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Chakraborty (2007)55 1 in his article traced the challenges faced by the private
players while marketing their products and the measures taken to overcome
them. Lacks of awareness, lack of trust in private insurance companies were
found to be the major challenges. Companies have adopted aggressive
bancassurance strategies, introduced need-based selling instead of push-sale
strategy and introduced innovative products and services to increase their
market share.
Korivi and Venkatesh (2007)56
investors interest over the years because of their high measurement expense
ratio. They proposed to reduce if not mitigate this problem by suggesting lifestyle wraps. These are essentially index funds that will have a term insurance
wrapped around it. The product will satisfy cash flow requirements to support
investors life-style needs.
Sheela and Arti (2007)60 3 in their research paper analyzed the awareness level
of the customers regarding life insurance, preference for different products
1 Chakraborty, J. (2007). Private life insurance companies in India - Growing
prospects and challenges. Insurance Chronicle, VII (VIII), 29-39.
2 Korivi, S. R., & Venkatesh, B. S. (2007). Life-style wraps: Cost-efficient alternative to ULIPs.
Paper prepared at 11th APRIA Conference, National Chengchi University, Taipei, Taiwan, July
22-25, 2007.
offered and from which company. A primary survey was conducted wherein
1206 respondents across 12 sectors participated. It was found that only 42%
have purchased a life insurance policy with money back policy being the most
popular. LIC was the most popular company from which policy was acquired.
The primary motive was found to be saving. However, it was observed that
majority of the respondents who are not having a policy were still not interested
in going for one. Thus, there is tremendous scope for creating awareness to
increase the insurance penetration.
Sisodiya and Gupta (2007)61
multiple benefits like insurance cover, tax benefits and market linked returns.
As a result of this, they were very popular among investors. However, as the
stock prices tumbled, sale of ULIPs came down drastically. This affected the
investors who mistook ULIPs as a means of making short term gains. To correct
the scenario, IRDA came up with guidelines to address the issue of mis-selling
and ensure that investors stay invested for a long term to maximize the
returns.
3 Sheela, P. & Arti, G. (2007). A study on the awareness of life insurance policies in
Vishakhapatnam. Insurance Chronicle, VII (IX), 61-67.
4 Sisodiya, A. S. & Gupta, A. (2007). ULIPs - Longing for long term. Insurance
Chronicle, VII (I), 76- 78.
fund and ULIP. They highlighted the various similarities and differences
between the two and gave illustrative example to compare the charges and
returns.
Chakravarthi (2009)72 6 in his paper focused on the growth of ULIP business in
the country together with some comparisons amongst the insurers operating in
the country also the prospects of ULIP business in the Indian insurance
industry. He analyzed growth of unit linked business with non-linked business
in terms of no. of policies, sum assured, premium, surrenders, etc. he
concluded by stating that if insurers came out with more innovative products,
made proper disclosures, managed their investment more effectively then they
could withstand the current challenges and sustain the growth in life
insurance business in general and ULIP in particular.
Dash, Lalremtluangic, Atwal and Thapar (2009) 73 7 observed that endowment
plans have higher rate of return with mortality incorporated, while for unit5 0 Thapliyal, P. K., Khansili, D. C., & Pant, R. (2008). Mutual Funds versus ULIPs. 9th
Global Conference of Actuaries.
6 Chakravarthi, D. N. (2009). ULIPs in the Indian insurance industry: Status,
challenges and the way forward. 11th Global Conference of Actuaries, Mumbai, India
12-13 February 2009.
7 3 Dash, M., Lalremtluangic,C., Atwal S., & Thapar S. (2009). A Study of Risk-Return
characteristics of life insurance policies. Social Science Research Network.
linked investment plans, the rate of return is higher when it is treated purely as
an investment instrument.
Jham (2009)75
from banks due to existing personal relationship with bank. Major factors
influencing customers attitude towards banks was trust, while for insurance
companies it was insurers expert advice. They concluded by stating that
opportunities exist for banks to cross-sell insurance products.
