A STUDY ON INSURANCE DISTRIBUTION AS AN ADDITIONAL BUSINESS
OPPORTUNITY AT KOTAK LIFE INSURANCE WITH SPECIAL EMPHASIS ON
FINANCIAL DISTRIBUTORS IN COCHINPROJECT REPORTSubmitted by
ANISH KUMAR P
(REG.NO.07 BA 193)
Submitted in partial fulfillment of the requirements for the
award for the degree of
MASTER OF BUSINESS ADMINISTRATION (M.B.A)
of Karunya University,Coimbatore
Karunya School of Management
Karunya University
Coimbatore 641 114
2007-2009
CERTIFICATE
This is to certify that the project entitled, A Study On
Insurance Distribution As An Additional Business Opportunity At
Kotak Life Insurance Done by Mr. ANISH KUMAR P , REGISTER NO:
07BA193, and is submitted in partial fulfillment of the
requirements for the degree of Master of Business Administration of
Karunya University.
Dr.J.Reeves Wesley
Mrs.Sumitha Anand (Head of School)
(Faculty Guide)
Place: Date:
Viva-Voce Examination held on
.
..
Internal Examiner
ExternalDECLARATION
I, Mr.Anish Kumar P hereby declare that the project work
entitled a study on insurance distribution as an additional
business opportunity with special reference to cochin city at Kotak
Life Insurance is a bonafide record of work done by me in partial
fulfillment of the requirements for the award of the degree of
Master of Business Administration of Karunya University under the
guidance of Mrs.Sumitha Anand, Lecturer,Department of Management
Sciences, Karunya School of Management, Coimbatore, during the
academic year 2007-2009, and it has not either wholly or in part,
been submitted for any degree or Diploma courses.
ANISH KUMAR P
ACKNOWLEDGEMENT
I thank the Lord Almighty for the gracious amazing and wonderful
ways in which He has helped me and strengthened me through every
little step of the mini project work I have taken.
I take this opportunity to place on record my sincere thanks to
Dr. Reeves Wessely, HOD for providing all the facilities in the
department to complete the project successfully.
I would like to extend my gratitude to Ms. Sumitha Anand,
Lecturer of MBA department for the help and guidance offered to me
for the successful completion of this mini project work.
My heartfelt thanks to my Company Guide Mr.Dayesh Menon,
Territory Manager for his countenance, towards the successful
accomplishment of my mini project.
I express my heartiest thanks to all the employees of the
company and also to my friends and well-wishers who have helped in
one way or other for the successful completion of this project.
At last but not least, it will be highly unethical if neglected
to acknowledge all customers and those people who extended their
whole hearted co-operation.
CONTENTSSl. NoTOPIC
Page No
1Executive Summary
-
2Introduction
1
3Theoretical perspective
5
4Objective of the study
7
5Research methodology
8
6Industry profile
11
7Company profile
14
8Analysis and Interpretation
17
9Findings
29
10Suggestions
31
11Limitations of Study
32
12Conclusion
33
EXECUTIVE SUMMARYThe study was conducted as a part of MBA
curriculum of Karunya University. The topic selected for the study
was Insurance distribution as an additional business opportunity.
The study was conducted on a population consisting financial
distributors from various places in Cochin city.
The researcher used questionnaire and collected data from
distributors through personal interview method. The collected datas
were analysed and represented with the help of tables and
charts.
Based on the findings from the study the researcher has given
his suggestions and recommendations to the management in the form
of a report.
LIST OF TABLESSl. NoTopic
1Table showing whether the respondents are associated with Kotak
Mahindra Group
2Table showing whether the respondents have taken life insurance
policies
3Table showing whether the respondents are aware of the
potential of life insurance industry in India.
