INTRODUCTION TO THE STUDY

The study was a modest attempt to understand the peoples perception towards insurance by ICICI Prudential Life Insurance in Kollam District. ICICI prudential Life is the second largest life insurance company in the country. The study was conducted in the form of survey in around !" peoples in various parts of Kollam District. . #any ban$ing sectors and other financial institutions have set up insurance services that speciali%e to some degree in various style of money planning. #ost of the peoples have savings but they are not aware about insurance benefits and its various schemes This report consists of techni&ues and methodology used analysis' findings' suggestions and constraints for the study that will help in improving the service being offered by the company.

INTRODUCTION TO INDIAN INSURANCE INDUSTRY

(oasting of the largest number of operational life insurance policies in the world' the Indian insurance industry has emerged as serious destination in the global insurance mar$et. )ntil ***' the business of insurance in India was the e+clusive privilege of two states , owned corporations - the Life Insurance Corporation of India .LIC/ and the 0eneral Insurance Corporation .0IC/. The government of India too$ a ma1or step towards liberali%ation of this industry in #arch 2""" and brought into effect of the Insurance 3egulatory Development 4uthority 4ct .I3D4 4ct/. The I3D4 4ct opened the mar$et by doing away with all entry - level restrictions on private insurers. There after' it has been five years consistent growth. 5hile 6"7 of population remains without life insurance and some of the worlds lowest health and non - life insurance cover levels' the potential of the words seventh largest and second most populous country cannot be overloo$ed.

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Prospective insurers have lot to gain from the' 8 2 million middle - class consumers in India' who have financial ability to purchase insurance. 5ith only 2.!7 of the country insurable population currently insured' the mar$et still need to be tapped effectively.

INTRODUCTION TO THE COMPANY

ICICI Prudential Life Insurance Company is a 1oint venture between ICICI (an$' a premier financial powerhouse and prudential plc' a leading international financial services group head&uartered in the )nited Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2""" after receiving approval from Insurance 3egulatory Development 4uthority .I3D4/. The success of the company will be founded in its unflinching commitment to ! core values ,, Integrity' Customer 9irst' (oundary less' :wnership and Passion. ;ach of the values describes what the company stands for' the &ualities of our people and the way we wor$. 5e do believe that we are on the threshold of an e+citing new opportunity' where we can play a significant role in redefining and reshaping the sector. 0iven the &uality of our parentage and the commitment of our team' there are no limits to our growth. RELEVANCE OF THE STUDY The study has been made with the intention to analy%e the perception of pub ic to!"r#$ in$ur"nce po icie$%& #any may not be aware that the life insurance industry of India is as old as it is in any other part of the world T'e M" 'otr" Co((ittee recommended throwing open the sector to private Players to usher competition and bring more choice to the consumer. In India about 2"" million middle class households' presents a huge untapped potential for players in the insurance industry <aturation of mar$ets in many developed

economies has made the Indian mar$et even more attractive for global insurance ma1ors with the per capita income in India e+pected to grow at over =7 for the ne+t " years and

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with improvement in awareness levels' the demand for insurance is e+pected to grow at an attractive rate in India. The #onitor 0roup has estimated that the life insurance mar$et will grow from 3s.2 6 billion in **6 to 3s. ""8 billion by 2""6 .a compounded annual growth of =.!7/. Life insurance companies focusing on rural mar$ets have adopted innovative means of distribution. Instead of appointing agents as is done typically' they have used innovative methods to promoted life insurance and appoints sales e+ecutives to act as their sales arm. This enabled them to tap into their special $nowledge. India has the highest number of life insurance policies in force in the world. This ma$es me to thin$ about doing the pro1ect in 9inancial #ar$eting sector especially in Insurance' in my study I wish to find out these facts regarding money for the security purpose.

NEED OF THE STUDY

The study was held at ICICI Prudential Life Insurance' Kollam to $now the perception of people towards insurance. This study helps the researcher to $now the overall view of insurance in people ICICI Prudential Life Insurance provides various types of insurance products and services. The company wishes to e+pand their business and their services for increasing sales. #ost of the peoples have savings but they are not aware about insurance benefits and its various schemes. <o the researchers intention is to find out remedies for creating better sales. This research analy%es the perceptions and preferences of the public which helps them to gain competitive advantage over their competitors.

O)*ECTIVES OF THE STUDY

To study the perception of public towards insurance policies in Kollam District. To study the investment policies of the people in Kollam District.

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To understand the value for investment in future. To identify how many people are aware about insurance and investment. To provide suggestion to the company.

LIMITATIONS OF THE STUDY

The present study is based on the datas collected from Kollam so its results may not be applicable to other areas. Convenience sampling was used so all the limitations pertaining to this may also became a part in the findings of this study. 4t times the &uestion had to be e+plained to the respondents due to their ignorance that could have influenced their views. The time span was the another constraint' for the preparation of the &uestionnaire lot of study and consultation were re&uired' so that it could be presented in such a way that could be acceptable to the respondent.

INSURANCE SECTOR
The insurance industry worldwide faces challenges in terms of acts of terrorism' hardening of reinsurance rates and changing global ris$ architecture. The opening up of the

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Insurance sector to private players has led to the introduction of a number of new products and the Indian mar$et is one of the fastest growing insurance mar$ets. Insurance business in India is growing at the rate of !,2"7annually and I3D4 has estimated that it is currently of the order of 3s.6 2.!" cr.! when combined with ban$ing services' it adds about ?7 of the countrys 0DP.Insurance penetration .i.e.' Premiums as percentage of 0DP/ has increased from 2"827 in 2""" to 2.667 in 2""8. Li$e wise' insurance density .i.e.' premium per capita/ has increased from 3s.>8!.6*? in 2""" to 3s.?22."*2 in .2""8/ In line with the economic reforms that were ushered in India in early nineties' the 0overnment set up a Committee on 3eforms .popularly called T'e M" 'otr" Co((ittee/ in 4pril **8 to suggest reforms in the insurance sector. The Committee recommended throwing open the sector to private player to usher in competition and bring more choice to the consumer. The ob1ective was to improve the penetration of insurance as a percentage of 0DP' which remains low in India even compared to some developing countries in 4sia. 3eforms were initiated with the passage of Insurance 3egulatory and Development 4uthority .I3D4/ (ill in ***. I3D4 was set up as independent regulatory authority' which has put in place regulations in line with global norms. The state,owned life insurer,LIC' along with 8 private players' mopped up 3s. =!.22 bn in premium in the first four months of this fiscal by selling about =2la$h new policies. 4nd !!la$h new policies have been sold by LIC alone which helped it to ma$e an 6.?>7 rise in premium income at 3s.>*.? bn during 4pril,@uly' this fiscal. The entry of many of the global insurance into the Indian mar$et is the form of 1oint ventures with Indian companies. <ome of the $ey names are Prudential' 4I0' Aew Bor$ Life' 4llian%' <tandard life' <un Life Canada and :ld #utual.

The entry of new players has re1uvenated the erstwhile monopoly player LIC' which has responded to the competition in an admirable fashion by launching new products and improving service standards.

