Vous êtes sur la page 1sur 57



To Analyse and Formulate Marketing Plan & Strategies

for Birla Sun Life Insurance Products


SIES College of Management Studies




BATCH: 2015-2017




I, Mr. Mayur Baitule , studying in the second year of Master of Management studies (MMS)
at SIES College of Management Studies, Nerul, Navi Mumbai, hereby declare that I have
completed the Capstone Project titled To Analyse and Formulate Marketing Plan &
Strategies for Birla Sun Life Insurance Products as a part of the course requirements for
MMS Program.

I also declare that the work undertaken by me is original and has not been copied from any
sources. I further declare that the information presented in this project is true and original
knowledge and has not been submitted to SIESCOMS or any other Institute for any other

Signature of the Student


Name of the Student: Mayur Baitule

Roll No.: 27

Certificate by Faculty Project Guide

This is to certify that Mr. Mayur Baitule studying in the second year of Master of
Management studies (MMS) at SIES College of Management Studies, Nerul, Navi Mumbai,
has completed the Capstone Project titled To Analyse and Formulate Marketing Plan &
Strategies for Birla Sun Life Insurance Products as a part of the course requirements for
MMS Program.

Signature of the Faculty Guide

Name: ___________



I would like to express my gratitude to Mr. Parag Amin for being a wonderful project
I would also like to express my sincere thanks to all the people who took precious
time out of their busy work schedules and helped me with the data required to
complete this project.

(Name of the Student)
Mayur Baitule



This project has been a great learning experience for me, at the same time it gave me enough
scope to implement my analytical ability. The first part gives an insight about the Insurance.
It is purely based on whatever I learned at Birla Sun Life. One can have a brief knowledge
about Insurance and all its basics through the project. Other than that the real servings come
when one moves ahead.
At BIRLA SUN LIFE, initially the trainees were imparted process and product knowledge.
They were given sufficient time to know about the products and also about sales and
distribution channel. The main aim was to formulate marketing strategies for Birla Sun Life
Insurance that would help build a strong brand image.
The second part includes formulating marketing strategies on the basis of the knowledge we
gained about the products of Birla Sun Life Insurance.
Birla Sun Life had a comparatively less presence in the market with respect to marketing
their products.

There was a need to gain a market presence as for past 3 years Birla had not been investing
much in marketing their products. In todays scenario, where companies are adapting
aggressive marketing, Birla needed a strong marketing plan with good strategies that would
help it build a strong brand recall.

Sr Page
No. No.
The roots of insurance might be traced to Babylonia, where traders were encouraged to
assume the risks of the caravan trade through loans that were repaid (with interest) only after
the goods had arrived safelya practice resembling bottomry and given legal force in the
Code of Hammurabi (c.2100 B.C.). The Phoenicians and the Greeks applied a similar system
to their seaborne commerce. The Romans used burial clubs as a form of life insurance,
providing funeral expenses for members and later payments to the survivors.
With the growth of towns and trade in Europe, the medieval guilds undertook to protect their
members from loss by fire and shipwreck, to ransom them from captivity by pirates, and to
provide decent burial and support in sickness and poverty. By the middle of the 14th cent., as
evidenced by the earliest known insurance contract (Genoa, 1347), marine insurance was
practically universal among the maritime nations of Europe. In London, Lloyd's Coffee
House (1688) was a place where merchants, shipowners, and underwriters met to transact
business. By the end of the 18th cent. Lloyd's had progressed into one of the first modern
insurance companies. In 1693 the astronomer Edmond Halley constructed the first mortality
table, based on the statistical laws of mortality and compound interest. The table, corrected
(1756) by Joseph Dodson, made it possible to scale the premium rate to age; previously the
rate had been the same for all ages

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu
( Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kautilya ( Arthasastra ). The writings
talk in terms of pooling of resources that could be re-distributed in times of calamities such as
fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance.
Ancient Indian history has preserved the earliest traces of insurance in the form of marine
trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing
from other countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment of the
Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In
1829, the Madras Equitable had begun transacting life insurance business in the Madras
Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades
of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India
(1897) were started in the Bombay Residency. This era, however, was dominated by foreign
insurance offices which did good business in India, namely Albert Life Assurance, Royal
Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard
competition from the foreign companies.

In 1914, the Government of India started publishing returns of Insurance Companies

in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to
regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the
Government to collect statistical information about both life and non-life business transacted
in India by Indian and foreign insurers including provident insurance societies. In 1938, with
a view to protecting the interest of the Insurance public, the earlier legislation was
consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for
effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were
a large number of insurance companies and the level of competition was high. There were
also allegations of unfair trade practices. The Government of India, therefore, decided to
nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector
and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154
Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign
insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was
reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and
the consequent growth of sea-faring trade and commerce in the 17th century. It came to India
as a legacy of British occupation. General Insurance in India has its roots in the establishment
of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the
Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes
of general insurance business.
1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton
of India. The General Insurance Council framed a code of conduct for ensuring fair conduct
and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum
solvency margins. The Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general
insurance business was nationalized with effect from 1st January, 1973. 107 insurers were
amalgamated and grouped into four companies, namely National Insurance Company Ltd.,
the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United
India Insurance Company Ltd. The General Insurance Corporation of India was incorporated
as a company in 1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending to nearly 200
years. The process of re-opening of the sector had begun in the early 1990s and the last
decade and more has seen it been opened up substantially. In 1993, the Government set up a
committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose
recommendations for reforms in the insurance sector.The objective was to complement the
reforms initiated in the financial sector. The committee submitted its report in 1994 wherein ,
among other things, it recommended that the private sector be permitted to enter the
insurance industry. They stated that foreign companies be allowed to enter by floating Indian
companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body to
regulate and develop the insurance industry. The IRDA was incorporated as a statutory body
in April, 2000. The key objectives of the IRDA include promotion of competition so as to
enhance customer satisfaction through increased consumer choice and lower premiums, while
ensuring the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has
the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from
2000 onwards framed various regulations ranging from registration of companies for carrying
on insurance business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of India were
restructured as independent companies and at the same time GIC was converted into a
national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July,

Today there are 28 general insurance companies including the ECGC and Agriculture
Insurance Corporation of India and 24 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%.
Together with banking services, insurance services add about 7% to the countrys GDP. A
well-developed and evolved insurance sector is a boon for economic development as it
provides long- term funds for infrastructure development at the same time strengthening the
risk taking ability of the country.