4Table showing whether the respondents think that insurance is a
good investment plan
5Table showing whether the respondents have considered selling
insurance as an additional business option
6Table showing whether the respondents are dealing with or
selling life insurance products of any company
7Table showing whether the respondents know that they can earn
upto 40% of the first year premium as commission
8Table showing whether the respondents have heard of Kotak Head
Start, No.1 child plan rated by 'outlook money'
9Table showing whether the respondents have heard about Kotak
Safe Investment plan, which invests upto 80% of the fund in equity
market, still giving capital guarantee
10Table showing whether the respondents know about the earning
potential by selling life insurance products
11Table showing whether the respondents know that there is no
capital requirement for starting insurance distribution
12Table showing whether the respondents like to associate with
Kotak Life Insurance
LIST OF CHARTSSl. NoTopic
1Chart showing whether the respondents are associated with Kotak
Mahindra Group
2Chart showing whether the respondents have taken life insurance
policies
3Chart showing whether the respondents are aware of the
potential of life insurance industry in India.
4Chart showing whether the respondents think that insurance is a
good investment plan
5Chart showing whether the respondents have considered selling
insurance as an additional business option
6Chart showing whether the respondents are dealing with or
selling life insurance products of any company
7Chart showing whether the respondents know that they can earn
upto 40% of the first year premium as commission
8Chart showing whether the respondents have heard of Kotak Head
Start, No.1 child plan rated by 'outlook money'
9Chart showing whether the respondents have heard about Kotak
Safe Investment plan, which invests upto 80% of the fund in equity
market, still giving capital guarantee
10Chart showing whether the respondents know about the earning
potential by selling life insurance products
11Chart showing whether the respondents know that there is no
capital requirement for starting insurance distribution
12Chart showing whether the respondents like to associate with
Kotak Life Insurance
KOTAK GROUP COMPANIES
Kotak Mahindra Group is mainly into financial services which
encompass insurance, mutual funds, banking, investments and other
activities of similar nature. These various financial service
activities have been controlled by different subsidiary of Kotak
Mahindra group. The group companies and respective activities are
given below:
KOTAK MAHINDRA GROUP
KOTAK MAHINDRA BANK LTD
The Kotak Mahindra Finance Ltd established in 1985 which is
Kotak Mahindra Groups flagship company got converted into a bank
Kotak Mahindra Bank in March 2003. It is the first Indian company
to convert into a bank. Its banking operations offer a central
platform for customer relationships across the groups various
businesses. The bank has a presence in the commercial vehicles,
retail finance, corporate banking, treasury and housing
finance.
KOTAK MAHINDRA CAPITAL COMPANY
The Kotak Mahindra Capital Company Ltd is known as Indias
premier Investment bank and a primary dealer which is approved by
the RBI. KMCCs core business areas include private equity,
insurance, mergers and acquisitions, structured finance and
advisory services, fixed income securities and principal business.
KOTAK SECURITIES
Kotak Securities Ltd is one of Indias largest brokerage and
securities distribution house in India. It has been one of the
leading investment broking houses catering to the needs of both
institutional and non institutional investor categories with its
presence all over the country through franchises and coordinators.
Kotak Securities Ltd offers both online and offline services which
is based on well researched expertise and financial products to the
non institutional investors.
KOTAK MAHINDRA PRIME
Kotak Mahindra Prime Ltd is formerly known as Kotak Mahindra
Primus Ltd. It has been formed with the objective of financing the
retail and wholesale trade of passenger and multi utility vehicles
in India. Kotak Mahindra Prime offers customers retail finance for
both new as well as used cars and wholesale finance to dealers in
the automobile trade.
KOTAK MAHINDRA ASSET MANAGEMENT COMPANY
Kotak Mahindra Asset Management Company is a subsidiary of Kotak
Mahindra Bank. It is the asset manager for Kotak Mahindra Mutual
Funds. KMMF manages funds in excess of Rs 11000 crores and offers
schemes catering to investors with various risk return profiles. It
is the first fund house in the country to launch a dedicated gilt
scheme investing only in government securities.
KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LTD
Kotak Mahindra Old Mutual Life Insurance Ltd is a joint venture
between KMB LTD and Old Mutual Plc. Kotak Life Insurance help
customers to take important financial decisions at every stage in
life offering them a wide range of innovative life insurance
products, to make them financially independent.
