A PROJECT REPORT

ON

“RISK ANALYSIS AND RISK MANAGEMENT IN

INVESTING IN INSURANCE POLICES”

(FINANCIALS RISK MANAGEMENT)

Submitted in Partial fulfillment for the Award of the Degree of

MBA

Submitted By: AKASH

University PRN: 1928100310

BHARATI VIDYAPEETH DEEMED UNIVERSITY SCHOOL

OF DISTANCE EDUCATION
Academic Study Centre - BVIMR, New Delhi
An ISO 9001:2008 Certified Institute
NAAC Accredited Grade “A” University

(2019-2021)

1
 Student Undertaking Certificate of Originality

I AKASH , a student of MBA 3rd semester would like to declare that the
Project Report Entitled “RISK ANALYSIS AND RISK MANAGEMENT
IN INVESTING IN INSURANCE POLICES” Submitted to Bharati
Vidyapeeth University Pune, School of Distance Education Pune , Academic
Study Centre BVIMR New Delhi in partial fulfillment of the requirement for
the award of the degree.

It is an original work carried out by me under the guidance Mr. Yashwant

Kumar

All respected guides, faculty member and other sources have been properly
acknowledged and the report contains no plagiarism.

To the best of my knowledge and belief the matter embodied in this project is a
genuine work done my me and it have been neither submitted for assessment to
the University nor to any other University for the fulfillment of the requirements
of the course of study.

AKASH

2
 INDEX

S No. Particulars Page No.

1 Introduction 3-7

2 Insurance Sector In India 8-13

3 Research Methodology 14

4 Scope of Study 15-20

5 Analysis 21-30

6 Findings 31-32

7 Questionnaire 33-34

3
Introduction
India is the second largest country in the world in the respect of population.
The GDP growth of India was 5.4% in year 2013.the insurance sector is
expected to grow at a very high rate in next 10-154 years and its
contribution in GDP is going to rise in ahuge manner as a large amount of
population is still uninsured especially in urban areas.

What is Insurance?
Insurance is a contract between the insurance company (insurer) and the
policyholder (insured). In return for a consideration (the premium), the
insurance company promises to pay a specified amount to the insured on the
happening of a specific event. We all need insurance because it not only
transfer the risk but also have other benefits like tax saving.

The first Indian insurance company was formed in the year 1818 which was
oriental life insurance company and the Indian life assurance companies act
1912 was the first statutory measure to regulate life business which was
finally amended in the year 1938. In the year 1999 Insurance Regulatory and
Development Authority (IRDA) was constituted as an autonomous body to
regulate all the insurance companies in India which came in power in the
year April 2000. Under the current regulation a foreign companies cannot
have more than 26% of stake in joint venture.

Benefits of insurance

Investment option It is good investment option because insurer will not get the
insurance cover but also the in some amount of return.

Tax benefits We can also save tax up to RS 100000.

Loan on insurance Customer can also take loan against insurance policies.

Habits of saving It also develops the habits of saving certain amount of money
which can be helpful in future.

4
 Employment An increase in the penetration of insurance is going to generate
generation more employment as insurance policies will require more advisors.

Social benefits It is going to help in developing the infrastructure of the counrty.

Table 1.1

Types of life insurance polices

The different types of life insurance policies are following:

 Whole life insurance plans

 Endowment insurance plans
 Term Insurance plans
 Pension and savings plans
 Unit linked insurance plans

Risk
A person carries various types of risk in his life term and it can be classified
in many ways. But first we need to understand the meaning of risk. It is
difficult to give the exact definition of risk but it can be defined in the
respect of insurance sector as the possibilities of unfavourable event happing
like death or physical damage.

The various types of the risks are following:

 Market risk
 Interest rate risk
 Inflation risk
 Political risk
 Financial risk
 Pure risk
 Particular risk

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Out of all these risk the insurable risk are following:

 Financial risk: The outcome of risk which can be measured in

financial term like loss of life etc.

