5 Ulips

A REPORT ON
“A Comparative Study and Analysis of Unit Linked Insurance Plans (ULIPs)-An IDBI F
ORTIS Perspective”
BY C. JOHN WILLIAMS (08BSHYD0323)
IDBI FORTIS LIFE INSURANCE COMPANY
Submitted to: Prof.S.Subramanian Date of Submission: 16
th
May 2009
AUTHORISATION This report “ Comparative nalysis of Unit Linked Insurance Plans (UL
IPs) – An IDBI FORTIS Perspective” done during my Summer Internship Program (SIP) is
submitted as a partial fulfillment of the requirement of MBA program of ICFAI B
usiness School (IBS), Hyderabad. 16th May 2009 C.JOHN WILLIAMS
ICFAI BUSINESS SCHOOL-HYDERABAD
Page 2
ACKNOWLEDGEMENTS I would like to express my sincere gratitude to my company guid
e Ms.Shanthi Yagyanath, Agency Manager -IDBI Fortis Life Insurance Company, Coim
batore for guiding me throughout my summer internship and research project. Her
encouragement, time and effort are greatly appreciated. I would then like to tha
nk my faculty guide, Prof. S Subramanian, for all his valuable inputs and consta
nt support towards me throughout my project and providing me an opportunity to l
earn outside the class room. It was a truly wonderful learning experience. I wou
ld like to thank the training heads Mr.Anand, Ms Sudha and Sales executive Ms Pr
iya for helping me with the training and other activities and constantly motivat
ing me to give my best. I would like to dedicate this project to my parents. Wit
hout their help and constant support this project would not have been possible.
I would like to thank all my friends who did their SIP from IDBI FORTIS for thei
r valuable suggestions and support. Last but not the least I would like to thank
all the respondents who offered their opinions and suggestions and sometimes cr
itical views throughout the survey which made me constantly update myself come o
ut with a successful project.
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TABLE OF CONTENTS
AUTHORISATION ..................................................................
..................................................... ...2 ACKNOWLEDGEMENTS ....
................................................................................
.......................... ..3 ABSRACT .........................................
................................................................................
.......... ....6 LIST OF ILLUSTRATIONS .........................................
.......................................................................8 INTRODU
CTION ..........................................................................
............................................... .10 PURPOSE ....................
................................................................................
............................... .12 SCOPE OF THE STUDY .........................
................................................................................
........12 OBJECTIVES OF THE PROJECT ...........................................
..........................................................12 LIMITATIONS OF THE
STUDY ..........................................................................
............................12 METHODOLOGY .....................................
................................................................................
... .13 SOURCES OF DATA ........................................................
.............................................................14 LITERATURE STUDY
...............................................................................
.....................................14 INSURANCE ..............................
................................................................................
................. ..15 CHARACTERISTICS OF INSURANCE ............................
.................................................................15 HISTORY OF I
NDIAN INSURANCE ................................................................
...............................15 INSURANCE MARKET PRESENT .....................
...........................................................................16 CA
PITAL REQUIREMENTS AND FOREIGN PARTICIPATION ...................................
......................17 LIFE INSURANCE ........................................
................................................................................
.18 COMPANY PROFILE ............................................................
........................................................21 ABOUT IDBI FORTIS ...
................................................................................
.................................21 PRODUCT RANGE OF IDBI FORTIS ...............
...............................................................................2
3 UNIT LINKED INSURANCE PLANS...................................................
.............................................24 STRUCTURE OF ULIPs .............
................................................................................
....................24 TYPES OF FUNDS UNDER ULIPs ..............................
....................................................................27 ADVANTAGE
S OF ULIPS .....................................................................
.........................................28 FACTORS INFLUENCING THE BUYING OF UN
IT LINKEDINSURANCE PLAN (ULIPs) .....................2 9 UNIT LINKED INSURANCE P
LANS (ULIPs) OF DIFFERENT COMPANIES .......................................3 0 I
DBI FORTIS LIFE INSURANCE COMPANY ..............................................
.....................................30 COMPARITIVE SECONDARY DATA ANALYISIS ...
.......................................................................... 31
ICFAI BUSINESS SCHOOL-HYDERABAD Page 4
TATA AIG LIFE INSURANCE COMPANY ................................................
.......................................31 BAJAJ ALLIANZ LIFE INSURANCE COMPANY .
.............................................................................. 3
3 LIFE INSURANCE CORPORTAION (LIC) OF INDIA ....................................
....................................35 HDFC STANDARD LIFE INSURANCE COMPANY ....
......................................................................37 ICICI P
RUDENTIAL LIFE INSURANCE COMPANY ...............................................
..........................39 PERFORMANCE OF ULIPs OF THE SELECTED COMPANIES ....
.....................................................44 PRIMARY DATA ANALYSIS ..
................................................................................
........................48 MERITS AND DE-MERITS OF IDBI FORTIS LIFE INSURANCE CO
MPANY ......................................57 MERITS ..........................
................................................................................
............................ .57 DEMERITS ......................................
................................................................................
............ .57 POSITIONING ...................................................
.......................................................................... .59 P
OSITIONING STRATEGIES...........................................................
...............................................59 POSITIONING STRATEGIES OF IDBI
FORTIS ........................................................................
........60 FINDINGS ............................................................
....................................................................... .63 RECO
MMENDATIONS ....................................................................
............................................ .64 MY EXPERINECES AND LEARNINGS ..
................................................................................
..........66 CONCLUSION ........................................................
..................................................................... .66 ANNEXU
RE I (QUESTIONNAIRE) ...........................................................
....................................69 ANNEXURE II (FACTOR ANALYSIS OUTPUT [SPSS
]) ..................................................................73 ANNEXURE
III (SCHEDULE OF THE PROJECT) .................................................
..........................79 REFERENCES ........................................
................................................................................
...... .80
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ABSRACT The project aims to make a detailed study of Unit Linked Insurance Plans
(ULIPs) in the Indian context, a comparative analysis of ULIPs of some well kno
wn selec ted companies and in the process identify the strengths and weaknesses
of IDBI FORTIS. The different selected companies apart from IDBI FORTIS on which
the project is entirely focused are namely: a ICICI PRUDENTIAL . BAJAJ ALLIANZ
b . TATA AIG LIFE c . LIFE INSURANCE CORPORATION OF INDIA d . HDFC STANDARD LIFE
e . The comparative study is primarily based in terms of the various benefits o
ffered viz. Death Benefits, Health benefits, Maturity Benefits, financial benefi
ts & other benefits. The various parameters taken into consideration were flexib
ility, transparency, liquidity and the number of funds options available. The pr
oject consists of a detailed analysis of the c omparison of various ULIPs of IDB
I FORTIS with that of the selected major players in the market. The results of t
he project have been an outcome of a detailed analysis of c ollected secondary d
ata and well supported by analysis of primary data collected through a survey in
the Hyderabad city. The project required me to design a questionnaire and condu
ct a primary survey. The survey was mainly conducted to study the consumer perce
ption, opinion and awareness of various insuranc e products. The number of respo
ndents targeted was 133.The sample of respondents included was carefully selecte
d targeting respondents from all age groups. Also the preferences of the respond
ents towards these selected insurance companies have been noted and the reasons
analyzed. The data gathered from the primary survey was coded in a statistical t
ool called as Statistical Package for Social Science (SPSS) for analysis and to
find various factors that affect an investor dec isions while choosing an invest
ment option in this vast market. Finally we interpreted the results of the proje
ct by combining both the primary and the secondary data analyses then identified
the areas where the company is really strong and the areas where it needs to ha
ve a second look. We have also found out the amount to which each of the selecte
d companies was affected due to the market slow down in the last one year The pr
oject also involved a complete study of the positioning strategies adopted by IB
DI FORTIS in general. This includes a detailed study of the various advertising
strategies as well.
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The sole objective of this study was to understand the strategies being adopted
by the company to counter the highly efficient stronger players in the market an
d survive with success. Finally after a detailed study we have found out the mer
its and demerits of the IDBI FORTIS and based on those we have given some recomm
endations to the company in areas where the company to has to really work on. Th
e Project helped me enhance my knowledge on various technicalities of the Indian
insurance industry and gave me a broader prospective of various investment oppo
rtunities available in the market. Marketing concepts learnt in the classroom we
re implemented in a real life environment.
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LIST OF ILLUSTRATIONS Figure 1: The trend of the Indian insurance industry ($Bn)
2000-2011 .................................17
Table 1 : The list of life insurance companies in India ........................
....................................18 Figure 2 : The market share of the Indian
Life Insurance industry ........................................19 Figure 3 : P
remium break -up under 24 ULIPs ................................................
.............................. Table 2 : Types of funds under 26 ULIPs .........
............................................................................. Fi
gure 4 : Advantages of Unit Linked Insurance Plans .............................
...............................31 Table 3 : NAVs of HDFC Standard 43 Life ......
.............................................................................. F
igure 5 : NAVs of HDFC Standard 43 Life ........................................
............................................. Table 4 : NAVs of Bajaj Allianz ..
................................................................................
.......... 44 .... Figure 6 : NAVs of Bajaj 44 Allianz .........................
......................................................................... Table
5 : NAVs of ICICI Prudential ...................................................
.................................... 44 .... Figure 7 : NAVs ofICICI 44 Prudenti
al .............................................................................
............ Table 6 : NAVs of 45 LIC ..........................................
..................................................................... Figure 8 :
NAVs of 45 LIC ................................................................
............................................... Table 7 : NAVs of IDBI FORTIS...
................................................................................
.......... 45 .... Figure 9 : NAVs of IDBI 45 FORTIS ...........................
...................................................................... Table 8 :
NAVs of Tata- 46 AIG ..........................................................
........................................... Figure 10 : NAVs of Tata-AIG........
................................................................................
....... 46 ..... Table 9 : Percentage c hange in NAVs of various companies due t
o recession ...................... 46 Figure 11 : Percentage change in NAVs of v
arious companies due to recession ..................... 46 Figure 12 : Break-up
of respondents between different age groups ....................................
... 4 7 Figure 13 : Break-up of respondents by their occupations ...............
......................................... Figure 14 : Break-up of respondents ba
sed on their preferences for various savings instruments .......................
................................................................................
................. ...... Figure 15 : Break-up of respondents based on factors in
fluencing their decision ................ . Figure 16 : Break-up of respondents
based on preferences for various forms of investment ... Figure 17 : Break-down
of respondents based on their frequencies of investment Figure 18 : Break-down o
f respondents who own/do not own an insurance policy
48 48 49 49
............5 0 ................ 0 5
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Figure 19 : Break-down of respondents who rated risk involved in ULIPs .........
......................50 Figure 20 : Break-down of respondents who own insurance
policies in various life insurance companies ..................................
................................................................................
.... 51 ...... Figure 21 : Rating scale of selected insurance c 52 ompanies ....
.................................................. Figure 22 : Break-down of res
pondents with different perceptions about the term “WE LTHSUR NCE” .................
................................................................................
........ 52 ..... Figure 23 : Break-down respondents with various responses abou
t the future of IDBI Fortis ....................................................
......................................................................... .53 Ta
ble 10 : Average frequency of investments among different age groups ...........
................. 353 Figure 24 : Average frequency of investments among differe
nt age groups ........................5 4 Table 11 : Age and Frequency of invest
ment (Chi-Square table) ........................................5 4 Table 12 KMO
and Bartlett’s test of sphericity ...............................................
................... 55 Table 13 The prominent factors influencing the consumer’s i
nvestment decision ........... 5 5 Table 14 : List of the cities with IDBI Forti
s presence ..............................................................59
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INTRODUCTIO N In the commercial arena, the choice of an effective strategy is pe
rhaps the most important and the toughest decision to take. The decision to sele
ct among the grand strategies and deciding upon which strategy will best meet th
e enterprise’s objectives is rendered complex by multiple considerations. The same
is also true with the insurance companies in India who are constantly revamping
their strategies and coming out with innovative options to stay in the competit
ion. There were days when Life Insurance Corporation of India (LIC) was the only
insurance company available to people in India and where people synonymised Ins
urance to LIC. Also since it was a Public Sector Undertaking (PSU) it has a grea
t support from people. But now times have changed a lot of private players have
entered into the fray. There have been a lot of Indian companies collaborating w
ith foreign insurance giants like ICICI Prudential, Bajaj Allianz etc who have a
lready made their presence felt in the Indian Insurance industry. Even though LI
C is still the market leader with more than over 60% of the market share, the pr
ivate players are giving it a tough time. Since the last decade the market share
of LIC had fallen down by about more than 20%. The new private players have sta
rted offering a variety of unlimited schemes right from insurance plans for a 30
day old baby to that of a 70 year old senior citizen. Also the private companie
s have started creating the importance and need of insurance in today’s life They
have started positioning their brands and are marketing their products in such a
way the people have started feeling the need of security in their lives. Taking
into account the huge population and growing per capita income besides several
other driving factors, a huge opportunity is in store for the insurance companie
s in India. According to the latest research findings, nearly 80% of Indian popu
lation are without life insurance cover while health insurance and non-life insu
rance continues to be below international standards. And this part of the popula
tion is also subjected to weak social security and pension systems with hardly a
ny old age income security. As per our findings, insurance in India is primarily
used as a means to improve personal finances and for income tax planning; India
ns have a tendency to invest in properties and gold followed by bank deposits. T
hey selectively invest in shares also but the percentage is very small (4-5%). T
his in itself is an indicator that growth potential for the insurance sector is
immense. It s a business growing at the rate of 15-20% per annum and presently i
s of the order of around more than $55 billion. India is a vast market for life
insurance that is directly proportional to the growth in premiums and an increas
e in life density. With the entry of private sector players backed by foreign ex
pertise, Indian insurance market has bec ome more vibrant.
