Nayan gupta MM2022437 Project report (CPS Report at Insplore) PDF

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A REPORT ON “A STUDY ON UNDERSTANDING CONSUMER BUYING BEHAVIOUR WITH RESPECT TO INSURANCE COMPANIES”

Insplore Consultants PVT. LTD Master of Business Administration (MBA- Marketing) 2020-22

Submitted By Nayan Gupta MM2022437 Balaji institute of Modern Management, Pune

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Date: 16 Jul, 2021

This is to certify that Mr. Nayan Gupta has successfully completed his Summer Internship with project title "Understanding Of Consumer Buying Behaviour With Respect To Insurance Companies" under the guidance of Mr. Chinmay Tiwari. The duration of the project was from 03 May, 2021 to 30 Jun, 2021 The internship on evaluation fulfils all the stated criteria and student's findings are his original work. I hereby certify his work satisfactory to the best of my knowledge with an aggregate grade: B. Location for internship: New Delhi/Work from Home

We wish him all the best for future endeavours.

Warm Regards

(Authorized Signatory) Head HR Insplore Consultants Pvt. Ltd.

ACKNOWLEDGEMENT In the present world of competition there is a race of existence in which those are having a will to come forward, succeed. Summer Internship Project is like a bridge between theoretical and practical working. With this willingness, I have had the privilege to do my Summer Internship at Insplore Consultants Pvt Ltd.

First of all, I would like to thanks Almighty God for having given me strength to work on the right path of life. I would like to thanks Sri Balaji University, Pune, for giving me this opportunity to have had done my SIP at Insplore Consultants Pvt Ltd. I feel obliged in taking this opportunity to sincerely thank our Director, Dr Archana Srivastava, for their continuous efforts in moulding us to good entrepreneurs and also good humans. My sincere thanks to Mr. Himalaya Sethi, Founder and CEO at Insplore Consultants Pvt Ltd., for giving us insights to the real corporate world and having given us great learnings throughout the Internship. His constant efforts for making us learn has given a learning for a great living in our future. I would also like to extend my gratitude to my mentor Mr. Chinmay Tiwari, Corporate Sales Manager at Insplore Consultants Pvt Ltd, for giving us the practical knowledge and making me aware of every aspect of the products. His constant support throughout the Internship made it possible for me to complete the project. At last, but not the least, I am thankful to all my teachers, friends, Insplore family and all other contributors, who have been always helping and encouraging throughout the journey. I have no valuable words to express my thanks, but my heart is still full of the favours received from every person.

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TABLE OF CONTENTS

Title of the Project Certificate Acknowledgement Table of content Executive Summary Chapter 1: Contextual Background

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Industry Scenario Market Scenario Competitor Analysis Product/Service/ Market Studied Brief Company & Dept. Profile Role in Company Swot Analysis Chapter 2: Research Problem Chapter 3: Objective of the Project

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Hypothesis Chapter 4: Literature Review

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Research Gap Chapter 5: Research Methodology / Design

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Research type Sampling Size Sampling Method Data collection method Chapter 6: Data Analysis Chapter 7: Findings & Interpretation Chapter 8: Recommendation(s) Chapter 9: Future Scope of Topic Chapter 10: Conclusion

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References Annexure 1: Questionnaire 4|P age

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EXECUTIVE SUMMARY Name

Email ID Name of Organization Address of Company City

Nayan gupta [email protected], [email protected] Insplore Consultants Pvt Ltd. RG Trade Tower, 12th Floor, 1208, Netaji Subhash Place, Pitam Pura, New Delhi, Delhi 110034 Delhi

