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SUMMER TRANING REPORT “Effective analysis of Consumer behaviour towards Investment Plans & Products of SBI Life Insurance, Una.

PROJECT STUDY ON “Effective analysis of Consumer behaviour towards Investment Plans &Products of SBI Life Insurance, Una”

Internship Report MASTERS OF BUSINESS ADMINISTRATION (2018-2019) University Roll : Submitted to: Submitted by: Rahul

ACKNOWLEDGEMENT

Behind every man’s fruitful endeavour like advice, guidance & inspiration from all possible sources lay the efforts of all those worthy people who lend their help directly or indirectly.

Contrary to popular belief, preparing a project is not a solo activity. Many people collaborate, assist and guide in the production of a project. Several people are involved in sharing ideas & producing this project. Some of deserves special mention.

It is extremely difficult to thank individually the numerous fellow persons who patronized this project report. Indeed I cannot completely describe their support to me but it is only a very small attempt to show my gratification to them. I feel pleasure for paying completely hearty gratitude to them. It is a great privilege & honour to have an opportunity to undertake training at SBI Life Insurance Company UNA.

I pay my sincere thanks to Mr (BRANCH Manager) for helping in my training & special thanks to Mr ROHIT SHARMA (Sales Manager)for giving me an opportunity to do training in SBI Life. I also want to thanks Mr Kamesh and Mr Vinay Sharma to teach me about the products in SBI life it will very helpful for me in future.

PREFACE Post-Graduation program in Management (PGPM) is a certificate/diploma course in professional studies, which includes both theoretical and practical knowledge as part of 2-year curriculum. Consumer behaviour is a vast and complex thing in today’s world. Understanding consumer behaviour & knowing consumer are not that simple. It is almost impossible to predict with one hundred present accuracy. The success or failure in this pursuit determines the difference between success & failure of marketing efforts or even the business itself. Consumers are moved by a complex set of deep of subtle emotions. Their behaviour springs from deeply held values & attitude their perception of the world & their place in it from common sense, impulse or whimsy. All this in the outcome of a large number of external & internal influences.

CONTENTS ABSTRACT

CHAPTER 1- INTRODUCTION CHAPTER 2-COMPANY PROFILE CHAPTER 3-RESEARCH METHODOLOGY CHAPTER 4-DATA ANALYSIS AND INTERPRETATION CHAPTER 5- FINDINGS CHAPTER 6-CONCLUSION CHAPTER 7-LIMITATION

CHAPTER -1 Introduction Consumer Behaviour “Think of the consumer first, if you would have the consumer think of you. “The consumption pattern and the behaviour of the consumer have been changing gradually. Since the last two decades we have seen many changes occurring in the attitude, perception, motivation, spending habits, purchase and post purchase behaviour of the consumer. The consumer of 80’s was austere and brought those things that were needed by him and the household. He was not very adventurous in spending habits. He had the restraint put on him by low income, the non-availability of products and traditional methods of buying. Most of these were for all the classes of consumers the upper or lower income groups. Even if they had the money and the willingness to buy, they could not purchase because of the limited choice of product, even after having booked the same a few year earlier. Under these conditions the entire definition of consumer behaviour was put to limitation.

The behaviours of today’s consumers are changed due to the economic liberalization and economic crisis. He does not have to buy sub quality and shoddy products. He can dictate his terms, and as somebody has rightly stated. “The consumer is not only the king but also the queen, the prince and the princess.” He cans from a plethora of brands, return the product if not approved.

Consumer behaviour is rapidly growing discipline of study. It means more than just how person buys products. It is a complex & multinational process and reflects the totality of consumer’s decision with respect to acquisition, consumption and disposal activities. We as consumers exhibit very significant differences in our buying behaviour and play an important role in local, national or international economic conditions. One of the very few aspects common to all of us is that we are all consumers and the reason for the business firm to come into being is the presence of consumer who have unfulfilled or partially fulfilled needs and wants. No matter whom we are – urban or rural, male or female, young or old, rich or poor, educated or uneducated, believer or non-believer, or whatever – we are all consumer. We consume or use on a regular basis food, shelter, clothing, education, entertainment, brooms, toothbrushes, vehicles, domestic help, healthcare another services, necessities, comforts, luxuries, and ideas. Organization realizes that there marketing effectiveness in satisfying consumer needs and wants at profit depends on a deeper understanding of consumer behaviour.

“Consumer is the king” The consumer must always be at the centre of the organizational process. Again, in the old economy, consumer experiences were often deemed secondary to take any decision. In the new economy, consumers are often asked to participate in decision-making.

CONCEPT OF CONSUMER BEHAVIOR CONSUMER: A “Consumer” is one who purchases a product or service for a particular organization. One thing that we are all consumer, infect everybody in this world is a consumer. Every day is our life we are buy and consuming an incredible variety of goods and services. However, we all have different tasks, like & dislike and adopt different patterns while making purchase decision. Each consumer is unique and this uniqueness is reflecting in competition behaviour and pattern and process of purchase. Consumers have been defined very strictly in terms of economic goods and services wherein a monitory exchange is involved. The term consumer issued for both personal consumers and organizational consumers and represents two different kinds of consuming entities.

Personal ConsumerThe personal consumer buys good and services for his use or for household consumption or for just one member of the family. In all

these instances, the goods are brought for final use, referred as “end-users” or “ultimate consumers”

Organizational consumerThe other category of consumer is the organizational consumers, which include profit and not-for-profit organizations. Government agencies and institutions (such as local or state government, schools and hospitals) buy products, equipment and services required for running these organizations. Anyone who regularly makes purchases from a store or a company is termed as “consumer” of that store or the company. Thus a customer is typically defined in terms of specific store or company.

CONSUMER BEHAVIOR DEFINITION Consumer behaviour can be defined as: “Consumer behaviour referred to as the study of when, why, how, where and what people do or do not buy products.” “Consumer behaviour is a decision making process and physical activity engaged in while evaluating, acquiring, using and disposing of goods and services.” We can also defined consumer behaviour as the “decision process” and physical activity engaged in by individuals.

