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PROJECT REPORT On

ANALYTICAL STUDY IN INSURANCE SECTOR WITH RESPECT TO ICICI PRUDENTIAL LIFE INSURANCE

Submitted to Rashtrasant Tukadoji Maharaj Nagpur University in partial fulfillment of MASTER OF BUSINESS ADMINISTRATION (MBA) specialization in Financial Management Submitted by GAYATRI S. KHANDELWAL Guided by XYZ

2010-2012
CHAITANYA BAHU UDDESHIYA SANSTHAS INSTITUTE OF MANAGEMENT & RESEARCH KHAPARKHEDA, NAGPUR

CERTIFICATE

This is to certify that GAYATRI KHANDELWAL has completed his project work entitled ANALYTICAL STUDY IN INSURANCE SECTOR WITH RESPECT TO ICICI PRUDENTIAL LIFE INSURANCE pursuing two years full time course of master of business administration under the faculty of commerce of rtm nagpur university.

This project work is his own work and sufficient high standard to submit to the university in partial fulfillment of mba degree.

DIRECTOR DR. RAVINDRA AHER

UNDERTAKING

I, GAYATRI KHANDELWAL hereby undertake that the project work entitled ANALYTICAL STUDY IN INSURANCE SECTOR WITH RESPECT TO ICICI PRUDENTIAL LIFE INSURANCE Is my own work and to the best of my knowledge and belief is not submitted to any university for any degree.

Signature

GAYATRI S. KHANDELWAL (C.B.S. I.M.R.)

ACKNOWLEDGEMENT

I express my sincere thanks to Dr Ravindra Aher, Director for this continuous guidance for this project work. My thanks for also to XYZ for guidance and co-operation for this project work. I am grateful to all the staff of CBS for providing necessary secondary data and other information. I am also thankful to all those who have directly or indirectly necessary inputs for this project work. Last but not least, I am thankful to XYZ for his DTP work of this project.

(GAYATRI S. KHANDELWAL)

INDEX
SR. NO.

NAME OF CHAPTER INTRODUCTION COMPANY PROFILE OBJECTIVES HYPOTHESIS RESEARCH METHODOLOGY DATA COLLECTION DATA ANALYSIS CONCLUSION RECOMMENDATIONS BIBLIOGRAPHY APPENDIX

PAGE NO.
6 21 22 33 34 35 36 37 38 - 45 46 51 52 53 54 - 55 56 - 57 58 - 59 60 - 63

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

CHAPTER 1 INTRODUCTION

INTRODUCTION This report is the result of the project work at ICICI PRUDENTIAL LIFE INSURANCE PRIVATE COMPANY LIMITED. ICICI is well known throughout India, first as ICICI BANK then as ICICI PRUDENTIAL LIFE INSURANCE. ICICI PRUDENTIAL LIFE INSURANCE, is a joint venture between ICICI BANK and Prudential plc of UK. ICICI PRUDENTIAL is the leading provider of the best insurance policies, its product range includes savings plan, child plans, marked linked plans, protection plans, retirement plans, investment plans, and group plans and tailor a flexible solution to meet the customers changing needs at every stage of life.

Since its inception in 2000, it is a continuous achiever winning various awards sponsored by ORG-MARG, OUTLOOK MONEY. The company is also proud to have won silver at EFFIES 2003 for its Retire from work not life campaign. No doubt ICICI PRUDENTIAL is the No 1 Company in Private Life Insurance market, holding a highest market share of 33% according to the recent report of Private Life Insurers.

The company collects premium from investors and invests that money in various financial instruments viz Equity shares, the company for its growth retains Debentures and part
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of that money. Thus as a part of my project work I have taken the topic as Investment Pattern Of Individuals In Different Financial Instruments which means, a study on how much an individual can invest towards insurance compared to other Financial Instruments like Mutual Fund,NSC,Post Office,Kisan Vikas Patra. According to the survey conducted most of the people are interested in taking insurance policies. Among the different kind of products childrens plan policies and life time policies are the hottest selling products. Conducting seminars and categorizing the market into different segments can create brand and product awareness in the minds of the consumers.

Further I request the reader to go through the project report so that they can get a clear picture of the functioning of ICICI PRUDENTIAL LIFE INSURANCE.