Page 10
Competition in this market is increasing with companys’ continuous effort to lure
the customers with new product offerings. However, the market share of private i
nsurance companies remains low in the 25-35% range. Even to this day, Life Insur
ance Corporation (LIC) of India dominates Indian insurance sector. The heavy han
d of government still dominates the market, with price controls, limits on owner
ship, and other restraints. They private players are still in their initial days
and would take some more time to capture a good market share. At present they a
re coming up with new and innovative ideas. Since the last decade the life insur
ance industry in India has been growing very fast and many new companies have en
tered this business insurance. The Indian life insurance industry has recorded a
robust growth of more than 16 per cent for the nine-month period which ended on
December 31, 2008.It is expected to grow at an amazing rate of 20 per cent this
year Also in the present scenario the most sought after insurance plans are the
Unit Linked insurance Plans (ULIPs) . A ULIP is a life insurance policy which p
rovides a combination of risk cover and investment. ULIPs have gained high accep
tance due to attractive features they offer like flexibility, transparency, liqu
idity and a vast variety of fund option. Unit linked plans are suitable for all
customer profiles; however as a general belief the risk averse investors tend to
choose traditional plans and an informed customer prefers a ULIP.ULIPs offer th
e kind of flexibility that no insurance product can. ULIPs essentially combine t
he benefits of an insurance policy and a market-linked investment. Investors c a
n select a ULIP with an equity-debt combination that is in line with their risk
profile. A risk-taking investor would typically select one with a high equity co
mponent, while a risk-averse investor would opt for a debt-heavy one. Simply put
, ULIPs are structured in such a way that the protection element and the savings
element are distinguishable, and hence managed acc ording to your specific need
s. In this way, the ULIP plan offers unprecedented flexibility and transparency.
So with many players around for a company to really be successful it has to rea
lly be very efficient on all fronts. It has to constantly adapt to the changing
consumer preferences with a lot of new innovations and implementing new technolo
gy try to different from the lot. Especially if it is a new player in the market
the company has to really work very hard to get into the completion and stay af
loat.
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PURPOSE The project is being done as a part of summer internship program of ICFA
I Business SchoolHyderabad. The completion of the project is a partial fulfillme
nt requirement for being awarded the Masters in Business Administration (MBA) de
gree from the university. SCOPE OF THE STUDY This study aims to make a comparati
ve study of the Unit Linked Insuranc e Plans (ULIPs) of IDBI FORTIS Life Insuran
ce Company with that of some major selected players in the Indian insurance mark
et and study the consumer perception towards various insurance products. The com
parative analysis is based on the empirical data collected from the Hyderabad ci
ty. The study also aims to discuss in detail the various positioning strategies
adopted by IDBI FORTIS in general. OBJECTIVES OF THE PROJECT a . b . c . d . To
compare the Unit Linked Insurance Plans (ULIPs) of IDBI FORTIS with that of some
other selected companies. To identify the strengths and weaknesses of IDBI FORT
IS and suggest areas where it could focus more and improve upon. To study the co
nsumer perception towards various insurance products. To study in detail the pos
itioning strategies of brand IDBI FORTIS in general.
LIMITATIONS OF THE STUDY a . b . c . The study is confined only to a small segme
nt of the entire population due to monetary and time constraints and hence the r
esults are applicable only to the city of Hyderabad. The scope of the project is
limited to conceptual and marketing aspects of Life Insurance Companies and doe
sn’t include Claim Settlement and the underwriting part of the operations which ar
e equally important aspect of learning. It is not always possible to evaluate co
mpanies under similar parameters since many companies deal with various business
es thus clubbing all the companies on the same parameters is not always possible
.
Page 12
METHODOLOGY The techniques used for data collection are: A Internet surveys and
. Questionnaire method B . The following methodology has been followed to achiev
e the objectives of the project. Step: 1 Developing a right research design and
timeline for the project. Step: 2 Collecting Secondary data of the insurance Ind
ustry Step: 3 Designing of the Questionnaire Step: 4 Analysis of secondary data
Step: 5 Pilot Study Step: 6 Collection of primary data-Questionnaires and intern
et surveys Step: 7 Analysis of primary data Step: 8 Study of positioning strateg
ies of IDBI FORTIS Step: 9 Interpretation of the results Step: 10 Preparation of
the final report
Page 13
SOURCES OF DATA In the data collection method, we have collected both primary an
d secondary data to meet our objec tives Primary Data The primary data was colle
cted by a survey based on the questionnaire. It was formulated on the basis of i
nformation carefully gathered by me about the various mindsets of the people. Th
is questionnaire was mainly formulated to target the common man to see his perce
ption and awareness of various investment options available. The number of respo
ndents targeted was around 150 and the survey was confined to Hyderabad city. Se
condary Data The secondary data was collected directly from the companies and th
eir websites and internet surveys. Also a lot of similar research studies and jo
urnals have been referred to.
LITERATURE STUDY Till today a lot of research has been done on the Indian insura
nce industry especially the life insurance sector. The material for this study w
as collected from various internet sites, journals and books by various authors.
Similar research has been carried out by Sathak Mohanty who worked on the risk
profile of ULIPs and analyzed insurance as an investment option. He says that Li
fe Insurance Corporation of India (LIC) is still the undisputed leader in the In
dian context. According to Anita Gupta-director, marketing and communication, IN
G Vysa Life insurance ULIPs are suitable for all types of customers, right from
the lower class to the premium c lass. Also according to the Financial express (
Dated 12th April, 2009) ULIPs are flexible to the core. During the course of the
project some official studies on the products of Tata-AIG and HDFC standard Lif
e have been referred to. Also the books on Marketing Management by Philip Kotler
and that of Marketing Research by Naresh Malhotra were referred to gain a deepe
r insight on positioning strategies and marketing research techniques. A lot of
groundwork has also been done by studying the vast range insurance products befo
re taking up this research.
Page 14
INSURANCE Insurance may be described as a social device to reduce or eliminate r
isk of loss to life and property. Under the plan of insurance, a large number of
people associate themselves by sharing risks attached to individuals. The risks
which can be insured against include fire, the perils of sea, death and acciden
ts and burglary. Any risk contingent upon these, may be insured against at a pre
mium commensurate with the risk involved. Thus collective bearing of risk is ins
urance. CHARACTERISTICS OF INSURANCE 1 . 2 . 3 . 4 . 5 . Sharing of risks Cooper
ative device Evaluation of risk Payment on happening of a spec ial event The amo
unt of payment depends on the nature of losses incurred.
HISTORY OF INDIA N INSURANCE Insurance has a long history in India. Life Insuran
ce in its current form was introduced in 1818 when Oriental Life Insurance Compa
ny began its operations in India. General Insurance was however a comparatively
late entrant in 1850 when Triton Insurance company set up its base in Kolkata. H
istory of Insurance in India can be broadly bifurcated into three eras: a Pre Na
tionalization . Nationalization and b . Post Nationalization c . Life Insurance
was the first to be nationalized in 1956. Consolidating the operations of variou
s insurance companies formed Life Insurance Corporation of India. General Insura
nce followed suit and was nationalized in 1973. General Insurance Corporation of
India was set up as the controlling body with New India, United India, National
and Oriental as its subsidiaries. The process of opening up the insurance secto
r was initiated against the background of Economic Reform process, which commenc
ed from 1991. For this purpose Malhotra Committee was formed during this year wh
o submitted their report in 1994 and Insurance Regulatory Development Act (IRDA)
was passed in 1999. Resultantly Indian Insurance was opened for private compani
es and Private Insurance Company effectively started operations from 2001. (Sour
ce: www.irdaindia.org)
INSURANCE MARKET - PRESENT The insurance sector was opened up for private partic
ipation a decade back. For years now, the private players are active in the libe
ralized environment. The insurance market has witnessed dynamic changes, which i
nclude presence of a fairly large number of insurers both life, and non-life seg
ment. Most of the private insurance companies have formed joint venture partneri
ng well-recognized foreign players across the globe.
The Indian life insurance market generated total revenues of $41.36 billion in 2
007, thus Representing a compound annual growth rate (CAGR) of 11.84% for the pe
riod spanning 20002007. Life insurance market had a growth of $22.46 billion wit
hin a period of 7 years with a growth rate of 118.24%. Estimated life premiums r
ose to INR 1,470,800 million ($36.77 billion) in 2006 from INR 1,301,540 million
($32.54billion) in 2005. We envisage that life premiums in 2011 will be $65.96
billion, a growth larger than they were in 2007. The performance of the market i
s forecast to accelerate, with an anticipated CAGR of 9.78% for the four-year pe
riod 2007-2011 expected to drive the market to a value of $65.96 billion by the
end of 2011. There would be a growth of $24.6 billion i.e. 59.48% in the next 4
years. Non-life premiums in India were $6.53 billion in 2007. Gross written prem
ium (GWP) in the Indian non-life insurance market reached a value of $5.75 billi
on in 2006, this representing an annual growth of 13.55% for the period spanning
2006-2007. Estimated non-life premiums rose from INR230 billion ($5.75 billion)
in 2006 to INR261 billion ($6.53 billion) in 2007. We anticipate that non-life
premiums will grow by a CAGR of 9.40% between 2007-2011. We are looking for non-
life premiums to rise by $405 million over the five years to the end of 2011 wit
h a growth rate of 62.02%. (Source: http://www.scribd.com/doc/4996143/OVERVIEW-O
FINSURANCE-SECTOR-INDIA,http://www.indiaprwire.com/pdf/pressrelease/200805079347
.pdf) With a huge population base and large untapped market, insurance industry
is a big opportunity area in India for national as well as foreign investors. In
dia is the fifth largest life insurance market in the emerging insurance economi
es globally and is growing at 32-34% annually. This impressive growth in the mar
ket has been driven by liberalization, with new players significantly enhancing
product awareness and promoting consumer education and information. The strong g
rowth potential of the country has also made international players to look at th
e Indian insurance market. Moreover, saturation of insurance markets in many dev
eloped economies has made the Indian market more attractive for international in
surance players, according to "Booming Insurance Market in India (2008-2011)”
Page 16
Total life insurance premium in India is projected to grow Rs 1,230,000 c rore b
y 2010-11. Total non-life insurance premium is expected to inc rease at a CAGR o
f 25% for the period spanning from 2008-09 to 2010-11.
With the entry of several low-cost airlines, along with fleet expansion by exist
ing ones and increasing corporate aircraft ownership, the Indian aviation insura
nce market is all set to boom in a big way in coming years. Home insurance segme
nt is set to achieve a 100% growth as financial institutions have made home insu
rance obligatory for housing loan approvals.
Health insurance is poised to become the second largest business for non-life in
surers after motor insurance in next three years. A booming life insuranc e mark
et has propelled the Indian life insurance agents into the ‘top 10 country list’ in
terms of membership to the Million Dollar Round Table (MDRT) — an exclusive club f
or the highest performing life insurance agents. (Source: http://www.marketsmoni
tor.com/Report/IM588_related.htm)
CAPITAL REQUIREMENTS AND FOREIGN PARTICIPATION Minimum capital requirement for d
irect life and Non-life Insurance company is INR1000 million and that for reinsu
rance company is INR2000 million. A maximum 26% foreign equity stake is allowed
in direct insurance and reinsurance companies. In the 2004-05 budget, the Govern
ment proposed for increasing the foreign equity stake to 49%. (Source: www.irdai
ndia.org)
Page 17
LIFE INSURANCE s is evident from its very name it deals with insurance of human
life “Life insurance corporation of India”- a public sector undertaking has the mono
poly in this sector since its nationalization. In our wordily life, whenever the
re is uncertainty, there is an involvement of risk. The instinct for security ag
ainst such risk is one of the basic motivating forces determining human attitude
s. As a squeal to this quest for Security, the concept of insurance must have be
en born. The urge to provide insurance or protection against the loss of life &
property must have prompted people to make some sort of sacrifice willingly in o
rder to achieve security through “COLLECTIVE CO-OPER TION” in this sense story of in
s urance is probably as old as the story of mankind. All life insurance companie
s in India have to comply with the strict regulations laid out by Insurance Regu
latory and Development Authority of India (IRDA). Therefore there is no risk in
going in for private insuranc e players. In terms of being rated for financial s
trength like international players, only ICICI Prudential is rated by Fitch Indi
a at National Insurer Financial Strength Rating of AAA (Ind) with stable outlook
indicating the highest claims paying ability rating.