INDIAN LIFE INSURANCE INDUSTRY OVERVIEWAll life insurance
companies in India have to comply with the strict regulations laid
out by Insurance Regulatory and Development Authority of India
(IRDA). Therefore there is no risk in going in for private
insurance players. In terms of being rated for financial strength
like international players, only ICICI Prudential is rated by Fitch
India at National Insurer Financial Strength Rating of AAA (Ind)
with stable outlook indicating the highest claims paying ability
rating.
Life Insurance Corporation of India (LIC), the state owned
behemoth, remains by far the largest player in the market. Among
the private sector players, ICICI Prudential Life Insurance(JV
between ICICI Bank and Prudential PLC) and Max New York Life
Insurance are the largest followed by Bajaj Allianz Life Insurance
Company Limited (JV between Bajaj Group and Allianz). The private
companies are coming out with better products which are more
beneficial to the customer. Among such products are the ULIPs or
the Unit Linked Investment Plans which offer both life cover as
well as scope for savings or investment options as the customer
desires. Further, these type of plans are subject to a minimum
lock-in period of three years to prevent misuse of the significant
tax benefits offered to such plans under the Income Tax Act. Hence,
comparison of such products with mutual funds would be
erroneous.COMMISSION / INTERMEDIATION FEES The maximum commission
limits as per statutory provisions are:
Agency commission for retail life insurance business: 1st year
commission varies from 2% to 40% depends on yhe product and 2nd
year onwards it varies from 1% to 7% Maximum broker commission -
30%
However, the above commission may be further subject to the
product wise limits specified by IRDA while approving the
product.
LIFE INSURANCE
Life insurance or life assurance is a contract between the
policy owner and the insurer, where the insurer agrees to pay a sum
of money upon the occurrence of the insured individual's or
individuals' death or other event, such as terminal illness or
critical illness. In return, the policy owner (or policy payer)
agrees to pay a stipulated amount called a premium at regular
intervals or in lump sums. There may be designs in some countries
where bills and death expenses plus catering for after funeral
expenses should be included in Policy Premium.
As with most insurance policies, life insurance is a contract
between the insurer and the policy owner (policyholder) whereby a
benefit is paid to the designated Beneficiary (or Beneficiaries) if
an insured event occurs which is covered by the policy. To be a
life policy the insured event must be based upon life (or lives) of
the people named in the policy.
LIFE INSURANCE IN INDIA
Life Insurance in India was nationalised by incorporating Life
Insurance Corporation (LIC) in 1956. All private life insurance
companies at that time were taken over by LIC.
In 1993 the Government of Republic of India appointed RN
Malhotra Committee to lay down a road map for privatisation of the
life insurance sector.
While the committee submitted its report in 1994, it took
another six years before the enabling legislation was passed in the
year 2000, legislation amending the Insurance Act of 1938 and
legislating the Insurance Regulatory and Development Authority Act
of 2000. The same year that the newly appointed insurance regulator
- Insurance Regulatory and Development Authority IRDA -- started
issuing licenses to private life insurers.
LIST OF LIFE INSURERS Apart from Life Insurance Corporation, the
public sector life insurer, there are 17 other private sector life
insurers, most of them joint ventures between Indian groups and
global insurance giants.
