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3C REPORT
COMPANY COSTOMER COMPETITOR
¶Comparative study of traditional products with new ulips of ing vysya life insurance¶¶
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INTRODUCTION OF INSURANCE:
Insurance is commerce. Insurance product is a financial contract entered into by parties with a define consensus of mind. Insurance, in its purest form, is a risk management tool, a security blanket. It provides financial protection against unexpected events. When we buy insurance, effectively a portion of risk is transferred to the insurer. This protection comes at a price, but it¶s a function of what we might otherwise find ourselves burdened with. Whatever stage of life we are at, chances are, and we need insurance.
DEFINITION:
Insurance can be define as´ a contract by which insurance agrees to pay the insured a compensation for specified damage loss or injury suffered in exchange for periodic payment called premium´ Insurance cannot prevent the happening of the event; it can protect a person from the financial losses he may suffer after the happening of the event. Therefore, insurance if aimed at compensating the financial loss suffered an insured event.
1.3 CLASSIFICATION OF INSURANCE:
Insurance is basically classified into two categories. (1) Life Insurance (2) General Insurance
Life insurance:
This is provided for the payment of sum money on the death of the insured person due to natural causes or on the expiry of a certain number of years if the insured person is then alive. Death and life neither of them can be compensated. Life insurance aims to compensate the µIncome Earning Capacity¶ of the person.
Events covered in Life Insurance:
In Life Insurance, income ±earning capacity of the person is covered. The loss of the income earning capacity can be on the happening of the following events when the life is assured. 1. Death.
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2. Sickness (critical illness).
3. Accident (Death or permanent disability due to accident). 4. Retirement.
Objectives and advantages of life insurance:
Protection against Risk of Untimely Death: Protection during old age: Forced savings: Educational Requirement and Charity: Nomination and Assignment: Marketability and Suitability for Borrowing: Loan from the Insurance Company: Investment Option. Tax Benefits: Protection to Wife and Children:
General Insurance:
Insurance other than life fall under general insurance. It covers loss of every other physical or non-possession. The loss may be due to fire, theft, accident etc. the general insurance is further classified into Fire insurance: Marine Insurance: Miscellaneous Insurance: Insurance began as a way of reducing the risk of traders, as early as 5000 BC . Life insurance dates only to ancient Rome; "burial clubs" covered the cost of members' funeral expenses and helped survivors monetarily. Modern life insurance started in late 17th century, originally as insurance for traders: merchants, ship owners and underwriters met to discuss deals at Lloyd's Coffee House, predecessor to the famous. The first insurance company was formed in 1732, but it provided only fire insurance. The sale of life insurance in the U.S. began in the late 1760s. The Synods in and created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759; Episcopalian priests organized a similar fund in 1769. Between 1787 and 1837 more than two dozen life insurance companies were started, but fewer than half a dozen survived. Prior to, many insurance companies in the United States for their owners, in response to bills passed in 2001 and in 2003, the companies have been required to search their records for such policies for example reported that Nautilus sold 485slaveholder life insurance policies during a two-year period in the 1840s; they added that their trustees voted to end the sale of such policies 15 years
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before then.
General information:
Human have always sought securities. This quest for security was an important motivating force in the earliest formation of families, clans, tribes, and other groups. Indeed, groups have been the primary source both emotional and physical security since the beginning of humankind. They ensured a less volatile source of life necessities then that which ensures isolated human & families could provide and help their less fortunate members in the time of crises.
The principle kinds of insurance are as follows:
Life-term, ordinary, endowment, limited payment, group industrial and annuities, with a variety of combinations of the four basic forms. Fire & marine-fire, ocean marine, motor vehicle, inland navigation, and transportation, tornado and windstorm, sprinkler leakage, earthquake, riot and civil commotion, explosion rain, hale, flood, aircraft, etc. Causality and surety -automobile liability, liability other than automobile workers, compensation, fidelity and surety, burglary and theft, automobile property damage, accident in health, steam boiler, machinery, plate glass, etc.
Four classes of insurance business:
Life insurance Fire insurance Marine insurance Miscellaneous insurance.
Customer Protection:
Insurance industry has ombudsmen in 12 cities. Each ombudsman is empowered to redress customer grievances in respect of insurance contracts on personal lines where the insurance amount is less than 20 Lakhs, in accordance with the ombudsmen scheme. Address can be obtained from the officers of LIC and other insurers.