90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 2000 2001 2002 2003 2
004 2005 2006 2007 2008 2009 2010 2011 Life Non-life
Figure 1: The trend of the Indian insurance industry ($Bn) 2000-2011 (Source: Th
e knowledge Centre)
Life Insurance Corporation of India (LIC), the state owned behemoth, remains by
far the largest player in the market. Among the private sector players, ICICI Pr
udential Life Insurance(JV between ICICI Bank and Prudential PLC)is the largest
followed by Bajaj Allianz Life Insurance Company Limited (JV between Bajaj Group
and Allianz).
Page 18
The private companies are coming out with better products which are more benefic
ial to the customer. Among such products are the ULIPs or the Unit Linked Insura
nce Plans which offer both life cover as well as scope for savings or investment
options as the customer desires. Further, these types of plans are subject to a
minimum lock-in period of three years to prevent misuse of the significant tax
benefits offered to such plans under the Income Tax Act. Unlike the mutual fund
product that has a very simple cost structure, ULIPs carry a greater number of c
osts (administration and mortality), in addition to the others. So c omparing UL
IPs with mutual funds is erroneous. (Source: http://www.scribd.com/doc/136703/In
dian-Insurance-Changing-Trends-and-a-FreshPerspective ) Right now there are a to
tal twenty two life insurance companies operating in India, of which one (Life I
nsurance Corporation) is a Public Sector Undertaking and the remaining twenty ar
e all private sector enterprises. (Source: www.irdaindia.org) List of life insur
ance companies in India 1 AEGON RELIGARE . AVIVA 2 . BAJAJ ALLIAZ 3 . BHARATHI A
XA 4 . BIRLA SUN LIFE 5 . FUTURE GENERALI 6 . HDFC STANDARD LIFE 7 . HSBC 8 . IC
ICI PRUDENTIAL 9 . IDBI FORTIS 10. 11. ING VYSYA 12. KOTAK LIFE INSURANCE 13. LI
C 14. MAX NEWYORK LIFE 15. MET LIFE 16. RELIANCE LIFE 17. SAHARA INDIA 18. SBI L
IFE 19. SHRIRAM LIFE 20. TATA AIG LIFE 21. DLF PRAMERICA 22. CANARA HSBC OBC
Table 1: The list of life insurance companies in India
Page 19
MARKET SHARE
2% 3% 2% 3% 3% 7% 9% 64%
LIC
1% 6%
ICICI Prudential Bajaj Allianz SBI Life Reliance HDFC Standard Life Sun Life Bir
la Max Newyork Kotak Mahindra Others
Figure 2: The market share of the Indian Life Insurance industry (figures are ap
proximate) (Source: As per a report published in 2008 by Ms Pinky Walia-Financia
l Advisor)
Page 20
COMPANY PROFILE ABOUT IDBI FORTIS IDBI Fortis Life Insurance Co Ltd is a joint v
enture between three leading financial conglomerates – India’s premier development a
nd commercial bank IDBI Bank one of India’s leading private sector banks Federal B
ank and Europe’s banking and insurance giant, Fortis, each of which enjoys a signi
ficant status in their respective business segments. In this venture, IDBI Bank
owns 48% equity while Federal Bank and Fortis own 26% equity each. IDBI Fortis l
aunched its first set of products across India in March 2008, after receiving th
e requisite approvals from the Insurance Regulatory Development Authority (IRDA)
. The company offers its services through a vast nationwide network across the b
ranches of IDBI Bank and Federal Bank in addition to a sizeable network of advis
ors and partners. At IDBI Fortis, people endeavor to deliver products that provi
de value and convenienc e to the customer. Through a continuous process of innov
ation in product and service delivery the company intends to deliver world-class
wealth management, protection and retirement solutions to Indian customers IDBI
Ltd. continues to be since its inception India’s premier industrial development b
ank Created in 1956 to support India’s industrial bac kbone IDBI has since evolved
into a powerhouse of industrial and retail finance Today it is amongst India’s fo
remost commercial banks, with a wide range of innovative products and services,
serving retail and corporate customers in all corners of the country from over 4
90 branches and more than 600 ATMs. The Bank offers its customers an extensive r
ange of diversified services including project financing, term lending, working
capital facilities, lease finance, venture capital, loan syndication, corporate
advisory services and legal and technical advisory services to its corporate cli
ents as well as mortgages and personal loans to its retail clients. As part of i
ts development activities, IDBI has been instrumental in sponsoring the developm
ent of key institutions involved in India’s financial sector – such as the Securitie
s and Exchange Board of India (SEBI), National Stock Exchange of India Limited (
NSE) and National Securities Depository Ltd. Federal Bank is one of India’s leadin
g private sector banks with a national network and dominant presence in the stat
e of Kerala. It has a strong network of over 550 branches and 450 ATMs spread ac
ross India. The bank provides over four million retail c ustomers with a wide va
riety of financial products. Federal Bank is one of the first large Indian banks
to have an entirely automated and interconnected branch network. They operate o
n the core banking platform and are RTGS/ NEFT enabled through which the Bank of
fers state-of-the-art technology enabled products and services.
In addition to interconnected branches and ATMs, the Bank has a wide range of se
rvices like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, d
ebit cards, co-branded credit cards, online bill payment and call centre facilit
ies to offer round the clock banking convenience to its customers. The Bank has
been a pioneer in providing innovative technological solutions to its customers
and the Bank has won several awards and recommendations. Fortis, a European fina
ncial services provider engaged in banking and insurance with a presence in over
50 countries, offers its personal, business and institutional customers a compr
ehensive package of products and services through its own channels, in collabora
tion with intermediaries and through other distribution partners. With a market
capitalization of over EUR 40 billion Fortis ranks among the 20 largest financia
l institutions in Europe Fortis’ sound solvency position and dedicated, profession
al workforce of over 80,000, enables it to combine global strength with local fl
exibility to provide its clients with optimum support and service .
VISIO N
To be the leading provider of wealth management, protection and retirement solut
ions that meets the needs of our customers and adds value to their lives.
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 effecti
ve manner. To be transparent in the way we deal with our customers and to act wi
th integrity. To invest in and build quality human capital in order to achieve t
he mission.
VALUE S
MISSIO N
Transparency:Crystal Clear communication to our partners and stakeholders Value
to Customers:A product and service offering in which customers perceive value Ro
ck Solid and 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, shareholder sand the community
at large
Page 22
PRODUCT RANGE OF IDBI FORTIS IDBI Fortis offers a variety of products targeting
every customer right from a 3 month child to a 70 year senior citizen. All the p
roducts have been classified majorly under four plans namely Wealthsurance Homes
urance Bondsurance Retiresurance
WEALTHSURANC E
The Wealthsurance Foundation Plan enables the customer to save and build wealth
to meet your financial goals. However, unlike other investment alternatives, it
also enables him to achieve his wealth goals even in the event of unexpected dea
th, accidents, disablement or serious illness. The Wealthsurance Foundation Plan
can ensure that his plans for wealth creation are achieved by protecting that p
lan with insurance benefits.
HOMESURANC E
The Homesurance Protection Plan is a reducing term plan, which provides insuranc
e cover equal to the outstanding balance of your home loan. In the unfortunate e
vent of death of the home loan borrower, the insurance cover enables repayment o
f the home loan liability.
BONDSURANC E
Bondsurance is a single premium plan which allows you to make a one-time investm
ent and get a guaranteed amount on maturity. You can choose a maturity period of
5 or 10 years for your investment. At the end of the chosen period, you will re
ceive a guaranteed maturity amount. Besides the guaranteed maturity amount, Bond
surance also provides a life insurance cover. In case of death before the maturi
ty date, a Death Benefit which is also guaranteed will be paid. Thus you can get
life insurance cover, while earning an assured return on your investment.
RETIRESURANC E
Retiresurance is a pension plan without life cover that allows a longer policy t
erm so that the customer’s investments can get the benefit of compounding The cust
omer has to choose any vesting age between 40-75 yrs. The vesting age chosen can
also be postponed or preponed within the above range by informing the company 3
0 days in advance. It is especially for people who wish to lead a happy and pros
perous life even after their retirement. (Source:www.idbifortis.com)
Page 23
UNIT LINKED INSURANCE PLANS Unit linked insurance plan (ULIP) is a life insuranc
e solution that provides the client with the benefits of protection and flexibil
ity in investment. It is a solution which provides for life insurance where the
policy value at any time varies according to the value of the underlying assets
at the time. The investment is denoted as unit and is represented by the value t
hat it has attained c alled as Net Asset Value (NAV). ULIPs are a category of go
al-based financial solutions that combine the safety of insurance protection wit
h wealth creation opportunities. In ULIPs, a part of the investment goes towards
providing a life cover. The residual portion of the ULIP is invested in a fund
which in turn invests in stocks or bonds; the value of investments alters with t
he performance of the underlying fund opted by the customer. Simply put, ULIPs a
re structured in such that the protection element and the savings element are di
stinguishable, and hence managed acc ording to your specific needs. In this way,
the ULIP plan offers unprecedented flexibility and transparency. ULIPs came int
o play in 1960s and became very popular in Western Europe and America. The reaso
n that is attributed to the wide spread popularity of ULIP is because of the tra
nsparency and the flexibility which it offers to the clients. As time progressed
the plans were also successfully mapped along with life insurance needs to reti
rement planning In today’s times ULIP provides solution for all the needs of a cli
ent like insurance planning financial needs financial planning for c hildren’s fut
ure and retireme nt planning.( Source:http://www.scribd.com/doc/7216240/Understa
nd-ULIP-Insurance) STRUCTURE OF ULIPs ULIPs offered by different insurers have v
arying charge structures. Broadly the different types of fees and charges are gi
ven below. However the insurers have the right to revise or cancel the fees and
charges over a period of time ( Source: http://www.scribd.com/doc/7044410/ULIPs)
Premium Allocation charges This is a percentage of the premium appropriated tow
ards charges before allocating the units under the policy. This charge normally
includes initial and renewal expenses apart from commission expenses.
Page 24
Mortality Charges These are charges to provide for the cost of insurance coverag
e under the plan. Mortality charges depend on number of factors such as age, amo
unt of coverage, state of health etc . Fund Management Charges These are fees le
vied for management of the fund(s) and are deducted before arriving at the Net A
sset Value (NAV) . Policy/ Administration Charges These are the fees for adminis
tration of the plan and levied by cancellation of units. This could be flat thro
ughout the policy term or vary at a pre-determined rate
PREMIUM
LESS CHARGES
INVESTMENT REPRESENTED AS UNITS
LIFE COVER
Administration Charges Premium Allocation Charges
Mortality Charges
ULIPs Structure
Fund Management Charges
Invested Amount
Figure 3 : Premium break -up under ULIPs
Page 25
Surrender Charges A surrender charge may be deducted for premature partial or fu
ll encashment of units wherever applicable, as mentioned in the policy condition
s. Fund Switching Charge Generally a limited number of fund switches may be allo
wed each year without charge, with subsequent switches, subject to a charge. But
now a days many insurers offer fund switching free of cost. Service Tax Deducti
ons Before allotment of the units the applicable service tax is deducted from th
e risk portion of the premium.
Page 26
TYPES OF FUNDS UNDER ULIPs Most insurers offer a wide range of funds to suit one’s
investment objectives risk profile and time horizons. Different funds have diff
erent risk profiles. The potential for returns also varies from fund to fund. Th
e following are some of the common types of funds available along with an indica
tion of their risk characteristics . (Source: www.irdaindia.org)
General description Nature of investments Risk category Equity Funds Primarily i
nvested in company stocks with the general aim of capital appreciation. Invested
in corporate bonds, government securities and other fixed income instruments. S
ometimes known as Money Market Funds — invested in cash, bank deposits and money m
arket instruments Combining equity investment with fixed interest instruments Me
dium to High
Income, Fixed Interest and Bond Funds
Medium
Cash Funds
Low
Balanced Funds
Medium
Table 2: Types of funds under ULIPs
Page 27
ADVANTAGES OF ULIPS ULIP distinguishes itself through the multiple benefits that
it provides to the consumer. The plan is a one stop solution for everything the
customers want. Unit Linked Insurance Plans (ULIPs) are different from traditio
nal plans purely because, they are much more transparent, various charges are sh
ared with the customer before the sale of the product, so as to enable the custo
mer to make an informed decision. ( Source:www.scribd.com /doc/7044410/ULIPs) Cu
stomers have the flexibility to choose their life cover. Also the customers have
the choice of multiple fund options based on their risk appetite, thereby enabl
ing an investor to make the desired returns from the investment. The following a
re some of the advantages of Unit linked plans: a . b . Life protection Investme
nt and Savings Market linked fund based on risk profile Switch option Premium re
direction Automatic Transfer Plan(ATP) c . d . e . f . Tax Planning Flexibility
of cover continuance Transparency Extra protection with riders Death due to acci
dent Disability Critical illness g . Liquidity Partial withdrawals during the te
rm At maturity h . i . j . Variable investment options Premium holiday Allow Top
-ups
Page 28
Long Term Wealth Creation Tax Benefits
Insurance +nvestmen I t
Allow Top Ups
ADVANTAGES OF ULIPS
Rider s
Guarantee d Capital Returns Flexibilit y
Transparenc y
Premiu m Holiday
Invest per your appetite
as risk
Figure 4: Advantages of Unit Linked Insurance Plans
FACTORS INFLUENCING THE BUYING OF UNIT LINKEDINSURANCE PLAN (ULIPs) The degree o
f buying of ULIPs insurance varies from person to person. It depends upon many f
actors. The factors can be classified into personal, social, economic, psycholog
ical and company related variables. Age and experience of policyholder are perso
nal factors, while the co- education is a social factor. Economic factors includ
e occupation, income and wealth, and the psychological factors consist of percep
tion, satisfaction about the services rendered by insurance companies, the impac
t of advertisement and personal selling made by insurance companies on policyhol
ders. The company related variables are the promotional efforts to sell the poli
cies to prospective buyers. These include advertisement and personal selling too
.