LIFE INSURER IN PUBLIC SECTOR1. Life Insurance Corporation of
IndiaLIFE INSURERS IN PRIVATE SECTOR1. Bajaj Alliums Life2. Max New
York Life Insurance3. ICICI Prudential Life Insurance4. Tata AIG
Life
5. HDFC Standard Life
6. Burls Sunlife
7. SBI Life Insurance
8. Kotak Mahindra Old Mutual Life Insurance
9. Aviva Life Insurance
10. Reliance Life Insurance Company Limited - Formerly known as
AMP Sanmar LIC
11. Metlife India Life Insurance
12. ING Vysya Life Insurance
13. Max Newyork Life Insurance14. Shriram Life Insurance
15. Bharti AXA Life Insurance Co Ltd16. Sahara Life Insurance17.
Future General Life Insurance Co Ltd
18. IDBI Fortis Life Insurance Co Ltd
19. Aegon Religare Life Insurance Co LtdOBJECTIVE OF THE
STUDY
The following are the main objectives of the mini project:-
A LEARNING PHASE
The experience of the one month in the company and in the field
together is going to be a great learning phase in the project and
this also includes getting to know and learn the corporate culture
of the work life at Kotak Life Insurance, which will be carried
forward as a great strength and achievement for the whole of the
career ahead.
INTERACTING WITH PEOPLEBeing a Marketing student, meeting people
in and out the company would be another main objective and it would
help in developing contacts with the people around and it would
always helpful in a successful business life.
VALUE ADDITION TO THE COMPANY
This project will also result in value addition to the company
and it would result in getting more distributors. TIME
MANAGEMENT
One of the key resources of any professional is Time. There
would be a clear time frame in each and every work of the corporate
world. The time taken to do anything is an indicator of the skill
of the doer.
RESEARCH METHODOLOGY
The process which works upon is as shown in the figure
below.
DEFINITION OF THE PROBLEM AND THE RESEARCH OBJECTIVES
Identification of the problem is thereby realizing the untapped
resources.
Less awareness among the people about the benefits and the
knowledge of the company and its service.DEVELOP THE RESEARCH
PLAN
The second stage is development of the most efficient plan for
gathering the needed information.
DATA SOURCES
The data gathered, is through the secondary data and the primary
data. The Secondary data collected was that which was already
collected for another purpose and already exist. Primary data is
the data freshly gathered for this specific purpose and the
research project.
Secondary data has provided a starting point for the research.
The normal procedure that is followed to interview people
individually to get a sense of people feels about the company and
its service.
RESEARCH APPROACH
The kind of research approach used is the survey research. The
survey is helpful learning about peoples knowledge, beliefs,
preferences, and satisfaction, and to measure these magnitudes in
the general population.
RESEARCH INSTRUMENT
The research instrument used is the Questionnaire.
SAMPLING PLAN
The sample size plan consists of 80 financial distributors in
Cochin.The most versatile contact method that could be followed is
the personal interviewing.
COLLECTION OF INFORMATION
The data collection phase is the most delicate and prone to
errors. ANALYZE THE INFORMATION
The next process is to extract the findings from the collected
data.
PRESENT THE FINDINGS
The last would be to present the findings that are relevant for
the decision facing the management.
CONCLUSION OR PRESENTING THE SOLUTIONS
This would be based on the study would be the last major step to
be followed.
INSURANCE
The Indian insurance sector is on a bull run. The average Indian
now spends 5.4 times as much on life insurance as what s/he did
seven years ago when the industry was yet to be opened up for
private participation.
With the largest number of life insurance policies in force in
the world, India's insurance sector accounted for 4.1 per cent of
GDP in 2006-07, up from 1.2 per cent in 1999-2000, far ahead of
China where insurance accounts for just 1.7 per cent of the GDP and
even the US where insurance penetration stands at 4 per cent of the
GDP.
Indians are now setting aside a larger chunk of their income on
life insurance when measured as a percentage of GDP. They are
allocating a small amount of their take-home to buy insurance
products given their rising equated monthly installment (EMI)
payments for home mortgage and other loans.
The growth in insurance premium collections has spelt an
opportunity for the equity market too. The industry's investment in
the equity market stood at US$ 38.1 billion and the assets under
management were at US$ 152.6 billion as on March 31, 2007.
