The project has been undertaken to know about different types of risk that can covered by insurance policies and how to analyse and mange those risks as there are various types of risk that a person can suffers in his life term. The project talks about what are the various things that customer should consider before buying an insurance policy and various steps that need to consider before buying it.

1. 1
A PROJECT REPORT ON RISK ANALYSIS AND RISK
MANAGEMENT IN INVESTING ININSURANCE POLICES
Research Report submitted to Entrepreneurship Development Institute
of India in partial fulfilment of the requirements for the award of
Post Graduate Diploma in Business Management
Submitted by
ABHISHEK RAJ

2. 2
EXECUTIVE SUMMARY
All assets in this world have some economic value and some amount of risk
carrying with them. All assets have some expected life also and if it’s get lost
or destroyed there are many chances that owner will suffer some amount of
loss which can be financial or in any other form. So to protect the owner from
suffering a huge amount of loss we can assure these assets.
Insurance is a contract between the insurer and insured in return for a
premium, the insurance company promises to pay a specified amount to the
insured on the happening of a specific event.
India economy is growing at the rate of 5.4% with a significant rise in working
population and has a large potential for the development in the field of
insurance sector. A large amount of population in India is still uninsured. It is
also estimated that the sector will grow at a rate of 15-20% in next 10 years.
The project has been undertaken to know about different types of risk that can
covered by insurance policies and how to analyse and mange those risks as
there are various types of risk that a person can suffers in his life term.
The project talks about what are the various things that customer should
consider before buying an insurance policy and various steps that need to
consider before buying it.

3. 3
Introduction
India is the second largest country in the world in the respect of population.
The GDP growth of India was 5.4% in year 2013.the insurance sector is
expected to grow at a very high rate in next 10-154 years and its contribution
in GDP is going to rise in ahuge manner as a large amount of population is
still uninsured especially in urban areas.
What is Insurance?
Insurance is a contract between the insurance company (insurer) and the
policyholder (insured). In return for a consideration (the premium), the
insurance company promises to pay a specified amount to the insured on the
happening of a specific event. We all need insurance because it not only
transfer the risk but also have other benefits like tax saving.
The first Indian insurance company was formed in the year 1818 which was
oriental life insurance company and the Indian life assurance companies act
1912 was the first statutory measure to regulate life business which was
finally amended in the year 1938. In the year 1999 Insurance Regulatory and
Development Authority (IRDA) was constituted as an autonomous body to
regulate all the insurance companies in India which came in power in the year
April 2000. Under the current regulation a foreign companies cannot have
more than 26% of stake in joint venture.
Benefits of insurance
Investment option It is good investment option because insurer will not get the
insurance cover but also the in some amount of return.
Tax benefits We can also save tax up to RS 100000.
Loan on insurance Customer can also take loan against insurance policies.
Habits of saving It also develops the habits of saving certain amount of money
which can be helpful in future.

4. 4
Employment
generation
An increase in the penetration of insurance is going to generate
more employment as insurance policies will require more
advisors.
Social benefits It is going to help in developing the infrastructure of the counrty.
Table 1.1
Types of life insurance polices
The different types of life insurance policies are following:
 Whole life insurance plans
 Endowment insurance plans
 Term Insurance plans
 Pension and savings plans
 Unit linked insurance plans
Risk
A person carries various types of risk in his life term and it can be classified in
many ways. But first we need to understand the meaning of risk. It is difficult
to give the exact definition of risk but it can be defined in the respect of
insurance sector as the possibilities of unfavourable event happing like death
or physical damage.
The various types of the risks are following:
 Market risk
 Interest rate risk
 Inflation risk
 Political risk
 Financial risk
 Pure risk
 Particular risk
Out of all these risk the insurable risk are following:
 Financial risk: The outcome of risk which can be measured in financial
term like loss of life etc.

5. 5
 Pure risk: Pure risks are those risks where there is no possibility of
making a profit.
 Particular risk:
These are the three risks which can be insured by having insurance policies
and the insured persons can transfer his risk to insurer.
Risk analysis and Risk management:
As there are different types of in insurance police in the market it becomes
difficult for a customer to understand the actual value of its life i.e. Human Life
Value. Before buying an insurance police a person should to knowing the
purpose for which he is buying the insurance and how to analyse its value.
It might be confusing for many that for what value they should buy an
insurance policies i.e. how they are worth for.
There are two methods to calculate the human life value
 Income replacement method
 Simple method
Income replacement method:This method takes into consideration the
future income earning potential of a person during the remaining years of their
working life. It is a two-step method:
Step 1: Calculate the income of person in the future working years.
Step 2: this is its HLV, now take inflation in account and calculate how much
should be enough for his family in case of his death.
Simple method:In this method we consider the present interest rate in a fixed
deposit in a bank and then we calculate that how much amount person should
get insured.
But we always need to keep in mind that HLV in not a onetime calculation and
it should get revised from time to time.
Now as there are many insurance policies in the market it becomes difficult to
decide which will be suited best for you. So it is always best for anyone to

