0602044 India Infoline _icici Prudencial

7/31/2019 0602044 India Infoline _icici Prudencial

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A

PROJECT REPORT ON

INDIA INFOLINE (ICICI PRUDENCIAL)

IN PRIVATE LIFE INSURANCE SECTOR

AT

INDIA INFOLINE.COM, JHANSI

SUBMITTED TO UNIVERSITY OF PUNE IN

PARTIAL FULFILLMENT OF

THE DEGREE OF

MASTER OF MARKETING MANAGEMENT(MMM)

SUBMITTED BY

SHWETANK SHARMA(BATCH 2006-2008)

VISHWAKARMA INSTETUTE OF MANAGMENTS. No. 309/310, Kusgaon (Bk.),, Pune.


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CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that this project titled Market Potential Of

INDIA INFOLINE (ICICI PRUDENCIAL In Private Life

Insurance Sector at, Jhansi is a bonafide work carried out

by Mr. Shwetank sharma student of MMM of Vishwkarma

Institute of management, Kusgaon (Bk.), Lonavala, Pune in

the partial fulfillment for the degree of Master of Marketing

Management, University of Pune.He has worked under our

Guidance and direction. His work is found to be

good and complete in all respect.

Prof. sharad Jhosi(Director)


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CONTENTSSr.No TITLE PAGENO.01. Executive Summary - 602 Objective & Scope - 803. Introduction - 9

04 Industry profile - 1105. Company Profile - 1406 Products - 2007. Research Methodology - 2108. Data Analysis And

Interpretation - 29

09 Observation - 4210. Findings And limitation - 4511. Recommendation - 4712. Conclusion - 4913. Bibliography - 5014. Annexure - 52


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EXECUTIVE SUMMARYThe Indian Financial Sector is one of the sunrise sectors, which holds great

future for country. If nurtured carefully it has the potential to put India on the world mapas a hub of global financial activities. Though India s large insurance market is capturedby LIC, but in the recent flow of privatization India infoline insurance services ltd is alsoacquiring trust in people.Project involved a blend of marketing where we have to interact with allKinds of customers such as retailers, wholesalers, real estate agents, builder & Otherservice group to gather information on site and tell them what are the new opportunitiesand benefits with India I Life Insurance if they insured with India infoline group. Themain task of project involved carrying the fieldwork where we supposed to visit all kindof retail outlets as well as non-retail business in major localities. The first half of my

project involved in India infoline is to carry the field work along with campaigning indifferent localities in Pune region. Data collected from fieldwork were submitted to thecompany for future requirements and also to getback to the customers. The study undertaken for two months. As I have to targetspecifically to retailers and whole sellers who form the majority portion of the totalmarket. We were given more than one month for the collection of data and scanning ofdata. This report shows detail work on following areas- Pune Satara Road- Chinchwad- Dhole Patil Road- Bibwewadi Area

- Bund Garden Road

For this purpose Feedback form was prepared which gave a broaderPicture of the potential customers about their existence investment segments. The formshows details regarding current savings and planning for their future events

Through this form we got to know what people think about private insuranceSector and get the idea about different flows in the insurance sector because it has seenthat during interview few people had an idea about private players in the insurance sector

and their developments. The questionnaire contains various aspects like profession,education, current savings, number of dependants, addressEtc.


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OBJECTIVE:-The objective of the project is Market Research & Find out the MarketPotential for India infoline in Private Life Insurance Sector . For this we have to

understand consumer response, time frame, personality constraints and emotions forassessing the potential of Private insurance sector. So specifically the project target is tofocus of the high network income groups and retailers for their investment portion.It also contains scanning the market thought form/questionnaire makingproper evaluation of given information and going back to them showing how theyneed to plan their future and the direction to achieve their desired goals.

SCOPE:-

The study of potential of insurance business is concerned with marketStudy i.e. research and fieldwork. This study is going to help the India InfolineLife Insurance to find out market potential with other private companies.

The study will help the company to assess their performance and improve it where it islacking.Research work is a basic function carried out by each organization. Thestudy of market potential of insurance is very helpful to find out who are themarket leaders in private companies as well as overall analysis.Availability of time was also taken into account while deciding theparticular method to meet the objectives. The entire study programmed was for

the period of two months.The subject of the study was selected by looking the necessity andimportance to find the market potential and give suggestions related to the topic


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INTRODUCTIONWherever there is uncertainty there is risk. The risk cannot be averted. Therisk is uncertainty of the financial loss. We don t have any command onuncertainties. This makes it essential that we think in favor of a device thatbecomes instrumental in spreading the loss. It is in this context that we think about

insurance.

