Customer Relationship

Management
IDBI Federal Life Insurance Co. Ltd.

Vignesh S Customer Relationship Management

 Customer Relationship Management

SUMMER INTERNSHIP PROGRAM

AT

IDBI Federal Life Insurance Co. Ltd

Submitted by

Vignesh S (18MBA001)

UNDER THE GUIDANCE OF

Mr.T.VINUCHARLES MBA, (Ph.D)

Assistant Professor

DEPARTMENT OF MANAGEMENT

RATHINAM COLLEGE OF ARTS AND SCIENCE (AUTONOMOUS)

(Affiliated to Bharathiar University, Re-Accredited by NAAC with “A” Grade)

May-2019

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 Customer Relationship Management

A PROJECT REPORT
On

CUSTOMER RELATIONSHIP MANAGEMENT

By

Vignesh S (18MBA001)
At
IDBI Federal LIFE INSURANCE CO. LTD., Coimbatore

A project report Submitted in partial fulfillment of the requirement of MBA

Program of the Barathiyar University,Coimbatore

Faculty Coordinator:
Mr. Mahesh Balakrishnan.
Mr. Vinu Charles.

Date of Submission:

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 Customer Relationship Management

AUTHORIZATION

This report ‘Customer Relationship Management – An IDBI FEDERAL Perspective

Coimbatore’ done during my Summer Internship Program (SIP) is submitted as a partial fulfillment
of the requirement of MBA program of Rathinam Institute of Management, Coimbatore.

Date:

Name:

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 Customer Relationship Management

ACKNOWLEDGEMENTS

I would like to express my sincere gratitude to my company guide Mr. Jeffrey, Agency
leader, IDBI FEDERAL Life Insurance Company, Coimbatore for guiding me throughout my summer
internship and research project. His encouragement, time and effort are greatly appreciated.
A journey is easier when you travel together. It is certainly valuable than independence. I
would like to express my deep gratitude to the people who have given me their support to
complete this project.
I would then like to thank my faculty guide, guide Mr. T. Vinu Charles MBA, (Ph.D.)
Assistant Professor, for all their valuable inputs and constant support towards me throughout my
project and providing me an opportunity to learn outside the class room. It was a truly wonderful
learning experience. I would like to thank all my friends who did their SIP from IDBI FEDERAL for
their valuable suggestions and support.
I am thankful to the faculty members of DEPARTMENT OF MANAGEMENT for having
shown me right path to complete my project successfully.
Last but not the least I would like to thank all the respondents who offered their opinions
and suggestions and sometimes critical views throughout the survey which made me constantly
update myself come out with a successful project.

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 Customer Relationship Management

Index
Sl. No. Contents Page Numbers
1 AUTHORIZATION 4

2 ACKNOWLEDGEMENTS 5

3 ABSTRACT 7

4 INTRODUCTION 10

5 LITERATURE STUDY 11

6 INSURANCE - OVERVIEW 12

7 CUSTOMER RELATION MANAGEMENT 13

8 COMPANY PROFILE 15

9 PRODUCT RANGE 17

10 RESEARCH DESIGN 18

11 RESEARCH OBJECTIVE 18

12 RESEARCH PLAN 19

13 DATA ANALYSIS 22

14 SECONDARY DATA ANALYSIS 22

15 WEALTHSURANCE 23

16 INCOMESURANCE 24

17 PRIMARY DATA ANALYSIS (B2B ) 25

18 Secondary Data Analysis B2C 31

19 STATISTICAL ANALYSIS 36

20 INTERPRETATION 47

21 FINDINGS 53

22 RECOMMENDATION 54

24 CONCLUSION 56

25 ANNEXURE - I (Questionnaire(B2B) ) 57

26 ANNEXURE - II (Questionnaire(B2C) ) 59

27 REFERENCES 62

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 Customer Relationship Management

Abstract:
The project aims at customer Relationship Management at IDBI FEDERAL Life Insurance
Co. Ltd. It includes a detailed study of the strategies adopted by different companies which provide
intangible products and services and implement that strategy in IDBI FEDERAL Life Insurance Co.
Ltd. The targeted sectors for this analysis are Banks, IT - ITES sector, Insurance Companies, Tours
and Travels, and Other service industries
It also includes the research survey done for the common people done to know the mind set
of the people and the features which they consider the most before going for any insurance policy in
order to maintain the long term relationship with them. The project also includes the detailed study
of Unit Linked Insurance Plans (ULIPs) in the Indian context, a comparative analysis of ULIPs of
some well-known selected companies with that of IDBI FEDERAL and in the process identifies the
strengths and weaknesses of IDBI FEDERAL. The different selected companies apart from IDBI
FEDERAL on which the project is entirely focused are namely:
1. ICICI PRUDENTIAL
2. LIFE INSURANCE CORPORATION OF INDIA
3. HDFC STANDARD LIFE
4. MetLife
5. SBI Life Insurance
The results of the project have been an outcome of a detailed analysis of collected secondary
data and well supported by analysis of primary data collected through a survey conducted in the
Coimbatore city. The project required me to design two questionnaires and conduct a primary
survey. One is Business to Customer (B2C) for the general people to know their mind set and other
one is for the employees of the targeted companies in order to know about the strategies followed
by various companies in order to maintain customer relationship. The survey was mainly conducted
to study the consumer perception, opinion and awareness of various insurance products. The
number of respondents targeted was approximately 250. The sample of respondents included was
carefully selected targeting respondents from all age groups. Also the preferences of the
respondents towards these selected insurance companies have been noted and the reasons analyzed.
The data gathered from the primary survey was coded in a statistical tool called as Statistical
Package for Social Science (SPSS) for analysis and to find various factors that affect an investor
decisions while choosing an investment option in this vast market. Finally I interpreted the results
of the project by combining both the primary and the secondary data analyses then identified the
areas where the company is really strong and the areas where it needs to have a second look. The
Project helped me enhance my knowledge on various technicalities of the Indian insurance industry
and gave me a broader prospective of various investment opportunities available in the market.
Marketing concepts learnt in the classroom were implemented in a real life environment.