The study named “Consumer buying behaviour with respect to insurance companies’’ is about consumers buying behaviour and the factor which influence consumer towards insurance companies. As an individual each person possesses certain amount of risk from various sources. Typical Indian consumers consider the future and struggle to make a healthier and safer life for his dependents in the future. Therefore, the life insurance products are created which will meet the need of two aspects that is: covering the risk and also saving the tax. Insurance is considered to be best and effective tools for these purposes. So, for these a person goes for buying an insurance. But there are many different factors which buyer analyse before buying and have different preferences. The study conclude that consumer buy the insurance policy by giving importance to various factor such as tax benefits, flexibility, liquidity, website /app and interest rate/return. The higher income group are currently the major market for insurance companies. The consumer also goes through the advertisement before buying the policy. The consumer preferred LIC and IFLI companies for buying insurance policy. Most consumer are satisfied by their current companies, making them feel delightful might help to company to capture the competitor’s market. Overall, the consumer is satisfied towards buying insurance policy. So, the companies can plan for the policy keeping the competitors i.e., consumer preferred companies and other buying factor which consumer consider before buying. It will help the company to create better strategies. Target marketing and promotion marketing strategies are recommended to the company.

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Contextual Background IntroductionIndustry scenario Insurance industry in India has seen a major growth in the last decade along with an introduction of a huge number of advanced products and new entities entering in the market. This has led to a tough competition with a positive and healthy outcome. The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities. The banking regulator has allowed new entities such as payment banks to be created recently, thereby adding to the type of entities operating in the sector. However, financial sector in India is predominantly a banking sector with commercial banks accounting for more than 64% of the total assets held by the financial system. The Government of India has introduced several reforms to liberalise, regulate and enhance this industry. The Government and Reserve Bank of India (RBI) have taken various measures to facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These measures include launching Credit Guarantee Fund Scheme for MSMEs, issuing guideline to banks regarding collateral requirements and setting up a Micro Units Development and Refinance Agency (MUDRA). With a combined push by Government and private sector, India is undoubtedly one of the world's most vibrant capital markets. The insurance industry has 58 insurance companies, including 24 life insurance and 34 non-life insurance companies in the Indian market who compete on price and services to attract customers, whereas there are two reinsurance companies. The industry has been spurred by product innovation and vibrant distribution channels, coupled with targeted publicity and promotional campaigns by insurers. Market scenario – As of March 2021, AUM managed by the mutual funds industry stood at to Rs. 3,142,764 crore (US$ 425.87 billion). Inflow in India's mutual fund schemes via systematic investment plan (SIP) were Rs. 96,080 crore (US$ 13.12 billion) in FY21. Equity mutual funds registered a net inflow of Rs. 8.04 trillion (US$ 114.06 billion) by end of December 2019. Another crucial component of India’s financial industry is the insurance industry. Insurance industry has been expanding at a fast pace. The total first 6|P age

year premium of life insurance companies reached Rs. 2.59 lakh crore (US$ 36.73 billion) in FY20. Furthermore, India’s leading bourse, Bombay Stock Exchange (BSE), will set up a joint venture with Ebix Inc to build a robust insurance distribution network in the country through a new distribution exchange platform. Fund raising from the equity market grew by 116% to Rs. 1.78 lakh crore in Initial public offering (IPOs), Offer for Sale (OFS) and other market issuances in 2020. In FY20, the number of listed companies on the NSE and the BSE were 1,795 and 5,377, respectively.

The following are some of the major investments and developments in the Indian insurance sector. • • •

Companies are trying to leverage strategic partnership to offer various services as follows: In FY21 (until March 2021), premium from new business of life insurance companies in India stood at US$ 31.9 billion. In India, gross premiums written of non-life insurers reached US$ 26.52 billion in FY21 (between April 2020 and March 2021), from US$ 26.49

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billion in FY20 (between April 2019 and March 2020), driven by strong growth from general insurance companies. In March 2021, health insurance companies in the non-life insurance sector increased by 41%, driven by rising demand for health insurance products amid COVID-19 surge. In February 2021, Bharti AXA General Insurance launched its ‘Health AdvantEDGE’ health insurance scheme to provide holistic cover against accelerating costs associated with medical requirements and other healthcare facilities. In February 2021, ICICI Lombard General Insurance, a non-life insurance firm in the private sector, has been authorised by the International Financial Services Centre (IFSC) to establish an IFSC Insurance Office (IIO) in GIFT City in Gandhinagar, Gujarat.

