25th jan Presentation

8/7/2019 25th jan Presentation

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What Is Insurance?What Is Insurance?

Insurance is a contract between two partiesInsurance is a contract between two parties

whereby one party called insurer undertakes Inwhereby one party called insurer undertakes Inexchange for a fixed sum called premiums, toexchange for a fixed sum called premiums, to

pay the other party happening of a certainpay the other party happening of a certain

event.event.


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Summer Internship Presentation OnSummer Internship Presentation On

Investment on InsuranceInvestment on InsuranceRiskRiskReturn analysis with reference toReturn analysis with reference to

HDFC LifeHDFC Life

Presented by

SUDHEENDRA M

MBA ( 3rd Semester)


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HDFCStandard Life InsuranceHDFCStandard Life Insurance

(Joint Venture)(Joint Venture)


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Industry Profile:Industry Profile: India is the world's fifth largest life insurance market and growing at a rapid pace of 32India is the world's fifth largest life insurance market and growing at a rapid pace of 32--

34% annually as per34% annually as per Life Insurance CouncilLife Insurance Councilstudies.studies.

The insurance sector has gone through a number of phases and changes. Since 1999,The insurance sector has gone through a number of phases and changes. Since 1999,when the government opened up the insurance sector by allowing private companies towhen the government opened up the insurance sector by allowing private companies tosolicit insurance and also allowingsolicit insurance and also allowing foreign direct investmentforeign direct investment of up to 26%, the insuranceof up to 26%, the insurancesector has been a booming market. However, the largest lifesector has been a booming market. However, the largest life--insurance company ininsurance company inIndia is still owned by the government.India is still owned by the government.

The LIC had monopoly till the late 90s when the Insurance sector was reopened to theThe LIC had monopoly till the late 90s when the Insurance sector was reopened to theprivate sector. Before that, the industry consisted of only two state insurers: Lifeprivate sector. Before that, the industry consisted of only two state insurers: LifeInsurers (Life Insurance Corporation of India, LIC) and General Insurers (GeneralInsurers (Life Insurance Corporation of India, LIC) and General Insurers (GeneralInsurance Corporation of India, GIC). GIC had four subsidiary companies.Insurance Corporation of India, GIC). GIC had four subsidiary companies.

With effect from December 2000, these subsidiaries have been deWith effect from December 2000, these subsidiaries have been de--linked from thelinked from the

parent company and were set up as independent insurance companies:parent company and were set up as independent insurance companies: OrientalOrientalInsurance Company Limited,Insurance Company Limited, New India Assurance Company Limited,New India Assurance Company Limited, NationalNationalInsurance Company LimitedInsurance Company Limited andand United India Insurance Company Limited.United India Insurance Company Limited.


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Industry structureIndustry structure

Currently, aCurrently, a US$41 billion industry, India is the world's fifth largest lifeUS$41 billion industry, India is the world's fifth largest lifeinsurance market and growing at a rapid pace of 32insurance market and growing at a rapid pace of 32--34% annually as34% annually asperper Life Insurance CouncilLife Insurance Councilstudies.studies.

Currently, in India only two million people (0.2Currently, in India only two million people (0.2 % of the total population of% of the total population of1 billion) are covered under1 billion) are covered under MediclaimMediclaim, whereas in developed nations like, whereas in developed nations like

USA about 75USA about 75 % of the total population are covered under some insurance% of the total population are covered under some insurancescheme. With more and more private companies in the sector, thescheme. With more and more private companies in the sector, thesituation may change soon.situation may change soon.

Indian life insurance industry overview:Indian life insurance industry overview:

All life insurance companies in India have to comply with the strict regulations laidAll life insurance companies in India have to comply with the strict regulations laidout by Insurance Regulatory and Development Authority of India (IRDA).out by Insurance Regulatory and Development Authority of India (IRDA).

Life Insurance Corporation of India (LIC), the state owned behemoth, remains by farLife Insurance Corporation of India (LIC), the state owned behemoth, remains by farthe largest player in the market. The private companies have come out with productsthe largest player in the market. The private companies have come out with productscalled ULIPs (Unit Linked Investment Plans) which offer both life cover as well ascalled ULIPs (Unit Linked Investment Plans) which offer both life cover as well asscope for savings or investment options as the customer desires. These types ofscope for savings or investment options as the customer desires. These types ofplans are subject to a minimum lockplans are subject to a minimum lock--in period of three years to prevent misuse of thein period of three years to prevent misuse of the

significant tax benefits offered to such plans under the Income Tax Act.significant tax benefits offered to such plans under the Income Tax Act.