Page 29
UNIT LINKED INSURANCE PLANS (ULIPs) OF DIFFERENT COMPANIES IDBI FORTIS LIFE INSU
RANCE COMPANY IDBI FORTIS different variety of schemes and a good range of ULIPs
under the flagship banner Wealthsurance. There are a lot of other ULIPs under B
ondsurance, Homesurance and Retiresurance but as our study is only confined to t
he study and comparative analysis of ULIPs under Wealthsurance we would just be
discussing about the various plans under Wealthsurance. As discussed earlier the
Wealthsurance Foundation Plan enables the customer to save and build wealth to
meet your financial goals. However, unlike other investment alternatives, it als
o enables him to achieve his wealth goals even in the event of unexpected death,
accidents, disablement or serious illness. The Wealthsurance Foundation Plan ca
n ensure that his plans for wealth creation are achieved by protecting that plan
with insurance benefits. Wealthsurance is one of its kind in India. The company
offer 11 investment options and 8 protection benefits under the plan apart from
tax benefits (Source: www.idbifortis.com) Under Wealthsurance there are a lot o
f different funds available which are explained below: WEALTHSURANCE Min entry a
ge 30 dys entry age Max 65 yrs Min premium 10000 Max maturity age 75 yrs Riders
ADBR,ADB,WOPR,MAJOR DISEASES BENIFIT,HOSPITAL CASH BENEFIT,T ERMINAL ILLNESS BEN
EFIT Min premium payment term 3 yrs Types of funds EQUITY,NIFTY,Capital Guarante
e, Asset Allocator, GRF,MONTHLY INT A/C,INCOME,LIQUID
As discussed earlier we would be comparing the Unit Linked Insurance Plans (ULIP
s) of the companies selected initially with those of IDBI FORTIS and then make a
detailed analysis. This analysis would be well supported by the primary data an
alysis and then the final results would be interpreted .So here first we would b
e listing out various ULIPs of the selected companies and their details. After t
hat we make a detailed comparison with that of the plans under Wealthsurance of
IDBI FORTIS and explain it. So following are the details of ULIPs of various com
panies and the comparative analyses.
Page 30
COMPARITIVE SECONDARY DATA ANALYISIS TATA AIG LIFE INSURANCE COMPANY TATA AIG OF
FERS FOUR DIFFERENT TYES OF ULIPs a . b . c . d . INVEST ASSURE CARE INVEST ASSU
RE FLEXI INVEST ASSURE II INVEST ASSURE EXTRA
INVEST ASSURE CARE Min entry age 30 dys Max entry age 45 yrs Max Maturity age 65
Min premium 12000 No of funds 5 Riders ADBR,CIBR Min premium payment term NM
INVEST ASSURE FLEXI Min entry age 30 dys Max entry age 70 yrs Max Maturity age 8
0 Min premium 15000 No of funds 7 Riders ADBR,CIBR Min premium payment term NM
INVEST ASSURE II Min entry age 15,20,30 yrs Max entry age 45 yrs Max Maturity ag
e 60 Min premium 12000 No of funds 5 Riders ADBR,CIBR, WOP Min premium payment t
erm NM
INVEST ASSURE EXTRA Min entry age 15,20,30 yrs Max entry age 45 yrs Max Maturity
age 60 Min premium 12000 No of funds 4 Riders ADBR,CIBR Min premium payment ter
m NM
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider, NM-Not
Mentioned (Source: www.tata-aig-life.com)
Page 31
COMPARITIVE ANALYSIS I . Through Wealthsurance a customer can even invest at the
age of 65 where as in this product if the customer is beyond 45 years he will n
ot be allowed to invest . Customer can keep his money invested till the age of 7
5 years and take benefit of the market performance whereas here the plan matures
at the age of 65. In Wealthsurance Free partial withdrawal starts after complet
ion of 3 years where as in this product the customer needs to wait for 5 complet
ed years before he can do a withdrawal Wealthsurance has a Premium allocation ch
arge of only 4% as against 50% allocation in this product Through Wealthsurance
a customer can even invest at the age of 65 where as in this product if the cust
omer is beyond 45 years he will not be allowed to invest . Customer can keep his
money invested till the age of 75 years and take benefit of the market performa
nce whereas here the plan matures at the age of 60. Wealthsurance has a Premium
allocation charge of only 4% as against 40% allocation in this product Through W
ealthsurance a customer can even invest at the age of 65 where as in this produc
t if the customer is beyond 45 years he will not be allowed to invest . Customer
can keep his money invested till the age of 75 years and take benefit of the ma
rket performance whereas here the plan matures at the age of 60. Min Entry age i
n Wealthsurance as 0 Years as against the Min Entry age of 15 Years In Wealthsur
ance the Min Premium amount is only Ten Thousand Rupees in comparison to Fifteen
Thousand Rupees in this Product. Wealthsurance has a 4% allocation charge where
as in this product the alloc ation charge is 16% Wealthsurance has different ri
ders/protection Basket to choose from including Hospital cash benefit which give
s money on a daily basis if hospitalized.
INVEST ASSURE CARE
II .
III.
IV . V . INVEST ASSURE II VI .
INVEST ASSURE EXTRA
I . II .
III . IV . I . II . III .
INVEST ASSURE FLEXI
Page 32
BAJAJ ALLIANZ LIFE INSURANCE COMPANY BAJAJ ALLAINZ OFFERS FIVE TYES OF ULIPs a U
NIT GAIN PLUS GOLD . UNIT GAIN PREMIER b . CENTURY PLUS c . NEW UNIT GAIN PLUS d
. PENSION GUARANTEE e . UNIT GAIN PLUS GOLD Min entry age 0 yrs Max entry age 6
0 yrs Max Maturity age 70 yrs Min premium 12000 No of funds 6 Riders 6(after 18)
Min premium payment term 3 yrs CENTURY PLUS Min entry age 8 yrs Max entry age 6
0 yrs Max Maturity age 70 yrs Min premium 25000 No of funds 7 Riders ADBR
UNIT GAIN PREMIER Min entry age 0 yrs Max entry age 60 yrs Max Maturity age 70 y
rs Min premium 50000 No of funds 3 Riders NM Min premium payment term 3 yrs
NEW UNIT GAIN PLUS Min entry age 0 yrs Max entry age 60 yrs Max Maturity age 70
yrs Min premium 10000 No of funds 7 Riders ADBR,WOP CIBR,FIB,HCB PDB Min premium
payment term 3 yrs ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness B
enefit Rider, NM-Not Mentioned, WOP-Waiver of Premium, FIB-Family Income Benefit
, HCB-Hospital Cash Benefit, PDB-Permanent Disability Benefit (Source: www.bajaj
allianz.com)
Min premium payment term 3 yrs PENSION GUARANTEE Min entry age 45 yrs Max entry
age 80 yrs Max Maturity age NA Min premium 25000purchase price No of funds NM Ri
ders NM Min premium payment term NM
Page 33
COMPARITIVE ANALYSIS I . II . III . IV . V . I . II . I . UNIT GAIN PREMIUM II .
I . II . Wealthsurance only has a allocation charge of only 4% in comparison to
15% in this product Max Entry age in Wealthsurance is 65 as against 60 of Unit
Gain Gold Plus Wealthsurance has an Min Entry Age of 0 Years against this produc
t where the entry age is 8 Years. Min Premium in Wealthsurance is only Ten Thous
and Rupees in comparison to Twenty Five Thousand Rupees of this product. In Weal
thsurance there is a choice of 5 riders where as in this product only one rider
is available Wealthsurance only has a allocation charge of only 4% in comparison
to 55% in this product Max Entry age in Wealthsurance is 65 as against 60 of Un
it Gain Gold Plus Min Premium in Wealthsurance is only Ten Thousand Rupees in co
mparison to Fifty Thousand Rupees of this product. Max Entry age in Wealthsuranc
e is 65 as against this product which has a cut of 60 years. Wealthsurance can b
e customized for retirement planning. Customers can opt for a partial withdrawal
without any charges post 3 years from his fund value and use the money as pensi
on. There is no Tax/Charges on the money withdrawn/taken as pension
UNIT GAIN PLUS GOLD
CENTURY PLUS
NEW UNIT GAIN PLUS
PENSION GUARANTEE
Page 34
LIFE INSURANCE CORPORTAION (LIC) OF INDIA LIC OFFERS THREE DIFFERENT TYPES OF UL
IPS a MARKET PLUS . PROFIT PLUS (RP & SP) b . FORTUNE PLUS c . MARKET PLUS Min e
ntry age 18 yrs Max entry age 70 yrs Max Maturity age 75 yrs Min premium 5000 RP
10000 SP No of funds 4 Riders ADBR Min premium payment term 5 yrs
PROFIT PLUS(RP&SP) Min entry age 0 yrs Max entry age 65 yrs Max Maturity age 70,
75 yrs Min premium 1000 RP 20000 SP No of funds 4 Riders ADBR,CIBR Min premium p
ayment term 3 yrs
FORTUNE PLUS Min entry age 12 yrs Max entry age 60 yrs Max Maturity age 65 yrs M
in premium 20000 No of funds 4 Riders ADBR Min premium payment term 5 yrs
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider (Source
: www.licindia.com)
Page 35
COMPARITIVE ANALYSIS I . II . MARKET PLUS III . IV . I . II . III . Premium allo
cation charge is 16.5% in this product where Wealthsurance has a charge of Max 4
%. as Wealthsurance there is unlimited In switching redirection and partial with
drawal allowed absolutely free of charge. There are no riders available in this
produc t as against Wealthsurance has a host of riders to choose from . After 3
years we can go for unlimited partial withdrawals as against in this product the
re are no partial withdrawal available Premium allocation charge is 15% min in t
his product where as Wealthsurance has a charge of Max 4%. In Wealthsurance ther
e is unlimited switching redirection and partial withdrawal allowed absolutely f
ree of charge. There are no riders available in this produc t as against Wealths
urance has a host of riders to choose from . Min Entry age in Wealthsurance is 0
years as against in this product it is 12 years Max entry age in Wealthsurance
is 65 years as against in this product it is 60 years only.
PROFIT PLUS (RP & SP)
FORTUNE PLUS
I . II .
Page 36
HDFC STANDARD LIFE INSURANCE COMPANY HDFC STANDARD LIFE OFEERS FOUR DIFFERENT TY
PES OF ULIPs a ENDOWMENT PLUS II . ENHANCED LIFE PROTECTION II b . UNIT LINKED P
ENSION RP c . UNIT LINKED PENSION SP d . ENDOWMENT PLUS II Min entry age 18 Max
entry age 65 Max Maturity age 75 Min premium 12000 No of funds 7 Riders ADBR,CIB
R Min premium payment term TERM
ENHANCED LIFE PROTECTION II Min entry age 18 Max entry age 45 Max Maturity age 7
5 Min premium 12000 No of funds 7 Riders NO Min premium payment term TERM
UNIT LINKED PENSION RP Min entry age 18 Max entry age 65 Max Maturity age 75 Min
premium 12000 No of funds 7 Riders NO Min premium payment term TERM
UNIT LINKED PENSION SP Min entry age 18 Max entry age 70 Max Maturity age 75 Min
premium NM No of funds 7 Riders NO Min premium payment term TERM
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider (www.hd
fcstandardlife.com)
Page 37
COMPARATIVE ANALYSIS I . II . III . IV . V . VI . Min Entry age in Wealthsurance
is 0 years as against in this product it is 18 years Premium allocation charge
is 40% in this product where as Wealthsurance has a charge of Max 4%. Min Premiu
m in Wealthsurance is 10000 as against this product. Min Entry age in Wealthsura
nce is 0 years as against in this product it is 18 years Premium allocation char
ge is 40% in this product where as Wealthsurance has a charge of Max 4%. Min Pre
mium in Wealthsurance is 10000 as against this product. Max entry age in this pr
oduct is only 45 years where as in Wealthsurance it is 65 years In Wealthsurance
after 3 years unlimited partial withdrawals are allowed where as in this produc
t the customer needs to wait till the 5th year. There are no rider available in
this product as against Wealthsurance has a host of riders to choose from. Alloc
ation charge of 25% on this produc t and Wealthsurance has a 4% c harge. Annuity
is taxable where as all the funds in Wealthsurance is tax free. Wealthsurance c
an be customized to be a tax free retirement plan. Post 3 years customers can al
so do unlimited partial withdrawal whenever there is a need for money without be
ing charged or taxed. Min Premium in Wealthsurance is 10000 as against this prod
uct. There is no rider available in this product as against Wealthsurance has a
host of riders to choose from. Allocation charge of 6% on this product and Wealt
hsurance has a 4% c harge. Post 3 years customers can also do unlimited partial
withdrawal whenever there is a need for money without being charged or taxed. Mi
n Premium in Wealthsurance is 10000 as against this product.