INDUSTRIAL BACKGROUND OF THE STUDY GROWTH AND DEVELOPMENT OF INSURANCE INDUSTRY

The 19th century saw huge developments in the field of insurance, with newer products being devised to meet the growing needs of urbanization and industrialization.

In 1835, The Famous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations.

There

were

more

offshoots

of

the

process

of

industrialization. In 1897, the British government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents. With the advent of the automobile, public liability insurance, this first made its appearance in the 1880s, gained importance and acceptance. In the 19th century, many societies were founded to insure the life and health of their members. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies.
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WHAT IS INSURANCE

1. Promise of reimbursement paid to people or companies so concerned about hazards that they have made prepayments to an insurance company.

2. Insurance is a system to alleviate financial loss from one entity to another. 3. A contract in which one party agrees to pay for another partys financial loss resulting from a specified event for e.g.: a collision,

theft, or storm, damage lease agreements generally require that you maintain vehicle collision and comprehensive insurance as well as liability insurance for bodily injury and property damage.

4. Protection against a specific loss over a period of time that is secured by the payment of a regularly scheduled premium.

5. A contract that provides compensation for specific loss in exchange for a periodic payment. An individual contract is known as an insurance policy and the periodic payment is known as an insurance premium.

The business of insurance is related to the protection of the economic value of assets. Every asset is expected to last for a certain period of time during which it will perform. After that the benefit may not be available. There is a lifetime for a machine in a factory, a human being, or a vehicle. The owner is aware of this and he can so manage his
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affairs that by the end of that period or lifetime, a substitute is made available. Thus, he makes sure that the value or income is not lost. An accident or some other unfortunate event may destroy it or make it non functional. In that case, the owner and those driving benefits there from, would be deprived of the benefit and the planned would not have been ready.

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TYPES OF INSURANCE

1. General Insurance 2. Non Life Insurance Market 3. Re-Insurance Business 4. Life Insurance Market

NEED FOR INSURANCE

1. To provide protection against risks due to accidents, loss, death etc., 2. Insurance becomes important due to uncertainty of risks. 3. It provides financial security for individuals. 4. Insurance helps to secure the assets & reduce the risks. 5. Insurance helps in providing Tax relief benefits & encourages long-term savings.

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BENEFITS OF INSURANCE

1. Protection 2. Long term saving 3. Liquidity 4. 5. Tax benefit Insurance encourages and forces thrift.

6. Easy settlement and protection against creditor. 7. Administering the legacy for beneficiaries 8. Ready marketability and suitability for quick borrowings.

INSURANCE REGULATORY AND DEVELOPMENT ACT


On the recommendation of Malhotra committee, an Insurance Regulatory Development Act (IRDA) passed by Indian parliament in 1993.

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PRESENT STATUS OF INSURANCE INDUSTRY


Note: The list of foreign players entering the Indian Insurance sector and their Indian partners:

Indian Partner

Foreign Insurer

Specialization Present Status

Aditya Birla Group Kotak Mahindra Finance HDFC

Sun Life, Canada Old Mutual, South Africa

Life

Received License

Life

Received License

Standard Life, UK

Life

Received License, Commences Operation

Reliance

No Foreign Alliance

Life, Non-Life and Health

Received License for Non-Life

ICICI

Prudential, UK

Life

Received License, Commences Operation

ICICI

Lombard, Canada
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Non-Life

Not applied

Max India

New York Life, USA

Life

Received License

Sundaram

Royal & Sun Alliance Plc, UK

Non-Life

Received License

IFFCO

Tokyo Marine, Japan

Non-Life

Received License

Tata Group

AIG, USA

Life and Non-Life

Received License Applied for License

Vysya Bank

ING Insurance, Netherlands

Life

Hero Group

Zurich, Switzerland

Life

Not Applied

Cholamandalam Group HindustanTimes Dabur

Undecided

Life

Not Applied

Undecided

Life

Not Applied

CGNU Life, UK

Life

Not Applied

Bajaj Auto

Allianz

Non Life

IRDA Seeks more

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information Undecided Sanmar Group Metlife, USA AMP, Australia SBI Cardiff, France S Kumars, J&K Undisclosed Bank Corporation Bank Undisclosed Aegon, Netherlands Undisclosed Cigna, USA Life and Pensions Life and Health Undisclosed Chubb, USA Property & Casualty Undisclosed Yasuda Marine and Fire, Japan Undisclosed Mitsui Marine and Fire Undisclosed Nationwide, USA
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Life Life

