SUMMER TRAINING PROJECT REPORT

ON

“PROMOTION AND DISTRIBUTION STRATEGIES OF IDBI FEDERAL LIFE

INSURANCE”

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF

THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF:

Ms. Anjali Vij
Assistant Professor, RDIAS

SUBMITTED BY:
Name of the Student:-Sanjay Singh Bishnoi
Enrollment No. 06415903918
MBA, Semester IIIrd B(Morning)
Batch 2018 – 2020

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

An ISO 9001:2015 Certified Institute

NAAC Accredited: A+ Grade (2nd Cycle), Category A+ Institution (by SFRC, Govt. of NCT
Delhi)
(Approved by AICTE, HRD Ministry, Govt. of India)
Affiliated to Guru Gobind Singh Indraprastha University, Delhi
2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085
TABLE OF CONTENTS

Page No.

Student Declaration……………………………………………………………………………i
Certificate from Company ……………………………………....…..........................ii
Certificate from Faculty Guide……………………………………....…....................iii

Acknowledgement.........................................................................................................iv
Executive Summary…………………………………………………………………………...v
List of Tables……………………………………………………………………………………vi
List of Graphs………………………………………………………………………………….vii

List of Charts……………………………………………………………………………..……viii

List of Abbreviations, if any………………………………………………………………….ix

INTRODUCTION Page No.

About the Topic

About the Industry or About the Company
Literature Review

RESEARCH METHODOLOGY Page No.

2.1 Purpose of the study

2.2 Research Objectives of the study
2.3 Research Methodology of the study
2. 3.1 Research Design
2.3.2 Method of Data Collection
2.3.3 Sample Design
2.3.3.1 Sample Unit
2.3.3.2 Sample Size
2.3.3.3 Sampling Method
2.3.4 Designing Questionnaire
2.4 Limitations

ANALYSIS& INTERPRETATION Page No.

3.1 Analysis & Interpretation

FINDINGS AND SUGGESTIONS Page No.

Findings
Suggestions

CONCLUSION Page No.

Conclusion
Scope for future research
REFERENCES
ANNEXURES (if any)
 Student’s Declaration

This is to certify that I have completed the Project titled “

“PROMOTION AND DISTRIBUTION STRATEGIES OF IDBI FEDERAL LIFE
INSURANCE” under the guidance of “Ms. Anjali Vij” in the partial fulfillment of the
requirement for the award of the degree of “Masters in Business Administration” from
“Rukmini Devi Institute of Advanced Studies, New Delhi.”

It is also certified that the project of mine is an original work and the same has not been
submitted earlier elsewhere.

Name of the Student:-Sanjay Singh Bishnoi

Enrollment No:- 06415903918
Class & Section:-Mba IIIrd B(morning)
 Certificate from Faculty Guide

This is to certify that the project titled “PROMOTION AND DISTRIBUTION

STRATEGIES OF IDBI FEDERAL LIFE INSURANCE” is an academic work done by
“Sanjay Singh Bishnoi” submitted in the partial fulfillment of the requirement for the award
of the degree of “Masters in Business Administration” from “Rukmini Devi Institute of
Advanced Studies, New Delhi.” under my guidance and direction.

To the best of my knowledge and belief the data and information presented by him / her in
the project has not been submitted earlier elsewhere.

Name of the Faculty:-Ms Anjali Vij

Designation of the Faculty:- Associate Professor
RDIAS
 ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my corporate
mentor Ms. Anjali Vij for his guidance, monitoring and constant encouragement throughout
the course of this internship.

I would also like to express a deep sense of gratitude to my faculty mentor at RDIAS Delhi,
for her cordial support, valuable information and guidance, which helped me in completing
this task through various stages.

Sanjay Singh Bishnoi

 EXECUTIVE SUMMARY

The project on “Promotion and Distribution strategy of IDBI Federal Life Insurance
company” was taken at IDBI Federal Life Insurance from 1st June 2019 to 31st July 2019.
The project aims to make a detailed study of supply chain and promotional strategies of IDBI
Federal Life Insurance Company to understand the strategies implemented by the company to
better target its customers and also to analyze behaviour of the customers towards the
products of the company in order to identify the strengths and weaknesses of the company.

This project gave me an opportunity to get an overview of the Insurance Industry and realize
marketing potential of insurance products in general and of IDBI Federal in particular by
conducting consumer survey on insurance products and the opportunities available in
distribution channels. The objectives of the project were to identify the Marketing Mix of
IDBI Federal Life Insurance Company, to map the attitude of consumers with respect to the
life insurance products of Idbi Federal and determine areas of improvement for better
marketing of IDBI Life Insurance Products.
The internship comprised of basically four parts: -
In house training of insurance products of IDBI Federal. Selling insurance products to
get exposure in the market. Understanding the concept of Marketing and operations in
relation to Life Insurance products at IDBI Federal Life Insurance Co Ltd. Online survey
to gain customers’ responses towards IDBI’s investment products and determine what could
be the best way to distribute and promote its products.
 CHAPTER 1
INTRODUCTION
History of Insurance

Insurance is a contract between the policyholder and the insurance company. Insurance
covers the probable financial risk of a person. The insurance company, in return for a
premium, promises to pay a specified amount to the policyholder (customer) after the
anticipated event has happened as per the contract.
Before the formal establishment of insurance in the late 17th century, friendly societies were
prevalent in England, in which people donated money to a general pool that could be used for
emergencies. Greek rulers brought separate insurance contract not bundled with loans in the
14th century, same as insurance pools backed by pledges of landed estates. In
postRenaissance Europe, insurance was developed as more specialized and sophisticated
product. Modern insurance can be traced back to The Great fire of London which devoured
13200 houses in 1666 A.D. Nicholas Barbon opened an office to insure buildings after this
disaster. In 1732 the first insurance company was formed in Charles Town, South Carolina,
in the United States which underwrote fire insurance.
In early 19th century modern insurance began in India. In 1870, the first Indian insurance
company was formed in Mumbai by the name “The Bombay Mutual Assurance Society Ltd.”
After this, many Indian companies were founded and they worked subsequently but in the
year 1992, the Life Insurance Companies Act and the Provident Fund Act were passed to
regulate the insurance business.
‘Malhotra Committee’ was setup in 1993 to explore and recommend changes for
development of insurance industry and in 1994 the report was submitted by the Committee.
In 1997, the Insurance Regulatory Authority (IRA) was established.
Global Scenario of Insurance sector