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The new life insurance companies are concentrating on term life policies in the hope that this will be their main stream of business. Private players have an average policy si%e of 3s. ' !6??'""". The 8 private players have increased their mar$et share to 28.6 7 from ?.267 in 2"">. In the fore front is ICICI Prudential with a mar$et share of ?. 27 mar$eting a >*7 growth in business at 3s. >.=>bn.Then comes' (a1a14llian%' CD9C <tandard' Tata 4I0' (irla <unlife' #a+ Aew Bor$ and 4viva. The following are the $ey winds of change brought about by privati%ation. M"r+et e,p"n$ion- There has been an overall e+pansion in the mar$et. This has been possible due to improved awareness levels than$s to the large number of advertising campaigns launched by all the players. The scope for e+pansion is till unlimited as virtually all the players are concentrating on large cities and towns,e+pect by LIC to an e+tent there was no significant attempt to tap the rural mar$ets. Ne! Pro#uct Offerin.$- There has been a plethora of new and innovative product offered by the new players' mainly from the stable of their international partners. Customers have tremendous choice from a large variety of products from pure term .ris$/ insurance to unit, lin$ed investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. #ore customers are buying products and services based on their true needs and not 1ust traditional money bac$ policies' which is not considered very appropriate for long,term protection and savings. Cowever' there are till some $ey new products yet to be introduced -e.g. health products. Cu$to(er Ser/ice- Aot une+pectedly' this was one area that witnessed the most significant change with the entry of new players.

There is an attempt to bring in international best practices in service and operational efficiency through use of latest technologies. 4dvice and need based selling is emerging through much better trained sales force and advisors. There is improvement in response and turnaround times in specific areas such as delivery of policy receipt' policy document' premium notice' final maturity payment' settlement of claims etc. Cowever' there is a long

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way to go and various customer surveys indicate that the standards are still below customer e+pectation levels. C'"nne $ of Di$tribution- Till four years bac$' the only mode of distribution of life insurance products was through 4gents. 5hile agents continue to be the predominant distribution channel' today a number of innovative alternative channels are being offered to consumers. <ome of them are banc assurance' bro$ers' the internet and direct mar$eting. Through it is too early to predict' the wide spread of ban$ branch networ$ in India could lead to banc assurance emerging as a significant distribution mechanism. The low penetration can be e+plained in terms of non,emphasis on customer awareness' training issues of agent and a low ta+ base. 4n increased penetration of the insurance mar$et is possible due to emerging socio economic changes' education and awareness of insurance needs. The industry is set to emerge independents of the normal driving factor of being driven by ta+ incentives for growth. The entry of new players would increase the insurance density .premium per capita/ and the insurance penetration .e+penditure for insurance services e+pressed as a percentage of income/. The regulations pertaining to bro$ers and corporate agents are e+pected to result in the spread of the level of insurance penetration in India. Indian customers perceive value in ta+ benefit and saving whereas world wide' insurance is used as a ris$ cover instrument. 9or most insurers today' customer service occupies the highest priority. <ome insurers have also ta$en up customer relationship management pro1ects for their customer service centers. 5ith the Insurance industry emerging as a buyers mar$et' providing &uality customer service is crucial and IT would play a vital role in doing this. The heavy capital investment in terms of the distribution networ$s' hiring of agents and the long gestation periods of ?, " years provide entry barriers for the industry. The $ey industry drivers are related to lifestyle issues in terms of perceiving insurance as a savings instrument rather than for ris$ cover' need based selling' &uality of service and customer awareness.

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The future growth areas could be term assurance' pension and health insurance. In terms of the distribution channels' there is tremendous opportunity with ban$s and finance companies and by ma$ing the channel IT driven. 5ith increased commoditi%ation of insurance products' brand building is going to play a vital role. A brief 'i$tor0 of t'e In$ur"nce $ector The business of life insurance in India in its e+isting from started in India in the year 6 6 with the establishment of the :riental life Insurance Company in Calcutta. <ome of the important milestones in the life insurance business in India areD * 2D The Indian Life 4ssurance Companies 4ct enacted as the first statute to regulate the life insurance business. *26D The Indian Insurance Companies 4ct enacted to enable the government to collect statistical information about both life and non,life insurance business. *86D ;arlier legislation consolidated and amended to by the Insurance 4ct with the ob1ective of protecting the interest of the insuring public. *!=D2>!Indian and foreign insurers and provident societies ta$en over by the central government and nationali%ed. LIC formed by an 4ct of Parliament' vi%. LIC 4ct' *!=' with a capital contribution of 3s.!crore from the 0overnment of India.

The 0eneral insurance business in India' on the hand' can trace its roots to the Triton Insurance Company Ltd.' the first general insurance company established in the years 6!" in Calcutta by the (ritish. <ome of the important milestones in the general insurance business in India areD *"?D The Indian #ercantile Insurance Ltd .set up' the first company to transact all classes of general insurance business.

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*!?D 0eneral Insurance Council' a wing of the Insurance 4ssociations of India' fames a code of conduct for ensuring fair conduct and sound business practices.

*=6D The Insuring 4ct amended to regulate investments and set minimum solvency margins and the Tariff 4dvisory Committee set up.

*?2D The 0eneral Insurance (usiness .Aationali%ation/ 4ct' @anuary *?8.

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nationali%ed the general insurance business in India with effect from

"? insurers amalgamated and grouped into four companies vi%. the Aational Insurance Company Ltd.' the Aew India 4ssurance Company Ltd.' the :riental Insurance Company Ltd. and the )nited India Insures Company Ltd. 0IC incorporated as a company. The #alhotra committee was set up with the ob1ective of complementing the reforms initiated in the financial sector. The reforms were aimed at Ecreating a more efficient and competitive financial system suitable for the re&uirements of the economy $eeping in mind the structural changes currently and recogni%ing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reformsFGIn **>' the committee submitted the report and some of the $ey recommendations IncludedD

i1 Structure 0overnment sta$e in the insurance Companies to be brought down to !"7 0overnment should ta$e over the holdings of 0IC and its subsidiaries so that these <ubsidiaries can act as independent corporations 4ll the insurance companies should be give grater freedom to operate

ii1 Co(petition Private Companies with a minimum paid up capital of 3s.Ibn should be allowed to enter the industry

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Ao Company should deal in both Life and 0eneral Insurance through a single entity 9oreign companies may be allowed to enter the industry in collaboration with the domestic companies Postal life Insurance should be allowed to operate in the rural mar$et :nly one <tate Level Life Insurance Company should be allowed to operate in each state.

iii1 Re.u "tor0 )o#0 The Insurance 4ct should be changed 4n Insurance 3egulatory body should be set up Controller of Insurance .Currently a part from the 9inance #inistry/ should be made independent i/1In/e$t(ent #andatory Investments of LIC Life fund in government securities to be reduced 9rom ?!7to!"7 0IC and its subsidiaries are not to hold more than !7 in any company .there Current holdings to brought down to this level over a period of time/.

/1 Cu$to(er Ser/ice LIC should pay interest on delays on delays in payments beyond 8"days Insurance companies must be encouraged to set up unit lin$ed pension plans Computeri%ation of operations and updating of technology to be carried out in the Insurance industry The committee emphasi%ed that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. (ut at the same time' the committee felt the need to e+ercise caution as any failure on the part of new players could ruin the public confidence in the industry.

