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Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100 percent shareholding in AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance Company Limited is officially launched on February 1, 2006. This was after obtaining the required regularity approvals from the Registrar of Companies and the Insurance Regulatory and Development Authority. Reliance Life Insurance is the part of the Reliance Capital. Reliance Life Insurance has plenty of plans on the anvil. It has also 118branches, with strong presence in South and a bouquet of products catering savings protection and investment need of individuals and corporate. The head-office of it is at Chennai. The company has already added 600 employees in addition to the 1000 plus staff of the erstwhile AMP Sanmar Life Insurance Company Limited. Reliance Life Insurance aims to be the consumer’s preferred life insurer by understanding and meeting his needs.
Think Bigger, Think Better!
Conclusion:
• It should be noted that the appraisal form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common appraisal form for every job position in the organization.
• The time period for conducting the appraisal should be revised, so that the exercise becomes a continuous phenomenon
• A neutral panel of people should do the appraisal and to avoid subjectivity to a marked extent, objective methods should be employed having quantifiable data
• Transparency into the system should be ensured through the discussion about the employee’s performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.
Limitations:
• Lack of awareness among the people
• Perception of the people towards the insurance sector
• Lack of awareness about the earning opportunity in the insurance sector
• Increased competition
• The opinion expressed by the respondents may be biased.
• The attitude of the research might be biased.
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The life insurance and pension sector is set for rapid changes and growth in the coming years. In order to do well in the long run, a company must excel in delivering service, building trust and offering new products.
There was a study of various life insurance companies and questionnaire was prepared to study the working and consumer preferences about life insurance. A study of life insurance was done.
The downward movement of premium rates (if any) as a result of competition has not been factored into the assumptions.
Size of the market would suggest the nature of the challenge before the various channels; the channels would in turn impact the size that can be achieved
Finally the conclusions were drawn out of the data collected through various sources.
Conclusions:
Out of the 500 people surveyed, maximum were salaried i.e. 43.80% people were salaried. The monthly income of 52.81% from all sources was between Rs.25,000 and Rs.50,000. A very less percentage (0.40%) of people fell in the category of less than Rs.15,000 per month. 37.68% respondents pay their tax from Rs.10,000 to Rs.20,000. A very close 32.87% pay in between Rs.20,000 to Rs.50,000. When asked which company’s life insurance policy did the respondent had, most of them (23.20%) replied LIC (Life Insurance Corporation of India). 70.40% respondents had taken/preferred a Life Time Plan instead of other plans such as Pension plan, Child Benefit plan etc. When questions regarding the approach of buying the insurance policy were put up, most of them i.e. 71.20% respondents said that the insurance company approached them. People preferred plans for long term i.e. 75.60% had taken a Life Insurance Policy for above 15 years. 87% respondents were satisfied with their Life Insurance policy while 13% were not. 76.60% respondents were satisfied with their service agents while 23.40% were not satisfied with their service agents. 70.60% respondents said that tax saving was the most important motivator for taking up a Life Insurance Policy. 67.40% said that financial security was the most important motivator. Insurance against health related expenses got a high importance i.e. 34% said it came 2nd in importance. Safe investment also was 2nd in importance with 36.20% respondents responding for it.35.20% said that saving for children’s education/needs was 2nd in importance while a close 34.60% said that it was the most important and relevant motivator. The main barriers while taking up a Life Insurance Policy were firstly that the money gets tied up and secondly that the value of policy reduces due to inflation. When asked which company the respondent would recommend, most of them i.e. 43.20% said they would recommend LIC, reason being the high quality image.87.80% respondents said they would consider LIC while buying their Life Insurance Policy.84.60% said they have heard about MetLife but don’t know much about this company. A huge percentage i.e. 36.80% said they had never heard of the company “Future Generali”.14.60% said they would never buy a policy from Future Genarali. People prefer other alternatives like investing in mutual funds, bonds, securities. They even plan to save money rather than taking up life insurance.
Limitations of the Research:
The research is confined to certain parts i.e. Delhi, NCR and does not shows a pattern applicable to all of India.
Some respondents were reluctant to reveal personal information which can have an effect on the validity of all responses.
In a rapidly changing industry, analysis on one day/one segment can change very speedily. The environmental changes are very important to be considered in order to incorporate the findings.