Competitor’s analysis – So far as the industry goes, LIC, New India, National Insurance, United insurance and Oriental are the only government ruled entity that stands high both in the market share as well as their contribution to the Insurance sector in India. There are two specialized insurers – Agriculture Insurance Company Ltd catering to Crop Insurance and Export Credit Guarantee of India catering to Credit Insurance. Below are the competitors in the life insurance sector Private Sector Companies: Aegon Life Insurance Co. Ltd., Aviva Life Insurance Co. India Ltd., Bajaj Allianz Life Insurance Co. Ltd., Bharti AXA Life Insurance Co. Ltd., Birla Sun Life Insurance Co. Ltd., Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd., DHFL Pramerica Life Insurance Co. Ltd., Edelweiss Tokio Life Insurance Co. Ltd, Exide Life Insurance Co. Ltd., Future Generali India Life Insurance Co. Ltd., HDFC Standard Life Insurance Co. Ltd., ICICI Prudential Life Insurance Co. Ltd., IDBI Federal Life Insurance Co. Ltd., India First Life Insurance Co. Ltd, Kotak Mahindra Old Mutual Life Insurance Ltd., Max Life Insurance Co. Ltd., PNB MetLife India Insurance Co. Ltd., Reliance Life Insurance Co. Ltd., Sahara India Life Insurance Co. Ltd., SBI Life Insurance Co. Ltd., Shriram Life Insurance Co. Ltd., Star Union Dai-Ichi Life Insurance Co. Ltd., Tata AIA Life Insurance Co. Ltd. Private insurers like HDFC, ICICI and SBI have been some tough competitors for providing life as well as non-life products to the insurance sector in India.

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Product/Service/ Market Studied – Life insurance companies offer coverage to the life of the individuals, whereas the non-life insurance companies offer coverage with our day-to-day living like travel, health insurance, our car and bikes, and home insurance. Not only this, but the non-life insurance companies provide coverage for our industrial equipment’s as well. Crop insurance for our farmers, gadget insurance for mobiles, pet insurance etc. are some more insurance products being made available by the general insurance companies in India. The life insurance companies have gained an investment prospectus in the recent times with an idea of providing insurance along with a growth of your savings. But the general insurance companies remain reluctant to offer pure risk cover to the individuals.

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Types of Life Insurance Policies

Overview

Term Life Insurance

Provides full risk cover against any type of eventuality.

Whole Life Insurance

Offers life insurance coverage till 100 years of age.

Endowment Life Insurance Policy

Provides the combined benefit of life insurance cum saving.

Money Back Insurance Policy

Provides periodic return along with the benefit of life insurance cover.

Savings & Investment Insurance Plans

Provides an opportunity to save and gain long-term investment returns.

Retirement Insurance Plans

Helps to create a retirement corpus, so that you can retire gracefully.

ULIP Life Insurance Plans

Offers the benefit of investment cum life insurance.

Child Insurance Policy

Helps to secure the future of your child.

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Brief Company & Dept. Profile

INSPLORE is an expert in financial advisory, realize the need of every customer who is looking for financial independence and help them to reach that level of financial freedom. It understands how the perception regarding the value of money changes as per different individuals’ desires. We extend a helping hand to customers by assisting them in making crucial financial decisions and managing their wealth effectively to ensure that our customers stay stress free and get rid of their financial worries. It is also a preferred talent acquisition partner, for Multinationals and leading Indian Businesses. It provides recruitment and talent acquisition services to both large and small organisations. The Experts are helping the talent seeker and the Job Seeker to find each other: ‘We Inspire, You Explore’. IdentityInsplore is dedicated to empower with relevant Jobs & Growth Opportunities. We are a successful Conglomerate with the experts of Financial Advisors on our panel. Have a Team of Professionals working every day to provide HR as well as Financial Solutions to the Companies/ Clients. MissionThrive to provide best wealth management advice through honest financial solutions as well as inspire the candidates to explore job opportunities across various industrial sector. VisionOur vision is to become the most trusted financial advisor as well as most valuable recruitment service provider.