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Insurance companies in IndiaInsurance companies in India

Type of insurancecompanies

Public sector

Private sector

Total

Life Insurance

01

22

23

GeneralInsurance

06

18

24


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Life Insurers in Private SectorLife Insurers in Private Sector

MetLife India Life InsuranceMetLife India Life Insurance

ICICI PrudentialICICI Prudential

Bajaj Allianz Life InsuranceBajaj Allianz Life Insurance

Max New York Life InsuranceMax New York Life Insurance

Sahara Life InsuranceSahara Life Insurance

TATA AIG Life InsuranceTATA AIG Life Insurance

HDFC Standard LifeHDFC Standard Life

BirlaBirla SunlifeSunlife

SBI Life Insurance CompanySBI Life Insurance CompanyLimitedLimited

KotakKotak Life InsuranceLife Insurance

Aviva Life InsuranceAviva Life Insurance

Reliance LifeReliance Life InsuCompanyInsuCompanyLimitedLimited -- Formerly known as AMPFormerly known as AMPSanmarSanmar LICranceLICrance

INGING VysyaVysya Life InsuranceLife Insurance

ShriramShriram Life InsuranceLife Insurance

BhartiBharti AXA Life Insurance Co LtdAXA Life Insurance Co Ltd

FutureFuture GeneraliGenerali Life Insurance CoLife Insurance CoLtdLtd

IDBI Fortis Life InsuranceIDBI Fortis Life Insurance

AEGONAEGON ReligareReligare Life Insurance 1Life Insurance 1

DLFDLF PramericaPramerica Life InsuranceLife Insurance

CANARA HSBC Oriental Bank ofCANARA HSBC Oriental Bank ofCommerce LIFE INSURANCECommerce LIFE INSURANCE

Star UnionStar Union DaiDai--ichiichi LifeLife InsuranceInsurance

Co. Ltd.Co. Ltd.

IndiaFirstIndiaFirst Life InsuranceLife InsuranceCompanyCompany


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Background :Background : PromotersPromoters

Housing Development Finance CorporationHousing Development Finance Corporation

30 Year track record30 Year track record

Strong public and market acceptanceStrong public and market acceptance

Market leader in mortgage financeMarket leader in mortgage finance -- 18 Lac homes financed18 Lac homes financedin over 2400 townsin over 2400 towns

11 Lac retail deposit customer based11 Lac retail deposit customer based

Asset base of More than Rs.1500 billionAsset base of More than Rs.1500 billion


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Standard Life Assurance CompanyStandard Life Assurance Company

Over 175 years experience in Life InsuranceOver 175 years experience in Life Insurance

Assets of US $ 110 BillionAssets of US $ 110 Billion

Voted Life Insurance Company of the decadeVoted Life Insurance Company of the decade

by IFAs in UKby IFAs in UK


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Company profile:Company profile:

HDFC Standard Life was the first private Life Insurance to get licenseHDFC Standard Life was the first private Life Insurance to get license

from IRDA in October 2000.from IRDA in October 2000.

HDFC is the majority stakeholder in the insurance JV with 81.4 % stakeHDFC is the majority stakeholder in the insurance JV with 81.4 % stakeand Standard Life holds 18.6%and Standard Life holds 18.6%..stake.stake.

Mr. DeepakMr. Deepak SatwalekarSatwalekar is the MD and CEO of this venture.is the MD and CEO of this venture.

The company has covered over 9,59,000 lives year ending March 31, 2008.The company has covered over 9,59,000 lives year ending March 31, 2008.

Strength of FCSStrength of FCS has increased to 1,45,000.has increased to 1,45,000.