6. 6
take the polices which is best suited for them. Anyone can easily find out
which policies best suited for them by following these three steps:
Step 1: Identify your needs: you always need to understand you goals and
need after considers these factors:
 marital status
 future financial goals
 number and age of dependants on you
 employment status
 income – which includes salary, business income and income from
other sources and investments
 existing protection, savings and retirement provision
Step 2: Quantifying needs: Then you need quantify your needs and
then calculate suitable amounts that you need to save in future the
future.
Step 3: Priorities your needs: then you need to priorities you needs
based upon your requirements. It is important because you have only a
specific amount of money to invest and that money should be invested
in a best product mix.
Step 4: Compare: it is always best for you to compare the policies
which you are going to take with all the other similar polices in the
market.
So this how any individual can decide on what polices is best suited for
him and whether he should consider to by that specific insurance
policies or not.
Industry analysis:
The insurance is established a way long before and it is growing well
since then. The first insurance company was formed United States in
the year 1782 in South California. Since then various insurance
company are founded and today hundreds on insurance companies
are operating well.
Top five companies in world in 2013

7. 7
Japan post Insurance
AXA
Allianz
Met life
Prudential Financial
Insurance sector in India
1818 saw the advent of life insurance business in India with the establishment
of the Oriental Life Insurance Company in Calcutta but in 1968, the Insurance
Act was amended to regulate investments and set minimum solvency
margins. But actually grow in the insurance sector in India begun from the
year 2000 with the formation on IRDA. IRDA is a regulatory body to manage
working of all the insurance company in India.Foreign companies were
allowed ownership of up to 26% and invest in insurance policies in India. The
insurance sector is a colossal one and is growing at a speedy rate of 15-20%.
Together with banking services, insurance services add about 7% to the
country’s GDP. Life insurance Company has acquired in India.With the entry
of new private players insurance sector has seen a huge growth in last five
years and it is expected to grow in future.
The various data which is represents the market share of top five insurance
companies in India

8. 8
Figure 1.1
Most of the Indian population are without life insurance cover and still a huge
amount of growth is possible in Indian environment. At presentpeople do not
prefer to invest their saving in insurance policies but it is expected to change
in future.
6.25%
6.02%
3.32%
2.14%
68.70%
Sales
ICICI Prudential
SBI Life
HDFC Standard
Bajaj Allianz
Lic

9. 9
Company profile
The AXA Group
AXA is a world leader in financial protection and wealth management, with
major operations in Western Europe, North America and the Asia/ Pacific
area. AXA services 102 million customers throughout the world. In total the
AXA group has approximately 160,000 employees and distributors, working in
around 50 countries.
The AXA group reported total revenue for the first half of 2013 of 37.8 billion.
AXA group has a strong, long standing history. The group can trace its roots
right back to the 18th century. After a successions of mergers, acquisitions
and name changes involving some of the leading insurance companies in the
UK and around the world, the name AXA was first introduced in 1985.
Today, 102 million clients in the world trust AXA and the AXA name. In 2003,
to provide a clearer vision of the transformation of its core business from
traditional insurance to the broader concept of financial protection, the AXA
group added the words financial protection as a base line to its logo.
BhartiEnterprises
Bharti Enterprises is a pioneer in telecom sector and the group is widening its
horizons by entering new business areas such as insurance and retail. Bharti
Enterprises has created a vantage position for itself in the global
telecommunications sector. BhartiAirtel Limited occupies good status in
mobile telephony in India while its brand 'Beetel' is the largest manufacturer
and exporter of world class telecom terminals.
Founder of Bharti Group is Sunil Mittal. In 1983, Sunil Mittal entered into an
agreement with Germany's Siemens to manufacture the company's push-
button telephone models for the Indian market. In 1986, Sunil Bharti Mittal
incorporated Bharti Telecom Limited (BTL) and his company became the first
in India to offer push-button telephones, establishing the basis of Bharti
Enterprises. This first-mover advantage allowed Sunil Mittal to expand his
manufacturing capacity elsewhere in the telecommunications market. By the
early 1990s, Sunil Mittal had also launched the country's first fax machines