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Figures and Graphs

Sl. No. Contents Page Numbers
1 FIGURE I - IDBI Business 11

2 FIGURE II - Yearly turnover comparison 12

3 TABLE I - Features of wealthsurance of IDBI FEDERAL 22

4 TABLE II - ULIPs of LIC INDIA 22

5 TABLE III - Comparative analysis of ULIPs of LIC with wealthsurance 22

6 TABLE IV - ULIPs of ICICI Prudential 23

TABLE V - Comparative analysis of ULIPs of ICICI Prudential with
23
7 wealthsurance
8 TABLE VI - Comparative analysis of Incomesurance 24

9 TABLE VII - Comparative analysis of the strategies 25

10 GRAPH I - Main reason for choosing the company 26

11 GRAPH II - Preferred interval of communication 27

12 GRAPH III - Preferred medium of communication 28

13 GRAPH IV - Frequency of resolving customer complaint 29

14 GRAPH V - Methodology adopted 30

15 GRAPH VI- Efforts to establish loyal customers 31

16 GRAPH VII - Age Group of the respondents 32

17 GRAPH VIII - Occupation 32

18 GRAPH IX - Own an insurance policy 33

19 GRAPH X - Reason for taking insurance policy 33

20 GRAPH XI - Preferred investment instrument 34

21 GRAPH XII - Preferred company to invest 35

22 GRAPH XIII - Risk in ULIPs 36

23 TABLE VIII – Long term investment is favorable 37

24 GRAPH XIV - Showing responses 37

25 TABLE IX - Investment in financial products 37

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 Customer Relationship Management

GRAPH XV - Showing responses 38

26
TABLE X - Insurance coverage 38
27
GRAPH XVI - Showing responses 39
28
TABLE XI - High returns 39
29
GRAPH XVII - Showing responses 40
30
TABLE XII - Service differentiation 40
31
GRAPH XVIII - Showing responses 41
32
TABLE XIII - Flexible investment options 41
33
GRAPH XIX – Showing responses 42
34
TABLE XIV - Risk involved 42
35
GRAPH XX - Showing responses 42
36
TABLE XV - Services 43
37
GRAPH XXI - Showing responses 44
38
TABLE XVI - Credibility 44
39
GRAPH XXII - Showing responses 45
40
TABLE XVII - Tax benefit 45
41
TABLE XVIII - Association of customized service with customer service 59
42
TABLE XIX - Association of assuring high returns with customer service 60
43
TABLE XX - Association of flexibility with customer Service 60
44
TABLE XXI - Association of assuring better tax benefit with customer
61
45 service

46 TABLE XXII - Association of lower risk involved with customer service 61

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 Customer Relationship Management

Introduction

PURPOSE:
The project is being done as a part of summer internship program of Rathinam Institute of
Management, Coimbatore. The completion of the project is a partial fulfillment requirement for
being awarded the Masters in Business Administration (MBA) degree from the university.

SCOPE OF THE STUDY:

This study aims to know the consumer mind set and perception towards various insurance
policies. The analysis is based on the empirical data collected from the Coimbatore city. The study
also aims to discuss in detail the various strategies adopted by different companies providing
intangible services to know how they are maintain long term relationship with their customers and
implement that strategy in IDBI FEDERAL Life insurance co. Ltd.

OBJECTIVE OF THE PROJECT:

- To maintain Relationship of IDBI FEDERAL Life Insurance Co. Ltd. with the customers.
- To know about the strategy adopted by different companies which provide intangible
services and implementing that strategy in IDBI FEDERAL.
- Features which the people consider the most while taking any insurance policy and work on
to strengthen that feature.
- Segmenting the customers on the basis of their expectations.

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LITERATURE STUDY-INSURANCE:

Insurance may be described as a social device to reduce or eliminate risk of loss to life and
property. Under the plan of insurance, a large number of people associate themselves by sharing
risks attached to individuals. The risks which can be insured against include fire, the perils of sea,
death and accidents and burglary. Any risk contingent upon these, may be insured against at a
premium commensurate with the risk involved. Thus collective bearing of risk is insurance.

CHARACTERISTICS OF INSURANCE:
1. Sharing of risks
2. Cooperative device
3. Evaluation of risk
4. Payment on happening of a special event
5. The amount of payment depends on the nature of losses incurred.

HISTORY OF INDIAN INSURANCE:

Insurance has a long history in India. Life Insurance in its current form was introduced in
1818 when Oriental Life Insurance Company began its operations in India. General Insurance was
however a comparatively late entrant in 1850 when Triton Insurance company set up its base in
Kolkata. History of Insurance in India can be broadly bifurcated into three eras: a. Pre
Nationalization b. Nationalization and c. Post Nationalization
Life Insurance was the first to be nationalized in 1956. Consolidating the operations of
various insurance companies formed Life Insurance Corporation of India. General Insurance
followed suit and was nationalized in 1973. General Insurance Corporation of India was set up as
the controlling body with New India, United India, National and Oriental as its subsidiaries. The
process of opening up the insurance sector was initiated against the background of Economic
Reform process, which commenced from 1991. For this purpose Malhotra Committee was formed
during this year who submitted their report in 1994 and Insurance Regulatory Development Act
(IRDA) was passed in 1999. Resultantly Indian Insurance was opened for private companies and
Private Insurance Company effectively started operations from 2001.

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INSURANCE MARKET – PRESENT

The insurance sector was opened up for private participation a decade back. For years now,
the private players are active in the liberalized environment. The insurance market has witnessed
dynamic changes, which include presence of a fairly large number of insurers both life, and non-life
segment. Most of the private insurance companies have formed joint venture partnering well-
recognized foreign players across the globe.