The Insurance Sector is one of the largest sectors in finance. The range of Insurance industry
is from customer to corporate. The major markets of the world are US, Europe, Japan and
South Korea.
As per the report released by Swiss Re, the real global direct life and non-life insurance
premiums written grew by 3.8% in 2015, up from 3.5% in previous year. However in
nominal US dollar terms, premiums were down by 4.2% due to wide-spread currency
depreciation against USD. In real terms, the global life premium growth slowed to 4% from a
4.3% gain in 2014. In advanced markets life premiums grew 2.5%, down from 3.8%
growth the previous year. In the emerging markets, overall life premium growth doubled to
near 12%.
Global non-life premium growth improved to 3.6% in 2015 from 2.4% the previous year. The
advanced markets non-life premiums grew 2.6% up from 1.1% growth the previous year. The
Emerging markets continued their robust premium growth trend (+7.8%) in 2015 though
showed lower growth (+ 8.6%) than 2014.
In case of life insurance, moderate premium growth in many markets and the prolonged low
interest rates dragged on profits. In non-life both the underwriting and investment results
were weaker than those of 2014. The underwriting results were impacted by lower reserve
releases and investment results were hit by low interest rates. However, the insurance
industry overall remains well capitalized.
As per the report, the life premium growth is expected to accelerate slightly in the advanced
economics in 2016. In the emerging markets the life sector is forecast to decelerate. The out-
look for the non-life industry in advanced markets is more muted than for life, given
expectations of moderate economic recovery and pricing weakness. The outlook for nonlife
in emerging markets is mixed.
(Source: Swiss Re, Sigma No. 3/2016)

Recent development in Indian insurance industry

Globally, the share of life insurance business in total premium was 55.6%. The share of life
insurance business in India was at 79% while that of non-life insurance business was at 21 %.
Indian insurance market expanded from USD 23 billion in FY 2005 to USD 68.88 billion in
FY 2016. Over these years, total gross written premiums increased at a CAGR of 10.49%. As
compared to a growth of USD 1.12 billion in November 2015, the total growth in life
insurance premium was around USD 2.38 billion in 2016, witnessing a growth of 113%.
In life insurance business, India is ranked 10th among the 88 countries, according to the data
published by Swiss Re. India’s share in global life insurance market was 2.24% during 2015
compared to 2.08% in 2014. However, during 2015, the life insurance premium in India
witnessed an inflation adjusted growth of 7.8% while global life insurance premium
increased by 4%.
The inflation adjusted growth of Indian non-life insurance sector was 8.1 percent during 2015
where as the growth in global non-life insurance premium was 3.6% only. However, India
ranked 18th among the 88 countries in non life insurance sector and the share of Indian non-
life insurance premium in global non-life insurance premium was at 0.75%.

Growth in Life Insurance

The life insurance premium grew at a healthy CAGR of 12.49 per cent, from USD 14.5
billion in FY 2004 to USD 56.05 billion in FY 2016. By 2020, the life insurance industry is
estimated to grow 2-2.5 times of the current figure in spite of multiple challenges. Longterm
trends & strong fundamentals underlying household savings could be attributed as reasons for
this optimism.

Insurance penetration and density in India

The level of development of insurance sector in a country can be judged by the measure of
insurance penetration and density in the country. While insurance penetration is measured as
the percentage of insurance premium to GDP, insurance density is calculated as the ratio of
premium to population (per capita premium).
In the first decade of insurance sector liberalization, there has been a consistent growth in
insurance penetration from 2.71 per cent in 2001 to 5.20 per cent in 2009. Since then, the
level of penetration had been declining. However in 2015, there was a slight increase in the
insurance penetration reaching 3.44 percent compared to 3.3 percent in 2014. A similar trend
was witnessed in the level of insurance density which reached the maximum of USD 64.4 in
the year 2010 from the level of USD 11.5 in 2001. But in 2015, the insurance density was
USD 54.7 lower from 2010 figure.
The insurance density of life insurance business grew from USD 9.1 in 2001 to the peak at
USD 55.7 in 2010. The level of life insurance density during 2015 was USD 43.2. Similarly,
the life insurance penetration had gone up from 2.15 per cent in 2001 to 4.60 percent in 2009.
Since then, a declining trend has been visible. However in 2015, the insurance density
increased to 2.72 percent as compared to 2.6% in 2014.

Appraisal of Indian Insurance Market

Registered insurers in India There were 54 insurers operating in India at the end of March
2016, of which 24 are general insurers, 24 are life insurers, and 5 are health insurers. In
addition, General insurance company is the only national reinsurer. Of all the insurance
companies presently in operation, there are eight in public sector and the remaining forty six
are in the private sector. Two specialized insurers, namely Export credit guarantee
corporation of India(ECGC) and Agriculture insurance company of India (AIC), one life
insurer namely LIC of India (LIC), four in general insurance and the only one in reinsurance
namely GIC are in public sector. 18 general insurers, 23 life insurers, and 5 standalone health
insurers are operating in private sector.

Source: Irda

Regulators of Insurance sector in India Insurance Regulatory & Development Authority

(IRDA) is an autonomous, statutory agency which regulates and promotes insurance industry
in India. It was constituted by the Insurance Regulatory and Development Authority Act,
1999 through an act of parliament passed by the government of India.The agency has a ten
members' team comprising of a Chairman, five full time members and four part-time
members, all appointed by government of India.
Functions of IRDA
Some important functions of IRDA are -
Promoting and regulating professional organizations connected with the insurance and re-
insurance industry
Inspecting and investigating insurers, intermediaries and other relevant organizations
Protecting policyholder interests
Adjudicating disputes between insurers and intermediaries or insurance intermediaries
Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations.
Regulating companys’ investment of funds and margin of solvency

Insurance industry has seen revolutionary changes after the establishment of IRDA. The rules
and regulation brought by the agency has helped this sector witness tremendous growth as a
result of private companies starting their business and rising awareness about insurance in
people.

This graph suggests that private insurers have outpaced the national insurer LIC by 5
percentage point during 2015 – 2016. ICICI Prudential is top collector of premium among its
private followed by SBI Life. But, the percentage increase in insurance premium through new
business is larger for SBI Life than ICICI Prudential.