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Cence' it was decided to allow competition in a limited way by stipulated the minimum capital re&uirement of 3s. "" crores. The committee felt the need to provided greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. 9or this purpose' it had proposed setting up an independents regulators body.

T'e In$ur"nce Re.u "tor0 "n# De/e op(ent Aut'orit0 2IRDA1

In ***' the I3D< was set up under the I3D4 4ct. Companies' aspiring to carry on insurance and reinsurance business in India' are re&uired with I3D4' which is the sole authority for granting license to agents. There is neither a restriction on the license numbers that may be granted nor a system of composite license for life and non,life insurance companies in India. Insurance companies are strictly forbidden from dealing with products beyond their scope of license. This implies that' a life insurance company can not sell non, life insurance and vice versa. Insurance agents are' however' allowed to sell both life and non,life products .composite insurance/. In tune with the Indian governments system of chec$s and balance imposed through sector specific 9oreign Direct Investment .9DI/ I3D4 prohibits ""7 foreign ownership of an Indian insurance company. 4n Indian promoter is re&uired to invest either wholly or team up with a foreign insure' which can own no more than 2=7 of the shares in any new venture. The Indian promoter must then sell the ma1ority of his shares to the Indian public through a public offering after " years and retain only up to 2=7 of the shares that is' the same percentage as that of the foreign investor. I3D4 careful in granting licenses and has set up strict standards for all aspects of insurance in India. 5ith the limit on 9DI in the sector' the government ensures that state run agencies such as the LIC and 0IC can maintain their prominence. In @une 2""8' the law Commission prepared a paper identifying 8 potential grounds of revision to the Insurance 4ct and the I3D4 4ct including merger of relevant provisions

of the two acts' as well as harmoni%ation of the Insurance 4ct with other rules and regulations in the sector. The finance ministry is already wor$ing towards comprehensive amendments to the Insurance 4ct and the I3D4 4ct' which will further simplify procedural issues. 4 ma1or indication of the governments efforts to invite Private Indian and foreign insures to invest in the liberali%ed mar$et is the 9DI cap hi$e announced by the finance ministry in 2"">. These changes' however' re&uire formal amendments to the I3D4 4ct' which are still to be adopted.

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THE COMPANY
ICICI Prudential Life Insurance Company is a 1oint venture between ICICI (an$' a premier financial powerhouse and prudential plc' a leading international financial services group head&uartered in the )nited Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2""" after receiving approval from Insurance 3egulatory Development 4uthority .I3D4/. ICICI PrudentialHs e&uity base stands at 3s. .6! billion with ICICI (an$ and

Prudential plc holding ?>7 and 2=7 sta$e respectively. In the financial year ended #arch 8 ' 2""!' the company garnered 3s !6> crore of new business premium for a total sum assured of 3s 8'?6" crore and wrote nearly = !'""" policies. The company has a networ$ of about !='""" advisorsI as well as ? bancassurance and !" corporate agent tie,ups. 9or the past four years' ICICI Prudential has retained its position as the Ao. Indian customer at every step in life. private life insurer in the country' with a wide range of fle+ible products that meet the needs of the

Vi$ionTo ma$e ICICI Prudential the dominant Life and Pensions player built on trust by world,class people and service. This we hope to achieve byD

)nderstanding the nee#$ of cu$to(er$ and offering them superior products and service Leveraging tec'no o.0 to service customers &uic$ly' efficiently and conveniently Developing and implementing superior ri$+ ("n".e(ent "n# in/e$t(ent $tr"te.ie$ to offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our e(p o0ee$ 4nd above all' building transparency in all our dealings.

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PRODUCTS
In$ur"nce So ution$ for In#i/i#u" $ ICICI Prudential Life Insurance offers a range of innovative' customer,centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to > riders' to create a customi%ed solution for each policyholder. S"/in.$ 3 4e" t' Cre"tion So ution$ C"$'P u$ is a transparent' feature,pac$ed savings plan that offers 8 levels of protection as well as li&uidity options. S"/e5n5Protect is a traditional endowment savings plan that offers life protection along with ade&uate returns. C"$')"+ is an anticipated endowment policy ideal for meeting milestone e+penses li$e a childs marriage' e+penses for a childs higher education or purchase of an asset. It is available for terms of ! and 2" years. LifeTi(e Super J LifeTi(e P u$ are unit,lin$ed plans that offer customers the fle+ibility and control to customi%e the policy to meet the changing needs at different life stages. ;ach offer > fund optionsK Preserver' Protector' (alancer and #a+imiser. LifeLin+ Super is a single premium unit lin$ed insurance Plan which combines life insurance cover with the opportunity to stay invested in the stoc$ mar$et. Pre(ier Life 6o # is a limited premium paying plan specially structured for long, term wealth creation. In/e$tS'ie # Life Ne! is a unit lin$ed plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the ris$s of depreciation. In/e$tS'ie # C"$'b"+ is a unit lin$ed plan that provides premium guarantee on the invested premiums along with fle+ible li&uidity options.

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Protection So ution$ Life6u"r# is a protection plan' which offers life cover at very low cost. It is available in 8 optionsK level term assurance' level term assurance with return of premium and single premium. Ho(eA$$ure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost,effective manner. C'i # P "n$ E#uc"tion in$ur"nce under the S("rt7i# brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the childs life. <martKid plans are also available in unit,lin$ed formK (oth single premium and regular premium Retire(ent So ution$ Fore/erLife is a traditional retirement product that offers guaranteed returns for the first > years and then declares bonuses annually. LifeTi(e Super Pen$ion is a regular premium unit lin$ed pension plan that helps one accumulate over the long term and offers an annuity option .guaranteed income for life/ at the time of retirement. LifeLin+ Super Pen$ion is a single premium unit lin$ed pension plan. He" t' So ution He" t' A$$ure and He" t' A$$ure P u$- Cealth 4ssure is a regular premium plan which provides long term cover against = critical illnesses by providing policyholder with financial assistance' irrespective of the actual medical e+penses. Cealth 4ssure Plus offers the added advantage of an e&uivalent life insurance cover C"ncer C"re- is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions.

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6roup In$ur"nce So ution$ ICICI Prudential also offers 0roup Insurance <olutions for companies see$ing to enhance benefits to their employees. 6roup 6r"tuit0 P "n- ICICI Prus group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customi%ed to structure schemes that can provide benefits beyond the statutory obligations. 6roup Super"nnu"tion P "n- ICICI Pru offers both defined contribution .DC/ and defined benefit .D(/ superannuation schemes to optimi%e returns for the members of the trust and rationali%e the cost. #embers have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. 6roup I((e#i"te Annuitie$- In addition to the annuities offered to e+isting superannuation customers' we offer immediate annuities to superannuation funds not managed by us. 6roup Ter( P "n- ICICI Prus fle+ible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designationLran$ or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on hisLher death. F e,ib e Ri#er Option$ ICICI Pru Life offers fle+ible riders' which can be added to the basic policy at a marginal cost' depending on the specific needs of the customer. Acci#ent 3 #i$"bi it0 benefit- If death occurs as the result of an accident during the term of the policy' the beneficiary receives an additional amount e&ual to the rider sum assured under the policy. If the death occurs while traveling in an authori%ed mass transport vehicle' the beneficiary will be entitled to twice the sum assured as additional benefits. Critic" I ne$$ )enefit- protects the insured against financial loss in the event of * specified critical illnesses. (enefits are payable to the insured for medical e+penses prior to death.