Consumer decision process Decision: A decision is the selection of an alternative out of the several numbers of alternatives available. It is only when there is two or more alternative available that there is the need to make a choice. In a field of consumer, we are only concern with situation in which the consumer has to take the purchase decision where there is a choice available.

The decision-making process consists of a series of steps, which the consumer undergoes. First of all, the decision is made to solve a problem of any kind. This may be the problem of creating a cool atmosphere in your home. For this, information search is carried out, to find how the cool atmosphere can be provided, e.g. by an airconditioner or by a water-cooler. This leads to the evaluation of alternatives and a cost benefit analysis is made to decide which product and brand image will be suitable, and can take care of problem suitably and adequately. The constant use of the product leads to the satisfaction or dissatisfaction of the consumer, which leads to repeat purchases, or to the rejection of the product.

STAGES IN THE BUYING DECISION PROCESS

Consumer’s buying decision and consumption process of the product or services always take place in the context of some specific situation. Depending on the set of circumstances; consumer’s behaviour may take any number of decisions. Smart companies research the buying decision process involved in their producer category. They ask the consumer when they first became acquainted with the product category & brands, how they make their brand choice & how satisfied they are after the purchase. The consumer thought five stages as shown in the figure. Clearly the buying process starts long before the actual purchase & has consequences long afterward.

Following model can represent the typical buying process: 1 PROBLEM RECOGNITION 2 INFORMATION SEARCH 3 EVALUATIONS OFALTERNATIVES 4 PURCHASE BIHAVIOUR 5 POST PURCHASE BIHAVIOUR

1. Problem Recognition: Problem Recognition is the first stage of the long process of consumer decision-making and it is important for several reasons. Firstly it provides an initial clue as to why a buyer buys what he intends to. Secondly it gives definite direction to his or her subsequent purchase behaviour stages like information search and evaluation of alternatives. Finally it provides marketers with an immense scope for using their influence in how the buyers may or may not recognize their needs. Problem recognition is a perceived gap between existing and desired consumer position. Existing consumer position is how one feels presently about the product. Desired position is his expectation and anticipation about the product

2. Information Search: Information search starts the moment a need is recognized. It is a deliberate attempt to gain appropriate knowledge of stores from where to purchase the goods is gained. Before making actual decision the consumer is inclined to search for more information’s. These are the sources of consumer information divide into five groups.  Personal sourcesThese include family, friends, neighbours & peer-gap. •Commercial sourcesAdvertising, sales-persons, dealers, packaging& displays. •Public sourcesMass media, consumers, rating organizations. •Experiential sourcesThis refers to inspection of products or product trial like handling, examining and using the products •Independent sourcesIt includes newspapers, magazines, journals, consumer reports and government agencies. The company should identify the consumer information & evaluate their relative importance. It must also identify the other brands in consumer choice set, so that it can plan competitive appeals.

3. Evaluation of alternatives: There is no single evaluation process used by all consumers or by one consumer in all buying situation. Some consumer try to satisfy their need, some look for certain benefit from the product solution & the other sees each product as bundle of attributes with varying abilities for delivering the benefits to satisfy this need. Consumer will pay the most attention to attributes that deliver the sought-after benefits. The market for a product can often be segmented according to attributes that are important to different consumer groups.

BELIEFS AND ATTRIBUTESBelief is a descriptive thought that a person holds about something. People’s beliefs about the attributes and benefits of a product or brand influence their buying decisions. Attitudes indicate knowledge, feelings and intended action for the given stimulus. An attitude provides a series of cues to marketers. They predict future purchases, redesign marketing effort and make attitude more favourable.

4. Purchase process or Purchase behaviour of buyer: Purchase is very important as it generates revenue and dislikes of the consumer. Purchase is important to the marketer as the product was planned, produced, priced, promoted and distributed after a lot of effort. If purchase does not take place, the marketer is failed in his marketing effort. Purchase is important to the marketer for his success, for achieving his objectives and far formulating competitive

strategies against the competitors. Similarly, the consumer pays money and expects certain benefits and satisfaction from the product. It marks the end of his search, end of his efforts and chooses the brands of his choice for expected benefits.

For consumer perspective, purchase action marks the end of their effort for an optimum brand choice, not only do they give up money in return for a product, but the choice of brand once made, also mean that they must depend on it alone for the delivery of expected benefits and satisfaction, at least until next purchase occasion. Purchase decision is influenced by two major sets of forces. While the first set of forces relates to buying intention the second set comprises situational factors. Both factors exert a joint influence on the purchase process.

5. Post-Purchase Action It is important to know whether consumer likes his product or not. He wants the feedback about his product so that corrective action, if necessary can be taken and the marketing mix are modified accordingly. Post purchase behaviour is the reaction of the consumer; it gives an idea of his likes and dislikes, preferences, attitudes and satisfaction towards the product. After purchasing the product, the consumer will experience some level of satisfaction or dissatisfaction consumer will also engage in post purchase action. The consumer’s satisfaction or dissatisfaction with the product will

subsequent behaviour, if the consumer is satisfied, he will exhibit a higher probability of purchasing the product again.

Changing perception of Indian customers: Indian Insurance consumers are like Indian Voters, they are soft but when time is right and ripe, they demand and seek necessary changes. De-tariff of many Insurance Products are the reflection of changing aspirations and growing demand of Indian consumers. For historical years, Indian consumers were at receiving end. Insurance Product was underwritten and was practically forced onto consumers on a “Take-it-As-it-basis”. All that got changed with passage of IRDA act in1999. New insurance companies have come into existence leading to open competition and hence better products for customers. Indian customers have become very sensitive to Premium as well as the Products that are given to them. There are not ready to accept any product, no matter even if that is coming from the market leader, should that product is not serving the purpose. A case in point is ULIP Product in Life Insurance segment are new age Avatar. The new products are constantly being demanded by Indian consumers, which are putting huge pressures on Insurance companies and Brokers to respond. Now Indian customers are aware of insurance industry and insurance products provided by companies. They have become more sensitive. They would not accept any type of insurance product unless it fulfils their requirements and needs. In historic day’s customers looking at insurance products as a life cover which can provide security against any unacceptable events, but now customers look at insurance

products as an investment as well as life cover. So today’s customers wants good return from the insurance companies. The Indian customer’s forms the pivot of each company’s strategy.