Market share of private insurers has also increased by 1.1 percentage point over the previous
year which shows a good growth prospect and acceptability of private insurers by the general
public.
Company Overview – IDBI Federal Life Insurance
History of Insurance

Insurance is a contract between the policyholder and the insurance company. Insurance
covers the probable financial risk of a person. The insurance company, in return for a
premium, promises to pay a specified amount to the policyholder (customer) after the
anticipated event has happened as per the contract.
Before the formal establishment of insurance in the late 17th century, friendly societies were
prevalent in England, in which people donated money to a general pool that could be used for
emergencies. Greek rulers brought separate insurance contract not bundled with loans in the
14th century, same as insurance pools backed by pledges of landed estates. In
postRenaissance Europe, insurance was developed as more specialized and sophisticated
product. Modern insurance can be traced back to The Great fire of London which devoured
13200 houses in 1666 A.D. Nicholas Barbon opened an office to insure buildings after this
disaster. In 1732 the first insurance company was formed in Charles Town, South Carolina,
in the United States which underwrote fire insurance.
In early 19th century modern insurance began in India. In 1870, the first Indian insurance
company was formed in Mumbai by the name “The Bombay Mutual Assurance Society Ltd.”
After this, many Indian companies were founded and they worked subsequently but in the
year 1992, the Life Insurance Companies Act and the Provident Fund Act were passed to
regulate the insurance business.
‘Malhotra Committee’ was setup in 1993 to explore and recommend changes for
development of insurance industry and in 1994 the report was submitted by the Committee.
In 1997, the Insurance Regulatory Authority (IRA) was established.
1.2 Global Scenario of Insurance sector

The Insurance Sector is one of the largest sectors in finance. The range of Insurance industry
is from customer to corporate. The major markets of the world are US, Europe, Japan and
South Korea.
As per the report released by Swiss Re, the real global direct life and non-life insurance
premiums written grew by 3.8% in 2015, up from 3.5% in previous year. However in
nominal US dollar terms, premiums were down by 4.2% due to wide-spread currency
depreciation against USD. In real terms, the global life premium growth slowed to 4% from a
4.3% gain in 2014. In advanced markets life premiums grew 2.5%, down from 3.8%
growth the previous year. In the emerging markets, overall life premium growth doubled to
near 12%.
Global non-life premium growth improved to 3.6% in 2015 from 2.4% the previous year. The
advanced markets non-life premiums grew 2.6% up from 1.1% growth the previous year. The
Emerging markets continued their robust premium growth trend (+7.8%) in 2015 though
showed lower growth (+ 8.6%) than 2014.
In case of life insurance, moderate premium growth in many markets and the prolonged low
interest rates dragged on profits. In non-life both the underwriting and investment results
were weaker than those of 2014. The underwriting results were impacted by lower reserve
releases and investment results were hit by low interest rates. However, the insurance
industry overall remains well capitalized.
As per the report, the life premium growth is expected to accelerate slightly in the advanced
economics in 2016. In the emerging markets the life sector is forecast to decelerate. The out-
look for the non-life industry in advanced markets is more muted than for life, given
expectations of moderate economic recovery and pricing weakness. The outlook for nonlife
in emerging markets is mixed.
Recent development in Indian insurance industry

Globally, the share of life insurance business in total premium was 55.6%. The share of life
insurance business in India was at 79% while that of non-life insurance business was at 21 %.
Indian insurance market expanded from USD 23 billion in FY 2005 to USD 68.88 billion in
FY 2016. Over these years, total gross written premiums increased at a CAGR of 10.49%. As
compared to a growth of USD 1.12 billion in November 2015, the total growth in life
insurance premium was around USD 2.38 billion in 2016, witnessing a growth of 113%.
In life insurance business, India is ranked 10th among the 88 countries, according to the data
published by Swiss Re. India’s share in global life insurance market was 2.24% during 2015
compared to 2.08% in 2014. However, during 2015, the life insurance premium in India
witnessed an inflation adjusted growth of 7.8% while global life insurance premium
increased by 4%.
The inflation adjusted growth of Indian non-life insurance sector was 8.1 percent during 2015
where as the growth in global non-life insurance premium was 3.6% only. However, India
ranked 18th among the 88 countries in non life insurance sector and the share of Indian non-
life insurance premium in global non-life insurance premium was at 0.75%.

Growth in Life Insurance

The life insurance premium grew at a healthy CAGR of 12.49 per cent, from USD 14.5
billion in FY 2004 to USD 56.05 billion in FY 2016. By 2020, the life insurance industry is
estimated to grow 2-2.5 times of the current figure in spite of multiple challenges. Longterm
trends & strong fundamentals underlying household savings could be attributed as reasons for
this optimism.
Insurance penetration and density in India

The level of development of insurance sector in a country can be judged by the measure of
insurance penetration and density in the country. While insurance penetration is measured as
the percentage of insurance premium to GDP, insurance density is calculated as the ratio of
premium to population (per capita premium).
In the first decade of insurance sector liberalization, there has been a consistent growth in
insurance penetration from 2.71 per cent in 2001 to 5.20 per cent in 2009. Since then, the
level of penetration had been declining. However in 2015, there was a slight increase in the
insurance penetration reaching 3.44 percent compared to 3.3 percent in 2014. A similar trend
was witnessed in the level of insurance density which reached the maximum of USD 64.4 in
the year 2010 from the level of USD 11.5 in 2001. But in 2015, the insurance density was
USD 54.7 lower from 2010 figure.
The insurance density of life insurance business grew from USD 9.1 in 2001 to the peak at

USD 55.7 in 2010. The level of life insurance density during 2015 was USD 43.2. Similarly,
the life insurance penetration had gone up from 2.15 per cent in 2001 to 4.60 percent in 2009.
Since then, a declining trend has been visible. However in 2015, the insurance density
increased to 2.72 percent as compared to 2.6% in 2014.

Source – Swiss Re

Appraisal of Indian Insurance Market

Registered insurers in India There were 54 insurers operating in India at the end of March
2016, of which 24 are general insurers, 24 are life insurers, and 5 are health insurers. In
addition, General insurance company is the only national reinsurer. Of all the insurance
companies presently in operation, there are eight in public sector and the remaining forty six
are in the private sector. Two specialized insurers, namely Export credit guarantee
corporation of India(ECGC) and Agriculture insurance company of India (AIC), one life
insurer namely LIC of India (LIC), four in general insurance and the only one in reinsurance
namely GIC are in public sector. 18 general insurers, 23 life insurers, and 5 standalone health
insurers are operating in private sector.

Source: Irda

Regulators of Insurance sector in India Insurance Regulatory & Development Authority

(IRDA) is an autonomous, statutory agency which regulates and promotes insurance industry
in India. It was constituted by the Insurance Regulatory and Development Authority Act,
1999 through an act of parliament passed by the government of India.The agency has a ten
members' team comprising of a Chairman, five full time members and four part-time
members, all appointed by government of India.

Functions of IRDA
Some important functions of IRDA are -
Promoting and regulating professional organizations connected with the insurance and re-
insurance industry
Inspecting and investigating insurers, intermediaries and other relevant organizations
Protecting policyholder interests
Adjudicating disputes between insurers and intermediaries or insurance intermediaries
Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations.
Regulating companys’ investment of funds and margin of solvency
Insurance industry has seen revolutionary changes after the establishment of IRDA. The rules
and regulation brought by the agency has helped this sector witness tremendous growth as a
result of private companies starting their business and rising awareness about insurance in
people.

This graph suggests that private insurers have outpaced the national insurer LIC by 5
percentage point during 2015 – 2016. ICICI Prudential is top collector of premium among its
private followed by SBI Life. But, the percentage increase in insurance premium through new
business is larger for SBI Life than ICICI Prudential.