Not Applied Not Applied

Life

Not Applied

Non-Life

Finalizing Partner

Undisclosed

Life

Finalizing Partner Finalizing Partner Finalizing Partner Finalizing Partner Finalizing Partner

Non-Life

Non-Life

Finalizing Partner

Life and Pensions

Finalizing Partner

Citibank, India

Undecided

Non-Life

Finalizing Partner

Undisclosed

GE Capital Services International, USA

Life

Finalizing Partner

Videocon International

Talks on with BNP Paribas, AXA, France

Non-Life

Finalizing Partner

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STRUCTURE OF INSURANCE COMPANY

EXECU TIVE/ COMMI TTEE BOARD

OPERATI ONS -RISK EVALUAT ION PRODUC T DESIGN UNDERW RITING -CLAIM DISBURS AL

MARKETI NG -SELLING CUSTOM ER SERVICIN G PREMIUM

FINANCE -FUND MANAGE MENT INVESTM ENT PORTFOL IO

ADMINIST RATION SUPPOR T FUNCTIO NS

LOSS ASSESSO RS & SURVEY ORS

INDIVIDU AL AGENTS AND ADVISOR S

CORPOR ATE AGENTS

BROKER S

PARTNER BANKS (BANCAS SURANC E CHANNEL )

FUND MANAGE RS

THIRD PARY ADMINIST RATORS

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INSURANCE IN INDIA
Life insurance, in its pristine form, evolved out of a sense of co-operation within the community that was present even at the dawn of history. The Sanskrit term yogakshema, which means "well-being, is present in the Rig Veda and it is used in the context of some form of insurance in vogue during the Aryan times. There are references in Kautilyas Arthashastra to some kind of social security system for the welfare of the subjects. Later on, the Indian joint family system too fulfilled the need for security. Insurance industries in India have a long history. Life insurance came in India from UK in 1818 with Oriental Life Insurance Company. Then insurance started taking a new shape in 1870 with the life insurance being transacted by an English company was the Bombay Mutual Assurance Society Ltd, formed in 1879,this was followed by the Oriental Life Assurance Co in 1874, The Bharat in 1896 and The Empire Of India in 1897. As these companies grew, the government began to exercise control on them. The Insurance Act was passed in 1912, followed by a detailed and amended Insurance Act of 1938 that looked into investments, expenditure and management of these companies' funds. By the mid-1950s, there were around 170 insurance companies and 80 provident fund societies in the country's life insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companies.

As a result, the government decided to nationalize the life assurance business in India. Many factors combined together to prompt the then Government to nationalize the life insurance industry in 1956 to form the Life Insurance Corporation of India.
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WHAT IS LIFE INSURANCE?

Life insurance is universally acknowledged to be an institution, which eliminates risk, substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of the death of the bread winner. Life insurance in short is concerned with two hazards that stand across the life path of every person; that of dying prematurely leaving a dependent family to fend for itself and that of living to old age without visible means of support.

Insurance is a protection against a financial loss arising on the happening of an unexpected event. Insurance companies collect premium to provide for this protection. A loss is paid out of this premium collected from the insuring public. The insurance company acts as a trustee to the amount collected through premium.

Life insurance is a written contract between the insured and the insurer that provides for the payment of the insured sum on the date of the maturity of the contract or on the unfortunate death of the insured, whichever occurs earlier.

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LIFE INSURANCE AN OVERVIEW

Insurance is an economic device whereby the individual can substitute a small relative cost for a large uncertain financial loss that will have to be borne, if insurance is not available. The primary function of insurance is the creation of counter balance for risk, which means security.

Insurance is not necessarily an investment from which one expects to get ones money back. Nor is it gambling. A gambler takes risks, while insurance offers protection against risks that already exist. Insurance is a way to share risk with others.

