A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT IN

HDFC INSURANCE, THANE

A PROJECT
Submitted to
UNIVERSITY OF MUMBAI
For partial completion of the degree of

BACHELOR OF MANAGEMENT STUDIES

Under the
FACULTY OF COMMERCE
By
ASHUTOSH SUBODH MISHRA

Under the guidance of

ASST. PROF. SHILPA SHELAR

SHETH T.J EDUCATION SOCIETY’S

SHETH N.K.T.T COLLEGE OF COMMERCE
& SHETH J.T.T. COLLEGE OF ARTS
KHARKAR ALI, THANE (W) 400601
ACADEMIC YEAR 2018-2019
 SHETH N.K.T.T COLLEGE OF COMMERCE
& SHETH J.T.T. COLLEGE OF ARTS
KHARKAR ALI, THANE (W)

CERTIFICATE

This is to certify that MR. ASHUTOSH SUBODH MISHRA has worked and duly completed
his project work for the degree of Bachelor of Management studies under the faculty of
commerce in the subject of commerce and his project is entitled, “CUSTOMER
RELATIONSHIP MANAGEMENT IN HDFC LIFE INSURANCE” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that no
part of it has been submitted previously for any degree or diploma of any university.

It is his own and fact report by his personal findings and investigation.

Name & signature ASST. PROF. SHILPA SHELAR

Of guiding teacher (EXTERNAL) (INTERNAL)

Date of submission College seal Signature

 DECLARATION BY STUDENT

I the undersigned MR. ASHUTOSH SUBODH MISHRA hereby declare that the work
embodied in this project work title “CUSTOMER RELATIONSHIP MANAGEMENT IN
HDFC LIFE INSURANCE” forms my own contribution to the research work carried out under
the guidance of ASST. PROF. SHILPA SHELAR is a result of my own research work and has
not been previously submitted to any other university for any other degree/diploma to this or any
other university.

Where reference has been made to previous work of other, it has been clearly indicated as such
and included in the bibliography.

I, hereby further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethics conduct.

ASHUTOSH SUBODH MISHRA

(Signature)

Certified by

ASST. PROF. SHILPA SHELAR

(Signature)
 ACKNOWLEDGEMENT

The presentation of the report in the way required has been made possible by the way of
contribution of various people.

The completion of this project report titled “CUSTOMER RELATIONSHIP

MANAGEMENT” brings to express thanks to one & all of those who helped along the way.

I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me chance to do
this project.

I would like to give a humble thanks to the Principal DR. (MS.) P.A. SHAH for the overall
support.

I would also like express my gratitude to our Coordinator, ASST. PROF. NIVEDITA
MUKHARJEE, for her support and guidance throughout this project.

I am very thankful to ASST. PROF. SHILPA SHELAR, my college project guide for guiding
me to conduct my project report.

I would like to thank the COLLEGE LIBRARY as well for providing me the various reference
books and magazines related to this project.
EXECUTIVE SUMMARY

In India life insurance sector plays a major role in savings of a person. There are many players in
life insurance sector, and LIC is leading as it has roots in India from more than 50 years. To
purchase anything in this world the customer has his/her own choice of preferences according to
those preferences only, one can purchase the require product. The project study of HDFC LIFE
INSURANCE linked with CRM (CUSTOMER RELATIONSHIP MANAGEMENT).

The aim of study to examine and make the company enable to the track customer sell the
appropriate product understanding their needs and wants and to insure a long term retention of
customers through the application of CRM in a comprehensive manner monitoring the
performance of CRM to take corrective actions necessary to assure the results match the plan
projections.

Coming to HDFC INSUARANCE in India it’s making effort to attract customers and tap the life
insurance market. So this study is also intended to find customers and the retention value through
the application of CRM in HDFC INSURANCE.

The method of this study is based on marketing research with structured questionnaire consisting
of multiple choice questions. The sample survey is conducted on 100 customers belonging to
different categories .private insurance companies are unable to create enough brand value and
trust in customers. Most of the companies have only 28% of market share in life insurance sector
when compare LIC. So CRM makes suggestions to HDFC INSURANCE sector how to make
trust of customers and hoe to make the retention value.
 INDEX

SR.
NO. CHAPTER PG. NO.

1 INTRODUCTION
1.1 Customer relationship management 1-2
1.2 Need of CRM 2-4
1.3 Advantages of CRM 4-8
1.4 What is insurance? 8-10
1.5 Introduction of HDFC life insurance 10-11
1.6 History of HDFC life insurance 11-14
1.7 Vision and mission 14
1.8 Products and services of HDFC life insurance 14-15
1.9 Marketing strategies of HDFC life insurance 15-16
1.10 7p’s of HDFC life insurance 16-18
1.11 CRM techniques used in HDFC life insurance 19
1.12 SWOT analysis 19-22
1.13 Awards and recognition 22-23
1.14 The leading insurance companies in India 23-28

2 RESEARCH METHODOLOGY
2.1 Statement of problem 29
2.2 Objectives 29
2.3 Hypothesis 30
2.4 Scope of the study 30
2.5 Limitations of the study 30-31
2.6 Source of data 31

3 LITERATURE REVIEW 32-34

4 DATA ANALYSIS AND INTERPRETATIONS 35-41

5.1 FINDINGS OF STUDY 42-43
5.2 SUGGESTIONS 43-44
5.3 CONCLUSIONS 44

6 BIBLIOGRAPHY 45

7 ANNEXURE 46
 CHAPTER 1
INTRODUCTION

1.1 CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

Several commercial CRM insurance packages are available which vary in their approach to
CRM. However, as mentioned above, CRM is not just a technology, but rather a comprehensive
customer-centric approach to an Organization’s philosophy in dealing with its customers. This
includes policies and process, front-of-house customer service, employee training, marketing
systems and information management. Hence it is important that any CRM implementation
considerations stretch beyond technology, towards the broader organizational requirements. The
objective of a CRM strategy most considers a company’s specific situation and its customers’
needs and expectations. Information gained through CRM initiatives can support the
development of marketing strategy by developing the organization’s knowledge in areas such as
identifying customer segments, improving customer retention, improving product offerings(by
better understanding customer needs),and by identifying the organization’s most profitable
customers. CRM strategies can vary in size, complexity and scope. Some companies consider a
CRM strategy to only focus on the management of a team of sales people. However, other CRM
strategy can cover customer interaction across the entire organization .many commercial CRM
insurance packages that are available provide features that serve sales, marketing event
management, and project management and finance. Successful CUSTOMER RELATIONSHIP
MANAGEMENT requires marketing, sales and service agility of a star company to enable
today’s business to outpace their competitors in the race for customers. Managing the customer
experience, maintaining a more reliable data base, improving service operations. Fostering
customer loyalty, embracing the characteristics of high performance marketing and other related
subjects. Making such a pivot in CRM to create customer interactions that produce optimal
experiences and LONG TERM relationships must be the top mission. Above all, those
experiences must be consistent with a company’s brand promise.

CRM defines the process of the company are fully occupied with acquiring customers, selling
the product to the customers, and maintaining a LONG TERM RELATIONSHIP to a customer.
CRM is actually a tremendous step forward in creating a system that can provide a means for

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retaining individual loyalty in a world of nearly seven billion souls. CRM helps in order to
understand changing nature of the customer because customer are not what they used to be.
CRM defines the process of the company are fully occupied with acquiring customers, selling
the product to the customers, and maintaining a LONG TERM RELATIONSHIP to a customer.
CRM is actually a tremendous step forward in creating a system that can provide a means for
retaining individual loyalty in a world of nearly seven billion souls. CRM helps in order to
understand changing nature of the customer because customer are not what they used to be.

1.2 NEED OF CRM

➢ Companies have to increasingly pursue a customer centric competitive strategy rather than a
product centric one.

➢ Customers demand constant access, immediate response & a personalized touch.

