Introduction of Life Insurance

8/2/2019 Introduction of Life Insurance

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Introduction of Life

insurance

Insurance provides financial protection againsta loss arising out of happening of an uncertain

event. A person can avail this protection by

paying premium to an insurance company

A pool is created through contributions made bypersons seeking to protect themselves from

common risk. Premium is collected by

insurance companies which also act as trustee

to the pool. Any loss to the insured in case of

happening of an uncertain event is paid out of

this pool.

Insurance works on the basic principle of risk-sharing. A great advantage of insurance is that

it spreads the risk of a few people over a large

group of people exposed to risk of similar type.

Different Life Insurance products can help providethe following benefits :

Tax Savings Risk Coverage (Term Plan) Long Term Investments (Pension Plan / Child

Plan)


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Why do you need Life Insurance?:

Why do you need Life Insurance? Life Insurance is almost a

basic need. Its the first step in Personal Financial Planning

.It provides valuable benefits if you make your choices

carefully. Its a comprehensive wealth accumulation

solution that benefits almost all.

Life Insurance Products:

Life Insurance Products Unit Linked Insurance Plan

Traditional Savings Plan Protection or Term Plan Health

Insurance Plan

1.Unit Linked Insurance Plan:Unit Linked Insurance Plan A Unit Linked Life Insurance

Plan (ULIP) offers the dual benefits of protection as well as

savings which helps you to fulfill your long term financial

goals with the added advantage of flexibility and

transparency.

2.Traditional Savings Plan:Traditional Savings Plan Traditional plans are the oldest

types of Life Insurance plans available. They usually invest

in low risk return options and offer guaranteed maturity


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proceeds along with declared bonuses. It also offer you the

facility to take a loan against your investment

3.Protection or Term Plan :Protection or Term Plan Protection or Term plans have a

high risk protection component. The main objective of

these plans is to protect your family financially from

unforeseen circumstances.

4.Health Insurance Plan:Health Insurance Plan Health Insurance plans insure you

against several illnesses. They protect your peace of mind,

get rid of all worries about treatment expenses, and allow

you to focus on more important things, like getting better.


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Types Of Life Insurance

Products(Term Assurance)

Based on the benefit patterns the traditional LifeInsurance products can be categorised into the

following types:

Term Insurance Whole Life Insurance Endowment Insurance Annuities

Term Insurance provides for life insurance

protection for the selected term (period of years)

only. In case the person (whose life is insured) dies

during the term, the benefits are payable under the

policy and in case of his survival till the end of the

selected term the policy normally expires without

any benefit becoming payable. Term insurance may

be regarded as temporary insurance and is more

nearly comparable with "Property & Casualty

insurance" contracts than the other forms of Life

insurance contracts.

Types of Insurance Life Insurance Health Care Insurance Home Insurance


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Travel Insurance Auto Insurance

OBJECTIVE OF THE STUDY

To know the promotional strategies of lifeinsurance.

To know how they face their competitorsstrategies.

To know how they survive in the cutthroatcompetition.

To know the products of the ICICI prudential lifeinsurance

To know the product life cycle of the ICICIprudential life insurance

Product marketing

In an ideal world, you would usemarket researchto

find out what your customers want and then design

products to suit them.
http://www.marketingdonut.co.uk/marketing/market-researchhttp://www.marketingdonut.co.uk/marketing/market-researchhttp://www.marketingdonut.co.uk/marketing/market-researchhttp://www.marketingdonut.co.uk/marketing/market-research


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In reality, product management starts with existing

products and you have to improve on them with

limited cash, skills and technological resources. But

the principle still applies - good product marketing

looks for ways to adapt and promote products to

match customer requirements.

Product features, design and quality can all be

tailored to the needs of your target market. So too

can its image and the customer service that you

provide.

Product positioning

Simply meeting customer needs is not enough - you

also need to make sure they pick you ahead of your

competitors.

You could focus on quality, reliability and customer

service to position your product as a premium

offering that's better than the competition.

Customising products and services for individual

customers will also make you seem unique.

A tight focus on the differentcustomer segments

you're targeting can help you identify opportunities

to differentiate effectively. Products targeted in this

way - such as car insurance specifically for women -

can give you a competitive edge, even if the product

itself has few specific features.
http://www.marketingdonut.co.uk/marketing/customer-care/customer-service-and-after-sales-servicehttp://www.marketingdonut.co.uk/marketing/marketing-strategy/market-segmentation-and-your-target-markethttp://www.marketingdonut.co.uk/marketing/marketing-strategy/market-segmentation-and-your-target-markethttp://www.marketingdonut.co.uk/marketing/marketing-strategy/market-segmentation-and-your-target-markethttp://www.marketingdonut.co.uk/marketing/marketing-strategy/market-segmentation-and-your-target-markethttp://www.marketingdonut.co.uk/marketing/customer-care/customer-service-and-after-sales-service


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Product life cycles

Successful products don't often stay at the top for

long. What usually happens is that they follow a life

cycle, from introduction to the point where they are

overtaken by newer, better alternatives. If you

understand where your product is in its life cycle,

you can market it in a way that will maximise sales.

