Download - Questionnaire
JAIPURIA INSTITUTE OF MANAGEMENT
LUCKNOW
ASSIGNMENT
OF
OPERATIONAL MANAGEMENT
ON
HDFC INSURANCE
SUBMITTED TO: SUBMITTED BY:
Mr. Asheesh Trivedi Animesh Agarwal (fs-08)
(Faculty of JIML) Amrita Tripathi (fs-07)
Ankit Gupta (fs-09)
Ankit Maheshwari (fs-10)
Ankit Tiwari (fs-12)
Shad Alam (fs -44)
INTRODUCTION
Life is a roller coaster ride and is full of twists and turns. You cannot take
anything for granted in life. Insurance policies are a safeguard against the
uncertainties of life.
Insurance is system by which the losses suffered by a few are spread over
many, exposed to similar risks. Insurance is a protection against financial loss
arising on the happening of an unexpected event. Insurance policy helps in not
only mitigating risks but also provides a financial cushion against adverse
financial burden.
Insurance policies cover the risk of life as well as other assets and valuables
such as home, automobiles, jewelry et al. On the basis of the risk they cover.
life is very fragile and death is a certainty. We cannot control the uncertainties
of life. But, we can cover the risks surrounding us. Life insurance, simply put, is
the cover for the risks that we run during our lives. It protects us from the
contingencies that could affect us.
Life insurance is not for the person who passes away, it for those who survive.
It is the responsibility of every bread earner to guard against the events that
could affect the family in the unfortunate circumstance of his / her demise.
Thus, having a life insurance policy is very vital. Before going for a life
insurance policy it is imperative that you know about various types of life
insurance policies.
INTRODUCTION TO THE INDUSTRY
THE HISTORY OF INDIAN INSURANCE INDUSTRY
Life Insurance
In 1818 the British established the first insurance company in India in Calcutta,
the Oriental Life Insurance Company. First attempts at regulation of the industry
were made with the introduction of the Indian Life Assurance Companies Act in
1912. A number of amendments to this Act were made until the Insurance Act
was drawn up in 1938. Noteworthy features in the Act were the power given to
the Government to collect statistical information about the insured and the high
level of protection the Act gave to the public through regulation and control.
When the Act was changed in 1950, this meant far reaching changes in the
industry. The extra requirements included a statutory requirement of a certain
level of equity capital, a ceiling on share holdings in such companies to prevent
dominant control (to protect the public from any adversarial policies from one
single party), stricter control on investments and, generally, much tighter control.
In 1956, the market contained 154 Indian and 16 foreign life insurance
companies. Business was heavily concentrated in urban areas and targeted the
higher echelons of society. “Unethical practices adopted by some of the players
against the interests of the consumers” then led the Indian government to
nationalize the industry. In September 1956, nationalization was completed,
merging all these companies into the so-called Life Insurance Corporation (LIC).
It was felt that “nationalization has lent the industry fairness, solidity, growth and
reach.”
Some of the important milestones in the life insurance business in India
are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
1956: The market contained 154 Indian and 16 foreign life insurance companies.
GROWTH AND DEVLOPMENT OF THE ORGANIZATION
HDFC Standard Life has recorded a strong year on year growth of 112% for the
period April-March 2005- 06, in comparison with the same period 2004-05, with
new business first year premium of Rs.1029 crores. The growth achieved by the
company was considerably higher than the private sector industry average of
84% for 2005-06. In terms of effective premium income (EPI), which gives a 10%
value to a Single Premium policy, and is an internationally accepted indicator of
an insurance company’s performance, the EPI grew by 103% from Rs.436 Cr. to
Rs. 887Cr.
HDFC Standard Life’s growth in new business is a result of number of lives
insured as well as, an increase in the average premium. For the individual
business, volume measured by the number of lives insured, witnessed a 32%
growth. The average premium also increased by 62% from Rs.17,000 in 2004-05
to Rs. 27,500 in 2005-06. Commenting on the huge potential that exists in the
Indian market today, Mr. Deepak Satwalekar, Managing Director & CEO of
HDFC Standard Life emphasised, “The GDP has been growing over 8% per
annum and 47% of all savings are now in financial saving forms; 16% of savings
is in the form of insurance premiums and another 16% is in Provident Fund and
Pensions i.e., 32% of India’s financial savings of the household sector are
available to be tapped. Therefore, growth for the private life insurance industry is
inevitable and HDFC Standard Life is confident of maintaining a steady
growthpace.”