The changing face of life insurance in India Digital, a small word with just seven characters, is the largest trend of our times and is shaping, disrupting and transforming many industries. Insurance is no exception.

Three key developments are redefining how insurance business will be done. The advent of tablets, the explosion of smartphones and the rapid reduction in the cost of computing, coupled with advanced technologies like machine learning, artificial intelligence and bots, is allowing insurers to completely re-imagine their business models. Combine this with the emergence of the connected world—the true

Internet of Things (IoT), with a wide variety of devices connected to capture rich real-time data. Connected cars, humans and even homes are soon going to be the norm. The third development is the ability to garner and use data. Data is really the new oil.

The combination of these three developments enables the delivery of a world class experience to customers across various digital channels. The business of insurance is being completely redefined. Insurers no more see themselves as just payers to cover unforeseen events but as partners to offer support and even prevent such events from occurring. The business of insurance is moving away from protection to prevention. In the process, many insurers are transitioning from being just insurance product providers to being providers of an ecosystem of services.

Let’s do some crystal ball gazing to see what life insurance has in store for you as a customer.

Every customer journey will be completely re-imagined. Take for example the mundane task of a change of address. Imagine a world where insurers will proactively reach out to you basis partnerships with Telco’s (GPS tracking will throw up alerts about potential relocation) to prompt you to provide the latest information. You will experience a significant enhancement in customer engagement. More often than not, the underlying trigger for life insurance purchase is a change in life stage e.g. new job, change in job, promotion, marriage, child birth, etc. Imagine an existing customer is in the hospital and his wife has just delivered a baby. While his joy

knows no bounds, he also feels an additional sense of responsibility towards his new born and his family.

At this point of time, he will get a message from his life insurance company congratulating him on this event. The message will also explain how buying a child education plan that matures 20 years hence would help them cover their child’s college education and that a friend of his recently bought a similar plan. And this could be availed of at the click of a button, with no additional documentation.

Every time the parent gets a promotion or a pay hike, the life insurer will make a targeted reach out with a customized message for cover enhancement or top-ups. The possibilities are limitless with the right data capture and use of analytics and technology. You will see insurers adopting a lot of scenario- or situation-based sales and these engagement options will be inserted into your regular journeys.

Serving retirees is clearly going to be one of the largest needs for India going forward. According to World Bank data and projections, it is estimated that India will have over 350 million people over the age of 50 years by 2030. Couple this with the increasing life expectancy for urban Indians, which have grown substantially over the past few decades and are already more than 70 years for men and over 73 for women. And that will be even higher for the more aware segment within urban India. This is just the average. Add to this the results of a research study by a French Asset Management company that reported India ranked last in their Global Retirement Index (GRI) in

2016 amongst 43 nations in the survey. This all adds up to create a perfect mix, talk about a market begging for disruption.

You are likely to experience a comprehensive ecosystem of services for the elderly serving a range of needs including experts catering to their travel requirements, mental health counsellors, health care providers, will services, estate planning agents etc. And all of these offered on a single holistic platform where financial contributions, vested benefits, periodic pay-outs are readily accessible. This could be a one-stop shop for all retirement needs readily accessible at the swipe of a screen.

It is clear that the world has moved to a stage where the risk of dying too early (the traditional basis of life insurance) is far outweighed by the risk of living too long. The question you need to answer is whether you are well covered to live long!

                          

LIC India Life Insurance New India Assurance National Insurance Bajaj Allianz Life Insurance United India Insurance Oriental Insurance ICICI Prudential Life Insurance HDFC Life Insurance Max Life Insurance SBI Life Insurance Birla Sun Life Insurance Apollo Munich Insurance IFFCO Tokio Insurance Bharti AXA Life Insurance HDFC Ergo Insurance Tata AIA Life Insurance Max Bupa Insurance PNB Metlife Insurance Kotak Mahindra Insurance Future Generali Insurance Reliance Life Insurance United India Insurance Star Health Insurance Cigna TTK Insurance Aviva India Insurance Indiafirst Insurance Exide life Insurance

• Further deregulation of the market. • Greater concern for the customers. • Newer products and services. • Competition and quality consciousness. • Cost effective operations.

• Restructuring of the public sector. • Consolidation of domestic insurance markets. • Technology driven shift in product design. • Actual operations and distribution. • Convergence of financial services.

Various types of life insurance policies: •Endowment policies: This type of policy covers risk for a specified period, and at the end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy. •Money back policies: This type of policy is for periodic payments of partial survival benefits during the term of the policy as long as the policy holder is alive

• Further deregulation of the market. • Greater concern for the customers. • Newer products and services. • Competition and quality consciousness. • Cost effective operations. • Restructuring of the public sector. • Consolidation of domestic insurance markets.

• Technology driven shift in product design. • Actual operations and distribution. • Convergence of financial services. Various types of life insurance policies: • Endowment policies: This type of policy covers risk for a specified period, and at the end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy. • Money back policies: This type of policy is for periodic payments of partial survival benefits during the term of the policy as long as the policy holder is alive.43 • Group insurance: This type of insurance offers life insurance protection under group policies to various groups such as employers employees, professionals, co-operatives etc. it also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost.

• Term life insurance policies: This type of insurance covers risk only during the selected term period. If the policyholder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger premium required for endowment and whole life policies. No surrender, loan or paid up values are in such policies. • Whole life insurance policies:

This type of policy runs as long as the policyholder is alive and is covered for the entire life of the policy holder. In this policy the insured amount and the bonus is payable only to nominee on the death of policyholder. • Joint life insurance policies: These policies are similar to endowment policies in maturity benefits and risk cover, but joint life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy

• Pension plan: a pension plan or annuity is an investment over ascertain number of years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period. • Unit linked insurance plan: ULIP is a kind of insurance plan, which provides life cover as well as return on premium paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV).