When you introduce a product, for example, you

need to invest in promotion to build awareness

(such as free samples) and target your marketing at

people who influence others to buy.

As the product's popularity grows, sales will

increase and your unit costs will go down. But

competitors will emerge to grab a share of the

profits to be made. Your marketing objective will

now be to maintain and increase your market share

- for example, by improving your offer and making it

more widely available.

Your sales will peak and competition will heat up as

the product reaches maturity. At this point,

stressing the way your offer differs from your rivals'

can help you maintain margins and market share.

Finally, sales will fall as new products emerge. At

this stage, you should focus on controlling costs

and boosting efficiency.


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New product development

1.Growth2.Maturity3.Decline

To keep up with your customers - and your rivals -

you will need to ensure you have a steady flow ofnew products.

If you're aiming to be the first to market with new

products, you'll need to invest heavily in innovation.

This is a high-cost, high-risk strategy, but the payoff

can be immense - especially if you patent your

innovation.

Being second to market is the best strategy if

you're a smaller firm with fewer resources. Costs

and risks are lower, and you need to focus more on


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differentiation than innovation to tap into a growing

market.

You should aim for a product mix that fits your

overall marketing strategy. If you sell products

which customers purchase infrequently (such as

printers) you should think about diversifying into

related products or services that are purchased

more often (such as consumables or service

contracts). Developing products that share the

same underlying platform can also be a cost-

effective way of using your existing product

expertise.


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Scope of the study:

For every problem there is a research. As all

the researches are based on some and my

study is also based upon some objective and

these are as follows.

To understand the insurance business andproducts of life insurance .

To find out the peoples perception about liinsurance.

To find out whether people were reallyaware of life insurance.

To find out how people think about privatelife insurance.

To find out what respondents expect fromlife insurance.

To understand Consumer buying behavior To come out with conclusion and

suggestions based on the analysis and the

nterpretation of data


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RESEARCH METHODOLOGY

Research in common parlance refers to a

search for knowledge. One can also define

research as a scientific and systematic search

for pertinent information on a specific topic.The

word research has been derived from French

word Researcher means to search.

RESEARCH DESIGN: Research Design is

the conceptual structure within which

research is conducted. It constitutes the

blueprint for collection, measurement and

analysis of data. The design used for

carrying out this research is Descriptive.

DATA TYPE:

In this research the type of data

collection is

Primary data

Secondary data


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DATA SOURCE: The sources of collection of

secondary data are:

Questionnaire Books Websites Magazine Brochure

SAMPLING PLAN:

It is very difficult to collect information from every

member of a population .As time and costs are the

major limitation that the researcher faces.

A sample of 100 was taken the sample size of 10

individuals were selected on the basis of convenien

sampling technique. The individuals were selected i

the random manner to form sample and data wer

collected from them for the research study.


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ANALYSIS AND INTERPRETATION:

Data collection through questionnaire and

personnel interview resulted in availability of

the desired information but these were useless

until there were analyzed. Various steps

required for this purpose were editing, coding

and tabulating. Tabulating refers to bringing

together similar data and compiling them in an

accurate and meaningful manner. The data

collected by questionnaire was analyzed,

interpreted with the help of table, bar chart and

pie chart.

Consumer Perception Towards Life Insurance

Product: An Empirical Study


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The life insurance plays a significant role in the well

being of the people. Till insurance sector reforms

the LIC has enjoyed the monopoly in life insurance

business. After liberalization when private

companies were allowed to start life insurance

business a number of multinational giants in life

insurance business have collaborated with Indian

companies to start insurance business in India. Now

this has posed a tough challenge to the LIC because

of their latest technical know how expertise well

structured marketing network etc. Of course the

LIC has also made its business functioning flexible

and faced the challenges boldly that emerged from

the process of insurance sector reforms.

Keeping in view the above issues the present bookon consumer perception towards life insurance

products has undertaken a comprehensive study in

this regard. In this study a special mention on

consumer behaviour particularly on the consumer

perception has been dealt elaborately. Further the

growth and development of life insurance sector

has been focused. Apart from this a survey has beenmade to study the consumer perception towards

insurance products offered by different life

insurance companies. A comparative analysis has

been made between public and private sector life

insurance companies in this regard. Further to

improve the functioning of the life insurance

companies and to protect the interest of the policy


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holders a few important suggestions have been

recommended. (jacket)


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Why do you invest in life insurance


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LIMITATIONS:-

The research is confined to a certain parts duto time constraints and does not necessari

shows a pattern applicable to all of Country.

Some respondents were reluctant to divulgpersonal information which can affect the validit

of all responses.

In a rapidly changing industry, analysis on onday or in one segment can change very quickl

The environmental changes are vital to b

considered in order to assimilate the findings.

Availability of quality resource Sample selection and size Time factor


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Findings

Majority of the public uses television foentertainment or information gathering, followe

by newspaper and internet. Radio is seems to b

out dated in urban areas. But after revolution i

mobile technology and satellite radio it has agai

started growing.