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CHAPTER 2 COMPANY PROFILE

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COMPANY PROFILE
ORIGIN OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of June 30, 2009) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the period April 1, 2009 to June 30, 2009, the company has garnered total received premium of Rs 807 crores and has underwritten over 9 million policies since inception. The company has assets held over Rs. 43,000 crores as on June 30, 2009.

ICICI Prudential Life is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or claims.

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For the past eight years, ICICI Prudential Life has retained its leadership position in the life insurance industry with a wide range of flexible products that meet the needs of the Indian customer at every step in life.

About the Promoters

About ICICI Bank: ICICI Bank Ltd (NYSE:IBN) is India's largest private sector bank and the second largest bank in the country with consolidated total assets of about US$ 102 billion as of June 30, 2009. ICICI Banks subsidiaries include Indias leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Banks presence currently spans 19 countries, including India.

Prudential Plc
Established in London in 1848, Prudential plc, through its businesses in the UK, Europe, US, Asia and the Middle East, provides retail financial services products and services to more than 21 million customers, policyholder and unit holders and manages over 249 billion of funds worldwide (as of March, 2009). In Asia, Prudential is the leading Europe-based life insurer with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset management companies in terms of overall assets sourced in Asia exjapan, with 36.8 billion funds under management (as of March, 2009) and operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.
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Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad.

Ms. Chanda D. Kocher, Chairperson Mr. N. S. Kannan, Director Mr. K. Ramkumar, Director Mr. Barry Stowe, Director Mr. Adrian OConnor, Director Mr. Keki Dadiseth, Independent Director Prof. Marti G. Subrahmanyam, Independent Director Ms. Rama Bijapurkar, Independent Director Mr. Vinod Kumar Dhall, Independent Direct Mr. V. Vaidyanathan, Managing Director & CEO

Management Team
The ICICI Prudential Life Insurance Company Limited Management team comprises reputed people from the finance industry both from India and abroad.

Mr.V.Vaidyanathan, Managing Director & CEO Ms. Anita Pai, Executive Vice President - Customer Service, Technology & Marketing Dr. Avijit Chatterjee, Appointed Actuary Mr. Puneet Nanda, Executive Vice President

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Vision & Values


Vision :

"To make ICICI Prudential the dominant life and pension player built on trust by world class people and service"

Values :
Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success.

PRESENT STATUS & FUTURE PLANS OF ICICI PRUDENTIAL

ICICI PRUDENTIAL STRENGTH IN NUMBERS

1. 2. 3. 4. 5. 6.

14 products 7 regular premium products 7 single premium products 6-riders- (tax benefit sec 80 d) Well positioned to target the mass and the affluent segments. Largest bank assurance set up in the country today with more than 4,000 Policies issued per month.

7.

First life insurer to operationally tie-up with a public sector bank.

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Investment philosophy & strategies

As a life insurance company, we know that our customers trust their monies with us for the long-term, and hope to use these funds to protect and achieve the dreams and aspirations of their families. With this in mind, our investment focus is to ensure long term Safety, Stability and Profitability of our customers funds. Our aim is to achieve superior returns for a given level of risk. In order to meet this objective, we have developed an investment framework that is based on a sound investment process coupled with a rigorous and sophisticated risk management strategy.

Investment process

Our investment management process relies on analytics & research to achieve positive risk-adjusted returns in each product category, be it for child plans, retirement solutions or other endowment-related funds. We clearly define an asset allocation strategy that matches the risk characteristics of the corresponding liability, or, put simply, we ensure that the promise we have made to the customer will be met.

The investment decision-making process has three tiers, each of which has varying degrees of discretion and considers detailed research in order to decide the best portfolio composition. The emphasis is to segregate the decision to buy a scrip from the process of actually buying it, and thereby institutionalize decision-making.

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Investment decisions

Debt investments target a mix of government and corporate bonds. The investment process is backed by intense research and analysis and comprises qualitative as well as quantitative measures. We make calls after carefully studying all the factors that influence interest rate direction, such as RBI policy and stance, inflation, growth of money supply, credit off-take, fiscal deficit, global interest rate scenario and market sentiment. Detailed research reports obtained from credit rating agencies form the primary basis for investment decisions.