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 Inco(e )enefit- This rider pays the "7 of the sum assured to the nominee every year' till maturity' in the event of the death of the life assured. It is available on <marKid and CashPlus 4"i/er of Pre(iu(- In case of total and permanent disability due to an accident' the future premiums continue to be paid by the company till the time of maturity. This rider is available with LifeTime <uper' LifeTime <uper Pension and CashPlus. A)OUT THE PROMOTERS ICICI )"n+ ICICI (an$ .AB<;DI(A/ is IndiaHs second largest ban$ and largest private sector ban$ with over !" years of financial e+perience and with assets of 3s. 6 2.2? billion as on 8"th @une' 2""!. ICICI (an$ offers a wide range of ban$ing products and financial services to corporate and retail customers through a variety of delivery channels and through its speciali%ed subsidiaries and affiliates in the areas of investment ban$ing' life and non,life insurance' venture capital and asset management. ICICI (an$ is a leading player in the retail ban$ing mar$et and has over 8 million retail customer accounts. The (an$ has a networ$ of over !?" branches and e+tension counters' and 2'""" 4T#s. Pru#enti" p c ;stablished in London in 6>6' Prudential plc' through its businesses in the )K and ;urope' the )< and 4sia' provides retail financial services products and services to more than = million customers' policyholders and unit holders worldwide. 4s of @une 8"' 2"">' the company had over )<M8"" billion in funds under management. Prudential has brought to mar$et an integrated range of financial services products that now includes life assurance' pensions' mutual funds' ban$ing' investment management and general insurance.

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In 4sia' Prudential is the leading ;uropean life insurance company with a vast networ$ of 2> life and mutual fund operations in twelve countries , China' Cong Kong' India' Indonesia' @apan' Korea' #alaysia' the Philippines' <ingapore' Taiwan' Thailand and Nietnam. In#i"n In$ur"nce In#u$tr0 Forec"$t 2899:;899<1 The mar$et research report EIndian Insurance Industry 9orecast .2""?,2""*/G by 3AC:< gives an in,depth analysis of the present and future of the Indian Insurance Industry. The mar$et research report loo$s in to the details as well as gives an overview of the Indian insurance mar$et with focus on the performance of the $ey players. 5ith the initiation of the deregulation in the Indian insurance mar$et' the monopoly of big public sector companies in life insurance as well as general .non,life insurance/ mar$et has been bro$en. Aew private players have entered the mar$et and with their innovative approaches and better use of distribution channels and technology' they are eating in to the shares of established public sector companies in Indian Insurance #ar$et. <ince the deregulation has been put in to place' the mar$et share of LIC has come down to ? .>7 in life insurance mar$et while the private players have captured around ?7 mar$et in the general insurance segment having said that' public sector insurance companies such as LIC and Aew India 4ssurance are registered impressive double,digit growths' which reflects on the overall health of the Indian insurance sector. This report includes the $ey private players in the insurance mar$et such as ICICI Prudential' (a1a1 4llian%' (irla <un life' ICICI Lombard and T4T4 4I0. It also includes the leading competitors in the life insurance and general insurance segments along with their mar$et shares. Key Cighlights and scope of the 3AC:< OIndian Insurance Industry 9orecast .2""?, 2""*/O 3eportD P P 0lobal insurance industry scenario Indian insurance industry in global perspective

4nalysis of mar$et performance of $ey players with charts and graphs' forecast and opportunity and challenges faced by the players in Indian insurance industry

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P P

3ecent trends and developments in insurance mar$et in India. Key driving forces in Indian insurance industry

Report fe"ture$D The report EIndian Insurance Industry 9orecast .2""?,2""*/G by 3AC:< gives an insight in to the emerging trends and the future forecasts. There are different aspects that this report discusses in detail. Chapter covers the global insurance industry scenario. Chapter 2 puts India in perspective with the global standards in world insurance industry. Chapter 2 also discusses the Indian insurance industry in historical perspective so as to set the tone for the present analysis. Chapter 8 discusses the mar$et segments and the product segments in the Indian insurance industry. It also analyses the current mar$et performance of the insurance industry. Chapter > and ! discusses the future forecast and 3egulatory framewor$ for Indian Insurance Industry. Discussion of the ma1or driving forces' emerging trends and developments and $ey challenges is given in chapter =' ? and 6 respectively and finally the chapter * gives detailed information about the $ey players in Indian insurance industry.

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PERCEPTION
Perception is a cognitive process of seeing' receiving' selecting' organi%ing' interpreting and giving meaning to the environment around us. 4ccording to <tephen p. 3obins Perception as Ea process by which individuals organi%e and interpret their sensory impressions in order to give meaning to their environmentG Two types of factors influence an individuals perception. The internal factors include individuals needs and desires' personality' e+perience' etc. ;+ternal factors relate to what is to be perceived and situation. These are si%e' intensity' fre&uency' status' etc. Perception being a cognitive process is susceptible to distortions. Aonetheless' attempts made to perceive oneself accurately' improve self,concept' be empathetic' have positive attitudes avoid the common perpetual distortions and communicate openly help improve ones perpetual ability.

INSURANCE
Insurance is a contact between two parties whereby one party called insurer underta$es in e+change for a fi+ed sum called premiums' to pay the other party called insured a fi+ed amount of money on the occurrence of a certain event. Insurance provides protection against financial loss that could arise due to the occurrence of an une+pected event. The loss to the insurer is paid from the premiums collected from him and other insurer by the insurance company. Insurance has been classified into-

Life In$ur"nce
(egun in 6 6' with the establishment of the :riental Life insurance

Company in Calcutta the business of life insurance in India has come along way. The most popular products in this sector are Q;ndowment and Q#oney (ac$ policies. #ore than 6"7 of the Indian life insurance business comes from these two products.