➢ Focus is shifting from supply chain to demand chain effectiveness.

➢ Better understanding & intelligent management of customer relationship is essential for

survival.

IMPORTANCE OF CRM

Customer Relationship management is the strongest and the most efficient approach in
maintaining and creating relationships with customers. Customer relationship management is not
only pure business but also ideate strong personal bonding within people. Development of this
type of bonding drives the business to new levels of success.

Once this personal and emotional linkage is built, it is very easy for any organization to identify
the actual needs of customer and help them to serve them in a better way. It is a belief that more
the sophisticated strategies involved in implementing the customer relationship management, the
more strong and fruitful is the business. Most of the organizations have dedicated world class
tools for maintaining CRM systems into their workplace. Some of the efficient tools used in most
of the renowned organization are BatchBook, Salesforce, Buzzstream, Sugar CRM etc.

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Looking at some broader perspectives given as below we can easily determine why a CRM
System is always important for an organization.

1. A CRM system consists of a historical view and analysis of all the acquired or to be acquired
customers. This helps in reduced searching and correlating customers and to foresee
customer needs effectively and increase business.
2. CRM contains each and every bit of details of a customer, hence it is very easy for track a
customer accordingly and can be used to determine which customer can be profitable and
which not.
3. In CRM system, customers are grouped according to different aspects according to the type
of business they do or according to physical location and are allocated to different customer
managers often called as account managers. This helps in focusing and concentrating on each
and every customer separately.
4. A CRM system is not only used to deal with the existing customers but is also useful in
acquiring new customers. The process first starts with identifying a customer and
maintaining all the corresponding details into the CRM system which is also called an
‘Opportunity of Business’. The Sales and Field representatives then try getting business out
of these customers by sophistically following up with them and converting them into a
winning deal. All this is very easily and efficiently done by an integrated CRM system.
5. The strongest aspect of Customer Relationship Management is that it is very cost-effective.
The advantage of decently implemented CRM system is that there is very less need of paper
and manual work which requires lesser staff to manage and lesser resources to deal with. The
technologies used in implementing a CRM system are also very cheap and smooth as
compared to the traditional way of business.
6. All the details in CRM system is kept centralized which is available anytime on fingertips.
This reduces the process time and increases productivity.
7. Efficiently dealing with all the customers and providing them what they actually need
increases the customer satisfaction. This increases the chance of getting more business which
ultimately enhances turnover and profit.

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8. If the customer is satisfied they will always be loyal to you and will remain in business
forever resulting in increasing customer base and ultimately enhancing net growth of
business.

In today’s commercial world, practice of dealing with existing customers and thriving business
by getting more customers into loop is predominant and is mere a dilemma. Installing a CRM
system can definitely improve the situation and help in challenging the new ways of marketing
and business in an efficient manner. Hence in the era of business every organization should be
recommended to have a full-fledged CRM system to cope up with all the business needs.

1.3 ADVANTAGES OF CRM

The advantages of customer relationship management system extend beyond running a business
and its closely related relationships. Ideally, a CRM system should help your business improve
the relationship with existing customers, find new customers and win back former customers.
This system is integrated into a software system that facilitates collection, organization and
management of the customer’s information. A CRM system can be beneficial to both small and
large scale businesses as long as it is implemented appropriately. This guide outlines the major
advantages of customer relationship management to expect upon installation of the software.

Advantages of Customer Relationship Management

• Enhances Better Customer Service

CRM systems provide businesses with numerous strategic advantages. One of such is the
capability to add a personal touch to existing relationships between the business and the
customers. It is possible to treat each client individually rather than as a group, by maintaining a
repository on each customer’s profiles. This system allows each employee to understand the
specific needs of their customers as well as their transaction file.

The organization can occasionally adjust the level of service offered to reflect the importance or
status of the customer. Improved responsiveness and understanding among the business
employees results in better customer service. This decreases customer agitation and builds on

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their loyalty to the business. Moreover, the company would benefit more by getting feedback
over their products from esteemed customers.

The level of customer service offered is the key difference between businesses that lead the
charts and those that are surprised with their faulty steps. Customer service efficiency is
measured by comparing turnaround time for service issues raised by customers as well as the
number of service errors recorded due to misinformation.

A good business should always follow – up with customers on the items they buy. This strategy
enables a business to rectify possible problems even before they are logged as complaints.

• Facilitates discovery of new customers

CRM systems are useful in identifying potential customers. They keep track of the profiles of the
existing clientele and can use them to determine the people to target for maximum clientage
returns.

New customers are an indication of future growth. However, a growing business utilizing CRM
software should encounter a higher number of existing customers versus new prospects each
week. Growth is only essential if the existing customers are maintained appropriately even with
recruitment of new prospects.

• Increases customer revenues

CRM data ensures effective co-ordination of marketing campaigns. It is possible to filter the data
and ensure the promotions do not target those who have already purchased particular products.
Businesses can also use the data to introduce loyalty programs that facilitate a higher customer
retention ratio. No business enjoys selling a similar product to a customer who has just bought it
recently. A CRM system coordinates customer data and ensures such conflicts do not arise.

• Helps the sales team in closing deals faster

A CRM system helps in closing faster deals by facilitating quicker and more efficient responses
to customer leads and information. Customers get more convinced to turn their inquiries into

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purchases once they are responded to promptly. Organizations that have successfully
implemented a CRM system have observed a drastic decrease in turnaround time.

• Enhances effective cross and up selling of products

Cross – selling involves offering complimentary products to customers based on their previous
purchases. On the other hand, up – selling involves offering premium products to customers in
the same category. With a CRM system, both cross and up – selling can be made possible within
a few minutes of cross – checking available data.

Apart from facilitating quicker offers to customers, the two forms of selling helps staff in gaining
a better understanding of their customer’s needs. With time, they can always anticipate related
purchases from their customer.

• Simplifies the sales and marketing processes

A CRM system facilitates development of better and effective communication channels.
Technological integrations like websites and interactive voice response systems can make work
easier for the sales representatives as well as the organization. Consequently, businesses with a
CRM have a chance to provide their customers with various ways of communication. Such
strategies ensure appropriate delivery of communication and quick response to inquiries and
feedback from customers.

• Makes call centers more efficient

Targeting clients with CRM software is much easier since employees have access to order
histories and customer details. The software helps the organization’s workforce to know how to
deal with each customer depending upon their recorded archives. Information from the software
can be instantly accessed from any point within the organization.

CRM also increases the time the sales personnel spend with their existing customers each day.
This benefit can be measured by determining the number of service calls made each day by the
sales personnel. Alternatively, it could also be measured through the face – to – face contact
made by the sales personnel with their existing customers.

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• Enhances customer loyalty
CRM software is useful in measuring customer loyalty in a less costly manner. In most cases,
loyal customers become professional recommendations of the business and the services offered.
Consequently, the business can promote their services to new prospects based on testimonials
from loyal customers. Testimonials are often convincing more than presenting theoretical
frameworks to your future prospects. With CRM, it could be difficult pulling out your loyal
customers and making them feel appreciated for their esteemed support.

• Builds up on effective internal communication

A CRM strategy is effective in building up effective communication within the company.
Different departments can share customer data remotely, hence enhancing team work. Such a
strategy is better than working individually with no links between the different business
departments. It increases the business’s profitability since staff no longer have to move
physically move while in search of critical customer data from other departments.

• Facilitates optimized marketing

CRM enables a business understand the needs and behavior of their customers. This allows them
to identify the correct time to market their products to customers. The software gives ideas about
the most lucrative customer groups to sales representatives. Such information is useful in
targeting certain prospects that are likely to profit the business. Optimized marketing utilizes the
business resources meaningfully.

CRM software will remain relevant for quiet long as long as businesses desire a quick balance
between product provision and customer acquisition. Inarguably, the advantages of customer
relationship management will remain relevant as long as businesses desire to build a competitive
advantage over their competitors.

