A Report ON Building Better Business of HDFC Standard Life Insuarance Company

A REPORT
ON
BUILDING BETTER
BUSINESS OF HDFC
STANDARD LIFE
INSUARANCE COMPANY
Guided By:-
Submitted by:- Neeraj Kumar

Roll No. MBA/09/234
WHAT IS INSURANCE
The business of insurance is related to the protection

of the economic values of assets. Every assets has a
value. The assets would have been created through
the efforts of the owner. The assets is valuable to the
owner, because he expects to get some benefits from
it. These benefits fulfill the needs of the owner, these
benefits may be an income or in some other form.
The owner face many adverse situation with the

passing of time. Insurance is necessary because
assets may be damaged by external causes.
Insurance is a mechanism that help to reduce the

effects of such adverse situations. It promises to the
owner to cover the financial loss.
Insurance work on the principle:-
Sharing
Probabilities
large numbers
Mutual help
Trust
What is IRDA?
IRDA was set up by the parliament in 1999. The section 4 of
IRDA Act' 1999, Insurance Regulatory and Development
authority specify the composition of authority. The Authority
is a ten-member team consisting of
a. Chairman; b. five whole-time members; c. four
part-time members,
all positions filled by the Govt. of India
Chairman :(IRDA)
Mr.J.Hari Narayan. Email id- chairman@irda.gov.in
ph. No.040-23241273
OBJECTIVE OF THE
PROJECT
 Study the HDFC values and culture, discover the power of
the brand and identify the target segment for the company.
 Developing communication skills that is necessary for
establishing good relation with client.
 Defining Sales Development Manger’s job description,
recruitment and selection.
 Study the Investors Investment Pattern in Life Insurance.

 And find out the target segment for company
HDFC STANDARD Life
Insurance- Company Profile
 HDFC Standard life insurance ltd is a joint venture
company of HDFC bank and Standard Life. HDFC
STANDARD Life Insurance is a joint venture
between HDFC Bank Ltd. and Standard Life. HDFC
STANDARD Life Insurance is one of the fastest
growing insurance companies in India and has
shown remarkable growth since its inception in
2000.
 It was per the data on February 28, 2009 that HDFC
Ltd. held 72.43%
 and Standard Life (Mauritius Holding) 2006, Ltd.
held 26.00% of equity in the JV.
 The remaining stake is held by others
HDFC ‘s Journey
The Life Insurance And HDFC
Life
 The Insurance market was opened up for private
companies in year 2000 and currently there are 29
Insurance companies in India. 9 Private Non life
Insurers, 6 Public Sector Companies ,14 private
Life Insurers. HDFC Life Insurance in its 7th year
of operations has shown commendable results.
 They have 650 branch offices in 31 cities in
India and they are growing aggressively to increase
their footprints and bring Life Insurance products to
their citizens.
 Gross premium income, for the year ending March
31, 2009 touched Rs. 5,564.69 crore
 As on March 31, 2009, it has over 27 lakh polices
in force
Key Imperatives Of Company
 To be a top five player in this industry in this, HDFC
Life Insurance need to increase Distribution width
and depth trough the country. Insurance is sold
primarily through three sales channels:
 Tied agency network:

Alternate channel:

Group sales:
Sales Manager’s Function
 Conduct various Advisors Recruitment Activities
and find out new platform.
 Provide leads to Life Advisors and support the Life
advisors for generating sales.
 Practices to support Sales Department with
Business Activities.
 Practices to Re- activate Non – contributing Life
Advisors.
 Competition Activity Tracking.
 Community activities targeting schools, housing
societies e.g.Drawimg competitions, Health Check
up etc.
 Presentations at Associations/Clubs e.g. kitty
parties , Investment Consultant Meets, Small
Merchants Association, Stock Broker Meets.
 Telling Calling.
Recruitment Of Life Advisors
Life Advisor’s Function
 Meeting Prospective Customers.
 Understanding their needs- Insurance and
Investment.
 Providing Suitable Solution and Products.
 Handling their queries and objections.
 Closing the sale.
 Providing Continuous service.
 Generating Referrals.
 Creates a Network of Customers Relationships
through own contacts and referrals.
 Achieves above through
 Benefits Of Being A Life Advisor
 Potential to earn unlimited income.
 Flexible Timings.
 No capital investments.
Activating Non-Contributing Life
Advisors
 Activating non - contributing life Advisors

done by Sales Manager.
 Collecting data of non-contributing Life Advisors.
 Calling them.
 Fixing appointment and meeting them.
 Handling their grievances.
 Identify and analyze their need and problems.
 Solving them.
 Explaining the benefits of being a Life Advisors and
new incentives schemes and reward and recognition.
 Motivating them and help them to re-activate again.
 Assuring them continuous services.
Process Of Selling
ETHICS OF SELLING
 Don’t forcing the customer to buy the insurance product
which the customer does not need.
 Treating all client equally and fairly.
 Never making the false promise with the customer, with
regarding to return or benefits.
 Showing correct computations where there are high
returns
 Not offering rebate to customers.
 Not allowing access to the customers / Life Advisors to
any confidential company information without authorization
from superiors.
 The document should be filled by the customer.
 Not giving incomplete documents to the Operations
department for processing
 These Ethics of selling help to The HDFC
SLI to establishing the good relation
with clients
Target Population for Research
 The target population for the investment
pattern in Life Insurance survey is defined
as follows:
 Elements ---Male or Female head of the
household responsible for investment in life
insurance in HDFC Life Insurance.
 Sampling Units---Investors investing in
HDFC standard Life Insurance.
 Extent---Chandigarh, Mohali and
Panchkula.
 The sample size used for our survey is
300
 Time:- June2010.
Analysis Questionnaire
 Q1. Age Group:
Age (in
18-30 30-40 40-50 50-60 Above 60
Yrs)
No. Of
60 75 75 45 45
Respondents
Q2. Sex Ratio:
Sex Male Female
No. Of 184 116