Indian insurance companies recorded a 19.9 per cent growth in
premium in dollar terms (adjusted for inflation) in 2006-07,
compared to the world market growth rate of 2.9 per cent. This rate
of growth of the industry looks particularly impressive when seen
against the fact that the combined penetration of both life and
non-life is less than 2 per cent of the GDP compared to world
average of 7.52 per cent. Clearly, the scope for growth is
enormous. LIFE INSURANCELed by the Life Insurance Corporation
(LIC), the life insurance industry registered a growth of 110 per
cent in fiscal 2006-07, taking the total business to US$ 19.2
billion from the previous year's US$ 9.1 billion. The life
insurance market has grown rapidly over the past six years, with
new business premiums growing at over 40 per cent per year owing to
the entry of a host of new players with significant growth
aspirations and capital commitments.
The total life insurance market premiums is likely to more than
double from the current US$ 40 billion to US$ 80-US$100 billion by
2012, says a study by McKinsey. The study titled 'India Insurance
2012: Fortune Favours the Bold,' expects a rise in premiums between
5.1 and 6.2 per cent of the GDP in 2012 from the current 4.1 per
cent driven by greater insurance intensity per capita as the
average per capita income increases and rise in penetration in
urban and rural areas.
The life insurance premium contributions per capita have jumped
from a little over US$ 7 in 1999-2000 (pre-liberalisation) to US$
38.5 in 2006-07.
Life insurance penetration in India - which was less than 1 per
cent till 1990-91 - increased to 2.53 per cent in 2005, and to 3
per cent in 2006-07. The impetus for growth has come from both
public and private insurers. Also, the number of players in this
segment has also increased to 17 (16 in private sector), with Life
Insurance Corporation (LIC) being the dominant player (market share
of about 74 per cent). INNOVATIVE TRENDSInsurance in India has been
spurred by product innovation, streamlining of sales and
distribution channels along with targeted advertising and marketing
campaigns.
The kid's insurance segment in the insurance sector is
witnessing increased activity. Children's products such as ICICI
Prudential Life's 'SmartKid', Birla Sun Life's 'Children's Dream
Plan', or HDFC Standard 'Life's Young Star Plus', are on a
consistent growth path. According to industry estimates, currently,
20-30 per cent of business of many companies comes from
children-specific insurance policies alone.
Emerging lifestyle trends amid a changing fabric of the Indian
society have also modified social and financial behaviour. For
instance, an increase in the number of working women has led to a
demand for life insurance policies, which in turn has helped women
through a micro-entrepreneurship initiative (women have flexibility
- managing home and being financially independent as distributors
of insurance).
The Road Ahead . . . .Market penetration tends to rise as
incomes increase, particularly in life insurance. India, with its
huge middle-class households and growing economy has exhibited huge
potential for this sector. Current estimates say that, for every
one per cent increase in the GDP, insurance premiums increase by at
least 4 per cent.
The domestic insurance industry in India is estimated to be
around US$ 60.5 billion by 2010, of which US$ 35 billion will come
from rural and semi-urban areas. While the life insurance market is
expected to grow to US$ 35 billion, non-life insurance market will
touch an estimated US$ 25 billion.
KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LTD.
Kotak Mahindra Old Mutual Life Insurance is a 74:26 joint
venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak
Mahindra Old Mutual Life Insurance is one of the fastest growing
insurance companies in India and has shown remarkable growth since
its inception in 2001.At Kotak Life Insurance, we aim to help
customers take important financial decisions at every stage in life
by offering them a wide range of innovative life insurance
products, to make them financially independent.