Protection against the possible chances of generating uncertain losses. Iteliminates worries and miseries of losses or destruction of property and death.Life insurance is a contract between the insurer and a life insurancecompany, which provides insurer a predetermined amount in case of his death,accidents or any uncertain events during the contract term. Buying insurance isextremely useful if one is the principle-earning member in the family andunfortunate premature demise, his family can remain financially secured becauseof the life that he have purchased.The primary purpose of life insurance is therefore protection of the family

for uncertain events for future. Life insurance is also seen as a tool to planeffectively for the future years, insurer s retirement, education of the children sand their future needs. Today, market offers insurance plans that not just coverinsurer and his family but at the same time it helps to grow his wealth too.Life wasn t designed to be risk free. The key is not to eliminate risk, but toestimate it accurately and manage it wisely.Insurance sector has a great Importance in the developing economy likeIndia as it gives boost to the growth of economy. As it is becoming biggestinvestor in long gestation infrastructure development projects at macro level andgenerating saving habits in the individuals at micro level.The annual growth rate is of 15-20% and the largest number of life

insurance policies in force, the potential of the Indian insurance industry is huge.


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Introduction to the topic:-

The main purpose of the project is basically to find the market potential forIndia infoline insurance services sector Jhansi. It included extensive marketsurveys and meetings mainly with the retailers, whole sellers, builder and other

merchants from different regions of Jhansi. The project is divided in two parts, forthe first half is contains period of 30 days in which I done research, surveys andmeetings with the people to collect data. In the later part I met various retailer,whole sellers, real estate agents, stockiest and few others to promote and makethem aware about the company.The survey also helped to provide details regarding various opportunitiesand different plans and policies that are coming up in the company. This wasuseful information for them to get the benefits and to know future growthprospects if they join with the company.Importance of the topic

The topic gives broader picture about who is the market leader among all

the insurance providers. The study is all about finding out the market potential ofIndia infoline insurance service sector for the Jhansi region.India infoline group recently launched India infoline Insurance services along withold mutual plc. as join venture. There are already 13 private insurance companiesin the Indian market & what is the present position of India infolineinsurance services could be determined by market research and fieldwork.This data will be helpful to determine what the problems are &competitions India infoline is facing in the market, how people perceive India infolineservices group as life insurance providers.


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INDUSTRY PROFILE :- INSURANCE SECTOR REFORMS:-

1) Structure: -

Government stake in the insurance companies to be brought down to 50%.

2) Competition: -

Private companies with a minimum paid up capital of Rs. 1billion should beallowed to enter the industry. No company should deal in both Life and GeneralInsurance though a single entity. Foreign companies may be allowed to enter theindustry in collection with the domestic companies. Postal Life Insurance Shouldbe allowed to operate in the rural market. Only One State Life Insurance Companyshould be allowed to operate in each state.

3) Regulatory Body: -

- The Insurance Act should be changed

- An Insurance Regulatory body should be set up- Controller of Insurance (Currently a part from the Finance Ministry)Should be made independent.

4) Investments: -

Mandatory Investment of LIC Life Fund in government securities to bereduced from 75% to 50%.

5) Customer service: -

LIC should pay interest on delays in payments beyond 30 days. Insurancecompanies must be encouraged to set up unit linked pension plans.

Computerization of operations and updating of technology to be carried out in theinsurance industry. The committee emphasized that in order to improve thecustomer services and increase the coverage of the insurance; industry should beopened up to competition.


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ENTRANCE OF PRIVATE COMPANIES IN INSURANCE SECTORS:-

Insurance sector is seeing a strong growth in terms of penetration, lifeinsurance to premium to GDP has grown from 1.8 percent to 2.3 percent whilethe per capita premium paid has more than doubled from Rs 280 to Rs600.Despite the fact that India boosts a saving rat of around 25 percent, less than5 percent is spent on insurance.The insurance landscape in India is undergoing major changes. Close toforeign competition since nationalization in 1956,the life insurance industry hadbeen protected from competitive pressures.Now with the re-opening of the sector, several new players have entered

the scene. Besides, India infoline Insurance services ltd there is 13 other privateplayers working in insurance sector which are as follows.

