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CONSUMERS
TOWARDS INSURANCE
PRODUCTS…
MARKETING RESEARCH
PROJECT REPORT
LUCKNOW
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PROECT REPORT
ASSIGNED BY:
Prof.YASH SHRIDHAR
SUBMITTED BY:
PINKI RANA
SHAILENDRA PRAKASH
VIJAY AGGARWAL
MANISH MISHRA
ACKNOWLEDGEMENT
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We feel heartfelt and sincere thanks to our faculty
Prof.Yash Shridhar who provided us the opportunity to
carry out our market research project in the insurance
sector.
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.
ABSTRACT
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The project aims to make a detailed study of Unit Linked Insurance Plans
known selected companies and in the process identify the strengths and
a. ICICI PRUDENTIAL
b. BAJAJ ALLIANZ
benefits & other benefits. The various parameters taken into consideration
various ULIPS offered by the major players in the market. The results of the
through a survey in the Lucknow city. The project was done on the basis of a
primary survey. The survey was mainly conducted to study the consumer
Table of contents
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s.no. Topics Pg. no.
1. Introduction.
2. Insurance in India.
4. Research methodology
5. RESEARCH DESIGN
6. SOURCES OF DATA
7. DATA ANALYSIS
8. INTERPRETATION
9. FINDINGS
10. CONCLUSION
INTRODUCTION
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In the commercial arena, the choice of an effective
strategy is perhaps the most important and the toughest decision to take.
The decision to select among the grand strategies and deciding upon which
strategy will best meet the enterprise’s objectives is rendered complex by
multiple considerations. The same is also true with the insurance companies
in India who are constantly revamping their strategies and coming out with
innovative options to stay in the competition. There were days when Life
Insurance Corporation of India (LIC) was the only insurance company
available to people in India and where people synonymized Insurance to LIC.
Also since it was a Public Sector Undertaking (PSU) it has a great support
from people.
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weak social security and pension systems with hardly any old age income
security. As per our findings, insurance in India is primarily used as a means
to improve personal finances and for income tax planning; Indians have a
tendency to invest in properties and gold followed by bank deposits. They
selectively invest in shares also but the percentage is very small (4-5%). This
in itself is an indicator that growth potential for the insurance sector is
immense. It's a business growing at the rate of 15-20% per annum and
presently is of the order of around more than $55 billion. India is a vast
market for life insurance that is directly proportional to the growth in
premiums and an increase in life density. With the entry of private sector
players backed by foreign expertise, Indian insurance market has become
more vibrant.
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a lot of new innovations and implementing new technology try to different
from the lot. Especially if it is a new player in the market the company has to
really work very hard to get into the completion and stay afloat.
INSURANCE IN INDIA
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.
Insurance has a long history in India. Life Insurance in its current form was
introduced in 1818 when Oriental Life Insurance Company began its
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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
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
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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) in 2006 from INR
1,301,540 million ($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%. 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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Total life insurance premium in India is projected to grow Rs 1,230,000
crore by 2010-11.
With the entry of several low-cost airlines, along with fleet expansion
by existing ones and increasing corporate aircraft ownership, the
Indian aviation insurance market is all set to boom in a big way in
coming years.
A booming life insurance market has propelled the Indian life insurance
agents into the ‘top 10 country list’ in terms of membership to the
Million Dollar Round Table (MDRT).
♣ Aviva Life,
♣ Bajaj Allianz,
♣ Bharti AXA,
♣ Birla Sunlife,
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♣ Metlife India and Reliance Life.
♣ SBI Life
♣ ICICI Prudential
♣ TATA AIG
♣ LIC
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RESEARCH METHODOLOGY
* Problem/opportunity Identification
* Problem/opportunity resolution
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* Implementing the selected course of action
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RESEARCH DESIGN
1- Anticipation
2- Specification
TYPE OF RESEARCH:
1. Descriptive research:
2. Analytical Research:
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In this research, the researcher has to use facts or information already
available these to make, and analyze these to make a critical evaluation of
the material.
3. Applied research:
4. Fundamental research:
6. Qualitative Research:
7. Conceptual Research:
8. Empirical Research:
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It is data- based research, coming with conclusions which are Capable of
being verified by the observation and experiment.
9. Diagnostic Research:
5. Data Collection
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SOURCES OF DATA
Primary Data:
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PRIMARY DATA ANALYSIS
options available. The sample size of the survey was 50. Out of these 35
were male and 15 were female. The sample of respondents was carefully
selected covering people in all age groups and with different backgrounds
used factor analysis in SPSS to extract the prominent factors influencing the
they would like to invest have been studied . Also we come to know about
companies and their reasons for it. Here we see that most of the customers
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invest regularly from quite some time but since the last few months their
questionnaires. The sample included respondents from all the age groups out
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The sample of respondents was heterogeneous with people of various
and post office schemes. Out of these Investments has been preferred
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When we talk about making investment decisions around 45%
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The various forms of investments generally preferred by customers
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The main reason for people to invest in the insurance products was
that they had the advantage of both life cover and tax benefits apart
25% preferred investing 2-3 times a year. It was also noticed that
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Around 63% respondents felt that there was an amount of moderate to high
risk involved with ULIPs. 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
various powerful private players which are still finding hard to capture a
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.
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So following are the nine extracted prominent factors that influence the
consumer while making an investment decision:
1. Rate of return
2 .Death benefits and lock in period
3. Present market scenario and tax benefits
4. Past performance of the company
5. Flexible investment options and the risk
involved
6. Amount payable and the after investment
service
7. Opinion of media, friends and
acquaintances
8. Level of knowledge about investment
9 .Commercials associated with investments
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FINDINGS
♣ We have found out that age plays a major role in deciding the
investment patterns of people as generally the younger class of people
tend to take more risk and invest in various instruments more
frequently in a year.
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CONCLUSIONS
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