.

Chakraborty (2007)55 1 in his article traced the challenges faced by the private
players while marketing their products and the measures taken to overcome
them. Lacks of awareness, lack of trust in private insurance companies were
found to be the major challenges. Companies have adopted aggressive
bancassurance strategies, introduced need-based selling instead of push-sale
strategy and introduced innovative products and services to increase their
market share.
Korivi and Venkatesh (2007)56

observed that ULIPs have not caught on

investors interest over the years because of their high measurement expense
ratio. They proposed to reduce if not mitigate this problem by suggesting lifestyle wraps. These are essentially index funds that will have a term insurance
wrapped around it. The product will satisfy cash flow requirements to support
investors life-style needs.
Sheela and Arti (2007)60 3 in their research paper analyzed the awareness level
of the customers regarding life insurance, preference for different products
1 Chakraborty, J. (2007). Private life insurance companies in India - Growing
prospects and challenges. Insurance Chronicle, VII (VIII), 29-39.
2 Korivi, S. R., & Venkatesh, B. S. (2007). Life-style wraps: Cost-efficient alternative to ULIPs.
Paper prepared at 11th APRIA Conference, National Chengchi University, Taipei, Taiwan, July
22-25, 2007.

offered and from which company. A primary survey was conducted wherein
1206 respondents across 12 sectors participated. It was found that only 42%
have purchased a life insurance policy with money back policy being the most
popular. LIC was the most popular company from which policy was acquired.
The primary motive was found to be saving. However, it was observed that
majority of the respondents who are not having a policy were still not interested
in going for one. Thus, there is tremendous scope for creating awareness to
increase the insurance penetration.
Sisodiya and Gupta (2007)61

in their article observed that ULIPs offered

multiple benefits like insurance cover, tax benefits and market linked returns.
As a result of this, they were very popular among investors. However, as the
stock prices tumbled, sale of ULIPs came down drastically. This affected the
investors who mistook ULIPs as a means of making short term gains. To correct
the scenario, IRDA came up with guidelines to address the issue of mis-selling
and ensure that investors stay invested for a long term to maximize the
returns.

3 Sheela, P. & Arti, G. (2007). A study on the awareness of life insurance policies in
Vishakhapatnam. Insurance Chronicle, VII (IX), 61-67.
4 Sisodiya, A. S. & Gupta, A. (2007). ULIPs - Longing for long term. Insurance
Chronicle, VII (I), 76- 78.

Thapliyal, Kansili and Pant (2008)70

made a comparative study of mutual

fund and ULIP. They highlighted the various similarities and differences
between the two and gave illustrative example to compare the charges and
returns.
Chakravarthi (2009)72 6 in his paper focused on the growth of ULIP business in
the country together with some comparisons amongst the insurers operating in
the country also the prospects of ULIP business in the Indian insurance
industry. He analyzed growth of unit linked business with non-linked business
in terms of no. of policies, sum assured, premium, surrenders, etc. he
concluded by stating that if insurers came out with more innovative products,
made proper disclosures, managed their investment more effectively then they
could withstand the current challenges and sustain the growth in life
insurance business in general and ULIP in particular.
Dash, Lalremtluangic, Atwal and Thapar (2009) 73 7 observed that endowment
plans have higher rate of return with mortality incorporated, while for unit5 0 Thapliyal, P. K., Khansili, D. C., & Pant, R. (2008). Mutual Funds versus ULIPs. 9th
Global Conference of Actuaries.
6 Chakravarthi, D. N. (2009). ULIPs in the Indian insurance industry: Status,
challenges and the way forward. 11th Global Conference of Actuaries, Mumbai, India
12-13 February 2009.
7 3 Dash, M., Lalremtluangic,C., Atwal S., & Thapar S. (2009). A Study of Risk-Return
characteristics of life insurance policies. Social Science Research Network.