ENOWMENT PLUS II
ENHANCED LIFE PROTECTION I I
VII . I . II . III . IV . V . I . UNIT LINKED PENSION SP II . III . IV .
UNIT LINKED PENSION RP
Page 38
ICICI PRUDENTIA L LIFE INSURANCE COMPANY ICICI PRUDENTIAL OFFERS ELEVEN DIFFEREN
T TYPES OF ULIPs a . b . c . d . e . f . g . h . i . j . k . LIFE TIME GOLD LIFE
LINK SUPER PREMIER LIFE GOLD LIFE TIME PLUS LIFE STAGE SMART KID CHILD PLAN LIF
E TIME SUPER PENSION LIFE STAGE RP PRNSION LIFE STAGE RP LIFE STAGE ASSURE INVES
T SHEILD LIFE NEW
LIFE TIME GOLD Min entry age 0 Max entry age 65 Max Maturity age 75 Min premium
20000 No of funds 7 Riders ADBR,CIBR, WOP Min premium payment term 3 yrs
LIFE LINK SUPER Min entry age 0 Max entry age 65 Max Maturity age 70 Min premium
50000 No of funds 7 Riders NO Min premium payment term SP
PREMIER LIFE GOLD Min entry age 0 Max entry age 65,69 Max Maturity age 75 Min pr
emium 10000 No of funds 7 Riders ADBR,CIBR WORP Min premium payment term 3,5 yrs
LIFE TIME PLUS Min entry age 0 Max entry age 65 Max Maturity age 75 Min premium
20000 No of funds 7 Riders ADBR,CIBR Min premium payment term 3 yrs
Page 39
LIFE STAGE Min entry age 0 Max entry age 65 Max Maturity age 75 Min premium 1500
0 No of funds 7 Riders ADBR,CIBR Min premium payment term LIFE BASED
SMART KID CHILD PLAN Min entry age 0 Max entry age 15 Max Maturity age 25 Min pr
emium 12000 No of funds 7 Riders ADBR,CIBR WOP Min premium payment term 3 yrs
LIFE TIME SUPER PENSION Min entry age 18 Max entry age 65 Max Maturity age 45 yr
s vesting age Min premium 15000 No of funds 7 Riders ADBR,CIBR Min premium payme
nt term 3 yrs
LIFE STAGE RP PENSION Min entry age 18 Max entry age 70 Max Maturity age 50-80 y
rs Vesting age Min premium 15000 No of funds 6 Riders NO Min premium payment ter
m 3 yrs
LIFE STAGE RP Min entry age 0 Max entry age MAX TERM 75 Max Maturity age 75 Min
premium 15000 No of funds 6 Riders ADBR,CIBR Min premium payment term 3 yrs
LIFE STAGE ASSURE Min entry age 0 Max entry age 65 Max Maturity age 75 Min premi
um 10000 No of funds 7 Riders ADBR,CIBR Min premium payment term 3 yrs
INVEST SHIELD LIFE NEW Min entry age 0 Max entry age 65 Max Maturity age 75 Min
premium 12000 No of funds 6 Riders NM Min premium payment term 3 yrs
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider, NM-Not
Mentioned, WOP-Waiver of Premium SP-Single Premium (Source: www.iciciprulife.co
m)
Page 40
COMPARATIVE ANALYSIS I . LIFE TIME GOLD II . III . I . II . III . I . II . III .
I . II . III . I . II . III . IV . Premium allocation charge is premium based i
n this product where as Wealthsurance has a charge of Max 4% and with higher pre
mium the allocation charge decreases . Min Premium in Wealthsurance is only Rs.1
0000 as against in this product it is 20000 In Wealthsurance there is unlimited
switching redirection and partial withdrawal allowed absolutely free of charge.
Premium allocation charge is 20% in this product where as Wealthsurance has a ch
arge of Max 4%. Min Premium in Wealthsurance is only Rs.10000 as against in this
product it is 20000 In Wealthsurance there is unlimited switching redirection a
nd partial withdrawal allowed absolutely free of charge. Premium allocation char
ge is 12% in this product where as Wealthsurance has a charge of Max 4% There ar
e no riders available in this product as against Wealthsurance has a host of rid
ers to choose from . Wealthsuranc e there is unlimited switching In redirection
and partial withdrawal allowed absolutely free of charge Premium allocation char
mium in Wealthsurance is only Rs.10000 as against in this product it is 20000 In
Wealthsuranc e there is unlimited switching redirection and partial withdrawal
allowed absolutely free of charge. Premium allocation c harge is 25% in this pro
duct where as Wealthsurance has a charge of Max 4%. Min Premium in Wealthsurance
is only Rs.10000 as against in this product it is 20000 In Wealthsuranc e there
is unlimited switching redirection and partial withdrawal allowed absolutely fr
ee of charge. There are only 2 riders available in this product as against Wealt
hsurance has a host of riders to choose from .
Page 41
LIFE LINK SUPER
PREMIER LIFE GOLD
LIFE TIME PLUS
LIFE STAGE RP
LIFE STAGE
I . II . III . IV . I .
SMART KID CHILD PLAN
II . III . I . II .
Premium allocation charge is 25% in this product where as Wealthsurance has a ch
arge of Max 4%. Min Premium in Wealthsurance is only Rs.10000 as against in this
product it is 20000 In Wealthsuranc e there is unlimited switching redirection
and partial withdrawal allowed absolutely free of charge. There are only 2 rider
s available in this product as against Wealthsurance has a host of riders to cho
ose from . Premium allocation charge is 20% in this product where as Wealthsuran
ce has a charge of Max 4%. Min Premium in Wealthsurance is only Rs.10000 as agai
nst in this product it is 12000 Wealthsurance can be beautifully customized to b
e a child plan by just adding wavier of premium. Premium payable in this product
is Rs.75000 as against in Wealthsurance it is only Rs.10000 There are only two
rider available in this product as against Wealthsurance has a host of riders to
choose from . Allocation charge of 20% on this product and Wealthsurance has a
4% charge. Annuity is taxable where as all the funds in Wealthsurance is tax fre
e. Wealthsurance can be customized to be a tax free retirement plan. 4. Post 3 y
ears customers can also do unlimited partial withdrawal whenever there is a need
for money without being charged or taxed. Premium payable in this product is Rs
.15000 as against in Wealthsurance it is only Rs.10000 There are only two rider
available in this product as against Wealthsurance has a host of riders to choos
e from . Annuity is taxable where as all the funds in Wealthsurance is tax free.
Wealthsurance can be customized to be a tax free retirement plan. Post 3 years
customers can also do unlimited partial withdrawal whenever there is a need for
money with being c harged or taxed, absolutely free.
LIFE TIME SUPER PENSION
III . IV .
I . II . LIFE STAGE PR PENSION III . IV .
Page 42
I . II . III .
LIFE STAGE ASSURE
In Wealthsurance partial withdrawals are allowed right after 3 years where as in
this product the customer cannot touch his funds till 7th year. First year prem
ium is utilized towards Guaranteed additions and returned on maturity as a Guara
ntee. If you surrender the policy the GA component is not given to the customer
and only the FV which gets accumulated from 2nd premium is returned after deduct
ing surrender charges, where as in Wealthsurance there will not be any other cha
rges apart from surrender charges that too if applicable Premium allocation char
mium in Wealthsurance is only Rs.10000 as against in this product it is 20000 In
Wealthsuranc e there is unlimited switching redirection and partial withdrawal
allowed absolutely free of charge. There are only 2 riders available in this pro
duct as against Wealthsurance has a host of riders to choose from . This product
has no top up facility where as in Wealthsurance tops are allowed any time.
INVEST SHEILD LIFE NEW
IV . V . VI . VII . VIII .
IDBI FORTIS is a new company with over just over one year of operations and so w
e have very less information about its past performance. Therefore not many nega
tives can be found with the company in regard to the Unit Linked Insurance Plans
. Some general demerits with regard to the distribution network and marketing st
rategies have been mentioned after the analysis of the primary data. As a part o
f this comparative analysis we have also compared the performance of ULIPs of a
selected fund since the last one year (as the data of IDBI FORTIS is limited onl
y to the last one year). The comparison has been carried out in the next page.
Page 43
PERFORMANCE OF ULIPs OF THE SELECTED COMPANIES Here in order to compare the perf
ormances of the ULIPs of the selected five companies with that of IDBI FORTIS we
have selected a particular type of fund called equity growth funds. The reason
for selecting equity growth fund is that we would be very c learly able to under
stand the effect of market slowdown on these companies. Here we have considered
the Net asset Values (NAV) of the equity growth funds from April 1 s 2008 to Apr
il 30 th 2009.We have then compared t the compared the maximum and minimum NAVs
during the period and found out the percentage change for the NAVs observed for
the equity funds of the respective selected companies selected companies. We hav
e calculated the average NAV for every month (from April 1 s 2008 to April 30 th
2009) for t all the companies and then plotted them on graphs. We have then fou
nd out the extent to which each company was affected due to the market slowdown.
We have also taken into consideration the latest NAVs of these companies to see
the pattern of growth of these funds post recession. The percentage change (neg
ative) in the Net Asset value for all the companies has been calculated below an
d we observe that LIC was the least affected among the selected companies with o
nly a percentage change of only -23.38% which is quite low compared to -43.84% o
f that of Bajaj Allianz. IDBI Fortis has shown a percentage change of -38.95%.Bu
t since IDBI Fortis is a new company which was started just a year back we c an
say that it has managed quite well and right now it is showing a quite good and
positive growth as we can see from its present NAV.
Month NAV Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09
Feb-09 Mar-09 Apr-09 8.4099 7.7124 7.5374 8.1797 7.9632 5.9740 5.7968 5.6706 5.5
100 5.4479 5.1516 6.1597 6.4646 HDFC STANDARD LIFE
9 8 7 6 5 4 3 2 1 0
MONTH
Table 3 & Figure 5: NAVs of HDFC Standard Life
(Source: wwww.hdfcstandardlife.com) ICFAI BUSINESS SCHOOL-HYDERABAD
Page 44
Feb-09 Mar-09 Apr-09 8.4099 7.7124 7.5374 8.1797 7.9632 5.9740 5.7968 5.6706 5.5
100 5.4479 5.1516 6.1597 6.4646 BAJAJ ALLIANZ
30 25 20 15 10 5 0
MONTH Table 4 & Figure 6: NAVs of Bajaj Allianz
(Source www.bajajallianz.com ) :
Feb-09 Mar-09 Apr-09 56.3500 56.6050 48.9250 48.8700 51.4450 49.1450 39.4450 35.
