1.

1 INTRODUCTION

Customer is the king and it is the customer who decides

what a business is and therefore a sound marketing programme
starts with a careful analysis of habits, attitudes, motives and
needs of the customers.

Definition of Buying Behavior

Buying Behavior is the decision processes and acts of people

involved in buying and using products.

Customer buying behavior:

Customer buying behavior refers to the buying behavior of

the ultimate end user i.e. the customer. A firm needs to analyse
the buying behavior for :

 Buyers reactions to a firms marketing strategy has a great

impact on the firms success.
 The marketing concept stresses that a firm should create a
marketing mix that satisfies a customer and therefore need
to analyze the what, where, when and how the customers
buy.
 Marketers can better predict how customers will respond to
marketing strategies.

How Consumer Buy:

i. Need/Want/Desire is recognized:
In the first step the customer has determined that for
some reason he/she is not satisfied(i.e. customer‟s perceived

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 actual condition) and wants to improve his/her situation.
External factors can also trigger the customer‟s needs.
Marketers are particularly good at this through advertising,
in-store displays etc.
ii. Search for information:
Assuming that customers are motivated to satisfy
his/her need they will undertake a search for information
on possible solutions. The sources may be simple like the
past experience or the customer may expend considerable
effort to locate information from outside sources(internet,
etc.). How much effort the customer directs towards
searching depends on factors such as:
 The importance of satisfying the need
 Familiarity with available sources
 The amount of time available for search.
iii. Evaluate options:
Customers search efforts may result in set of options
from which a choice can be made. It should be noted that
there may be two levels to this stage. At level one the
customer may create a set of possible solutions to their
solution while at level two the customer may be evaluating
particular products within each solution.
iv. Purchase:
In many cases the solution chose by the customer is
the same as the product whose evaluation is highest. The
intended purchase may be altered at the time of purchase
for many reasons such as the product is out of stock, a

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 competitor offering incentive at the time of purchase, the
customer lacking in necessary of funds.
v. After purchase evaluation:
Once the customer has made the purchase they are
faced with the evaluation of the decision. If the product
performs below the customer‟s expectation then he/she will
re-evaluate the satisfaction with the decision, which at its
extreme might result in the customer returning the product
while in less extreme situations the customer will retain the
product but may take a negative view of the product.

1.2 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:

 To determine reasons behind opting for an insurance.

 To determine customers buying behaviour towards private
insurance companies and their expectation form private
insurance companies.
 To determine the feedback on services provided by any
other insurance agent.
 To study the types of benefits provided by insurance
services.

SECONDARY OBJECTIVES:

 To know whether the service offered by the company has

satisfied the needs of all groups of people.
 To find out the benefits preferred by the customers.
 To know about their views about the company and to
assess to their views.

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1.3 SCOPE OF THE STUDY:

A big boom has been witnessed in Insurance Industry in

recent times. A large number of new players have entered the
market and are trying to gain market share in this rapidly
improving market. The study deals with HDFC Standard Life in
focus and the various segments that it caters to. The study then
goes on to evaluate and analyze the findings so as to present a
clear picture of trends in the Insurance sector.

1.4 LIMITATIONS OF THE STUDY:

1. The research is confined to a certain parts of Coimbatore

and does not necessarily show a pattern applicable to all
parts of the Country.
2. Some respondents were reluctant to divulge personal
information, which can affect the validity of all responses.
3. In a rapidly changing industry, analysis on one day or in
one segment can change very quickly. The environmental
changes are vital to be considered in order to assimilate the
findings.
4. The data collected from the customers may be biased.

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 INDUSTRY & COMPANY PROFILE

THE HISTORY OF INDIAN INSURANCE INDUSTRY

 LIFE INSURANCE :
In 1818 the British established the first insurance
company in India in Calcutta, the Oriental Life Insurance
Company. First attempts at regulation of the industry were
made with the introduction of the Indian Life Assurance
Companies Act in 1912. A number of amendments to this Act
were made until the Insurance Act was drawn up in 1938.
Noteworthy features in the Act were the power given to the
Government to collect statistical information about the insured
and the high level of protection the Act gave to the public
through regulation and control. When the Act was changed in
1950, this meant far reaching changes in the industry. The
extra requirements included a statutory requirement of a
certain level of equity capital, a ceiling on share holdings in
such companies to prevent dominant control (to protect the
public from any adversarial policies from one single party),
stricter control on investments and, generally, much tighter
control. In 1956, the market contained 154 Indian and 16
foreign life insurance companies. Business was heavily
concentrated in urban areas and targeted the higher echelons
of society. “Unethical practices adopted by some of the players
against the interests of the consumers” then led the Indian
government to nationalize the industry. In September 1956,
nationalization was completed, merging all these companies
into the socalled Life Insurance Corporation (LIC). It was felt

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 that “nationalization has lent the industry fairness, solidity,
growth and reach.”