 Pure risk: Pure risks are those risks where there is no possibility
of making a profit.
 Particular risk:

These are the three risks which can be insured by having insurance
policies and the insured persons can transfer his risk to insurer.

Risk analysis and Risk management:

As there are different types of in insurance police in the market it becomes
difficult for a customer to understand the actual value of its life i.e. Human
Life Value. Before buying an insurance police a person should to knowing
the purpose for which he is buying the insurance and how to analyse its
value.

It might be confusing for many that for what value they should buy
an insurance policies i.e. how they are worth for.

There are two methods to calculate the human life value

 Income replacement method

 Simple method

Income replacement method: This method takes into consideration the

future income earning potential of a person during the remaining years of
their working life. It is a two-step method:

Step 1: Calculate the income of person in the future working years.

Step 2: this is its HLV, now take inflation in account and calculate how
much should be enough for his family in case of his death.

6
Simple method: In this method we consider the present interest rate in a
fixed deposit in a bank and then we calculate that how much amount person
should get insured.

But we always need to keep in mind that HLV in not a onetime calculation
and it should get revised from time to time.

Now as there are many insurance policies in the market it becomes difficult
to decide which will be suited best for you. So it is always best for anyone to

take the polices which is best suited for them. Anyone can easily find
out which policies best suited for them by following these three steps:

Step 1: Identify your needs: you always need to understand you goals
and need after considers these factors:

 marital status
 future financial goals
 number and age of dependants on you
 employment status
 income – which includes salary, business income and income
from other sources and investments
 existing protection, savings and retirement provision
Step 2: Quantifying needs: Then you need quantify your needs
and then calculate suitable amounts that you need to save in
future the future.

Step 3: Priorities your needs: then you need to priorities you needs
based upon your requirements. It is important because you have only
a specific amount of money to invest and that money should be
invested in a best product mix.

Step 4: Compare: it is always best for you to compare the

policies which you are going to take with all the other similar
polices in the market.

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 So this how any individual can decide on what polices is best suited
for him and whether he should consider to by that specific insurance
policies or not.

Industry analysis:
The insurance is established a way long before and it is growing
well since then. The first insurance company was formed United
States in the year 1782 in South California. Since then various
insurance company are founded and today hundreds on insurance
companies are operating well.

Insurance sector in India

1818 saw the advent of life insurance business in India with the
establishment of the Oriental Life Insurance Company in Calcutta but in
1968, the Insurance Act was amended to regulate investments and set
minimum solvency margins. But actually grow in the insurance sector in
India begun from the year 2000 with the formation on IRDA. IRDA is a
regulatory body to manage working of all the insurance company in
India.Foreign companies were allowed ownership of up to 26% and invest in
insurance policies in India. The insurance sector is a colossal one and is
growing at a speedy rate of 15-20%. Together with banking services,
insurance services add about 7% to the country’s GDP. Life insurance
Company has acquired in India.With the entry of new private players
insurance sector has seen a huge growth in last five years and it is expected
to grow in future.

The various data which is represents the market share of top five
insurance companies in India

8
 Sales
6.25%
6.02%
3.32%
2.14%
ICICI Prudential
SBI Life
HDFC Standard Bajaj Allianz
Lic

68.70%

Figure 1.1

Most of the Indian population are without life insurance cover and still a
huge amount of growth is possible in Indian environment. At presentpeople
do not prefer to invest their saving in insurance policies but it is expected to
change in future.

Company profile

The AXA Group

AXA is a world leader in financial protection and wealth management, with

major operations in Western Europe, North America and the Asia/ Pacific
area. AXA services 102 million customers throughout the world. In total the
AXA group has approximately 160,000 employees and distributors, working
in around 50 countries.

The AXA group reported total revenue for the first half of 2013 of 37.8
billion. AXA group has a strong, long standing history. The group can trace
its roots right back to the 18th century. After a successions of mergers,
acquisitions and name changes involving some of the leading insurance
companies in the UK and around the world, the name AXA was first
introduced in 1985.