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RESULTS OF CRM

➢ Sales Automation

a. 208% Increase in Lead Conversion\

b. 40% Increase in Cross Selling
c. 90% Reduction in Sales TAT

➢ Customer Service & Support

a. 52% Improvement in Service Quality

b. 42% Increase in Net Promoters Score

➢ Campaign Management

a. 370% Increase in Leads Generated

b. 108% Increase in Response Rate
c. 23% Increase in Campaign Frequency

➢ Staff Impact

a. 73% Bank workforce using CRM for Bank

b. 10,000+ No. of daily personalized reports

1.4 WHAT IS INSURANCE

Insurance is a contract between two parties where by one party called insurer undertakes in
exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount
of money in the happening of a certain event. Insurance is a protection against financial loss
arising on the happening of an unexpected event. Insurance companies collect premiums to
provide for this protection. A loss is paid out of the premiums collected from the insuring public
and the insurance act as trustees to the amount collected. For example in a life policy by paying a
premium to the insurer, the family of the insured person receives a fixed compensation on the
death of the insured. Similarly, in car insurance, in the event of the car meeting with an accident,
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the insured receives the compensation to the extent of damage. It is a system by which the losses
suffered by a few are spread over many exposed to similar risks.

WHY TO BUY LIFE INSURANCE

• To protect and support your beneficiaries home and livelihood.

• To replace your income and minimize the debt load for your heirs.
• To provide beneficiaries with income tax free proceeds.
• To provide heirs with benefits to pay the tax on your estate.
• To help protect the value of your estate.

Life insurance helps protect the financial security of your family in the event of your on timely
death. This is especially important when you are the primary wage earner. The owner of the
policy pays the insurer premiums in exchange for a promise to pay the beneficiaries a death
benefit upon the death of the insured.

WHO PROVIDES IT

Reforms in the insurance sector were initiated with the passage of the IRDA bill in parliament in
DEC 1999. The IRDA since incorporation as a statutory body in APRIL 2000 has fastidiously
stuck to its schedule of framing regulations and registering the private sector insurance
companies. The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies were the launch of the IRDA’S
online service for issue and renewal of licenses to agents. Since being set up an independent
statutory body the IRDA has put in a frame work of globally compatible regulations. In the
private sector 12 life insurance and 6 general insurance companies have been registered.
By passing of the IRDA bill, the insurance sector has been opened up for private companies to
carry on insurance business. Insurance contracts are based on good faith i.e. the details furnished
by the proposer are accepted in good faith and this will form the basis of the contract.

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WHAT ARE YOUR OPTIONS

Essentially, insurance companies offer two different types of life insurance policies:
• Permanent
• Term

PERMANENT POLICY:
Permanent insurance coverage such as whole life, universal life and variable life has the potential
to provide coverage to a specified maturity date.

TERM INSURANCE:
Coverage that lasts for a specific time period and has two components.
1. Premium and
2. Death benefit

OTHER FACTS ABOUT LIFE INSURANCE THAT YOU NEED TO KNOW

• Life insurance is an essential part of financial planning.
• Income tax-free death benefit proceeds payable to your beneficiaries.
• Needs and goals determine the amount to own.
• Helps ensure that your dependents are not burdened by debt.
• The younger and healthier you are when you purchase life insurance, the less it will be cost
you to own a life insurance, the less will be cost you to own a life insurance policy.
• Life insurance needs should be revaluated when major events occur in life such as marriage,
the birth of children or a business startup.

1.5 INTRODUCTION OF HDFC LIFE INSURANCE

HDFC Standard Life insurance Company Ltd. Is one of India’s leading private life insurance
companies, which offers a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Ltd.) India’s leading
providers of financial services in the United Kingdom. Both the promoters are well known for

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their ethical dealings and financial strength and are thus committed to being a long-term player
in the life insurance industry –all important factors to consider when choosing your insurance.
HDFC is India’s leading housing finance institution and has helped build more than 23, 00,000
houses since its incorporation in 1977.In the financial year 2003-04 its assets under management
crossed Rs.36,000cr.As march 31, 2004 outstanding deposits stood at Rs. 7,480 crores. The
depositor base now stands at around 1 million depositors. Rated ‘AAA’ by CRSIL and ICRA for
the 10th consecutive year. The Standard Life group has been looking after the financial needs of
customers for over 180 years. It currently has a customer base of around 7 million people who
rely on the company for their insurance, pension, investment, banking and health-care needs. Its
investment manager currently administers 125 billion assets. It is a leading pension provider in
UK, and is rated by standard & poor’s as ‘strong’ with a rating of A+ and as ‘good’ with a rating
of A1 by moody’s Standard Life was awarded the Best pension provider’ in 2004, 2005 and
2006 at the money marketing Awards, and it was voted a 5 star life and pensions providers at the
Financial Advisor service Awards for the last 10 years running. The ‘5’star accolade has also
been awarded to standard Life investments for the last 10 years, and to standard Life bank since
its inception in 1998.standard Life bank was awarded the ‘best flexible mortgage lender ‘at the
mortgage magazine Awards In 2006.

1.6 HISTORY OF HDFC LIFE INSURANCE

The Insurance Regulatory and Development Authority (IRDA) was constituted in 1999 as an
autonomous body to regulate and develop the insurance industry. The IRDA opened up the
market in August 2000 with the invitation for application for registrations. HDFC Life was
established in 2000 becoming the first private sector life insurance company in India

By 2001, the company had its 100th customer, strengthened its employee force to 100 and had
settled its first claim. HDFC Life launched its first TV advertising campaign 'Sar Utha Ke Jiyo'
in 2005. In 2006, a study conducted by the Brand Equity – Economic Times had put HDFC Life
at 29th rank in the most trusted Indian Brands amongst the Top 50 Service Brands of 2010.

The Insurance Regulatory and Development Authority (IRDA) gave accreditation to HDFC Life
for 149 training centres housed in its branches to cater to the mandatory training required to be
given as well as for other sales training requirements in 2009.

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In 2012, it the first private life insurance company to bring back pension plans under the new
regulatory regime, with the launch of two pension plans - HDFC Life Pension Super Plus and
HDFC Life Single Premium Pension Super.

HDFC Standard Life Insurance Company Limited was incorporated as a public limited company
at Mumbai on 14th August 2000. The Company obtained the certificate of commencement of
business on October 12 2000. Further the Company obtained its certificate of registration from
Insurance Regulatory and Development Authority of India (IRDAI) to undertake the life
insurance business on 23rd October 2000.HDFC Standard Life is one of the most profitable life
insurers based on Value of New Business (VNB) margin. Besides consistently being among the
top three private life insurers in terms of profitability based on VNB margin the company has
also consistently been among the top three private life insurers in terms of market share based on
total new business premium. HDFC Standard Life was the first private sector life insurer to
obtain registration from the IRDAI and was established as a joint venture between HDFC (one of
India's leading housing finance institutions) and Standard Life Aberdeen plc (one of the world's
largest investment companies) initially through its wholly owned subsidiary The Standard Life
Assurance Company and now through its wholly owned subsidiary Standard Life Mauritius.
Currently the Company has 413 branches across India. The Company has a broad diversified
product portfolio covering five principal segments across the individual and group categories
namely participating non-participating protection term non-participating protection health other
nonparticipating and unit-linked insurance products. The Product portfolio comprises 35
individual and 11 group products as well as eight optional rider benefits. In 2003 HDFC
Standard Life crossed 1 lakh policies and 10000 individual agents. During the year the company
entered into distribution tie-ups with HDFC Bank and other banks. In 2004 the company
launched unit linked products. During the year the company entered into distribution tie-up with
Saraswat Co-operative Bank Limited. In 2007 HDFC Standard Life crossed the 5 lakh policy
milestone. In 2010 HDFC Standard Life's total assets under management (AUM) crossed Rs
20000 crore.In Fiscal 2012 the Company established a wholly-owned subsidiary HDFC Pension
to operate the pension fund business under the National Pension System. HDFC Pension is the
second largest private pension fund management company in India in terms of assets under
management and subscribers in Fiscal 2017. HDFC Standard Life turned profitable in fiscal 2012
and registered a profit of Rs 271 crore. In December 2013 the company declared a maiden