Some of the important milestones in the life insurance

business in India are:

 1912: The Indian Life Assurance Companies Act enacted as

the first statute to regulate the life insurance business.
 1928: The Indian Insurance Companies Act enacted to
enable the government to collect statistical information
about both life and non-life insurance businesses.
 1938: Earlier legislation consolidated and amended to by
the Insurance Act with the objective of protecting the
interests of the insuring public.
 1956: The market contained 154 Indian and 16 foreign life
insurance companies.
 GENERAL INSURANCE
The General Insurance industry in India dates back to
the Industrial Revolution and the subsequent increase in trade
across the oceans in the 17th century. As for Life Insurance,
the British brought General Insurance to India, and a similar
path was followed in the development of this industry. A
number of private companies were in existence for years and
years until, in 1971, the Indian Government decided that the
public interest would be served by nationalizing the industry,
merging all the 107 companies into four companies, depending
on the sort of business transacted (Marine, Fire,
Miscellaneous). These were the National Insurance Company
Ltd., the Oriental Insurance Company Ltd., the New India

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 Assurance Company Ltd., and the United India Insurance
Company Ltd. located in Calcutta, New Delhi, Bombay and
Madras respectively. The General Insurance Corporation (GIC)
was set up in 1972 as a „holding‟ company, having these four
companies as its subsidiaries.

Some of the important milestones in the general insurance

business in India are:

 1907: The Indian Mercantile Insurance Ltd. set up, the first
company to transact all classes of general insurance
business.
 1957: General Insurance Council, a wing of the Insurance
Association of India, frames a code of conduct for ensuring
fair conduct and sound business practices.
 1968: The Insurance Act amended to regulate investments
and set minimum solvency margins and the Tariff Advisory
Committee set up.
 1972: The General Insurance Business (Nationalization) Act,
1972 nationalize the general insurance business in India
with effect from 1st January 1973. 107 insurers
amalgamated and grouped into four companies viz. the
National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd. and
the United India Insurance Company Ltd. GIC incorporated
as a company.

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 MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

 LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) was established on
1 September 1956 to spread the message of life insurance in
the country and mobilise people‟s savings for nation building
activities. LIC with its central office in Mumbai and seven
zonal offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad,
Kanpur and Bhopal, operates through 100 divisional offices in
important cities and 2,048 branch offices. LIC has 5.59 lakh
active agents spread over the country.
The Corporation also transacts business abroad and has
offices in Fiji, Mauritius and United Kingdom. LIC is associated
with joint ventures abroad in the field of insurance, namely,
Ken-India Assurance Company Limited, Nairobi; United
Oriental Assurance Company Limited, Kuala Lumpur; and Life
Insurance Corporation (International), E.C. Bahrain. It has
also entered into an agreement with the Sun Life (UK) for
marketing unit linked life insurance and pension policies in
U.K.
In 1995-96, LIC had a total income from premium and
investments of $ 5 Billion while GIC recorded a net premium of
$ 1.3 Billion. During the last 15 years, LIC's income grew at a
healthy average of 10 per cent as against the industry's 6.7 per
cent growth in the rest of Asia (3.4 per cent in Europe, 1.4 per
cent in the US).
LIC has even provided insurance cover to five million people
living below the poverty line, with 50 per cent subsidy in the
premium rates. LIC's claims settlement ratio at 95 per cent
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 and GIC's at 74 per cent are higher than that of global average
of 40 per cent. Compounded annual growth rate for Life
insurance business has been 19.22 per cent per annum.
 General Insurance Corporation of India (GIC)
The general insurance industry in India was nationalized
and a government company known as General Insurance
Corporation of India (GIC) was formed by the Central
Government in November 1972. With effect from 1 January
1973 the erstwhile 107 Indian and foreign insurers which were
operating in the country prior to nationalization, were grouped
into four operating companies, namely,
 National Insurance Company Limited;
 New India Assurance Company Limited;
 Oriental Insurance Company Limited; and
 United India Insurance Company Limited.

(However, with effect from Dec'2000, these subsidiaries have

been de-linked from the parent company and made as
independent insurance companies). All the above four
subsidiaries of GIC operate all over the country competing with
one another and underwriting various classes of general
insurance business except for aviation insurance of national
airlines and crop insurance which is handled by the GIC.

Besides the domestic market, the industry is presently

operating in 17 countries directly through branches or agencies
and in 14 countries through subsidiary and associate companies.

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IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING
HAVE BEEN PERMITTED TO ENTER INTO INSURANCE
BUSINESS:-

The introduction of private players in the industry has

added to the colors in the dull industry. The initiatives taken by
the private players are very competitive and have given immense
competition to the on time monopoly of the market LIC. Since the
advent of the private players in the market the industry has seen
new and innovative steps taken by the players in this sector. The
new players have improved the service quality of the insurance.
As a result LIC down the years have seen the declining phase in
its career. The market share was distributed among the private
players. Though LIC still holds the 75% of the insurance sector
but the upcoming natures of these private players are enough to
give more competition to LIC in the near future. LIC market share
has decreased from 95% (2002-03) to 82 %( 2004-05).

1. HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of
India‟s leading private life insurance companies, which offers a
range of individual and group insurance solutions. It is a joint
venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), India‟s leading housing finance
institution and The Standard Life Assurance Company, a
leading provider of financial services from the United Kingdom.
Their cumulative premium income, including the first year
premiums and renewal premiums is Rs. 672.3 for the financial
year, Apr-Nov 2005. They have managed to cover over

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 11,00,000 individuals out of which over 3,40,000 lives have
been covered through our group business tie-ups.
2. Max New York Life Insurance Co. Ltd.
Max New York Life Insurance Company Limited is a joint
venture that brings together two large forces - Max India
Limited, a multi-business corporate, together with New York
Life International, a global expert in life insurance. With their
various Products and Riders, there are more than 400 product
combinations to choose from. They have a national presence
with a network of 57 offices in 37 cities across India.
3. ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company is a joint venture
between ICICI Bank, a premier financial powerhouse and
prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was
amongst the first private sector insurance companies to begin
operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). The
company has a network of about 56,000 advisors; as well as
7banc assurance and 150 corporate agent tie-ups.
4. Om Kotak Mahindra Life Insurance Co. Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint
venture between Kotak Mahindra Bank Ltd. (KMBL), and Old
Mutual plc.
5. Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance Company is a joint venture
between Aditya Birla Group and Sun Life financial Services of
Canada.

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  Tata AIG Life Insurance Company Ltd.
 SBI Life Insurance Company Limited
 ING Vysya Life Insurance Company Private Limited
 Bajaj Allianz Life Insurance Company Ltd.
 MetLife India Insurance Company Pvt. Ltd.
 AMP SANMAR Assurance Company Ltd.
 Dabur CGU Life Insurance Company Pvt. Ltd.
6. Royal Sundaram Alliance Insurance Company Limited
The joint venture bringing together Royal & Sun Alliance
Insurance and Sundaram Finance Limited started its
operations from March 2001. The company is Head Quartered
at Chennai, and has two Regional Offices, one at Mumbai and
another one at New Delhi.
7. Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited is a joint
venture between Bajaj Auto Limited and Allianz AG of
Germany. Both enjoy a reputation of expertise, stability and
strength.
Bajaj Allianz General Insurance received the Insurance
Regulatory and Development Authority (IRDA) certificate of
Registration (R3) on May 2nd, 2001 to conduct General
Insurance business (including Health Insurance business) in
India. The Company has an authorized and paid up capital of
Rs 110 crores. Bajaj Auto holds 74% and Allianz, AG, holds
the remaining 26% Germany.
8. ICICI Lombard General Insurance Company Limited
ICICI Lombard General Insurance Company Limited is a
joint venture between ICICI Bank Limited and the US-based $

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 26 billion Fairfax Financial Holdings Limited. ICICI Bank is
India's second largest bank, while Fairfax Financial Holdings is
a diversified financial corporate engaged in general insurance,
reinsurance, insurance claims management and investment
management.
Lombard Canada Ltd, a group company of Fairfax Financial
Holdings Limited, is one of Canada's oldest property and
casualty insurers. ICICI Lombard General Insurance Company
received regulatory approvals to commence general insurance
business in August 2001.
9. Cholamandalam General Insurance Company Ltd.
Cholamandalam MS General Insurance Company Limited
(Chola-MS) is a joint venture of the Murugappa Group &
Mitsui Sumitomo. Chola-MS commenced operations in October
2002 and has issued more than 1.4 lakh policies in its first
calendar year of operations. The company has a pan-Indian
presence with offices in Chennai, Hyderabad, Bangalore,
Kochi, Coimbatore, Mumbai, Pune, Indore, Ahmedabad, Delhi,
Chandigarh, and Kolkata.
10. TATA AIG General Insurance Company Ltd.
Tata AIG General Insurance Company Ltd. is a joint venture
company, formed from the Tata Group and American
International Group, Inc. (AIG). Tata AIG combines the
strength and integrity of the Tata Group with AIG's
international expertise and financial strength. The Tata Group
holds 74 per cent stake in the two insurance ventures while
AIG holds the balance 26 per cent stake.

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 Tata AIG General Insurance Company, which started its
operations in India on January 22, 2001, offers the complete
range of insurance for automobile, home, personal accident,
travel, energy, marine, property and casualty, as well as
several specialized financial lines.
11. Reliance General Insurance Company Limited.
12. IFFCO Tokio General Insurance Co. Ltd
13. Export Credit Guarantee Corporation Ltd.
14. HDFC-Chubb General Insurance Co. Ltd.

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 MARKETING OF INSURANCE IN INDIA

Insurance is in a manner of speaking the last frontier in the

financial sector to open. It is also a sector, which leads to benefits
across the full spectrum, from the individual who now have wider
choices, to the economy, which see increased savings, to the
infrastructure sector, which can look forward to long term
funding being available. In an under-insured economy, newer
channels of distribution have to be utilized to intensify the reach
of insurance both in urban and rural markets. This will create
huge employment opportunities not only within insurance
companies but also as agents and consultants of insurance
companies.

Marketing Mix Policies

Different companies can choose to position themselves

differently and hence the Marketing Mix is different. However,
there are certain common characteristics that one can cull out
from the possible strategies that companies adopt.

 Product:
The development of flexible products to suit individual
requirements is what will differentiate the winners from the
also-rans. The key to success is in providing insurance
solutions, not standardized insurance products. The concept
of riders/optional benefits has already been a huge innovation
brought about by the new players, which has led to
customization of products for individual needs. However,

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 companies may differentiate themselves on the basis of
product segments that they choose to focus on and excel in.