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Today, 102 million clients in the world trust AXA and the AXA name. In
2003, to provide a clearer vision of the transformation of its core business
from traditional insurance to the broader concept of financial protection, the
AXA group added the words financial protection as a base line to its logo.

Bharti Enterprises
Bharti Enterprises is a pioneer in telecom sector and the group is widening
its horizons by entering new business areas such as insurance and retail.
Bharti Enterprises has created a vantage position for itself in the global
telecommunications sector. Bharti Airtel Limited occupies good status in
mobile telephony in India while its brand 'Beetel' is the largest manufacturer
and exporter of world class telecom terminals.

Founder of Bharti Group is Sunil Mittal. In 1983, Sunil Mittal entered into
an agreement with Germany's Siemens to manufacture the company's push-
button telephone models for the Indian market. In 1986, Sunil Bharti Mittal
incorporated Bharti Telecom Limited (BTL) and his company became the
first in India to offer push-button telephones, establishing the basis of Bharti
Enterprises. This first-mover advantage allowed Sunil Mittal to expand his
manufacturing capacity elsewhere in the telecommunications market. By the
early 1990s, Sunil Mittal had also launched the country's first fax machines

and its first cordless telephones. In 1992, Sunil Mittal won a bid to build a
cellular phone network in Delhi. In 1995, Sunil Mittal incorporated the
cellular operations as Bharti Tele-Ventures and launched service in Delhi. In
1996, cellular service was extended to Himachal Pradesh. In 1999, Bharti
Enterprises acquired control of JT Holdings, and extended cellular operations
to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of
Skycell Communications, in Chennai. In 2001, the company acquired control
of Spice Cell in Calcutta. Bharti Enterprises went public in 2002, and the
company was listed on Mumbai Stock Exchange and National Stock
Exchange of India. In 2003, the cellular phone operations were rebranded
under the single Airtel brand.

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Bharti AXA life insurance Ltd.
Bharti AXA Life Insurance is a joint venture between Bharti, India's
leading private telecom company and AXA, world leader in financial
protection and wealth management. Their philosophy is to build around
the promise of making people "Life Confident"...

Bharti Enterprises and AXA Asia Pacific Holdings Limited (AXA)

signed an agreement to establish a joint venture named Bharti AXA Life
Insurance Company Limited to carry on life insurance business in India.

August 26, 2005, New Delhi : Bharti Enterprises and AXA Asia Pacific
Holdings Limited (AXA) signed an agreement to establish a joint venture
named Bharti AXA Life Insurance Company Limited to carry on life
insurance business in India.

Under the agreement AXA has a 26% equity interest in the joint venture,
while Bharti holds the balance. AXA, a global leader in insurance business,
enabled the company to have access to AXA’s global life insurance and asset
management expertise. Bharti brought its strong local market knowledge,
reputation and India-wide retail presence.

“The insurance sector in India provides a mega opportunity for private

players like Bharti Axa Despite the strong growth witnessed by the sector in
the recent years, nearly 80% of the Indian population is without life
insurance coverage. As one of India’s leading business conglomerates
having an established brand and a significant presence in the retail space,
Bharti has inherent advantages in being a part of this growth story. In AXA,
Bharti has a global leader as its partner, one that is known for its expertise
and best practice across the world. More importantly, this new venture also
fits into our strategy of taking on projects that make a difference to the
society at large.

This joint venture is an opportunity for AXA to enter the Indian life
insurance market, one of the most attractive emerging insurance markets.

11
India is a fast growing economy and a huge market with more than 1.1
billion people. This coupled with a large middle class and increasing income
levels will drive growth in the insurance market. Bharti is a well-established
and financially strong group whose capabilities and network will be of
significant value to the joint venture. The joint venture invested in the region
of Rs. 500 crores (115 Million USD) over the first three to four years of
operations, reflecting both partners’ commitment to quickly establish a
strong foothold in the Indian market. The joint venture commenced business
in the first half of 2006, subject to IRDA, FIPB and other statutory
approvals.