12
dividend. In 2014 the company's AUM crossed Rs 50000 crore mark.In 2016 HDFC Standard
Life's total premium crossed the Rs 16000 crore mark. During the year Standard Life Mauritius
increased its stake in HDFC Standard Life Insurance Company from to 35% from 26%. In Fiscal
2016 The Company established a first international subsidiary in the UAE HDFC International to
operate the reinsurance business. HDFC International has signed reinsurance treaties for two
distinct lines of individual life business and entered into arrangements to offer reinsurance for
group and credit life schemes. The Company expects the pension and reinsurance business to
help them diversify its sources of revenue and profitability in future. On 31 July 2017 HDFC
Standard Life Insurance Company and Max Group entities called off proposed merger of their
life insurance businesses as the parties were unable to obtain the requisite regulatory approvals to
consummate the merger. Earlier on 8 August 2016 HDFC Standard Life Insurance Company and
Max Group Entities had announced the merger of their life insurance businesses through a
composite scheme of arrangement and had entered into certain definitive agreements to
implement the same subject to satisfaction of various conditions including the receipt of
necessary approvals.On 21/08/2017 the company filed Draft Red Herring Prospectus and on
27/10/2017 filed Red Herring Prospectus with SEBI for raising Rs. 8695 cr. The Issue dates were
from 07/11/2017 to 09/11/2017 with Price Band of Rs. 275 to Rs. 290. The Issue got subscribed
3.83 times leading to its Issue Price being fixed at Rs. 290. The Shares got listed in BSE and
NSE on 17/11/2017 at Rs. 311 which is 7.24% above Issue Price.

Shareholders (as of 31 December 2015) Shareholding

Promoter group (HDFC) 21.57%

Foreign institutional investors (FII) 32.4%

Individual shareholders 8.5%

Bodies corporate 7.5%

Insurance companies 5.38%

13
Mutual funds/UTI 8.65%

NRI/OCB/others 0.29%

Financial institutions/banks 2.75%

ADS/GDRs 18.78%

1.7 VISION AND MISSION

HDFC life insurance’s mission is to be a World Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred provider of
banking services for target retail and wholesale customer segments, and to achieve healthy
growth in profitability, consistent with the bank's risk appetite. The bank is committed to
maintain the highest level of ethical standards, professional integrity, corporate governance and
regulatory compliance. HDFC Bank’s business philosophy is based on five core values:
Operational Excellence, Customer Focus, Product Leadership, People and Sustainability.

1.8 PRODUCTS AND SERVICES OF HDFC LIFE INSURANCE

HDFC Life's products include Protection, Pension, Savings, Investment, Health along with
Children and Women plans. The company also provides an option of customizing the plans, by
adding optional benefits called riders, at an additional price. The company currently has 29 retail
and 8 group products, along with 7 optional rider benefits (as on 7 May 2018)
• Protection Plans - insurance plans that provide protection and financial stability to the family
in case of any unforeseen events.
• Click2Protect Plus is their online term plan.
• Launched CSC Suraksha to be sold exclusive through the Common Services Centre network.
• Click2Invest is their online ULIP investment plan.
• Health Plan – offers financial security to meet health related contingencies.

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• Savings & Investment plans - These plans help in investment to achieve financial goals.
• Retirement plans - financial security for life post retirement.
• Women's plans - plans catering to different financial needs of women.
• Children's plans – plans meant to secure children's future.
• Rural & social Plans – meant specifically for rural customers.
• Click2Retire completed their Click2 portfolio.
• ULIP Investment with more funds.

1.9 MARKETING STRATEGIES OF HDFC LIFE INSURANCE

Banking Industry is one of the most important service industries which touches the lives of
millions of people. Its service is unique both in social and economic points of view of a nation.
Earlier the attitude of banking service was that it was not professional to sell one's services and
was unnecessary in the sense that traditional relationships and quality of products were sufficient
to carry forward the tasks. Before the mid 1950's the banks had no understanding or regard for
marketing. The bank building was created in the image of a Greek Temple to impress the public
about the importance of a bank. The interior was austere and the teller rarely smiled. Bankers
maintained austere dignity and they hardly maintained friendliness Marketing strategy is defined
by David Aaker as a process that can allow an organization to concentrate its resources on the
optimal opportunities with the goals of increasing sales and achieving a sustainable competitive
advantage. Marketing strategy includes all basic and long-term activities in the field of marketing
that deal with the analysis of the strategic initial situation of a company and the formulation,
evaluation and selection of market-oriented strategies and therefore contribute to the goals of the
company and its marketing objectives It was in the late 1950's that marketing in banking industry
emerged in the west. It emergence was in the form of advertising and promotion concept. At that
time, personal setting could not get a significant place. (.3radually there was a change in the
attitude of bankers, probably in time with the attitudinal change in customers. The idea of
customers' satisfaction began in the late 1950's, flourished in 1960's and became an integral part
of the banking services in the 1970's. But the same trend could not be applicable, especially in
developing countries and to be more specific in India because of socioeconomic and political
reasons. Marketing came into Indian banks in the late 1950's not in the form of marketing

15
concept but in the forms of advertising and promotion concept. Soon it was realized that
marketing transcends advertising and friendliness'. Till 1950 it was recognized that personal
selling was not necessary. The bankers went out of their way to avoid being accused of selling.
The bankers even eliminated the word 'selling' and they called the function of customer contact
'business development function'. The bankers' attitudes and comprehensions about marketing
changed in the 1960's. They began to realize that marketing was a lot more than smiling and
friendly tellers2. The idea of customer convenience began in the late fifties and it flourished in
the 1960's. Bankers were beginning to understand the concept of market segmentation in the late
1960's. The bank marketing profession changed dramatically in the 1970's. Marketing positions
in banks were created and marketing was accepted as an organizational imperative. To
understand how banking services can be marketed better, one must examine banking as a service
industry, in the content of a swiftly changing environment, redefine marketing to suit a banker's
needs, analyze how the marketing of financial services differs from that of other products,
identify the tasks involved there in and set forth a series of steps for effective bank marketing

1.10 7P’s OF MARKETING MIX OF HDFC LIFE INSURANCE

Marketing Mix of HDFC Bank analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the HDFC Bank marketing strategy. The article elaborates the
pricing, advertising & distribution strategies used by the company.

Product:

HDFC life insurance is one of the leading banks in India. HDFC offers a wide range of products
in its marketing mix strategy, namely in personal and enterprise sector. The various services
offered by HDFC Bank are summarized as follows. Accounts and deposits which covers savings
accounts, salary accounts, current accounts, deposits, safe deposit lockers, rural accounts and
pension accounts. HDFC Bank offers loans to meet the diverse needs and it cover personal loans,
car loans, business loans etc. HDFC offers cards which includes credit cards, debit cards, prepaid
cards, credit card reward programs and loan on credit card. Demat options for investors which
includes demat account, 2 in 1 account, 3 in 1 account and investment assist. Investment options

16
covering Invest Track, investment products, investment advisory group reports, PPF (public
provident fund) and sukanya samriddhi account are provided to HDFC customers. Insurances for
various options like life, health, motor insurance, travel, home, two wheeler and student travel -
suraksha. Forex includes travel solutions, remittance products, other forex services for help and
purchase.