 Place:
Different companies may however choose different channels
and different geographies to focus on. The channel options are
- tied agency force, corporate agents and brokers and this is
an area where different companies will make different choices.
Many companies like HDFC Standard Life are focusing on all
channels whereas companies like Max New York Life are
focusing on the tied agency force only. Customer interface will
be a key challenge for life insurance companies and includes
every that interaction that the customer has with the
company, such as sales, new business underwriting, policy
servicing, premium payments, claim processing and so on.
Technology can play a crucial role in delivering the highest
standards of service set by the company and it will be
imperative for any serious player to excel in all of these.
 Price:
Price is a relevant differentiator only in two segments - pure
term insurance and in pure annuities. Here too, service
delivery and financial strength will need to be present at a
minimum acceptable level for price to be a relevant
differentiator. In case of savings oriented products, long-term
returns generated are more relevant than just the price of the
product. A focus on generating good investment performance
and keeping a tight control on costs help in generating good

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 long-term maturity value for customers. Norms have been laid
down on all of these by IRDA and adhering to these while
delivering good returns will be a challenge.
 Promotion and Advertising:
The level of demand is latent and will have to be activated
considerably. The market needs to be developed. Greater
awareness of insurance and the need to have it as a protection
tool rather than as a tax planning measure needs to be
appreciated by the Indian people. Various communication
tools including advertising, direct marketing and road shows
contribute to all this and different companies take different
approaches on these.

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INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

The Insurance Regulatory and Development Authority

(IRDA) is a national agency of the Government of India, based in
Hyderabad. In 1999, the Insurance Regulatory and Development
Authority (IRDA) was constituted as an autonomous body to
regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April, 2000.

The key objectives of the IRDA include promotion of

competition so as to enhance customersatisfaction through
increased consumer choice and lower premiums, while ensuring
the financial security of the insurance market. The IRDA opened
up the market in August 2000 with the invitation for application
for registrations. Foreign companies were allowed ownership of
up to 26%. The Authority has the power to frame regulations
under Section 114A of the Insurance Act, 1938 and has from
2000 onwards framed various regulations ranging from
registration of companies for carrying on insurance business to
protection of policyholders‟ interests.

Role of IRDA:

 Protecting the interests of policyholders.

 Establishing guidelines for the operations of insurers, and
brokers.
 Specifying the code of conduct, qualifications, and training
for insurance intermediaries and agents.
 Promoting efficiency in the conduct of insurance business.

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 Regulating the investment of funds by insurance
companies.
 Specifying the percentage of business to be written by
insurers in rural sectors.

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 COMPANY PROFILE

ABOUT HDFC STANDARD LIFE INSURANCE

HDFC Standard Life Insurance Company Ltd. is one of

India's leading private Insurance companies, which offers a range
of individual and group insurance Solutions. It is a joint venture
between Housing Development Finance Corporation Limited
(HDFC Ltd.), India's leading housing finance institution and a
Group Company of the Standard Life, UK. HDFC as on December
31, 2007 holds 72.38 Percent of equity in the joint venture.

HDFC STANDARD LIFE INSURANCE PARENTAGE

HDFC Limited.

 HDFC is India leading housing finance institution and has

helped build more than 23, 00,000 houses since its
incorporation in 1977.
 In Financial Year 2003-04 its assets under management
crossed Rs. 36,000 Cr.
 As at March 31, 2004, outstanding deposits stood at Rs.
7,840 crores. The depositor base now stands at around 1
million depositors.
 Rated AAA by CRISIL and ICRA for the 10th consecutive year
 Stable and experienced management
 High service standards
 Awarded The Economic Times Corporate Citizen of the year
Award for its long-standing commitment to community
development.

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  Presented the Dream Home award for the best housing
finance Provider in 2004 at the third Annual Outlook Money
Awards.

Standard Life Group (Standard Life plc and its subsidiaries)

 Standard Life Group (Standard Life plc and its subsidiaries)

 The Standard Life group has been looking after the financial
needs of customers for over 180 years
 It currently has a customer base of around 7 million people
who rely on the company for their insurance, pension,
investment, banking and health-care needs
 Its investment manager currently administers £125 billion
in assets
 It is a leading pensions provider in the UK, and is rated by
Standard & Poor's as 'strong' with a rating of A+ and as 'good'
with a rating of A1 by Moody's
 Standard Life was awarded the 'Best Pension Provider' in
2004, 2005 and 2006 at the Money Marketing Awards, and it
was voted a 5 star life and pensions provider at the Financial
Adviser Service Awards for the last 10 years running. The '5
Star‟ accolade has also been awarded to Standard Life
Investments for the last 10 years, and to Standard Life Bank
since its inception in 1998. Standard Life Bank was awarded
the 'Best Flexible Mortgage Lender' at the Mortgage Magazine
Awards in 2006.

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 KEY STRENGTHS

1) FINANCIAL EXPERTISE
As a joint venture of financial services groups, hdfc
standard life has the financial expertise required to manage
your long-term investments safely and efficiently.