Company Products
BHARTI AXA offers a range of innovative, customer-centric products
that meet the needs of customers at every life stage. Its 20 products can
be enhanced with up to 6 riders, to create a customized solution for each
policyholder. Their products are of different categories like child plan,
term plans, savings & investment plan and health plan.

Child Plan: Child Plan is a plan specifically designed to take care of

financial needs of your child. Child plan provides with necessary funds that
will take care of child’s education, marriage etc.

Term Plan: A risk plan which provides comprehensive cover for your
family in the unfortunate event of untimely demise. A term life insurance
plan provides good cover at relatively nominal cost and has no survival
benefits.

Investment Plan: Popularly known as ULIP, an investment plan invests

part of your savings in equity or debt market as per your preference..

Group plans: With Bharti AXA Life insurance products provide financial
security and protection to your loved ones. two group plans which are
Bharti AXA Life Shield and Bharti AXA Life Sanjeevani.

Health Plan: Slightly different from health insurance, health plan

provides cover for surgery costs, critical illness. A lump sum is paid

12
 irrespective of actual hospital bill. Easy Health is Bharti AXA’s health
plan.

SWOT analysis of Bharti AXA

Strengths

• Use of brand affinity of Airtel to promote insurance sales.

• Bharti brought its strong local market knowledge, reputation and India.

• Associated with AXA world leader in financial protection and

wealth management, ranked No 13 in the Fortune 500 list of global
companies and has enabled the company to have access to AXA’s global
life insurance and asset management expertise.

• Strong partner Bharti - provides access to customer base of more

than 20 million

Weakness

• Late entrant in the insurance sector

• Thin distribution network all over the nation

• Very less number of product offering in comparison to its competitors

• Lack of confidence among the customers as parent company does

not have a financial background.

Opportunities

• Strong growth of unit linked market at the mass affluent end.

• Potentially with 20% insurance cross sale only to new telecom

customers, this network can yield 48 lakh policies per year with sum
13
 assured of nearly Rs 58000 cores.

Threats

• Many more companies are lining up to enter into Indian

Insurance Industry.

• Consumer’s preference is still more towards public sector

insurance companies.

Research methodology

Statement of the problem:

.As the insurance sector expected to grow around 15-20% in next 10 years it
is important for a customer to understand the basis steps to buy an insurance
policy. It is also going to help companies to understand that how can they
convince there customers to buy an insurance policies.The project has been
undertaken with the aim to analyse insurance firm and how to calculate your
need analysis.

Objective of the study:

 To make people aware about thesteps they should consider
before buying insurance policies.
 To know about various analytical tools that can value an
insurance policy.
 To find whether need analysis is compulsory before buying
an insurance police.

SCOPE OF THE STUDY

. The scope of the study is limited to only insurance & no other financial
instruments were considered .The study will help us to know the perception
of customers about insurance policies. The various risks involves in buying
14
 an insurance policy and how to tackle it. It will also help us to get a basic
knowledge about need analysis calculation and its requirement.

Methodology
Primary data:

Primary data is the one which is collected specifically for the purpose of the
project, and can be obtained from various people working in the
organization. For this study the primary data was collected from following
sources.

 Questionnaires
 Discussion with manager.

Secondary data:

It refers to the statistical material which is not originated by the investigator

himself but obtained from someone else's records, or when Primary data is
utilized for any other purpose at some subsequent enquiry it is termed as
Secondary data. However, it plays a significant role in the project. For this
study the secondary data was collected from the following sources.

 Books related to risk management and insurance

 Websites related to risk management and insurance

.Limitations

The study is limited due to constraint of time and information

available Possibility of error in data collection because many of

respondent may

have not given actual answers of questionnaire.

This project only talks about three risk analysis tools there are
others tools also which can be used.

