Summer Internship Project Report on “Potential Of
insurance company in Bhopal ”
Kotak Mahindra Old Mutual life insurance
BH2-M (BHOAPL) M.P
Prepared By: (AVNISH KUMAR PAL) (10GM020)
Company Guide (MANOJ PAL) (SALES MANAGER)
Faculty Guide MS.SHILPI GUPTA
The concepts learnt in academics are of no importance until they are practically applied. In today's world it is imperative for the students of any Post- Graduate course to keep pace with the changing technology innovations taking place across the world. In alignment with this, I prepared a Summer Report after my 1st year of PGDM.
I would like to express my sincere gratitude to Mr. KAMLESH YADAV (assistant branch manager) for giving me the opportunity to work with his esteemed organization. I would like to thanks MR. MANOJ PAL (Sales Manager) for giving me product knowledge and their valuable support throughout the project. It was very enriching and enlightening experience to work under their valuable guidance. Without their support this project would not have been possible
I would also like to thank my parents and friends those who have given their support & contribution, whenever required.
Finally and most important I would like to thank to faculty of IILM (Especially to MS shilpi Gupta) to provide me with such an opportunity that has enhanced my learning horizon. Last but not least, I thank the almighty, and may she stand with all of us.
The service industry is one of the fastest growing sectors in India today. The upcoming sectors which are really showing the graph towards upwards are - Telecom, Banking, and Insurance. These sectors really have a lot of responsibility towards the economy. Amongst the above-mentioned areas insurance is one sector, which took a lot of time in positioning itself. The insurance business of non-life companies was not much in problems but the major problem was with life insurance. Life Insurance Corporation of India had monopoly for more than 45 years, but the picture then was completely different. Previously people felt that “Insurance is only for classes not for masses” but now the picture is vice-versa. The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The formation of IRDA, entrance of private life insurance companies into India with one foreign partner, compulsory training of Insurance agents etc. developments started to take place. And this was the time when these companies started searching for proper channel partners who can help the organization in expanding its network and business in India. Channel partners are those who are going to be into direct selling of company‟s products
the insurance policies. They are the link between the customers and the management or company. These channel partners are people with different profiles. They are selected on some grounds like their network of people, their problem handling ability, convincing power and lot many things. The main idea behind company‟s Questionnaire Survey is to find out and analyze the proper profile that can be recruited by company as a channel partner. Company has been Chartered Accountants, Tax Consultants, Postal agents, Bank‟s Daily Collection Agents etc. the main idea behind targeting the above profile is strong client network which is really very important for an insurance company. This report includes the key private players in the insurance market such as ICICI Prudential, Kotak Life Insurance Bajaj Allianz, Birla Sun life, and TATA AIG. It also includes the leading competitors in the life insurance and general insurance segments along with their market shares.
INDEX TABLE 5
S.NO. 1. 2. 3. 4.