What is a life insurance policy?

A life insurance policy provides financial protection to our family in the unfortunate event of your
death. At a basic level, it involves paying small sums each month (called premiums) to cover the
risk of our untimely demise during the tenure of the policy. In such an event, our family (or the
beneficiaries we have named in the policy) will receive a lump sum amount. In case we live till
the maturity of the policy, depending on the type of life insurance policy we have opted for, we
will receive returns the policy may have earned over the years. Today, there are many variations
to this basic theme, and insurance policies cater to a wide variety of needs.

What are the various types of life insurance policies?

Given below are the basic types of life insurance policies. All other life insurance policies are
built around these basic insurance policies by combination of various other features.
1. Term Insurance Policy
A term insurance policy is a pure risk cover policy that protects the person insured for a specific
period of time. In such type of a life insurance policy, a fixed sum of money called the sum
assured is paid to the beneficiaries (family) if the policyholder expires within the policy term. For
instance, if a person buys a Rs 2 lakh policy for 15 years, his family is entitled to the sum of Rs 2
lakh if he dies within that 15-year period.
If the policy holder survives the 15-year period, the premiums paid are not returned back. The
advantage, apart from the financial security for an individuals family is that the premiums paid
are exempt from tax.
These insurance policies are designed to provide 100 per cent risk cover and hence they do not
have any additional charges other than the basic ones. This makes premiums paid under such life
insurance policies the lowest in the life insurance category.

2. Whole Life Policy

A whole life policy covers a policyholder against death, throughout his life term. The advantage
that an individual gets when he / she opts for a whole life policy is that the validity of this life
insurance policy is not defined and hence the individual enjoys the life cover throughout his or
her life.
Under this life insurance policy, the policyholder pays regular premiums until his death, upon
which the corpus is paid to the family. The policy does not expire till the time any unfortunate
event occurs with the individual. Increasingly, whole life policies are being combined with other
insurance products to address a variety of needs such as retirement planning, etc. Premiums paid

under the whole life policies are tax exempt .

3. Endowment Policy
Combining risk cover with financial savings, endowment policies are among the popular life
insurance policies.Policy holders benefit in two ways from a pure endowment insurance
policy. In case of death during the tenure, the beneficiary gets the sum assured. If the
individual survives the policy tenure, he gets back the premiums paid with other investment
returns and benefits like bonuses. In addition to the basic policy, insurers offer various
benefits such as double endowment and marriage/ education endowment plans.The concept
of providing the customers with better returns has been gaining importance in recent times.
Hence, insurance companies have been coming out with new and better ULIP versions of
endowment policies. Under such life insurance policies the customers are also provided with
an option of investing their premiums into the markets, depending on their risk appetite, using
various fund options provided by the insurer, these life insurance policies help the customer
profit from rising markets.
The premiums paid and the returns accumulated through pure endowment policies and their
ULIP variants are tax exempt.
4. Money Back Policy
This life insurance policy is favoured by many people because it gives periodic payments
during the term of policy. In other words, a portion of the sum assured is paid out at regular
intervals. If the policy holder survives the term, he gets the balance sum assured.
In case of death during the policy term, the beneficiary gets the full sum assured.
New ULIP versions of money back policies are also being offered by various life insurers.
The premiums paid and the returns accumulated though a money back policy or its ULIP
variants are tax exempt.
5. ULIPs
ULIPs are market-linked life insurance products that provide a combination of life cover and
wealth creation options.
A part of the amount that people invest in a ULIP goes toward providing life cover, while the rest
is invested in the equity and debt instruments for maximising returns.
ULIPs provide the flexibility of choosing from a variety of fund options depending on the
customers risk appetite. One can opt from aggressive funds (invested largely in the equity market
with the objective of high capital appreciation) to conservative funds (invested in debt markets,
cash, bank deposits and other instruments, with the aim of preserving capital while providing
steady returns).
ULIPs can be useful for achieving various long-term financial goals such as planning for

retirement, childs education, marriage etc .

6. Annuities and Pension
In these types of life insurance policies, the insurer agrees to pay the insured a stipulated sum of
money periodically. The purpose of an annuity is to protect against financial risks as well as
provide money in the formof pension at regular intervals.
How does insurance work?
Insurance works by pooling risk. What does this mean? It simply means that a large group of
people who want to insure against a particular loss pay their premiums into what we will call the
insurance bucket, or pool. Because the number of insured individuals is so large, insurance
companies can use statistical analysis to project what their actual losses will be within the given
class. They know that not all insured individuals will suffer losses at the same time or at all. This
allows the insurance companies to operate profitably and at the same time pay for claims that
may arise. For instance, most people have auto insurance but only a few actually get into an
accident. You pay for the probability of the loss and for the protection that you will be paid for
losses in the event they occur.