linked investment plans, the rate of return is higher when it is treated purely as
an investment instrument.
Jham (2009)75

had specified/defined the attributes of local advisors that

customers perceive as being the most fundamental in establishing and

maintaining the crucial long term agent/client relationship that ultimately
helps increase profitability. The study highlighted the importance of taking into
consideration customer needs, developing personal relationship with the client
through information about current policy status, information about new
products/services etc.
Popli and Rao (2009)829 examined whether bank customers are aware of
insurance products being sold through bank networks, factors influencing
customers attitude towards banks and insurance companies and the reasons
for acquiring insurance through bank networks. A primary survey was
conducted and responses collected from 115 participants in Delhi and analyzed
using percentage and factor analysis test. It was found that customer
relationship management should be the focus area for the bancassurance
companies as majority of the customers would prefer to by insurance products
8 Jham, V. (2009). A Study of relationship building skills in the insurance industry.
Journal of Management Research, 1(3), 417-424
9 2 Popli, G. S. & Rao, D. N. (2009). An empirical study of bancassuarance:
Prospects and challenges for selling insurance products through banks in India.

from banks due to existing personal relationship with bank. Major factors
influencing customers attitude towards banks was trust, while for insurance
companies it was insurers expert advice. They concluded by stating that
opportunities exist for banks to cross-sell insurance products.
Johri G (2009)76

10

observed that an insurance companys corporate culture

should be based on 6Cs i.e. Communication, Cooperation, Cheerfulness,

Credibility, Challenge and Continuity
Mandal (2009)

80 11

observed that the aggressive marketing strategies adopted

by the private and foreign players have expanded the market for insurance. As
a result of this even though the share of PSUs is larger than their private
counterparts, the percentage of market share is coming down
Sunitha (2009)87

12

analyzed the satisfaction of women policyholders I

organized and unorganized sectors. Primary reason for purchasing insurance

policy was found to be tax benefit followed by savings and lastly risk cover. It
10 Johri, G. (2009). Customer satisfaction in general insurance industry a step
towards competitiveness. Journal of Risk and Insurance Pravartak, IV(3), 1-9
11 Mandal, A. (2009). Overview of Indian insurance market in post-liberalization era
Growing challenges and opportunities and the fight for FDI. The Journal of
Insurance Institute of India. XXXVI, 60-70.
12 Sunitha, C. (2009). Customer satisfaction in life insurance with special reference
to women policyholders in Thanjavur district. (Doctoral Thesis, Department of
Economics, Bharathidasan University, Tamil Nadu, India). R

was found that endowment and money back policies were preferred by majority
of the respondents. She observed that private players were preferred for ease of
forms and effective advertisement while LIC was better in terms of novel policy
features, courteous agents, low premium, reliability, claims settlement and
grievance redressal. Satisfaction index is high for parameters like premium
amount, policy status notice, courtesy of staff, whilst it was low for claim
settlement, easy of forms, bonus, grievance settlement, etc.
Kabra, Mishra and Dash (2010)88

13

examined the factors which affected

individual investment decision and differences in the perception of investors in

the decision of investing on basis of age and on the basis of gender. The study
was conducted by way of primary data through a structured questionnaire.
Factor and regression analysis were used to analyze the data. The study
concluded that investors age and gender predominantly decided the risk taking
capacity of investors.
Khurana and Goyal (2010)

89

14

examined the ULIP of selected private life

insurers on the basis of policy features, charges and the performance registered
13 Kabra, G., Mishra, P. K., & Dash M. K. (2010). Factors influencing investment
decision of generations in India: An econometric study. Asian Journal of Management
Research, 1(1), 308-326.
14 Khurana, A., & Goyal, K. (2010). Exploration and analysis of structure and growth
performance of selected ULIPs. International Journal of Business Economics and
Management Research, 1(1), 119-128.

by them. The performance was analyzed for balanced fund and returns were
compared for duration of 3 months, 6 months and 1 year. ICICI Prudentials
wealth advantage plan was found to be good in terms of policy features,
whereas Birla Sun Lifes individual life creator and individual life magnifier
emerged as top two ULIP balanced funds return-wise.
Akula and Kanchu (2011)91

15

made a comparative analysis of traditional life

insurance policy and unit linked insurance policy. They also examined the
growth and risk factors associated with ULIP. They concluded by stating that
ULIPs are preferred by customers for long term investment and generating good
returns
Chandra and Mahendar (2011)94

16

analyzed the impact of crisis arising out of

recession on life insurance markets performance in India. They identified the

reasons for the same before and after the crisis. They examined the challenges
of marketing in the post crisis era and provided competitive marketing
strategies to surmount it.

