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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 •Received 2008 CIO Bold 100 and CIO Security Awards accolades •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 ULIP STRENGTHS: •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 : Student, Housewife, Working Professional,Business people ,Government service employee

ü Sampling unit

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.

•Existence

Market ofproblems many players in

the market

which increases competition. •LIC is considered a safer option. •Faces competition from banks and mutual funds. •High

premium

market

policies

are

difficult

to

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 •Advertise about the s company and its products – it 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.