What Is Insurance?

Insurance is a contract between two parties

whereby one party called insurer undertakes In
exchange for a fixed sum called premiums, to
pay the other party happening of a certain
event.
Summer Internship Presentation On
Investment on Insurance –Risk
Return analysis with reference to
HDFC Life

Presented by
SUDHEENDRA M
MBA ( 3rd Semester)
HDFC Standard Life Insurance
(Joint Venture)
 Industry Profile:
 India is the world's fifth largest life insurance market and growing at a rapid pace of 32-
34% annually as per Life Insurance Council studies.

 The insurance sector has gone through a number of phases and changes. Since 1999,
when the government opened up the insurance sector by allowing private companies to
solicit insurance and also allowing foreign direct investment of up to 26%, the
insurance sector has been a booming market. However, the largest life-insurance
company in India is still owned by the government.

 The LIC had monopoly till the late 90s when the Insurance sector was reopened to the
private sector. Before that, the industry consisted of only two state insurers: Life
Insurers (Life Insurance Corporation of India, LIC) and General Insurers (General
Insurance Corporation of India, GIC). GIC had four subsidiary companies.

 With effect from December 2000, these subsidiaries have been de-linked from the
parent company and were set up as independent insurance companies: Oriental
Insurance Company Limited, New India Assurance Company Limited, National
Insurance Company Limited and United India Insurance Company Limited.
 Industry structure
 Currently, a US$41 billion industry, India is the world's fifth largest life
insurance market and growing at a rapid pace of 32-34% annually as
per Life Insurance Council studies.

 Currently, in India only two million people (0.2 % of the total population of
1 billion) are covered under Mediclaim, whereas in developed nations like
USA about 75 % of the total population are covered under some insurance
scheme. With more and more private companies in the sector, the situation
may change soon.

 Indian life insurance industry overview:

 All life insurance companies in India have to comply with the strict regulations laid out
by Insurance Regulatory and Development Authority of India (IRDA).

 Life Insurance Corporation of India (LIC), the state owned behemoth, remains by far
the largest player in the market. The private companies have come out with products
called ULIPs (Unit Linked Investment Plans) which offer both life cover as well as
scope for savings or investment options as the customer desires. These types of plans
are subject to a minimum lock-in period of three years to prevent misuse of the
significant tax benefits offered to such plans under the Income Tax Act.
Insurance companies in India
 Life Insurers in Private Sector

 MetLife India Life Insurance  ING Vysya Life Insurance

 ICICI Prudential  Shriram Life Insurance
 Bajaj Allianz Life Insurance  Bharti AXA Life Insurance Co Ltd
 Max New York Life Insurance  Future Generali Life Insurance Co
 Sahara Life Insurance Ltd
 TATA AIG Life Insurance  IDBI Fortis Life Insurance
 HDFC Standard Life
 AEGON Religare Life Insurance 1
 Birla Sunlife
 DLF Pramerica Life Insurance
 SBI Life Insurance Company Limit  CANARA HSBC Oriental Bank of
ed Commerce LIFE INSURANCE
 Kotak Life Insurance  Star Union Dai-ichi Life Insurance
 Aviva Life Insurance Co. Ltd.
 Reliance Life InsuCompany
 IndiaFirst Life Insurance Company
Limited - Formerly known as AMP
Sanmar LICrance
 Background : Promoters
Housing Development Finance Corporation

 30 Year track record

 Strong public and market acceptance
 Market leader in mortgage finance - 18 Lac homes financed
in over 2400 towns
 11 Lac retail deposit customer based
 Asset base of More than Rs.1500 billion
Standard Life Assurance Company

 Over 175 years experience in Life Insurance

 Assets of US $ 110 Billion

 Voted Life Insurance Company of the decade

by IFA’s in UK
 Company profile:

 HDFC Standard Life was the first private Life Insurance to get license
from IRDA in October 2000.

 HDFC is the majority stakeholder in the insurance JV with 81.4 % stake

and Standard Life holds 18.6%.stake.

 Mr. Deepak Satwalekar is the MD and CEO of this venture.

 The company has covered over 9,59,000 lives year ending March 31, 2008.

 Strength of FCS  has increased to 1,45,000.

 
 HDFC Vision & Values
HDFC Vision

 “The most successful and admired Life Insurance Company, which

means that we are the most trusted company, the easiest to deal
with, offer the best values for money, and set the standards in the
industry, In short,:-
 “The most obvious choice for all”

 HDFC Values

 Values that HDFC life observes while work:

 Integrity
 Innovation
 Customer centric
 People Care “One for all and all for one”
 Team work
 Joy and Simplicity
 Special features of
• Diversified Product Portfolio
• Strict Compliance with Regulations
• Transparent Dealing
• Focus on Long-Term Value
• Focus on Training
• Risk Control Framework
• Need-Based Selling Approach
• Investment Philosophy
• Preferred and Trusted Brand
• Strong Promoter
 Insurance Plans By HDFC-Life
1.Protection Plans:-
 HDFC Term Assurance Plan
 HDFC Premium Guarantee Plan
 HDFC Loan Cover Term Assurance Plan
 HDFC Home Loan Protection Plan
 2.Savings & Investment Plans