2) RANGE OF SOLUTIONS
We have a range of individual and group solutions, which
can be easily customised to specific needs. Our group
solutions have been designed to offer you complete flexibility
combined with a low charging structure.

3) TRACK RECORD SO FAR

Our gross premium income, for the year ending March 31,
2008 stood at Rs.4,859 crores and new business premium
income stood at Rs. 2,685 crores. The company has covered
over 9,59,000 lives year ending March 31, 2008.

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 SWOT ANALYSIS OF HDFC-SLIC

STRENGHTS:

 Domestic image of HDFC supported by Standard Life‟s

international image is the strength of the company.
 Strong and well spread network og qualified intermediaries
and sales person.
 The company provides customer service of the highest
order.
 Huge basket of product range which are suitable for all age
and income groups.
 Large pool of technically skilled manpower with in depth
knowledge and understanding of the market.
 The company also provides innovative products to cater to
different needs of different customers.

WEAKNESS:

 Heavy management expenses and administrative costs.

 Low customer confidence on private players.
 Vertical hierarchical reporting structure with many
designations and cadres leading to power politics at all
levels without any exception.
 Poor retention percentage of tied up agents.

OPPORTUNITIES:

 Insurable population: According to IRDA only 10% of people

are insured. This suggests that more than 300m people,
with the potential to buy insurance, remain uninsured.

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  There will be inflow of managerial and financial expertise
from the world‟s leading insurance markets. Further the
burden of educating consumers will also be shared among
many players.
 International companies will help in building world class
expertise in local market by introducing the best global
practices.

THREATS:

 Other private insurance companies also vying for the same

uninsured population.
 Competition from public sector insurance companies like
LIC, National Insurance Company Limited, Oriental
Insurance Limited, New India Assurance Company Limited
and United India Insurance Company Limited. People trust
and go to them more.
 Poaching of customer base by other companies.
 Most people don‟t understand the need or are not willing to
take insurance policies in general.

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 CORPORATE OBJECTIVES

Our Vision:- 'The most successful and admired life insurance

company, which means that we are the most trusted company,
the easiest to deal with, offer the best value for money, and set
the standards in the industry'. 'The most obvious choice for all'.

Our Values :- Values that we observe while we work

 Integrity
 Innovation

 Customer centric
 People Care One for all and all for ones
 Teamwork
 Joy and Simplicity

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 PRODUCT PROFILE

Individual product:

We at HDFC Standard Life realize that not everyone has the

same kind of needs. Keeping this in mind, we have a varied range
of Products that you can choose from to suit all your needs.
These will help secure your future as well as the future of your
family.

Protection Plans

You can protect your family against the loss of your income
or the burden of a loan in the event of your unfortunate demise,
disability or sickness. These plans offer valuable peace of mind at
a small price.

 Term Assurance Plan

 Loan Cover Term
 Assurance Plan

Investment Plans

Our investment products are well suited to meet your long-

term needs.

 Single Premium Whole Life Plan

Pension Plans

Our Pension Plans help you secure your financial

independence even after retirement.

 Personal Pension Plan

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  Unit Linked Pension Plan
 Unit Linked Pension Plus

Our Immediate Annuity plan will aid you in receiving income

post retirement and securing you financial independence

Savings Plans

Our Savings Plans offer you flexible options to build savings

for your future needs such as buying a dream home or fulfilling
your children‟s immediate and future needs. Our Savings range
includes

 Endowment Assurance Plan

 Unit Linked Endowment
 Unit Linked Endowment Plus
 Money Back Plan
 Children's Plan
 Unit Linked Young star
 Unit Linked Young star Plus

Health Plans

Our health plans provides you with timely support in case

of any health related emergencies and helps you and your family
to remain financially independent in difficult times

 Critical care plan

 Surqi care plan

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Group Products:

One-stop shop for employee-benefit solutions

HDFC Standard Life has the most comprehensive list of

products for progressive employers who wish to provide the best
and most innovative employee benefit solutions to their
employees. We offer different products for different needs of
employers ranging from term insurance plans for pure protection
to voluntary plans such as superannuation and leave
encashment.

We now offer the following group products to our esteemed

corporate clients

• Group Term Insurance

• Group Variable Term Insurance
• Group Unit-Linked Plan

Social Product

Development Insurance plan is an insurance plan which

provides life cover to members of a Development Agency for a
term of one year. On the death of any member of the group
insured during the year of cover, a lump sum is paid to that
member‟s beneficiaries to help meet some of the immediate
financial needs following their loss.

Other product:
• Rural products
• Tax benefits

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Other service:

• Customized products
• All the information about the companies and its products are
available in company‟s web site.
• In case a customer wants to pay their premiums through
cheque then they can draw them in favors of the insurance
company in which he has the policy.
• Market information: customers can check their policy status
through online.
• Clime settlement: clime settlement in private life insurance
company is faster than the other insurance company.

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3.1 RESEARCH DESIGN OF THE STUDY:

Marketing research can be defined as the systematic design,

collection, analysis, and reporting of the data and finding
relevant to a specific marketing situation facing the company.