Market share of private insurers has also increased by 1.1 percentage point over the previous
year which shows a good growth prospect and acceptability of private insurers by the general
public.

Company Overview – IDBI Federal Life Insurance

IDBI Federal Life Insurance Co Ltd. was started in March 2008. It 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 Ageas (a multinational insurance giant based out of
Europe). Its main activity is selling and promoting insurance products across India through
direct marketing (agents and brokers), bankassurance, agency channels or CSF. In this
venture, IDBI has 48% share, while Federal bank and Ageas own 26% each. Since its
inception in 2008, it became one of the fastest growing insurance companies in India and
garnered Rs 100 crores in premium in the first five month of operation.
The company believes in launching innovative products which aims to deliver world class
wealth management, protection and retirement solutions to meet the changing demand of
different segment of customers. The company got its license from IRDA in December, 2007
but it officially started its operations in March, 2008. Vighnesh Shahane is the CEO and
Director of this company which is headquartered in Mumbai.
IDBI Federal added another feather to its cap when it was able to break even within just 5
years of commencing operation. Through a nationwide network of 3,014 branches of IDBI
Bank and Federal Bank, and a sizeable network of advisors and partners, IDBI Federal has
issued nearly 8.23 lakh policies till 31st March 2016 with a sum assured of over Rs. 51,256
crores.
About the Sponsors of IDBI Federal Life Insurance Co Ltd

IDBI Bank Ltd is a leading public sector bank which offers personalized banking and
financial solutions to its clients in the retail and corporate banking. Its large network of 1077
branches and 1720 ATMs serves the customers across the country. They have also set up an
overseas branch at Dubai and have plans to open representative offices in various other parts
of globe.
Federal Bank is one of India's leading private sector banks, with a dominant presence in the
state of Kerala. Initially known as the Travancore Federal Bank, it gradually transformed into
a fully-fledged bank under the able leadership of its founder, Mr. K P Hormis. It has a strong
network of over 1,142 branches and 1,312 ATMs spread across India. The bank serves over
four million retail customers with a wide variety of financial products.
Ageas is an international insurance group with a heritage spanning more than 180 years.
Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate
its business activities in Europe and Asia, which together make up the largest share of the
global insurance market. These are grouped around four segments: Belgium, United
Kingdom, Continental Europe and Asia and served through a combination of wholly owned
subsidiaries and partnerships with strong financial institutions and key distributors around

the world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy,
Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Hong
Kong and UK.
It can be observed from the graph that the profit of IDBI Federal grew steadily from 2013 to
2015. But in the year 2016, the profit of the company declined drastically by 90% of the
value in 2015.
The experts said that muted sales of traditional policies & pension products and lower
persistency ratio of a few small, mid and large sized life insurers contributed to this massive
decline said experts.
This decline was observed in the entire insurance industry and only few companies were able
to make a positive change in profit after tax. Underwriting efficiencies and building good
renewals are the pillars of profitability in insurance industry.

Nature of Business

The nature of the business of IDBI Federal is listed below –

1. Channel agency – There are agencies which are authorized to sell insurance products of the
company.
2. Bankassurance – IDBI Federal sells its products through the branches of partner banks
IDBI and Federal across India.
3. Direct Marketing – Agents sell the insurance products of the company directly to the
customers.
4. Online – There are a few products that the company offers online but the business through
this medium is minimal as of now.

Mission
To continually strive to enhance customer experience through innovative product offerings,
dedicated relationship management and superior service delivery while striving to interact
with our customers in the most convenient and cost effective manner.
To be transparent in dealing with our customers and to act with integrity.
To invest in and build quality human capital to achieve company`s mission.

Vision
To be the leading provider of wealth management, protection and retirement solutions that
meets the needs of our customers and adds value to their lives

Values
Transparency - Crystal Clear communication to our partners and stakeholders.
Value to Customers - A product and service offering in which customers perceive value.

Delivery on Promise – This translates into being financially strong, operationally robust and
having clarity in claims.

Customer friendly - Advice and support in working with customers and partners.
Profit to Stakeholders - Balance the interests of customers, partners, employees, shareholders
and the community at large

Size of the company

Manpower
The company has achieved a robust network of more than 3,000 branches across India in less
than 9 years. They have also touched the lives of 8,00,000+ customers, with over 8.23 lakh
policies. IDBI Federal Life Insurance Co. has around 1,941 employees and over 10,000
agents who are working for the company.
Turnover
The company achieved its breakeven within 5 years of its inception. Also, the turnover of the
company was around 1250 crore in the year of 2015-2016.