Old Mutual, a company with 160 years experience in life
insurance, is an international financial services group listed on
the London Stock Exchange and included in the FTSE 100 list of
companies, with assets under management worth $ 400 Billion as on
30th June, 2006. For customers, this joint venture translates into
a company that combines international expertise with the
understanding of the local market.PRODUCTSINDIVIDUAL Kotak Smart
Advantage Kotak Eternal Life Plans
Kotak Platinum Advantage Plan
Kotak Headstart Child Plans
Kotak Sukhi Jeevan Plan
Kotak Privileged Assurance Plan Kotak Term Plan Kotak Preferred
Term Plan
Kotak Money Back Plan Kotak Child Advantage Plan Kotak Endowment
Plan
Kotak Capital Multiplier Plan
Kotak Retirement Income Plan
Kotak Retirement Income Plan (Unit-linked)
Kotak Safe Investment Plan II
Kotak Flexi Plan
Kotak Easy Growth Plan
Kotak Premium Return Plan RidersGROUP Employee Benefits Kotak
Term Grouplan Kotak Credit-Term Grouplan Kotak Complete Cover
Grouplan Kotak Gratuity Grouplan Kotak Superannuation
GrouplanRURAL
Kotak Gramin Bima YojanaTABLE 1
TABLE SHOWING WHETHER THE RESPONDENTS ARE ASSOCIATED WITH KOTAK
MAHINDRA GROUP
NO OF RESPONDENTSPERCENTAGE
YES
1519
NO
6581
TOTAL
80100
INTERPRETATION:
From the above table it is inferred that 81% of the respondents
are not associated with Kotak Mahindra group and 19% of the
respondents are associated with Kotak Mahindra group.
CHART 1
TABLE 2
TABLE SHOWING WHETHER THE RESPONDENTS HAVE TAKEN LIFE INSURANCE
POLICIESNO OF RESPONDENTS
PERCENTAGE
YES
5872
NO
2228
TOTAL
80100
INTERPRETATION:
From the above table it is clear that 72% of the respondents
have taken life insurance policies and 28% has not taken life
insurance policies.
CHART 2
TABLE 3TABLE SHOWING WHETHER THE RESPONDENTS ARE AWARE OF THE
POTENTIAL OF LIFE INSURANCE INDUSTRY IN INDIA
NO OF RESPONDENTS
PERCENTAGE
YES75
94
NO
56
TOTAL
80100
INTERPRETATION:
From the above table it is shown that 94% of the respondents are
aware of the potential of life insurance industry in India and 6%
of the respondents are not aware of the potential of life insurance
industry in India.
CHART 3
TABLE 4
TABLE SHOWING WHETHER THE RESPONDENTS THINK THAT INSURANCE IS A
GOOD INVESTMENT PLAN
NO OF RESPONDENTS
PERCENTAGE
YES
72
90
NO
810
TOTAL
80100
INTERPRETATION:
From the above table it is inferred that 90% of the respondents
think that insurance is a good investment option and 10% of the
respondents think that insurance is not a good investment
option.
CHART 4
TABLE 5
TABLE SHOWING WHETHER THE RESPONDENTS HAVE CONSIDERED SELLING
INSURANCE AS AN ADDITIONAL BUSINESS OPTION
NO OF RESPONDENTS
PERCENTAGE
YES
3645
NO4455
TOTAL
80100
INTERPRETATION:
From the above table it is inferred that 55% of the respondents
have considered selling insurance as an additional business option
and 45% of the respondents has not considered selling insurance as
an additional business option.CHART 5
TABLE 6
TABLE SHOWING WHETHER THE RESPONDENTS ARE DEALING WITHNOR
SELLING LIFE INSURANCE PRODUCTS OF ANY COMPANYNO OF RESPONDENTS
PERCENTAGE
YES
3746
NO
4354
TOTAL
80100
INTERPRETATION:
From the above table it is inferred that 54% of the respondents
are not dealing with or selling life insurance products of any
company and 46% of the respondents are dealing with or selling life
insurance products of any company.CHART 6
TABLE 7
CHART SHOWING WHETHER THE RESPONDENTS KNOW THAT THEY CAN EARN
UPTO 40% OF THE FIRST YEAR PREMIUM AS COMMISSIONNO OF
RESPONDENTS
PERCENTAGE
YES
3341
NO
4759
TOTAL
80100
INTERPRETATION:
From the above table it is inferred that 59% of the respondents
dont know that they can earn upto 40% of the first year premium as
commission and 41% of the respondents know that they can earn upto
40% of the first year premium as commission
CHART 7
TABLE 8
TABLE SHOWING WHETHER THE RESPONDENTS HAVE HEARD OF KOTAK HEAD