TOPICS INTRODUCTION COMPANY PRODUCT KOTAK LIFE INSURANCE SWOT ANALYSIS DATA INTERPRETATION OF SURVEY
Pg. no 7 8-9 9-10 GRAPH 11-20
ANALYSIS 5. 6. HISTORY SOME IMPORTANT MILESSYONE IN LIFE INSURANCE IN INDIA 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. LONG TERM FUND FOR INFRASTRUCTURE COMPANY PROFILE MISSION AND MANAGEMENT AREA OF BUSINESS RESARCH OF METHODOLOGY MARKETING RESARCH PROCESS DATA COLLECTION OBJECTIVE LIMITATION FINDING AND SUGGESTION CONCLUSION REFRENCES ANEXXURE 28 28 29 29 30 31 31 32 24 24 25-26 27 21-22 22-23
Introduction of company
Kotak Mahindra Old Mutual Life Insurance Ltd is a joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. A Company that combines its international strengths and local advantages to offer its customers a wide range of innovative life insurance products, helping them take important financial decisions at every stage in life and stay financially independent. The company covers over 3 million lives and is one of the fastest growing insurance companies in India. Kotak Mahindra is one of India's leading banking and financial services organisations, offering a wide range of financial services that encompass every sphere of life. From commercial banking, to car finance, to stock broking, to asset management, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates. The group has a net worth of Rs 10,060 cr. and has a distribution network through branches and franchisees across the country and offices in New York, San Francisco, London, Dubai, Mauritius and Singapore, servicing close to 8 million customer accounts. BUSINESS OF THE KOTAK MAHINDRA Monopoly of LIC has been broken to make Indian Insurance to change its face and pace to tap the market and to make the new challenges in it. Insurance in India is not about India only; it is an open sector for the private players. The name which you would see in Indian insurance market is something like: - BAJAJ (Indian company) + Allianz (foreign player), TATA (Indian company) + Aig (foreign player) Kotak Mahindra and so many like them. Companies now are tapping a lot of ways to capture the market and hence adopting different ways to hold the large portion of the market. About Insurance:Insurance may be defines as social device to protect the economic value of the Life and other assets. Under the plan of Insurance a group of people are brought together and their share of money is pooled to manage the loss suffered by any of them.
Insurance is a contract whereby in return of the payment of the premium by the insured the insurers pay the financial loss suffered by the insured as a result of the loss by the unforeseen events. The term “risk” is used to define the probability of loss.
Brief History of the Insurance Sector in India
The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Cooperative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business.
In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January 1956 that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long-term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 Crores of New Business in 1957 the corporation crossed 1000.00 Crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies. Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the corporate office. LIC‟s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC‟s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centers have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and
many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.
Some of the important milestones in the life Insurance businesses in India are:
1850 Non life insurance debuts with triton insurance company. 1870 Bombay mutual life assurance society is the first Indian owned life insurer 1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. In 1928 The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:
The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.
General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.
The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.
The General Insurance Business (Nationalization) Act,
Nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies‟ viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
Long term funds for Infrastructure
• For GDP to grow at 8 to 10%, qualitative improvement in infrastructure is essential. • Estimates of funds required for development of infrastructure vary widely. • An investment of 6, 19,600 crore is anticipated in the next 5 years IN India • Tenure of funding required for infrastructure normally ranges from 10 to 20 years. • Major portion of these funds are routed through debt/private equity participation
HISTORY OF OLD MUTUAL FUND
Old Mutual was established more than 150 years ago. Old mutual plc. is a world-class international financial service company. It owns the largest companies in the following Old Mutual was established more than 150 years ago. Old mutual plc. is a world-class international financial service company. It owns the largest companies in the following areas in South Africa. They are:
1. Life Insurance Company 2. Asset Management Company 3. Bank 4. Non-life insurance company It has been developed into an International financial services group whose activities are focused on asset gathering and asset management. The Old Mutual Group offers a diverse range of financial services in three principal geographies: South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization of approximately $6 billion and is a member of the elite FTSE 100 index. In the 2003 rankings of the World's 500 largest corporations by Fortune magazine. Old Mutual plc is an international long-term savings, protection and investment Group. Originating in South Africa in 1845, the Group provides life assurance, asset management, banking and general insurance to more than 15 million customers in Europe, the Americas, Africa and Asia. Old Mutual plc is listed on the London Stock Exchange and the Johannesburg Stock Exchange, among others. In the year ended 31 December 2010, the Group reported adjusted operating profit before tax of £1.5 billion (on an IFRS basis) and had £309 billion of funds under management, from core operations. among others. In the year ended 31 December 2010, the Group reported adjusted operating profit before tax of £1.5 billion (on an IFRS basis) and had £309 billion of funds under management, from core operations. OLD MUTUAL PLC Domain knowledge Technology Product innovation Training expertise Global perspective
CUSTOMER OF COMPANY If you have dependants and financial responsibilities towards them, then you certainly need insurance Having a family means dependants, which, in turn means financial commitments. Financial commitments come in the form of loans, children's education, medical expenses etc. Imagine what would happen if you were to lose your life suddenly or become disabled and cannot earn. Being insured in a situation like this is a
necessity. Imagine what would happen if you were to lose your life suddenly or become disabled and cannot earn. Being insured in a situation like this is a necessity. When you insure your life, in effect what you are doing is insuring your earning capacity. This guarantees that your dependants will be able to continue living without financial hardships even in case of your demise. Most insurance plans available today come with a savings element built into it. These policies help you plan not only for protection against death but also for a financially independent future, which would enable you to have a comfortable retirement. For example, Kotak Preferred Retirement Plans such as Kotak Retirement Income Plan and Kotak Capital Multiplier Plan. Tax benefits
The Tax exemption available under our insurance and pension policies are described below Under Sec.80C of the Income Tax Act Premiums paid upto maximum of Rs.1,00,000/- subject to maximum of 20% of Sum Assured under Endowment based plans & Unit linked Plans. Under Sec.80CCC of the Income Tax Act Premiums paid upto maximum of Rs. 1,00,000/ However, u/s.80 CCE, the aggregate amount of deduction under section 80C, section 80CCC, and section 80CCD shall not, in any case exceed Rs. 1 lakh.
Awards and achievement
Kotak Mahindra Group they take a client-centric view and constantly innovate to provide you with the best of services and infrastructure. We have regularly received accolades that stand testimony to our success in this endeavour. Some of our recent achievements are BankingICAI Award Excellence in Financial Reporting under Category 1 - Banking Sector for the year ending 31st March, 2010
Asia money Best Local Cash Management Bank 2010 IDG India Kotak won the CIO 100 'The Agile 100' award 2010 IDRBT Banking Technology Excellence Awards Best Bank Award in IT Framework and Governance Among Other Banks' - 2009 Banking Technology Award for IT Governance and Value Delivery, 2008 IR Global Rankings Best Corporate Governance Practices - Ranked among the top 5 companies in Asia Pacific, 2009
Finance Asia Best Private Bank in India, for Wealth Management business, 2009 Kotak Royal Signature Credit Card Was chosen "Product of the Year" in a survey conducted by Nielsen in 2009 IBA Banking Technology Awards Best Customer Relationship Achievement - Winner 2008 & 2009 Best overall winner, 2007 Best IT Team of the Year, 4 years in a row from 2006 to 2009 Best IT Security Policies & Practices, 2007
Euromoney Best Private Banking Services (overall), 2009 Emerson Uptime Champion Awards Technology Senate Emerson Uptime Championship Award in the BFSI category, 2008
INSURANCE OutlookMoney Kotak Platinum Advantage Plan - Ranked 1st in Type II ULIP category, 2008 Kotak Long Life Wealth Plus Plans - Ranked 4th in the Type I ULIPs category STRUCTURE OF INSURANCE INDUSTRY: Historical Perspective (i) Prior to 1956 242 companies operating (ii) 1956 - 2001 Nationalization – LIC monopoly (iii) 2001 -- Opened up sector
• (a) LIC – Fully owned by Government (b) Postal Life Insurance PRIVAE SECTOR INDUSTRY 1. Bajaj Allianz Life Insurance Co. Ltd. 2. Birla Sun Life Insurance Co. Ltd. (BSLI) 3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD LIFE) 4. ICICI Prudential Life Insurance Co. Ltd. (ICICI PRU) 5. ING Vysya Life Insurance Co. Ltd. (ING VYSYA) 6. Max New York Life Insurance Co. Ltd. (MNYL) 7. MetLife India Insurance Co. Pvt. Ltd. (METLIFE) 8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd. 9. SBI Life Insurance Co. Ltd. (SBI LIFE)
10. TATA AIG Life Insurance Co. Ltd. (TATA AIG) 11. Reliance Life Insurance 12. Aviva Life Insurance Co. Pvt. Ltd. (AVIVA)
Kotak Term Assurance Plan Kotak Preferred Term Plan
Kotak Endowment Plan Kotak Money Back Plan Kotak Child Advantage Plan Kotak Capital Multiplier Plan Kotak Retirement Income Plan
Unit Linked Plans
Kotak Retirement Income Plan (Unit-linked) Kotak Single Investment Plan Kotak secure invest Head start child plan
Employee Benefits Kotak Term Grouplan Kotak Credit-Term Grouplan Kotak Complete Cover Grouplan
Kotak Gratuity Grouplan
Kotak Superannuation Group Plan
“At Kotak Life Insurance, we aim to help customers take important financial decisions at every stage in life by offering them a wide range Of innovative life insurance products, to make them financially independent.”