The Indian life insurance market generated total revenues of $41.36 billion in 2007, thus
representing a compound annual growth rate (CAGR) of 11.84% for the period spanning 2000-
2007. Life insurance market had a growth of $22.46 billion within a period of 7 years with a growth
rate of 118.24%. Estimated life premiums rose to INR 1,470,800 million ($36.77 billion) in 2006
from INR 1,301,540million ($32.54billion) in 2005. We envisage that life premiums in 2011 will
be $65.96 billion, a growth larger than they were in 2007. The performance of the market is
forecast to accelerate, with an anticipated CAGR of 9.78% for the four-year period 2007-2011
expected to drive the market to a value of $65.96 billion by the end of 2011. There would be a
growth of $24.6 billion i.e. 59.48% in the next 4 years. Non-life premiums in India were $6.53
billion in 2007. Gross written premium (GWP) in the Indian non-life insurance market reached a
value of $5.75 billion in 2006, this representing an annual growth of 13.55% for the period
spanning 2006-2007.

Estimated non-life premiums rose from INR230 billion ($5.75 billion) in 2006 to INR261
billion ($6.53 billion) in 2007. We anticipate that non-life premiums will grow by a CAGR of
9.40% between 2007-2011. We are looking for non-life premiums to rise by $405 million over the
five years to the end of 2011 with a growth rate of 62.02%.With a huge population base and large
untapped market, insurance industry is a big opportunity area in India for national as well as foreign
investors. India is the fifth largest life insurance market in the emerging insurance economies
globally and is growing at 32-34% annually. This impressive growth in the market has been driven
by liberalization, with new player significantly enhancing product awareness and promoting
consumer education and information. The strong growth potential of the country has also made
international players to look at the Indian insurance market. Moreover, saturation of insurance
markets in many developed economies has made the Indian market more attractive for international
insurance players, according to ‘Booming Insurance Market in India (2008-2011)’.

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CUSTOMER RELATIONSHIP MANAGEMENT:

Changes in customer expectations can be identified throughout the world. Customer

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

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innovation and entrepreneurship as well as high levels of both industrial and information
technology. Less-developed economies (such as Bulgaria, Bangladesh and Ethiopia) have political
instability
(sometimes political anarchy), government inefficiency, low standards of living and low levels of
economic wealth. An emerging market (or developing economy) is defined as markets that are in
the process of evolving to becoming developed (i.e. higher income). Developing economies have
the following characteristics:
- Improving educational standards, literacy and work skills levels
- Relatively efficient technology systems
- Relative political stability and a movement towards market-based economies
- Rapidly expanding financial services.

The characteristics of developing economies as listed above form part of the imperatives for the
implementation of CRM. CRM includes the use of technology in the building of databases and the
use thereof to develop and improve the relationship with the various markets, including the final
consumer. In order to exploit this technology, skills among staff are required. Organizations within
developing markets have customer information in databases, though many do not have the
advanced technology or skills to exploit the information that is stored. This indicates that CRM can
be used within developing markets, though organizations will still be required to manage its
implementation with care.
The answer to this question has to be no. The reason for this is that not all organizations have
customer information, which makes the implementation of CRM impossible. Examples of these
products include mass products. Further, businesses where there is a high customer churn (where
customers remove their patronage) or where there is a low Customer Lifetime Value (CLV) which
impacts on the profitability of the organization is not suitable to the implementation of CRM. These
are true, irrespective of the nature of the economic development within markets. It can thus be said
that CRM is appropriate for certain organizations in emerging markets.
Organizations that can implement CRM successfully are those that have a great deal of
information concerning the customer and where there are differentiated needs among the customers.
Financial services meet the criteria for the implementation of CRM. Financial institutions have a
great deal of information concerning their customers and their needs differ. This means that banks
offer different products to different customers. Some customers require a mortgage bond in addition
to their current account and credit card, while for other customers, vehicle financing is more
important. The financial circumstances of customers differ, resulting in different packages being
offered to customers. It is also possible for financial institutions to tailor their packages thereby
making them customer specific.
Talking particularly about insurance sector like IDBI FEDERAL Life Insurance Co. Ltd.,
different customers has different needs therefore it is necessary to differenciate and segmenting the
customers according to their needs and requirements. Like some customers are interested in Wealth
insurance while some are interested in income Insurance and some are in Retiresurance. Therefore

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it is the duty of the marketers to understand the needs of the customers and segment the customers
accordingly. The customers should be targeted after properly having the full information of the
financial circumstances of the customers and offer the package accordingly.

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

About the sponsors of IDBI FEDERAL Life Insurance Co Ltd:

IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial development
bank. Created in 1956 to support India’s industrial backbone, IDBI Bank has since evolved into a
powerhouse of industrial and retail finance. Today, it is amongst India’s foremost commercial
banks, with a wide range of innovative products and services, serving retail and corporate
customers in all corners of the country from over 700 branches and more than 1180 ATMs. The
Bank offers its customers an extensive range of diversified services including project financing,
term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate
advisory services and legal and technical advisory services to its corporate clients as well as
mortgages and personal loans to its retail clients. As part of its development activities, IDBI Bank
has been instrumental in sponsoring the development of key institutions involved in India’s
financial sector – such as the Securities and Exchange Board of India (SEBI), National Stock
Exchange of India Limited (NSE) and National Securities Depository Ltd.
Fortis is an international insurance group composed of AG Insurance, the overall market
leader in life and non-life insurance in Belgium, distributing its insurance products through the
network of BNP Paribas Fortis Bank and independent insurance brokers, and Fortis Insurance
International with subsidiaries in the UK, France, Hong Kong, Luxembourg (Non-life), Germany,
Turkey, Russia and Ukraine, and joint ventures in Luxembourg (Life), Portugal, China, Malaysia,
Thailand and India.
Federal Bank is one of India’s leading private sector banks, with a dominant presence in the
state of Kerala. It has a strong network of over 660 branches and 690 ATMs spread across India.
The bank provides over four million retail customers with a wide variety of financial products.