Respondents
Female
39%
Male
61%
Q3. Occupation:
Occupation No. Of
Respondents
Business 80
Govt.Emp. 71
Pvt.Emp. 78
Retired 22
Student nill
Homemaker 49
Q4. Annual Income (in lacs
Rs.):
Annual >2.5 2.5-3.5 3.5-4.5 4.5-5.5 Above
Income(in
5.5
lacs Rs.)
No.of 90 75 60 45 30
Responde
nts
Q5. Investment Ratio:
Investment No. Of
Respondents
Prospect who has
given their
major Ban k FD
investment R e a l E sta te s
19% 12%
ratio E q u it ie s
12%
Bank FD 35
Equities
G ovt Bon d
33
11%
Insurance 52 In s u r a n c e
Mutual Funds 78 M u tu a l F u n d 1 8 %
Govt. Bonds 28%
31
Real Estates 52
Others 19
Q6. Reasons For Investment:
Reasons for Priority 2 Priority 3

Priority 1 Priority 4
Investment
Savings
76 54 90 80
High
Returns 90 80 76 54
Tax Benefits
80 90 54 76
Security
54 76 80 90
Reasons for Investments
Security
Savings
18%
25%
Tax Benefits
27%
High Returns
30%
Reason For Investment In HDFC SLIC

Profitable Returns
24% SM/Agent
30%
Allocation Charges
12%
Track Record
Flexiable Products 13%
10% Brand Name
11%
Q7. Reason For Choosing HDFC Life
Insurance
Reason For Investment In No. Of
HDFC Sli Respondents
SM/Agent 90
Track Record 39
Brand Name 34
Flexible Products 31
Allocation Charges 35
Profitable Returns 71
Q8. Which Product of HDFC
SLIC you have bought ?
Products
External life plan 36

E t e r n a l L if e P la n
Child plan 46 15%
U L IP
Term Plan 37 28%
C h ild P la n
Retirement Plan 41 19%
Endowment plan 12
R e t i r e m e n t P l Ta en r m P l a n
Ulip 68 17%
E n d o w m e n t P la n 16%
Flexi Plan 29 5%
Money Back Plan 31

Q9 What according to you enhancing the
Level of Satisfaction?
Reasons To Enhance No. Of
Level Of Satisfaction Respondents

Services From Life 85
Advisors
Clarity On Product 79
Ease In Depositing 59
premium
Information About Claim 41

Settlement
Information Regarding 33
Newly Launched Product
Total 297
What according to you enhancing
the Level of Satisfaction?
Now we will show the investment pattern of investor’s in life
insurance through different relationships.
Sex Ratio Vs Reasons For Investment:

Age Vs Reason Of Investment:
Reasons 18-30 30-40 40-50 50-60 Above 60
for
Investmen
t
Savings 11 16 16 18 15
High 25 29 19 7 10
Returns
Tax 16 20 30 10 4
Benefits
Security 8 10 10 10 16
Total 60 75 75 45 45
30
25
20 Savings
High Returns
15
Tax Be ne fit
10
Se curity
d
esp
n o.O
fR N
5
t
0
18-30 30-40 40-50 50-60 A bo ve 60
Age Group
Sex Vs Investment Vehicle:
Investment Male Female

Vehicle Respondents Respondents
Bank FD 16 19
Equities 25 8
Insurance 31 21
Mutual Funds 47 31
Govt. Bonds 14 17
Real Estates 39 13
Others 12 7
Total 184 116

Sex Vs Investment Vehicle:
 Male Investment Pattern:
Female Investment Pattern:

Age Vs Investment Vehicles:
Investme 18-30 30-40 40-50 50-60 Above 60

nt
Vehicle
Bank FD 2 3 10 10 10
Equities 7 10 10 3 3
Insurance 7 8 14 12 14
Mutual 20 19 18 7 7
Funds
Govt. 5 5 5 8 8
Bonds
Real 10 21 13 5 3
Estates
Others 9 5 5 0 0

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A REPORT

Submitted by:- Neeraj Kumar

The business of insurance is related to the protection

The owner face many adverse situation with the

Insurance is a mechanism that help to reduce the

 Study the Investors Investment Pattern in Life Insurance.

 Activating non - contributing life Advisors

No. Of 184 116

Reasons for Priority 2 Priority 3

Reason For Investment In HDFC SLIC

External life plan 36

Money Back Plan 31

Reasons To Enhance No. Of

Level Of Satisfaction Respondents

Information About Claim 41

Sex Ratio Vs Reasons For Investment:

Investment Male Female

Total 184 116

 Male Investment Pattern:

Female Investment Pattern:

Investme 18-30 30-40 40-50 50-60 Above 60

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