 HDFC Endowment Assurance Plan

 HDFC SL Crest
 HDFC SL ProGrowth Super II
 HDFC SL ProGrowth Flexi
 HDFC SL ProGrowth Maximiser
 HDFC SL New Money Back Plan
 HDFC Single Premium Whole of Life Insurance Plan
 HDFC Assurance Plan
 HDFC Savings Assurance Plan
 Endowment Gain Insurance Plan
 3.Retirement Plans:-

 HDFC Personal Pension Plan

 HDFC Immediate Annuity
 4.Savings & Investment Plans:-
 HDFC Endowment Assurance Plan
 HDFC SL Crest
 HDFC SL ProGrowth Super II
 HDFC SL ProGrowth Flexi
 HDFC SL ProGrowth Maximiser
 HDFC SL New Money Back Plan
 HDFC Single Premium Whole of Life Insurance Plan
 HDFC Assurance Plan
 HDFC Savings Assurance Plan
 Endowment Gain Insurance Plan
 5. Retirement plans
 Unit Linked Investment Plans

 Unit Linked Endowment Plus II

 Unit Linked Young Star Plus II
 Unit Linked Enhanced Life Protection Plan II
 Simpli Life
 Achievements/Awards:

'The Ingenius 100 2009' Award Bold 100 and CIO Security Awards 2008 CIO Bold Award
Organization structure
McKinsey’s 7S Framework
 SWOT ANALYSIS
STRENGTHS
Strong Brand Name .1 WEAKNESS
A large distribution .2
.network Frequent job rotation .1
Customer centric approach .3 by employees
Excellence in Execution .4 Less number of .2
Team Work (Together .5 advertisement
Everyone Achieves More) Hidden Charges .3
.Proactive Innovation .6
Infrastructure .7
OPPORTUNITIES
THREATS
Scope in Jaipur as it is in the .1
.developing phase .LIC’s brand name .1

Only 25% of insurable people .2 People prefer short .2

.have any insurance investment rather than in
.insurance
Can introduce innovative .3
products offering a right mix of Other private .3
.Flexibility/Risk/Return .insurance companies

Share of FDI is going to raise .4

.by 26% to 49%
 FINDINGS

 In HDFC-SLIC I feel that Insurance sector is one of the most

growing sector among all sectors in India.

 I also find that HDFC Standard Life’s Traditional Plans are very
useful for a normal person.

 Jaipur is one of the most growing city and there is lot of scope in
insurance.

 Most of the people are aware of traditional plans.

 Electronic media has proved to be very beneficial for people to

understand about the insurance.
 There is lot of opportunities for young and energetic people in
HDFC SL to build there sound career.

 HDFC Standard Life’s traditional plans like children plan, one

of the most popular product of the company.

 HDFC SL the Certified Financial Consultant have free

environment of working. There is no time boundation.

 The FC’s don’t join the product training in proper manner so

they don’t get the product knowledge properly that’s why they
are not covering the insurance market properly.
 CONCLUSION
 Life insurance service sector is highly growing
finance sector.
 HDFC-LIC is the private insurance organization
which is developing and growing at fast rate.
 Because of less advertisement, people are not aware
of HDFC-LIC insurance plans.
 HDFC Life is renowned for transparency and high
corporate governance standards.  
 BIBLIOGRAPHY
Books:-
1. Agent’s Hand Book – HDFC Standard Life
2. Kothari C.R. Research Methodology & Techniques, 2nd Edition
3. Principles and Practice of Insurance – G.S. Panda

From Company:-
1. Company Reports
2. Company Brochures

Websites:-
www.apnabima.com
www.hdfcinsurance.com
www.indiastat.com
 Company profile:
 HDFC Standard Life, one of India’s leading private life insurance
companies, offers a range of individual and group insurance solutions. It is
a joint venture between Housing Development Finance Corporation Limited
(HDFC), India’s leading housing finance institution and Standard Life plc,
the leading provider of financial services in the United Kingdom.

 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds
26.00% of equity in the joint venture, while the rest is held by others.

 HDFC Standard Life’s product portfolio comprises solutions, which meet

various customer needs such as Protection, Pension, Savings, Investment
and Health. Customers have the added advantage of customizing the
plans, by adding optional benefits called riders, at a nominal price. The
company currently has 32 retail and 4 group products in its portfolio, along
with five optional rider benefits catering to the savings, investment,
protection and retirement needs of customers.
 HDFC Standard Life continues to have one of the widest reaches among
new insurance companies with 568 branches servicing customer needs in
over 700 cities and towns. The company has a strong presence in its
existing markets with a base of 2,00,000 Financial Consultants.

 HDFC Standard Life believes that establishing a strong and ethical

foundation is an essential prerequisite for long-term sustainable growth.
To ensure this, we have concentrated our focus on expansion of branch
network, organizing an efficient and well trained sales force, and setting up
appropriate systems and processes with optimum use of technology. As all
these areas form the basic infrastructure for establishing the highest
possible customer service standards.