6850 36.4000 34.8450 34.2650 33.4050 39.9150 ICICI PRUDENTIAL
60 50 40 30 20 10 0
MONTH Table 5 & Figure 7: NAVs of Bajaj Allianz
(Source www.iciciprulife.com ) : ICFAI BUSINESS SCHOOL-HYDERABAD Page 45
Feb-09 Mar-09 Apr-09 12.2400 12.1735 11.0585 11.0290 11.4950 11.1155 9.5505 9.37
75 9.6165 9.6130 9.5395 9.4765 10.5715
Table 6 & Figure 8: NAVs of LIC
LIC
14 12 10 8 6 4 2 0
MONTH
(Source www.licindia.com ) :
Feb-09 Mar-09 Apr-09 10.5838 10.4991 9.1765 9.3448 9.8183 9.0915 7.0785 6.9028 6
.9151 6.6861 6.5328 6.4605 7.7746 IDBI FORTIS
12 10 8 6 4 2 0
MONTH
Table 7 & Figure 9: NAVs of IDBI FORTIS
(Source: www.idbifortis.com) ICFAI BUSINESS SCHOOL-HYDERABAD Page 46
Feb-09 Mar-09 Apr-09 13.4790 13.3460 11.9805 11.9125 12.3240 11.7975 10.1290 9.8
400 9.9140 9.8000 9.6675 9.4175 10.7340 TATA-AIG
16 14 12 10 8 6 4 2 0
MONTH
Table 8 & Figure 10: NAVs of TATA AIG
(Source www.tata-aig-life.com ) : COMPANY % CHANGE BAJAJ ALLIANZ HDFC STANDARD L
IFE ICICI PRUDENTIAL IDBI FORTIS LIC TATA AIG -43.84% -38.74% -40.98% -38.95% -2
3.38% -30.13%
PERCENTAGE (% ) CHANGE
TATA AIG LIC IDBI FORTIS ICICI PRUDENTIAL HDFC STANDARD LIFE BAJAJ ALLIANZ
-30.13% -23.38% -38.95% -40.98% -38.74% -43.84%
Table 9 & Figure 11: Percentage changes in NAVs of various companies due to rece
ssion
Page 47
PRIMARY DATA ANALYSIS We have done a detailed survey in Hyderabad c ity to under
stand and study the consumer’s responses. The primary data was collected through q
uestionnaires. This questionnaire was mainly formulated to target the c ommon ma
n to see his perception and awareness of various investment options available. T
he sample size of the survey was 133.Out of these 89 were male and 45 were femal
e. The sample of respondents was carefully selected covering people in all age g
roups and with different backgrounds and occupations. The analysis of these ques
tionnaires gives us an insight about the mindset of people regarding various inv
estments. We have also used factor analysis in SPSS to extract the prominent fac
tors influencing the investments decisions of the c ustomers .Customer preferenc
es as to where they would like to invest have been studied . Also we come to kno
w about the preferences given by customers towards various top life insurance co
mpanies and their reasons for it. Here we see that most of the customers invest
regularly from quite some time but since the last few months their investments h
ave come down due to recession and market slowdown. Following is the analysis of
the primary data collected through questionnaires. (Please refer to annexure I)
The sample included respondents from all the age groups out of which people in
the age group 18-40 constituted around 70%.
50 45 40 35 30 25 20 15 10 5 0 18-30 31-40 41-50 >50
AGE GROUP
Figure 12: Break-up of respondents between different age groups
The sample of respondents was heterogeneous with people of various occupations r
ight from government service to ones who were self employed. Out of these people
who were working in private companies constituted round 65%.
Page 48
80% 60% 40% 20% 0%
OCCUPATION Figure 13: Break-up of respondents by their occupations
lso the customers’ preferences for different forms of savings have been c arefully
studied The main savings instruments generally preferred by customers are bank
deposits, fixed deposits, investments and post office schemes. Out of these Inve
stments has been preferred by around 43% respondents and fixed deposits by aroun
d 27%.
PREFERENCE OF SAVINGS
6% 12%
12%
Bank Deposits Fixed Deposits 27% Investments Post Office Schemes
43%
Others
Figure 14: Break-up of respondents based on their preferences for various saving
s instruments
Page 49
When we talk about making investment decisions around 45% respondents considered
their own decision and another 40% respondents considered their family’s opinion
before making any important investment dec ision.
50% 40% 30% 20% 10% 0% Family s Friend s Opinion Advice Broker s Own Advice Deci
sion Any Others
DECISION MAKING
Figure 15: Break-up of respondents based on factors influencing their decision
The various forms of investments generally preferred by customers have been iden
tified as mutual funds, stocks and shares, insurance products and government bon
ds. Out of these around 35% preferred stocks and shares and around 20% preferred
insurance products.
FORMS OF INVESTMENT
35 %
29 %
20 % 13 % 5 %
Mutual funds
Stocks and Shares
Insurance Products
Govt Bonds Others
Figure 16: Break-up of respondents based on preferences for various forms of inv
estment
Page 50
The main reason for people to invest in the insurance products was that they had
the advantage of both life cover and tax benefits apart from other normal benef
its. Talking about the frequency of investment around 45 respondents preferred i
nvesting once a year and another 25% preferred investing 2-3 times a year. It wa
s also noticed that greater majority of respondents owned an insurance policy. O
nly 11% of the respondents did not own an insurance policy.
FREQUENCY OF INVESTMNET
1% 14% 15% 45%
Once a year 2-3 Times a year More than 3 Times a year
25%
Not Investing (No Idea) Not Interested
Figure 17: Break-down of respondents based on their frequencies of investment
OWN AN POLICY
INSURANCE
89% 11% Yes No
Figure 18: Break-down of respondents who own/do not own an insurance policy
Page 51
Unit Plans
39%
Linked
Insurance
28% 23%
6% 4%
High risk Moderate risk
Low risk They are safe
No idea
Figure 19: Break-down of respondents who rated risk involved in ULIPs
LIC 1% 1% 2% 2% 3% 5% 7% 13% 63% 3% ICICI Prudential IDBI Fortis Bajaj Allianz H
DFC Life SBI Life Standard
Max New York Birla Sunlife Kotak Mahindra Others
Figure 20: Break-down of respondents who own insurance policies in various life
insurance companies
Around 63% respondents felt that there was an amount of moderate to high risk in
volved with ULIPs. Around 63% of the respondents owned an insurance policy in LI
C which clearly shows that LIC still continues to be the market leader in as it
has been since the last 50 years or so in spite of the presence various powerful
private players which are still finding hard to capture a major market share. A
round 13%b respondents chose ICICI Prudential.
Page 52
Following is the rating (from 1-5, 1-bad, 5-best) given by respondents to the fi
ve selected life insurance companies .Here we can clearly see that LIC has the b
est rating. The reasons given by the respondents were that LIC was a public sect
or company which is well established and has got loads of experience 1 5 BAJAJ A
LLIANZ HDFC STANDARD LIFE ICICI PRUDENTIAL IDBI FORTIS LI C TATA-AIG
Figure 21: Rating scale selected insurance companies
2
3
4
w
WEALTHSURANCE
No idea All the above A finacial security and risk coverage A savings plan with
good returns Tax saving plan
29% 42% 16% 10% 3% 0% 20% 40% 60%
Figure 22: Break-down of respondents with different perceptions about the term “WE
LTHSUR NCE”
Page 53
71%
26% 3%
IDBI Fortis is one of the best
It has a long way to go
Don t know
Figure 23: Break-down respondents with various responses about the future of IDB
I Fortis
Many people responded that they have no idea about IDBI Fortis or its various pr
oducts under the umbrella “wealthsurance” That is true as it is a new company it has
a long way to go as responded by around 26% of the respondents. This could be d
ue to the fact that IDBI FORTIS has a limited presence and it has just started i
ts operations just more than a year ago. We also have found out the age played a
n important role in deciding the investing patterns of the respondents .It was f
ound out that people who were generally in between 18-30 had a higher tendency t
o invest quite frequently in a year. The following table and the figure below sh
ow us the results. Age No of Respondents 18-30 30-50 >50 49 36.84% 2.105263158 7
0 52.63% 1.537313433 14 10.52% 1.461538462 133 100%
Table 10: Average frequency of investments among different age groups
% Average Frequency of investments per year
Page 54
2.5 2
2.10 1.53
1.5 1 0.5 0
1.46
Average Frequency of investments per year
18-30(young) 30-50(middle) >50(old)
AGE
Figure 24: Average frequency of investments among different age groups
In order to find the relationship between the age of the respondents and their i
nvestment patterns, a chi-square test for independence of attributes was used an
d results of the test is shown in the following table : Factor Calculated 2 valu
e AGE 2.801856 Tabulated 2 value 7.814728 DF Significance 3 Significant at 5% le
vel of significance
Table 11: Age and Frequency of investment (Chi-Square table)
It is noted from the above table that the calculated Chi-square value is less th
an the table value and the result is significant at 5% level Hence the null hypo
thesis “the age of the respondents and frequency of investment” holds good From the
above analysis it is concluded that there is a c lose relationship between the a
ge of the respondents and their investment patterns We have also used factor ana
lysis in SPSS (Statistical Pac kage in Social Sc iences) extract most prominent
factors that considered by a consumer before making an investment decision. We h
ad initially considered 28 factors which can influence a consumer’s investment dec
ision and we have asked the customers to rate them according to their importance
in the (Refer to annexure I). questionnaire
Page 55
So through the factor analysis the number of factors extracted was 9.KMO ( Kaise
r-Meyer-Olkin Measure of Sampling Adequacy) and Bartlett’s test of sphericity were
used and for extraction principle component method had been used. About 75.68%
of the information has been extracted through this test which shows that the res
ults are reliable. The output of the factor analysis has been included in the an
nexure. (Refer to annexure II). Also we c an see from below that the KMO coeffic
ient is 0.702. The coefficient always lies between 0 and 1 and the requirement i
s that it should not be less than 0.50. So here we can say this is a good test.
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett’s test of Sphericity : A
pprox Chi-Square DF 378 Sig 000 1363.096 .702
.
Table 12: KMO and Bartlett’s test of sphericity
So following are the nine extracted prominent factors that influence the consume
r while making an investment decision: 1. Rate of return 2 .Death benefits and l
ock in period 3. Present market scenario and tax benefits 4. Past performance of
the company 5. Flexible investment options and the risk involved 6. Amount paya
ble and the after investment service 7. Opinion of media, friends and acquaintan
ces 8. Level of knowledge about investment 9 .Commercials associated with invest
ments
Table 13: The prominent factors influencing the consumer’s investment decision
Page 56
MERITS AND DE-MERITS OF IDBI FORTIS LIFE INSURANCE COMPANY We have already discu
ssed the advantages of Wealthsurance products compared to the products of the ot
her companies. There the advantages were specific to individual products. So her
e after the complete analysis of primary and secondary data we have the followin
g merits and demerits of IDBI Fortis Life Insurance Company in general. Since ID
BI Fortis is a new company not many demerits can be pointed out right now at thi
s stage but we have tried our best here to point out some major ones. MERITS 1 .
When compared to the other selected insurance companies IDBI Fortis gives a min
fixed Interest rate for monthly interest account and a min fixed NAV (Net Asset
Value) for funds under Unit Linked Insurance Plans (ULIPs) at the time of matur
ity. So here in terms of market slowdown and recession the fund value will not c
ome down below a specified limit which is not the case with the other companies.
The Fund allocation charges and fund management charges are very low when compa
red to most of the other companies in the market. The growth of the company has
been tremendous in terms of the premiums collected and the variety of funds intr
oduced. All this has been done in a very short span of time which indicates that
there is a great future for IDBI Fortis. IDBI Fortis offers funds almost to eve
ryone right from a 3 month child to a 70 year old elderly person. The variety of
funds offered is very vast. The tie-up of the well known IDBI bank with Fortis
International and Federal bank both of which are well established and good rated
gives the company a greater sc ope for good growth in the future. All the plans
offered by the company espec ially under ULIPs are really flexible as there are
no charges charged for switching and a customer can make use of the switc hing
facility any number of times he wants to free of charge. Also the premiums payab
le can be decided by the customers themselves ac cording to their feasibility an
d capacity.
2 . 3 . 4 . 5 . 6 .
DEMERITS 1 . 2 . IDBI Fortis has a limited presence right now so most of the peo
ple know nothing about the company. With already around more than 20 private com
panies in the market it is really a mammoth task for IDBI Fortis to establish it
self and move forward successfully as it is always difficult for any new company
to capture the market very early.
Page 57
3 . 4 . 5 . 6 .
7 .
Also with LIC still at the helm as the market leader it is really difficult for
the company to move anywhere closer to it because LIC is the only public sector
lif e insuranc e company and generally people would prefer a public company rath
er than a private company. The company has to improve its distribution network a
s its reach to a common man is very limited .Also the number of agents working f
or the company is very less right now when compared to the other companies. It i
s very difficult to convince the customers first because this is a new unknown c
ompany and secondly there are no part records which normally the customers consi
der seriously to show the company’s performance. Also the company has no funds lik
e SBI Smart ULIPs of SBI, Tata-AIG life invest assure of Tata-AIG and Birla Sun
life insuranc e platinum plans of Birla Sun life which offer the highest NAV obs
erved during the entire policy term at the time of maturity of the fund which ar
e really a great hit among the customers. The variety of funds under IDBI FORTIS
has to increase as competitors like ICICI Prudential have a larger and better v
ariety of the same.
Page 58
POSITIONIN G Positioning is the process by whic h marketers try to create an ima
ge or identity in the minds of their target market for its product, brand, or or
ganization. A product s position is the way the product is defined by consumers
on important attributes - the place the product occupies in consumers minds rel
ative to competing produc ts. Positioning is the difference the company creates
for its products relative to the products of the other companies Not all brand d
ifferences are meaningful or worthwhile. Not every difference makes a good diffe
rentiator. Each difference has the potential to create company costs as well as
customer benefits. Therefore, the company must carefully select the ways in whic
h it will distinguish itself from competitors. A difference is worth establishin
g insofar as it satisfies the following criteria: (source: http://www.determan.n
et/Michele/mposition.htm) IMPORTANT DISTINCTIVE SUPERIOR The difference delivers
a highly valued benefit to target buyers
Competitors do not offer the difference, or the company can offer it in a more .
distinctive way difference is superior to other ways that customers might obtai
n the The
same benefit. COMMUNICABLE The difference is communicable and visible to buyers
PRE-EMPTIVE Competitors cannot easily copy the difference AFFORDABLE Buyers can
afford to pay for the differenc e PROFITABLE The Company can introduc e the diff
erence profitably
POSITIONING STRATEGIES There are seven positioning strategies that can be pursue
d: Product Attributes : What are the specific product attributes? Benefit : What
are the benefits to the customers? s Usage Occasions: When / how can the produc
t be used? User : Identify a class of users. s Against a Competitor : Positioned
directly against a competitor. Away from a Competito r: Positioned away from co
mpetitor. Product Classes: Compared to different classes of products.