Life is full of risks - some are preventable or can at least be minimized, some are avoidable and
some are completely unforeseeable. What's important to know about risk when thinking about
insurance is the type of risk, the effect of that risk, the cost of the risk and what you can do to
mitigate the risk. Let's take the example of driving a car.
Type of risk: Bodily injury, total loss of vehicle, having to fix your car
The effect: Spending time in the hospital, having to rent a car and having to make car payments
for a car that no longer exists
The costs: Can range from small to very large
Mitigating risk: Not driving at all (risk avoidance), becoming a safe driver (we still have to
contend with other drivers), or transferring the risk to someone else (insurance).
Let's explore this concept of risk management (or mitigation) principles a little deeper and look at
how you may apply them. The basic risk management tools indicate that risks that could bring
financial losses and whose severity cannot be reduced should be transferred. You should also
consider the relationship between the cost of risk transfer and the value of transferring that risk.
Risk Control
There are two ways that risks can be controlled. We can avoid the risk altogether, or we can
choose to reduce your risk.
Risk Financing
If we decide to retain our risk exposures, then we can either transfer that risk (ie. to an
insurance company), or we retain that risk either voluntarily (ie. we identify and accept the
risk) or involuntarily (we identify the risk, but no insurance is available).
Risk Sharing
Finally, we may also decide to share risk. For example, a business owner may decide that
while he is willing to assume the risk of a new venture, he may want to share the risk with
other owners by incorporating his business. So, back to our driving example. If we could get
rid of the risk altogether, there would be no need for insurance. The only way this might
happen in this case would be to avoid driving altogether. Also, if the cost of the loss or the
effect of the loss is reasonable to us, then we may not need insurance. For risks that involve a
high severity of loss and a low frequency of loss, then risk transference (ie. insurance) is

probably the most appropriate protection technique. Insurance is appropriate if the loss will
cause us or our loved ones a significant financial loss or inconvenience. Do keep in mind that
in some instances, we are required to purchase insurance (i.e. if operating a motor vehicle).
For risks that are of low loss severity but high loss frequency, the most suitable method is
either retention or reduction because the cost to transfer (or insure) the risk might be costly.
In other words, some damages are so inexpensive that it's worth taking the risk of having to
pay for them yourself, rather than forking extra money over to the insurance company each
The Risk Management Process
After you have determined that you would like to insure against a loss, the next step is to seek
out insurance coverage. Here we have many options available to you but it's always best to
shop around. We can go directly to the insurer through an agent, who can bind the policy. The
process of binding a policy is simply a written acknowledgement identifying the main
components of our insurance contract. It is intended to provide temporary insurance
protection to the consumer pending a formal policy being issued by the insurance company. It
should be noted that agents work exclusively for the insurance company.
There are two types of agents:
Captive Agents: Captive agents represent a single insurance company and are required to
only do business with that one company.

Independent Agent: Independent agents represent multiple companies and work on behalf
of the client (not the insurance company) to find the most appropriate policy.

Underwriting is the process of evaluating the risk to be insured. This is done by the insurer
when determining how likely it is that the loss will occur, how much the loss could be and
then using this information to determine how much you should pay to insure against the risk.
The underwriting process will enable the insurer to determine what applicants meet their
approval standards. For example, an insurance company might only accept applicants that
they estimate will have actual loss experiences that are comparable to the expected loss

experience factored into the company's premium fees. Depending on the type of insurance
product you are buying,
The underwriting process may examine your health records, driving history, insurable interest
etc. The concept of "insurable interest" stems from the idea that insurance is meant to protect
and compensate for losses for an individual or individuals who may be adversely affected by
a specific loss. Insurance is not meant to be a profit center for the policy's beneficiary. People
are considered to have an insurable interest on their lives, the life of their spouses (possibly
domestic partners) and dependents. Business partnersmay also have an insurable interest on
each other and businesses can have an insurable interest in the lives of their employees,
especially any key employees.

Insurance Contract
The insurance contract is a legal document that spells out the coverage, features, conditions
and limitations of an insurance policy. It is critical that we read the contract and ask questions
if we don't understand the coverage. We don't want to pay for the insurance and then find out
that what we thought was covered isn't included

Insurance terminology:

Bound: Once the insurance has been accepted and is in place, it is called "bound". The
process of being bound is called the binding process.
Insurer: A person or company that accepts the risk of loss and compensates the insured in
the event of loss in exchange for a premium or payment. This is usually an insurance
company. Insured: The person or company transferring the risk of loss to a third party
through a contractual agreement (insurance policy). This is the person or entity who will be
compensated for loss by an insurer under the terms of the insurance contract.
Insurance Rider/Endorsement: An attachment to an insurance policy that alters the policy's
coverage or terms.

Insurance Umbrella Policy: When insurance coverage is insufficient, an umbrella policy

may be purchased to cover losses above the limit of an underlying policy or policies, such as
homeowners and auto insurance. While it applies to losses over the dollar amount in the

underlying policies, terms of coverage are sometimes broader than those of underlying

Insurable Interest: In order to insure something or someone, the insured must provide proof
that the loss will have a genuine economic impact in the event the loss occurs. Without an
insurable interest, insurers will not cover the loss. It is worth noting that for property
insurance policies, an insurable interest must exist during the underwriting process and at the
time of loss. However, unlike with property insurance, with life insurance, an insurable
interest must exist at the time of purchase only.

A contract of insurance contained in a fire, marine, burglary or any other policy (excepting
life assurance and personal accident and sickness insurance) is a contract of indemnity. This
means that the insured, in case of loss against which the policy has been issued, shall be paid
the actual amount of loss not exceeding the amount of the policy, i.e. he shall be fully
indemnified. The object of every contract of insurance is to place the insured in the same
financial position, as nearly as possible, after the loss, as if he loss had not taken place at all.
It would be against public policy to allow an insured to make a profit out of his loss or


Since insurance shifts risk from one party to another, it is essential that there must be utmost
good faith and mutual confidence between the insured and the insurer. In a contract of
insurance the insured knows more about the subject matter of the contract than the insurer.
Consequently, he is duty bound to disclose accurately all material facts and nothing should be
withheld or concealed. Any fact is material, which goes to the root of the contract of
insurance and has a bearing on the risk involved. It is only when the insurer knows the whole
truth that he is in a position to judge (a) whether he should accept the risk and (b) what
premium he should charge. If that were so, the insured might be tempted to bring about the
event insured against in order to get money.
A contract of insurance effected without insurable interest is void. It means that the insured
must have an actual pecuniary interest and not a mere anxiety or sentimental interest in the
subject matter of the insurance. The insured must be so situated with regard to the thing
insured that he would have benefit by its existence and loss from its destruction. The owner
of a ship run a risk of losing his ship, the charterer of the ship runs a risk of losing his freight
and the owner of the cargo incurs the risk of losing his goods and profit. So, all these persons
have something at stake and all of them have insurable interest. It is the existence of insurable
interest in a contract of insurance, which distinguishes it from a mere watering agreement.