START, NO.1 CHILD PLAN RATED BY 'OUTLOOK MONEY'
NO OF RESPONDENTS
PERCENTAGE
YES
2531
NO
5569
TOTAL
80100
INTERPRETATION:
From the above table it is inferred that 69% of the respondents
has not heard of Kotak head start, no.1 child plan rated by
'outlook money' and 31% of the respondents have heard of Kotak head
start, no.1 child plan rated by 'outlook money'
CHART 8
TABLE 9
TABLE SHOWING WHETHER THE RESPONDENTS HAVE HEARD ABOUT KOTAK
SAFE INVESTMENT PLAN, WHICH INVESTS UPTO 80% OF THE FUND IN EQUITY
MARKET, STILL GIVING CAPITAL GUARANTEE
NO OF RESPONDENTS
PERCENTAGE
YES
4354
NO
3746
TOTAL
80100
INTERPRETATION:
From the above table it is inferred that 54% of the respondents
are have heard about kotak safe investment plan, which invests upto
80% of the fund in equity market, still giving capital guarantee
and 46% of the respondents has not heard about kotak safe
investment plan, which invests upto 80% of the fund in equity
market, still giving capital guarantee.
CHART 9
TABLE 10
TABLE SHOWING WHETHER THE RESPONDENTS KNOW ABOUT THE EARNING
POTENTIAL BY SELLING LIFE INSURANCE PRODUCTS
NO OF RESPONDENTS
PERCENTAGE
YES
6986
NO
1114
TOTAL
80100
INTERPRETATION:
From the above table it is inferred that 86% of the respondents
know about the earning potential by selling life insurance products
and 14% of the respondents chart showing whether the respondents
dont know about the earning potential by selling life insurance
products.
CHART 10
TABLE 11
TABLE SHOWING WHETHER THE RESPONDENTS KNOW THAT THERE IS NO
CAPITAL REQUIREMENT FOR STARTING INSURANCE DISTRIBUTIONNO OF
RESPONDENTS
PERCENTAGE
YES
6581
NO
1519
TOTAL
80100
INTERPRETATION:
From the above table it is inferred that 81% of the respondents
know that there is no capital requirement for starting insurance
distribution and 19% of the respondents know that there is no
capital requirement for starting insurance distribution.
CHART 11
TABLE 12
TABLE SHOWING WHETHER THE RESPONDENTS LIKE TO ASSOCIATE WITH
KOTAK LIFE INSURANCE
NO OF RESPONDENTS
PERCENTAGE
YES
2025
NO
6075
TOTAL
80100
INTERPRETATION:
From the above table it is inferred that 75% of the respondents
like to associate with kotak life insurance and 25% of the
respondents do not like to associate with kotak life insurance.
CHART 12
FINDINGS
Majority of the customers are not associated with the Kotak
group companies. Only 19% are associated with Kotak group
companies.
It is found that around 72% of the respondents have taken any
life insurance policy from several life insurance companies and the
rest are not insured.
It is found that 94% of the respondents are aware of the
potential of life insurance industry in India and 6% of the
respondents are not aware of the potential of life insurance
industry in India. Majority of the respondents think that insurance
is a good investment option because of high returns and less risk.
It is found that 55% of the respondents have considered selling
insurance as an additional business option and 45% of the
respondents has not considered selling insurance as an additional
business option. It is found that 54% of the respondents are not
dealing with or selling life insurance products of any company and
46% of the respondents are dealing with or selling life insurance
products of any company. Almost all the customers are satisfied
with services provided by their insurer.
Around 59% of the respondents dont know that they can earn upto
40% of the first year premium as commission and 41% of the
respondents know that they can earn upto 40% of the first year
premium as commission. Majority of the respondents are not aware of
Kotak head start, no.1 child plan rated by 'outlook money'.
Majority of the respondents have heard about kotak safe investment
plan, which invests upto 80% of the fund in equity market, still
giving capital guarantee.