Literature Review

Literature Review on Insurance Sector and penetration of Life Insurance

1) Aditya Nath Jha, (2014) studied proper analysis of various distribution channels in life
insurance industry in India has been done. Before privatization only individual insurance
agent was allowed to sell life Insurance. But After the IRDA Act, distribution channel further
expanded.
2) Anand Thakur, (2013) studied critical review of present marketing strategies in health
insurance sector has been availed and useful marketing ideas has been suggested. Health
insurance has vast potential in Indian insurance market. But at present, there are limited
products and less awareness resulting in poor penetration.
3) Anshuja Tiwari, (2012) evaluated bancassurance model of distribution of insurance
services has been discussed with reference to lift insurance industry. Insurance sector was
opened up in the year of 2000. Before that only individual insurance agent was allowed to
sell life insurance products But catering the need of industry IRDA introduced several other
distribution option like corporate agent, broker, direct selling and bancassurance.
4) Arvind Kumar Singh, (2014) studied the current scenario of life insurance sector has been
taken up. At present the market is moving rapidly and aggressively. There is competition and
force to more ahead. The features of this expansion strategy is hunting for new business
looking up for potential and grabbing it.
5) Arup Mazumdar, (2011) analyzed the broking system, challenges & opportunities are
discussed and new marketing concept as Relationship Model approach has been argued.
Indian insurance industry is growing fast after privatization and moving ahead.
6) Arnika Srivastava, (2012) studied the review of life insurance industry in the country has
taken up. Life insurance is the backbone of economy. LIC i.e. Life insurance Corporation has
monopoly in life insurance sector. But after the IRDA Act, the sector is opened up for private
Sectors.
7) Bidyadhar Padhi, (2013) emphasized the role and performance of private insurance
companies in Indian Insurance Sector after opening up of the sector in 1999 has been
examined and studied. Before liberazation, LIC & GIC had monopoly over the Sector. But in
the period of 2001 to 2012. 23 private insurance companies in life insurance sector and 28
private companies in General insurance sector started the business.
8) Bhagabat Barik, (2014) A general study of life insurance sector in India has been done.
Life insurance is not merely an investment but it is a protective tool. The protection of human
being against calamities and financial compensation in term of death is the basic idea of life
insurance. Insurance is the fastest growing industry in the country.
9) B. Muthukrishnan, (2013) accessed health insurance sector in India has been done. There
is very less penetration of health insurance. Only 3% of the population has got some what
health insurance. Unfortunately health insurance is purchased only to save income tax. The
reason behind this is very poor level of awareness about health insurance products.
10) B. S. Bodla, (2012) studied ICICI Prudential Life Insurance Company is a leading life
insurance company in private sector. A study of this company has been done. Quality service
is the key for growth of any insurance company. Studied the quality of service is accessed
through following parameters. 1) Reliability 2) Responsiveness …….
11) B. Charumathi, (2012) reviewed the various factors which are affecting the profitability
of life insurance companies in India have been studied and discussed. Indian life insurance
industry has been ranked 9th largest market among 156 countries and 5th fastest growing life
insurance industry in the world.
12) D.Rajasekar, (2014) The SWOT analysis i.e. strengths, weakness, opportunities and
threats for bancassurance has been studied. Bancassurance is a distribution model for
insurance products. World bancassurance is a combination of bank insurance. Bank is a
vehicle which selling different types of financial products like loans, PPF, Money Transfer,
Share & debentures, deposits, etc.
13) G. Karunanithi, (2012) took overall review of performance and marketing strategies
ofLIC of India. Before Privatization LIC has monopoly over the sector. But after
privatization now there 24 insurance companies in life insurance market. It has eroded LIC
share to 71% of the market. LIC was not able to tap all the market and more than 80% of the
population of India does not have any insurance cover.
14) Harpreet Singh Bedi, (2011) analyzed of business of life insurance before the financial
and economic reforms and after their reforms. Also present insurance scenario and
competitative environment has been discussed in detail. The investment strategy of LIC has
been studied.
15) Harmanpreet Singh, (2012) evaluated satisfaction level of female employees working in
insurance industry in India is critically analyzed. For this present scenario of insurance sector
and causes which produce stress on female employees has been studied.
16) Ipsita Swain, (2012) Service delivery and relationship management in life insurance
industry has been critically analyzed. Quality of service is very important factor in service
industry. Life insurance is related to service industry. Customers satisfaction is key for
success in life insurance has been studied.
17) Joginder Singh Arora, (2011) the distribution channels in life insurance sector has been
critically examined from the period of 2001 to 2011. Distribution channels are means to reach
potential customers. The efficiency professionalism, effectively of the distribution channels
will directly result into the performance of the company.
18) Kavita Mahajan, (2013) studied quality of service in insurance sector is analyzed and
importance of delivery of quality service is stressed upon. Service is the key for better
performance. It is easy to get new business from existing customers by delivering good
service that to develop new business.
19) Kishor Kumar Meena, The impact of foreign investment in life insurance sector has been
studied. It is observed that private sector life insurance companies are breading life insurance
market and creating new business records. Easier it was LIC monopoly over this Sector. Due
to foreign investment, the needed capital is available. It has helped to boost life insurance
business in the country.
20) Kamal Gulati, (2012) studied customer satisfaction level and analyzed quality of service
and post sale relationship is very important. Many a times in Insurance industry, it is assumed
that “Sell it and forget it” nature of insurance agents and employees. But it is Wrong.
21) Manoj Kumar Mishra, (2014) analyzed demand of life insurance. For this annual
financial data from the year 1970-71 upto 2009-10 has been considered. It is pointed out that
factors like income, inflation, interest rates, financial development, grows domestic savings
and the rate of growth of economy play vital role in creating the demand of life insurance.
22) N. Prasanna Kumar, (2014) took overall review of Indian insurance market. There are 52
insurance companies out of which 24 are in life insurance sector and 28 are in general
insurance sector. 8 companies belong to public sector and 44 companies are private insurance
companies.
23) Naresh Ramdas Madhavi (2014) studied and narrated about the growth potential in
insurance sector in India. There is huge potential as only 7% of the population has life
insurance cover and hardly 1% of the population has general insurance cover. Insurance
sector in India is ruled by Insurance Act 1938, LIC Act 1956, General Insurance Business
Act 1972 and IRDA Act 1999. Insurance plays a vital role in development of economy.
24) Prarthana Shahi, (2013) evaluated the marketing strategies by LIC. After the privatization
through IRDA Act in 1999, now there are 23 private insurance companies fighting for
business with LIC. Before IRDA LIC had monopoly over insurance sector.
25) Preeti Upadhyay, (2013) The main objective has studied The Satisfaction level of the
policy folders. Simultaneously It is aimed to study the trends in insurance sector before
privatization and after a decade of privatization. Various products and plans offered by
insurance companies has been studied and awareness about public sector companies and
private sector companies has been analyzed.
26) R. Sridhar, (2013) It is emphasized that the growth of insurance sector in India will go in
hand with Public sector and private sector. 54 insurance companies are working in India out
of which 25 are in life insurance sector and 28 are in non life sector. Out of there 54
companies 8 companies are from public sector and remaining 46 companies are from private
sector. The penetration of insurance is improving in the country and density of insurance.
27) Ruby Singh, (2014) Studied the need and importance of foreign direct investment in
Indian Insurance Industry. Before it the review of the scenario of Insurance sector in India on
three levels has been taken (i) Pre independence (ii) Nationalization and (iii) Post IRDA. It is
discussed and analyzed that there is huge potential for expansion and growth for insurance
sector in the country.
 CHAPTER 2
RESEARCH METHODOLOGY
Purpose of Study:-

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. India with 3.42 per cent penetration rate in the insurance
sector offers greater penetration potential when compared to global average of 6.2 per cent
The country’s insurance market is expected to quadruple in size over the next 10 years from
its current size of US$60 billion.
Demographic factors such as growing middle class, young insurable population and growing
awareness of the need for protection and retirement planning will support the growth of
Indian life insurance.
There is a need to understand the importance of promotional mix adopted by life insurance
companies in India.
The companies are designing various marketing strategies with help of promotional tools and
try to create awareness for insurance products.
There is a need to select right mix of promotional activities to suit customer needs from
insurance companies at particular time and to use it correctly to achieve result.
The insurance companies are developing and implementing brand image and trying to
stimulate their target audience to buy their products or services.
Due to various measures taken by insurance sector, the customer is largely affected. It is
important to find out the extent of impact on customer and his reaction

Research objective
The project report main objective is to study the Promotion and distribution Strategies of
IDBI Federal Life Insurance Co. Ltd.
The study of the major objective will enable the organization to achieve the following:
The brand awareness among the customers
The competitors presence in the market
Various Promotional aspects attracting the customer
The customer preference regarding the distribution channels
All of the above will contribute to the organization to make the informed decision making
regarding the promotional mix as it will have the impact on the reaching the customer.
Customer being the king in the today’s market we need to reach them in proper time and shall
be able to provide them convenience in getting connected with the organization such that they
won’t move to the competitor. This will eventually impact the profitability and sustainability
of the organization in this competitive world

Research Design
A research design is the set of methods and procedures used in collecting and analyzing
measures of the variables specified in the problem research. The design of a study defines the
study type (descriptive, correlation, semi-experimental, experimental, review, meta-analytic)
and sub-type (e.g., descriptive-longitudinal case study), research problem, hypotheses,
independent and dependent variables, experimental design, and, if applicable, data collection
methods and a statistical analysis plan. A research design is a framework that has been
created to find answers to research questions.
Some Key Points:
Population:
The population for the study constitutes those individuals who have awareness
about the insurance companies and policies.