The rule of causaproxima means that the cause of the loss must be proximate or immediate
and not remote. If the proximate cause of the loss is a peril insured against, the insured can
recover. When a loss has been brought about by two or more causes, the question arises as to
which is the causa proxima, although the result could not have happened without the remote
cause. But if the loss is brought about by any cause attributable to the misconduct of the
insured, the insurer is not liable.

In a contract of insurance the insurer undertakes to protect the insured from a specified loss
and the insurer receive a premium for running the risk of such loss. Thus, risk must attach to
a policy.

In the event of some mishap to the insured property, the insured must take all necessary steps
to mitigate or minimize the loss, just as any prudent person would do in those circumstances.
If he does not do so, the insurer can avoid the payment of loss attributable to his negligence.
But it must be remembered that though the insured is bound to do his best for his insurer, he
is, not bound to do so at the risk of his life.

The doctrine of subrogation is a corollary to the principle of indemnity and applies only to
fire and marine insurance. According to it, when an insured has received full indemnity in
respect of his loss, all rights and remedies which he has against third person will pass on to
the insurer and will be exercised for his benefit until he (the insurer) recoups the amount he
has paid under the policy. It must be clarified here that the insurer's right of subrogation arises
only when he has paid for the loss for which he is liable under the policy and this right extend
only to the rights and remedies available to the insured in respect of the thing to which the
contract of insurance relates.


Where there are two or more insurance on one risk, the principle of contribution comes into
play. The aim of contribution is to distribute the actual amount of loss among the different
insurers who are liable for the same risk under different policies in respect of the same
subject matter. Any one insurer may pay to the insured the full amount of the loss covered by
the policy and then become entitled to contribution from his co-insurers in proportion to the
amount which each has undertaken to pay in case of loss of the same subject-matter.
In other words, the right of contribution arises when
(I) there are different policies which relate to the same subject-matter
(II) the policies cover the same peril which caused the loss
(III) all the policies are in force at the time of the loss, and
(IV) one of the insurers has paid to the insured more than his share of the loss.

Industry Overview

The insurance industry of India consists of 53 insurance companies of which 24 are in life
insurance business and 29 are non-life insurers. Among the life insurers, Life Insurance
Corporation (LIC) is the sole public sector company. Apart from that, among the non-life
insurers there are six public sector insurers. In addition to these, there is sole national re-
insurer, namely, General Insurance Corporation of India (GIC Re). Other stakeholders in
Indian Insurance market include agents (individual and corporate), brokers, surveyors and
third party administrators servicing health insurance claims.

During April 2015 to February 2016 period, the life insurance industry recorded a new
premium income of Rs 1.072 trillion (US$ 15.75 billion), indicating a growth rate of 18.3 per
cent. The general insurance industry recorded a 14.1 per cent growth in Gross Direct
Premium underwritten in FY2016 up to the month of February 2016 at Rs 864.2 billion (US$
12.7 billion).

India's life insurance sector is the biggest in the world with about 360 million policies which
are expected to increase at a Compound Annual Growth Rate (CAGR) of 12-15 per cent over
the next five years. The insurance industry plans to hike penetration levels to five per cent by

The countrys insurance market is expected to quadruple in size over the next 10 years from
its current size of US$ 60 billion. During this period, the life insurance market is slated to
cross US$ 160 billion.
The life insurance market grew from USD10.5 billion in FY02 to
USD52.14 billion in FY14.

Over FY02FY14, life insurance premiums expanded at a CAGR of

14.7 per cent. The life insurance industry has the potential to grow 2-2.5 times by
2020 in spite of multiple challenges supported by long-term trends and
fundamentals underlying household savings.

The life insurance premium market expanded at a CAGR of 14

per cent, from USD14.5 billion in FY04 to USD61.78 billion in FY15.
India's insurable population is anticipated to touch 750 million in 2020, with life expectancy
reaching 74 years. Furthermore, life insurance is projected to comprise 35 per cent of total
savings by the end of this decade, as against 26 per cent in 2009-10.
The future looks promising for the life insurance industry with several changes in regulatory
framework which will lead to further change in the way the industry conducts its business
and engages with its customers.


With an experience of over a decade, Birla Sun Life Insurance Company Limited (BSLI) is
one of the leading life insurance companies in India. . BSLI is a joint venture between the
Aditya Birla Group, a globally trusted multinational company and Sun Life Financial Inc.,
one of the top international financial services companies from Canada. Birla Sun Life
Insurance is one of the seven companies representing the Aditya Birla Financial Services
Group. Aditya Birla Financal Services is the financial services arm of the Aditya Birla Group
and is one of the top 5 fund managers in India (excluding LIC).

Enjoying the trust of over 2.5 million customers, BSLI is known for its innovative ideas and
creating industry benchmarks, and has also consistently contributed to the growth and
development of the Indian life insurance industry.

Birla Sun Life Insurance ranks among the top innovative companies and is the first Indian
insurance company to introduce the Free Look Period before it was made mandatory by
Insurance Regulatory and Development Authority (IRDA). It pioneered the launch of Unit
Linked Life Insurance plans. The company is also the originator of the practice to disclose
monthly portfolio which establishes credibility and additional transparency. The idea behind
these category development initiatives is to be closer to its policy holders.
Birla Sun Life Insurance has attained recognition as the 'third Most Trusted Life Insurance
Company in the Most Trusted Brands survey 2013 conducted by Brand Equity (The
Economic Times Group) with Neilsen. The company offers a complete range of insurance
services offerings comprising protection solutions, children's future solutions, and wealth
with protection, life stage products, health and wellness as well as retirement solutions for its
retail customers further accentuates this initiative.