Different distribution channels in India: A multichannel strategy is better suited for the Indian market. Indiani nsurance market is a combination of multiple markets. Each of the markets requires a different approach. Apart from geographical spread the socio-cultural and economic segmentation of the market

is very wide, exhibiting different traits and needs. Different multidistribution channels in India are as follows: • Agents : Agents are the primary channels for distribution of insurance.The public and private sector insurance companies have there branches in almost all parts of the country and have attracted local people to become their agents. Today's insurance agent has to know which product will appeal to the customer, and also know his Competitor’s products to be an effective salesman who can sell his company, the product, and himself to the customer. To the averagecustomer, every new company is the same. Perceptions abou t the public sector companies are also cemented in his mind. So anins urance agent can play an important role to create a good image of company.

• Banks: Banks in India are all pervasive, especially the public sector banks. Many insurance companies are selling their products through banks. Companies, which are bank, owned, they are selling t heir products through their parent bank. The public sector banks, withtheir vast branch networks, are helpful to insurance companies. Thischannel of selling insurance is known as Bank assurance.

Brokers: Now a day’s different financial institution are sellinginsurance. These financial institutions are known as brokers. They are taking some underwriting charges from the insurance companies to sell their insurance products.

Corporate agents: Corporate agency is a cross selling type of channel. Insurance companies’ tie-up with business houses in other industries to sell insurance either to their employees or their Customer. Insurance industry, during the past 2 years has witnessed number of such strategic tie-ups and alliances. Corporate agents have become a major force to reckon with in distributing insurance p roducts. Such as- Bajaj Allianz tied up with Marti Udyog and Fordfor auto insurance and Tata AIG life has tied up with Tata tea, Khaitan’s Williamson major and bridge foundation for selling rural policies. • Internet: In this technological world Internet is also a channel of selling insurance. This can be as direct marketing

EFFECTIVE MARKETING STRATEGIES FOR INSURANCE PRODUCTS Now the Indian consumer is knowledgeable and sensitive. Consumers are increasingly more aware and are actively managing their financial affairs. People are increasingly looking not just at products, but also at integratedfinancial solutions that can offer stability of returns along with total protection. In view of this, the insurance managers need to understand more about the details that go into the introduction of insurance products to make it attractive in this competitive market. So now day an insurance manager requires leadership, commitment, creativity, and flexibility. "Every family in every village in the country should feel safe and secure". This vision alone will help to bring the new ideas to the insurance manager.Financial; marketing and human resource polices of the cor porationsinfluence the unit mangers to make decisions. Performance of insurancecompany depends on the effectiveness of such policies. Ins urancecorporations formulate and revise these policies from time to time to ensure that the performance of the managers is best for the organization. In the competitive market, insurance companies are being forced to adopt a strictly professional approach in marketing. The insurance companies face the challenge of changing the uninspiring public image of the industry.

Some of the important marketing elements are•Marketing mix.

•The importance of relationship. •Positioning. •Value addition. •Segmentation. •Branding. •Insuring service quality. •Effective pricing. •Customer satisfaction research

An insurance product can be classified into three phases: 1. Core product: In insurance industry the core product is the policy that provides protection to the customers. 2. Expected product: Because of competition customers start to expect more from an insurance product. Then insurance company’s providesome tangible attributes in their product to differentiate fro mcompetitors, such as•Brand •Some additional features in existing product •By providing instruction manual with the policy

3. Augmented product: An insurance company can provide different types of services to differentiate their products•Post-sales services. •Branches in different places for customers. •Customer complaint management. •Payment option convenient to customers

The entry of private players and their foreign partners has given domestic players a tough time, because the opening up of the sector has not brought in only foreign players, but also professional techniques and technologies. The present scene in India is such that everyone is trying to put in the best-efforts. There are marketing strategies more for survival than growth. But the most important gift of privatization is the introduction of customeroriented services. Utmost care is being taken to maximize customer s atisfaction.

Success of an insurance company depends on four important functions: • Identification of markets: Identification of markets means need to understand the trends in culture and businesses constantly, through conducting research and analysis. Insurance companies can take this job on their own or assign it to an external agency. Relying on an external agency can be risky due to the questionable loyalty of the agents.

• Assessment of risks and estimation of losses: Efficiency of actuaries and assessors of the insurance policies in fixing premiums and settling claims is foremost an important area for achieving overall efficiency in operations. The quality of assessing the risk and estimation of losses has the largest claim on the performance of an insurance company. Well-trained, experienced and expert hands are needed for the operations.

• Penetration into and exploitation of markets: Market penetration or exploitation of a company can be identified with the growth innu mber of policies in each type of insurance, growth rate in earnings or turnover, company’s market share, increase in number of branches and divisions etc. Efforts of the company as a whole and that of the divisions and branches are assessed to measure the effectiveness. • Control over investment and operating costs: Control over resources such as men, machines, and materials at each level of the organization provide measures of efficiency of a unit as well as theorganization. Investment control and expense control are dealtse parately and the effectiveness of management’s’ decisions atvarious levels is to be assessed separately.

To find best prospects: • Allocating marketing strategies against market potential. •Estimating potential for specific products within local markets. •Identifying high opportunity areas. •Measuring agency performance relative to market potential. •Optimizing your agency network against market potential

Attributes to develop marketing strategies: • Channel data: - Useful to know future buying preferences, learning about products and purchase channels. • Consumer attitudes. • Consumption data: - Useful to evaluate annual premiums, number of annuities owned, value of annuities, and with which company the current policy is held.

Effective Strategies for Insurance Agents: • Learn how to construct a mental image for success. • Learn how to find a proper perspective and how to turn off all the signals that cause people not to buy from you.

• Learn how to get and set more appointments. • Learn how to convert a new lead into sales. • Learn how to act when you meet a client for the first time. • Learn how the orders in which you explain the types of policies can double your income. • Take Easy steps to avoid delays in issuing policies

Chapter II Company profile

CONCEPT OF INSURANCE Insurance is a policy from a large financial institution that offers a person, company or other entity reimbursement or financial protection against possible future losses or damages. Insurance may be described as a social device to reduce or eliminate risks of loss to life and property. It is a provision, which a prudent man makes against inevitable contingencies, loss or misfortune. Under a plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. As in private life, in business also there are dangers and risks of different kinds.