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Federal Bank is one of the first large Indian banks to have an entirely automated and interconnected
branch network. In addition to interconnected branches and ATMs, the Bank has a wide range of
services like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards,
online bill payment and call center facilities to offer round the clock banking convenience to its
customers.

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PRODUCT RANGE INCOMESURANCE:

Incomesurance not only gives you unmatched transparency and flexibility but there are lots
of other features which are inbuilt in the product like convenient premium payment options, Tax
benefits and double advantage of Endowment and Money Back plan.
Incomesurance combines Endowment and Money Back benefits into one plan. You can get
periodic payments as in Money Back or get a lump sum at maturity as in Endowment. You can
make it into an Endowment plan or Money Back plan, as you wish.

WEALTHSURANCE:
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals. However, unlike other investment alternatives, it also enables you to achieve your
wealth goals even in the event of unexpected death, accidents, disablement or serious illness.
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits.
With Wealthsurance Foundation Plan, you can:

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- Save into the Plan as much money as you want whether at one time, at regular intervals or
as per your convenience.
- Build your wealth by choosing the investments your savings go into and change them from
time to time as you wish.
- Get adequate life insurance cover with a unique built-in terminal illness benefit, so that the
financial security of your loved ones is assured and your plans are always realized.

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

HOMESURANCE:
The Homesurance Protection Plan is a reducing term plan, which provides insurance cover
equal to the outstanding balance of your home loan. In the unfortunate event of death of the home
loan borrower, the insurance cover enables repayment of the home loan liability.
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were not
to be there, it could become a serious burden to the family. The Homesurance Protection Plan
protects against this liability.

BONDSURANCE
Bondsurance is a single premium plan which allows you to make a one-time investment and
get a guaranteed amount on maturity. You can choose a maturity period of 5 or 10 years for your
investment. At the end of the chosen period, you will receive a guaranteed maturity amount.
Besides the guaranteed maturity amount, Bondsurance also provides a life insurance cover.
In case of death before the maturity date, a Death Benefit which is also guaranteed will be paid.
Thus you can get life insurance cover, while earning an assured return on your investment.

RESEARCH DESIGN:

RESEARCH OBJECTIVES:

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The primary research objective is to determine how the implementation of a CRM program
could optimize the relationship between IDBI FEDERAL Life Insurance Co. Ltd. and its clients,
and thereby to gain competitive advantage in the market. In order to achieve this objective, it is
necessary for me to approach the common people to know their mind set and perception about
insurance and features they are looking in any insurance policy. Also have to know about the
strategies adopted by different companies to maintain customer relationship. For this purpose, two
types of questionnaires have been designed:
1. B2C i.e. Business To Customer for the common people
2. Other one for the employees of the companies.
The purpose of designing B2C questionnaire is as follows: To know the mind set of the
people before taking any insurance policy. Features which the people consider the most while
taking any insurance policy and work on to strengthen that feature. Remove the current pitfalls and
improve customer relationship. Segmenting the customers on the basis of their expectations.
Positioning the customers. Work on the customer acquisition and retention. Developing a customer
database and planning to do multi- level marketing based on the responses by the people and
generate business.
The purpose of designing questionnaire for the employees is as follows: To know about the
strategy adopted by different companies which provide intangible services and implementing that
strategy in IDBI FEDERAL. To compare policies followed by other companies with that of IDBI
FEDERAL.
To focus on their marketing efforts to build customer relationship and work on the same. To
know the strategies adopted to retain the existing customers.

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

DATE SOURCE:
For this project both primary and secondary data were the most valuable source of
information.

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Secondary data:-
Secondary data provide a starting point for research and offer the valuable source of
information. The secondary data was the most important source of information for my project
because I will have to do the comparative analysis of the strategies followed by various competitors
of IDBI FEDERAL. It also helps me in doing the comparison of various financial products like
Incomesurance and various types of ULIPs under Wealthsurance. I have gone through the sites of
the following insurance companies to gather the required information and have done the
comparative analysis: LIC, ICICI Prudential Life Insurance, HDFC Life Insurance.

Primary data:-
Primary data are data freshly gathered for a specific purpose. The various sources of
primary data for my project are as follows.
 IT companies
 Local residents.
 Insurance Companies
 Shopping malls

RESEARCH APPROACHES:-
After collecting the secondary data or information from the secondary sources then I started
collecting from primary sources to narrow down my research. There are basically five ways to
collect data.

 Survey Research: - This method was the most appropriate way to collect data. And I have
used this method in my project to find out the perception of the different people about IDBI
FEDERAL Life Insurance Co. Ltd.
 Observational Research:- This method was not used by me in my project because this
survey have no use for me.
 Focus-group Research: - This method is also not used by me in my survey.
 Behavioral data:-This method was also not used by me in my survey.

THE RESEARCH INSTRUMENT:

The research instrument is used to measure the perception and expectation of the
respondent. There are various ways of research instrument of collecting primary data, the various
methods are:-
1. Questionnaires.

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2. Psychological tools.
3. Mechanical Devices.
4. Qualitative Measures.
From the above mentioned research instruments I had used only Questionnaires technique to
find out the various information about the clients such as their turnover, chartered accountant,
investment behaviors, who is their financial consultant etc. And this was the technique which I felt
the best way to extract information about the client.
The survey was conducted among the people of different age groups and occupation through
the Questionnaire (B2C) and among the employees of the different companies providing intangible
services. The questionnaire was designed on the basis of LIKERT SCALE due to which it becomes
very easy to analyze the responses given by the people.

SAMPLING PLANS:-
After collecting entire data and deciding on the research approach and instruments, now I
had to decide on the sampling plan which was one of the important tasks, because from the bunch
of people I had to select only those people, whom I can target from now onward .There are two
ways of sorting the data.
- Sampling Unit: - who is to be surveyed? And now my task was to define the target
population, which will be sampled from the number of people.
- Sample Size: - large sample give more reliable result than small sample, so for this reason I
had taken around 160 people for B2C questionnaire and 50 people for the employees of the
companies.