Birla Sun Life Insurance believes that employee benefit plans provided by employers to their
employees play a very important role in increasing employee loyalty and productivity.The
company uses its vast expertise in helping organisations and groups design customised group
insurance solutions for their employees. BSLI has an extensive distribution reach of over 500
cities through its network of about 600 branches, 10500 empanelled advisors and over 150
partnerships with corporate agents, brokers and banks. The Assets under Management (AUM)
of Birla Sun Life Insurance is close to Rs. 23350 crore and has a robust capital base of over
Rs. 2450 crore as on 31 Dec 2013.

Birla Sun Life ranks among the top seven private sector life insurance companies in India and
has won the prestigious Good Corporate Citizen Award for the year 2009-10 in Mumbai
under the Banking and Financial Institutions category. This award aims to recognise and
honour conspicuous achievement by corporate in terms of service to the civic community, in
addition to outstanding operational performance.

Known for its innovation and creating industry benchmarks, BSLI has several firsts to its
credit. It was the first Indian Insurance Company to introduce "Free Look Period" and the
same was made mandatory by IRDA for all other life insurance companies. Additionally,
BSLI pioneered the launch of Unit Linked Life Insurance plans amongst the private players
in India. To establish credibility and further transparency, BSLI also enjoys the prestige to be
the originator of practice to disclose portfolio on monthly basis. These category development
initiatives have helped BSLI be closer to its policy holdersexpectations, which gets further
accentuated by the complete bouquet of insurance products (viz. pureterm plan, life stage
products, health plan and retirement plan) that the company offers.
Add to this, the extensive reach through its network of 600 branches and 133,572 empanelled
advisors. This impressive combination of domain expertise, product range, reach and ears on
ground, helped BSLI cover more than 2.5 million lives since it commenced operations and
establish a customer base spread across more than 1500 towns and cities in India.

To ensure that our customers have an impeccable experience, BSLI has ensured that it has
lowest outstanding claims ratio of 0.00% for FY 2011-12. Additionally, BSLI has the best
Turn Around Time according to LOMA on all claims Parameters. Such services are well
supported by sound financials that the Company has. The AUM of BSLI stood at 21062crs as
on March 31, 2012, while the company has a robust capital base of Rs. 2450 crs.

About Aditya Birla Group

A US $35 billion corporation, the Aditya Birla Group is in the league of Fortune 500. It is
anchored by an extraordinary force of 133,000 employees, belonging to 42 different
nationalities. The group operates in 36 countries across six continents truly India's first
multinational corporation.

About Aditya Birla Financial Services Group

Aditya Birla Financial Services Group (ABFSG) ranks among the top 5 fund managers in
India (excluding banks and LIC) with an AUM of ~USD 17.5 billion. Having a strong
presence across the life insurance, asset management, NBFC, private equity, retail broking,
distribution & wealth management and general insurance broking businesses, ABFSG is
committed to serve the end-to-end financial services needs of its retail and corporate
customers. The seven companies representing ABFSG are Birla Sun Life Insurance
Company Ltd., Birla Sun Life Asset Management Company Ltd., Aditya Birla Finance Ltd.,
Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., Aditya Birla Money Mart
Ltd, and Aditya Birla Insurance Brokers Ltd. In FY 2011-12, ABFSG reported consolidated
revenue from these businesses at Rs. 6550 Crore (USD 1.3 billion) and earnings before tax
at Rs. 600 Crore. Anchored by about 17,000 employees and trusted by about 5.5 million
customers, ABFSG has a nationwide reach through more than 1,775 points of presence and
about 200,000 agents / channel partners.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a
diverse range of protection and wealth accumulation products and services to individuals
and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have
operations in key markets worldwide, including Canada, the United States, the United
Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and
Bermuda. As of March 31, 2012, the Sun Life Financial group of companies had total assets
under management of $494 billion.

Life insurance corporation
ING vysya life insurance
Max network life insurance
MetLife insurance
Aviva life insurance
Bharathi Axa life insurance
Bajaj Allianz life insurance
Tata AIG life insurance
Reliance life insurance
Kotak Mahindra life insurance
ICICI Prudential Life Insurance

Competitors in Detail:-
Aviva life insurance:
Aviva Life Insurance Company India Pvt. Ltd. Is a joint venture between Aviva of UK and
Dabur, one of India's leading producers of traditional healthcare products. Aviva holds a 26
per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share.

Bajaj Allianz:
Bajaj Allianz is a joint venture between Allianz AG one of the world's largestinsurance
companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in theworld.
Bajaj Allianz is into both life insurance and general insurance. Allianz Group is one of the
world's leading insurers and financial services providers. Founded in 1890 in Berlin,Allianz
is now present in over 70 countries

HDFC Standard Life Insurance Co. Ltd:

is a joint venture between HDFC Ltd., India'slargest housing finance institution and
Standard Life Assurance Company, Europe's largestmutual life company. It was the first life
insurance company to be granted a certificate of registration by the IRDA on the 23rd of
October 2000.

ING Vysya Life Insurance Company Limited:

is a joint venture between Vysya Bank andING Group of Holland, the world's 4th largest
financial services group, with presence across50 countries, and a heritage of over 150 years.

Kotak Mahindra Old Mutual Life Insurance Ltd:

is a joint venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak
Mahindra is one of India's leadingfinancial institutions and offers a range of financial
services such as commercial banking.

Life Insurance Corporation of India:

(LIC) is an autonomous body authorized to run thelife insurance business in India with its
Head Office at Mumbai. It has been established by anact of the Parliament and started
functioning from 1/9/1956.