HDFC life insurance also includes online payment options like Pay bills and shop online, Fund
transfer options, bill payments, tax payment, donate online etc. The premier options include
Direct equity, Mutual funds, Fixed income products, Insurance, Private equity funds, Structured
products and Estate planning

Price:

HDFC life insurance follows a competitive pricing strategy in its marketing mix but maintains a
premium level at the same time. It is clearly visible that it enjoys maximum market capital in
terms of shares in India. The other domestic competitors are either PSUs or national bank, HDFC
Bank is always priced higher in terms of minimum cap required to open a new account. RBI
controls and regulates the pricing policies, like for any other bank in India.

Place:

HDFC life insurance has got a strong presence all across India. Till 2016, HDFC outreached
4500+ branches in approx 2600 cities/towns with 12000 ATMs. HDFC Bank makes sure that its
presence is felt in each and every corner of the nation and every individual should avail its
facilities equally. HDFC has its major offices in cities and towns for smooth operation process.
Its website is well designed and well maintained. It facilitates ease of net banking, online
payment options, etc.

Promotion:

HDFC life insurance focuses a lot on the promotional strategy in its marketing mix. HDFC is
involved in large number of CSR activities for sustainable livelihood, financial literacy,
education, training and community initiatives. HDFC has always made its presence feel in the

17
media through advertisements, hoardings, posters, ads in newspapers, magazines, promotional
events, sponsorships, etc. HDFC also has shareholdings in corporate bodies, mutual funds,
financial institutions, etc which creates a sense of value and trust amongst the shareholders and
customers towards this particular brand.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing
mix of HDFC Bank.

People:

HDFC life insurance gives strong importance on its people ie customers and employees. Through
its multi demographic culture it is clearly visible that HDFC believes in diversity and inclusion.
In India it has spread its offices geographically in every state, to spread awareness to the
maximum number of people. With the help of this advanced technology, HDFC bank employees
will be highly satisfied and they will always get competitive edge over others.

Physical Evidence:

HDFC provides best in house facilities with up to date infrastructure and global environment in
all its offices. The complete setup helps the employees to experience the best work environment
so that they perform as per the organization’s expectations. HDFC offices, branches, credit cards,
website etc are all the physical evidence of the brand.

Process:

HDFC life insurance has several business processes like all other financial institutions. Through
the various social activities and best practices HDFC maintains a good relation with its
customers and investors, which in turn avoids a bad ‘word of mouth’. All these helps the
organisation to grow in long term and motivates its employees to continue being loyal to it and
give their best throughout their tenure. The customers are also successfully retained and new
ones are attracted. Hence, this concludes the marketing mix of HDFC bank.

18
1.11 CRM TECHNIQUES USED IN HDFC LIFE INSURNCE

• HDFC Life are committed to maintaining the highest level of customer service. Hence they
have tried to provide customers with all the information they may want to seek regarding
procedures such as paying their premium, various policy servicing options, processing a
claim and so on.
• Customers can manage their account online and access and manage life policies online, avail
17 premium payment options, know about tax benefits and tax laws applicable to their
policy, able to contact the company, download policy servicing forms for permissible policy
alterations, make claims for benefits, and enquire about lapsation and revival of policies.
• The Company also provides a key feature document, a notice corner, an information centre
and a grievance Redressal centre.

1.12 SWOT ANALYSIS

SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate
the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieving that objective. The technique is
credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI
International) in the 1960s and 1970s using data from Fortune 500 companies. The degree to
which the internal environment of the firm matches with the external environment is expressed
by the concept of strategic fit. Setting the objective should be done after the SWOT analysis has
been performed. This would allow achievable goals or objectives to be set for the organization.

Strengths: characteristics of the business or project that give it an advantage over others

Weaknesses: are characteristics that place the team at a disadvantage relative to others

Opportunities: elements that the project could exploit to its advantage

19
Threats: elements in the environment that could cause trouble for the business or project
Identification of SWOTs is important because they can inform later steps in planning to achieve
the objective.

First, the decision makers should consider whether the objective is attainable, given the SWOTs.
If the objective is not attainable a different objective must be selected and the process repeated.
Users of SWOT analysis need to ask and answer questions that generate meaningful information
for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful
and find their competitive advantage. SWOT analysis aims to identify the key internal and
external factors seen as important to achieving an objective. The factors come from within a
company's unique value chain. SWOT analysis groups key pieces of information into two main
categories:

➢ Internal factors – The strengths and weaknesses internal to the organization

➢ External factors – the opportunities and threats presented by the environment external to the
organization Analysis may view the internal factors as strengths or as weaknesses depending
upon their effect on the organization's objectives. What may represent strengths with respect
to one objective may be weaknesses (distractions, competition) for another objective. The
factors may include all of the 4Ps; as well as personnel, finance, manufacturing capabilities,
and so on. The external factors may include macroeconomic matters, technological
change, legislation, and socio-cultural changes, as well as changes in the marketplace or in
competitive position. The results are often presented in the form of a matrix. SWOT analysis
is just one method of categorization and has its own weaknesses. For example, it may tend to
persuade its users to compile lists rather than to think about actual important factors in
achieving objectives. It also presents the resulting lists uncritically and without clear
prioritization so that, for example, weak opportunities may appear to balance strong threats.
It is prudent not to eliminate any candidate SWOT entry too quickly. The importance of
individual SWOTs will be revealed by the value of the strategies they generate. A SWOT
item that produces valuable strategies is important. A SWOT item that generates no strategies
is not important.

20
STRENGTHS

• HDFC offers a range of individual and group insurance solutions.

• HDFC has the financial expertise required to manage your long-term investments safely and
efficiently.
• The company has covered over 8, 77,000 lives year ending March 31, 2007
• Rated ‗AAA‘by CRISIL and ICRA for the 10th consecutive year for High service standards
• HDFC Bank industry is a rapid growing and a nobler service industry.

WEAKNESSES

• LIC is prevalent and sustains even today a major source of population.

• Low number of offices and network and number of life insurance agents.
• Lack of knowledge and expertise.
• Heavy management expenses and administrative costs.
• Low customer confidence on the private players.
• Poor retention percentage of tied up agents.

OPPORTUNTIIES

• HDFC has captured its mere15–20% growth therefore a wide open untapped market is open
to the company to develop, grow and measure its success.
• Still the number of companies is few and company has every capabilities to grow and
forward its performance areas to the widest

THREATS

• People are hesitant to invest and put their hard earned money to the private life insurance
company with the fear of getting lost.

21
• Belief Banks (government) corporation phobia is continued to surmount the people of India
despite lots of flaws and development and liberalization of life insurance.
• Alternative financial services such as mutual fund, banking services, share and securities also
pose problems and threats to the working of the life insurance sector.
• Illiteracy and unemployment also pose threat.

1.13 AWARDS AND RECOGNITION

Best Banking Performer, India in 2016 by Global Brands Magazine Award.

Best Performing Branch in Microfinance among private Award for Best Performance in
sector banks by NABARD, 2016 Microfinance

Bank of the year & best digital

KPMG study of India's Best Banks
banking initiative award 2016

AIMA Managing India Awards 2015 Business leader of the year- Aditya

22
 Puri

Most Valued brand in India for third

BrandZ Rankings
successive year

Best managed public company –

Finance Asia poll on Asia's Best Companies 2015
India

Barron's World's 30 Best CEOs - Aditya Puri

Best in class straight through

J. P. Morgan Quality Recognition Award
processing rates

1.14 THE LEADING INSURANCE COMPANIES IN INDIA

➢ LIC OF INDIA
➢ ICICI LIFE INSURANCE
➢ HDFC STANDARD LIFE INSURANCE
➢ MAXLIFE INSURANCE

LIFE INSURANCE CORPORATION OF INDIA

The parliament of India passed the Life insurance Corporation Act on the 19th September, 1956,
with the objective of spreading life insurance much more widely and in particular to the rural
areas with a view to reach all insurable persons in the country, providing them adequate financial
cover at a reasonable cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices,
apart from its corporate office in the year 1956.since life insurance contracts are long term
contracts and during the currency of the policy it requires a variety of services need was felt in
the later years to expand the operations and place a branch office at each district headquarter. Re-