15 Akula, R., & Kanchu, T. (2011). Growth of ULIP policies in life insurance sector - A
comparative study of traditional and ULIP policies. Indian Journal of Commerce &
Management Studies, II(2), 190- 199
16 Chandra, S., & Mahendar, G. (2011). Impact of recession on life insurance sector
need for competitive strategies in the post crisis era. International Journal for
Business Strategy & Management, 1(1), 1-11.

Malick, Selvam and Nazar (2011)99 h17ighlighted the robust growth and
potential of life insurance industry. A structured questionnaire was prepared to
find customers awareness on private life insurance players by adopting
convenience sampling. The awareness level is high and through pearson chisquare test it was found that there is significant relationship between the
occupation and awareness of private life insurance.
Chaudhary and Kiran (2011)

95

18

examined the growth of life insurance

industry over a period of five years by comparing the number of offices, agents,
premium and other variables like lapse ratio and settlement of death claims.
Kumar, Murali and Bharath (2011)98 19 undertook a survey to understand the
customers perception about ULIP and the factors in favor of acquisition of
ULIP. 25 factors were identified and a factor analysis test revealed that factors
like Tax benefits are high, Transmission, Switching of Options within the fund,
Risk coverage, Life Coverage plays a prominent role in bringing customer
17 9 Malick, T. V., Selvam, V., & Nazar, N. A. (2011). Robust awareness on Indian
insurance industry in tier three cities. International Journal of Research in
Commerce, IT & Management, 1(5), 101-104.
18 Chaudhary, S., & Kiran, P. (2011). Life insurance industry in India - Current
scenario. International Journal of Management and Business Studies, 1(3), 146-150
19 Kumar, S. A., Murali, R., & Bharath, S. (2011). An empirical study-Consumers
preference towards unit linked investment plan (ULIP). SRM Management Digest, 9,
123-133.

preference towards ULIP. Application of chi-square test showed that there is

significant association between age group and rate of return, age group and tax
benefits, qualification and compulsory investment, qualification and gaining
and enriching investment knowledge and occupation and tax benefits.
Malick, Selvam and Nazar (2011)99

20

highlighted the robust growth and

potential of life insurance industry. A structured questionnaire was prepared to

find customers awareness on private life insurance players by adopting
convenience sampling. The awareness level is high and through pearson chisquare test it was found that there is significant relationship between the
occupation and awareness of private life insurance.
Rao (2011)100

21

studies the rural life insurance market. The reforms in life

insurance sector and its opening up to private players saw a huge rise in
premium income. The no. of insurance offices, agency force has also showed an

20 Malick, T. V., Selvam, V., & Nazar, N. A. (2011). Robust awareness on Indian
insurance industry in tier three cities. International Journal of Research in
Commerce, IT & Management, 1(5), 101-104.
21 Rao, K. N. (2011). Study of rural insurance market in India with special reference to life
insurance. (Doctoral Thesis, Faculty of Management Science, Jawaharlal Nehru Technical
University, Hyderabad, India)

increase of more than 200%. However, it was observed that growth was more
urban centric and rural penetration hardly increased by 5%.
Venugopal (2012)12822 in his case study on Enhancing productivity in life
insurance observed that insurance companies face a formidable task in
achieving a reasonable level of productivity. This is possible by hiring
competent agents to sell the products. Such competent agency force can be
built after a careful screening process and a focused training programme.
Those who are trained and hired need to be retained and the retention strategy
that could be adopted should include among others suitable rewards system.
Achievement of this will lead to better acceptance of insurance product in the
market.

22