SEMINAR ON

Market Potential of ULIP

In
HDFC Standard Life
Insurance

Mukesh Verma
3020070181
Contents:-
•About insurance industry
•Major players
•About the organization
•Vision & Values
•Organization structure
•Board of directors
•Product range
•Awards and achievements
Cont…
•About ULIP
•SWOT analysis of ULIP
•Objectives
•Research methodology
•Graphical representation
•Conclusion
•Market problems
•Suggestions
About Insurance
Industry
Market share of major
players
 ABOUT HDFC
•Stands for HOUSING DEVELOPMENT FINANCE
CORPORATION.
•Incorporated in 1977 as the first specialized
Mortgage Company
in India.
•It was started by Hasmukh Bhai Parekh .
•It has helped more than 23,00,000 houses since
its incorporation.
 About Standard
lifein 1875.
•The company was founded
•It has been looking after the financial needs of
the customers for
over 180 years.
•It currently has a customer base of around 7
million people.
•It is a leading pension provider in UK and is rated
A+ by Standards
And Poors for 6 consecutive years.
ØHDFC Standard Life Insurance Company Ltd was
incorporated on 14th August 2000
ØMr. Deepak Satwalekar is the MD and CEO of the venture.
ØHDFC Standard Life Insurance Company Limited was the
first company to be
granted license by the IRDA to operate in life insurance
sector.
ØHDFC ltd holds 72.43 % and standard life holds 26% of
equity in the joint venture,
while the rest is held by others.
Vision:
‘The most successful and admired life insurance company, which
means that we are the most trusted company, the easiest to deal
with, offer the best value for money, and set the standards in the
industry'.

'The most obvious choice for all‘.

Values:
•Integrity
•Innovation
•Customer centric
•People Care “One for all and all for one”
•Team work
•Joy and Simplicity
 Organization
structure
Chairman

Managing Director

Zonal Manager

Regional Manager

Retail Marketing Alternative Channel Operation Channel Human Resource

Territory Manager Territory Manager Team Manager HR Executive

Branch Manager Branch Manager Operation Manager

Asstt. B. M. Channel Executive

Business Dev. Mgr

Sales Dev. Mgr

 BOARD OF
DIRECTORS
Mr. Deepak S. Parekh, CEO of the
HDFC ltd.

Sir Alexander M. Crombier, Chief executive

of STANDARD GROUP

Mr. Keki M. Mistry ,Managing Director of

HDFC LIMITED

Ms. Marcia D. Campbell, Operations Director

in the Standard Life group
Product
range
 Awards and
accolades
•Received 2008 CIO Bold 100 and CIO Security Awards

•Silver Award for Radio commercial at Goafest 2008

•Deepak M Satwalekar Awarded QIMPRO Gold
Standard Award 2007
•Unit Linked Savings Plan Tops Mint Beast TV
Ads Survey
•“Sar Utha Ke Jiyo” Among India’s Glorious Advertising
Moments
 ABOUT ULIP
Ø ULIP - Unit Linked Insurance Policy
Long term plan that provides the dual benefit of
insurance and
investment
Its a unique and multiple benefits Plan
Provides multiple benefits like life protection, rider
protection,
savings, transparency, investment choices, liquidity
and planning
for taxes.
 SWOT analysis
of
STRENGTHS:
ULIP
•Investment plus
Insurance

•High Returns

•Transparent

•Flexibility
WEAKNESSES :
•Lack of Awareness

•High administrative charges

•High mortality charges

•High fixed annual charges
OPPORTUNITIES:

•Large Untapped Market

•Products for every age group and

income level

•Benefits of both an investment and

insurance
 THREATS :
•Presence of very strong competitors
•Aggressive marketing by competitors
•Not considered reliable
•People prefer to invest in Fixed
Deposits
My trip to organizatio
 Objectives
1. To conduct a comparative analysis of ULIP between
the main players in the current market scenario.
2. To make a Comparative Analysis between ULIP and
other financial instrument.
3. To conduct a research so as to know customers
awareness and preferences in choosing/not
choosing ULIP as an investment option.
4. To estimate and analyze the MARKET POTENTIAL OF
ULIP in Ranchi.
 RESEARCH METHODOLOGY
ü Research Design : Descriptive

ü Sample Size : 50

ü Sampling technique : Random

ü Sampling unit : Student, Housewife, Working

Professional,Business
people ,Government service
employee

ü Sampling area : Ranchi

ü Data collection method:

Ø Primary : Personal interview, questionnaire
Ø Secondary : Internet, product brochures, company
Unit linked versus other
financial instruments
 GRAPHICAL
REPRESENTATION
AWARENESS REGARDING ULIP
MARKET SHARE OF LIFE INSURANCE COMPANIES
REASONS FOR INVESTMENT IN ULIP
CONSUMER WILLINGNESS TO SPEND ON LIFE
INSURANCE PREMIUM
PREFERENCE OF THE CUSTOMERS REGARDING
POLICY TENURE
  
PREFERENCE OF CUSTOMERS WHEN INVESTING IN
ULIP
 FINDINGS AND
• CONCLUSION
54% of the sample population is aware about ULIP, while
the remaining are not. So a lack of public awareness was
encountered

• That people give maximum importance to the tax benefit

and then the income growth that they receive after

investing in the unit linked insurance plan

• ICICI in the private and LIC in public is a big threat to the

company

• A large proportion of the sample was convenient with the

time period of 4-7 years and then others were in favor of a

period ranging between 11-15 years which implies that it
 CONT..
• Maximum number of respondents were willing
to spend on insurance premium an amount
ranging from Rs.6,000-Rs.10,000

• Approx 8% of the population are considering

risk factor while others are not, hence the
company can easily convince customers to
invest in ULIP
WHY HDFC IS
BETTER

becaus
• HDFC Unit linked endowment plus
II gives additional units every
year
• HDFC Unit linked endowment plus
II has lower premium allocation
charges
• It has lowest FMC charge i.e.
 Market
•Existence ofproblems
many players in the market
which increases
competition.
•LIC is considered a safer option.
•Faces competition from banks and mutual
funds.
•High premium policies are difficult to
market
 CONT..
•People do not have risk appetite to invest

in shares.
•Customers don’t want to undertake
medical examinations
•Large amount of documentation.
•Customers do not like their money locked

up for many
 Suggestion
s company and its products – it
•Advertise about the
motivates
individuals to purchase insurance.
•Create a positive perception about insurance.
•Speak about the good features a plan offers like
high returns, life
cover, tax benefits, accident cover while
prospecting customers.
•Try to sell the product/plan which the consumer
requires and not the
 CONT...
•Attract the youth of India with higher returns on investment as
returns are the motivating factor which influence purchase of

insurance.
•Promote insurance in colleges and corporate houses.
•HDFC SLIC could have a brand ambassador or a mascot to
promote its services.
•Should have partial withdrawals from the first year onwards.
•Make products more straight forward – reduce complexities.