23
organization of LIC took place and large numbers of new branches were opened. As a result of
re-organization servicing functions were transferred to the branches, and branches were made
accounting units. It worked wonders with the performance of the corporation. It may seen that
from about 200.00 crores of New business in 1957 the corporation crossed 1000.00 crores mark
of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had
already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7
zonal offices and the corporate office. LIC’s wide Area Net work covers 100 divisional offices
and connects all the branches through a metro network .LIC has tied up with some banks and
service providers to offer on-line premium collection facility in selected cities.LIC’s ECSand
ATM premium payment facility is an addition to customer convenience. Apart from on-line
kiosks and IVRS, info centers have been commissioned at Mumbai, Ahmadabad, Bangalore,
Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of
providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK
offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized
records of the satellite offices will facilitate anywhere servicing and many other conventions in
the future.
LIC continues to be the dominant life insurer even in the liberalized scenario of India insurance
and is moving fast a new growth trajectory surpassing its own past records. LIC has issued over
one crore policies during the current year. It has crossed the mile stone of issuing 1,01,32,955
new policies by 15th oct, 2005, posting a healthy growth rate of 16.67% over the corresponding
period of the previous year. From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life insurance business. The same
motives which inspired our forefathers to bring insurance into existence in this country inspire us
at LIC to take this message of protection to light the lamps of security in as many homes as
possible and to help the people in providing security to their families.

24
ICICI PRUDENTIAL LIFE INSURANCE COMPANY

India’s Number One private life insurer, ICICI prudential Life insurance company is a joint
venture between ICICI Bank-one of India’s foremost financial services companies-and
prudential plc- a leading international financial services group headquartered in the United
Kingdom. Total capital infusion stands at Rs.18.15 billion, with ICICI Bank holding a stake of
74% and prudential plc holding 26%.
ICICI Bank(NYSE:IBN) is India’s second largest bank and largest private sector bank with
assets of Rs. 2958 billion as on December 31,2006. ICICI bank provides a broad spectrum of
financial services to individuals and companies. This includes mortgages, car and personal loans,
credit and debit cards, corporate and agriculture finance. The Bank services a growing customer
base through a multi-channel access network which includes over 695 branches and extension
counters, 3051 ATM’S call centers and internet banking.
Established in London in 1848, prudential plc through its business in the UK and Europe. US
and Asia, provides retail financial services products and services to more than 21 million
customers, policy holder and unit holders worldwide. Today, prudential has millions of
customers worldwide and over 238 billion (as of 30 June 2006) of funds under management. In
Asia ,prudential is the leading European life insurance company with a vast network of life and
fund management operations in thirteen countries- China Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam and united Arab
Emirates. ICICI prudential began its operations in December 2000 after receiving approval from
insurance Regulatory Development of Authority (IRDA). Today, the nation-wide team
comprises about 500 offices, over 200,000advisors; and 22 banc-assurance partners.
ICICI prudential was the first life insurer in India to receive a National insurer Financial
Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI prudential has
been voted as India’s most trusted private life insurer, by the economic tomes –AC Nielsen ORG
Marg survey of ‘Most Trusted Brands’. As we grow our distribution, product range and customer
base, we continue to tirelessly upload our commitment to deliver world-class financial solutions
to customers all over India. The ICICI prudential edge comes from the commitment to
customers, in all that is done-be it product development, distribution, the sales process or
servicing.

25
• The products have been developed after a clear and thorough understanding of customers,
needs. It is this research that helps in developing Education plans that offer the ideal way to
truly guarantee for Child’s education, Retirement solutions that are a hedge against inflation
and yet promise the customers with the funds that might need to recover from a dreaded.
• Having the right products is the first step, but equally importance to ensure that the customers
can access them easily and quickly. To this end, ICICI prudential has an advisor base across
the, length and breadth of the country, and also partners with leading banks, corporate agents
and brokers to distribute their products.
• Robust risk management and underwriting practices from the core of the business. With clear
guidelines in place, they ensure equitable costing of risks and thereby ensure a smooth and
hassle-free claims process.
• Entrusted with helping customers meet their long-term goals, they adopt an investment
philosophy that aims to achieve risk adjusted returns over the long-term.
• Last but definitely not the least, the 15,000 plus strong team is given the opportunity to learn
and grow, every day in a multitude of ways. It is believed that keeps them engaged and
enthusiastic, so that they can deliver on the promise to cover customer, at every step in life.

MAX NEW YORK LIFE INSURANCE COMPANY

Max New York life insurance company Ltd. Is a joint venture between New York Life, a
fortune 100 company and Max India limited, one of India’s leading multi-business corporations.
The company has positioned itself on the quality plat form. In line with its vision to be the most
admired life insurance company in India, it has developed a strong corporate governance model
based on the core values of excellence, honesty, knowledge, caring, integrity and team work. The
strategy is to establish itself as a trusted life insurance specialist through a quality approach to
business. In line with its values of financial responsibility, Max New York Life insurance has
adopted prudent financial practices to ensure safety of policy holder’s funds. The company’s
paid up capital is Rs.657 crore, which is more than the norm laid down by IRDA. Max New
York life has identified individual agents as its primary channel of distribution. The company

26
places a lot of emphasis on its selection process, which comprises four stages- screening,
psychometric test, career seminar and final interview. The agent advisors are trained in-house to
ensure optimal control on quality of training. Max New York Life invests significantly in its
training program and each agent is trained for 152 hours as opposed to the mandatory 100 hours
stipulated by the IRDA before beginning to sell in the market place. Training is a continuous
process for agents at Max New York life insurance development of skills and knowledge through
a structured program spread over 500 hours in two years. This focus on continuous quality
training has resulted in the company having amongst the highest agent pass rate in IRDA
examinations and the agents have the highest productivity among private life insurers. Having set
a best in class agency distribution model in place, the company is spearheading a major thrust
into additional distribution channels to further grow its business. The company is using a five-
pronged strategy to pursue alternative channels of distribution. These include the franchisee
model, rural business, direct sales force involving group insurance and telemarketing
opportunities bank assurance and corporate alliances. Max New York Life insurance offers a
suite of flexible products. It now has 26 life insurance products and 8 riders that can be
customized to over 400 combinations enabling customers to choose the policy that fits their
need.

HDFC STANDARD LIFE INSURANCE

HDFC Standard Life insurance Company Ltd. Is one of India’s leading private life insurance
companies, which offers a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Ltd.) India’s leading
providers of financial services in the United Kingdom. Both the promoters are well known for
their ethical dealings and financial strength and are thus committed to being a long-term player
in the life insurance industry –all important factors to consider when choosing your insurance.
HDFC is India’s leading housing finance institution and has helped build more than 23, 00,000
houses since its incorporation in 1977.In the financial year 2003-04 its assets under management
crossed Rs.36,000cr.As march 31, 2004 outstanding deposits stood at Rs. 7,480 crores. The
depositor base now stands at around 1 million depositors. Rated ‘AAA’ by CRSIL and ICRA for

27
the 10th consecutive year. The Standard Life group has been looking after the financial needs of
customers for over 180 years. It currently has a customer base of around 7 million people who
rely on the company for their insurance, pension, investment, banking and health-care needs. Its
investment manager currently administers 125 billion assets. It is a leading pension provider in
UK, and is rated by standard & poor’s as ‘strong’ with a rating of A+ and as ‘good’ with a rating
of A1 by moody’s Standard Life was awarded the Best pension provider’ in 2004, 2005 and
2006 at the money marketing Awards, and it was voted a 5 star life and pensions providers at the
Financial Advisor service Awards for the last 10 years running. The ‘5’star accolade has also
been awarded to standard Life investments for the last 10 years, and to standard Life bank since
its inception in 1998.standard Life bank was awarded the ‘best flexible mortgage lender ‘at the
mortgage magazine Awards In 2006.