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HDFC Vision & ValuesHDFC Vision & Values

HDFC VisionHDFC Vision

The most successful and admired Life Insurance Company, whichThe most successful and admired Life Insurance Company, whichmeans that we are the most trusted company, the easiest to dealmeans that we are the most trusted company, the easiest to dealwith, offer the best values for money, and set the standards in thewith, offer the best values for money, and set the standards in theindustry, In short,:industry, In short,:--

The most obvious choice for allThe most obvious choice for all

HDFC ValuesHDFC Values

Values that HDFC life observes while work:Values that HDFC life observes while work:

IntegrityIntegrity

InnovationInnovation

Customer centricCustomer centric

People Care One for all and all for onePeople Care One for all and all for one

Team workTeam work

Joy and SimplicityJoy and Simplicity


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Special features ofSpecial features of

Diversified Product PortfolioDiversified Product Portfolio

Strict Compliance with RegulationsStrict Compliance with Regulations

Transparent DealingTransparent Dealing

Focus on LongFocus on Long--Term ValueTerm Value

Focus on TrainingFocus on Training Risk Control FrameworkRisk Control Framework

NeedNeed--Based Selling ApproachBased Selling Approach

Investment PhilosophyInvestment Philosophy

Preferred and Trusted BrandPreferred and Trusted Brand

Strong PromoterStrong Promoter


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Insurance Plans By HDFCInsurance Plans By HDFC--LifeLife

11.Protection Plans:.Protection Plans:-- HDFC Term Assurance PlanHDFC Term Assurance Plan

HDFC Premium Guarantee PlanHDFC Premium Guarantee Plan

HDFC Loan Cover Term Assurance PlanHDFC Loan Cover Term Assurance Plan

HDFC Home Loan Protection PlanHDFC Home Loan Protection Plan


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2.Savings & Investment Plans2.Savings & Investment Plans

HDFC Endowment Assurance PlanHDFC Endowment Assurance Plan

HDFC SL CrestHDFC SL Crest

HDFC SLHDFC SL ProGrowthProGrowth Super IISuper II

HDFC SLHDFC SL ProGrowthProGrowth FlexiFlexi

HDFC SLHDFC SL ProGrowthProGrowth MaximiserMaximiser

HDFC SL New Money Back PlanHDFC SL New Money Back Plan

HDFC Single Premium Whole of Life Insurance PlanHDFC Single Premium Whole of Life Insurance Plan

HDFC Assurance PlanHDFC Assurance Plan

HDFC Savings Assurance PlanHDFC Savings Assurance Plan

Endowment Gain Insurance PlanEndowment Gain Insurance Plan


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3.Retirement Plans3.Retirement Plans::--

HDFC Personal Pension PlanHDFC Personal Pension Plan

HDFC Immediate AnnuityHDFC Immediate Annuity


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4.Savings & Investment Plans4.Savings & Investment Plans::--

HDFC Endowment Assurance PlanHDFC Endowment Assurance Plan

HDFC SL CrestHDFC SL Crest

HDFC SLHDFC SL ProGrowthProGrowth Super IISuper II

HDFC SLHDFC SL ProGrowthProGrowth FlexiFlexi

HDFC SLHDFC SL ProGrowthProGrowth MaximiserMaximiser

HDFC SL New Money Back PlanHDFC SL New Money Back Plan

HDFC Single Premium Whole of Life Insurance PlanHDFC Single Premium Whole of Life Insurance Plan HDFC Assurance PlanHDFC Assurance Plan

HDFC Savings Assurance PlanHDFC Savings Assurance Plan

Endowment Gain Insurance PlanEndowment Gain Insurance Plan


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5. Retirement plans5. Retirement plans


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Unit Linked Investment PlansUnit Linked Investment Plans

Unit Linked Endowment Plus IIUnit Linked Endowment Plus II

Unit Linked Young Star Plus IIUnit Linked Young Star Plus II

Unit Linked Enhanced Life Protection Plan IIUnit Linked Enhanced Life Protection Plan II

SimpliSimpli LifeLife


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Achievements/Awards:Achievements/Awards:

'The Ingenius 100 2009'Award Bold 100 and CIO Security Awards 2008 CIO Bold AwardBold 100 and CIO Security Awards 2008 CIO Bold Award


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McKinseys 7S FrameworkMcKinseys 7S Framework


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SWOTANALYSISSWOTANALYSIS

STRENGTHS

1. Strong Brand Name

2. A large distributionnetwork.

3. Customer centric approach

4. Excellence in Execution

5. Team Work (Together

Everyone Achieves More)

6. Proactive Innovation.

7. Infrastructure

WEAKNESS

1. Frequent job rotation

by employees

2. Less number of

advertisement

3. Hidden Charges


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OPPORTUNITIES

1. Scope in Jaipur as it is in the

developing phase.