Majority of the respondents do not want to associate with kotak
life insurance.SUGGESTIONS The company has to spend more on
marketing expenses to increase awareness among population on Kotak
head start, no.1 child plan rated by 'outlook money' and kotak safe
investment plan.
The company has to identify segments such as NRIs,house wives
and pensioners to increase the penetration among life insurance
advisors.
The company has to concentrate more on acquiring people who are
associated with other insurance companies to penetrate the
market.
The company has to go in-depth into the customer data base of
kotak group companies to acquire more customers.
Proper advertisements and clear-cut picture about the schemes
are to be provided to attract customers.
LIMITATIONS1. DIFFICULT TO GET APPOINTMENT
Getting the appointment to speak about product and company is a
Herculean task in the modern world because of the hectic schedule
of the business people as the target group is High Net Worth. 2.
TIME CONSTRAINTFor getting better results, the researcher has to
schedule their work beyond the allotted time. But this cannot be
possible in all circumstances. In many occasions meeting location
of the people might be different. This consumes lot of time of a
day and it minimizes the work schedule. And there is a big time gap
in making a kind of good relationship with customers which makes a
strong basement for doing survey. So it is very difficult to get
business in initial stages. In this way there is a lose of
opportunities for making business. Traveling though out the city
and its traffic blocks are another barriers in the survey.3. SINGLE
BRANCH OPERATIONS AND DIFFERENTIATED FACILITIES AND SERVICE Many
times the single branch operations are not convenience for the
customers especially the people who are doing business with other
locations. When there is a company introducing new facilities and
service, it takes a quiet bit of time to get faith of the
people.
CONCLUSIONOn a whole the project is a eye opener towards the
practical side of the business scenario. The knowledge acquired
through classroom sessions could be put to use in a real practical
world. This serves as the right platform for professional
development. The first hand experiences of the corporate atmosphere
and the culture practiced gave an insight into the true
professional attitude.
As a result of the hard-core work and efforts made t overcome
many hurdles and obstacles on the path of the project work, better
results are obtained and the company realizes the results of our
work through the materialization of sales of their product. Also
from the responses of the public that is conveyed to the
organization as a part of project work, really help the company in
their work process. In this way itself many customer complaints are
sold up to a remarkable extent. The types of marketing strategies
adopted by us really help the organization to boost up their brand
image and there by resulted in better returns.
REFERENCESBOOKS1. Marketing Management PHILIP KOTLER2.
Introduction to Quantitative Methods C.R.KOTHARI WEBSITE
www.kotak.com
www.indiainfoline.com www.wikepedia.comQUESTIONNAIRE
Date of data collection :
Name of the concerned person, designation :
Name of the company :
Contact address
1. Have you associated any way with Kotak Mahindra Group?
Yes
no
2. Have you taken life insurance policies?
Yes
no
If yes, with which
company?.........................................................
If no, would you like to take
now?..................................................
3. Are you aware of the potential of life insurance industry in
India?
Yes
no
4. Do you think that insurance is a good investment option?
Yes
no
5. Have you considered selling insurance as an additional
business option?
Yes
no 6. Are you dealing with, or selling life insurance products
of any company?
Yes
no
If yes, with which
company?..................................................................
If no,would you like to start insurance
distribution?...............................
7. Are you satisfied with the service and support they
provide?
Yes
no
8. Do you know you that you can earn up to 40% of the first year
premium as commission?
Yes
no
9. Are u aware that there is no capital required for starting
life insurance distribution?
Yes
no
10. Have u heard about Kotak safe investment plan which invest
up to 80% of the fund in equity market but still gives capital
guarantee?
Yes
no
11. Have you heard about Kotak Head Start, No.1Child plan in
India rated by outlook money?
Yes
no
12. Would you like to get associated with Kotak life
insurance?
Yes
no
- Thank you -Define the problem and research objectives
Develop the research plan
Collect the information
Analyze the information
Present the findings
Make the decision/Give solution