CONTACT METHODS:-
Once the client had been decided now my task was how to contact them, and for me there
are only two ways of contacting them.
1. Personal Interview: - this method was the most appropriate way of survey, because by
personal interview I came to know their feeling about IDBI FEDERAL, their personal behavior and
many more things.
2. Telephone: - This method is also used by me for once, because the client had no time for
me, and there was no other option for me.

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DATA ANALYSIS SECONDARY DATA ANALYISIS IDBI FEDERAL offers a different

variety of schemes and a good range of ULIPs. There are a lot of ULIPs under the flagship banner
Wealthsurance, Bondsurance, Homesurance and Retiresurance.
I have done the comparative analysis of money back scheme which is called incomesurance
and ULIPs under Wealthsurance. Analysis of ULIPs has been done under the flagship banner
wealthsurance and the companies undertaken for the study are:
- LIC INDIA
- ICICI Prudential
Comparative analysis of money back schemes of IDBI FEDERAL which is called Incomesurance
has been done taking the following companies under consideration: LIC INDIA
- SBI Life Insurance Company
- ICICI Prudential
- MetLife

COMPARATIVE ANALYSIS OF IDBI FEDERAL LIFE

INSURANCE CO. LTD. WITH OTHER COMPETITORS:
PRODUCT – WEALTHSURANCE

I. IDBI FEDERAL LIFE INSURANCE CO. LTD.

Minimum entry age(yrs) 30 Days

Maximum entry age(yrs) 65
Maximum maturity age(yrs) 75
Min. premium 10000
No. of funds 7

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Min. premium payment term(yrs) 3

II. LIFE INSURANCE CORPORTAION (LIC) OF INDIA

LIC offers 3 different types of ULIPs under flagship banner wealth insurance: a. MARKET
PLUS b. PROFIT PLUS (RP & SP) c. FORTUNE PLUS ADBR-Accidental Death Benefit Rider,
CIBR-Critical Illness Benefit Rider
Market Plus
Profit Plus (RP & SP)
Fortune Plus
Minimum entry age(yrs)
18
0
12
maximum entry age(yrs)
70
65
60
maximum maturity age(yrs)
75
70,75
65
min. premium
10000
20000
20000
No. of funds
4
4
4
Min. premium payment term(yrs)
5
3
5

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

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

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

IV. After 3 years we can go for unlimited partial withdrawals as against in this product there are no
partial withdrawal available.
PROFIT PLUS (RP & SP)
I. Premium allocation charge is 15% min in this product where as Wealthsurance has a charge of
Max 4%.

II In Wealthsurance there is unlimited switching redirection and partial withdrawal allowed

absolutely free of charge.

III. There are no riders available in this product as against Wealthsurance has a host of riders to
choose from.
FORTUNE PLUS
I. Min Entry age in Wealthsurance is 0 years as against in this product it is 12 years

II. Max entry age in Wealthsurance is 65 years as against in this product it is 60 years only.

III. ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI PRUDENTIAL OFFERS 5 DIFFERENT TYPES OF ULIPs

a. LIFE TIME GOLD
b. LIFE LINK SUPER
c. PREMIER LIFE GOLD
d. LIFE TIME PLUS
LIFE TIME GOLD I. Premium allocation charge is premium
based in this product where as Wealthsurance
has a charge of Max 4% and with higher
premium the allocation charge decreases.

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II. Min Premium in Wealthsurance is only

Rs.10000 as against in this product it is 20000
III. In Wealthsurance there is unlimited
switching redirection and partial withdrawal
allowed absolutely free of charge.
LIFE LINK SUPER I. Premium allocation charge is 20% in this
product where as Wealthsurance has a charge
of Max 4%.
II. Min Premium in Wealthsurance is only
Rs.10000 as against in this product it is 20000
III. In Wealthsurance there is unlimited
switching redirection and partial withdrawal
allowed absolutely free of charge.
PREMIER LIFE GOLD I. Premium allocation charge is 12% in this
product where as Wealthsurance has a charge
of Max 4%.
II. There are no riders available in this
product as against Wealthsurance has a host
of riders to choose from.
III. In Wealthsurance there is unlimited
switching redirection and partial withdrawal
allowed absolutely free of charge
LIFE TIME PLUS I. Premium allocation charge is 25% in this
product where as Wealthsurance has a charge
of Max 4%.
II. Min Premium in Wealthsurance is only
Rs.10000 as against in this product it is 20000
III. In Wealthsurance there is unlimited
switching redirection and partial withdrawal
allowed absolutely free of charge
LIFE STAGE I. Premium allocation charge is 25% in this
product where as Wealthsurance has a charge
of Max 4%.
II. Min Premium in Wealthsurance is only
Rs.10000 as against in this product it is 20000
III. In Wealthsurance there is unlimited
switching redirection and partial withdrawal
allowed absolutely free of charge
IV. There are only 2 riders available in this
product as against Wealthsurance has a host
of riders to choose from.

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COMPARATIVE ANALYSIS OF IDBI FEDERAL WITH ITS

COMPETITORS
The analysis is done on the basis of Questionnaire designed for the employees of the
different companies providing intangible services (Refer to APPENDIX- I). Sample size taken is 50
in numbers. Here, the companies taken into consideration are different competitors of IDBI
FEDERAL in order to understand the strategies adopted by them to maintain customer relationship.

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PRIMARY DATA ANALYSIS

I have done a detailed survey in Coimbatore city to understand and study the consumer’s
responses. The primary data was collected through questionnaires. There are two types of
questionnaires designed for this purpose. One for the employees of the different companies
providing intangible services i.e. B2B to know about the strategies adopted by various companies to
maintain the customer relationship and other one is for the common people i.e. B2C to understand
the mindset of the people towards insurance industry.