The aim of all type of insurance is to make provision against such dangers. The risks, which can be insured against, include fire, the perils of sea (marine insurance), death (life insurance) and accidents. Any risk contingent upon these may be insured against at a premium a commensurate with the risk involved. Thus, collective bearing of risks is insurance. Insurance business is divided into four classes, such as Life Insurance, Fire, Marine and Miscellaneous Insurance.

“Insurance is a plan by which large numbers of people associate themselves and transfers to the shoulders of all, risks that attach to individuals.”

“Insurance is a provision which a prudent man makes against for the loss or inevitable contingencies, loss or misfortune.”

INSURANCE PROVIDE: •Protection to investor. •Accumulation of savings. •Old age pensions •Tax benefits

Functions of insurance: •Provide Protection: The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others.

•Collective bearing of risk: Insurance is an instrument to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid.2

•Assessment of risk: Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also.

•Provide certainty: Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain.

 Small capital to cover larger risk: Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty.

•Contributes towards the development of industries: Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery.

•Means of savings and investment: Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance.

• Source of earning foreign exchange: Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways.

• Risk free trade: Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover.

Life insurance: Life insurance may be defined as a contract in which the insurer, inconsideration of a certain premium, either in a lump sum or by other periodical payments, agrees to pay the assured, or to the person for whose benefit the policy is taken, the assured sum of money, on the happening of a specified event contingent on the human life. Life insurance is a contract under which the insurer (Insurance Company) inconsideration of a premium paid undertakes to pay a fixed sum of money on the death of the insured or on the expiry of a specified period of time whichever is earlier. In case of life insurance, the payment for life insurance policy is certain. The Event insured against is sure to happen only the time of its happening is not known. So life insurance is known as ‘Life Assurance’. The subject matter of insurance is life of human being. Life insurance provides risk coverage to the life of a person. On death of the person insurance offers protection against loss of income and compensate the titleholders of the policy.

ROLE OF LIFE INSURANCE: Life insurance as an investment: Insurance products yield more than any other investment instruments and it also provides added incentives or bonus offered by insurance companies.

Life insurance as risk cover: Insurance is all about risk cover and protection of life. Insurance provides unique sense of security that no other forms of invest can provide.

Life insurance as tax planning: Insurance serves as an excellent tax saving mechanism too.

IMPORTANCE OF LIFE INSURANCE: Protection against untimely death: Life insurance provides protection to the dependents of the life insured and the family of assured in case of his untimely death. The dependents or family members get a fixed sum of money in case of death of the assured.

Saving for old age: After retirement the earning capacity of a person reduces. Life insurance enables a person to enjoy peace of mind and a sense of security in his/her

Promotion of savings: Life insurance encourages people to save money compulsorily. When life policy is taken, the assured is to pay premiums regularly to keep the policy in force and he cannot get back the premiums, only surrender value can be returned to him. In case of surrender of policy, the policyholder gets the surrendered value only after the expiry of duration of the policy.

Initiates investments: Life Insurance Corporation encourages and mobilizes the public savings and canalizes the same in various investments for the economic development of the country. Life insurance is an important tool for the mobilization and investment of small savings.

Credit worthiness: Life insurance policy can be used as a security to raise loans. It improves the credit worthiness of business.

Social Security: Life insurance is important for the society as a whole also. Life insurance enables a person to provide for education and marriage of children and for construction of house. It helps a person to make financial base for future.

Tax Benefit: Under the Income Tax Act, premium paid is allowed as a deduction from the total income under section 80C.

GENERAL INSURANCE: Insurance of the non-life assets are called general insurance, this includes loss of asset against water, fire, earthquake etc. With the opening up of the Indian Market in Insurance sector for private players, in General Insurance the monopoly of the general Insurance public sector’s companies has been broken. With the entrance of the new private player market innovative technique has been introduced to capture the market. In general the private players have captured Insurance around 17% of the market. General Insurance is a sector, which alone has many type of insurance coverage in it like Fire Insurance, Marine Insurance, motor Insurance, Liability Insurance, Engineering Insurance etc.

INDIAN INSURANCE INDUSTRY HISTORY: The insurance sector in India has completed all the facets of competition – from being an open competitive market to being nationalized and then getting back to the form of a liberalized market once again. The history of the insurance sector in India reveals that it has witnessed complete dynamism for the past two centuries approximately. Life insurance came to India from England in 1818 when oriental life insurance company started in Calcutta by Europeans. After this many insurance companies had been started in India. But these companies were looking after only the needs of European community established in India. These companies were not insuring Indian people. First Indian life insurance company came as Bombay mutual life insurance assurance. Second company was Bharat insurance company came in 1896. After this the united India in madras, national Indian and national insurance in Calcutta and thecaoperative assurance in Lahore were established in 1906. To regulate Indian insurance business first insurance act came in 1912 as life insurance company act and provident fund act. These acts consist of premium rates tables and periodical valuations of companies. In the first two-decade of 20th century many life insurance companies were started. So the insurance act came in

1938 to governing life and non-life insurance companies and to provide strict state control.

In 1956 the life insurance business in India was nationalized. In 1956 life insurance corporation of India (LIC) was created to spreading life insurance much more widely particularly in rural areas. In that year LIC had 5 offices, 33 divisional offices and 212 branch offices. In 1957 the business of LIC of sum assured of 200crores, 1000crores in 1970, and 7000crores in1986.

Important milestones in the Indian life insurance business: 1912: The Indian Life Assurance Companies Act came into force for regulating the life insurance business.

1928: The Indian Insurance Companies Act was enacted for enabling the government to collect statistical information on both life and non-life insurance businesses.

1938: The earlier legislation consolidated the Insurance Act with the aim of safeguarding the interests of the insuring public

1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and they got nationalized. An Act of Parliament, viz. LIC Act, 1956, formed LIC. It started off with a capital of Rs. 5 crore and that too from the Government of India.

1907: The Indian Mercantile Insurance Ltd. was set up which was the first company of its type to transact all general insurance business.