ICICI Prudential Life Insurance :

ICICI Prudential life insurance is a part of ICICI Bank.

Max New York Life Insurance Company Limited

is a joint venture between Max IndiaLimited, a multi-business corporate, and New York Life
International, a global expert in lifeinsurance. New York Life is a Fortune 100 company that
has over 160 years of experience inthe life insurance business.

MetLife India Insurance Co. Pvt Ltd

is a joint venture between MetLife Group and itsIndian partners. The Indian partners include
J&K Bank, Dhanalakshmi Bank, KarnatakaBank, Karvy Consultants, Geojit Securities,
Way2Wealth, and Mini Muthoothu.

Reliance Life Insurance Company

Limited is a part of Reliance Capital Ltd. of the Reliance- Anil Dhirubhai Ambani Group.
The company acquired 100 per cent shareholding in AMPSanmar Life Insurance Company
in August 2005. Taking over AMP Sanmar Life providedReliance Life Insurance a
readymade infrastructure and a portfolio.

SBI Life Insurance

is a joint venture between the State Bank of India and Cardiff SA of France. SBI Life
Insurance is registered with an authorized capital of Rs 500 crore and a paidup capital of Rs
350 cores.

Tata AIG Life Insurance Company

Limited is a joint venture between Tata Group andAmerican International Group, Inc.
(AIG). Tata Group is one of the oldest and leading business groups of India. Tata Group has
had a long association with India's insurance sector having been the largest insurance
company in India prior to the nationalization of insurance.The Late Sir Dorab Tata was the
founder Chairman of New India Assurance Co. Ltd., agroup company incorporated way
back in 1919.

To be a leader and role model in a broad based and integrated financial services business.&
create long term value along with market leadership

To help people mitigate risks of life, accident, health, and money at all stages and under all
circumstances. Enhance the financial future of our customers including enterprises



The primary task assigned to me and my team members was to plan,

create and execute a one year Marketing plan to market Child solutions offered by
the company.
The Marketing Plan involve Promotional Strategies, Print
ads, Television Commercial Campaigns, Bill Boards and other advertising

Secondary research was done to get the overview of the potential

viewership, reach of the marketing efforts, market trends in advertising of Insurance

To check the feasibility of the marketing plan a thorough market

research was carried out.

Secondarily as part of the project towards client acquisition, I tried

to pitch and sell the Insurance products (Vision Life Insurance Policies) to
potential customers around my neighborhood.


To study the overall market scenario currently prevailing in Insurance Industry.

To determine and analyze the market potential of Birla Sun Life Insurance.
To develop Innovative Marketing Strategies with respect to Communication Medium;

2)Print Ads
3)Social Media

Prepare Quarter Wise in-depth Marketing plan for a year.

Prepare Questionnaire based on marketing strategies.

Find the Feasibility of Marketing Strategies.

Find Consumer Perspective with respect to the Marketing strategies that we developed

Literature Review

Kirtika Suneja, Government to go the insurance way to get FDI in private security
The Economic Times, Jun 21, 2016, 02.35PM IST
NEW DELHI: The government may take longer to get 49% foreign direct investment in
private security agencies compared with other sectors where FDI norms have been eased.
Private security agencies are governed by the Private Security Agencies Act, which will have
to be amended to be able to implement the revised norms
With Monday's announcement, private security agencies can bring in 49% FDI under the
automatic route. Beyond 49% and up to 74% would require government approval. This is a
marked change from the existing policy that allows 49% FDI under government approval
route in private security agencies.
"The increase in FDI from 49% to 74% will need an amendment in the Act. It is
like insurance where Parliament had to give its go-ahead to raise the ceiling," said Akash
Gupt, Partner & National Leader - Regulatory Services & Tax Markets at PwC India.
Private security agency means security provided by a person, other than a public servant, to
protect or guard any person or property or both and includes provision of armoured car
service. It services include offering training to private security guards and providing private
security guards to any company.
The existing guidelines put a 49% cap on FDI and ownership control by persons of Indian
origin, which will need to be amended.
While it took seven years and a change in government to raise the foreign investment limit in
insurance companies last year to 49% from 26%, an expert said that this should not be case
with private security agencies as the sector is not controversial and a few operational checks
can allay fears related to security.

Narendra Nathan, Why annuities are a poor investment choice, The Economic
times, May 26, 2014, 08.00AM IST
Financial planners abhor them. Tax experts baulk at them. Yet, many investors pour their life
savings into annuities from insurance companies. They fall for the 'guaranteed pension for
life' sales pitch by insurers, without realising that this option offers very low returns, is tax-
inefficient and hampers liquidity by locking up their money forever.
An annuity is a lump-sum investment, which gives a regular income to the investor for the
rest of his life. It can be an immediate annuity, which starts giving returns from the very first
month, or it could be a deferred annuity, which starts paying after a certain period. Right now,
only insurance companies offer annuity plans in India.