I. ANALYSIS OF B2B QUETIONNAIRE (Refer to APPENDIX- I).

Sample size taken is 50 in numbers. The sample includes the responses of the employees of
the companies who have given the main reason for their customers to choose their respective
companies and 50% of them considered their services as the main reason for the customers to
choose their company.

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

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

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When asked about the time taken by them to resolve customer complaints, around 70 % of
them take 1 to 3 days to resolve the customer complaints.

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

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

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II. ANALYSIS OF B2C QUESTIONNAIRE (Refer to Appendix – II)

Sample size taken is 155-160 in numbers
This questionnaire was mainly formulated to target the common man to see his perception
and awareness of various investment options available. The sample of respondents was carefully
selected covering people in all age groups and with different backgrounds and occupations. The
analyses of these questionnaires give us an insight about the mindset of people regarding various
investments.
I have also used factor analysis in SPSS to extract the prominent factors influencing the
investment decisions of the customers. Customer preferences as to where they would like to invest
have been studied. Also we come to know about the preferences given by customers towards
various top life insurance companies and their reasons for it. Here we see that most of the
customers invest regularly from quite some time but since the last few months their investments
have come down due to recession and market slowdown. Following is the analysis of the primary
data collected through questionnaires. The sample included respondents from all the age groups out
of which people in the age group 30-40 constituted around 60%.

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

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

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

This is due to the following reasons:

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

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Around 63% of the respondents owned an insurance policy in LIC which clearly shows that
LIC still continues to be the market leader in as it has been since the last 50 years or so in spite of
the presence of various powerful private players which are still finding hard to capture a major
market share. Around 13% of respondents chose ICICI Prudential.
Following is the rating (from 1-5, 1-bad, 5-best) given by respondents to the five selected
life insurance companies. Here we can clearly see that LIC has the best rating. The reasons given by
the respondents were that LIC was a public sector company which is well established and has got
loads of experience

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

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

The data collected was statistically analyzed by making use of the following tools:
1. Frequency distribution table
2. Pearson’s co-efficient r
3. Charts and graphs

The responses of each respondent were carefully analyzed and the key features of the
insurance policy were extracted thereafter.
The coding is done like: Strongly disagree – 1.Strongly agree to 5. Strongly Disagree
The responses which were missed by the respondents during the survey are given code as 6.

1. Long term investment is favorable

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

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

2. Investment in financial Products is beneficial

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

INSURANCE COVERAGE

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High Returns:

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SERVICE DIFFERENTIATION

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FLEXIBLE INVESTMENT OPTION

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RISK INVOLVED

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SERVICES

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CREDIBILITY:

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TAX BENEFIT:

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CUSTOMIZATION OF PRODUCTS AND SERVICES:

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INTERPRETATION:

IMPORTANCE – PERFORMANCE ANALYSIS Based on the TABLE - VII, below shows

the features which IDBI FEDERAL Life Insurance Co. Ltd. is required to focus to develop the
customer relationship.

The above Importance-Performance chart reflects the issues which are very important in the
insurance sector but are under performed by IDBI FEDERAL. So it needs to focus on these
parameters to build up the customer relationship.
It also shows the issues which IDBI FEDERAL is performing well and that are also required by the
insurance sector to run well among the competitors.
As all the issues are quite important for customer relationship, so none of the issue can be given low
priority.

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As IDBI FEDERAL is a new comer in this field, so none of the issue can be observed as
possible over skill of IDBI FEDERAL.
Following are main extracted prominent factors that influence the consumer and that help in
building relationship with the customer are:
1. Customer services
2. High returns associated with insurance policy.
3. Minimum Risk involved
4. Customization of services
5. Product differentiation
6. Tax benefit from the insurance policy.
7. Flexible investment options
When rating the above extracted factors based on the importance given by the respondents,
customer service is the most prominent feature associated with the insurance policy in order to
maintain the customer relationship as 43% of the respondents preferred of getting good service
from the insurance company they are dealing with.

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

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ASSOCIATION OF OTHER FACTORS WITH CUSTOMER SERVICE

The association of other factors with the customer service is statistically analyzed as they are
also the prominent factors and affects the customer relationship. The association is done by
evaluating the Pearson’s co-efficient between the two variables. The value of Pearson’s co-efficient
falls between -1.0 to +1.0 which indicate the strength and direction of association between the two
variables. The formula used in order to calculate the Pearson’s co- efficient is: R = SUM [(XI-X)
(Y1-Y)] / [SUM (XI-X) ^ 2 * SUM (YI-Y) ^ 2] ^ ½ Where: X is the mean of the responses by the
respondents of customer service X1 is the individual responses by the respondents of customer
service Y is the mean the responses by the respondents of other factors Y1 is the individual
responses by the respondents of other factors

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

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

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

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R = 0.236 Since -1.0 < 0.236 < +1.0 Sine the value of R is positive therefore it shows that the
relationship between the two is moderately positive. Since its value is positive it shows that the
possibility of assuring high returns is increased if customer service is increased.

3. Increase in the customer service level will increase the flexibility in the investment option of
the customers.

R = 0.8806
Since -1.0 < 0.8806 < +1.0
The value of R is positive therefore it shows that there is a strong positive relationship between the
two variables. Since its value is very high it shows that if the level of customer service increased,
the customer will get better flexibility in their investment.

4. Increase in the customer service level will provide better tax benefit opportunities to the
customers.

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R = 0.799 Since -1.0 < 0.799 < +1.0 Sine the value of R is positive therefore it shows that there is a
positive relationship between the two variables. Since its value is positive it shows that if the level
of customer service increased more will the level of customized service provided to the customers.

5. Better customer service will help to avoid any risk associated with the particular insurance
policy.

With Pearson value r of 0.2367, the correlation is positive, but the value is very less. Hence
by increasing the level of customer service will help to minimize the risk that is associated with a
particular insurance policy.