28
 CHAPTER 2
RESEARCH METHODOLOGY

2.1 STATEMENT OF PROBLEM

In a service industry like life insurance companies, the quality of Customer Relationship
Management strategies hold primary significance, particularly in the context of sustained
business growth. Unlike the other industries engaged in the production of tangible goods, life
insurance companies are unique in the sense that they produce and deliver the services and
Customer Relationship Management instantaneously at the service delivery point at the branches.
Customer Relationship Management in the life insurance companies is a continuing issue. In
deregulated environmental customers expectation keeps rising, as they look for more convenient
and flexible option available to them at competitive rates from many private players operating in
the field.
Therefore, an attempt has been made by the researcher to examine, evaluate and compare the
various types of products, customer services and customer relationship management strategies
provided by the public and private sector life insurance companies at the branch level from the
point of view of customer(policyholders) agents and employees in Virudhunagar district and also
hence, an attempt has been made to study the Customer Relationship Management in life
insurance industry in Virudhunagar district.

2.2 OBJECTIVES

➢ To understand the role of CRM in insurance sector with respective to HDFC life insurance.

➢ To study different CRM strategy implemented by HDFC for acquiring and maintaining
customers.

➢ To understand needs and wants of customer towards insurance policies.

29
2.3 HYPOTHESIS
In order to achieve the objectives of the study, the following hypothesis are framed:

➢ Ho: There is no significant difference in the total commission to total premium ratio of the
public and private sector life insurance companies.
➢ Ho: There is no significant difference in the total commission to total operating expense ratio
of the public and private sector life insurance companies.
➢ Ho: There is no significant difference in the Actuarial Efficiency ratio of the public and
private sector life insurance companies.
➢ Ho: There is no significant difference in the current ratio of the public and private sector life
insurance companies.
➢ Ho: There is no significant difference in the Proprietary ratio of the public and private sector
life insurance companies.
➢ Ho: There is no significant difference in the total investment to total liability ratio of the
public and private sector life insurance companies.
➢ Ho: The cost efficiency score of Life Insurance Companies in India is equal

2.4 SCOPE OF THE STUDY

The study gives the information about the customer needs and customer satisfaction levels
towards HDFC Bank services. The study was undertaken in the thane city only. The study was
limited to 100 customers of HDFC Bank in thane. It is confined to the collection, analysis and
interpretation of the Customers satisfaction levels and opinions on the various services of HDFC
Bank and the performance of the organization.

2.5 LIMITATIONS OF THE STUDY

➢ The information collected and opinions are of customers as to what they feel. Thus the
accuracy and information collected depends upon the perception of each respondent and
circumstances involved.

30
➢ The study has been conducted by including 100 customers. Though the sample is highly
representative of the population, it does not cover the entire market of customers having
insurance policies.

➢ Analysis could not draw for the entire questionnaire, only specific questions have been
analyzed and interpreted.

➢ Due to time constraint more information cannot be collected.

The methodology followed for the fulfillment of the above-mentioned goals is as follows:

2.6 SOURCE OF DATA

There are basically two sources of data:

A) Primary data.

B) Secondary data.

PRIMARY DATA: It is not recorded data. It is collected personally interviewing the

respondents through experience, observation and survey methods. It is collected specially for a
particular purpose with certain objectives in mind.

SECONDARY DATA: It is already collected and recorded data by some other person for some
purpose and is available for present study.

Example: internet, textbooks, organizations annual report etc.

SAMPLE SURVEY

At the period of research work, it is necessary to collect a certain data from the people but it is
not possible to survey each every person who can give information on the issue.

SAMPLE CHARACTERISTICS:

Size Sample : 100 clients.

Nature of sample: Highly representatives of the population.

31
 CHAPTER 3
LITERATURE REVIEW

Peter F. Drucker the great management guru defined the modern concept of business as “To create
customers”. This is perhaps the shortest definition of modern business or the changing concept of
business but definitely not the simplest of definitions, for the phrase, to create customers, though
sounds simple but has great implications. Here the customer is not the buyer who is one of the two
parties in the sales transaction as a ‘One-off’ case but a person whose loyalty towards the
organization has to be ensured. Dr.P.Sheela and G.Arti stressed that Insurance Companies have to
understand the changing needs of customers. They have to develop viable and cost- effective
distribution channels, build consumer awareness and confidence which will together contribute in
further strengthening the insurance business in India. Insurance Organizations being service
oriented need more customer responsiveness. In addition, it should stand as a model in CRM
activities. It is observed that more acquiring of technology in the name of serving effectively is not
the answer of CRM. As a condition precedent to coverage under this policy, the insured shall
report such claim to report such claim in writing to the insurance company as soon as reasonably
practicable, and that prior to the inception date of policy, the insured did not know or did not have
reasonable foresight that such wrongful act might give rise to a claim. In today’s credit happy
society, an insurance cover which mitigates the risk of repaying credit if death or disability
happens to the debtors is very relevant. The study is emphasizing on creditor insurance by looking
at the feature of the products, benefits, the problem faced and the relevance of creditor insurance
for the Indian insurance market.
In order to analyze the overall opinion of the policyholders towards the customer service and
CRM strategy provided by the life insurance industry with the help of mean score, the public
sector life insurance branch is easy to approach, agents meet policyholders periodically, the
branch has maintain the time forms for all services, the branch has maintained complaint box,
working hour is convenient to the customers, suggestions/complaints are considered without
delay, these services are to be concentrated more to improve the customer service and CRM
strategy provided by the public sector life insurance company.
In the case of private sector life insurance industry, overall opinion of the policyholders towards
the customer service and CRM strategy provided by the life insurance industry, with the help of
32
mean score, the private sector life insurance companies policyholders feel that the seating
arrangement/parking facilities, life insurance branch easy to approach, agent meet policyholders
periodically, the branch follows time norms, the branch maintain complaint box, working hours
is convenient to the policyholders, suggestions are considered without delay, these services are to
be concentrated more to improve the customer service and CRM strategy provided by the private
sector life insurance companies.

The comparison between the public and private sector life insurance companies about the
customer service and CRM strategy provided by the life insurance industry with the help of
mean score, the private sector life insurance companies should concentrate all the services and
CRM strategy because all the services and CRM strategy which have the mean value who is
below the overall mean.

Over all opinion of the Agents towards the CRM in life insurance industry in Virudhunagar
District. The results of Sign Test indicates that according to the overall opinion of the agents
towards CRM in life insurance industry, there is no significant difference between the overall
mean and the individual mean of the statements with regard to CRM strategy in public sector life
insurance company and there is a significant difference between the overall mean and the
individual mean of the statements with regard to CRM strategy in private sector life insurance
companies.

Overall Opinion of the Employees towards the CRM Strategy in Life Insurance Industry – Co-
efficient of Variation. The overall opinion of the employees about CRM in the public sector life
insurance company differ from that of overall opinion of the employees about the CRM in the
private sector life insurance companies regarding certain opinion. According to the level of mean
values, the public sector life insurance company employees seem to score good opinion such as
“Training given to the employees is useful to promote the CRM skill” and followed by “CRM
strategy of life insurance industry is useful to the employees” and the least score gained by
“CRM policies are maintained by the agents in proper manner”. In the case of private sector life
insurance companies’ good score is found in regarding the “Providing guidance regarding the
payment of premium” and followed by “Creating awareness regarding new policies is useful to
the policyholders” and the least score was obtained by “The settlement of grievances of the life
insurance industry”
33
According to the level of standard deviation, the opinion of the public sector life insurance
company employees about the overall opinion about CRM with regard to “CRM strategy of the
life insurance industry is useful to the employees” and the opinion of the private sector life
insurance companies employees about the overall opinion about CRM with regard to “providing
guidance regarding payment of premium”. Since co-variance is the highest (26.26) with regard to
CRM policies are maintained by your agents in proper manner in public sector life insurance
companies and the co-variance is the highest (13.57) with regard to Giving legal advice with
regard to policy related services is useful to the policyholders in public sector life insurance
companies.