One of the biggest challenges that retirees face is converting their nest eggs into regular
income. There are many options before them, but an annuity is perhaps the worst. While the
promise of pension for life sounds attractive, the returns offered by these plans are dismal, to
say the least.
Exide Life Insurance, for instance, is offering less than 5% on the annuity option that returns
the corpus after the investor's death. This is similar to the return offered by your savings bank
on the balance in your account. If you opt for a sweep-in account, you could earn more by
just keeping your money in the bank. "These are old rates. We have filed new rates with
better yields and, hopefully, our new annuity products will be approved soon," says Kshitij
Jain, CEO, Exide Life Insurance.
For many investors, buying an annuity is a compulsory evil. When they retire at 60, investors
in the New Pension Scheme have to put at least 40% of their corpus in an annuity.
If you have taken a pension plan from an insurance company, you will have to buy an annuity
with at least 66% of the maturity proceeds. The choice of annuity providers is also limited. "If
you have invested in a plan with a particular insurer, you have to buy the annuity from that
insurance company," says Jain.
Our cover story this week looks at why annuity rates in India are so low and other drawbacks
of this investment vehicle. We also explain what investors can do to earn a better income
from their nest eggs in their sunset years.
A major problem with annuities from insurance companies is the measly returns they offer. At
a time when banks are offering 9.5-10% on fixed deposits to senior citizens, annuities offer
less than 8%
The bad news doesn't end here. Unlike other financial products, in annuities investors have to
consider the impact of the 3.09% service tax. So, if you were to invest Rs. 10 lakh in an
annuity, Rs. 30,900 flows out as service tax. "This tax brings down the net yield from
annuities further," says Jaya Nagarmat of Investor Shoppe. So, a yield of 7.5% will decline to
Since retirees are mostly senior citizens, they can earn much better returns if they put their
money in fixed deposits instead of locking it up in an annuity. The glitch: banks are offering
attractive rates on fixed deposits of relatively shorter tenures of 3-5 years.
For long-term deposits, the rates are lower at 8.5-9%, with the maximum duration of a bank
fixed deposit being 10 years. So the investor is faced with the reinvestment risk.
If interest rates fall by the time his deposits mature, he will have no option but to reinvest the
amount at the lower rate prevailing at that time, which would depress his returns.
On the other hand, an annuity is a contract for the long-term. "The biggest advantage of an
annuity is that the rate is guaranteed for life irrespective of the interest rate movement," says
G Murlidhar, managing director, Kotak Mahindra Old Mutual Life Insurance.
Other insurance companies join the chorus in favour of annuities. "In a world of
uncertainties, the beauty of an annuity product is in its ability to not just offer guaranteed
returns, but to do so for life to the customer," says Amitabh Chaudhry, managing director and
There are several reasons for the low returns from annuities. First, short-term interest rates
are currently higher than the long-term rates. Annuity products are linked to the long-term
rates and are, therefore, unable to match the high, short-term rates. "The high short-term
interest rates are an aberration. They should settle soon," says Jain. If that happens, annuity
rates may go up.

The other problem is the unavailability of long-term corporate bonds, which can generate
better yields than those offered by the ultra-safe, but low-yield, government bonds. Though
government bonds have tenures of up to 30 years, getting enough long-term gilts is not easy.
This explains, but does not justify, the yields that are significantly lower than those offered by
the 30-year government bonds.

Aparna Chandrashekar, Avoid lapses, stay insured, Business Today, October 29, 2015,
12:10 IST
Be alert. Your life insurance policy can lapse when the due premium is not paid even within
the grace period.
What is a lapsed policy?
Lapsation means that an insurance policy ceases to exist.
A policy lapses if the holder fails to pay premium after a stipulated grace period of 30 days
for a policy.
When policyholders miss their premium payments, they are no longer protected under the
If the policyholder dies, the nominee will not be able to avail the claim, as the policy had
lapsed and there was no risk cover.
Why do insurance policies lapse?
Mis-selling of the product. This is like an agent trying to sell a life insurance policy to a 70-
year-old with no immediate liabilities, he/she doesn't need it.
Insurance is a long-term policy. Ensure that you will be able to continue the policy keeping in
mind your future obligations before signing up for an insurance policy of any kind.
Sometimes, when your agent leaves the industry, it leaves you hanging as well. Your agent
knows your financial history, needs and abilities.
How can you revive a lapsed policy?
The revival of a policy varies from company to company. It also depends on the duration of
its lapse.
Your first attempt at reviving a policy should be within the grace period.
Monthly premiums usually have a grace period of 15 days, while yearly, half-yearly and
quarterly premium payment policies have a grace period of 30 days. If you ensure payment
within that period, all benefits remain intact.
If you miss the grace period, then you can opt for revival within six months of the first unpaid
premium. This way, you need to pay only the premium due along with interest, without
having to make any declarations of your health.
If you miss the six-month mark as well, your insurance company may ask you to provide
medical declarations.
What are the key points to remember?
Ensure that while reviving your policy, your insurer draws up a fresh contract.
The more you delay reviving your insurance policy, the process gets more cumbersome.
Additionally, your insurer may impose high penalty fees.
In case your policy is not revived within the stipulated period, the company is bound to pay
you the surrender value.

How can you avoid Lapsation?

ECS-Electronic Clearing Service is one of the best ways to ensure the premium money is
automatically deducted from your bank account.
Before you sign a life insurance contract, make sure you're aware of your capabilities. Do not
opt for lump sum payment if you think it'll burn a hole in your pocket.

Nature of Field Work

To get the authentication of the marketing plan, it was required to take a feedback from the
people to know whether they are able to connect with the brand and will they buy the policy
if they see these ads.
The sample size of each team was hundred and ten.
There was a questionnaire made for each quarter and each plan.
The total questions were around thirty-five.
The methodology which was used was one to one personnel interview, where each concept
was explained to the person and then the open ended question was asked to them.
The questionnaire consisted of both open ended questions and rating and ranking questions.
Based on the feedback, a backup plan was expected to be made up in case of bad rating to
any media communication concept.
The major questions in every module were:
Field Experience
Each interview required about 40 mins of session in which different and mixed feedback was
The concept getting a response of above 70 percent was surely selected and the concept
between 60 70 needed a backup plan and a concept with responses below 60 was scraped
and the team was asked to rework on the concept.
It was seen that different people react differently to the same concept.
The TG for the feedback varied from teenagers to professionals working in the industry.
During the interview, it was also noticed that people have different opinions about life
insurance and there are several misconceptions people carry for life insurance as a product
and investing in the same.
It was also noticed that people have more trust in a government organization e.g. LIC
compared to any private organization.