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Different ways of proving good customer service:

1. Going direct to the customer: The biggest current shift in the insurance market means big
changes for customer experience. Because of heightened competition from many of the newer,
more Internet-driven insurance providers, several of the older, well established insurance
companies are investing significant resources to move more towards a direct-to-consumer business
model and away from their traditional model, which has relied heavily on third-party brokers or
captive or independent insurance agents in the field. This will help to maintain the customer
relationship as they have greater control of the company brand and more access to customer data.
2. Becoming more customer centric: In order to master providing a consistent – and
consistently positive – customer experience, insurance companies must rebuild their organizations
and their contact centers around the customer. They need to become customer-centric rather than
policy-centric.
3. Effectiveness and Efficiency in the Contact Center: Operational issues in the contact
center plague many large organizations and insurers are no different. Some of these issues include:
Inefficiencies – While there is evidence that this is improving, the insurance industry is plagued
with departmental silos and inefficiency.
Inflexible systems - Insurers are dealing with old, monolithic systems and are hesitant to
replace them because they have 100 years worth of data… but they need flexibility across systems
and product lines in order to be able to sell more integrated products.
CSR churn - Insurance providers already experience a very high CSR churn rate in their call
centers, relative to other industries. This results in significant expense to the company in terms of
training and recruitment and can negatively impact customer experience. One of the top reasons
CSRs leave their jobs is because of the difficult systems and technology they need to learn.

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Provincial thinking – Insurance providers as a whole are rather infamous for their ‘we can build it
in IT’ culture. This tends to cripple insurance IT resources, and the customer service operation
continually falls down the IT priority list.
Desktop complexity - insurance companies have more than 20 applications and tools on the
desktop. That means that CSRs, who are supposed to provide quality and timely service to
customers on each call, end up navigating through dozens of non-integrated applications. These
business applications were all implemented to satisfy the needs of other departments: the financial
department needs a billing system, the marketing department needs a CRM system, and the claims
department needs a claims system. And the poor CSR taking the customer’s call needs to access the
data in ALL of those systems, resulting in the CSR’s desktop becoming complete chaos, with
dozens of open applications and tools, each of which contains important – but siloed – information.
This is why it can take several months just to get new insurance CSRs up to speed, let alone fully
productive, and it is a major contributor to the very high churn rate which insurance contact centers
experience.

4. Honest about the policy – CSRs are required to be honest about the policy. As the
customers are very conscious these days, they want clarifications of each and every question before
taking any insurance policy.
5. Avoid false Selling – As insurance is a business of developing trust with the customers
therefore CSRs are required to avoid the false selling to their customer as it will ruin the
relationship when the customer gets to know the truth.

FINDINGS:
1. LIC, ICICI Prudential and HDFC offers various ULIPs under the same banner i.e.
wealthsurance as compared to IDBI FEDERAL. Hence they give more flexibility to the customer
which help to optimize the relationship with the customer.
2. The major competitive forces which are necessary to build the strong customer
relationships are: Better quality Low cost. Reliability – delivering on promises Responsiveness –
willing to help Brand Image 3. People are more willing to invest in Life insurance products as
compare to Non-Life insurance products.
3. In the insurance sector LIC is the number one company prefer by the people as its market
is very high as compare to other insurance companies.
4. Better customization of the product helps to strengthen the relationship with the
customer.
5. Most of the insurance companies consider Customer Service as the main reason for the
customers to choose their company.

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6. Most of the insurance companies prefer monthly and weekly basis to communicate with
their customers.
7. Telephone is the most preferred mode of communication by the services companies.
8. Product differentiation and customer centric approach is the most preferred approach by
the companies.
9. Most of the respondents look for long term investment with the preferred company.
10. Customer Service is the prime reason given by the respondents behind taking any
insurance policy.
11. Bank deposits, mutual funds and insurance are considered to be the most preferred
investment instrument by the respondents.
12. Most of the respondents feels that high risk is involved in ULIPs.

RECOMMENDATIONS:
1. The company should constantly come out with innovative products as the competition is
very tough with around 22 companies fighting hard for the market share. Some new innovative
ideas have been suggested below.
An insurance plan for the unborn babies. The premium payment term could be for 6 months
and it could start once the fetus is 3 months old inside the mother’s womb. There could be various
benefits under this plan for the customers like in case of a premature or a complicated birth the
company would bear the expenses till the baby is healthy again through the insurance policy. Also
there could be death benefits in case of the death of the baby inside the womb or at the time of
delivery. This plan could really be successful as in India there are lot of premature child deaths and
if the company comes out with a plan like this very tactfully with some implied conditions it would
be the first Indian company to offer insurance to unborn babies.
An insurance plan for mentally retarded and physically handicapped people. This might be
hard to digest but if at all plans like these are possible and really come out then a good amount of
Indian population would really be interested.
The company could also come out with a plan for both the husband and wife where
automatically the wife gets insured along with her husband when her husband purchases the policy.
This could also be the other way round. This could be called the combo family plan. In simple
words it means buy one policy and get another free. No other company has done something like this
till now.

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2. IDBI FEDERAL should focus on its customer services as more and more people are
inclined to this feature of the insurance policy which helps to acquire more customers and retain the
existing one.
3. As the company is a new company it has to really work hard to get itself promoted. The
company could start sponsoring major events and conduct talk shows and seminars to get noticed. It
could also take the help of NGOs. There are many people in India who still do not know about the
concept of insurance. The company could take this as an opportunity by trying to create awareness.
4. IDBI FEDERAL should increase the number of plans under its products to give more
flexibility to the customers so that they get better options and take their decisions as per their needs
and requirements.
5. It should bring effective communication and efficiency in its contact center in order to
avoid any chaos and problem at the customer end in order to develop strong relationship with them.
6. IDBI FEDERAL should adopt face to face interaction with its customers as the
customer’s expectations are fluctuating day by day so to overcome that it is required to understand
the need and behavior of the customer in a better way which can be done by face to face interaction
with him.
7. The company should contact its customers on the monthly basis in order to make
continuous interaction with them and taking regular feedback to improvise their operations.
8. The company should make some innovative strategy to build loyal customers and retain
the existing one so that they can make long term relationship with the company.
9. IDBI FEDERAL should launch the open source software as it is seen that there’s lack of
awareness about the company in the market.
10. The company should target the consultancy companies for its promotion.
11. The company should not target that people only who are earning but much before that.
To gain the „early bird’ advantage they must organize sessions in the schools and colleges giving
explanations on life insurance. This will make the younger generations more responsible making
them go in for insurance in a big way at the earliest thus making IDBI FEDERAL the ultimate
beneficiary to enjoy the income from the customers from the very beginning of their service lives
and make them as a long term customers.
12. The company needs to understand the consumer buying behavior and formulate its
policy accordingly.