34
 CHAPTER 4
DATA ANALYSIS, INTERPRETATION AND PRESENTATIONS

1. Do you have any insurance policy?

120

100

80

60

40

20

0
YES NO

Interpretation:

Out of 100 people who participated in survey it is found 99% of people are having insurance
policy & 1% are not having insurance policy.

35
 2. Which insurance policy do you have?

60

50

40

30

20

10

0
LIFE GENERAL OTHER

Interpretation:

Out of 100 people who participated in survey it is found that 46% of people are having life
insurance policy, 51% of people are having general insurance policy & 3% are having other
policy that is fire, marine, etc.

36
 3. Factor that derives you for the purchase of insurance

60

50

40

30

20

10

0
SAFETY COMFORT BENEFITS BRAND

Interpretation:

Out of 100 people who participated in survey it is found that 56 are giving more important to
safety, 34 are giving more important to comfort, 6 are giving more important to benefit & 4 are
giving more important to brand. The majority of customers are giving more important to safety
& comfort.

37
 4. Which of the life insurance policy do you prefer for your family?

70

60

50

40

30

20

10

0
TRADITIONAL PLAN MONEY BACK PLAN UNIT LINK PLAN MARKET INVESTMENT
PLAN

Interpretation:

Out of 100 people who participated in survey it is found that 59 are showing interest for
traditional plan, 31 for money back plan, 6 for unit linked plan and 4 are interested for market
investment plan. So majority of customer will go for the traditional plan.

38
 5. Which mode of payment do you find more suited in your conveniences?

70

60

50

40

30

20

10

0
MONTHLY QUARTERLY HALF YEARLY YEARLY

Interpretation:

Out of 100 people who participated in survey it is found that 63 are willing to pay the amount
monthly, 21 are willing to pay their amount in quarterly, 9 are willing to pay their amount half
yearly and 7 are willing to pay their amount yearly. So majority of customer are willing to pay
the amount monthly.

39
 6. Do you suggest the insurance to your friends?

80

70

60

50

40

30

20

10

0
YES NO

Interpretation:

Out of 100 people who participated in survey it is found that 71% of people are willing to
suggest their friend about insurance policy, Out of 100 people who participated in survey it is
found that 29 % of people are not willing to suggest their friend about insurance policy.

40
 7. which of the following media in your view is the best seated for the insurance industry?

60

50

40

30

20

10

0
NEWSPAPER TV

Interpretation:

Out of 100 people who participated in survey it is found that 52% of people got the knowledge
about the insurance policy by newspaper, & 48% of people got the knowledge about the
insurance policy by TV.

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 CHAPTER 5
5.1 FINDINGS

Finding 1
Out of 100 people who participated in survey it is found 99% of people are having insurance
policy & 1% are not having insurance policy.

Finding 2

Out of 100 people who participated in survey it is found that 46% of people are having life
insurance policy, 51% of people are having general insurance policy & 3% are having other
policy that is fire, marine, etc.

Finding 3
Out of 100 people who participated in survey it is found that 56 are giving more important to
safety, 34 are giving more important to comfort, 6 are giving more important to benefit & 4 are
giving more important to brand. The majority of customers are giving more important to safety
& comfort.

Finding 4
Out of 100 people who participated in survey it is found that 59 are showing interest for
traditional plan, 31 for money back plan, 6 for unit linked plan and 4 are interested for market
investment plan. So majority of customer will go for the traditional plan.

Finding 5
Out of 100 people who participated in survey it is found that 63 are willing to pay the amount
monthly, 21 are willing to pay their amount in quarterly, 9 are willing to pay their amount half
yearly and 7 are willing to pay their amount yearly. So majority of customer are willing to pay
the amount monthly.

42
Finding 6
Out of 100 people who participated in survey it is found that 71% of people are willing to
suggest their friend about insurance policy, Out of 100 people who participated in survey it is
found that 29 % of people are not willing to suggest their friend about insurance policy.

Finding 7
Out of 100 people who participated in survey it is found that 52% of people got the knowledge
about the insurance policy by newspaper, & 48% of people got the knowledge about the
insurance policy by TV.

5.2 SUGGESTIONS

• Every life insurance company branch should form a proper customer grievance cell facility.
The cell should work out an effective strategy to clear the complaints of the agents and
policyholders. Main work of this cell would be customer feedback, customer satisfaction
determination and maintain good customer relationship management strategy.

• The life insurance companies should provide all physical facilities to the customers in every
branch. The life insurance companies should arrange the facilities to the customers like toilet,
good drinking water, sitting facilities and so on.

• The life insurance companies have to initiate steps to educate the customers about new
services/new products (policy renewal in online, new policy arrival in online, premium due
date in online, e-CRM and the like).

• Now-a-days, the corporate sector is promoting basic educational and health facilities as part
of their social responsibility programs. The software companies are an example in this
respect. Therefore, it is suggested that the life insurance companies should also take up such
responsibility besides its profit-making activities, as it is a major service sector in the society.

• The Life Insurance companies must adopt Customer oriented Plan coverage through
advisors , Easy settlement through wide area network by Agents/Officers , arrangement of

43
 more number of workshops/seminars for customer orientation, their employees must be
instructed to maintain a good linkage with the present customers , Staff should provide
prompt service to their customers staff should behave properly and take more attention to
customer grievances and the modes of settlements are faster and easier with providing best
quality products for its customers through the process of reengineering to sustain in the
competitive market.

5.3 CONCLUSIONS

CRM practices of life insurance companies have seen a dramatic change over the past few years.
Most of the insurance companies have very transparent and effective CRM models. However it
is evident that the private companies have been the pioneers in initiating the CRM strategies
because of service quality perceptions and increased competition in the industry. Customer
services in private companies far outweigh the facilities offered in the public sector LIC. It was
found that LIC has reinvented its strategies to stay abreast with IRDA regulations and provide
varied facilities to its customers. Majority of the respondents were of the opinion that the
services provided by private companies have redefined the whole concept of insurance. When
LIC was the only insurance company customers were at a disadvantage due to its monopoly
position and seller oriented selling of life insurance products. However life insurance products
are now need based and customer centric. Customers have shown a clear preference for private
life insurance companies due to their persistent efforts to build new clients and retain existing
clients. Private companies also made it relatively easy for clients to revalidate lapsed policies and
are very effective in quick claim settlements. There is definitely a shift of customers’ preference
from public sector LIC to private life insurance companies. This would be even more evident if
private companies continue to reinvent themselves, develop customer need based products,
eliminate mis-selling and concentrate on customer satisfaction and customer relationship
building as its main prerogative.

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 CHAPTER 6

BIBLIOGRAPHY

• http://www.crmnext.com/industries/insurance/
• https://www.softwareadvice.com/crm/insurance-crm-comparison/
• https://www.elinext.com/crm/insurance/
• https://www.hdfcbank.com/
• http://www.crmnext.com/customers/hdfc_bank/

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 CHAPTER 7
ANNEXURE

Name: Age:
Sex : Mobile no:
1. Do you have any insurance policy?
o Yes
o No

2. Which insurance policy do you have?

o Life
o General
o Other

3. Please tick the factor that derives you for the purchase of insurance?
o Safety
o Comfort
o Benefits
o Brand
4. Which of the life insurance policy do you prefer for your family?
o Traditional plan
o Money back plan
o Unit link plan
o Market investment plan
5. Which mode of payment do you find more suited in your conveniences?
o monthly
o Quarterly
o Half yearly
o Yearly
6. Do you suggest the insurance to your friends?
o Yes
o No
7. which of the following media in your view is the best seated for the insurance industry?
o Newspaper
o TV

46
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