Majority of the public goes behind brand nameThats why corporate advertising plays a vita

role in growing stage.

It is also found that insurance companies like tgive their ads in News/Business channel.

Liking an advertisement does not mean thapublic would like to buy that product.

If we talk about the private players, publics firschoice is ICICI Prudential followed by HDF

Standard Life and Reliance Life Insurance.


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RECOMMENDATIONS AND

SUGGESTIONS

Followings are the recommendations and the suggestions not only for the

Aviva life insurance company but also for other private life

insurance companies if the want to complete with

public/government life insurance companies.

1.Creating positive image:Private companies should try their level best to create positive and

favorable image in the minds of people i.e. in the minds of their target

customers.

2. Training and development of F.C.: Company must providetraining to their agents and financial so that the can satisfy

customer and doubts effectively.

3.Concern towards customers: Serious concern must be given to

the customers as in todays scenario it regarded as

Customer is a king. In formal words we can say that if can customers

more loyal towards the company.


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4. Agency holder must be well educated: The Company shouldgive agency to that person who is well educated and can convince

the customer b handling his queries and doubts.

5.Co-operation with agents and branch managers:

The Company must full co-operate with branch managers and agents.

6. financial consultants and agents to motivate themand to solve grievances if there are any.

Availability of branch offices: There

must be the branch offices in each20-30 Km.

areas;


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7. Efficient management: The management appointed must be thatmuch capable that it can control the whole team

and improve the goodwill and image of the company.

8. Sales promotion and marketing:The marketing department must be so aggressive that it can have a close

watch on the competitors activities. Not only this but also it must take care

of the need and wants of the customers also.

9. Incentive schemes and permanency in job: There must begood incentive schemes to be designed as these can acts as good

motivators

for the agents. The scheme of permanent job placement must be introduce

for those F.C.

and agents who have shown extra ordinary performance.

10.Solution of Grievances: There must regular meetings with the


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CONCLUSION

Life insurance Corporation has completed

more than three decades and thats where

counts, inters of brand name, different

number of policies for differed class and

age group of customers.

Life Insurance has today become a mainstay of

any market economy since it offers plenty of

scope for garnering large sums of money for

long periods of time. A wellregulated Life

Insurance industry which moves with the times

by offering its customers tailor made products

to satisfy their financial needs is, therefore,

essential if we desire to progress towards a

worry free futureThe Private players are on the way, but

they need a lot of time investment for

creating a favorable brand image.


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BIBLIOGRAPHY

Marketing Managementby Philip Kotler, PearsonEducation 2nd ed.

Consumer Behaviorby Leon G.Schiffman, Prentice-HallIndia 8th ed.

IRDA Journal ICICI Prudential Company magazines Newspaper and Business magazines

WEBSITES

www.iciciprulife.com www.google.co.in/indian insurance industry www.irdaindia.org
http://www.iciciprulife.com/http://www.iciciprulife.com/http://www.google.co.in/indian%20insurance%20industryhttp://www.google.co.in/indian%20insurance%20industryhttp://www.irdaindia.org/http://www.irdaindia.org/http://www.irdaindia.org/http://www.google.co.in/indian%20insurance%20industryhttp://www.iciciprulife.com/


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QUESTIONNAIRE

Dear Sir/Madam,

I am a student of university institute of management,

conducting a marketing survey onproduct development

strategy of life insurance product, IN jabalpur CITY. I

request you to fill this questionnaire & I assure that this

data will be used only for study purpose & it will be keptconfidential.

1. Name _________________________________

2. Address __________________________________________________________________

_________________________________

3. Age

a.Less than 25 c. 35-45b.2535 d. 45 and above

4. Qualification


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a.Graduate c. Diplomab.Postgraduate d. Other discipline

5. Occupation

a. Business c. Job holderb. Professional d. Other

6. What is your average annual income?

a. Up to 1 lakhb. 1 lakh to 3 lakhsc. 3 lakhs to 5 lakhsd. 5 lakhs and more

7. Your family size

a. Below 5 membersb. 510 membersc. Above 10 members


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7. According to you life insurance is,a. A tax saving planb. A saving scheme with good returnc. A financial security for the familyd. Risk coveragee. All the above

8. Have you taken any life insurance product of ICICIPrudential Life insurance?

YES NO

If yes

9.Which are in these?a. Unit gain planb. Invest gain planc. Whole life pland.

Children plane. Pension planf. Others __________________

10. Are you aware of the benefits in your policy?

Yes No

If yes what are they?

Sum assuredAdditional benefitsMaturity date


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Risk coverage

11. According to you what are the disadvantages in an

insurance plan?

LapsationLiquidityFixed termUnable to decide your premiumUnable to decide the sum assuredHigh risk coverage at high premiumsOther disadvantages

12. In which of the following would you like to invest?

Equity fundDebt fundBalanced fundCash fundMutual fundRecurring deposits

13. Any suggestion for ICICI Prudential Life Insurance

______________________________________________________

______________________________________________________

Thank you for sparing your valuable time


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Documents

Introduction of Life Insurance