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T'e ("=or P "0er$ in t'e fie # inc u#eR R R R R R R (irla sun Life Insurance Co.Ltd. Pvt.Ltd. (a1a1 4llian% Life insurance Co.Ltd. #etLife India Insurance Co.Pvt.Ltd. Life Insurance Corporation of India :m Kota$ #ahindra Life insurance Co.Ltd. CD9C <tandard Life Insurance Co.Ltd. 3eliance Life Insurance Co.Ltd R R R R R ICICI Prudential Life Insurance Co.Ltd. IA0 Nysya Life Insurance Co.Pvt.Ltd. #a+ Aew Bor$ Life Insurance Co.Ltd. <(I Life Insurance Co.Ltd. Tata 4I0 Life Insurance Co.Ltd. R DaburCC) Life Insurance Company

6ener" In$ur"nce or Non;Life in$ur"nce

The non,life sector primarily consists of fire and miscellaneous ris$ insurance policies. 4lso' since motor vehicle cover is compulsory in India' it acts as another chief source of business in the non,life sector. #a1or players in the non,life sector in India includeD 4llian% (a1a1 0eneral insurance Co.Ltd. ICICI Lombard 0eneral Insurance I99C: To$yo 0eneral Insurance 3eliance 0eneral Insurance 3oyal <undaram 4lliance Insurance The government of India has made certain insurance contracts compulsory buy legislation such as the #otor Nehicles 4ct and the ;nvironmental Protection 4ct. Insurance in India is provided through Public <ector Insurance Companies such as the Life Insurance

,2 ,

Corporation of India .LIC/' the 0eneral Insurance Corporation of India and its four subsidiaries' Aational Insurance Company' Aew India 4ssurance Company' :riental Insurance Company and )nited India Insurance Company. The passage of the I3D4 (ill in *** has enabled private sector to carry out insurance business. Life In$ur"nce Life insurance can be divided into two categories depending on the re&uirement of the insurer. The first category is determined on the basis of premium paying tenure and payment of maturity proceeded while the other is on the of target audience. Insurance determined on the basis of premium paying tenure and payment of maturity proceeds can be categori%ed into R 5hole Life 4ssurance Plans Term 4ssurance Plans 4nnuities

4'o e Life A$$ur"nce P "n 5hole life insurance policies provide insurance cover to an insured person during

his lifetime but the benefits pass on to the nominees. This policy can be availed in the form of limited term payment or whole life payment or through a single premium payment. It is a low cost insurance option and offers good value to the policyholders. 4 variant of this policy is the limited premium payment term policy that provides the assured person to pay premium during his years and en1oy the cover thereafter. <ingle premium and double premium are the new variants of limited period whole life plans. R En#o!(ent P "n$

,22,

<ince the Person paying premium in 5hole Life Plan could never benefit from the proceeds of the policy' endowment type policy plans were introduced. These policies provide both an insurance cover and serve as a saving tool. Insurance cover is provided over the period for which the premium is paid. This' not only provides benefits to the insure but also provides insurance cover over the specified time period. 5ith the lapse of the policy period' the insurer is refunded the amount assured along with any bonus' if the policy is a with,profits plan. To overcome the drawbac$ of endowment plans that re&uired premium s to be paid for long periods' #oney (ac$ Plan were introduced. The survivor in this case is provided the benefits paid at regular intervals at the end of each assurance period. R Annuit0 P "n$ These are assurance plans that provide specific sums at regular intervals during the lifetime of the insurer. 4nnuity plans are targeted to those persons' who after retirement do not have a regular source of income. The annuity holder pays a lump sum to the annuity provider and can avail fi+ed or rising annuity that increases every year depending on interest or inflation rates. There are a few annuity options that wor$ in combination with an insurance plan' mainly with endowment type plans. Typically' annuity plans do not return the seed capital bac$ to persons or nominees purchasing the annuity. 4nnuity can either be perpetual or for a fi+ed time period.

6ENARAL INSURANCE
0eneral insurance has been divided intoD 9ire Insurance #arine Insurance #iscellaneous .4ccident/ Insurance

0eneral insurance has also been classified intoD

a/ Insurance of Person

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b/ Insurance of Property c/ Insurance of Interest d/ Insurance of Liability

In$ur"nce of Per$on- This type of insurance involves personal accident insurance and personal accident and sic$ness insurance.

In$ur"nce of Propert0- Product s including motor vehicles' aircraft' steamers' cycles' furniture' fittings' 1ewelry' household item' machinery' goods in transit' stoc$s of business men etc.can be categori%ed under the head' EpropertyG and are eligible for fire insurance' marine hull insurance' marine hull insurance' marine cargo insurance' engineering insurance' crop insurance and aviation insurance.

In$ur"nce of Intere$t- Insurance of interest generally involves fidelity guarantee insurance and guarantee insurance.

In$ur"nce of Li"bi it0- These of liabilities include third party insurance liability insurance and professional indemnities.

Liter"ture re/ie!

,2>,

POSITIONIN6 OF INSURANCE Nee#$;b"$e# Po$itionin. This is the most commonly understood positioning and based on the differing needs of different group of consumers. This can be done successfully is a company has uni&ue strengths to service a group of customer need better than others. Acce$$;b"$e# Po$itionin. Positioning of customers can also be done by the way they are accessible. That is different groups of customers may be accessible in different ways even though they may have similar needs. 4ccess is typically a function of customer geography or customer scale. A$$ure $ecurit0 "n# .ro!t' b"$e# po$itionin. S"fet0 "n# $ecurit0 b"$e# po$itionin. For c'i #ren5$ e#uc"tion "n# ("rri".e po$itionin.

The business of insurance is related to the protection of the economic value of assets. ;very asset has a value. The owner of the assets may suffer a huge loss in case the asset is lost or damaged because of an uncertain event. Insurance is aimed at compensating the financial loss suffered on the happening of an insured event. Insurance cannot prevent the happening of the eventI however it can protect a person from the financial losses he may suffer after the happening of the event. The insurance is broadly classified as' a/ b/ Life Insurance Aon,life insurance or 0eneral Insurance.

LIFE INSURANCE Life insurance is a contract that pledges payment of an amount to the person assured .or his nominee/ on the happening of the event insured against.

,2!,

The contract is valid for payment of the insured amount duringD

The date of maturity' or <pecified dates at periodic intervals' or )nfortunate death' if it occurs earlier. * R"=e$' C *"(p" " "n# ) Ven+ite$!"r" R"o2 insurance mar$eting '4pril 2""!/

in his article ESales promotion in Insurance sector (A study of LIC) a sserts that' sales promotion helps in ma+imi%ing sales volume and value besides $eeping competitors at bay. <ales promotion is generally bro$en into 8 ma1or categories such as consumer oriented' trade oriented and sales force oriented activities. The consumer oriented promotions are a part of the promotional pull strategy. These promotions include ta+ benefits' payment of bonus' provision of accidental benefits and higher non medical limits. Ta+ benefit is one of the ma1or weapons in the arsenal of strategies at the disposal of the corporation to promote sales. The ta+ saving measure is the greatest mobili%e for business for the corporation. ;ven the Indian consumer has traditionally loo$ed at life insurance as an instrument for ta+ saving' rather than as a prudent investment decision' or even as a protection device. 4nother important consumer oriented promotion of LIC is provision of accident and disability benefits offered to the insured. Trade promotional measures of LIC include salary saving scheme besides bringing more occupations under insurance cover' including ha%ardous occupations. <alary saving scheme is a very successful trade promotion strategy launched by the corporation to tap business from the salaried class. LIC ma$es an arrangement with the employer to deduct the insurance premium from the employees salary and remit it to the corporation. The basic advantage that the corporation waives !7 additional charge on the scheme' resulting in a great benefit to the policy holders.