MR. UDAY KOTAK is the CEO of the company.
Other Top Management persons are as follows:Mr. Gaurang Shah (Managing Director)
Mr. Gaurang Shah is the Managing Director of Kotak Mahindra Old Mutual Life Insurance Limited . Mr. Gaurang Shah is a Chartered Accountant and a Cost and Works Accountant. He has also done his Company Secretary ship from the Institute of Company Secretaries of India. Mr. Gaurang Shah has been with the Kotak Group for the past eight years where he has held different positions of great responsibility and juggled multiple tasks effectively. His cumulative experience, primarily in financial services, stands at over 21 years, several of those in building the retail finance
At Kotak Life Insurance, Mr. Shah will focus on developing new lines of businesses and leveraging the company's existing competencies and network to steer Kotak Life
Insurance on its ongoing growth path with even greater thrust. Mr. Shah has a commendable expertise in managing a large number of employees. Mr. Shah has been previously associated with Kotak Mahindra Primus since its inception and has contributed towards its growth to become a Rs.2000 Cr plus business. Before coming to Kotak Life Insurance, Gaurang Shah was Group Head of Retail Assets for Kotak Mahindra Bank. The Retail Assets include commercial vehicles, personal loans, structured products, car loans and loans against shares.
Mr. G Murlidhar (Chief Financial Officer)
Mr. Murlidhar is a Chief Financial Officer and Company Secretary of Kotak Life Insurance. Mr. Murlidhar is an associate member of the Institute of Chartered Accountants of India, an associate member of the Institute Of Company Secretaries of India, and graduate member of the Institute of Cost & Works Accountants of India. Mr. Murlidhar possesses over 20-year work experience and has earlier worked with National Dairy Development Board (NDDB), MDS Switchgear Limited and Nicholas Piramal India Limited and Ion Exchange Ltd. Prior to Kotak Life Insurance; he held the position of VP-Finance at Gujarat Glass Ltd. As Chief Financial Officer at Kotak Life Insurance, he oversees all aspects of Finance including Operations, Regulatory, Internal Control, Finance, Accounts and Treasury.
Mr. Nandip Vaidya (Vice President - Sales)
Mr. Nandip Vaidya is the Vice President - Sales at Kotak Life Insurance. Mr. Vaidya holds a B.Tech (Mechanical) degree from IIT Mumbai and has also completed his Post Graduate Diploma in Business Management from IIM-Ahmedabad. He started his career as a Management Consultant at A.F. Fergusson. After completing 5 years there, he moved onto various positions within the Kotak Mahindra group starting from Car Financing (Kotak Mahindra Finance Ltd) to Stock broking & Distribution of investment products/ Mutual funds (Kotak Securities). Mr. Vaidya set up the private banking business and private equity fund for the Kotak group.