A product (Child Policy) was given and the following steps were to be attained.
STEP 1: Make QUARTERLY Marketing Plan.
(The plan will include all the activities like Television commercials, print ads, sponsorship
STEP 2: To shoot the TVCs as described in the Marketing plan.
STEP 3: Make prototype of the Print Ads approved by the mentor.

QUARTERLY Marketing Plan

Quarter 1 April June 2016

Objective - Brand awareness. As the product is being introduced in the 1st quarter, brand
awareness is the objective of this quarter.

1. FLASH MOB To complete the objective of brand awareness, flash mob will be
conducted in shopping malls at prime time (early evenings on weekends). Time venue and
song were decided on the basis of primary research conducted.
2. IPL(CSR) As a part of companys CSR activity, approximately 2000 kids from NGOS
would be taken to stadium for matches. Also will be gifted with Birla Sun Life caps and t-
3. TVC (DARWANA BHOOT) A humorous teaser advertisement that points to the fact that
the Birla Sun Life protects from every causality including Ghosts. A man who has Birla Life
Insurance does not get scared with the Ghost is shown in a subtle way.
3) which place would be ideal for the flash mobs?
90% of the population suggested malls.
8) Do CSR activity enhances brand image?
80% percent of the population said yes.
9) would you notice the banner in the crowd?
Yes 30%
No 18%
Cant say 52%



TVC 50 LAKS 5.80 CR
IPL 50 LAKS 800 CR
1.14 805.92

Quarter 2 July-September (2016)

Objective -Brand awareness and positioning
1. OLYMPICS The main idea is to advertise the brand taking Olympics as a theme. Videos
showing success stories of Indian participants of Olympics will be advertised on social
Well known Indian Olympians would be interviewed before and after the Olympics and those
will be shown on social media and television shows.
2. CYCLOTHON and MARATHON Events will be organized with social causes like Run
for Fun. Such events help in brand awareness as well as brand positioning. The hash tag for
the activity is #RUNFORYOURCHILD

3. INDEPENDENCE DAY - Specially for Independence day , all the hoardings of the brand
will be light in tri color Led lights.

4. GANPATI As Ganpati is one of the most celebrated festivals in Mumbai, marketing

through this festival will create a huge buzz. For marketing a Dahi Handi event will be
5. UMBRELLA- A plan to place big umbrellas having birla sunlife logo on their sides in the
places like Marine drive, Worli sea face, Carters road. Main idea behind this activity is lots of
people would be able to come even during the rains.


20) Suggest some sports person of your choice.
Vijender singh
Mary kom
P. T Usha
Abhinav Bindra
Vijendar, Sushil
Dyan chand

22) Given a chance, which festival would you want Birla to associate with it?
Ganesh Utsav Diwali
Kala ghoda
Ganesh Chaturti
Raksha bandhan
Book Festivals
More than 80% stated these Festivals
23) Which social cause can you associate with cyclothon?
Child Education
Healthy living
Woman Empowerment
AIDS, Cancer
More than 85% stated these Social Causes.

24) Which areas/routes would you like to go cycling

Marine Drive
Carter road
Virar to Churchgate
Marine Drive, Seaface, Sealink
CST, Bandra
These were the major responses ( 85%)

CAMPAIGN 30.21 CR 81.8 CR
61.72 200

Quarter 3 October-December (2016)

Objective- Trust building
1. FLASH MOB: In order to build trust, flash mob will be conducted in shopping malls at
prime time (early evenings on weekends). Time venue and song were decided on the basis of
research conducted.

2. TVC (Milestone advertisement): In order to build the trust, an ad will be shown which
shows the journey of 150 years of Aditya Birla Group. The video will be shown on social

3. LOCAL FEST: Festival is the time where lots of people can be reached through hoardings,


Quarter 4 January-March(2016)
Objective- Sales and Trust building.

PRINT ADS: Print Advertisements are made Interactive to attract the customer and are shown




HOLI 25 LAKHS 17.20 CR
31.13 3.
To understand the feasibility of our ad campaign, I have used Primary Research Methodology
to collect data using Qualitative Research
Following are the steps followed
Identify the sample of 100 potential viewers.
Make a format to capture data under different variables and get it verified from mentor.
Visit each customer and give them a good picture about the ads and conducted face to face
Explain them the ads in detail, listen to their opinions, feedbacks and suggestions get the
responses collated in elaborate open ended questionnaire.


1. A Media Plan is vital to reach to more people and to thereby create

wider brand awareness. Hence, B
2. The Planning part of the project gave me a platform to practically
ideate and contemplate taking into account specific Target Group customers as
well as costs involved.

3. Different type of strategies to be applied for different quarters for

coherent marketing campaigns. Each quarter has its own important factors to be
looked upon. So accordingly we planned the strategies for the company. This helped
us to better analyze the strategies to be formed.

4. The primary research helped us understand the people have a clear

liking towards engaging and emotional ads.

5. I understood how the promotional campaigns could be carried out

with the help of non-profit organizations such as Rotary Clubs. Such activities help
a company create a better image of the company. When this idea was put forward to
the people whom we interviewed , we got a strong positive response.

6. I have a broad understanding how different types of Television Commercials are planned and
shot so that the product is positioned effectively in the minds of the target audience and the
chances of the brand recall is maximized.

7. The Interactive Print Ad made by my team received special

recognition and was selected to be utilized by the company. Interactive print ads
help connect more with the target consumers as it helps them to recall the
8. Being responsible for editing the Television Commercial and
parts of Print Ads I was very much exposed Corel VideoStudio Pro X, Adobe
Photoshop CS 6 and Corel Draw.

1. http://insurance.birlasunlife.com/Pages/Individual/Home.aspx

2. http://www.birlasunlife.com/

3. http://www.adityabirla.com/businesses/Profile/Birla-Sun-Life-Insurance-Co-Ltd

4. www.ibef.org

5. www.timesofindia.com

6. http://economictimes.indiatimes.com/topic/Life-Insurance/news