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PRODUCT PROFILE OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY PROTECTION PLANS

ICICI Prudential Life Insurance offers LifeGuard - a set of pure protection plans. Choose from amongst three different product structures to insure your life and provide total security to your family, at a very affordable cost.

Level Term Assurance with return of premium On death the entire sum assured will be paid. On maturity, all the premiums paid will be returned.

Level Term Assurance without return of premium On death the entire sum assured will be paid. No survival or maturity benefits.

Level Term Assurance - Single premium On death the entire sum assured will be paid. No survival or maturity benefits

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SMART KID EDUCATION PLANS

As a responsible parent, you will always strive to ensure a hassle-free, successful life for your child. However, life is full of uncertainties and even the best-laid plans can go wrong. Heres how you can give your child a 100% safe and assured tomorrow, whatever the uncertainties. Smart Kid is especially designed to provide flexibility and safeguard your childs future education and lifestyle, taking all possibilities into account. Choose from amongst a basket of 4 plans:

Smart Kid regular premium

Smart Kid unit-linked regular premium

Smart Kid unit-linked regular premium II

Smart Kid unit-linked single premium II

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SAVINGS PLAN

ICICI Prudential offers a variety of policies that give you the benefits of protection and the opportunity to save for important assets or events, like a home, a car or a wedding.

PREMIER LIFE
A market linked an insurance plan that meets your Investment and Protection needs.

INVESTMENT PLANS

LifeLink II is a unique plan that combines the security of a life insurance policy with the opportunity of enjoying high returns on your investments, without the market risks compromising on the protection of your family!
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RETIREMENT PLAN

Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier generations. For you, this increase will mean a longer retirement life, stretching into a couple of decades. ICICI Prudential presents Retirement Solutions that combine the best of insurance and investment. These solutions are developed to ensure your peace of mind for the years to come.

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MARKET SHARE OF ICICI PRUDENTIAL AMONG PRIVATE PLAYERS

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CHAPTER 3 OBJECTIVES

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OBJECTIVES OF THE STUDY

The study undertaken in ICICI Prudential Life Insurance is to achieve the following objectives

1. To study the customer preference towards ICICI Prudential Life Insurance.

2. Study of Insurance sector as an investment opportunity.

3. To study the various insurance plans provided by ICICI Prudential Life Insurance.

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CHAPTER 4 HYPOTHESIS

36

HYPOTHESIS

1. Children plans policies are mostly prefered by the customers.

2. People prefere to take insurance policies because they get tax benefits.

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CHAPTER 5 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

38

Research is essentially a logical and an organized enquiry seeking facts through objective verifiable methods in order to discover the relation among them and to refer from the board principles or laws. It is really a method of critical thinking.

Research may be defined as a systematic and objective analysis and recording of controlled observations that may lead to the development of generalization of principles or theories resulting in predicting and possibly ultimate control of events.

Methodology is often used in a narrow sense to refer to methods, technology or tools employed for the collection data as well as its processing. This is also used sometimes to designate data collection to arrive at the conclusion. Infects, it describes that what should have been done. It provides answers to some of the major questions while search like what must be done, how it will be employed, how sources of data will be analyzed to arrive at the conclusion.

For systematic research scientific approach is necessary. It is therefore essential to follow systematic methodology to arrive at a proper conclusion.

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The procedures involved in the concept of research methodology are:-

1) Selection of subject. 2) Selection of project title. 3) Selection of time period. 4) Collection of data. 5) Reliability of data. 6) Analysis of data. 7) Reporting.

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COLLECTION OF DATA :

Collection of data is of immense value for any research work. However the method of selection for collection of data is

depended on various factors like purpose of research, sources of data, period of research, capacity to spend on research etc. There are two basic sources of data collection i.e. Primary Data and Secondary Data.

1. Primary Data 2. Secondary Data

1. PRIMARY DATA:

If a researcher collects data himself called primary data. Thus it is original and first hand information available for research work.

2.SECONDARY DATA:

If data is collected, tabulated and presented by someone else is called secondary data. Thus the secondary data is second hand information available for research work. There are some sources of primary data and secondary data.

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1.

THE SOURCES OF PRIMARY DATA Direct Personal Investigation Interview Indirect Method Indirect Oral Investigation Information Received Through Local Agents

2.