Johri G (2009)76
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by the private and foreign players have expanded the market for insurance. As
a result of this even though the share of PSUs is larger than their private
counterparts, the percentage of market share is coming down
Sunitha (2009)87
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was found that endowment and money back policies were preferred by majority
of the respondents. She observed that private players were preferred for ease of
forms and effective advertisement while LIC was better in terms of novel policy
features, courteous agents, low premium, reliability, claims settlement and
grievance redressal. Satisfaction index is high for parameters like premium
amount, policy status notice, courtesy of staff, whilst it was low for claim
settlement, easy of forms, bonus, grievance settlement, etc.
Kabra, Mishra and Dash (2010)88
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insurers on the basis of policy features, charges and the performance registered
13 Kabra, G., Mishra, P. K., & Dash M. K. (2010). Factors influencing investment
decision of generations in India: An econometric study. Asian Journal of Management
Research, 1(1), 308-326.
14 Khurana, A., & Goyal, K. (2010). Exploration and analysis of structure and growth
performance of selected ULIPs. International Journal of Business Economics and
Management Research, 1(1), 119-128.
by them. The performance was analyzed for balanced fund and returns were
compared for duration of 3 months, 6 months and 1 year. ICICI Prudentials
wealth advantage plan was found to be good in terms of policy features,
whereas Birla Sun Lifes individual life creator and individual life magnifier
emerged as top two ULIP balanced funds return-wise.
Akula and Kanchu (2011)91
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insurance policy and unit linked insurance policy. They also examined the
growth and risk factors associated with ULIP. They concluded by stating that
ULIPs are preferred by customers for long term investment and generating good
returns
Chandra and Mahendar (2011)94
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15 Akula, R., & Kanchu, T. (2011). Growth of ULIP policies in life insurance sector - A
comparative study of traditional and ULIP policies. Indian Journal of Commerce &
Management Studies, II(2), 190- 199
16 Chandra, S., & Mahendar, G. (2011). Impact of recession on life insurance sector
need for competitive strategies in the post crisis era. International Journal for
Business Strategy & Management, 1(1), 1-11.
Malick, Selvam and Nazar (2011)99 h17ighlighted the robust growth and
potential of life insurance industry. A structured questionnaire was prepared to
find customers awareness on private life insurance players by adopting
convenience sampling. The awareness level is high and through pearson chisquare test it was found that there is significant relationship between the
occupation and awareness of private life insurance.
Chaudhary and Kiran (2011)
95
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industry over a period of five years by comparing the number of offices, agents,
premium and other variables like lapse ratio and settlement of death claims.
Kumar, Murali and Bharath (2011)98 19 undertook a survey to understand the
customers perception about ULIP and the factors in favor of acquisition of
ULIP. 25 factors were identified and a factor analysis test revealed that factors
like Tax benefits are high, Transmission, Switching of Options within the fund,
Risk coverage, Life Coverage plays a prominent role in bringing customer
17 9 Malick, T. V., Selvam, V., & Nazar, N. A. (2011). Robust awareness on Indian
insurance industry in tier three cities. International Journal of Research in
Commerce, IT & Management, 1(5), 101-104.
18 Chaudhary, S., & Kiran, P. (2011). Life insurance industry in India - Current
scenario. International Journal of Management and Business Studies, 1(3), 146-150
19 Kumar, S. A., Murali, R., & Bharath, S. (2011). An empirical study-Consumers
preference towards unit linked investment plan (ULIP). SRM Management Digest, 9,
123-133.
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insurance sector and its opening up to private players saw a huge rise in
premium income. The no. of insurance offices, agency force has also showed an
20 Malick, T. V., Selvam, V., & Nazar, N. A. (2011). Robust awareness on Indian
insurance industry in tier three cities. International Journal of Research in
Commerce, IT & Management, 1(5), 101-104.
21 Rao, K. N. (2011). Study of rural insurance market in India with special reference to life
insurance. (Doctoral Thesis, Faculty of Management Science, Jawaharlal Nehru Technical
University, Hyderabad, India)
increase of more than 200%. However, it was observed that growth was more
urban centric and rural penetration hardly increased by 5%.
Venugopal (2012)12822 in his case study on Enhancing productivity in life
insurance observed that insurance companies face a formidable task in
achieving a reasonable level of productivity. This is possible by hiring
competent agents to sell the products. Such competent agency force can be
built after a careful screening process and a focused training programme.
Those who are trained and hired need to be retained and the retention strategy
that could be adopted should include among others suitable rewards system.
Achievement of this will lead to better acceptance of insurance product in the
market.
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