A Perceptual Study on Investors Behaviour towards Insurance Sector

Presented to:Ms. Cheenu GoelFaculty, PCTE

Presented by:Karan Deep GhaiRoll no. 94972238184

Project on Industrial Training

What is Insurance?

Nature of Insurance

Risk sharing and risk transfer. Risk assessment in advance. Its not gambling or charity. Huge number of insured people. Assists in capital formation.

SEMANTICS Risk Policy Whole life policy Endowment policy Claim Reinsurance Premium Insurance penetration Insurance density Actuary

TYPES OF INSURANCE

Life Insurance General Insurancea) Fire Insurance.b) Marine Insurance.c) Social Insurance &d) Miscellaneous Insurance. (Health

insurance, Liability Insurance etc….)

HISTORY OF INSURANCE

Insurance has existed for thousands of years.

Great fire of London in 1666. Edward Lloyd. 1818, first insurance company in India. 1850, first general insurance company.

COMPANY INDIAN

PROMOTER/PARTNER

FOREIGN INSURER

AMP SANMAR RELIANCE GROUP(ADAG) None

Aviva Life Dabur Aviva (UK)

Bajaj-Allianz Bajaj Auto Allianz (Germany)

Birla Sun Life Aditya Birla Group SunLife (Canada)

HDFC Standard HDFC StandardLife (UK)

ICICI Prudential ICICI Bank Prudential (UK)

ING Vysya Vysya Bank ING Ins.(Netherlands)

Kotak Mahindra

Old Mutual

Kotak Mahindra Bank OldMutual (South Africa)

Max Newyork Max India NewYorkLife (US)

Insurance companies

Contd…

Met Life J&K Bank Met Life (US)

Sahara Life Ins. I Sahara India None

SBI Life SBI Cardiff (France)

TATA AIG TATA Group AIG (US)

Shriram Shriram Sanlam Life Ins.

Bharti AXA Bharti Group AXA(Australia)

INTRODUCTION TO MONEY MATTER INC.

Company profile

Founded by Mr. Prem Pal Sharma. Head office in Delhi 2008, came to Punjab.

We create value through focus &

discipline… Vision Enabling Success, Enriching Lives, Spread Smiles

Mission To create superior value in financial

sectors.

• Growth• Acquire and Transform• Improve

Pillars

Values

Right People Organizational Alignment

Execution DisciplineProcesses

Caring ; Honesty ; Passion ; Team Work ; Disciplined Professionalism

Right People Organizational Alignment

Execution DisciplineProcesses

Not a Product Program, . . . instead a Customer Program

1. Understand financial needs and key expectations

2. Evaluating the customer as a whole, not just for a product

3. Product features as designed for the specific segment

4. Segment strategy for sales, operations, and collections.

5. Financials and segment profitability

Focus on Customer, not product

Management TeamMr. Prem Pal

Sharma(Chief Operating Officer)

Mr. Gaurav Sharma(Strategic Unit Head)

Ms. Shallu(Head of Administration & Finance-Strategic Unit)

Mr. Santosh KumarDubey

(Head of Sales-Strategic Unit)

Products

This is basically a wealth Management unit deals in all the almost all investment option present in market.

They give there services in

Insurance Demat Account Mutual Funds Bonds Share Debenture Corporate FD’s & Corporate Loan. Gold

Organization Chart of the Training Unit

Relationship Manager/ Branch Manager.

Assistant Relationship Manager.

Senior Relationship Officer

Relationship Officer

Senior Sales Executive

Sales Executive

SWOT Analysis of Money Matter Inc.

Strengths1. Product Range2 Experienced and Youth staff

Opportunities1. Growing Awareness2. Untapped market

SWOT Analysis of Money Matter Inc.

Title

A perceptual study on Investors Behaviour toward Insurance Sector with reference to Money Matter Inc. in Chandigarh

Introduction to the project The project has been carried out to

understand the Perception of Investors towards Insurance Sector in terms of preference towards various Investment alternatives like Insurance , Mutual Fund , Fixed Deposit, Real Estate etc.

SCOPE OF THE STUDY

The result of this research would help the company to have a better understanding about the Investor’s perception towards Insurance.

The study helps the company by creating awareness about the Investors of different ages and income levels.

The study also enables the company to focus the consumer’s preferences and expectations on the product which they offer.

This study will help to create awareness about the Money Matter Incorporation.

Objectives of the study

To study the important parameters that Investors think about before investing in Life Insurance Sector Policy.

To study the Demographics of Consumers concerning the Insurance sector.

To study the various Investment alternatives to Insurance being preferred by the Investors

To find out the awareness of Money Matter Inc. among the Investors .

Research Methodology Introduction: Research is an academic

activity and as such the term should be used in technical sense.

UNIVERSE POPULATION

SAMPLING SIZE

SAMPLE DESIGN

The target population of the study consists of various respondents of various places. This survey was done by collecting the data from the respondents.