Sample:
In statistics and quantitative research methodology, a data sample is a set of data collected
and the world selected from a statistical population by a defined procedure. The elements of
a sample are known as sample points, sampling units or observations
Sample Size:
Researcher decided to distribute the 100 questionnaires for consumer of life insurance
companies to achieve the objective of research.

Sampling technique:
A convince sampling method will be used for the study

Tools of Data Collection:

To address the mentioned objectives, data has been collected from respondents using
a questionnaire

Questionnaire
A questionnaire a research instrument consisting of a series of questions (or other types of
prompts) for the purpose of gathering information from respondents. The questionnaire was
invented by the Statistical Society of London in 1838.
Although questionnaires are often designed for statistical analysis of the responses, this is not
always the case.
Questionnaires have advantages over some other types of survey in that they are cheap, do
not require as much effort from the questioner as verbal or telephone surveys, and often have
standardized answers that make it simple to compile data. However, such standardized
answers may frustrate users. Questionnaires are also sharply limited by the fact that
respondents must be able to read the questions and respond to them. Thus, for
some demographic groups conducting a survey by questionnaire may not be concrete
Source of Data:
Primary Data
Primary data is a collected by a researcher from first-hand sources, using methods like
surveys, interviews, or experiments. It is collected with the research project in mind, directly
from primary sources

Secondary data
Secondary data refers to data which is collected by someone who is someone other than the
user. Common sources of secondary data for social science include censuses, information
collected by government departments, organizational records and data that was originally
collected for other research purposes.
Under this study the above two source of data have been utilized. The study is mainly based
upon the primary data. However the secondary data has been used as the supporting source to
avail the information regarding company profile and such.
 CHAPTER 3
DATA ANALYSIS AND INTERPRETATION
Data Collection through questionnaire resulted in the availability of the desired information
but the analysis and interpretation of the results were the critical task. The data collected by
questionnaire was analyzed and interpreted with the help of pie charts.
ANALYSIS OF QUESTIONNAIRE: -
1. Age Distribution
Age Respondents

Below 20 Nil 21 to 25 32 25 to 30 34 30 to 35 2

The respondents were intentionally chosen to be in the age group of 21-35 years as they are
the most likely candidate to invest in insurance products as a part of financial planning early
in their career. People in this age group are quite adaptable and flexible in their choices. So it
is easy to convince them into buying innovative insurance products from private companies if
the products are good, unlike people from earlier generation who are very fixated in buying
insurance from a selected set of companies. Also they use online medium with ease and
collect sufficient information before purchasing financial products. This awareness can be
boon for
the private insurers which want to create a differentiation in the market by offering
competitive products in the market. Thus the view of this age group is of paramount
consideration for the insurers.

2. You buy insurance products based on the following (Multiple checkboxes) -

Criteria Respondents Description by agents/brokers 17(25%) Going through the policy
prospectus 31(45.6%) I do my own research 43(63.2%) Company`s brand 25(36.8%)

This question was designed to find out how people choose a particular insurance product
before filling the policy documents. Looking at the stats, we find that out of 68 people, 43 do
their own research before buying any policy. People now have become aware and they also
go through prospectus to get the details of the policies which sometimes is not explicitly
mentioned by the insurers. Only 17 out of 68 respondents have said that they would purchase
the products after consulting their agents which shows that trust from the traditional channel
is diminishing. About 25 respondents feel that the brand of the company is important for
them before buying the policy.
3. Reasons for buying life insurance –
Respondents appear to be very aware of the need to buy insurance products. 55 out of 68
have cited it as their reason among others for buying insurance. About half the people also
said that they would like to use life insurance as investment options which means hybrid of
insurance and investment would find a good following with this cohort of people. 29 people
said that they would like to use insurance as tax saving instrument. It is also clear that people
are simply not going to buy insurance just because everybody else has it. They have their
owb requiremnts tailored to their specific needs.

4. Awareness about distribution channels –

Criteria Respondents Agents 53(77.9%) Bankassurance 31(45.6%) Insurance marketing
firms 24(35.3%) Online 49(72.1%)

Criteria Respondents Financial security 55(80.9%) Life cover as investment options 34(50%)
Tax saving instrument 29(42.6%) Because everybody has it 1(1.5%)

When it comes to awareness, this group of people are highly aware of the insurance
distribution through agents. 53 out or 68 reported awareness of agents selling insurance
policies, which is quite understood because at some point in life people are exposed to these
agents who might have sold insurance policies to their parents or relatives. People are also
aware of banks selling insurance for their partner insurers through their retail distribution
channels. Insurance marketing firms which sell products of many insurance companies seem
to be losing in this front. Though only a few options of insurance products are available
online, most of the people are aware of this option which shows the online exposure of these
age group.
5. Preference to buy insurance policies –
Criteria Respondents Agents 30(44.1%) Bankassurance 24(35.3%) Insurance marketing
firms 9(13.2%) Online 40(58.8%)
About 40 respondents say that they would like to purchase insurance policy online which just
confirms the trend. There are about 30 people who would like to buy insurance from their
agents. This may be because people still want some credible faces which could represent the
company. Buying insurance from banks do not feature high in their list and so their lies an
opportunity to tap the banks to reach out to these age group aggressively. Insurance
marketing with only 9 responses is last in their choice list and the onus is on these firms how
good they market themselves to become a credible alternative to bankassurance and agents
led business.
6. Cheapest way to buy insurance
Criteria Respondents Agents 11.8% Bankassurance 8.8% Insurance marketing firms 5.9%
Online 73.5%

People in this group are highly aware that online medium is the cheapest of all the options
available for buying insurance. Though there are some people who believe otherwise but this
fact suggests that investment in online channel can deliver rich dividend for the insurers.