Page 59
POSITIONING STRATEGIES OF IDBI FORTIS At present IDBI Fortis has its presence in
29 cities ac ross India and it has 31 branches overall. Mumbai has got three br
anches. Following is the list of all the cities where the company is operating r
ight now: AHMEDABAD MANGALORE BENGALURU MUMBAI CALICUT NAGPUR CHANDIGARH NASHIK
NEW DELHI CHENNAI COIMBATORE NOIDA DEHRADUN PUNE GOA RAJKOT GURGAON SURAT HYDERA
BAD THIRUVUNATHAPURAM INDORE UDAIPUR JAIPUR VARNASI KOCHI VIJAYAWADA LUCKNOW VIS
AKHAPATNAM LUDHIANA
Table 14: List of the cities with IDBI Fortis presence
IDBI Fortis has positioned itself quite nicely by offering all the produc ts und
er one single umbrella “WE LTHSUR NCE” The Wealthsurance Foundation Plan enables the
customer to save and build wealth to meet his financial goals. However, unlike
other investment alternatives, it also enables him to achieve his wealth goals e
ven in the event of unexpected death, accidents, disablement or serious illness.
Here under WEALTHSURANCE the company offers all various varieties of plans righ
t from plans for a 3 month baby to plans for elderly people. Also in all its adv
ertisement campaigns the company has been using the term “WE LTHSUR NCE” extensively
. The company has positioned itself in such way the customers started feeling th
at Wealthsurance is the solution for all problems. Some major strategies used by
the company The name “Wealthsurance” is being marketed very effectively that too wi
th the tag line “investment chalta jaye chahe kuchh ho jaye” which means that the we
alth creation continues no matter whatever happens. This concept is being well
supported by a new commercial released by the company being aired on all major c
hannels.
Page 60
The company has already created sensation by introducing the term Wealthsurance
and now it wants to project Wealthsurance is the solution for any kind of proble
m in life insurance. The company has also been promoting itself well especially
since the past few months. It created ripples across India when it became the fi
rst insurance company ever to sponsor a major c ricket tournament singlehandedly
when it sponsored the Wealthsurance cup between India and Srilanka in Jan-Feb 2
009.It made a right decision to do so because India is a cricket crazy country a
nd there is nothing better than reaching to the people through cricket. Also the
logo and pictures IDBI Fortis has been using in its advertisement campaigns thr
ough commercials and printed media have been really good. For example let us tal
k about the most common picture used i.e. that of a peeled orange with its peel
by its side. The orange wouldn’t grow if the peel hadn’t protected it fruits from al
l sorts of dangers like birds worms etc. The same is with all fruits, nuts and g
rains or for the matter a human embryo. With this the company wants to say the b
est growth happens under a protective cover that just as nature has provided a p
rotective shield for every fruit which projects the actual fruit and helps it gr
ow IDBI Fortis acts as a protective shield for the investments the customers mak
e and helps the best growth to happen. So with new innovative advertising strate
gies the company has been able to position itself as a new company with innovati
ve products. All the punch lines used by the company easily attract the customer
s. Some of the advertising pictures used by the company are illustrated below wi
th their taglines:
Protection Guaranteed
Your dreams and aspirations need money to fulfill. Make a promise to build wealt
h.
Page 61
A wealth building plan protected by insurance.
u
Unlimited flexibility and choice
IDBI Fortis positions itself as one of the top insurance companies in India. It
aspires to be in the top four in the next five years and in the top 3 in the nex
t seven years from now. Although the company has other products like Bondsurance
, Homesurance and Retiresurance right now it is just focusing on Wealthsurance a
s it feels that the company needs to first capitalize on one particular product
initially and latter on can diversify . IDBI Fortis aims to position itself as a
n insurance company for all classes. As the premiums payable and the plans are f
lexible according to the customers choices every person right from a worker to a
high class businessman can purchase a policy. The minimum premium payable per m
onth is Rs.1000 which is very affordable by anyone.
Page 62
FINDING S There is a great future of the life insurance sector in India as 80% o
f the Indian population is still without life cover and people are just now c om
ing in response to the awareness campaigns being carried out by almost all the i
nsurance companies. We have found out that age plays a major role in deciding th
e investment patterns of people as generally the younger class of people tend to
take more risk and invest in various instruments more frequently in a year( 2.1
0 times a year) when compared with the older class of people(1.46 times a year).
Life insurance Corporation (LIC) of India is the company to be least affected d
uring this market slowdown as NAV of its equity growth funds came down just by 2
3% during this major recession. Life Insurance Corporation (LIC) of India is sti
ll the undisputed market leader as 63% of the respondents surveyed owned a polic
y in it and it has also got a tremendous rating of 4.2 out of 5 in the survey co
nducted. A good positive growth is being shown by IDBI FORTIS and even though it
is still over one year old and has a long way to go it has already started work
ing hard and is trying to make competition much tougher. All the products of IDB
I FORTIS under Wealthsurance are really very good and have an edge over most of
the products of other major life insurance companies as the plans offered by the
company are really very flexible.
Page 63
RECOMMENDATIONS IDBI FORTIS has to improve its distribution network as its reach
to a common man is very limited .Also the number of agents working for the comp
any is very less right now when compared to the other companies The company shou
ld constantly come out with innovative products as the competition is very tough
with around 22 companies fighting hard for the market share. Some new innovativ
e ideas have been suggested below. An insurance plan for the unborn babies. The
premium payment term could be for 6 months and it could start once the fetus is
3 months old inside the mother’s womb There could be various benefits under this p
lan for the customers like in case of a premature or a complicated birth the com
pany would bear the expenses till the baby is healthy again through the insuranc
e policy. Also there could be death benefits in case of the death of the baby in
side the womb or at the time of delivery. This plan could really be suc cessful
as in India there are lot of premature child deaths and if the company comes out
with a plan like this very tactfully with some implied conditions it would be t
he first Indian company to offer insurance to unborn babies. An insurance plan f
or mentally retarded and physically handicapped people. This might be hard to di
gest but if at all plans like these are possible and really come out then a good
amount of Indian population would really be interested. The company could also
come out with a plan for both the husband and wife where automatically the wife
gets insured along with her husband when her husband purchases the policy. This
could also be the other way round. This could be called the combo family plan. I
n simple words it means buy one policy and get another free. No other company ha
s done something like this till now. As the company is a new company it has to r
eally work hard to get itself promoted. The company could start sponsoring major
events and conduct talk shows and seminars to get noticed. It could also take t
he help of NGOs. There are many people in India who still do not know about the
concept of insurance.The company could take this as an opportunity by trying to
create awareness.
The company could start using star personalities for their endorsements especial
ly cric ket stars and film stars as India is a nation of crazy cricket and film
followers and there is nothing better than reaching to the hearts of people thro
ugh cricket. The company should come out with some really outstanding and out of
the world advertisements like the ones Vodafone has released recently which peo
ple find it hard to forget soon. The company should first promote the brand IDBI
FORTIS and create a positive impression in the minds of the people In today’s wor
ld it is really tough for the customer to choose from among a vast list of insur
anc e companies as almost all of them offer the same plans .So the company has t
o be a bit different from others in order to stand apart.
Page 65
MY EXPERIENCES AND LEARNINGS My SIP at IDBI FORTIS Life Insurance Company has be
en an extremely enriching one. My SIP was divided into two main parts. One was t
he project work and the other was the promotion of the company. Since the compan
y is a new company we the students doing our SIP were given the major job of pro
moting the company through sales. So apart from the project work I had to genera
te sales for the company. Initially we found it very difficult to sell policies
as the company was a new company and no one was willing to buy moreover as we we
re basically located at Hyderabad for our SIP it was even more diffic ult for us
as we knew no-one out there. We faced a lot of hurdles but at the end we took i
t as a challenge and moved forward. The first twenty days were really terrifying
as I could not sell even a single policy and it was really very de-motivating b
ut latter on I moved ahead with the experience gained in the first few days tack
ling different customers in different ways. Finally when I sold my first policy
in the second week of March I gained confidence and after that I did not look ba
ck At the end of my SIP I generated a sales of over 1.5 lakhs for the company an
d ended up being one among the students with the highest sales generated. Though
I did not have the opportunity of sitting in the office and have much corporate
exposure I don’t regret it as I got full hands -on on-the field experience. I got
to interact with a lot of customers and in the process learnt of their differen
t mindsets and the way to deal with each of them differently. Once I was also th
rown out of the house by an angry house-wife when I tried to sell insurance earl
y in the morning to her. It was a harrowing experience but after that incident I
learnt that marketing is all about dealing with right people at the right time.
To summarize my experience in one line I would say that my experience At IDBI F
ORTIS was a really great learning experience with a lot of new things learnt and
as I also wish to specialize in marketing this experience is really a big bonus
for me. The Learnings I gained during my SIP are mentioned below: I gained a br
oader perspective about various investment opportunities and the risk involved i
n them. I came to know about the various technicalities about the Indian insuran
ce industry. Interactions with customers during surveys and sales helped me enha
nce my marketing skills . My on- hands on- the- field sales experience was an en
riching one teaching me the different facets a marketing personnel should posses
and the way to deal differently in different situations.
Page 66
Through this research I enriched my knowledge on various competitive marketing s
trategies adopted b different companies y to survive in a highly competitive mar
ket. I learnt in a more detailed way about the nature of work existing in the in
surance industry, the kind of deadlines they have to meet, the kind of pressure
and levels of stress which they work under and the kind of recognitions given to
them after they meet or exc eed their targets. Segmentation, Positioning, Diffr
encaition, Communication Mix, Direct selling were all the concepts learnt by be
in the classroom before but this summer internship really helped me practically
experience all these.
Page 67
CONCLUSIO N Here I conclude that the summer internship program, done in IDBI FOR
TIS Life Insurance company , for partial fulfillment of the MBA program in ICFAI
Business School (IBS)-Hyderabad. has been completed successfully. Following are
the achievements done during the summer internship from 23th February 2008 to 2
3th May 2008: a . b . c . d . Survey done with interest of IDBI FORTIS results a
re discussed above. has been conducted successfully and
Sales done by me during the time have done great business to the company. I was
one of the Sales toppers with a generated sales of more than 1.5 lakh. The exper
ienc e gained during the internship has sharpened my marketing and negotiable sk
ills and given me a great on the field experience.
