P RE S E NT E D BY: ABHA G UP TA P G DM- I B RO L L NO - 1

A Summer Training project on

Comparative study on HDFC life product with other insurance companies

 

Overview

HDFC Life Insurance Established on 14th August 2000.

HDFC Life Insurance Co. Ltd. is a joint venture between Housing Development

Finance Corporation Limited (HDFC Limited) -India's leading housing finance

institution - and a Group Company of the Standard Life, that is a world-renowned

provider of financial services

HDFC Life has about 568 branches and is present in over 700 cities and towns.

It has almost 2, 00,000 financial consultants that meet various customer needs

such as protection, pension, savings, investments and health.

HDFC life products1. Protection Plans2. Retirement Plans3. Health Plans

4. Savings & Investment Plans HDFC Life Sampoorn Samridhi Insurance Plan HDFC Endowment Assurance Plan HDFC SL Crest HDFC SL ProGrowth Super II HDFC SL ProGrowth Flexi HDFC SL ProGrowth Maximiser HDFC SL New Money Back Plan HDFC Assurance Plan HDFC Savings Assurance Plan Endowment Gain Insurance Plan Classic Assure Insurance Plan

Comparative study of HDFC life product

With other insurance companies

ULIP PlansCompany Min Premium Entry Age  Partial Withdrawal Surrender

PremiumPaying Term

HDFC SL Crest 30,000 14-55 Yrs 5 Yrs 5 Yrs 5 Yrs

LifeLink Wealth SP Plan

40,000 0-60 Yrs 5 Yrs 5 Yrs 10-30 Yrs

Secure Invest Insurance

50,000 0-60 Yrs 6 Yrs 5 Yrs 30 Yrs

Future Protect Plan 20,000 7-60 Yrs 5 Yrs 5 Yrs 15-40 Yrs.

Saral Maha Anand 15,000 18-55 Yrs 6 Yrs 5 Yrs 10-20 Yrs

Met Smart Platinum

30,000

(Annual Mode)7-70 Yrs 2 Yrs 5 Yrs

5 yrs/ 10yrs/ entire

term of the policy

Advantage Insurance Plan

25,000 8-60 Yrs 5 Yrs 5 Yrs 5-7 Yrs

Select Insurance Plan

18,000 7-60 Yrs. 5 Yrs. 5 Yrs. 10-20 Yrs.

Prospering Life 48,000 8-55 Yrs 5 Yrs 5 Yrs 16 or 20 Yrs

Life Bond Advantage

50,000 2-65 Yrs 5 Yrs 5 Yrs Single

Ujjwal Life 30,000 7-65 Yrs 5 Yrs 5 Yrs 10 Yrs

Smart Save Plan 12,000 5-60 Yrs 5 Yrs 5 Yrs 15-25 Yrs.

Utkarsh Jeevan Bima

20,000 12-55 Yrs 3 Yrs 5 Yrs 8-20 Yrs

OBJECTIVES OF THE STUDIES

  To analysis the product details of HDFC Standard life Insurance Company limited and

other insurance companies.

To find ‘Points of Parity’ and ‘Points of Difference’ of HDFC Standard Life Insurance

Company Limited and other insurance companies.

To find out factors that influence customers to purchase insurance policies and give

suggestions for further improvement.

Comparative study of various insurance players in the market

MARKETING PROBLEMSSome of the main problems in marketing the policies are:

Large amount of competition (18 players in the market)

Other brands are well advertised and have higher recall value

LIC is considered a safer option

Face competition from banks and mutual funds

High premium policies are difficult to market

Incorrect perception about insurance

Customers get defensive if you could call

Short term plans are available only at large premium

Customers do not have risk appetite to invest in shares

Some prospects have already invested and are not interested in further

investments

Consumers don’t want to undertake medical examinations

Large amount of documentation

SUGGESTIONS FOR IMPROVEMENT

Advertise about the company and its products – it motivates individuals to purchase insurance

Create a positive perception about insurance

Speak about the good features a plan offers like high returns, life cover, tax benefits, indexation, and accident

cover

While prospecting Customers

Try to sell the product/plan which the consumer requires and not the plan where the advisors benefit is higher

Improve the efficiency in operations

Bring out policies with small premiums payable for short periods of time – Rs. 5000 – Rs. 10000 per annum for 10

Years

Attract the youth of India with higher returns on investment as returns are the motivating factor which influence

Purchase of insurance

Promote insurance in colleges and corporate houses

Should have partial withdrawals from the first year onwards

Tap the rural market where there is large potential Diversify product portfolio

Make products more straight forward – reduce complexities

Conclusion

HDFC Standard Life insurance is the oldest life insurance company in the world. It has businesses spread out across the globe. It was registered on 23rd December2000. It currently ranks number 4 amongst the insurers in India (Source: annual premium provided by the company)

The company faces a large amount of competition. To sustain itself it must promote its products through advertising and improve its selling techniques. Consumers must be aware of the new plans available at HDFC SLIC. The medium of advertising used could be television since most of its competitors use this tool to promote their products

The unit linked concept must be specifically promoted. The general perception of life insurance has to change in India before progress is made in this field. People should not be afraid to invest money in insurance and must use it as an effective tool for tax planning and long term savings.

HDFC SLIC could tap the rural markets with cheaper products and smaller policy terms. There are individuals who are willing to pay small amounts as premium but the plans do not accept premiums below a certain amount. It was usually found that a large number of males were insured compared to females. Individuals below the age of 30 (mostly male) were interested in investment plans. This was a general conclusion drawn during prospecting clients.