15
 The study had done only on 100 respondents.

Data analysis

Risk and Need analysis

As a customer you should always know your value in the market so that
you can take a police according to your exact value. Three various
approaches are used to determine the amount of life insurance to own:

1. Human life value approach

2. Needs approach
3. Capital retention approach

Human life value approach

HLV can be defined as the present value of the family’s share of the
deceased breadwinner’s future earnings. It can be calculated by the
following steps:

1. Estimate the individual’s average annual earnings over his or

her productive lifetime.
2. Deduct federal and state income taxes, social security taxes, life
and health insurance premiums and cost of self maintenance.
3. Determine the number of years from person’s present age to
the contemplated age of retirement.
4. Using a reasonable discount rate, determine the present value of
the family’s share of earnings for the period in the previous step.

16
 Examples: Assume that Raj, age 25 is married and has two children. He
earns Rs25000 annually and plans to retire at age of 65. Of this amount
Rs10000 is use for federal and state taxes, life and health insurance and his
personal needs. The remaining 15000 is used to support his family. What
should be value of insurance if discount rate is 6%?

Solution: Using the give discount rate the present value of Rs1
payable annual for 40 years is Rs15.05

So Raj has a human life value of (15000*15.05)= Rs225750

Needs approach

The second method for estimating the amount of life insurance to own is the
needs approach. The various family needs that must be met if the family
head will die are analysed. The most important family needs are following:-

Estate clearance fun

Income during the readjustment

period Income during the

dependency period Life income

to the surviving purpose Special

needs

Retirement needs

By the help of need analysis chart we can know the amount of

insurance we need in the following ways-
Cash needs
Funeral cost 10000
Uninsured medical bills 3000
Instalment debts 12000
Probate cost 3000

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Total estate 28000
clearance fund
Income needs
Readjustment period 14400
Dependency period 108000
Total income needs 122,400
Special needs
Mortgage redemption
Fund
Emergency Fund
College education fund
Total special need 235000
Total need 385400

Checking account and 10000

savings

Mutual fund and 25,000

Securities

IRAS PLAN 4200

Employer saving plan 4500

Private pension death 10000

plan

Current life insurance 50000

Total assets 103400

Additional life
insurance needed

Total needs 385400

Less total assets 103700

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 Additional life 281700
insurance needed

The first part of worksheet shows the amount needed to meet various cash
needs, income needs and special needs. The second part analyse your
present financial assets for meeting these needs and the final part determine
the amount of life insurance needed.

Capital retention approach

This method preserves the capital needed to provide income to the

family. This methods works in following step:

Prepare a personal balance sheet

Determine the amount of income producing

capital Determine the amount of additional

capital needed

Preparing a personal balance sheet:

The first step is to prepare a personal balance sheet that lists all assets and
liabilities .Example

Assets

House 125000
Automobiles 15000
Personal and household property 45000
Securities and investment 28000
Checking account 2000
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 Individual and group life insurance 200000
Private pension death plan 20000
Total 435000
Liabilities

Mortgage 100000

Auto loan 10000

Charge a/c and other bills 5000

Total 115000

Determining the Amount of income-Producing Capital

The next step is to determine the amount of income producing assets that can
provide income to the family. This step is performed as follows:

Total assets 435000

Less:
Mortgage payoff 100000
Auto loan and credit
Credit card 15000
Final expenses 10000
Emergency fund 10000
Educational fund 60000
Non income producing capital 185000
Total deduction 380000
Capital income now available 550000

Determining the amount of capital needed

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 The final step involves a comparison of the income objective with
other sources of income such as Social security survivor benefits.
Example

Income objective for family 30000

Less:
Capital now available for income -33000
(55000*6%)
Social security survivor benefits -12000
Income shortage 147000
Total new capital 245000
Required(14700/00.6)

So these three analysis tools can be used by the customer to determine the
exact value of a life insurance required customer to support their family. It
will also help them to decide on which type of polices they should invest
according to their requirements. It will also help in determining amount of
risk in that policy.