Page 68
ANNEXURE (QUESTIONNAIRE) QUESTIONNAIRE
-
I
(This questionnaire is only of the sake of some research work being done on insu
rance companies. Confidentiality would be maintained.) Name Gender : ___________
______________________________________________________ : Male Female Contact no
: _______________________________
Age Group: 18-30 Qualification: Post Graduate 12 Occupation: Government Service
Graduate
th
31-40
41-50
>50
< 12
th
Businessman
Private Company
Self Employed Any Other (Please specify) ____________________ Your income range
(per annum): Below 150000 150000-250000 250000-350000
350000-450000 More than 450000 Your savings per year: Below 10000 10000-25000 25
000-50000
50000-100000 More than 100000 You would prefer savings in which form? Bank depos
its Fixed deposits Investments
Post Office schemes Any other (please specify) _________________________ What do
you consider while making an investment decision? Family’s opinion Friends advice
Broker’s advice
Your own decision Any other (please specify) _________________________
Page 69
Your opinion about investment: Tax Saving Good returns Better future after retir
ement
Wealth creation Any other (please specify) _________________________ Preferably
you would like to invest in: Mutual funds Stocks and shares Insurance products
Govt. Bonds & securities Any other (please specify) _____________________ How fr
equently do you invest? Once a year 2-3 times a year More than 3 times a year No
t investing (no idea) Not interested Do you agree that Insurance products are su
sceptible to very low risk when compared to the other options for investment? Ye
s No Don’t know What do you understand by the term “Wealthsurance”? A tax savings plan
A savings plan with good returns All the above
A financial security and risk coverage for your family I have no idea Name three
insurance companies that come to your mind: 1. ________________________________
___ 2. ___________________________________ 3. __________________________________
_ Do you own an insurance policy? Yes No If yes in which company? ______________
________
According to you what is the amount of risk involved in (ULIPs) Unit Linked Inve
stment Plans? High risk risk They ar e Safe No Idea Moderate risk Low
Page 70
Rate the following insurance companies (on a scale of 1-5): Company Rating IDBI
FORTIS ICICI Prudential Life Insurance Corporation of India Bajaj Allianz Max Ne
wYork Life Insurance Tata AIG Life According to you which is the best insurance
company and why? _______________________________________________________________
______________ _________________________________________________________________
____________ ___________________________________________________________________
__________ With the different variety of schemes and unbelievable plans offered
by IDBI FORTIS Do you think IDBI FORTIS is one of the best? Yes No Why?_________
______________________________________
Please rate between 1-5 for all the following factors depending on thier effecti
veness in influencing you to make an investment decision. 1- If the factor has n
o eff ect on your preference for the investment option 2- If the factor has only
a slight affect on your preference for investment option 3- If the factor affec
ts your preference for an investment option 4- If the factor will strongly affec
t your preference for the investment option 5- If the factor will be decisive in
your preference for the investment option Particulars Rate of return( The amoun
t which you get in return) Extra returns for extra investments Returns constant
in all conditions (No opportunity for multiple returns) Can give huge returns bu
t high risk ( no guarantee of even min returns) Rating
Page 71
Tax benefits Lock in period (Money cannot be withdrawn before a specific period)
Death benefits( Benefits upon your inadvertent death) Compulsory investment (Ma
ndatory for you to save a specific amount every year making you get greater amou
nt at maturity date, e.g. Regular premium in insurance ) Transmission ( The inve
stment option gets transferred to your nominee in case of any eventuality for ex
ample death) Amount payable can be adjusted later Amount payable ( Amount that y
ou have to pay for investing) Amount of charges( Amount deducted for maintenance
of your investment etc) Level of knowledge about an investment option in partic
ular General level of knowledge about investment options Level of knowledge to b
e developed once you start investing After investment service( Level of advice y
ou get when needed) Renewal procedure( in case of any discontinuity in payment)
Time to be spent in future Regulatory authority Past histor y& performance of th
at investment option Market scenario Opinion of friends & acquaintances Opinion
of Media Commercials associated with an investment option Your past experience i
n investments. Political factors( Government policies) Investment option caters
to my group (Retired employees, etc) Other factors( Known person working in that
sector etc)
--------------THANK YOU SO MUCH FOR YOUR VALUABLE TIME----------- -------
Page 72
ANNEXURE - II (FACTOR ANALYSIS OUTPUT [SPSS])
Factor Analysis
KMO and Bartlett s Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .702 Ba
rtlett s Test of Sphericity Approx. Chi -Square 1363.096 df 378 Sig. .000
Communalities Initial Extraction ROR 1.000 .768 ER 1.000 .530 RC 1.000 .735 HRHR
1.000 .554 TB 1.000 .715 LIP 1.000 .661 DB 1.000 .781 CI 1.000 .673 T 1.000 .66
5 APA 1.000 .750 AP 1.000 .789 AC 1.000 .744 LK 1.000 .707 GK 1.000 .701 LKS 1.0
00 .620 AIS 1.000 .727 RP 1.000 .689 TS 1.000 .755 RA 1.000 .689 PP 1.000 .623 M
S 1.000 .612 OPNF 1.000 .561 OPNM 1.000 .707 COM 1.000 .704 PE 1.000 .738 PF 1.0
00 .747 IO 1.000 .669 OF 1.000 .616 Extraction Method: Principal Component Analy
sis.
Page 73
Total Variance Explained Extraction Sums of Squared Initial Eigenvalues Loadings
% of Cumulative % of Cumulative Component Total Variance % Total Variance % Tot
al 1 4.467 15.955 15.955 4.467 15.955 15.955 2.925 10.447 10.447 2 3.481 12.433
28.389 3.481 12.433 28.389 2.908 10.385 20.831 3 2.612 9.328 37.716 2.612 9.328
37.716 2.499 8.926 29.757 4 1.882 6.722 44.438 1.882 6.722 44.438 2.412 8.614 38
.371 5 1.799 6.424 50.863 1.799 6.424 50.863 2.167 7.741 46.112 6 1.547 5.525 56
.387 1.547 5.525 56.387 2.076 7.413 53.526 7 1.290 4.607 60.994 1.290 4.607 60.9
94 1.462 5.223 58.749 8 1.137 4.059 65.053 1.137 4.059 65.053 1.407 5.023 63.772
9 1.016 3.629 68.683 1.016 3.629 68.683 1.375 4.911 75.683 10 .868 3.100 71.783
11 .835 2.982 74.765 12 .713 2.545 77.310 13 .701 2.503 79.813 14 .681 2.433 82
.246 15 .602 2.150 84.396 16 .543 1.939 86.334 17 .515 1.838 88.173 18 .476 1.69
9 89.872 19 .421 1.504 91.376 20 .395 1.410 92.786 21 .347 1.239 94.025 22 .310
1.106 95.131 23 .284 1.014 96.145 24 .266 .950 97.095 25 .246 .878 97.973 26 .21
1 .754 98.727 27 .191 .682 99.409 28 .165 .591 100.000 Extraction Method: Princi
pal Component Analysis. Rotation Sums of Squared Loadings % of Cumulative Varian
ce %
Page 74
Scree Plot
5
4
3
2
1
0
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
28
Component Number
Page 75
Component Matrix(a) Component 1 2 3 4 5 6 7 8 9 ROR .058 -.043 .127 -.162 .123 -
.100 .729 -.264 .307 ER .052 .365 .002 -.014 -.182 -.261 .416 .094 -.332 RC -.32
4 -.577 .077 .267 -.079 .217 .086 -.374 -.137 HRHR .261 -.303 .193 .297 .291 .42
3 -.046 .041 .037 TB .455 -.674 .088 .158 .105 .076 -.066 -.005 -.026 LIP .618 -
.086 .077 -.085 -.003 -.496 -.066 .083 .019 DB .622 -.480 .161 .051 -.138 -.316
-.053 -.094 -.071 CI .682 .044 -.404 .180 .048 -.004 .057 -.048 -.046 T -.573 -.
084 -.176 .234 -.382 -.046 .122 -.178 .221 APA -.726 -.249 .010 .098 .143 .281 .
170 .153 -.013 AP -.429 .166 .567 -.314 .068 -.005 -.086 .081 -.371 AC .297 .388
.432 -.027 .543 -.125 -.085 .021 .000 LK .439 -.243 -.072 -.087 -.588 .233 .050
-.076 .183 GK .675 -.187 -.330 -.066 .121 .242 .080 .122 -.040 LKS .349 -.087 -
.453 -.465 -.120 -.013 .092 -.197 -.083 AIS .082 .216 .618 -.146 -.413 -.032 -.0
33 .038 .309 RP .272 .435 -.262 -.169 -.179 .437 -.323 .021 .025 TS .337 .489 .3
38 .462 -.049 -.150 -.037 -.096 .197 RA -.162 .092 -.647 -.012 .467 -.060 .070 -
.089 -.031 PP -.186 -.277 .117 -.540 .366 -.010 .192 -.126 .139 MS .273 -.190 .4
31 -.323 .127 .274 .137 .216 .235 OPNF .131 .447 .174 .328 .022 .114 .161 -.359
-.194 OPNM -.200 .194 -.288 .369 .276 -.079 -.018 .293 .491 COM .353 .192 -.166
-.029 -.155 .103 .414 .544 -.114 PE -.384 -.403 -.180 .251 -.135 -.494 .022 .263
-.044 PF -.354 .677 -.200 -.152 -.242 .184 .072 .052 .009 IO .400 .562 .035 .28
4 .161 .098 .179 -.201 -.055 OF .067 -.268 .305 .407 -.097 .265 .287 .268 -.217
Extraction Method: Principal Component Analysi s. a 9 components extracted.
Page 76
Rotated Component Matrix(a) Component 1 2 3 4 5 6 7 8 9 ROR .047 .036 .132 -.056
-.008 .053 .119 .852 .025 ER -.116 -.001 .263 -.061 -.220 -.020 .600 .082 -.165
RC -.122 .001 -.080 -.523 .462 -.105 -.348 .124 -.281 HRHR .118 .088 .074 .207
.658 -.019 -.212 -.014 .073 TB .235 .561 -.166 .037 .527 -.026 -.179 .016 -.077
LIP .143 .710 .042 .244 -.193 .109 .157 -.004 .039 DB .213 .812 -.013 -.005 .143
.153 -.016 .011 -.177 CI .583 .347 .288 .118 .035 -.268 .165 -.089 .091 T -.113
-.273 -.063 -.723 -.096 .061 -.107 .071 .147 APA -.388 -.483 -.344 -.278 .345 -
.166 -.063 .126 .070 AP -.650 -.265 -.104 .245 -.055 .216 .037 -.043 -.415 AC -.
283 .144 .378 .692 -.032 .033 -.046 .081 .103 LK .651 .158 -.072 -.218 .097 .413
.032 -.002 -.155 GK .649 .255 -.039 .293 .242 -.212 .150 -.003 -.013 LKS .563 .
127 -.164 .048 -.310 -.211 .069 .144 -.304 AIS -.096 -.008 .111 .085 -.126 .823
.005 .071 -.012 RP .527 -.358 .140 .275 -.179 .087 -.036 -.381 -.042 TS -.062 .1
67 .707 .108 -.036 .331 .030 -.100 .300 RA .089 -.161 -.037 .018 -.198 -.750 -.0
43 .094 .202 PP -.137 -.045 -.393 .236 -.056 -.098 -.214 .555 -.160 MS .105 .037
-.225 .453 .305 .392 -.003 .312 -.029 OPNF -.047 -.123 .721 .005 .052 -.008 .03
5 .015 -.140 OPNM -.060 -.165 .021 -.039 -.024 -.185 -.015 -.022 .799 COM .311 -
.042 -.017 .164 .115 .042 .743 -.005 .111 PE -.351 .284 -.378 -.523 -.018 -.167
.162 -.107 .227 PF .022 -.692 .159 -.053 -.412 .063 .232 -.108 .031 IO .160 -.04
8 .741 .247 -.002 -.068 .144 .034 .072 OF -.103 .053 .065 -.131 .685 .149 .294 -
.031 -.050 Extraction Method: Principal Component Analysis. Rotation Method: Var
i max with Kaiser Normali zation. a Rotation converged i n 13 iterations.
Page 77
Component Transformation Matrix Component 1 2 3 4 5 6 7 8 9 1 .607 .567 .293 .41
8 .104 .110 .152 -.034 -.045 2 -.055 -.456 .592 .296 -.486 .082 .252 -.150 .148
3 -.535 .120 .175 .272 .281 .666 -.099 .145 -.202 4 -.146 .142 .527 -.417 .474 -
.116 .002 -.297 .425 5 -.291 .031 .044 .592 .183 -.593 -.242 .257 .229 6 .406 -.
647 .011 .159 .568 .077 -.172 -.074 -.164 7 .038 -.099 .146 -.200 .184 -.076 .56
9 .750 -.034 8 -.112 -.046 -.471 .270 .204 .128 .603 -.313 .413 9 .240 -.058 -.1
02 -.030 -.133 .380 -.357 .367 .709 Extraction Method: Principal Component Analy
si s. Rotation Method: Vari max with Kaiser Normali zation.
Page 78
ANNEXURE - III (SCHEDULE OF THE PROJECT)
Page 79
REFERENCES www.idbifortis.com www.hdfcstandardlife.com www.licindia.com www.baja
jallianz.com www.iciciprulife.com www.tata-aig-life.com www.irdaindia.org http:/
/www.scribd.com/doc/11005006/Insurance-Industry-Growth-Chart-Under-Drive-ofDeman
d-and-Value-Recommended20090121 http://www.scribd.com/doc/4996143/OVERVIEW-OF-IN
SURANCE-SECTOR-INDIA http://www.scribd.com/doc/7044410/ULIPs http://www.indiaprw
ire.com/pdf/pressrelease/200805079347.pdf http://www.scribd.com/doc/136703/India
n-Insurance-Changing-Trends-and-a-FreshPerspectiv e http://www.scribd.com/doc/72
16240/Understand-ULIP-Insurance The knowledge times
http://www.financialexpress.com/search/news/ulips+flexible+to+the+co re/
http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan002873.pdf htt
p://wealth.moneycontrol.com/yourstartupkit/ulip/why-invest-in-ulips-/9051/0 http
://economictimes.indiatimes.com/Personal-Finance/Insurance/Life-insurance-indust
rytargeting-20-pc-growth-in-FY-09/rssarticleshow/4095144.cms http://www.marketsm
onitor.com/Report/IM588_related.htm http://www.marketsmonitor.com/Report/IM126.h
tm http://www.marketsmonitor.com/Report/IM126.htm
Page 80
Principles of Marketing-Philip Kotler Marketing Research-Naresh Malhotra http://
www.determan.net/Michele/mposition.htm http://www.quickmba.com/marketing/ries-tr
out/positioning http://tutor2u.net/business/marketing/brands_ positioning.asp ww
w.ducttapemarketing.com/strategies_for_positioning.htm http://www.quickmba.com/m
arketing/research/ http://www.ats.ucla.edu/stat/Spss/output/factor1.htm http://w
ww.moneycontrol.com/planning_desk/fininvoption.php
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