1. AMP Sanmar Assurance Company Ltd.Indian Promoter Reliance GroupForeign Insurer None

2. AVIVA Life Insurance Company Ltd.Indian Promoter DABURForeign Insurer AVIVA, UK

3. BAJAJ Allainz Life Insurance Company Ltd.Indian Promoter BAJAJ Auto.Foreign Insurer ALLIANZ, Germany

4. BIRLA Sun Life Insurance Company.Indian Promoter ADITYA BIRLA GroupForeign Insurer SUN LIFE, Canada

5. HDFC Standard Life Insurance Company.Indian Promoter- HDFCForeign Insurer Standard Life, UK

6. ICICI Prudential Life InsuranceIndian Promoter ICICI BankForeign Insurer Prudential, UK

7. KOTAK MAHINDRA OLD MUTUAL Life InsuranceIndian Promoter- KOTAK BankForeign Insurer- OLD MUTUAL, South Africa.


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8. Max New York Life Insurance CompanyIndian Promoter MAX IndiaForeign Insurer NEW YORK LIFE, US

9. MET LIFE Insurance CompanyIndian Promoter J & K BankForeign Insurer MET LIFE, US

10. SAHARA Life Insurance Company LtdIndian Promoter SAHARA INDIA Ltd.Foreign Insurer NONE

11. SBI Life InsuranceIndian Promoter SBIForeign Insurer CARDIFF, France

12. TATA AIGIndian Promoter TATA GroupForeign Insurer AIG, US

13. ING Vysya life insurance co. ltd.


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COMPANY PROFILE ABOUT INDIA INFOLINE GROUPWe are a one-stop financial service shop, most respected in quality of its advice,personalized services and cutting edge technology.

India infoline ltd is listed on both the leading stock exchanges in India, vis. The stock

exchange, Mumbai(BSE) and national stock exchange(NSE). The India infoline grop ,compaision the holding company, India infoline Led and its subsidiaries, Straddles theentire financial services space with offerings ranging from Equity research, Equity andderivatives trading, Portfolio management services, Mutual funds,Life insurance, Fixeddeposits, Gol bonds and other small saving one of India's leading financial institutionswas born in 1995 as India infoline.com. This company was promoted by Mr.Nirmal Jain .It's been a steady and confident journey to growth and success.India infoline is one of India's leading financial institutions, offeringcomplete financial solutions that encompass every sphere of life. Fromstock broking, to mutual funds, to life insurance, to investment banking, the group catersto the financial needs of individuals and corporate.

The group has a net worth of over Rs. 2,840 crore, employs around 20000people in its various businesses and has a distribution network of branches,franchisees, representative offices and satellite offices across 264 cities and townsin India. Company is also listed in NSE/BSE.

JOURNEY OF INDIA INFOLINE.COM

The India infoline group was born in 1995 as India infoline.com .this company.India infolineLtd is listed on both the leading stock exchange in India,Thestock Exchange, Mumbai(BSE) and the National Stock Exchange(NSE).The Indiainfoline group ,comprising the holding company,India Infoline Ltd and its subsidiaries,Straddles the entire financial services space with offerings ranging ranging form Equtyresearch ,1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting.1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchasemarket.1990 The Auto Finance division is started.1992 The Investment Banking Division is started. Takes over FICOM, one ofIndia s financial retail marketing networks.1992 Enters the Funds Syndication sector.1995 Brokerage and distribution business incorporated into a separate companyKotak Securities. Investment banking division incorporated into aseparate company - Kotak Mahindra Capital Company.1996 The Auto Finance Business is hived off into a separate company - KotakMahindra Primus Limited. Kotak Mahindra takes significant stake inFord Credit Kotak Mahindra Limited, for financing Ford vehicles. The


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management. The old mutual Group offers a diverse range of financial servicesgeographies: South Africa, the United States and United Kingdom. The companyis listed on the London Stock Exchange capitalization of approximately $6 billonand is member of the elite FSTS 100 index. In the 2003 rankings of the wcorporations Fortune magazine, Old mutual climbed 87 places to position number

366 and was also listed 14th company in the world.Old Mutual is the largest financial services business in South Africa,through its life insurance, asset management, and insurance operations. Thecompany serves 4 million life insurance policyholders and employs over 13 000South Africa operations.In the USA Old Mutual is one of the top ten fixed annuity business offeringan array of specialist asset management. The company s US Life businessrecorded sales of $4 billion at the end of 2002.Operations in the United Kingdom are focused on wealth management,through Garrard as one the leading private business in the UK.The Old Mutual Group has the ability to cater for variety of consumer

segments and offers a comprehensive and in products for all income groups.Kotak Mahindra old mutual life insurance Ltd. is a joint venture betweenkotak Mahindra Bank ltd.(KMBL), and Old Mutual plc. At Kotak life insurance,we aim to help customers take important financial decision at every stage in lifeby offering them a wide range of innovation life insurance products, to make themfinancially independent.

