A Study on Analysis the Performance of HDFC Standard life Insurance Company limited and Tata AIG life Insurance Company Limited
by Nikita Gupta*,
- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540
Volume 11, Issue No. 21, Apr 2016, Pages 0 - 0 (0)
Published by: Ignited Minds Journals
ABSTRACT
HDFC Standard Life insurance is the oldest life insurance company in the world. It is the largest insurer in the UK and is the 28th largest company in the world. In India, the company is marketing life insurance products and unit linked investment plans. It has been found from the study that HDFC, SLIC has a lot of competition with other private insurers. The ideal premium would be between Rs. 5000 – Rs. 25000 and an ideal policy term would be 10 – 20 years.
KEYWORD
HDFC Standard Life insurance, Tata AIG life Insurance, performance analysis, private insurers, premium, policy term, UK, world, life insurance products, unit linked investment plans
INTRODUCTION
The Indian consumer has a false perception about insurance – they feel that it would not benefit them if they do not live through the policy term. This message should be conveyed to potential customers so that they readily invest in insurance. The company should try to create awareness about itself in India. In the global market it is already very popular. With an improvement in the sales techniques used, a fair bit of advertising and modifications to the existing product portfolio, HDFC would be all set to capture the insurance market in India as it has around the globe.
THE INSURANCE INDUSTRY IN INDIA
Together with banking services, it adds about 7% to the country’s Gross Domestic Product. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain the economic growth of HDFC STANDARD LIFE INSURANCE COMPANY LIMITED Tata AIG Life Insurance Company Ltd.
Tata AIG Life is a joint venture company, formed by the Tata Group and American International Group. Tata AIG Life is the leadership position in India and AIG’s global presence as the world’s leading international insurance and financial services organization. The Tata Group holds 75 per cent stake in the insurance venture with AIG holding the balance 25 percent.
POINTS OF PARITY FUNDS AVAILABLE WITH ULIP PLANS
Both HDFC SLIC and Tata AIG LIC have 7 types of funds based on combination of Debt–Equity fund. These are liquid fund, stable managed fund, secure managed fund, defensive managed fund, balanced managed fund, equity managed fund, growth fund.
Points of Difference We see that both the life insurance companies’ products are almost same. They have same charges, fees and deductions. There is slightly difference in charges and maximum limits of all charges are fixed by IRDA. Before buying any life insurance policy one should check charges and fees on policy and company’s overall performance and return given to its consumer.
OBJECTIVES OF THE RESEARCH
• To know about the product of HDFC Standard life Insurance Company limited and Tata AIG life Insurance Company Limited. • To know Points of Parity’ and Points of Difference of HDFC Standard Life Insurance Company Limited and Tata AIG Life Insurance Company Limited. • To find out factors that influence customers to purchase insurance policies and give suggestions for further improvement.
RESEARCH METHODOLOGY
Descriptive research design has been used by the researcher for achieving the objectives of the study. and secondary data. Primary data has been used by the researcher for achieving the objective of the study. Questionnaire method is used to collect the data.
SAMPLE SIZE
The sample size for the survey conducted was 270 respondents. This sample size was taken on 5 significant levels.
SAMPLING TECHNIQUE
Random sampling technique was used in the survey conducted.
TECHNIQUES OF ANALYSIS
Tables, graps and pie charts were used for the analysis of the collected data.
DATA ANALYSIS & INTERPRETATION
CUSTOMER PROFILE OF SURVEYED RESPONDENTS TABLE-1
CHART -1
INTERPRETATIONS
From the chart above it can clearly be seen that 43% of the respondents are working professionals, 23% are students and 18% are into business.
Nikita Gupta*
COMPANIES
TABLE-2
CHART-2
INTERPRETATIONS
It has been from here that in India since 1956 the organization has grown to 2048 offices serving 20 crore policies.
ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE INSURANCE TABLE -3
ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE INSURANCE INTERPRETATIONS
It has been found from the above chart that 39% of the respondents surveyed pay an annual premium towards life insurance. 25% of the respondents pay an annual premium less than Rs. 15001 and 17% pay an annual premium less than Rs. 25000.
CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM TABLE-4
CHART -4
CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM
the respondents would be willing to spend between Rs. 10001 – Rs. 25000 for life insurance. 27 % would be willing to spend between Rs. 6001 – Rs. 10000 per annum. Only 15% would be willing to spend more than Rs. 25000 per annum as life insurance premium.
CHART SHOWING IDEAL POLICY TERM TABLE-5
CHART-5
CHART SHOWING IDEAL POLICY TERM INTERPRETATIONS
The above chart depicts that 35% of the respondents prefer a policy term of 10 to 15 years, 19% prefer a term of 3 to5 years and 15% prefer a term of 6 to 9 years.
FACTORS THAT MOTIVATE RESPONDENTS TO PURCHASE INSURANCE TABLE-6
INTERPRETATIONS
From the chart above it can be seen that 33% of the respondents purchase life insurance to secure their families, 33% take life insurance to get high returns, 17% purchase insurance on the advice of their friends and 13% purchase insurance because of the influence of advertisements.
CONCLUSIONS
The medium of advertising used could be television since most of its competitors use this tool to promote their products. The company must be promoted as an Indian company since consumers seem to have more trust in investing in Indian firms. 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. There are individuals who are willing to pay small amounts as premium but the plans do not accept premiums below a certain amount. This was a general conclusion drawn during prospecting clients.
SUGGESTIONS
The future topics for research in the organization could be setting up of an appropriate ad campaign. The advertisements have to be emotionally appealing. They might also include a celebrity. A large number of changes could be introduced and this would help in saving operating costs and improving the efficiency of the firm.
REFERENCES
www.hdfcslic.com www.tata-aig-life.com www.irdaindia.com www.lic.com www.money control.com www.bajajallianz.com www.icici.prulife.com
Nikita Gupta*
Corresponding Author Nikita Gupta*
Pehowa
niksgpt007@gmail.com