Highlighting HDFC Standard Life’s differentiators, Mr. Deepak Satwalekar
said, “Our Company has the most competitive fund management charge, which
is the lowest in equity based products. Our fund management charge is as low as
0.8% per annum, the key to enhancing long-term returns. Our other differentiator
is that we believe in offering life insurance solutions to customers based clearly
on their needs, and ‘Disha’ is the way it is done.”
‘Disha’ is a Professional Sales Skills Training Program. The delegates in this
program are introduced to a ‘Need-based’ selling approach, which can cater to all
our clients opting for life insurance solutions. ‘Disha’ is aimed at providing a good
service to the client and building long-term relationships.
Contribution to the individual business premium income by the different channels
of distribution also changed significantly, compared to last year. The Corporate
Agency and Bancassurance channel has grown tremendously and currently
accounts for 43% of the company’s business. Speaking on this, Mr. Satwalekar
said, “The strategy to concentrate on activating a limited number of
bancasurance partners rather than going in for signing up a large number of
banks in the early years, also paid off. Our key to achieving bancassurance
success is our belief in a partnership approach, customized product offerings,
highly ethical dealings and providing good value to our partners and their
customers.”
HDFC Standard Life’s offerings of Employee Benefit Solutions, to the corporate
sector, through Group Business, have met with increased success with year on
year growth of 174%. Commenting on the strong growth of HDFC SL’s Group
Business, Mr. Satwalekar said, “Our excellent fund performance on retirement
products and increase in our client base with 150 clients cutting across a
spectrum of industries spanning from multinationals to PSUs to the older
business houses, have been the highlights of the year.”
Ongoing training for conventional products and specialized training for unit linked
products for more than 33,000 of our financial consultants has also helped its
customers choose the products best suited for their need for protection, savings,
investments and pensions. HDFC Standard Life is the only company requiring
its sales force to undergo specific training in ULIPs before they are permitted to
sell the same. There has been a huge jump in the number of its Financial
Consultants who have qualified to become members of the prestigious Million
Dollar Round Table (MDRT). From 124 members as on 31st December 2004, the
number has increased to 318 members as on 31st December 2005.
HDFC Standard Life continues to have one of the widest reaches amongst new
insurance companies. The Company’s geographical presence has also
increased and covers 169 offices across the country
QUESTIONNAIRE
TOPIC: “To study the awareness of Insurance with reference of HDFC in terms of Reliability, Responsiveness, Assurance, Empathy and Tangibility”
NAME OF RESPONDENT ……………………………………………………………..GENDER: ………………………………………………………………………………..ADDRESS: …………………………………………………………………………..CONTACT NUMBER: …………………………………………………………………..
1. ARE YOU EMPLOYED?YES NO
If YES, only then proceed
2. RESPONDENT PROFESSION?(PLEASE TICK)
a.) BUINESSMAN b.) SERVICEMANc.) PROFESSIONALS d.) OTHERS
3. ARE YOU ABOUT THE TERM INSURANCE? YES NO
4. DO YOU KNOW ABOUT IRDA? YES NO
5. DO YOU HAVE ANY INSURANCE POLICY?YES NO
6. WHICH INSURANCE POLICY DO YOU HAVE?
LIFE NON-LIFE BOTH
7. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST? (RANK THEM)
a) LIC
b) ICICIPRUDENTIAL
c) SBI LIFE INSURANCE
d) ING VYSYA LIFE
e) RELIANCE LIFE INSURANCE
f) TATA AIG LIFE
g) ANY OTHER ________( Specify)
8. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? (Please Tick)
a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______ (Specify)
9. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER? (RANK THEM)
a) COVER FUTURE UNCERTAINITY
b) TAX DEDUCTIONS c) FUTURE INVESTMENT
d) ANY OTHER _________ (Specify)
10. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT? (RANK THEM)
a) LOW PREMIUM
b) LARGER RISK COVERANCE
c) MONEY BACK GUARNTEE
d) REPUTATION OF COMPANY
e) EASY ACCESS TO AGENTS
f) ANY OTHER _________ (Specify)
12. YOUR MONTHLY INCOME?
a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)