ABOUT KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE

LTD.Kotak Mahindra old mutual life insurance Ltd. is a joint venture between


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kotak Mahindra Bank ltd. (KMBL), and Old Mutual plc. At Kotak life insurance,we aim to help customers take important financial decision at every stage in lifeby offering them a wide range of innovation life insurance products, to make themfinancially independent.

LOGO:-

VISION:-Global Indian financial services brand- Indian understanding: global standards of deliveryMost preferred employer/business partner

- Home for bright minds and entrepreneurial skillMost trusted financial services company

- High standard of compliance/corporate governanceValue & not just size

- Business driven with both value and growth in mindOUR MANAGEMENT TEAM FOR LIFE INSURANCE

Mr. Gaurang Shah -Managing Director

Mr. G Murlidhar -Chief Financial OfficerMr. Nandip Vaidya -Vice President - Sales

Mr. Arun Patil -Vice President - Sales & Management Development

Mr. Eksteen de Waal -Head Sales Training20

PRODUCTS: IndividualKotak Term PlanKotak Privileged Assurance PlanKotak Preferred Term PlanKotak Money Back PlanKotak Child Advantage Plan

Kotak Endowment PlanKotak Capital Multiplier PlanKotak Retirement Income PlanKotak Retirement Income Plan (Unit-linked)Kotak Safe Investment Plan IIKotak Flexi PlanKotak Easy Growth PlanRidersKotak Premium Return Plan

GroupEmployee Benefits

Kotak Term PlanKotak Credit-Term GrouplanKotak Complete Cover GrouplanKotak Gratuity GrouplanKotak Superannuation Grouplan

RuralKotak GraminKotak Gramin Bima Yojana.


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RESEARCH METHODOLOGY INTRODUCTION:Marketing Research is a systematic and objective study of the problemspertaining to the marketing of the goods and services. It may be emphasized that itis not restricted to any particular area of marketing, but is applied to all the phases

and aspects.RESEARCH PROCESS:-For assessing the customer response following market research processfollowedStep 1:Define the objective:

First step is defining the objective i.e. Market Potential for Kotak LifeInsurance researcher covered most of the areas, which had been instructedby the company.Step 2:Develop research plan:The second step was to develop the most efficient plan for gathering theneeded information.

i) Data sources: Both primary & secondary data are taken intoconsideration. Primary data are data gathered from field for specificresearch project.ii) Research approach: I have mainly collected the primary data throughsurvey & few cases by observations.iii)Research instrument: Questionnaire is used to collect most of theprimary data.iv) Sample plan: after deciding on the research approach the instruments Idecided sampling plan this cause for three decisions.a) Sampling unit: project was concentrated on retailers, whole sellers,

real estate agents, builder service group & others for the sampling unit22b) Sampling size: project consists of 125 respondents from differentareas & from different professions.c) Contact method: once a sampling plan has been determined,marketing researcher need to decide how the subject should becontacted: mails, telephone, personal visit or online interview. In myproject research it was mostly personal interview and telephonicinterviews was held.Step 3:Collect the information:

Data collection phase of the marketing research generally was the mosttime consuming period. In case of survey few problems arise likewise somerespondents may not give all the detail information and might not beavailable and must be contacted or replaced. Others refused to co-operateand finally some respondents will be biased or dishonest to shareinformation.Step 4:Analyze the information:

The collected information needs to be analyzed thoroughly to extract thefindings that will be useful to the company. Again this data must be


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tabulated and averages/measures are computed from various variables.Step 5:Present the findings:

And the last step is present the findings that are relevant to the

METHOD OF DATA COLLECTION:- 1) Primary Data;

The major source for collecting primary data has been the interviews heldwith retailers, whole sellers, real estate agents, stockiest and few other segment ofmarket. The maximum prospects were visited directly at the shops andinterviewed provided they had time to spare. Some of them interviewed via talecalling and few were interviewed after taking prior permission and appointment.The information given by them was satisfactory and relevant to the subject.