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CONCLUSION:

Here I conclude that the summer internship program, done in IDBI FEDERAL Life
Insurance Co. Ltd, for partial fulfillment of the MBA program in ICFAI Business School (IBS)-
Coimbatore has been completed successfully. Following are the achievements done during the
summer internship from 16th February 2010 to 25th May 2010:
a. Survey done with interest of IDBI FEDERAL has been conducted successfully and
results are discussed above.
b. The experience gained during the internship has sharpened my research and analytic
skills and had given me a great ‘On the field’ experience.

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ANNEXURE – I:
QUESTIONNAIRE (B2B)

Name of Employee: ________________________________________________________

Address: _________________________________________________________________
Tel.No.: ____________________________ Mob No: ______________________________
Email ID: _________________________________________________________________

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

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e) Strongly disagree
2. What do you think is the main reason for customers to choose your company?
a) Service
b) Product
c) Reliability
d) Image
e) Others ______________________________
3. How often you contact your customer?
a) Weekly
b) Monthly
c) Quarterly
d) Half yearly
e) Annually
4. What medium your company choose to reach the customer?
a) Personally
b) Telephone
c) Mails
d) Email
e) Others ________________________________________
5. How much time you take to resolve the customer complains?
a) 1 to 3 days
b) 3 to 6 days
c) 6 to 9 days
d) More than 10 days
e) Others
6. How does the company differ itself from these competitors?
a) Brand image
b) Product differentiation

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c) Customer centric
d) Services.
e) Others______________________
7. What efforts do you put in order to try and establish loyal customers?
a) Providing good services
B) Taking timely feedback
c) Providing gifts and discounts.
d) Maintaining the customer’s data base secretly.
e) Others
8. How do you handle customer feedback? ____________________________________________

ANNEXURE – II

QUESTIONNAIRE – B2C Personal Details of the Respondent:

Name: ________________________
Age:__________________________
Address:_______________________
Telephone:______________________
Occupation: _____________________
Annual Income: __________________

1. Do you own an Insurance Policy?

A. Yes
B. No

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 Customer Relationship Management

2. Reasons behind taking an insurance policy?

1. Risk Coverage Investment purpose
2. Pension schemes
3. Tax Benefit
4. Any other (Please Mention) __________________
3. Have you heard about IDBI FEDERAL Insurance Co. Ltd.?
1. Yes
2. No
4. If Yes, through which distribution channel –
1. Individual agents
2. Bancassurance
3. Distributers
4. Management trainees
5. others
5. Which insurance company’s policy do you own?
1. LIC
2. ICICI Prudential
3. Bajaj Alliance
4. IDBI FEDERAL
5. Others
6. What is the level of service you get from current insurance company?
1. Less Satisfactory
2. Satisfactory
3. Neutral
4. Less Dissatisfactory
5. Dissatisfactory
7. Tick Mark the right option:
QUES. STATEMENT STRONGLY AGREE NEUTRAL DISAGREE STRONGLY
AGREE DISAGREE

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1 Long term 5 4 3 2 1
investment plan is
favorable
2 Investing in the 5 4 3 2 1
financial products
is beneficial
Investment in insurance products is better than the
3 Bank Deposits 5 4 3 2 1
4 Mutual funds 5 4 3 2 1
5 Post office savings 5 4 3 2 1
6 shares and 5 4 3 2 1
debentures
Features you consider before taking the insurance policy
7 Insurance 5 4 3 2 1
Coverage
8 High Returns 5 4 3 2 1
9 Low premium 5 4 3 2 1
amount
10 Flexible 5 4 3 2 1
withdrawals
11 Risk Involved 5 4 3 2 1
12 Services 5 4 3 2 1
13 Credibility 5 4 3 2 1
14 Safety 5 4 3 2 1
15 Reliability 5 4 3 2 1
16 Brand Image 5 4 3 2 1
17 Tax benefit 5 4 3 2 1
18 Customization of 5 4 3 2 1
products, services
and communication
19 Higher investment 5 4 3 2 1
will give higher
returns

8. How would you plan your investment pattern for the next one year?
1. 0-10%
2. 10-20%
3. 20-30%
4. 30-40%
5. 40-50%

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 Customer Relationship Management

6. Above 50%
Shares and debentures…………….

Bank deposits………………………

Mutual funds………………………

Insurance products………………..

Post office savings…………..

Any Suggestions:

REFERENCES:

1. http://www.google.co.in/
2. http://www.licindia.in/ http://www.licindia.in/periodic_moneyback_003_features.htm
3. http://www.sbilife.co.in/sbilife/content/home http://www.sbilife.co.in/sbilife/content/9_817
4. http://www.idbiFEDERAL.com/
http://www.idbiFEDERAL.com/Incomesurance/Why_Incomesurance.aspx?mm=3&lm1=1
5. www.metlife.co.in http://www.metlife.co.in/MetLifeIndPlans_Child_MetJuniorMoneyBack.aspx
6. www.hdfcinsurance.com
http://www.hdfcinsurance.com/Products/SavingsPlans/MoneyBack.aspx
7. www.eagonreligare.com
8. http://www.scribd.com
9. www.irda.org
Other Materials:

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 Customer Relationship Management

- Marketing Management by Philip Kotler.

- Product Brochures.

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