7. Whether they have trust on agents/brokers?

Criteria Respondents Yes 45.6% No 54.4%

Majority of respondents said that they don`t trust their agents and it may be because the
agents don`t explicitly educate their customers about the products they are selling and the
customers might have difficulty in settling the claims. Though 45.6% people said that they
trust their agents, still it is very important for the insurers to bring transparency around the
products and train their agents to provide right information to their customers. Trust is a
major pivot of insurance business and insurers must try to establish trust with their customers
to have long term relationship with them. This aspect is also important because a major chunk
of business comes from renewal premiums.
8. Awareness about insurance policies available -
Criteria Respondents Term Plan 57(83.8%) Money Back 46(67.6%) Endowment plan
23(33.8%) ULIPs 22(32.4%)
Most of the respondents are aware of term plan. Also 46 out of 68 respondents knew about
money back plan. ULIPs are recent innovation in insurance industry designed to give benefits
of both insurance and better return on investment. ULIPs have huge potential because they
are market linked products and hence offer a chance of far better return than traditional
insurance products. As some of the ULIPs offered by IDBI federal have outperformed the
market in the recent years, the company can push these products by sensitizing people more
about these products.

9. Most likeliness to buy which insurance policies -

Criteria Respondents Term Plan 47.1% Money Back 44.1% ULIPs 8.8%
Almost equal percentage of respondents shows the tendency to buy term plan and money
back plan. Term plans are a good option when it comes to financial security but money back
plans are considered inferior because of poor returns and inadequate life cover. On the other
hand, ULIPs are better option when it comes to getting good returns while having life cover
at the same time. Thus companies like IDBI Federal can reach their new and existing
customers to offer them ULIPs.

10. ULIPs as investment options -

Criteria Respondents Yes 16.2% No 20.6% May be 63.2%
This graph shows that only 16% of people would take ULIPs as an investment option. There
are about 20% respondents who say that they won`t be investing in ULIPs to meet their
investment requirement. But at 63.2% there are a significant number of people who may
consider this product. It shows that this age group is still not very much aware of ULIPs and
hence educating them is the responsibility of insurers. This may help to draw new customers
towards insurance and increase revenue.

11. Knowledge about IDBI Federal life insurance company -

Criteria Respondents Yes 73.5% No 26.5%
Although most of the respondents know about IDBI Federal insurance company, there are
still significant number of people in this age group who don`t know about this company. It is
both a challenge and opportunity for the company to target this segment by targeted
marketing and advertising.

12. Source of knowledge about IDBI Federal insurance company -

Criteria Respondents TV commercials 25% Billboards/Hoardings 10.3% Online Platforms
41.2% Marathon organised by the company 1.6% Through agents/brokers 22.1%
41% of respondents have reported that they got to know about IDBI Federal insurance
company through online channels. TV commercials come second at 25%. Agents and brokers
are the third most important source of creating brand awareness. Though Marathon organised
by the company are quite popular in some metro cities where they are conducted, it seems to
be assisting in brand recall rather than being a direct source of brand awareness.

13. How could insurance products be more compelling?

Criteria Respondents Better returns 44(64.7%) More options to buy insurance products
online 19(27.9%) Awareness through advertisement 8(11.8%) More transparency in the
offering 45(66.2%)
most of the respondents do believe that better return and transparency can make insurance
products more attractive, something that insurance industry has struggled from the beginning.
It shows that the company which can deliver what it promises its customers without hiding
the facts may capture market because credibility is always appreciated by customers. People
don`t think that by doing more advertisement insurance products could become more sellable.
There are about 20% of people who believe that insurance companies need to bring more
options in the market to meet their insurance needs. This seems to be because of traditional
products not being able to meet their desired goals.

14. Recommendation of IDBI Federal`s products to your family and friends -

Criteria Respondents Yes 17.6% No 20.6% May be 61.8%
Now this is a very important question because insurance very much depends on referral. So if
a customer says he would recommend a company`s product to his near and dears, it definitely
means that they have a very good perception about the company and they are satisfied with
the products and services offered by the company. But in this case the number of people
saying is more than the number of people saying yes. It may be because of some unpleasant
experience with the products and/or services offered, or negative feedback about the
company. This doesn`t seem to bode well for the company.
But there is a silver lining because about 62% of respondents said that they might refer IDBI
Federal to their friends and family members. The real opportunity lies here because the
company may come up with some solutions to create a positive perception in their mind
 CHAPTER 4
FINDINGS AND SUGGESTIONS
Findings
The survey was done by floating online questionnaire to target the youth who are already
working or would be joining the work force in a year or two. The respondents’ age recorded
to be in between 21 - 35 years. The sample size was 68.
People in this age group believe in doing their own research before buying insurance
policies. Now people also like to look at prospectus before purchasing the policies. They are
least likely to purchase the policies just by the description given by agents and brokers.
People in this age group are very much aware of the purpose of taking insurance policies
which is financial security. Almost 50% of people in this age group also see insurance as
investment option. This age group also considers insurance as tax saving instrument.

Most of the respondents are aware of agents and online as distribution channels where as
there are almost 50% of people who know about distribution through banks. It appears that
people don`t have much idea about insurance marketing firms selling insurance policies.
Most people say that they would go for buying insurance policies online because of the
belief that policies are cheaper to purchase online. Agents are the second most preferred
channel whereas buying policies through banks and insurance marketing firm are in third and
fourth spot for this age group respectively.
This age group knows that insurance policies bought online are the cheapest way of buying
online policies.
Major chunk of this age group doesn`t trust on their insurance agents. This may be because
of past experiences or negative feedbacks from people who have had such experience in the
past.
Most of the respondents in this age group want to buy either term insurance policy or
money back policy. Very few people say that they would buy ULIPs despite high return
potential of the product.
ULIPs offer a good investment alternative but it seems this age group is not very much
aware about the ULIPs. So the insurers have their task cut out to outreach this segment with
ULIPs.
Most of the people are aware of IDBI Federal insurance company however there are still
about 27% people who are not aware of the brand.
Online platforms are the major source for creating brand insurance of the company. TV
commercials have contributed to around 25% in creating brand awareness. Agents and
brokers have also helped in creating brand awareness. Bill boards and hoardings don`t have
much impact in building the brand.
Respondents in this age group believe that better returns and more transparency could
make insurance products worthy to consider. According to them, more insurance policies
should be made available online to make it more attractive. People also feel that aggressive
advertisement campaign may not make much difference in their willingness to buy insurance.
Respondents face dilemma when it comes to referring their near and dears for purchasing
insurance policies from IDBI Federal. About 21% said that they would recommend its
products. These may be the happy customers who earlier had nice experience with the
products. About 21% said they wouldn’t recommend insurance products. But the real
opportunity for the company is to target people who responded in may be. The company must
find ways to influence this group which would go a long way in establish new brands.

