A PROJECT REPORT ON RISK ANALYSIS AND RISK MANAGEMENT IN INVESTING IN INSURANCE POLICIES

A PROJECT REPORT ON RISK ANALYSIS AND RISK

MANAGEMENT IN INVESTING IN INSURANCE POLICES

Research Report submitted to Entrepreneurship Development Institute

of India in partial fulfilment of the requirements for the award of

Post Graduate Diploma in Business Management

Submitted by

ABHISHEK RAJ

1

EXECUTIVE SUMMARY

All assets in this world have some economic value and some amount of risk

carrying with them. All assets have some expected life also and if it’s get lost

or destroyed there are many chances that owner will suffer some amount of

loss which can be financial or in any other form. So to protect the owner from

suffering a huge amount of loss we can assure these assets.

Insurance is a contract between the insurer and insured in return for a

premium, the insurance company promises to pay a specified amount to the

insured on the happening of a specific event.

India economy is growing at the rate of 5.4% with a significant rise in working

population and has a large potential for the development in the field of

insurance sector. A large amount of population in India is still uninsured. It is

also estimated that the sector will grow at a rate of 15-20% in next 10 years.

The project has been undertaken to know about different types of risk that can

covered by insurance policies and how to analyse and mange those risks as

there are various types of risk that a person can suffers in his life term.

The project talks about what are the various things that customer should

consider before buying an insurance policy and various steps that need to

consider before buying it.

2

IntroductionIndia 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 a huge 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.

Employment An increase in the penetration of insurance is going to generate

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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 policesThe 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

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.

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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.

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

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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.

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.

Top five companies in world in 2013

6

Japan post Insurance

AXA

Allianz

Met life

Prudential Financial

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

6.25%

6.02%

3.32%2.14%

68.70%

Sales

ICICI PrudentialSBI LifeHDFC StandardBajaj AllianzLic

7

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 present people 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

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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.

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 EnterprisesBharti 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 Sky cell

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

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2003, the cellular phone operations were rebranded under the single Airtel

brand.

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.

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This joint venture is an opportunity for AXA to enter the Indian life insurance

market, one of the most attractive emerging insurance markets. 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 irrespective of

actual hospital bill. Easy Health is Bharti AXA’s health plan.11

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 assured

of nearly Rs 58000 cores.

Threats

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• 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.

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Objective of the study:

To make people aware about the steps 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 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

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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.

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:

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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.

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:-

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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

Total estate

clearance fund

28000

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

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Checking account and

savings

10000

Mutual fund and

Securities

25,000

IRAS PLAN 4200

Employer saving plan 4500

Private pension death

plan

10000

Current life insurance 50000

Total assets 103400

Additional life

insurance needed

Total needs 385400

Less total assets 103700

Additional life

insurance needed

281700

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

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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

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

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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

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

(55000*6%)

-33000

Social security survivor benefits -12000

Income shortage 147000

Total new capital

Required(14700/00.6)

245000

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

20

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

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QUESTION NO. 1)

Businessman 54

Professional 35

Students 6

Housewife 5

Table no. 4.1

5435

6 5

Occupation of respondent

BusinessmanProfessionalStudentsHousewife

Figure 4.1

Interpretation:

Out of 100 respondents, maximum respondents belong to business class,

followed by professional, then students and the minimum respondents are

from housewife.

22

QUESTION NO. 2)

Having insurance already

S.NO. Particular Response

A Yes 92

B No 8

Table no. 4.2

92

8

Insurance Already

YesNo

Figure 4.2

Interpretation:

From above chart, we can infer that 92% respondents already have insurance

policies, whereas 8 % does not have insurance policies.

QUESTION NO. 3)23

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

20

2550

5

Awareness of life insurance com-panies

Print mediaElectronic mediaAgentsOther

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.

QUESTION NO. 4)

24

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

24

15

49

102

Main purpose to buy insurance policies

TaxSavingProtectionPensionInvestment

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.

QUESTION 5)

25

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

19

20

50

65

Your prefence in buying Insurance policies

Goodwill of the company Range of products Features of the product Services offered by 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.

QUESTION 6)

26

you purchase an insurance police under

someone else influence

Option Particular Response

a Yes 63

b No 37

Table no. 4.6

63

37

You purchase an insurance policies under someone else in-

fluence

YesNo

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) 27

Done need analysis before buying an

insurance police

Option Particular Response

a Yes 33

b No 67

Table no. 4.7

33

67

Done need analysis before buying an insurance policy

YesNo

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)

28

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

57

9

10

24

Insurance plans you prefer to buy

Protection plan Investment plansPension plan 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)

29

Expectations from life insurance

companies

Option Particular Response

a Innovative Products 5

b Attractive Riders 2

c Reasonable Premium 47

d

Better Customer

Service 24

e High Risk Coverage 22

Table no. 4.9

52

4724

22

Expectations from life insurance companies

Innovative Products Attractive Riders Reasonable Premium Better Customer Service 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)

30

satisfied with previous

insurance plan you bought

Done need analysis

Option Particular Response

a yes 19

b no 12

c can't say 2

Table no. 4.10(a)

19

12

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

yesnocan't say

Not did need analysis

31

Option

Particul

ar

Respon

se

a yes 20

b no 44

c

can't

say 3

20

44

3

Response

a yesb noc can't say

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.

32

Findings

The findings drawn during the project are as follows:

In occupation group most of the customers were business 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.

Knowledge about different tools that can be used to calculate need

analysis.

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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.

34

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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NAME ---------------------------------------------------------------------------

AGE ----------- Nationality ----------------------- Income ---------------

Contact number --------------------------------

Address-----------------------------------------------------------------------------

Q1) Occupation

a) Businessman [ ] b) Professional [

]

c) Students [ ] d) House

wife [ ]

Q.2) Do u have Insurance?

a) Yes [ ] b) No[ ]

Q.3) Awareness of Life Insurance Companies:-

a)Print media[ ] b)Electronic

media [ ]

c) Agents [ ] d) Others [ ]

Q.4) what is the main purpose to buy insurance policies?

a) Tax [ ]

b) Saving [ ]

c) Protection [ ]

d) Pension [ ]

e) Investment [ ]

Q.5) what do you look in an insurance policy before buying it?

a) Goodwill of the company [ ]

36

b) Range of products [ ]

c) Features of the product [ ]

d) Services offered by company [ ]

f) Returns of the bonds[ ]

Q.6) Do you purchase an insurance police under someone else

influence?

a) yes [ ] b) No [ ]

Q.7) I prefer to do need analysis before buying an insurance police:-

a) Yes [ ] b) No [ ]

Q.8) Which Insurance plan you prefer to buys?

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

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

Q.9) 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 [ ]

Q.10) Are you satisfied with previous insurance plan you bought ?

A) Customer who do need analysis:_

a) yes [ ] b) no [ ]

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c) can’t say [ ]

B) Customer who do not did need analysis:

a) yes [ ] b) no [ ]

c) can’t say [ ]

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40

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