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Department profile: Life insurance product company info – Headquartered in Mumbai, India First Life Insurance Company Limited (India First Life), with a paid-up share capital of INR 663 crore, is one of the country's youngest life insurance companies. Our key differentiators are our simple, easyto-understand products that are fairly-priced and efficiently serviced. It started as a joint venture of between two of India’s – Bank of Baroda (44%) and Andhra Bank (30%), and UK’s financial and investment company Legal & General (26%). ‘Traditional Money Savings Plan: For the modern you who values tradition!’ India First MahaJeevan Plan and IndiaFirst MahaJeevan Plus Plan is a participating, non-linked endowment plan that offers an assured maturity amount plus a revisionary bonus declared by the company every financial year end and terminal bonus, if any.

Role in company- We are in the sales and marketing department. - India First Mahajeevan plan and India First Mahajeevan plus plan is the product which is assigned to us. - Along with it we are engaged in creating the promotional strategies for the company. - Worked together with corporate sales manager. - Guide the new intern about the product and market scenario. - Work is done along side with mentor - We were taught about different investment policies & how to compute taxes. - Daily sharing the market update and the motivational quotes to mentor. - Daily reporting for the data sheets of prospective client. - Presenting a power point presentation about the bank & insurance industry and explaining about different companies, their market share and all the relevant information. - Working on tax calculation on different policy and scheme with mentor.

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SWOT AnalysisConsulting firms provide professional services to businesses. There is a lot of competition among consulting firms to secure and maintain clients, and many factors that lead a client to select one consulting firm over another. As such, it is helpful for consulting firms to regularly assess the marketplace and their competitiveness in the market. One tool for analysing a firm’s competitive market position is the SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. This tool utilizes data to provide a realistic overview of the market and competitiveness. The SWOT analysis of a firm can provide a snapshot of current conditions for business. Strength – -

Strong compliance Have the existing loyal customer Working with companies’ products which have excellent reputation. Strong and motivated team Quality and effective performance Working with high standards and privacy.

Weakness – - Slow process due to paper work - Working with Limited product and services - Available in limited location (Physical presence) Opportunity – -

Expanding the presence in different location. Introduction of ERP or using new technology for managing the customer. Taking the government contract Getting multiple projects from different companies

Threats – -

Changing laws and regulations Less demands for certain projects’ product and services Large Competitors products or services Weak financial position of customer due to pandemic.

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Research Problem – In India still many people don’t have the life insurance policy which is very important from safety point. People are not aware about well policies from different companies. The factor what the consumer analyses before buying the policy and their current position can provide a useful insights to companies. The preference about the companies will also provide insights about their buying Behavior. The research paper will discuss all the points. The inference would also be very useful for the companies to understand the buying behaviour and will provide the base to management for making better strategies according to customer behaviour and preferences.

Research Objectives – The research will study the buying behaviour of insurance policy and the factor they majorly considered while buying a policy. The research will also aim to understand the consumer preference and their current position. Primary – -To understand the buying behaviour of consumer -Understanding the relation between the household income and insurance policy. Secondary – -Consumer preference for IFLI Company -Impact of advertisement

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Research HypothesisHypothesis 1 Null Hypothesis: There is no significant impact of Interest rate with respect to buying behaviour of consumer. Alternate Hypothesis: There is a significant impact of Interest rate with respect to buying behaviour of consumer.

Hypothesis 2 Null Hypothesis: There is no significant impact of household income with respect to insurance policy. Alternate Hypothesis: There is a significant impact of household income with respect to insurance policy.

Hypothesis 3 Null Hypothesis: All the factor are not differed in their level of importance. Alternate Hypothesis: All the factor are differed in their level of importance.

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LITERATURE REVIEW

Sandeep Chaudhary1 (2016) - The current study examines the various factors that affect the consumer perception towards life insurance policy. Data was collected with the help ...