Suggestions:-

The company needs to make the details of products and policies easily accessible online
because people now believe in doing their own research. Prospective customers should be
encouraged to contact the company`s staffs online through social media or emails to get their
queries answered. This would help the company to provide relevant information about their
products and the chances of getting mislead will be very less. The company should call the
interested customers to know whether their queries have been resolved or they need further
assistance. This would create good will for the company as well.
The company should give all the details in the prospectus without leaving any space for doubt
in later stages. In this business those companies will win which the customers would perceive
honest in their dealings and presenting least surprises.
There should be proper training for the agents so that they provide correct information to the
customers without any intention of cheating. To target people who like to buy insurance from
well established companies, IDBI Federal should promote its strong credentials and public
private partnership which may win the trust of the customers who want to do business with
only government insurers.
Life insurance is primarily bought for financial security and most people believe the same.
But there are people who see life insurance as tax saving instruments and as an investment
option with additional benefits of life cover. The company should promote its products to
meet the specific needs of customers. It can be done through direct channels by first asking
agents to assess the needs of customers instead of blindly pushing the products to maximize
their benefits. After doing proper need assessment, they should be offered products that are
most suitable to them. This concept of need assessment should also be promoted via online
channels. This may work as a differentiation factor for the company and customers may look
at the company as a credible one which is going to have a long term impact on its
profitability.
The people in this age group wants to buy insurance online because they know that
absence of an agent will reduce the overall cost of buying insurance and hence additional
savings for them. To cater to their needs, the company should offer at least one product from
each category (money back plan, term plan, ULIP plan) online. This is to ensure that lack of
option doesn`t cause the insurer to lose customers for this reason only. There are many people
who like to talk to a credible face before committing to buy an insurance policy and they
would stick to it. But for this particular age group providing more options is always going to
attract more business.
One important observation from this survey was majority of the customers don`t trust
agents selling the policies and this is the reason why people are very skeptical of any
insurance policy. To counter this, the company should give value oriented training to their
sales force. The company should incentivize those agents whose customers have registered
the least complaints because most of the time customers blame that they were kept in dark
while selling the policy. Creating trust will go a long way in a business where the products
offered by the companies are not highly differentiated.
Effort should be made to create more awareness about unit linked investment plans
because by far they are the most innovative product in insurance business and the respondents
don`t seem to have much idea about this. The company may conduct seminars to make
people aware about this product. Online channels are the best source to spread this
information. Social media including company`s facebook page, twitter handle, you tube, blog
posts could be leveraged to spread words about ULIPs. Returns comparable to other
investment instruments along with tax benefits and life cover makes it a unique product to
market. Direct and indirect distribution channels could also be used for promotion of this
product. This is a great product especially for the people in the age group of 21-35 because
they have the risk taking potential and they could be the most likely customers of ULIPs.
Facebook posts at regular intervals, small informational videos could be a great way to start
with. The company could also target their existing customers offering ULIPs
A considerable number of respondents have said that they might consider ULIPs as an
investment option that means there is a huge potential that could be unlock by targeting
people who have recently joined the work force or are about to join soon.
IDBI Federal should do aggressive marketing campaign to improve its outreach. Despite
being in the insurance business for about 8 years, even some tech savvy people are unaware
of it. Thus the company should give itself more online exposure. This again could be done
without spending too much on traditional advertisement methods and doing aggressive online
campaigns. The tie ups with social organization working for welfare of people can help it
establish itself as a socially responsible organization creating more goodwill for the company.
Funding events on climate change, disease prevention, healthy living could further boost its
image.
It appears from the survey that hoardings and billboards are not a great source of creating
brand awareness but they eat up a significant part of advertising expenditure. Whereas the
cheapest source of advertising using online channels are creating the highest impact. Thus
more focus on online advertising is recommended and expenditure in billboards could
probably taken to tier ii or tier iii cities to expand its presence.
Marathon organized by the company is a big event which boasts of Sachin tendulkar as its
brand ambassador but the hype generated doesn`t seem to be much. The company must
leverage this opportunity because no competitors of IDBI Federal organize such a large
event. Again heavy content deployment around the event is suggested which can be a game
changer for brand awareness.
The company should try to present itself as a completely transparent organization because
there is a belief out there in the market that insurance policies are not what they claim to
be. Thus, to be more acceptable to the customers the promotional events could also be
weaved around offering transparency in services. If the company delivers what it claims to
without any strings attached, it could earn the company trust of the customers which means
long term business prospects for the insurer.
People are also concerned about the returns offered by the insurance companies. It means that
products which offer good return like ULIPs could find more acceptances in this age group of
customers. Thus ULIPs seems to have lot of potential which could be unleashed using
targeted promotional strategies.
One important point to note is that only spending huge money in promotional activities would
be futile if it is not backed by products offering good features. So promotional and marketing
activities should complement good product and high profile marketing campaigns can`t be a
substitute to inferior product and services.

If customers are not willing to recommend a product in their close circle, it means that
there is something wrong with the product or the company offering it. More people saying no
than yes to the above question poses serious questions for the company. The company has to
work a lot for building its image and it`s only possible if it keeps delivering on its promises.
Word of mouth marketing is what IDBI Federal needs badly, and hence it is recommended to
focus on product distribution and services offered afterwards. Good product backed with
superior promotional and distribution strategies could help IDBU Federal to grow at a good
pace. This firm has good potential but to stay ahead it is highly recommended to chart its own
path and take daring and bold moves which competitors can`t anticipate.
Mobile Commerce has become very big and maybe in the coming days, the company could
think of launching a mobile app through which customers can browse details of the products
and pay renewal premium as well. It could be the first for the company and other feature
directed towards providing better customer service could be added later.
CHAPTER 5
Conclusion
Limitations of Study:
 The study was conducted only in the Nagpur, Pune and Mumbai areas; hence the
results can be biased and hence not exactly accurate.
 The survey was to be conducted on 100 respondents but due to time constraint and
unavailability of large number of respondents, the survey was filled by 80 people
only.
 The survey includes more number of responses of people within the age group of 18-
30. Hence, the study may be biased, as, at that age, income is less and people take life
insurance lightly.
CONCLUSIONS
The Summer Internship project has helped me gain huge practical knowledge which can’t be
gained only through books. This experience gave me an opportunity to learn new things
which provided me a peek into the corporate culture. Being a fresher, I would never be
exposed to a corporate environment if it were not for this project. I thank IDBI Federal life
insurance for giving me the chance to work with them as a summer intern and showing me
the path of knowledge and experience which will help me succeed in my career and enter into
a bright future.
CONCLUSIONS ON PROMOTION ND DISTRIBUTION

IDBI Federal has to increase the number of ads in order to have better presence in the market.
It can choose television advertisements as a major source as compared with other sources.
The advertisements should be designed attractively and the frequency should increase to at
least 4 per week. It should also plan for ads on internet as most of the companies are moving
towards social media to promote their products. Finally we conclude the study by stating that
IDBI Federal has to improve their promotional strategies in order to increase their market
share.
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4. Gartner, Inc.: “Brokerage General Agents Fail to Use Technology to Promote
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