13 DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAY’S SCENARIO IS NOT ESSENTIAL?
_____________________________________________________
14. WHAT’S YOUR PERCEPTION ABOUT INSURANCE? (RANK THEM)
a) A SAVING TOOL
b) A TAX SAVING DEVICE c) A TOOL TO PROTECT FUTURE
15. HOW HAS/WOULD YOU BOUGHT/BUY INSURANCE?
a) CUSTOMER APPROCHED INSURANCE COs
b) INSURANCE COs APPROCHED CUSTOMER 16. ARE YOU SATISFIED WITH THE POLICY?
a) SATISFIED SAVING TOOL
b) NOT SATISFIED c) NOT RESPONDING
17. ARE YOU SATISFIED WITH THE SERVICE OF YOUR EXISTING INSURANCE COMPANY?
a) SATISFIED SAVING TOOL
b) NOT SATISFIED c) NOT RESPONDING
18. ARE YOU SATISFIED WITH THE SERVICE AGENT? a) SATISFIED SAVING TOOL
b) NOT SATISFIED c) NOT RESPONDING
19. ARE YOU SATISFIED WITH THE BEHAVIOR AFTER PUCHASING THE POLICY? YES NO
20. ARE YOU SATISFIED EITH THE TERMS AND CONDITIONS OF YOUR EXISTING POLICY? YES NO
21. DO YOU PAY TAXES?
YES NO
22. WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM)
a) LIC
b) NSC
c) BONDS
d) PPF
e) PF
f) EPF
23. WHICH IS THE BEST FORM OF INVESTMENTS? (RANK THEM)
a) FIXED ASSETS
b) BANK DEPOSITS
c) JEWELLERY
d) SECURITIES, i.e. Bonds, MFs
e) SHARES
f) INSURANCE
24. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?
a) SAVING & RETURNS
b) SECURITY c) TAX BENIFITS
25. WHAT’S THE RIGHT AGE TO BUY INSURANCE?
a) AFTER 25 Yrs
b) AFTER 35 Yrs c) AFTER 45 Yrs
d) ANYTIME
26. HOW WOULD YOU RATE INDIAN INSURANCE COs?
a) RIGID PLANS
b) NON-USER FRIENDLY
c) UNSATISFATORY SREVICES
d) NON-AGGRESSIVE
e) SATISFACTORY
f) GOOD
g) VERY GOOD
27. WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs? (RANK THEM)
a) A TRUSTED NAME
b) FRIENDLY SERVICE & RESPONSIVENESS c) GOOD PLANS
d) ACCESSIBILITY
28. ARE YOU PLANNING FOR NEW INVESTMENTS?
PLANNING NOT PLANING
29. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS?
a) YES
b) NO
c) UNCERTAIN
Remarks……………………………………………………………………………………………………………………………………………………………………………………………………………………..
Date-Place- Respondent signature
GAP ANALYSIS
SERVQUAL Model is a tool through which customer evaluates service quality
experience as outcome of the gap between expected and perceived quality.
The model was developed by Parasuram, Zeithaml and Berry in 1985 which
emphasizes on the key requirements for a service provider delivering the
expected service quality. It is also called PZB Model.
The model identifies five gaps that can cause unsuccessful service delivery.
By learning the flow of this model, it is possible to exercise greater
management control over the customer relationship. The study of this model
lead to an improved realization of the key issues at which the service provider
can influence the satisfaction of consumers.
SERVQUAL Model can be used to measure the gap between customers’
expected and perceived quality in the five different dimensions. These
dimensions are the pillar of the SERVQUAL Model. They are Reliability,
Assurance, Tangibles, Empathy and Responsiveness.