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COMPANY PROFILE Introduction:
ING is a professionally managed organization with a board of directors consisting of eminent persons who represent various fields including finance, taxation, construction and urban policy & development. The board primarily focuses on strategy formulation, policy and control, designed to increasing value to shareholders. ING is a global financial institution of Dutch origin offering banking, insurance and asset management to over 4500cr private, corporate and institutional clients in over 40 countries. With a diverse workforce of approximately 125,000 people, ING is dedicated to setting the standard in helping our clients manage their financial future
About ING:
ING Vysya Life Insurance (ING Life), a part of the ING Group the world¶s largest financial services corporation entered the private life insurance industry in India in September 2001. Headquartered at Bangalore, ING Life India is staffed by over 6,500 employees and services more than 10 lakhs customers. ING Life India is a joint venture between ING, Exide Insurance International B.V. 26% , Exide Industries 50%, Ambuja Cements Limited and Enam Group. ING Life has a pan India network, and distributes its products through Agency force comprises of over 60,000 ING Life Advisors, spread across the country. The channel has branches in 229 cities, and 366 sales teams across the country. The Alternate Channels business within ING Life is one of the fastest growing distribution channels. The company currently has tie ups with over 200 cooperative bank across the country. The Alternate Channels division has Bancassurance (ING Vysya Bank), Referral Banks, Corporate Agents, Brokers and SMINCE.
About ING in India
ING operates through three businesses in India, ING Vysya Life Insurance, ING Vysya Bank and ING Investment Management. ING Vysya Bank is a premier private sector bank with over 76-year heritage and 1.5 million satisfied customers. ING Investment Management believes in providing investors with the knowledge & opportunity to manage their future easily.
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Mission Values and Personality:
µ¶Mera Farz¶¶ represents the soul of ING Life India,and is the simple expression that connects us to our statement of belief,viz.our mission.our values,our personalities and our brand essence
Our mission
At ING Life, our mission is µµTo set the standard in helping our customers manage their financial future.¶¶ Our values Our business is driven on our values of Optimism, Knowledgeable, Trustworthy and Transparent. Optimism: We bear an approach of µOptimism¶ towards our company, towards each other, in our products and in our care for our customer¶s interests. Knowledgeable: We cultivate the knowledgeable value through our robust way of working, sharing and actively communicating. Trustworthy: We deliver trustworthiness by doing the µright things in right way¶, by delivering an µeasier¶ customer experience and by being a socially responsible corporate. Transparent: Our value of µtransparent¶ drives our actions, reflects in our products and services.
personality
Our values are personified by our people through a set of µPersonality aspects¶. These personality aspects are: Positive, Professional, Accountable and Transperent. Positive: ING Life India employees live its value of optimism by bearing a positive and can-do attitude to their work. Professional: At ING Life India, we expect the highest standard of professional behavior by providing professional advice to customers, by treating customers equitably, abide by company¶s culture and act with compliance. Accountable: ING Life India expects employees to be accountable for their actions, words and decisions such that it builds their personal integrity and fosters ING Life India¶s value of trustworthiness.
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Straightforward: ING Life India expects employees to be straightforward in their conduct and work while dealing with customers and colleagues.
Brand Positioning
The Brand Essence of ING Life is, µExperience the joy of fulfilling your responsibility¶. This essence is captured in the unique brand positioning µMera Farz¶, developed in 2007. This positioning means, ING Life helps its customers fulfill their responsibilities as provider towards themselves and their families. As part of the ING Group, the world¶s largest financial services company, ING Life provides its customers with the strength, reliability and the right balance between long-term savings, security & reasonable returns. This powerful positioning has helped ING Life create a distinct identity for itself. The latest brand campaign in 2008 portrays how key life-stages in our lives, such as marriage, birth of a child, children¶s education, retirement, bring unexpected financial worries along with happiness. However, we can overcome these burdens with prudent financial planning and a helping hand from ING Life, thus fulfilling our responsibilities towards our family. 1.7 Product Portfolio ING Life follows a "customer centric approach" while designing its products. The Company's product portfolio offers products that cater to every financial requirement, at all life stages. ING Life has developed an exclusive tool - the Lifemaker simple tool which helps our customers choose a plan most suitable to them, based on their needs, requirements and current life stage. This tool helps build a complete financial plan for life at every lifestage, whether the requirement is Protection, Savings, Retirement or Investment.