,2=,

<ales force promotions offer incentives to agents to wor$ with more and more vigor. <ales force promotion steps of the LIC include commission' gifts' advances for the purchase of the cars' club memberships etc. LIC has instituted a system of club membership for its agents. The club membership also en1oys certain privileges such as telephone' provision of stationery' secretarial allowance' concessional loans etc. Cowever sales promotion alone cannot achieve the results for the corporation. (Source: Insurance chronicle, The ICFAI University ress, April !""#) 4" ter #e Ou#e "n# R"=".op" "n 7ri$'n"(urt'0 .health insurance' 9eb 2""=/ in their article EThe health insurance industry in India $ its %ro&in% potential' emphasis that ensuring public health is the principal responsibility lay down by the Indian constitution. The central government provides about !7 of the funding needs mostly for national health programs. The family planning and healthcare initiatives of the government have so far effective in reducing birthrates and improving mortality rates. 4ccording to the 5C: report published in 2""2 India ran$ed spending on health. 4lthough Indias public spending is low' overall health spending improved due to higher private spending. Currently less than !7 of the Indian population has some $ind of health insurance cover. Cealth insurance remains vastly underdeveloped in India. The state owned companies had little focus upon the developing line of business on a systematic and profitable basis. The health portfolio that had a loss ratio of about ?67 in 2""8 deteriorated to *67 in the following year. 4nyway the Third Party 4greement .TP4/ has however given rights to some tension between the healthcare providers and the health insurance companies. (Source: Insurance Chronicle The ICFAI University ress (Fe) !""#) 8th from the bottom in terms of public

*"c+ )ur+e .Insurance mar$eting' @uly 2"">/ in his article

*C+,SS

S-LLI./Gemphasis that people depend on insurance agents or bro$ers for the selection of

,2?,

and buying of policies related to life' health' automobiles etc. but it has been found that most agents or bro$ers speciali%e in selling policies related only to particular field. The statistics showed that the average 4merican had ?.2 insurance policies i.e.' selling more than one policy to their client. This can be specified as cross selling or multiline mar$eting. #ore policies per client mean lower ac&uisition cost' higher client retention and greater profit. (Source: Insurance chronicle The ICFAI University ress, 0uly(!""1) A&Sru="n .Insurance mar$eting @uly 2"">/ in his article E+ural insurance mar2et in India' <tates that the growth in the insurance sector is higher than the 0DP growth rate of the country. 4 careful analysis of postal liberali%ation period suggest that new insurance players made a good start while the e+isting one maintained consistent growth level. The two segments of Indian insurance mar$et i.e.' )rban and 3ural have their own characteristic features. The economic growth of the two has not been the same. (ut there is a fact that most of the new insurance companies started operating from metros and urban. <o they got more opportunity to cover by several types of insurance. #oreover due to the better educational status they got awareness about several financial and insurance products. <till there are many opportunities in rural insurance mar$et. 0igantic population' growth in income level of rural population' high saving habits etc. are some plus areas and if we e+ploit these areas' there in a very good scope for the growth. 0overnment of India ma$es steps to improve the conditions of the rural area. @anasree (ima Bo1na' L4L0I etc. are some e+amples. 0overnment made a tie with LIC and made several scheme for rural people li$e <i$sha <ahayog Bo1na' Krishi <hrimi$ <ama1i$ sura$sha Bo1na etc. 4nyway it is the opportunities not compulsions which would drive the old and new players to rural India and the outcome will be steady and secured economic growth. (Source: The ICFAI University ress, 0uly(!""3)

R"c'"n" P"ri'"r .Insurance mar$eting' 1uly2"">/ in her article *4ancassurance: challen%es $ opportunities in India' emphasis that (ancassurance symboli%es the convergence of ban$ing J insurance. The term involves distribution of insurance products

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through a ban$s branch wor$. 5hile the bancassurance has become a successful story in ;urope' it is relatively a new concept in 4sia. The motive behind this also varies. 9or ban$s' it is a means of product diversification J a source of additional fee income. Insurance companies see it as a tool for increasing their mar$et penetration and premium turnover. The customer sees it as a bonan%a in terms of reduced price' high &uality products and delivery at the doorsteps. (ut' when we thin$ about India there is a huge pool of s$illed professionals whether it is ban$s or insurance companies who may be easily relocated for any bancassurance venture. #ost large retail ban$s engender a greater deal of trust in broad segments of consumers' which they can leverage in selling them personal line insurance Products. 4nother advantage ban$s have over traditional insurance distributors is the lower cost per sales lead made possible by their si%able and loyal customer base. (an$s also en1oy significant brand awareness within their geographical regions. (an$s proficiency in using Technology has resulted in improvement in transaction processing and customer service. (ut there are also some short comings. The most obstacles to success are the poor human resource management' lac$ of sales culture within the ban$' no involvements by the branch manager' insufficient product promotions etc. 4nyway to move beyond products oriented cross selling to customer focused crossed buying re&uires a holistic approach to bancassurance. <uccess of a bancassurance re&uires change in approach' thin$ing and wor$ culture on the part of everybody involved. (Source: The ICFAI University ress, 0uly(!""3)

)ri"n D )"et> .Insurance mar$eting' @uly 2""8/ in his article *Term insurance sales techni5ues' <tates that today people need term insurance more than ever' so one should learn to be efficient in its sale. Term insurance enables even those people who could otherwise not be able to afford a sufficient amount of life insurance' to ensure that their family will not suffer financially should they die.

,2*,

Ce says that he point out to clients the importance of ade&uate coverage to protect their families. If their income permits' he encourages them to ma$e a coverage permanent life insurance. <cott #enta' Ch9C'C9P'CL)' a #et Life agent from ;lmsford'ABbelieves term insurance will continue to be sold as a commodity unless the producer can demonstrate that he Lshe delivers additional value . Ce wor$s to help buyers understand the products convertibility period' and the $inds of permanent products to which their term insurance can be converted. Ce believes producers should recommend the appropriate amount of coverage.

RESEARCH METHODOLO6Y
Intro#uctionRe$e"rc'- ; 3esearch is defined as a careful' critical in&uiry or e+amination in see$ing facts or principlesI diligent investigation in order to ascertain something. 3esearch is essentially a systematic en&uiry see$ing facts through ob1ective verifiable methods in order

,8",

to discover the relationship among them and to deduce from the board principles or laws. It is really a method of critical thin$ing.

RESEARCH PRO)LEM
The insurance industry is highly competitive in nature today. #any players are finding through their customers for their different schemes. In this scenario' the companies need to $now what the customers as$ for and their needs time to time. 9or this they are doing regular researches and studies on the changing customer perceptions. This research analy%e the perceptions and preferences of the public which helps them to gain competitive advantage over their competitors

RESEARCH DESI6N
Re$e"rc' De$i.n- ; 4 researcher attempting to conduct a study should necessarily prepare a plan which will help him to attain his ultimate aim. This plan is the research design. It is a plan for the collection and analysis of data. 3esearch Design can be defined as the planned se&uence of the entire process involved in conducting a research study. In this pro1ect wor$' the research design used is descriptive researcher

TYPE OF RESEARCH
De$cripti/e re$e"rc'This study follows descriptive research method. 4 descriptive study involves formulating the ob1ective of the study' defining the population and selecting the sample' designing the methods of data collection and analysis of the data and results. Descriptive studies aim at portraying accurately the characteristics of a particular group or situation.