Mr. Arun Patil (Vice President - Sales & Management Development)
Mr. Eksteen de Waal is the Sales Training Head of Kotak Life Insurance. He joined on secondment from Old Mutual South Africa for a period of two years. Eksteen is a postgraduate in Law and practiced Law as well as lectured at South African Universities before joining the Life Insurance Industry. He has over 23 years' experience in the Life Insurance Industry. He worked for Sanlam Life in South Africa for 3 years before joining Old Mutual more than 20 years ago. Eksteen started with Old Mutual as a Legal Adviser and after that held various positions. He sold life assurance for some time, served as Head of Old Mutual's Training Division, Head of Old Mutual's Trust Company, Project Leader for implementing a new Sales Process with
McKinsey's, Head of Conventions and Motivation, Head of Agency Marketing and finally Head of Banc assurance with Old Mutual Bank. In addition he played a role in the wider Industry. He was Vice-President of the South African Insurance Institute for two years as well as Vice- President of the Financial Planning Institute for three years. In this time Eksteen pioneered the introduction of the CFP qualification into South Africa. He has traveled widely during his career, working in the USA and England and also implemented Training. Programmers in Namibia, Zimbabwe, Malawi and Kenai. His current role is to substantially upgrade the level of Training and assist in the implementation of Performance Management Systems in Kotak Life Insurance.
AREAS OF BUSINESS
Kotak Mahindra one of India's leading financial institutions was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Mr. Uday Kotak, Mr. Sidney A. A. Pinto and Kotak & Company. Industrialists
Mr. Harish Mahindra and Mr. Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. It's been a steady and confident journey to growth and success.
In October 2005, Kotak Group acquired the 40% stake in Kotak Mahindra Prime held by Ford Credit International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahindra (FCKM) held by Kotak Group.
In March 2006, Kotak Group has agreed to buy 25% stake held by Goldman Sachs in KMCC and KS subject to regulatory approvals.
Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of around Rs.2,000 crore and employs around 6,000 employees across its various businesses servicing around one million four hundred thousand customer accounts through a distribution network of branches, franchisees, representative offices and satellite offices across 216 cities and towns in India and offices in New York, London, Dubai.
Kotak Mahindra Old Mutual Life Insurance Pvt. Limited SWOT Analysis
Strengths It is only Insurance Company which specialized in Financial planning. Kotak main job is Financial Management. Financial Competency. It is a highly quality product. Customer oriented product.
Less penetration (favor number of branch). Uncertainty of business.
Continuous change in Insurance sector.
Increased awareness of insurance customer. IRDA , „ Intantive to make insurance more customer friendly.‟ Large segment of population is still not insured. Threats
Increase in number of insurance companies. Less penetration. Availability of number many investment of customer.
Data interpretation of the Survey Graph analysis Age Wise Classification
AGE OF MEMBER
NUMBER OF GENDER MEMBER
CLASSIFICATION OF GENDER MALE FEMALE
CLASSIFICATION OF NO. OF CUSTOMER
CLASSIFICATION OF FAMILY MEMBER AND NO OF MEMBER
INCOME WISE CLASSIFICATION
IN INSURANCE COMPANY –HOW MANY MEMBER OF THIS COMPANY
Only 42%people having insurance in BHOPAL so it is potential for insurance company to capture to all that market.
Among that 42% people who having insurance, they have insurance 40% for self 28% for spouse 21% for children and 18% for their parents and 11% for all family member.
HAVING INSURANCE Self Spouse Children Parents All
NO. OF MEMBERS 40 28 21 18 11
Different policy bought by customers.
Only 42 % people having life insurance but among them 82% people are underinsurance and only 18% people are fully insured according to them income
Research always starts with a question or a problem. Its purpose is to question through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. Marketing research is the function which links the consumer, customer and public to the marketer through informationinformation used to identify and define marketing opportunities and problems generate, refine, and evaluate marketing actions, monitor marketing actions, monitor marketing performance and improve understanding of market as a process. Marketing research specifies the information required to address these issues, designs, and the method for collecting information, manage and implemented the data collection process, analyses the results and communicate the findings and their implication. I have prepared our project as descriptive type, as the objective of the study demands the answers of the question related to find the potentiality of life insurance in Bhopal: How much potential is there in Bhopal
The Marketing Research Process
As marketing research is a systemic and formalized process, it follows a certain sequence of research action. The marketing process has the following steps: Formulating the problems Developing objectives of the research Designing an effective research plan Data collection techniques Evaluating the data and preparing a research report There are two types of data collection method use in my project report. – Primary data – Secondary data. For my project, I decided on primary data collection method for observing working of company and approaching customers directly in the field, tele-calling, cold calling, campaigning and through references to know their interest in business with company in my project and also make questionnaire for creating database of business class people is Surat city for company. I decided on Secondary data collection method was used by referring to various websites, books, magazines, journals and daily newspapers for collecting information regarding project under study.