Above RATER (Reliability, Assurance, Tangibles, Empathy and
Responsiveness) Dimensions can be understood using following variables.
Reliability
1. Show sincere interest in solving customer problems
2. Perform the service right the first time
3. Provide their service as promised
4. Insist on error-free records
Assurance
1. Employee behavior instill customer confidence
2. Customers feel safe in their transactions
3. Employees are consistently courteous
4. Employees have knowledge to answer questions
Tangibility
1. Modern-looking equipment
2. Visually appealing physical facilities
3. Employees are neat-appearing
4. Visually appealing materials associated with the service
5. Keep promises
Empathy
1. Give customers individual attention
2. Operating hours are convenient to all customers
3. Employees give customers personal attention
4. Customers' best interests are at heart
5. Employees understand the specific needs of customers
Responsiveness
1. Inform exactly when services will be performed
2. Employees give prompt service
3. Employees are always willing to help
4. Employees are never too busy to respond to requests
SERVQUAL Model is a useful tool to find out the gaps which are shown in the
figure. In case of the service industry, this gaps can be understood as follows:
GAP 1: Lack of Understanding (Gap between Consumer Expectation
and Management Perception)
GAP 2: Lack of Development (Gap between Management Perception
and Service Quality Specification)
GAP 3: Poor Delivery (Gap between Service Quality Specifications and
Service Delivery)
GAP 4: Unrealistic Expectation (Gap between Service Delivery and
External Communication)
GAP 5: Service Gap (Gap between Perceived Service and Delivered
Service)
Service quality Specifications
Service delivery
Perceived service
Expected service
Personal needs Past experienceWord-of-mouthCommunication
External Communications
to clients
Gap 4
Gap 1Gap 2
Gap 3
Gap 5
Management perceptionsOf client expectations
Conceptual Model of Service QualityConceptual Model of Service Quality
Provider
Customer
Finding from SERVQUAL Model:
1. Tangible
3.663.683.7
3.72
3.743.763.783.8
EXPECTATION PERCEPTION
Expectation: 3.789Perception: 3.72
2. Reliability
3.7
3.72
3.74
3.76
3.78
3.8
EXPECTATION PERCEPTION
Expectation: 3.784 Perception: 3.73
3. Responsiveness
3.43.53.63.7
3.83.9
44.1
EXPECTATION PERCEPTION
Expectation: 4.07 Perception: 3.678
4. Assurance
3.3
3.4
3.5
3.6
3.7
3.8
3.9
EXPECTATION PERCEPTION
Expectation: 3.79 Perception: 3.475
5. Empathy
3.5
3.6
3.7
3.8
3.9
4
4.1
EXPECTATION PERCEPTION
Expectation: 3.68 Perception: 3.98
Comparative Gap Analysis
33.23.43.63.8
44.2
TA
NG
IBLE
RE
LIA
BIL
ITY
RE
SP
ON
SIV
EN
ES
S
AS
SU
RA
NC
E
EM
PA
TH
Y
EXPECTATION
PERCEPTION
In bracing for tomorrow, a paradigm shift in companies insurance through
innovative products and mechanisms involving constant up gradation and
revalidation of the insurance internal systems and processes is called for. This
requires product development and differentiation, innovation and business
process reengineering, micro-planning, marketing, prudent pricing,
customization, technological up gradation, home / electronic /, cost reduction and
cross-selling.
However, the kind of technology used and the efficiency of operations would
provide the much needed competitive edge for success in insurance business.
Furthermore, in all these customers’ interest is of paramount importance. The
insurance sector in India is demonstrating this and we do hope they would
continue to chart in this traded path.
RECOMMENDATIONS
Need to focus on the rural part of the country.
Need to create awareness about the term Insurance as there are many
other people in India who are not yet aware about it.
Need to focus on the customer service rather than the sales of the policies
which will attract to more customers as in the present scenario the
customer need to better services rather than the better policies. He may
get sacrifice on the terms and conditions of the policies but not at all ready
to have some default in the services.
Need to focus on customer needs and wants.
Need to have strong R&D for findings the hidden needs of the customer.
Need to implement the proper implementation by Employees.