2) Secondary Data:The major sources of secondary data are;INSTITUTION:- Business Magazines

- News Paper- Annual Reports / Company PeriodicalsREFERENCES:

- Internet, Company websites- Telephone Directory (BSNL and TATA Indicom)- References from company employees- Annual Reports / Company Periodica


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QUESTIONNAIRE METHOD This method is used to collect general informationabout the company liketotal number of employees viz. agents, sales executive, management trainees,front line staff etc. Sales executive provided this information. This informationhelped to know the basic knowledge about the company before doing the actual

research.

RESEARCH DESIGN:SAMPLING UNITS:This combines all those respondents in the market who can be the futureprospects of being a part as an insurer of Kotak Mahindra Life Insurance. Some ofthem are retailers, whole sellers, real estate agents, stockiest and few others fromdifferent commercial areas of PUNE.As instructed by the company- following are the few segments.

1. Business Class

- Retailers- Wholesalers- Construction/ Builders

2. Agents- Postal Agents- General Insurance Agents- Travel Agents- Real Estate Agents

3. Employees / Service Class

- Professor / Teachers25- Office Staff, Banks Staff- Government Employees

4. Mutual Fund Agents

5. Tax Consultants

6. Investment Consultants

7. Share Brokers

8. Financial Advisors

9. Chartered Accountants / Company Secretaries

10. Others- House wife, Medical RepresentativesOut of these various segments, the researcher targeted following


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- Retailers- Whole sellers- Real Estate Agents- Stockiest- Others

Note: It was instructed by the company to target the people having net incomebetween 15000 and above p.m. The required data for above segments is to besuch, which is helpful to know the background & potential of the prospects. Forall that researcher collected information as there,NamePresent AgeAddressPh No.- E-mail-- Brief Information about family- Personal Goals- Retirement Plans

26- Present monthly expenses- Existing Investment Avenues


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DATA COLLECTION TECHNIQUES: -Questionnaire Method- Telephone Interview Method

QUESTIONNAIRE METHOD

The individual questionnaire of the survey was designed for populationbetween age group of 18 60 years of age who can be the prospect of becoming

Kotak Mahindra Life Insurance clients from different areas of PUNE. In total 125questionnaires were completed who were the samples for research work.

SAMPLE SIZE:The sample size of the respondents was taken as 165 considering the scopeand constraints of the study.

FIELD WORK:

The fieldwork was conducted for a period of 60 days in differentcommercial areas of PUNE. Interviews were conducted from respondents acrosssegments, above 18 years of age and as per their convenience. So as to contrive

representative sample. The interview and presentation mode by researcher werecarried for the duration of 20 minutes.


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DATA ANALYSIS AND INTERPRETATION 1. INVESTMENT OPTIONSPREFERRED BY RESPONDENTS.

Sr. NoInvestment

Options No. Of Respondents

1 Insurance 412 Fixed Deposit 143 Post 84 PPF 105 Mutual Fund 196 Shares 187 Other 15TOTAL 125

RESPONDENTS FOR INVESTMENT OPTION411410 8191815 InsuranceFixed DepositPostPPFMutual Fund

SharesOtherOut of total respondents, maximum i.e. 41 respondents think Insurance is asafer option to invest the money. It gives them long-term benefits for not onlyindividual but for the entire family. Thus, people find insurance safe and betteroption rather than investing in FD, Post, Mutual Funds, Shares etc.302. ESSENTIAL OF LIFE INSURANCE


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RESPONSENo. OfRespondentsYEAS 95NO 30

TOTAL 125ESSENTAIL OF LIFE INSURANCE76%24%YEASNOAround 76 % of the total on of respondents thinks that insurance is essential partof the life. But for everyone the need for life insurance is different reasons.24% ofthe respondents think other options are better than life insurance. Followingfactors determine the need for life insurance.31

Factors to determineneed for L.I No. Of respondents

Security/Safety 63Savings 23Long term Investments 18Tax Saving 21Total 125

EASSENTIAL OF LIFE INSURANCE51%18%14%17%Security/SafetySavingsLong term InvestmentsTax SavingStill majority i.e. 51% people think that insurance is essential. However safety ismajor concern when people see insurance as investment


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0602044 India Infoline _icici Prudencial