After the research methodology, research problem in marketing has been identified and selected; the next step is together the requisite data. There are two types of data collection method – primary data and secondary data. In our live project, we decided primary data collection method because our study nature does not permit to apply observational method. In survey approach we had selected a questionnaire method for taking a customer view because it isfeasible from the point of view of our subject & survey purpose. We conducted 200 sample of survey in our project.
The main of the present study of is accomplishing the following objective.
Proper understanding and analysis of life insurance industry. To know about brand awareness of Kotak Life Insurance and customer‟s
preference about Kotak Life Insurance.
According the market survey come know about how much potential of
insurance market in our city.
And base on analysis of the result thus obtained make a report on that research. Training aims at recruiting maximum number of Life Advisors and to Sell the
maximum policies for the company and bring the business for the company which ever is going at the particular point of time . Along with it I will be gaining the thorough knowledge of insurance sector. This will give me in more confidence in marketing products given to me.
The objective behind the project is as follows: To find the right candidate
. To about their family background, occupation, social relation, Qualification, Age.
Some of the difficulties and limitations faced by me during my training are as follows: Lack of awareness among the people – This is the biggest limitation found in this sector. Most of the people are not aware about the importance and the necessity of the insurance in their life. They are not aware how useful life insurance can be for their family members if something happens to them. Perception of the people towards Insurance sector – People still consider insurance just as a Tax saving device. So today also there is always a rush to buy an Insurance Policy only at the end of the financial year like January, February and March making the other 9 months dry for this business. Insurance does not give good returns – Still today people think that Insurance does not give good returns. They are not aware of the modern Unit Linked Insurance Plans which are offered by most of the Private sector players. They are still under the perception that if they take Insurance they will get only 5-6% returns which is not true nowadays. Nowadays most of the modern Unit Linked Insurance Plans gives returns which are many times more than that of bank Fixed deposits, National saving certificate, Post office deposits and Public provident fund. Increased competition – Today the competition in the Insurance sector has became very stiff. Currently there are 14 Life Insurance companies working in India including the LIC (life insurance Corporation of India). Today each and every company is trying to increase their Insurance Advisors so that they can increase their reach in the market. This situation has created a scenario in which to recruit Life insurance Advisors and to sell life Insurance Policy has became very very d.
All the insurance company must advertise more in the market because not all people know more about life Insurance policy. Most number of people wants Guaranteed Returns so company must focus on this for the customer investment. Make insurance policy which can buy any one so we can insured them through this type of life insurance policy.
In order to obtain more information regarding the present study and to substantiate it with theoretical proof, the following references were made: Insurance chronicle, January 2006 Special issue “Insurance Industry 2006”.
www.kotaklifeinsurance.com www.google .com
1.NAME2. AGEA. 18-25, (B). 26 TO 30 (C). 31 TO 45 (D). 46 ABOVE 3. GENDER A. MALE 4. OCCUPATION A.SERVICE (B). BUSNIESS (C).PROFESTIONAL (D). OTHER 5. FAMILY MEMBER 6. DO YOU HAVE INSURANCE A.YES – COMPANY NAME (B).NO-
7. WHAT IS YOUR ANNUAL INCOME A.400000 TO 70000 (B).700000 TO 1 LACS (C).1LACS TO 3 LACS D.3 LACS TO ABOVE