1957: General Insurance Council, an arm of the Insurance Association of India, framed a code of conduct for guaranteeing fair conduct and sound business patterns.

1968: The Insurance Act improved for regulating investments and set minimal solvency levels and the Tariff Advisory Committee was set up.

1972: The General Insurance Business (Nationalization) Act, 1972nationalized the general insurance business in India. It was with effect from 1st January 1973. 107 insurers integrated and grouped into four companies’ viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC was incorporated as a company.

INSURANCE REGULATORY DEVELOPMENTAUTHORITY (IRDA): In 1999, the Insurance Regulatory and Development Authority (IRDA) were constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders’ interests.

ROLE OF IRDA: • Protecting the interests of policyholders • Establishing guidelines for the operations of insurers and brokers. • Specifying the code of conduct, qualifications, and training for insurance intermediaries and agents. • Promoting efficiency in the conduct of insurance business. • Regulating the investment of funds by insurance companies. • Specifying the percentage of business to be written by insurers in rural sectors.

•

Handling disputes between insurers and insurance intermediaries.

INSURANCE COMPANIES IN INDIA IRDA has tilled now provided registration to 12 private life insurance companies and 9 general insurance companies. If the existing public sector insurance companies are considered then there are presently 13 insurance companies in the life side and 13 companies functioning in general insurance business. General Insurance Corporation has been sanctioned as the "Indian reinsurer" for underwriting only reinsurance business.

ABOUT THE COMPANY SBI Life Insurance Company Ltd SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI Life Insurance has an authorized capital of Rs.2, 000 crore and a paid up capital of Rs.1, 000 crore. State Bank of India enjoys the largest banking franchise in India. Along with its 6Associate Banks, State Bank Group has the unrivalled strength of over 16,000 branches across the country, arguably the largest in the world. BNP Paribas is the 1st largest French company and ranks 5th in the banking industry worldwide, 1stbank in Euro Zone as per Global 2000 Forbes’ 2008.It is 6th most valuable international banking brand as per Brand Finance2008. BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zone’s leading Bank. BNP Paribas, part of the world’s top 10 groups of banks by market value and part of Europe top 3 banking companies, is one of the oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly through the Banc assurance and partnership model.

SBI Life Insurance CEO & MD. SBI Life Insurance has appointed

Sanjeev Nautiyal

as its new Managing Director and CEO. He replaces Arijit Basu, who takes over a key role in the State Bank of India Group. Nautiyal started his career with State Bank of India in 1985 as a probationary officer in the bank’s Lucknow Circle. Our company, with its unique brand and highly committed workforce, is determined to increase life insurance penetration and offer need-based solutions our citizens, enabling them to live life to the fullest.

Strength of SBI Life: State Bank Group has an unrivalled strength of over 23,000 branches across the country, making it the largest Banking group in India. With 198 foreign offices in 37 countries, SBI is truly an Indian multinational. For prospective business partners, by associating with one of the largest financial brands in the country, SBI Life gives you a lucrative business opportunity to profit from serving millions of Indians. In terms of career opportunities, SBI Life presents its most valuable asset, its employees, a work environment which is a blend of security and excellence.

Our Vision: To be the most trusted and preferred life insurance provider

Our Mission: "To emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency thereby becoming a model life insurance company in India in the post liberalization period."

Our Values Trustworthiness Ambition Innovation Dynamism Excellence

Key milestones 2017-2018 Assets under Management cross Rs 1, 00,000 crores (Financial Year 2017-18) Achieves AUM (Assets under Management) milestone of Rs 1, 00,000 crores – Rs 1, 01,226 crores

Pan-India presence with network of 801 branches as on March 31, 2017

SBI life products:

Protection Plan 1. SBI Life-Smart Shield: Is a plan that offers a life cover at low cost. It is a traditional pure risk policy. 2. SBI life-Swadhan: Is a traditional Term Plan which provides protection and a refund either part / total premium at the end of the duration of the policy to the policyholder.

3. SBI Life Saral Shield: Saral Shield provides cover for your family and ensures that a proper safety net is created.

4. SBI Life Smart Income Protect: A saving plan with added advantage of life cover and regular cash inflow at the time you need.

Saving Plan 1. SBI Life-Sanjeevan Supreme: Is a plan with a Life Insurance cover and a guaranteed money back scheme at various

intervals. Benefit of this plan is you pay the premium for a specific period of the term only and rest of the term you do not have to pay.

2. SBI Life-Money Back: Is a saving plan where you get a cover and also funds at various intervals during the policy.

3. SBI Life - Shubh Nivesh: Shubh Nivesh is an Endowment product with an option of Whole Life coverage. The basic purpose is to provide Savings, Income and Protection to you and your family.

4. SBI Life Flexi Smart Insurance: It gives you flexibility to adapt to your ever-changing needs, while assuring guaranteed benefits to take care of your savings.

Unit Linked Products Type of life insurance where the cash value of a policy varies according to the current net asset value of the underlying investment assets. It allows protection and flexibility in investment.

1. SBI Smart Performer: It offers the double benefits of 'Higher than the Highest' of the daily NAV Guarantee and the view of market upside.

2. Unit plus Super: It offers you guaranteed additions and choice of payment options, giving you far superior value.

3. Saral Maha Anand: Twin Benefit of Market linked returns & insurance cover.

4. SBI Life Smart Elite: It gives you flexibility to pay premium(s) for limited term or single premium, with the freedom to stay invested and protected for long term.

5. SBI Life Smart Scholar: Its provide you with a unique, flexible and all-encompassing solution through our SBI Life - Smart Scholar Plan.

Health Plans 1. SBI Life – Group Criti9:

This plan provides protection

against 9 critical illnesses where Sum Assured is paid in lump sum on diagnosis of any one of covered critical illnesses.

2. SBI Life – Hospital Cash: It is a comprehensive plan that covers not only hospitalization expenses but also other incidental costs

Child Plan 1. SBI Life Scholar II: I SBI Life - Scholar II has guaranteed benefits which are payable at the regular intervals during the term of the policy.