Individual Life Insurance Products
ING Life Insurance aims to make customers look at life insurance afresh, not just as a tax saving device but as a means to live life to the fullest. It believes in enhancing the very quality of life, in addition to safeguarding an individual's security. The Company follows a ³customer centric approach´ while designing its products. The ING Life product portfolio offers products that cater to every financial requirement, at all life stages. Go ahead and pick your requirement to find life insurance plans that best match
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your needs. y y y y y y y y y y Protection Secure your family¶s Financial future. Savings Save for your aspirations and life goals Investment Invest now for a better future Retirement Lead your retired life on your own terms Protection Plans
Our Protection Plans help you ensure that your family continues to enjoy a comfortable lifestyle even in your absence. We make available a variety of plans to provide you with the flexibility of choosing one that fits your and your family¶s needs the best. We recognize protection as the basic insurance need and have therefore kept our products comprehensive yet economical for you. So go ahead, get an ING Protection Plan and secure your family¶s financial future
ING Term Life
Simplest and most economical form of term life insurance. Large sum assured at highly affordable premium rates.
ING Term Life Plus
Term insurance product with return of premium. Large sum assured at affordable premium rates. y Saving Plans Our Saving Plans help you achieve your life goals making them cherished moments for you and your family. They provide you with the flexibility to save for your future requirements while you continue to improve your current lifestyle. Our plans help discipline your savings approach and point your efforts towards defined goals so that whatever stage of life you are in, you are always in control and self-reliant. So go ahead, get an ING Savings Plan to achieve your life goals! ING New Prime Life (Unit Linked Insurance Plan) Saving cum protection plan with features like loyalty additions, increasing sum assured, accidental coverage and option to extend term. Reassuring Life Endowment Plan (Reversionary Bonus) Savings plan with a highly reliable safety net for your family in case something happens to you.
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Creating Life Child Protection Plan Ideal savings plan for new parents. Payment to child in case of death of parent and at maturity. Future premiums waived in case of death of parent. Creating Life Money Back Plan Savings plan for new parents with money back. Double benefit of a life cover along with periodic cash returns during the term of the policy. Safal Jeevan Endowment Plan Comprehensive protection and savings plan with an in-built accident cover. Option to choose from a pre-packaged range of fixed terms and premiums. Safal Jeevan Money Back Plan Ideal plan as a first life insurance policy. Choose a suitable policy term from pre-packaged solutions. Payouts at regular intervals during policy term. ING New Creating Star (Unit Linked Insurance Plan) A perfect plan that helps to ensure that your child has financial support when it is needed the most. ING Freedom Plan (Unit Linked Insurance Plan) Saving cum protection plan with features like flexible investment strategy, loyalty additions, option to avail survival benefits at regular intervals and additional protection through riders Investment Plans Our Investment Plans are created keeping your needs in mind. We appreciate the flexibility required to suit your risk appetite and the commitments you may want to make. Our global expertise in managing wealth for individuals at all stages in their life ensures that we have products to suit your taste whatever your objective of investing may be. So go ahead, get an ING Investment Plan to reach your goals faster! ING Flexi Life A Unit Linked Insurance Plan with an option to increase / decrease regular premium. Offers Flexibility in premium payment. ING Flexi Life Plus A Unit Linked Insurance Plan with an option to increase / decrease regular premium. Offers Enhanced Accidental Protection Benefit.
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Powering Life Investment plan with high reversionary bonus. Premium payments for a short period of time, life cover for a longer period and high maturity benefits. New One Life Single premium unit linked insurance plan. Flexibility to choose your life cover. Top-ups as per your convenience. Platinum Life Plan Investment plan with a 10 year duration. Simple guaranteed additions on sum assured apart from bonuses and loan facility. New Fulfilling Life Plan Investment plan with double benefit of periodic cash returns during policy term and maturity or death benefit.
ING Uttam Jeevan RP :
It is a simple, easy to understand plan which fulfills customer¶s need of investment and protection your future worries in one shot. Pay once and enjoy the benefits for the term of the policy.