Percentage analysis

QUESTION NO. 1)

Businessman 54
Professional 35
Students 6
Housewife 5
Table no. 4.1

Figure 4.1

Occupation of respondent
6
5
Businessman
Professional Students
21 Housewife
35 54
 Interpretation:

Out of 100 respondents, maximum respondents belong to business

class,followed by professional,then studentsand the minimum
respondents are from housewife.

QUESTION NO. 2)

Having insurance
already

S.NO. Particular Response

A Yes 92

B No 8

Table no. 4.2

Figure 4.2
Insurance Already
8

Yes No
92

Interpretation:

From above chart,we can infer that 92% respondents already have insurance
policies, whereas 8 % does not have insurance policies.
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QUESTION NO. 3)
Awareness of life insurance companies

Option Particular Response

a Print media 20
b Electronic media 25
c Agents 50
d Other 5
Table no. 4.3

Awareness of life insurance

companies

5
20
Print media
Electronic media Agents
Other

50 25

Figure 4.3

Interpretation: From this chart we can say that majority of respondents are aware of insurance
policies through agents, followed by electronic media, then print media.
23
QUESTION NO. 4)

Main purpose to buy insurance policies

Option Particular Response

A Tax Saving 24
B Savings 15
C Protection 49
D Pension 10
E Investment 2
Table no. 4.4

Main purpose to buy insurance

policies

2
10
24 Tax
Saving Protection

15 Pension
49 Investment

Figure 4.4

INTERPRETETION:

On the basis of above analysis,we can interpret that main reason for
buying insurance policies is because of security reasons as 49% of
respondent agreed with it.
24
QUESTION 5)

Your preference in buying Insurance policies

Option Particular Response

a Goodwill of the company 19
b Range of products 20
c Features of the product 50
d Services offered by company 6
e Returns of the bonds 5

Table no. 4.5

Your preference in buying Insurance Policies

Goodwill of the company

5
6 19 Range of products

Features of the product

20
Services offered by
50 company
Returns of the bonds

Figure 4.5

INTERPRETETION:

The graph shows that 50 out of 100 respondents buy an insurance policy after
looking at the features of the product which is followed by 20 respondent
who looks at different range of products and 19 looks at good will of
companies.

So the products with good features have more demand among customers.

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QUESTION 6)

You purchase an insurance police under someone else influence

Option Particular Response

A Yes 63
B No 37
Table no. 4.6

You purchase an insurance

policies under someone else
influence

37
Yes
63 No

Figure 4.6

INTERPRETETION:

According to graph out of 100 respondent 63% agreed that they buy
insurance due to someone else influence not according to their
requirement.

QUESTION 7)
Done need analysis before
buying an insurance police
Option Particular Response
A Yes 33

26
 B No 67

Done need analysis before buying an insurance policy

33
Yes
No

67

Table no. 4.7

Figure 4.7

INTERPRETETION:

According to the graph out of 100 respondent 67 customers do not prefer to

do need analysis before buying insurance policies. It shows that customer
do not look at their needs before buying an insurance policies

QUESTION NO. 8)

Insurance plan you

prefer to buys

Option Particular Response

A Protection plan 57
B Investment plans 9
C Pension plan 10
D children plan 24
Table no. 4.8

27
 Insurance plans you prefer to buy

24
Protection plan
Investment plans

Pension plan
10 57 children plan

Figure 4.8

INTERPRETETION:

On the basis of above analysis we can say that customers are more
interested in protection plan and children plan only. It shows that
customers do not think insurance as an investment opportunity.

QUESTION NO. 9)

Expectations from life

insurance companies

Option Particular Response

A Innovative Products 5
B Attractive Riders 2
C Reasonable Premium 47
Better Customer
D Service 24

28
 E High Risk Coverage 22
Table no. 4.9

Expectations from life insurance

Companies
2
5
22Innovative Products
Attractive Riders Reasonable Premium

47 Better Customer Service

24 High Risk Coverage

Figure 4.9

INERPRETETION:

The graph shows out of 100 respondent 47 expect reasonable premium from
insurance companies. So it shows that people prefer to buy insurance policies
when the premium is low.