4 Descriptive study may be concerned with the attitudes or views .of a people/ towards anything.

RESEARCH METHODOLO6Y
3esearch methodology deals with the ob1ective of a research study' the method of defining the research problem' the type of hypothesis formulated the type of data collected'

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methods used for collecting and analy%ing the data etc. #ethodology includes the collection of primary data and secondary data. 3esearch methodology may be defined as the procedure by which researchers go about their wor$ of describing' e+plaining and predicting phenomena. It deals with the cognitive processes imposed in research by the problems arising from the nature of its sub1ect matter. 3esearch #ethodology is the description' e+planation and 1ustification of various methods of conducting research.

DATA COLLECTION METHOD

SOURCE OF DATA <ource of data used for the study can be classified into .4/ Primary source .(/ <econdary source 2A1 PRIMARY SOURCE Primary data are first hand information and are collected from various sources li$eD R R R Informal interviews Through <tructured &uestionnaire :bservation

2)1 SECONDARY SOURCE The secondary source consists of readily available datas and is already compiled statistical statements and reports.

<econdary datas are collected fromI (usiness #aga%ines Internet

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4nnual reports @ournals

TOOLS FOR THE ANALYSIS OF DATA

The analysis of data re&uires advance planning of the research design. The advance planning may cover such aspect as categori%ation of variable and preparation of dummy tables. The data processing consists of the number of closing related operations li$e. . 2. 8. >. ;diting Classification and coding Transcription Tabulation

In this pro1ect researcher used simple averages and percentages for the analysis of the data.

S"(p in. (et'o#

Convenient sampling was used to collect data from the sample. 4 sample' as the name implies' is a smaller representation of a large as whole. In other words a selection of the population selected from the latter in such a way that they rare representative of the universe is called sample.

4 single member of a population is referred to as population element. 5hen some of the elements are selected with the intention of finding out something about the population from which they are ta$en' that group of elements is referred as a sample and the process of selection is called sampling. S"(p e $i>eThe sample consisted of !" respondents in various parts of Kollam District Popu "tion-

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Population refers to the total of items about which information is derived. Population of the study consisted of peoples in various parts of Kollam DistrictI the researcher met the various peoples as per the reference given by the organi%ation S"(p in. unitThe sampling unit consisted of various peoples in Kollam District Are" of t'e $tu#0The study was conducted in various parts of Kollam District Ti(e perio# of $tu#0The study was conducted for a period of one month

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?&

Nu(ber of peop e !'o be ie/e in (one0 p "nnin.

Table AoD S &No 2 8 P"rticu "r$ Bes Ao Total No& of Re$pon#ent$ !" " !" @ ""7 "7 ""7

Source- Pri("r0 #"t"

Chart AoD
150

100

50

No. Of Respondents 150 0

% 100% 0%

1 Yes 2 No

Interpret"tion 9rom the information it is found that all respondents believe in money planning and they referred that respondents cannot live with out proper money planning.

8&

T0pe$ of (one0 p "nnin.

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Table AoD 2 S &No 2 8 > ! = P"rticu "r$ <aving 9i+ed Deposits PP9 <toc$s,Debentures :thers Total No& of Re$pon#ent$ =8 8= > " 2? !" @ >27 2>7 *7 ?7 67 ""

Source- Pri("r0 #"t" Chart AoD 2

% 50% 40% 30% 20% 10% 0% Saving Fixed Deposits PPF StocksDebentures Ot ers %

Interpret"tion 9rom the above information it is found that most of the respondents prefer savings as a method for money planning and only a few have <toc$' Debentures and PP9.

A&

Peop e !'o '"/e (one0 p "nnin. for t'eir retire(ent

Table AoD 8 S &No 2 P"rticu "r$ Bes Ao No&Of Re$pon#ent$ @ "> =*7 >= 8 7

,8=,

Total

!"

""7

Source- Pri("r0 #"t"

Chart AoD 8
150 100 50 0 No. Of Respondents 104 46

% 69% 31%

1 Yes 2 No

Interpret"tion 9rom the above illustration it is found that most of them have money planning for their retirement. The government employees and have to contribute a part of their salary to PP9 and many people are bothered about their retirement life. 3est of others is not bothered about money planning for their retirement.

B&

V"riou$ !"0$ of in/e$t(ent t'"t peop e #o to protect t'eir inco(e "fter retire(ent

Table AoD > S &No 2 8 P"rticu "r$ #onthly income scheme <avings (an$ No& Of Re$pon$e 2" !* > @ 87 8*7 *7

,8?,

> ! = ? 6 Source- Pri("r0 #"t"

PP9 <toc$ or Debenture Post office Dont $now Total

22 > 26 8 !"

!7 87 *7 27 ""

Chart AoD >

% 50% 40% 30% 20% 10% 0% !ont "# inco$e sc e$e Savings %ank PPF Stock or Post o&&ice Don't kno( Debenture %

Interpret"tion 9rom the above information it is found that larger portion of the respondents invest in savings account. C& Peop e "rr"n.e c"$' in c"$e of critic" i ne$$De(er.encie$D"cci#ent$

Table AoD ! S &No 2 8 > Source- Pri("r0 #"t" P"rticu "r$ #edical insurance 3elative and friends Dont $now Total No& Of Re$pon$e >6 6* 8 !" @ 827 !*7 *7 ""7

Chart AoD !

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)% 32% !edica" insurance *e"ative and &riends Don't kno( 5)%

Interpret"tion

9rom the above information it is found that most of the respondents arrange cash incase of critical illnessL emergenciesLaccidents from their relatives and friends. <ome others are prefer from medical insurance and remaining others opinion was they are not aware about it.

E&

I(port"nt to '"/e "n e#uc"tion fun# for 0our c'i #ren

Table AoD = S &No 2 8 > Source- Pri("r0 #"t" P"rticu "r$ Nery important Important Aot important Total No& Of Re$pon$e *2 !8 ! !" @ =27 8!7 87 ""7

Chart AoD =

,8*,

3% 35%

,er# i$portant -$portant +2% .ot i$portant

Interpret"tion 9rom the above information ma1ority of a respondents had answered education fund is very important. <ome of them opinion was important and rest of others answered it is not at all important.

:&

I(port"nt to '"/e ("rri".e fun# for 0our c'i #ren

Table AoD ? S &No 2 8 > Source- Pri("r0 #"t" Chart AoD ? P"rticu "r$ Nery important Important Aot important Total No& Of Re$pon$e >" * * !" @ 2? 7 =" 7 87 ""7

,>",

13%

2/% ,er# i$portant -$portant .ot i$portant

+0%

Interpret"tion 9rom the above observation it was found that ma1ority of the respondents opinion was marriage fund for their children is important and remaining ones said it is not important to have a marriage fund for their children.

F&

Peop e "!"rene$$ "bout in$ur"nce

Table AoD 6 S &No 2 8 Source- Pri("r0 #"t" P"rticu "r$ Bes Ao Total No& Of Re$pon$e !" " !" @ ""7 "7 ""7

Chart AoD 6

,> ,

0%

0es .o

100%

Interpret"tion 9rom the above information it is found that all respondents are aware about insurance and no one said they are not aware about the insurance.