ING Uttam Jeevan SP :
It is a unique Single Premium unit linked plan which can help you strike your future worries in one shot. Pay once and enjoy the benefits for the term of the policy.
ING Market Shield :
It is a Unit linked life insurance plan that ensures you never miss an opportunity to maximize your gains and at the same time limits your losses Retirement Plans Our Retirement Plans ensure that you lead your life after retirement on your own terms, doing things you have always dreamt of. We also believe it is important to be in control of your retirement planning. Our innovative features help you choose your retirement age and also control the way your investments are managed keeping in mind your retirement needs. So go ahead, get an ING Retirement Plan and retire on your own terms! ING New Best Years Retirement plan with capital guarantee and plenty of flexibility, to help build a sizeable financial asset for you or your family, in case you¶re not around.
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ING Future Perfect (Unit Linked Insurance Plan) A perfect solution for protection while you earn and regular income after you retire. ING New Golden Life (Unit Linked Insurance Plan) A unit linked pension plan that allows you to plan your retirement at your own pace. Group Plans A variety of plans to provide a cost effective yet comprehensive cover in an efficient manner to all your employees, helping you attract and retain the best of talent. ING Smart Shield Group Gratuity Employee Deposit Linked Insurance Group Term Life Insurance Plan Single Premium Level Term Plan
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Ratings
S&P
Moody¶s
Fitch
ING Group N.V.
A (updated 29 Oct 2009)
A1 (updated 2 Apr 2010)
A (updated 29 Sep 2010)
ING Bank N.V.
A+ (updated 8 Feb 2010)
Aa3 (updated 16 Feb 2010)
A+ (updated 29 Sep 2010)
ING Verzekeringen N.V.
A(updated 10 Nov 2010)
Baa1 (updated 27 Oct 2009)
A(updated 21 Sep 2010)
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Risk management
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Actuarial and underwriting risks
ING is exposed to life and non-life insurance risks. Actuarial risks arise with respect to the adequacy of insurance premium rate levels and provisions with respect to insurance liabilities. Maximum underwriting exposures are limited through exclusions, cover limits and reinsurance.
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Credit risk
For the investment portfolios backing the insurance liabilities, ING Insurance¶s policy is to maintain a well-diversified credit fixed-income investment portfolio across companies and industries.
Market risk
Insurance market risks are managed through asset-and-liability management (ALM) policies and procedures with an ALM committee structure established at both business unit and corporate levels.
Interest Rate Risk:
ING Insurance measures the potential changes in the expected earnings of the insurance operations over a time period of one year based on an instantaneous increase/decrease in interest rates of 1%.
Equity Risk: Through scenario analysis ING Insurance also measures the potential changes in
the expected earnings of the insurance operations over a time period of one year based on an instantaneous increase/decrease in equity markets of 10%.
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Competitors
Life insurance corporation of india
This leading Insurance company of India was established in the year 1956 by the alliance of 16 non-Indian companies,154 Indian Insurance Companies and 75 provident. It has 100 divisional offices,2048 computerized branches,7 zonal offices and the company's corporate office. It has introduced new strategies for the facilitation of the customers like the IVRS,ECS,ATM Premium payment facility and the company's Info centers in Mumbai, Delhi, Chennai, Kolkata and many others cities.
Bajaj alliance life insurance
This Indian Insurance company is a joint venture of Alliance AG,which is one among the largest Life Insurance companies and Bajaj Auto,one among the biggest 2- & 3 wheeler producers in the world. The Company has various plans for the customers like the Pension,Retirement,Life Time Care,Health Care,Life Insurance Online,Life Insurance Saving Plans, and online services like the Address change,Renewal Premium Payment etc.
Tata aig group This renowned life Insurance company in India offers a wide array of products related to life insurance for associations,individuals and businesses. The company offers high quality solutions to its corporate Indian clients. It renders services like the AIG Health First,AIG Health Life Protector, Tata AIG Life Hospi Cash Back, Tata AIG Life Maha Gold, Tata AIG Life Assure 10 Years and many others. The company is a joint venture of America International Group and TATA group
It is one of the major insurance companies in India and a joint venture of Sun Life Financials and Aditya Birla group. The company provides Life Insurance Solutions to meet the needs of Protection, Retirement and Saving .It has recently launched the Money back Plus Plan and offers Insurance programs like the Children,NRI,Riders,Health etc. SBI Life : This renders premium Insurance solutions like SBI Life-Smart ULIP,SBI Life-Group Criti9, SBI Life-Unit Plus Child Plan etc. It also offers services like the NRI services,Premium Payment Procedure,ECS Facility,RPI/RFI and many others. SBI Life is a joint venture of BNP Paribas Assurance and SBI.