THE SOURCES OF SECONDARY DATA Autobiography Books Research Reports Journals Magazines Websites

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METHODOLOGY OF ANALYSIS

Data which has been collected through various sources has to proceed and analyzed the accepted relevant scientific method are used for analyzed processing is done by different graphs, which clearly show the finding and half us to understand thing is more better way different table and comparative chart also used for analyzed and the most

important ways was case study and illustration my project is a financial project ICICI PRUDENTIAL LIFE INSURANCE unit so I have all so cases or analysis different type of illustration are use to understand the concept more easily.

1. ANALYSIS:

The data collected has to processed and analysis is done in accordance with the acceptable relevant scientific method processing of the data covers editing loading classification.

2. EDITING:

Editing is a routine task it is process of examining collected data especially in survey to detest and elimate error editing endures completeness accuracy and uniformity.

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3. CODING:
It is process of assign numerical or other symbol to symbol to answer so that response can be part in a limited number of categories.

4. CLASSIFICATION:

The large volume of data collected for a search study has to be reduced in homogenous gropes for getting a meaningful relationship. This is known as classification of data. It condense data in such way that similarities and dissimilarities can easily be apprehended, so as to facilities comparison. Classification of data collected can be categorized as by geographical grouping chronological grouping qualitative and quantitative groupings.

5. TABULATION:

It is a process of summarizing row data and displaying the same in concept from for further analysis. The tabulation can be simplified in rows and columns; it conserves space and minimizes exploratory and descriptive statements. Tabulation facilities the process of comparison. It assists in various statistical computations. It simplifies complex data, and gives identify to data and reveals pattern.

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6. GRAPHIC PRESENTATION:

Graphic presentation of statistical data gives a pictorial effect. It enables one to present data in simple, clear and effective manner. It shows what is happening and what is likely to take place just as quickly as the age is capable of working. A graph is a visual form of presentation. It provides an attractive and impressive view. It also provides easy comparison of two or more phenomena.

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CHAPTER 6 DATA COLLECTION

DATA COLLECTION
46

A survey was conducted on Investment Pattern Of Individuals In Different Financial Investments. The survey revealed as to how people respond to different kind of financial investments . A study on this Management Issue was done and subsequent observations, conclusions and suggestions were arrived. As we all know that as INDIAS per capita income is increasing at the same time peoples attention is increasing towards different type of investments and savings so that they can reap good benefits within a shorter period of time. People are becoming more and more aware about various saving and investment plans and how their tastes and preferences change depending upon the factors like, age, income, interest, returns on the investment made, and the period of investment, loss if any. Thus as part of my project work I have chosen the topic Investment pattern of individuals in different financial instruments. A survey was conducted by directly contacting people asking them to fill them the questionnaire. The questionnaire contained few questions on how people invest in various investment plans and what are the various options of investments. The survey was done choosing different segments of investors viz, IT professionals, and service people working in banks, businessmen, professors and housewives. A copy of the questionnaire is attached with the appendix.

1.
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WHICH PATTERN OF INVESTMENT DO YOU CONSIDER IS SUITABLE FOR YOU?


90 80 70 60 50 40 30 20 10 0 80

75 65 50 Insurance Mutual funds NSC Kisan Vikas Patrika Post office

PERCENTAGE OF INVESTMENTS

20

FINANCIAL INSTRUMENTS

The graph above reveals that investors among the different segments are interested in investing in insurance compared to other financial instruments.

WHAT DO YOU CONSIDER THE MOST IMPORTANT?


96 94 92 90 88 86 84 82 80 95

PERCENTAGE OF PREFERENCE

90 Guranteed Returns Safety Tax Benefit

85

1 PREFERENCES

2.

48

Investors opt for tax benefit followed by guaranteed returns followed by safety of their investment.

3.
WHICH INVESTMENT PATTERN YOU PREFER?
90 80 70 60 50 40 30 20 10 0 80 60 LONG TERM INVESTMENT SHORT TERM INVESTMENT

PERCENTAGE OF PREFERENCE OF INVESTMENT

1 TYPE OF INVESTMENT

Most investors prefer short term investment rather than long term investments.