<&

Nee# of In$ur"nce for 0our f"(i 0

Table AoD * S &No 2 8 Source- Pri("r0 #"t" P"rticu "r$ Bes Ao Total No& Of Re$pon$e >8 ? !" @ *!7 !7 ""7

Chart AoD *

,>2,

5%

0es .o

)5%

Interpret"tion 9rom the above illustration it is found that ma1ority of the respondents said insurance is needed for the family and rest of others said insurance is not needed for the family.

?9&

Peop e "!"rene$$ "bout t'e benefit of " .oo# in$ur"nce p "n

Table AoD " S &No 2 8 Source- Pri("r0 #"t" P"rticu "r$ Bes Ao Total No& Of Re$pon$e !2 *6 !" @ 8!7 =!7 ""7

Chart AoD "

,>8,

35% 0es .o +5%

Interpret"tion

#a1ority of the respondents are aware about the benefit and rest of others are not aware about the benefits of good insurance plan.

??&

Peop e !'o i+e$ to ("+e " repre$ent"ti/e c" $ on t'e i#e"$

Di$cu$$e# "bo/e Table AoD S &No 2 8 Source- Pri("r0 #"t" P"rticu "r$ Bes Ao Total No& Of Re$pon$e =8 6? !" @ >27 !67 ""7

Chart AoD

,>>,

42% 0es .o 51%

Interpret"tion 9rom the above it is found that larger number of respondents not li$e discuss the ideas and remaining others li$e to discuss the ideas mentioned in the above &uestion.

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FINDIN6S
4s a part of the data collection for the wor$ A Study on Peoples perception towards Insurance 3esearcher had approached !" people from various parts of Kollam District including Karunagappally' <asthamcottah' Chavara and Kollam. 4 structured &uestionnaire is used for data collection. (ased on data collection' data analysis and interpretation is done and the following findings are to be made.

#a1ority of people were in the opinion that have #oney planning #ost of the people prefer <avings as an important type of money planning and many of the ma$es a portfolio of savings' 9i+ed Deposits' PP9. People who have money plan for their retirement is less because they hire loans from 9inancial Institutions with less paper wor$s and after that life is moving on credit. Those who have money plan for retirement prefer investment in Post office' PP9' <aving s because they are the traditional method that are followed and they are owned by government. People arrange cash from 3elatives and 9riends in case of ;mergencies' illness and accidents and some of them ta$e medical insurance and some of them go for loans and it can be reimbursed. #a1ority of people suggest that it is very important to have an education fund for their children It is important to have a marriage fund for their children but it is not very important because of the changing social system

,>=,

 #a1ority of the people are aware about the insurance and insurance products. #a1ority suggest that Insurance is needed for the family incase of retirement life' illness' ;ducation and for meeting the uncertainties in future. ;ven though there are large number of Insurance companies and Insurance Products many people are not aware about the benefits and various schemes <ome of the people that I surveyed are interested in Knowing various new schemes and benefits of insurance.

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SU66ESTIONS

Insurance companies must try to each the customers through tangible clues and ma$e them aware about the scheme and benefits. The degree of customer contact and seller interface plays a significant role in insurance mar$eting. The scope for e+pansion is still unlimited for all the insurance players because they are concentrating on large cities and town -e+pect by LIC to an e+tent there was no significant attempt to tap the rural mar$ets. 5eb,based 3elationship #ar$eting in collection of premium and distribution of the amount to reduce the time lag and e,mails and availability for understanding the current position of the customer about their Insurance 9i+ service standards for the agents and bro$ers and ma$e a decent apology in case of service failure. The companies must concentrate on Nision' NaluesJ Culture' <trategies J0oals' structure J 3oles' Key Performance Indicators .KPI/ -that entails multiple learning' 3apid Improvement <trategy,;nables initiate change' when re&uired. The advantage of Insurance benefits is high for the people who started investing from the early age. There is an emergence of Cyper,competition in Insurance mar$et' one way to retain success is to develop a holistic (rand 3elationship #anagement .(3#/

,>6,

 Introduce the concept Oct".on" M"r+etin.% it encompasses all finer aspect of customer management which can result in greater profits through customer satisfaction. :ctagonal mar$eting gives better edge to companies in not only ma+imi%ing customer satisfaction but also in retaining them. It includes providing customer a product which is more acceptable to him' 4ffordable nearest to consumers' 3elationship through productJ

product 4vailable at service.

There has been a plethora of new and innovative products offered by the new players' Customers have tremendous choice including pure term .ris$/ insurance to unit,lin$ed investment products with a variety of benefits as riders from which they can choose. #ore customers are buying products and services based on their true needs traditional money,term protection and saving new products. <o there are still some $ey new products yet to be introduced -e.g. Cealth products.

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CONCLUSION
The main ob1ective of the study is for understanding the peoples perception towards insurance and to understand insurance mar$et in India and to an e+tent' correct or verify $nowledge regarding insurance. In this pro1ect wor$ Q A Stu#0 on peop e Perception to!"r#$ In$ur"nce%G the study has touched an overview of the perception of people towards insurance there is an In,depth study are re&uired in the following sub1ects. The role of private insurance companies in insurance mar$et The concept of oct".on" M"r+etin. and its implementation in Insurance The role of (rand relationship #anagement and value of (rand in mar$eting )nderstand the customers needs and development of product <tudy of response about the e+isting product

It will give me great satisfaction if someone after reading my pro1ect encourages in doing an in,depth study of the above set concept.

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HUESTIONANAIRE
6I am Aswin.M.S, student of 7-S Colle%e of -n%ineerin%, 8uttippuram, 7alappuram conductin% a survey on *A Study on peoples erception to&ards Insurance'9 +-S ,.:-.T :-TAILS

.ame :;;;;;;;;;;

rofession

:;;;;;;;;;;;;;<<

Se= :;;;;;;;;;; Annual income:;;;;;;;;;;;;;<< A%e :;;;;;;;;;; 7arital status :;;;;;;;;;;;;;<< Family si>e :;;;;;;;;<< Location :;;;;;;;;;;;;;;

?@< :o you )elieve in money plannin%A Bes .o

?!< Co& do you do your financial plannin%A Savin% F Fi=ed :eposit Stoc2(de)entures ,thers ;;;;;;;<

?D< (A) :o you have a money plan for your retirementA Bes .o

If No Skip to Question No: 4 4! &hat &ould you do you protect your income after your retirementA 7onthly income scheme 4an2 F ost office Savin%s Fi=ed :eposit Stoc2 $ :e)entures :onEt 2no&

,thers ( lease specify);;;;;;;;;;;;;;;<

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?3<Co& &ould you arran%e for cash if you had critical illness F-mer%encyFAccidentA 7edical insurance :onEt 2no& +elative and friends ,thers ( lease specify);;;;;;;;;;

?1<Co& important is to have an education fund your childrenA Gery Important .ot important Important ,thers ( lease specify);;;;;;;;;;

?#< Co& important is to have a marria%e fund for your childrenA Gery Important .ot important Important ,thers ( lease specify);;;;;;;;;;

?H< :o you 2no& &hat is insuranceA Bes .o

If No skip to Question No. "# ?I. :o you thin2 insurance is needed for the familyA Bes .o

?J< Kould a %ood insurance plan )enefit your familyA Bes .o

?@"< Kould you li2e a representative call on to you to discuss any of the ideas mentioned a)oveA Bes .o

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