Research design is the basic plan which guides the

researchers in the collection and analysis of data required for
practicing the research product. In fact the research design is the
conceptual structure with which research is conducted. It consist
the blue print for the collection, measurement and analysis of the
data that was followed completing the study to ensure that study
is relevant to the problem and will follow the predetermined and
set data.

The main data feature of “Research Design” is that it

specifies population to be studied. The main them of the chapter
is to know the source of the data the researcher has collected.
Data are raw facts of observation, typically about physical
phenomenon.

Descriptive research :

The research design selected for this research is descriptive

research design.

3.2 METHODOLOGY:

Collection of the data for the study can be drawn from

following methods for study.

Page | 30
Sources of the data:

After determining the objectives of study and research

design, the next important step is data is step collection method.
The information has to be collected from the retailers. During the
process of the study the data is collected from the target segment
that is customers, dealers and distributors with help of a
structured well designed questionnaire.

Data is collected from

 Primary data

 Secondary data

Primary data:- It was collected through questionnaire prepared

contains relevant questions that are both close ended and
opened. Individual and group interviews also under taken with
difference consumers, I have collected mainly the Primary Data
for my study by utilizing the questionnaire and interview
methods.

Secondary data:- These data are collected from published

sources such as Magazines, NEWS papers, several books, and
also from the help of web site [Link].

Sampling plan of the study:

Sample size: - Sample size refers to number of elements to be

included in the study several qualitative factors should also be
taken into consideration when determining the sample size.
These include the nature of research, number of variable, and

Page | 31
nature of analysis, sample size used in similar studies incidence
rates, completion rates, and resources constraints. During the
process of the study, survey has been conducted on 100
respondents.

Sampling method: - The researcher had choice between

probability and non probability sampling methods. In this study
a simple non probability method namely convenience sampling
was adopted.

NON PROBABILITY METHOD – CONVENIENCE SAMPLING

METHOD

Page | 32
 ANALYSIS & INTERPRETATION

TABLE 4.1: AGE GROUP OF RESPONDENTS

Age Group No. of respondent Percentage

Below 25 31 31%

25 to 35 39 39%

35 to 45 25 25%

45 and above 5 5%

Total 100 100%

Sources: primary data collected through questionnaire

FIG-4.1: AGE GROUP OF RESPONDENTS

45

40

35 No. of
respondents
2
0
30

1
5
25

below 25 to 35 to 45 and
1 25 35 45 above
0

INTERPRETATION: The above figure reveals that most of the

5
people 32% are working in government and 29%are Business
sector.
0

Page | 33
Table 4.2: OCCUPATION OF THE RESPONDENTS

Working sector No. of respondent Percentage

Govt. 32 32%

IT 16 16%

Education 6 6%

Finance 13 13%

Business 29 29%

Other 4 4%

Total 100 100%

Sources: primary data collected through questionnaire

FIG - 4.2: OCCUPATION OF THE RESPONDENTS

35

30

25

20

no. of
15 respondents

10

0
Govt IT Education Finance Other
Business

INTERPRETATION: The above figure reveals that most of the

people 32% are working in government and 29%are Business
sector.

Page | 34
Table 4.3:RESPONDENTS AWARENESS OF INVESTMENT
OPTION.

Awareness No. of respondent Percentage

Yes 33 33%

No 14 14%

Have some 53 53%

knowledge

Total 100 100%

Sources: primary data collected through questionnaire

FIG-4.3:RESPONDENTS AWARENESS OF INVESTMENT

OPTION

6
0

5
0

4
0

3
0 [Link]
Respondants
2
0

1
0

0
Ye N Have some
s o Knowledge

INTERPRETATION:- This graph shows that only 33% of people

are aware of the investment option and 53% of people have some
knowledge about it. But 14% of people are not aware of the
investment option available to them.

Page | 35
Table 4.4: RESPONDENTS HAVING AN INSURANCE
POLICY

Response No .of respondents percentage

Yes 53 53%

No 47 47%

Total 100 100%

Sources: primary data collected through questionnaire

FIG - 4.4:RESPONDENTS HAVING AN INSURANCE POLICY

INTERPRETATION:- This graph shows that 47% of people not

having an insurance policy and 53% of people having an

Page | 36
insurance policy.

Table 4.5: RESPONDENT INTEREST OF INVESTING

OPTIONS

Need for investment Respondents percentage

Retirement 28 28%

Tax saving 21 21%

Earnings 33 33%

Liquidity 18 18%

Total 100 100%

Sources: primary data collected through questionnaire

FIG - 4.5: RESPONDENT INTEREST OF INVESTING

OPTIONS

35

30

25

20
[Link]
15
respondentas
10

0
Retireme Tax Earning Liquidit
nt Saving s y

INTERPRETATION:- The figure shows 33% of people have

insurance for future earnings and 28% are investing for
Retirement.

