experience in one line I would say that my experience At IDBI FORTIS was a really great
learning experience with a lot of new things learnt and as I also wish to specialize in marketing
this experience is really a big bonus for me.
The learning I gained during my SIP is mentioned below:
I gained a broader perspective about various investment opportunities and the risk
involved in them.

I came to know about the various technicalities about the Indian insurance industry.

Interactions with customers during surveys and sales helped me enhance my marketing
skills.

My on- the- field sales experience was an enriching one teaching me the different facets
a marketing personnel should posses and the way to deal differently in different
situations.


Page | 69
Through this research I enriched my knowledge on various competitive marketing
strategies adopted by different companies to survive in a highly competitive market.

I learnt in a more detailed way about the nature of work existing in the insurance
industry, the kind of deadlines they have to meet, the kind of pressure and levels of stress
which they work under and the kind of recognitions given to them after they meet or
exceed their targets.

Segmentation, Positioning, Differentiation, Communication Mix, Direct selling were all
the concepts learnt by me in the classroom before but this summer internship really
helped me practically experience all these.


Page | 70
CONCLUSION

Here I conclude that the summer internship program, done in IDBI FORTIS Life Insurance Co.
Ltd, for partial fulfillment of the MBA program in ICFAI Business School (IBS)-Bangalore has
been completed successfully.
Following are the achievements done during the summer internship from 16th February 2010 to
25th May 2010:
a. Survey done with interest of IDBI FORTIS has been conducted successfully and results are
discussed above.
b. Sales done by me during the time have done great business to the company.
c. I was one of the Sales toppers with generated sales of about 1.2 lakhs.
d. The experience gained during the internship has sharpened my marketing and negotiable
skills and given me a great on the field experience.


Page | 71
ANNEXURE I:

QUESTIONNAIRE (B2B)

Name of Employee:
_________________________________________________________________
Address:
___________________________________________________________________________
Tel.No.: ____________________________
Mob No: _________________________________________
Email ID:
____________________________________________________________________________

1. What do you think that your company believes that the management of customer relations is
important -
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

2. What do you think is the main reason for customers to choose your company?
a) Service

Page | 72
b) Product
c) Reliability
d) Image
e) Others ______________________________

3. How often you contact your customer?
a) Weekly
b) Monthly
c) Quarterly
d) Half yearly
e) Annually
4. What medium your company choose to reach the customer?
a) Personally
b) Telephone
c) Mails
d) Email
e) Others ________________________________________
5. How much time you take to resolve the customer complains?
a) 1 to 3 days
b) 3 to 6 days
c) 6 to 9 days
d) More than 10 days

Page | 73
e) Others_________________

6. How does the company differ itself from these competitors?
a) Brand image
b) Product differentiation
c) Customer centric
d) Services.
e) Others______________________

7. What efforts do you put in order to try and establish loyal customers?
a) Providing good services
B) Taking timely feedback
c) Providing gifts and discounts.
d) Maintaining the customers data base secretly.
e) Others

8. How do you handle customer feedback?
_________________________________________________________________________


Page | 74
ANNEXURE II
QUESTIONNAIRE B2C
Personal Details of the Respondent:
1. Name: __________________________________________________________________
2. Age:____________________________________________________________________
3.
Address:_______________________________________________________________________
______________________________________________________________________________
4.
Telephone:____________________________________________________________________
5. Occupation: ______________________________________________________________
6. Annual Income: ______________________________________________________________

1. Do you own an Insurance Policy?
A. Yes
B. No

2. Reasons behind taking an insurance policy?
1. Risk Coverage Investment purpose
2. Pension schemes
3. Tax Benefit
4. Any other (Please Mention) __________________

Page | 75
3. Have you heard about IDBI Fortis Insurance Co. Ltd.?

1. Yes
2. No
4. If Yes, through which distribution channel
1. Individual agents
2. Bancassurance
3. Distributers
4. Management trainees
5. others
5. Which insurance companys policy do you own?
1. LIC
2. ICICI Prudential
3. Bajaj Alliance
4. IDBI Fortis
5. Others

6. What is the level of service you get from current insurance company?
1. Less Satisfactory
2. Satisfactory
3. Neutral
4. Less Dissatisfactory
5. Dissatisfactory

7. Tick Mark the right option:

QUES. STATEMENT
STRONGLY
AGREE
AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE
1
Long term investment plan is
favorable
5 4 3 2 1

Page | 76
2
Investing in the financial products
is beneficial
5 4 3 2 1

Investment in insurance products
is better than the

3 Bank Deposits 5 4 3 2 1
4 Mutual funds 5 4 3 2 1
5 Post office savings 5 4 3 2 1
6 shares and debentures 5 4 3 2 1

Features you consider before
taking the insurance policy

7 Insurance Coverage 5 4 3 2 1
8 High Returns 5 4 3 2 1
9 Low premium amount 5 4 3 2 1
10 Flexible withdrawals 5 4 3 2 1
11 Risk Involved 5 4 3 2 1
12 Services 5 4 3 2 1
13 Credibility 5 4 3 2 1
14 Safety 5 4 3 2 1
15 Reliability 5 4 3 2 1
16 Brand Image 5 4 3 2 1
17 Tax benefit 5 4 3 2 1
18
Customization of products,
services and communication
5 4 3 2 1

Page | 77
19
Higher investment will give higher
returns
5 4 3 2 1

8. How would you plan your investment pattern for the next one year?

1. 0-10%
2. 10-20%
3. 20-30%
4. 30-40%
5. 40-50%
6. Above 50%
Shares and debentures.
Bank deposits
Mutual funds
Insurance products..
Post office savings..

Any Suggestions:


Page | 78
REFERENCES:

1. http://www.google.co.in/

2. http://www.licindia.in/
http://www.licindia.in/periodic_moneyback_003_features.htm

3. http://www.sbilife.co.in/sbilife/content/home
http://www.sbilife.co.in/sbilife/content/9_817

4. http://www.idbifortis.com/
http://www.idbifortis.com/Incomesurance/Why_Incomesurance.aspx?mm=3&lm
1=1

5. www.metlife.co.in
http://www.metlife.co.in/MetLifeIndPlans_Child_MetJuniorMoneyBack.aspx

6. www.hdfcinsurance.com
http://www.hdfcinsurance.com/Products/SavingsPlans/MoneyBack.aspx

7. www.eagonreligare.com

8. http://www.scribd.com

9. www.irda.org

Other Materials:
Marketing Management by Philip Kotler.
Product Brochures.

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