Pension Products A type of retirement plan, usually tax exempt, wherein an employer makes contributions toward a pool of funds set aside for an employee's future benefit

1. SBI Life-Lifelong Pension: This plan helps to satisfy your needs after retirement. Although retired you still have the finance to fulfil your desires. It is a regular pension product.

Group Products - Group Protection Plans 1. SBI Life - Sampoorn Suraksha 2. SBI Life - Credit Guard 3. SBI Life - Suraksha Plus Retirement Solutions 1. SBI Life - Cap Assure Gratuity Scheme 2. SBI Life - Cap Assure superannuation Scheme 3. SBI Life - Cap Assure Leave Encashment Scheme 5. SBI Life - Dhanrashi 6.SBI Life - Swarna Jeevan 7.SBI Life - Swarna Ganga

SBI LIFE - SMART SHIELD UIN: 111N067V04 Product Code: 45

1.

SBI Life - Smart Shield

Blissful moments. Protected. 

Plan options to provide relief from liabilities



Three rider options



Rewards for a healthy lifestyle



Rebates on large sum assured

A traditional non-participating pure term life insurance plan Have you planned for your family’s financial requirements in case of an eventuality? Now give them adequate protection to meet their financial needs. Apply for SBI Life – Smart Shield, a pure term plan, and get peace of mind, knowing that your

family is financially secured. This term plan offers – 

Security – providing financial protection for your family



Flexibility – choose from two plan options according to your needs



Affordability – through rider benefits at an affordable cost

SBI LIFE - SMART SCHOLAR UIN: 111L073V02 Product Code: 51 2. SBI Life - Smart Scholar

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

Give wings to your child's dream.



Market-linked returns



Periodic loyalty additions



Premium waiver benefit

A non-participating Unit Linked Insurance Plan

"The Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender/withdraw the monies invested in Linked Insurance Products completely or partially till the end of fifth year."

Children grow fast but their needs grow faster. Have you planned enough for their future? Avail twin benefits of market-linked returns on your invested money and the security of life cover for your children with SBI Life - Smart Scholar.

This plan offers – 

Security – for your child to achieve their dreams



Reliability – of premiums being waved in case of eventuality



Flexibility – to switch between funds to match the changing needs of your child



Liquidity – partial withdrawals from 6th policy year

SBI LIFE - RETIRE SMART UIN: 111L094V01 Product Code: 1H 3. SBI Life - Retire Smart

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

Smart present, smarter future. 

Safeguarding against market volatility through the 'Advantage Plan'



Minimum assured maturity amount



Assured benefits on extended policy terms for in-force policies

A non-participating unit linked pure pension plan "The Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to

surrender/withdraw the monies invested in Linked Insurance Products completely or partially till the end of fifth year"

This is a Pension Product. Benefits by way of surrender, complete withdrawal or maturity/vesting will be available in the form of annuities except to the extent of commutation of such benefits as allowed under the Income Tax Rules'. Are you ready to retire without worry? Now cherish your golden years with proactive and thorough planning. Enjoy an assured maturity benefit that secures your investment from market volatility, with SBI Life – Retire Smart. Secure your future by creating a retirement corpus with systematic investments during your earning years.

SBI Life - Retire Smart plan provides – 

Security – by safeguarding your retirement years



Reliability – through an assured retirement corpus



Flexibility – to pay premiums regularly or for a limited period

Success of an insurance company depends on four important functions: •Identification of markets: Identification of markets means need to understand the trends in culture and businesses constantly, through conducting research and

analysis. Insurance companies can take this job on their own or assign it to an external agency. Relying on an external agency can be risky due to the questionable loyalty of the agents.

•Assessment of risks and estimation of losses: Efficiency of actuaries and assessors of the insurance policies in fixing premiums and settling claims is foremost an important area for achieving overall efficiency in operations. The quality of assessing the risk and estimation of losses has the largest claim on the performance of an insurance company. Well-trained, experienced and expert hands are needed for the operations.

•Penetration into and exploitation of markets: Market penetration or exploitation of a company can be identified with the growth in number of policies in each type of insurance, growth rate in earnings or turnover, company’s market share, increase in number of branches and divisions etc. Efforts of the company as a whole and that of the divisions and branches are assessed to measure the effectiveness.

•Control over investment and operating costs: Control over resources such as men, machines, and materials at each level of the organization provide measures of efficiency of a unit as well as the organization. Investment control and expense control are dealt separately and the effectiveness of management’s’ decisions at various levels is to be assessed separately.

Attributes to develop marketing strategies: •Channel data: - Useful to know future buying preferences, learning about products and purchase channels.

•Consumer attitudes. •Consumption data: - Useful to evaluate annual premiums, number of annuities owned, value of annuities, and with which company the current policy is held.

Effective Strategies for Insurance Agents: •Learn how to construct a mental image for success. •Learn how to find a proper perspective and how to turn off all the signals that cause people not to buy from you. •Learn how to get and set more appointments. •Learn how to convert a new lead into sales. •Learn how to act when you meet a client for the first time. •Take Easy steps to avoid delays in issuing policies

Chapter 3 Research Methodology

MEANING OF RESEARCH Research is a matter of gathering information from varying sources usually in relation to a specific topic and for a specific purpose. The definition of research includes any gathering of data, information and facts for the advancement of knowledge.

MAIN OBJECTIVE OF THE STUDY “Effective analysis of Consumer behaviour towards Investment Plans &Products of SBI Life Insurance.Una,

RESEARCH DESIGN A research design is the arrangement of condition for collection & analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact the research design conceptual structure with in research is conducted.

TYPE OF RESEARCH The type of research that is used in this research is descriptive research. It is a research where specific predictions are made; the

percentage of units in a specified population exhibiting certain behaviour is measured. The characteristics of relevant groups is described the degree to which market variables are associated is determined and to determine the perception of product characteristics.

COLLECTION OF DATA Data constitutes the subject matter of analysis. One cannot draw inferences without analysing data. The relevance, adequacy and reliability of data determine the quality of the study. Data is primarily of two kinds – 1. Primary data 2. Secondary data

Primary data: The primary data are data, which are being collected by the researcher for the specific purpose of answering the problem on hand. Individual respondents, doctors, lecturers, jewellers, saloons were personally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire.