2. Only 25% of insurable people

have any insurance.

3. Can introduce innovative

products offering a right mix ofFlexibility/Risk/Return.

4. Share of FDI is going to raise

by 26% to 49%.

THREATS

1. LICs brand name.

2. People prefer short

investment rather than in

insurance.

3. Other private

insurance companies.


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InHDFCInHDFC--SLIC I feel that Insurance sector is one of the mostSLIC I feel that Insurance sector is one of the mostgrowing sector among all sectors in India.growing sector among all sectors in India.

I also find thatH

DFC Standard Lifes Traditional Plans areI also find thatH

DFC Standard Lifes Traditional Plans arevery useful for a normal person.very useful for a normal person.

Jaipur is one of the most growing city and there is lot of scope inJaipur is one of the most growing city and there is lot of scope ininsurance.insurance.

Most of the people are aware of traditional plans.Most of the people are aware of traditional plans.

Electronic media has proved to be very beneficial for people toElectronic media has proved to be very beneficial for people tounderstand about the insurance.understand about the insurance.

FINDINGS


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There is lot of opportunities for young and energetic people inThere is lot of opportunities for young and energetic people inHDFC SL to build there sound career.HDFC SL to build there sound career.

HDFC Standard Lifes traditional plans like children plan, oneHDFC Standard Lifes traditional plans like children plan, oneof the most popular product of the company.of the most popular product of the company.

HDFC SL the Certified Financial Consultant have freeHDFC SL the Certified Financial Consultant have freeenvironment of working. There is no time boundation.environment of working. There is no time boundation.

The FCs dont join the product training in proper manner soThe FCs dont join the product training in proper manner so

they dont get the product knowledge properly thats why theythey dont get the product knowledge properly thats why theyare not covering the insurance market properly.are not covering the insurance market properly.


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CONCLUSIONCONCLUSION

Life insurance service sector is highly growingLife insurance service sector is highly growing

finance sector.finance sector.

HDFCHDFC--LIC is the private insurance organizationLIC is the private insurance organization

which is developing and growing at fast rate.which is developing and growing at fast rate.

Because of less advertisement, people are not awareBecause of less advertisement, people are not aware

ofHDFCofHDFC--LIC insurance plans.LIC insurance plans.

HDFCLife is renowned for transparency and high

HDFCLife is renowned for transparency and highcorporate governance standards.corporate governance standards.


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BIBLIOGRAPHYBIBLIOGRAPHYBooks:-

1. Agents Hand Book HDFCStandard Life

2. Kothari C.R. Research Methodology & Techniques, 2nd Edition

3. Principles and Practice of Insurance G.S. Panda

From Company:-

1. Company Reports

2. Company Brochures

Websites:-www.apnabima.com

www.hdfcinsurance.com

www.indiastat.com


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Company profile:Company profile:

HDFC Standard Life, one of Indias leading private life insuranceHDFC Standard Life, one of Indias leading private life insurancecompanies, offers a range of individual and group insurance solutions. It iscompanies, offers a range of individual and group insurance solutions. It isa joint venture between Housing Development Finance Corporationa joint venture between Housing Development Finance CorporationLimited (HDFC), Indias leading housing finance institution and StandardLimited (HDFC), Indias leading housing finance institution and StandardLife plc, the leading provider of financial services in the United Kingdom.Life plc, the leading provider of financial services in the United Kingdom.

HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holdsHDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds26.00% of equity in the joint venture, while the rest is held by others.26.00% of equity in the joint venture, while the rest is held by others.

HDFC Standard Lifes product portfolio comprises solutions, which meetHDFC Standard Lifes product portfolio comprises solutions, which meetvarious customer needs such as Protection, Pension, Savings, Investmentvarious customer needs such as Protection, Pension, Savings, Investmentand Health. Customers have the added advantage of customizing theand Health. Customers have the added advantage of customizing the

plans, by adding optional benefits called riders, at a nominal price. Theplans, by adding optional benefits called riders, at a nominal price. Thecompany currently has 32 retail and 4 group products in its portfolio,company currently has 32 retail and 4 group products in its portfolio,along with five optional rider benefits catering to the savings, investment,along with five optional rider benefits catering to the savings, investment,protection and retirement needs of customers.protection and retirement needs of customers.


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25th jan Presentation