Service Sector Management Project

INVESTORS DECISION
MAKING PATTERN FOR LIFE
INSURANCE PRODUCT
A Small Report on the investor behavior in
making decision for life Insurance or investment

Presented by:(Group 5)
Utsav

Shah
Tanmay Tillu
Sanjay Yadav
Raj Shah
Raj Sanghavi
Rajan Gupta

38
45
57
36
21
14

Introduction
Insurancemeans a promise of
compensation for any potential future
losses. It facilitates financial protection
against by reimbursing losses during crisis.
Mainly insurance is used as an effective
tool ofrisk managementas quantified risks
of different volumes can be insured.

Life Insurance is an agreement or contract

between the insurance company and the
policy holder, in which the insurance
company assures the payment of a
particular amount of money if the insured
person dies or passes away.

Types of Insurance:
Life

Insurance
General Insurance
Fire Insurance
Health Insurance
Travel Insurance
Home Insurance.
Etc..(Motor,Theft,Marine)

Objectives:

TO KNOW THE PROCRUMENT BEHAVIOR OF

INVESTOR FOR INSURANCE PRODUCT

TO ANALYSIS THE DECISION MAKING

BEHAVIOUR OF INVESTOR FOR LIFE
INSURANCE

TO KNOW MOTIVE OF INVESTOR FOR

INVESTING IN INSURANCE

Methodology:
We used both Primary And Secondary Data
Primary
I.
Questionnaire(Sample size=50)
(between Kandivali & Andheri)
. Secondary
I.
Internet
II.
Vipul Prakashan (Service Sector
Management)

Market Segmentation:
Market Segmentation by:
Types of policies sold(Investment Policies,
Protection Policies, Whole Life Coverage)

Distribution channels(Direct
selling,Agents,Agencies)

Types of Areas(Kandivali,Malad,etc)

Etc(By age,income blanket)

Targeting:

The targeting decision is the focal point of

marketing strategy since targeting guides
the setting of objectives and developing a
positioning strategy
Undifferentiated (focus on common
customer needs, aiming at reaching an as
large number of customers as possible)
Differentiated (focus on serving multiple
and different needs, by designing different
marketing programmes for each segment

Positioning:
The battle for the customers mind:
The position that the product/brand has in the mind of
the customer
How the product/brand is perceived
The products/brands personality

Eg;(By attribute: Our current account offers you extra

interest
By price/quality: You enjoy maximum privileges with
the minimum subscription fee
By competitor: No other bank offers so much
By user: American Express: The businessmans
passport )

Marketing Mix:

Current Senario:
Growth in life insurance premiums
Over FY03-FY13, life insurance premiums in India
expanded at a CAGR of 16.5 per cent.

Contn
Market share of major companies in
terms of total life insurance premium
collected
LIC is the market leader, with 72.7 per cent
share in FY13, followed by ICICI Prudential,
with 4.7 per cent share.

INSURANCE PROCUREMENT

INSURED
UNINSURED

Plans Procured by Investors

4
3.5
3
2.5
2
1.5
1
0.5
0

No.s of Plan Procured by Investors

Conclusion

life insurance is an important form of insurance and essential for

every individual.
Life insurance penetration in India is very low as compare to
developed nation where almost all the lives are covered and
stage of saturation has been reached.
Customers are the real pillar of the success of life insurance
business and thus its important for insurers to keep their
policyholders satisfied and retained as long as possible and also
get new business out of it by offering need based innovative
products.
There are many factors which affect customers investment
decision in life insurance and from the study it has been
concluded that demographic factors of the people play a major
and pivotal role in deciding the purchase of life insurance
policies.