Secondary data: Literature study and the articles are obtaining secondary data from the Internet. The secondary data was collected on the basis of organizational file, official records, newspapers, magazines,

management books, preserved information in the company’s database and website of the company.

SAMPLING PROCEDURE •Procedure by which some members of a population are selected as representative of the entire population •The sub-group thus selected to represent the whole population is known as SAMPLE.

Sampling methods Probability sampling Non-probability sampling 1. Simple random method

1. Accidental sampling

2. Systematic sampling

2. Voluntary sampling

3. Stratified sampling

3. Purposive sampling

4. Cluster sampling

4. Quota sampling

5. Multi-stage sampling

5. Convenience sampling

Convenience sampling It is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. This non-probability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample.

SAMPLE DESIGN A procedure or plan drawn up before any data is collected to obtain as sample from a given population. It is also known as sampling plan or survey design.

RESEARCH METHODOLOGY Research is a diligent and systematic inquiry or investigation into a subjecting order to discover or revise facts, theories, applications, etc. Methodology is the system of methods followed by particular discipline. Thus research methodology is the way on we conducts our research.

Universe-

HPTU (Una)

Unit-

SBI Life Insurance Co.(Una)

Sample size- 100 Data source- Survey Method-

Convenience Sampling

Instrument- Questionnaire

OBJECTIVES •Proper understanding and analysis of life insurance industry. •To know about brand awareness of SBI Life Insurance and customer’s preference about SBI Life Insurance. •Conduct market survey on a sample selected from the entire population and derive opinion on that research. •To offer suggestions based upon findings.

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION.

Q1. Are you aware about SBI LifInsurance?

•75%People aware about SBI Life Insurance. •25%People not aware about SBI Life Insurance.

Q2. Do you have any account in SBI Bank?

•30%people have account in SBI Bank. •70%people don’t have account in SBI Bank

Q3 (A). Do you have any investment plans of SBI Life Insurance?

•37%people have investment plans of SBI Life Insurance like Unit Plus III,Smart ULIP, Pension Plan and Child Plan. •63%people not have investment plans of SBI Life Insurance.

Q 3(B). Are you satisfied with the plans of SBI Life?

•83% people are satisfied with the plans of SBI Life due to Effective services, Guarantee, good brand image, nice features, attractive plans, etc. •17% people are not satisfied with the plans of SBI Life due to block of money

4. Have you invested in any other life insurance company other than SBI Life?

•80%people have already invested in other Life Insurance company like LIC, ICICI, Reliance Life Insurance, Bajaj Life Insurance and Birla Life Insurance. •20%people not invested in any other Life insurance company.

5. Do you want to take any investment plan of SBI Life if you find it better?

•87%people want to take investment plan of SBI Life when they find it better. •13%people don’t want to take investment plan of SBI Life even when they find it better.

6. What do you think are the benefits of Life Insurance?

•17%People thought that Covers future uncertainty is the benefit of Life Insurance. •13%People thought Tax Saving as benefit of Life Insurance. %

People thought 3% investment •67%People thought all the above as benefit of Life Insurance

7. Which feature of Life Insurance policy will you consider while buying? •0%people judge investment plans with premium

. •7%people judge investment plans with Guarantee . •7%people judge investment plans with Returns

. •3%people judge investment plans with Brand Image

•33%people judge investment plans with above all features.

8. According to you, what is the right age to buy insurance?

•10%People thoughtless than 25 years is the right age to buy insurance. •50%People thought25 – 35 years is the right age. •17%People thought 35- 45 years is the right age.

•17%People thought> 45 years is the right age. •6%People thought one can buy insurance at anytime

ANALYSIS OF DATA COLLECTED

In my survey I found that 75% of people are aware about the SBI life insurance and remaining has some idea but they do not aware about SBI life insurance products. 30% of people have an account in SBI bank. 37% of people have invested in SBI life product. 87% people are interested to invest in SBI life planes. Life insurance can provide life cover to the person and protect his family. 50% of people buy insurance plan in age b/w 25-30.

CHAPTER 5 RECOMMENDATION, CONCLUSION

CONCLUSIONS During the data collected, it has been found that people have great awareness about SBI Life Insurance. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money. People in general have been influenced by the marketing activities of insurance companies. A high penetration of print, radio and TV adca mpaigns over the years is beginning to have its impact now. Another important trend was in terms of people viewing insurance as a tax saving and investment instrument as much as protective one. The general satisfaction levels among public with regards to policy and agents still requires improvement. Here lies the opportunity for a relatively new comer like SBI Life Insurance. LIC has never been known for prompt service or customer oriented methods but SBI Life Insurance can build its reputation based on these factors. 37% out of 75% people those who are aware about SBI Life Insurance have investment plans of it. 25% people not aware about SBI Life Insurance, hence they invested in other Life Insurance Company. 83% out of 37% people those who have SBI Life Insurance investment plans are very satisfied with these plans because of good services, returns, guarantee, brand image, premium, nice features, attractive plans etc. 70% of the people those who don’t have account in SBI Bank think that they can’t take investment plans of SBI Life Insurance.

67% People thought that Covers future uncertainty; tax saving and investment are some of the benefits of Life Insurance People are interested in those plans that give maximum profit in short term.

SUGGESTIONS & RECOMMENDATIONS •Marketing in terms of the media via advertisements on Television to small commercials on FM, hoardings and signage etc. has to be made because there were respondents who haven’t even heard about SBI Life Insurance. •Awareness camp for sub-urban area should be focused. •State and Central Government employees should be targeted because of reasons like:  They don’t have Life Insurance cover other than that provided by their respective employers and LIC.  Most of them are underinsured.  They have a stable source of income and social security. •SBI Life Insurance must build its reputation by focusing on service quality. Better service quality. Better service quality may be in the form:  Issuing policy in time.  providing claims in time.

 Making customers aware about their status of policy. •SBI Life Insurance must introduce such kind of policies which will give maximum profits in short term period.