Question No. 10)

satisfied with
previous insurance
plan you bought

Option Particular Response

A Yes 19
B No 12

29
 C can't say 2

Table no. 4.10(a)

Satisfied with previous insurance plan you bought (done need analysis)

Yes
12 No
can't say
19

Not did need analysis

Option Particular Response

A Yes 20
B No 44
C can't say 3

Response
3

20a. YES b NO

44

30
Interpretation:

According to graph 20 out of 67 respondents who not did need analysis are
not satisfied with their insurance plan which is 27% and 19 out of 31
respondents who did need analysis are satisfied with their insurance plan
which is 61%. It shows that more percentage of people will satisfied with
their police if they will do need analysis.

Findings

The findings drawn during the project are as follows:

In occupation group most of the customers werebusiness man and

second most customers were self-employed and least was associated
with government services.

Awareness about life insurance companies were mostly done by

agents.

Out of 100 respondent 49% of buy an insurance policy for security

purpose and 24% to save tax.

Only 33% of customers do need analysis before buying an insurance

policy.

Most of the customers looked for a reasonable premium before

buying an insurance policy.

Most of the customers purchase insurance policy under the influence

of someone else.

Customers who do need analysis before buying an insurance policy

were most satisfied with their products.

Most of the respondent like to buy a protection plan polices which

was followed by child plan.

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 Knowledge about different tools that can be used to calculate need
analysis.

SUGGESTIONS

 Customers should be made more aware of need analysis as there is

low awareness level among them.
 Insurance companies should take more effort in spreading awareness
about need analysis calculation.
 Insurance companies should also give training to their advisors to
explain about need analysis calculation to customer properly as
customer how do need analysis are more satisfied with their policies.
 Insurance companies should have a reasonable premium rate as most
of the customers prefer so.

CONCLUSION

Insurance sector in India is growing at a very high rate and it is expected to

grow more in future. This study had made an attempt to understand to
understand the various risk involves in investing in insurance an how to
manage those risk. I observed that most of the people buy an insurance
police under someone’s influence and not according to their requirement.
Also there is a very low awareness about need analysis calculation. Many
people do not pay their premium as they did not purchase their policies
according to their requirement.

Customer satisfaction plays a very important role in increasing the market

share of the company and it is very hard to get. So insurance companies
should sell their insurance policies according to needs of customers in this
way they can easily acquire customer’s loyalty.

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Q1) Occupation
a) Businessman [ ] b) Professional []

c) Students [ ] d) House
wife [ ]

Do you have Insurance?

a) Yes[ ] b) No[ ]

Awareness of Life Insurance Companies:-

a) Print media[ ] b)Electronic media []
c) Agents [ ] d) Others [ ]

What is the main purpose to buy insurance policies?

a) Tax [ ]
b) Saving [ ]
c) Protection [ ]
d) Pension [ ]
e) Investment [ ]

What do you look in an insurance policy before buying it?

a) Goodwill of the company [ ]

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 b) Range of products [ ]
c) Features of the product [ ]

d) Services offered by company [ ]

f) Returns of the bonds[ ]

Do you purchase an insurance police under someone

else influence?
a) yes [ ] b) No[ ]

I prefer to do need analysis before buying an insurance police:-

a) Yes[ ] b) No [ ]

Which Insurance plan you prefer to buys?

a) Protection plan [ ] b) Investment plans [ ]

c) Pension plan [ ] d) children plan [ ]

What do you expect from life insurance companies?

a) Innovative Products [ ] b) Attractive Riders [ ]

c) Reasonable Premium [ ] d) Better

Customer service [ ]

e) High Risk Coverage [ ]

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