Page | 37
Table 4.6: TERM OF INVESTMENT PREFERRED

Investment Method No .of respondents percentage

Short term 32 32%

Medium Term 22 22%

Long Term 46 46%

Total 100 100%

Sources: primary data collected through questionnaire

FIG - 4.6: TERM OF INVESTMENT PREFERRED

50

45

40

No. of
20 respondants
35

15
30

10
Short MediumTer Long
25 Term m Term

INTERPRETATION:
5

The above figure shows 46% of respondents prefer long term

0
investment where as 32% prefer medium term and only 22%
prefer short term

Page | 38
 Table 4.7: PERCEPTION ABOUT INSURANCE

NO. OF
RESPONSE SHARE (%)
RESPONDENTS

A saving tool 32 32%

A tax saving device 29 29%

tool to O protect your family 39 39%

Sources: primary data collected through questionnaire

FIG - 4.7: PERCEPTION ABOUT INSURANCE

INTERPRETATION:- The above figure shows that 32% of the

respondents have perception of Insurance being a saving tool and
29% of the respondents have perception of Insurance being a tax

Page | 39
 saving [Link] 39% of the respondents are with the view that
Insurance is a tool to protect your family.

Table 4.8: KIND OF BUYING PROCESS PREFERRED

NO. OF
BUYING PROCESS SHARE (%)
RESPONDENTS

Customer approached
Insurance 44 44%
company/Agent

Company/agent approached
56 56%
customer

Total 100 100%

Sources: primary data collected through questionnaire

FIG - 4.8: KIND OF BUYING PROCESS PREFERRED

Page | 40
INTERPRETATION:-

 44% of the respondents approached the Insurance Company /

Agent.

 Whereas, 56% of the respondents were approached by the

Company /Agent.

Table 4.9: WHAT PEOPLE LOOK FOR IN INSURANCE

COMPANY?

NO. OF
RESPONSE SHARE (%)
RESPONDENTS
A trusted name 29 29%
Friendly service &
25 25%
responsiveness
Good plans 29 29%
Accessibility 17 17%
Sources: primary data collected through questionnaire

FIG - 4.9: WHAT PEOPLE LOOK FOR IN INSURANCE

COMPANY?

Page | 41
 INTERPRETATION:-

 29% customers look for a Trusted name in a company for

insurance.

 29% customers look for a good plan in a company for insurance.

 Friendly service & responsiveness and Accessibility are also

important factors looked by customers in a company.

Table 4.10: FEATURES MADE YOU TO INVEST IN

HDFC STANDARD LIFE INSURANCE

FEATURE [Link] SHARE (%)

RESPONDENTS

Money Back 15 15
Guarantee

Larger Risk Coverance 37 37

Easy Access to Agents 7 7

Low Premium 30 30

Company‟s Reputation 11 11

TOTAL 100 100

Sources: primary data collected through questionnaire

Page | 42
FIG - 4.10: FEATURES MADE YOU TO INVEST IN HDFC
STANDARD LIFE INSURANCE

INTERPRETATION:- Majority of the respondent (37%) found

Larger risk coverance as the most attracted feature of the all.

Table 4.11: RESPONDENT PERCEPTION TOWARDS THE HDFC

STANDARD LIFE INSURANCE COMPANY

Opinion No .of respondents Percentage

Average 29 29%

Aggressive 21 21%

Excellent 14 14%

Professional 36 36%

Total 100 100%

Sources: primary data collected through questionnaire

Page | 43
FIG - 4.11: RESPONDENT PERCEPTION TOWARDS THE
HDFC STANDARD LIFE INSURANCE COMPANY

40

35

30

25

20
No of
respondents
15

10

0
Averag Aggressiv Excellen profession
e e t al

INTERPRETATION:-The above graph shows that 36% of

Respondents believes the operations of the company to be
professional and 29% believe it is Average.

Table 4.12: SATISFACTION OF THE RESPONDENTS

WITH RESPECT TO POLICIES OFFERED.

RESPONSE NO. OF RESPONDENTS SHARE (%)

Satisfied 60 60%

Not satisfied 40 40%

Not Responded 0 0%

Total 100 100%

Sources: primary data collected through questionnaire

Page | 44
FIG - 4.12: SATISFACTION OF THE RESPONDENTS
WITH RESPECT TO POLICIES OFFERED.

INTERPRETATION:-

 60% of the respondents are more or less satisfied with their

existing policy.

 40% of the respondents are not satisfied with their existing

policy.

 In this case all of those who have taken a policy have

responded.

Page | 45
Table 4.13 - RESPONDENTS PREFERENCE FOR
CLARIFYING ANY QUERY

Services No. of Respondents Percentage

Advisor 39 39%
company website 16 16%
customer care 28 28%
branch manager 17 17%
Total 100 100%
Sources: primary data collected through questionnaire

FIG - 4.13: RESPONDENTS PREFERENCE FOR CLARIFYING

ANY QUERY

45

40

35

30

25

20 No. of
respondents
15

10

0
Adviso company website customer care branch
r manager

INTERPRETATION:- The above graph shows that 39% people

believes in Advisor, 28% of people believes Customer care while
company website and branch Manager People clarify any query
first respectively 16% and 17%.

Page | 46
 Table 4.14: BENEFITS OF INSURANCE PERCIEVED BY
RESPONDENTS

BENEFITS [Link] RESPONDENTS SHARE (%)

Cover Future 55 55
Uncertainty

Tax Deductions 20 20

Future Investment 25 25

TOTAL 100 100

Sources: primary data collected through questionnaire

FIG - 4.14: BENEFITS OF INSURANCE PERCIEVED BY

RESPONDENTS

INTERPRETATION

 55% of the respondents believe that covering future

uncertainty is the biggest benefit of an insurance policy.