4.
49

Given a figure as salary for investors assumption we can see that 80% of the investors are interested in investing Rs500 per month for life insurance followed by others.

5.
ARE YOU INTERESTED IN TAKING ANY INSURANCE POLICY IN THE NEAR FUTURE?
90 80 70 60 50 40 30 20 10 0
PERCENTAGE OF YES OR NO

80 60 YES NO

1/1/1900 YES OR NO

From the above figure we can see that 80% of the investors are likely to take an insurance policy in the near future.
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6.
WHAT KIND OF INSURANCE POLICIES ARE YOU LOOKING FOR?
100 90 70 60 60 40 20 0 TYPES OF POLICIES CHILDREN'S PLANS LIFE TIME INVESTMENT RETIREMENT POLICY

PERCENTAGE OF INVESTMENT IN POLICIES

80

From the above graph we can make out those childrens plans policies graps the attention of every investor followed by life time investment and retirement policies.

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CHAPTER 7 DATA ANALYSIS

52

The result of the survey is encouraging and excellent. There are very few people who are not interested in taking an insurance policy. Most of them are keenly interested in taking various kinds of policies.

1. People are not aware of different competitors in the market.

2. Many of the investors are not aware of the products and the rider benefits.

3. Few people are reluctant to take insurance policies.

4. Compared to other financial instruments like mutual funds, kisan vikas patrika, post office, NSC, insurance captures the market.

5. Many of them are interested in taking insurance policies.

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CHAPTER 8 CONCLUSIONS

CONCLUSIONS

54

1.

People take policies if they are given good knowledge about various products and their rider benefits.

2.

Differentiating one companys products with that of other companys products attracts customers.

3.

People prefer short-term policies compared to long term policies.

4.

People are ready to invest anywhere between Rs500-Rs1000 of their monthly income for insurance.

5.

Childrens plans followed by lifetime policies followed by retirement policies are the hottest selling products in insurance.

6.

Tax benefits followed by guaranteed returns followed by safety of investment are the most preferred ones by people.

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CHAPTER

RECOMMENDATIONS

RECOMMENDATIONS

56

1. Insurance companies can create campaigns to bring awareness about different insurance policies.

2. Media advertisements can also act as effective tool in selling insurance policies.

3. Segmenting

the

market

into

different

units

like

businessmen, doctors, engineers, housewives, can be helpful in capturing the market.

4. Conducting seminars on different products and their benefits can also bring Brand and product awareness.

5. We have seen that since insurance captures only 8% of the todays Indian market, there is great opportunity for ICICI Prudential to expand its market to the rural areas and of

bring awareness among the people about the concept insurance.

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CHAPTER 10 BIBLIOGRAPHY

BIBLIOGRAPHY

58

1.

LIFE INSURANCE-AFFILIATES OF INSURANCE

INSTITUTES

2.

HAND BOOK OF INSURANCE- N S TOOR by PUBLICATIONS NEW DELHI

SULTAN CHAND

www.iciciprulife.com

4. 5. 6.

www.yahoosearch.com www.google.com MANUALS AND BROUCHERS GIVEN BY THE ORGANIZATION

7.

INSURANCE AGENTS AND SURVEYORS- BY K S DORAI

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APPENDIX

ICICI PRUDENTIAL LIFE INSURANCE

60

A study on Investments Pattern Of Individuals In Different Financial Instruments

Name Age Occupation Address Email-id Phone no

: : : : : :

1 Which pattern of investment do you consider is suitable for you?

Insurance certificate

Mutual funds

National savings

Kisan Vikas Patra

Post office

2. What do you consider the most important in investments?

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1. Guaranteed Returns

2. Safety of investments

3. Tax Benefit

3. Lets assume that your monthly salary is 20,000 per month. In this amount how much can you invest for you and your near and dear ones Life Insurance

1.200 Per month

2.300 Per month

3.700 Per month

4.1000 Per month

5.1500 Per month

4. Are you interested in taking any Life Insurance policy in the near future?
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Yes

No

If yes then please specify the company name from which you wish to take insurance policy

5. What kind of policies are you looking for? 1. Childrens plan

2. Life Time investment

3. Retirement solutions

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Thank you

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