Recommendations:
• The service agents should improve their services.
• The companies should spread more awareness and relax the product complications to make it easier to understand.
• Charges of the insurance companies should be kept low.
• Better early returns might increase the sales
• More personalized follow up by the companies instead of sending couriers for information would make the customers more aware of the product.
• More branches should be opened in semi-urban areas
The major factors include sound economic fundamentals, a rising middle-income class, an improving regulatory framework and rising risk awareness. The groundwork for realizing potential was arguably laid in 2000 when India undertook to open the domestic insurance market to private-sector and foreign companies. Since then, 13 private life insurers and eight general insurers have joined the Indian market. . Important steps have thus been already taken, but there are still major hurdles to overcome if the market is to realize its full potential.
Private insurers will have a key role to play in serving the large number of informal sector workers. The same is true for the health insurance business. In addition, the rapid growth of insurance business will put increasing pressure on insurers’ capital level. A key challenge for India’s non-life insurance sector will be to reform the existing tariff structure.
It is also the responsibility of non-life insurers to help manage India’s high exposure to natural catastrophes. To do this, technical know-how and financial capability are imperative. International reinsurance could provide both, but there is currently only a limited scope for global reinsurers to transfer risk efficiently in India at the moment. Reinsurance in India is mainly provided by the General Insurance Corporation of India (GIC), which receives 20% compulsory cessions from other non-life insurers.
Finally, the largely underserved rural sector holds great promise for both life and non-life insurers. To unleash this potential, insurance companies will need to show long-term commitment to the sector, design products that are suitable for the rural population and utilize appropriate distribution mechanisms. Insurers will have to pay special attention to the characteristics of the rural labor force, like the prevalence of irregular income streams and preference for simple products, before they can successfully penetrate this sector.
Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer.
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Insurance Co-Analysis of Unit Linked Insurance Plan life insurance ICICI Prudential (Case study: ULIPs of ICICI-Prudential)
Aims / Objectives:
• To analyze the importance of ULIP from the ICICI Prudential point of view
• To know portfolio management in ULIP
• To analyze the fund options of ULIP (like equity, debt or balanced)
• To evaluate the effectiveness of ULIP
• To know the various challenges, which are being faced by the ICICI Prudential in terms of ULIP
Introduction:
ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The authorized capital of the company is Rs.2300 Million and the paid up capital is Rs. 1500 Million. The Company is a joint venture of ICICI (74%) and prudential plc UK (26%).
The Company was granted Certificate of Registration for carrying out Life Insurance business, by the Insurance Regulatory and Development Authority on November 24, 2000. It commenced commercial operations on December 19, 2000, becoming one of the first few private sector players to enter the liberalized arena.
The Company is now operational in Mumbai, New Delhi, Pune, Chennai, Kolkata, Bangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut, Mangalore and Ludhiana.
Till March 31,2002 the Company has issued 100,000 polices translating into a Premium Income of around Rs. 1,200 Million and a sum assured of over Rs.15,000 Million.
The Company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The Company aims to achieve this by striving to provide world class service levels through constant innovation in products, distribution channels and technology based delivery. The Company has already taken significant steps to achieve this goal.
Vision and Mission:
Their vision is to make ICICI Prudential Life Insurance Company the dominant new insurer in the life insurance industry. This they hope to achieve through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise.
Findings and Suggestions:
• In India there is a tendency to think about tax saving schemes only on the month of January- march. This should be avoided and proper planning for tax saving should be made in advance for availing benefits of tax.
• Few Customers ask about charges, in fact they don’t think about charges. To stop miss-selling there must be verification from company side and update with all the charges to customer.
• A timely investment can reduce the tax liability burden and also a systematic way of increasing the wealth.
• All schemes of ICICI prudential provide tax saving shield which is beneficial for the investors. The investor should opt for the scheme which is most suitable for his planning and act accordingly.
• Different age group has different level of liabilities. Thus every investor should plan his tax planning according to his priority.
• Rider benefits are the most beneficial add in all of the schemes. Hence, while going for the schemes the investors should avail these. Since, these can be availed at very low cost and the benefits are very high investors are advised to avail these benefits.
• In order to get more returns than their actual amount they should invest for at least 5 years.
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