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Max New York Life: This Life Insurance company in India provides the best solutions related to life insurance like children's plan, retirement solution, Investment, Protection, Health,Savings etc. The company has 14 corporate agency tie ups, 33 bankassurance relationships and direct sales force at 14 locations. It is now covering 36 productsrelated to life and health insurance. Kotak Life Insurance: This premier Insurance company in India offers insurance facilities related to Savings,Investments,Child,Retirement,Protection, Kotak Long Life Secure Plus,Kotak Long Life Health Plus etc. It opens up services like Insurance Guide, NAV, Premium Payment Options and many others. HDFC Standard Life: This is one of the major market leaders in the insurance sector in India. The company offers Insurance services like the Group Plans,Health Plans,Protection Plans,Retirement Plans,Savings and Investment Plans etc. The customer base of the company is about more than 7 million who depend on the company for pension,investment,banking needs. Reliance Life : The company based in India offers the best plans for Life Insurance in India. Reliance Capital Limited's associate company is Reliance Life which is one of the leading private sectors in India. The company provides the Protection Plans,Child Plans,Retirement Plans and Investment plans and is also the ultimate solver of solutions for Groups and Individuals. ICICI Prudential: This major Insurance Company in India provides health Insurance,life insurance,ULIPs,ULIP,Retirement Plans and many others. Life Insurance Plans of the company covers Premium Guarantee Plans,Education Insurance Plans etc. Pension Plans encompass LifeStage Pension,Forever Life. Health Insurance Plans cover Hospital Care,MediAssure.
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CUSTOMER
ING Life Insurance offers you the following services
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Renewal Reminders Special care to keep you informed of your premium payment schedule to help you avoid late fees and lapsing of your policies. Customer Information Services Services to provide you with timely and relevant information on your policies and our new products Grievance Redressal A special cell for the redressal of your grievances related to products and services.
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. REGULATORY ACTS:
A number of acts govern the insurance sector The Insurance Act, 1938 The Insurance Act, 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business. Life Insurance Corporation Act, 1956 Even though the first legislation was enacted in 1938, it was only in 19 January 1956, that life insurance in India was completely nationalized, through a Government ordinance. The Life Insurance Corporation Act, 1956 effective from 1.9.1956 was enacted in the same year to, form Life Insurance Corporation after nationalization of the 245 companies (both Indian and foreign origin) into one entity. General Insurance Business (Nationalization) Act, 1972 The General Insurance Business (Nationalization) Act 1972 was enacted to nationalize the 100 odd general insurance companies and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance, United India Insurance.
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Insurance Regulatory and Development Authority Act, 1999 Till 1999, there were not any private insurance companies in Indian insurance sector. The Govt. of India, then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies into the insurance. Further, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies. Regulations for Indian Insurers To protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry Insurance Regulatory and Development Authority (IRDA) was established. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions: Company is formed and registered under the Companies Act, 1956 The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business. The minimum paid up equity capital for life or general insurance business is 100crores
The minimum paid up equity capital for carrying on reinsurance business has been
prescribed as 200crores
5. ROLE & FUNCTIONS OF IRDA:
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.. (1) Subject to the provisions of this Act and any other law for the time being in force, the
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Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include, (A) Issue to the applicant a certificate of registration, renews, modify, withdraw, suspend or cancel such registration (B) Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance (C) Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents (D) Specifying the code of conduct for surveyors and loss assessors (E) Promoting efficiency in the conduct of insurance business (F) Promoting and regulating professional organizations connected with the insurance and re-insurance business (G) Levying fees and other charges for carrying out the purposes of this Act (H) Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business; (I) Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938)
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(J) Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries (K) Regulating investment of funds by insurance companies; (L) Regulating maintenance of margin of solvency; (M) Adjudication of disputes between insurers and intermediaries or insurance intermediaries (N) Supervising the functioning of the Tariff Advisory Committee (O) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f) (P) Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector
(Q) Exercising such other powers as may be prescribed.