SAMPLING TECHNIQUE

The sampling technique that adapted to conduct the survey was ‘Convenient Random Sampling’ .

DATA SOURCE

PRIMARY DATA A primary data is a data, which is collected for

gathering information first time and to analyze the problem.

SECONDARY DATA Secondary data consist of information that already

exits somewhere, having been collected for some other purpose.

Method Of Data Collection PRIMARY DATA

METHOD OF PRIMARY DATA COLLECTION 

The method followed in obtaining the primary data was through the structured questionnaire.

  SECONDARY DATA  METHOD OF SECONDARY DATA COLLECTION: 

Journals and Magazines Internet

LIMITATIONS OF THE RESEARCH

The sample size chosen for the questionnaire was only 100.

The research got confined to the City. Responses from the customers may not be

accurate.• Balance sheet was not available.

Figure 4.1: Age Group

N=10020%

59%

16%5%

Age Group

Less than 2525-4041-50More than 50

Figure 4.2 : Occupation

N=10010

34

42

14

Occupation

StudentsServiceSelf EmployedOther

Figure-4.3 : Estimated Annual Income Level

N=100

Below 1 Lakh 1 -3Lakh More than 3-5Lakh Above 5 Lakh0

5

10

15

20

25

30

35

40

21

37

29

13

Estimated Annual Income Level

Figure 4.4: Percentage of Income Invested

Short Term Long Term Both0

5

10

15

20

25

30

35

40

45

25

33

42

Kind of Investment preferred

N=100

Figure 4.5 : Ranking the Various Investment Alternatives available

Less than 15% 15-20% 21-25% More than 25%0

5

10

15

20

25

30

35

40

45

30

42

18

10

Percentage of Income Invested

N=100

Table 4.6 : Preferences on various investment alternatives according to its importance

Insurance

Fixed Deposit

Mutual Fund

Gold & Silver

Real Estate

Shares

Bonds & Debentures

Figure 4.7 A) : Preferences on various investment alternatives according to its

importance.

Highly Important

Important

Neutral

Least Important

Not Important

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5

0.46

0.310000000000001

0.1

0.08

0.05

Safety

Figure 4.7. (B) Capital Growth as a factor considered while Investing.

0.42

0.34

0.08

0.10.06

Capital Growth

Highly Important ImportantNeutralLeast ImportantNot Important

Figure 4.7. (C) Liquidity as a factor considered while Investing

Highly Important Important Neutral Least Important Not Important0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

0.120.1

0.49

0.17

0.12

Liquidity

Figure 4.7. (D) Return as a factor considered while Investing

0.35

0.320000000000001

0.12

0.14 0.07

Return

Highly Important ImportantNeutralLeast ImportantNot Important

Figure 4.7. (E) Tax Benefit as a factor considered while Investing

Highly Important Important Neutral Least Important Not Important0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.410.37

0.05

0.14

0.03

Tax Benfit

Figure 4.7. (F) Company Profile & Brand Name as a factor considered while Investing.

Highly Important Important Neutral Least Important Not Important0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.50.47

0.330000000000001

0.070.09

0.04

Company Profile & Image

Figure 4.8 : Number of People having Insurance Policy

87%

13%

YesNo

N=100

Figure 4.9 : Most preferable Insurance Company

LIC ICICI HDFC BAJAJ ALLIANZ RELIANCE Any Other0%

5%

10%

15%

20%

25%

30%

35%

40%

37%

17%14% 13%

8%11%

Figure 4.10 Most Preferable Insurance Policy Plan

Life Protection Plan

Education Plan Retirement Plan

Health Plan Money Growth Plan

Any Other0

5

10

15

20

25

30

3532

18

21

13

10

6

Figure 4.11 : Rank the various Parameters that Investors consider before taking

Insurance Policy.Company Image

Premium

Rider Benefits

Services

Bonus And Interest

Policy Term

Figure 4.12: Investment through Money Matters Incorporation.

37%

63%

YesNo

Figure 4.13 : Factors that makes to invest through Money Matters Inc.

8% 18%

14%11%

38%

11%

Brand image DiversityTransparencyUtmost Good Faith Growth Potential Others

Findings• Maximum numbers of investors choose Insurance as Investment alternative

followed by FD, MF, gold & silver, real estate and least preference is given to bonds & debentures.

• Safety is considered as the most preferred investment alternative because investors are not willing to take more risk.

• Company image and premium are the important factors considered before taking life insurance policy.

• Due to lack of awareness about money matters inc. only 37% of respondents invest through money matter as they think that company has huge growth potential in future.

Suggestions On the basis of the analysis of the data collected from the

project the following recommendations are suggested to the company:

Good distribution network. Security of funds more than Brand name. Advertisement. Awareness. Social well fare.

CONCLUSION