 Whereas, 20% and 25% of them believe that the other benefits

Page | 47
are Tax deduction and future investments respectively

Table 4.15: SATISFACTION OF CURRENT POLICY

Satisfaction level No. of Respondents Percentage

Yes 82 82%
No 18 18%
Total 100 100%
Sources: primary data collected through questionnaire

FIG - 4.15: SATISFACTION OF CURRENT POLICY

9 82
0

8
0

7
0

6
No. of
0 18 respondents

5
0

4 Yes
0 N
o
3
0

2
0

1
INTERPRETATION:
0

0
The above figure shows that 82% of respondents are satisfied
with their current policy and only 18% of people are not happy
with their policy.

Page | 48
FINDINGS:

 It reveals that 39% of respondents belong to 25 to 35 age

group and 31% are belong to below 25 ages. ( Ref: Table 4.1)
 The survey shows that maximum 32% of the respondents
are in working govt. sector. ( Ref: Table 4.2)
 Out of 100respondents 33% of the respondents were well
known about HDFCSL investment option. ( Ref: Table 4.3)
 53% of the people having a insurance policy. ( Ref: Table 4.4)
 33% of respondents are indented to invest on their earning
only. ( Ref: Table 4.5)
 46% of respondents are preferred long term investment term in
HDFC-SLIC. ( Ref: Table 4.6)
 56% of the respondents prefer the buying process of the
company/agent approaching the customer while 44% prefer
vice-versa. ( Ref: Table 4.8)
 36% of the respondents perception about HDFC-SLIC is
professional, and 21% has told that it is being aggressive and
14% are Excellent. ( Ref: Table 4.11)
 60% of the respondents are satisfied with the policies offered
in HDFC-SLIC. ( Ref: Table 4.12)
 39% of the respondents using Advisor service which the
service offered by the HDFC-SLIC. ( Ref: Table 4.13)
 55% of the respondents perceive the benefits of insurance as
a cover for future uncertainity. ( Ref: Table 4.14)
 82% of respondents are satisfied with current policy offered by
HDFC-SLIC. ( Ref: Table 4.15)

Page | 49
SUGGESTIONS:

In Coimbatore most of the people are working in Government

and Business sector and they don‟t have much financial
planning. Another important point is they have good
compensation package. So the company should bring more
innovative and should carry out more promotional activities in
government fields. Better promotion of unit linked plans can
generate more sales to the company.

HDFC STANDARD LIFE INSURANCE COMPANY‟s unit linked

insurance plans can effectively meet the requirements of the
customers, because unit linked plans are directly related to the
market, so the customers can creates more wealth through fund
and they can enjoy the tax benefit, and also the insurance cover.

The pressure on the sales team would be lessoned by

increasing the awareness among the people about the credibility
of the companies and need for capitalizing on the various
insurance plans offered by the private life insurance companies.

 As the awareness of insurance is less among the people, its

awareness should be creating among the people by

conducting stage shows and explaining its need and

importance.

 Insurance should not be considered only as a risk cover

element but also as a long term investment

 It is also recommended to concentrate to on lower income

Page | 50
 group people.

 More efforts should be taken by the company‟s financial

consultants to convert the leads into policy holder of HDFC-

SLIC.

 Follow up should be taken and customer relation should be

maintained by the inviting the existing customers to the

seminars conducted when launching a new product or any

changes are made to the products or rules to retain them.

 Coming with new promotional activities like giving new

advertisements, keeping stalls, conducting seminars in

companies, and giving ads through SMS can be done by

HDFC Standard Life insurance Co. to create awareness

among customers.

Page | 51
CONCLUSION

Our exhaustive research in the field of Life Insurance threw

up some interesting trends which can be seen in the above
analysis. A general impression that we gathered during Data
collection was the immense awareness and knowledge among
people about various companies and their insurance products.

People are beginning to look beyond LIC for their insurance

needs and are willing to trust private players with their hard
earned money. People in general have been impressed by the
marketing and advertising campaigns of insurance companies. A
high penetration of print, radio and Television ad campaigns over
the years is beginning to have its impact now. Another heartening
trend was in terms of people viewing insurance as a tax saving
and investment instrument as much as a protective one. A very
high number of respondents have opted for insurance for such
purposes and it shows how insurance companies have been
successful to attract public money in recent times.

The general satisfaction levels among public with regards to

policy and agents still requires improvement. But therein lies the
opportunity for a relative new comer like HDFC Standard Life
Insurance Company Ltd. LIC has never been known for prompt
service or customer oriented methods and HDFC Standard Life
can build on these factors

Page | 52
 BIBLIOGRAPHY

WEBSITES REFFERED:

 [Link]

 [Link]

 [Link]

 [Link]

BOOKS & JOURNALS REFFERED:

 Marketing Management- Philip kotler.

 Research Methodology- C.R. Kothari.

 IRDA Journal.

 Outlook – The layman‟s guide to insurance

Page | 53