10. 10
and its first cordless telephones. In 1992, Sunil Mittal won a bid to build a
cellular phone network in Delhi. In 1995, Sunil Mittal incorporated the cellular
operations as Bharti Tele-Ventures and launched service in Delhi. In 1996,
cellular service was extended to Himachal Pradesh. In 1999, Bharti
Enterprises acquired control of JT Holdings, and extended cellular operations
to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Skycell
Communications, in Chennai. In 2001, the company acquired control of Spice
Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was
listed on Mumbai Stock Exchange and National Stock Exchange of India. In
2003, the cellular phone operations were rebranded under the single Airtel
brand.
Bharti AXA life insurance Ltd.
Bharti AXA Life Insurance is a joint venture between Bharti, India's leading
private telecom company and AXA, world leader in financial protection and
wealth management. Their philosophy is to build around the promise of
making people "Life Confident"...
Bharti Enterprises and AXA Asia Pacific Holdings Limited (AXA) signed an
agreement to establish a joint venture named Bharti AXA Life Insurance
Company Limited to carry on life insurance business in India.
August 26, 2005, New Delhi : Bharti Enterprises and AXA Asia Pacific
Holdings Limited (AXA) signed an agreement to establish a joint venture
named Bharti AXA Life Insurance Company Limited to carry on life insurance
business in India.
Under the agreement AXA has a 26% equity interest in the joint venture, while
Bharti holds the balance. AXA, a global leader in insurance business, enabled
the company to have access to AXA’s global life insurance and asset
management expertise. Bharti brought its strong local market knowledge,
reputation and India-wide retail presence.
“The insurance sector in India provides a mega opportunity for private players
like BhartiAxa Despite the strong growth witnessed by the sector in the recent

11. 11
years, nearly 80% of the Indian population is without life insurance coverage.
As one of India’s leading business conglomerates having an established
brand and a significant presence in the retail space, Bharti has inherent
advantages in being a part of this growth story. In AXA, Bharti has a global
leader as its partner, one that is known for its expertise and best practice
across the world. More importantly, this new venture also fits into our strategy
of taking on projects that make a difference to the society at large.
This joint venture is an opportunity for AXA to enter the Indian life insurance
market, one of the most attractive emerging insurance markets. India is a fast
growing economy and a huge market with more than 1.1 billion people. This
coupled with a large middle class and increasing income levels will drive
growth in the insurance market. Bharti is a well-established and financially
strong group whose capabilities and network will be of significant value to the
joint venture. The joint venture invested in the region of Rs. 500 crores (115
Million USD) over the first three to four years of operations, reflecting both
partners’ commitment to quickly establish a strong foothold in the Indian
market. The joint venture commenced business in the first half of 2006,
subject to IRDA, FIPB and other statutory approvals.
Company Products
BHARTI AXA offers a range of innovative, customer-centric products that
meet the needs of customers at every life stage. Its 20 products can be
enhanced with up to 6 riders, to create a customized solution for each
policyholder. Their products are of different categories like child plan, term
plans, savings & investment plan and health plan.
Child Plan: Child Plan is a plan specifically designed to take care of financial
needs of your child. Child plan provides with necessary funds that will take
care of child’s education, marriage etc.
Term Plan: A risk plan which provides comprehensive cover for your family in
the unfortunate event of untimely demise. A term life insurance plan provides
good cover at relatively nominal cost and has no survival benefits.

12. 12
Investment Plan: Popularly known as ULIP, an investment plan invests part
of your savings in equity or debt market as per your preference..
Group plans: With Bharti AXA Life insurance products provide financial
security and protection to your loved ones. two group plans which are Bharti
AXA Life Shield and Bharti AXA Life Sanjeevani.
Health Plan: Slightly different from health insurance, health plan provides
cover for surgery costs, critical illness. A lump sum is paid irrespective of
actual hospital bill. Easy Health is Bharti AXA’s health plan.
SWOT analysis of Bharti AXA
Strengths
• Use of brand affinity of Airtel to promote insurance sales.
• Bharti brought its strong local market knowledge, reputation and India.
• Associated with AXA world leader in financial protection and wealth
management, ranked No 13 in the Fortune 500 list of global companies and
has enabled the company to have access to AXA’s global life insurance and
asset management expertise.
• Strong partner Bharti - provides access to customer base of more than
20 million
Weakness
• Late entrant in the insurance sector
• Thin distribution network all over the nation
• Very less number of product offering in comparison to its competitors
• Lack of confidence among the customers as parent company does not
have a financial background.

13. 13
Opportunities
• Strong growth of unit linked market at the mass affluent end.
• Potentially with 20% insurance cross sale only to new telecom
customers, this network can yield 48 lakh policies per year with sum assured
of nearly Rs 58000 cores.
Threats
• Many more companies are lining up to enter into Indian Insurance
Industry.
• Consumer’s preference is still more towards public sector insurance
companies.

14. 14
Research methodology
Statement of the problem:
.As the insurance sector expected to grow around 15-20% in next 10 years it
is important for a customer to understand the basis steps to buy an insurance
policy. It is also going to help companies to understand that how can they
convince there customers to buy an insurance policies.The project has been
undertaken with the aim to analyse insurance firm and how to calculate your
need analysis.
Objective of the study:
 To make people aware about thesteps they should consider before
buying insurance policies.
 To know about various analytical tools that can value an insurance
policy.
 To find whether need analysis is compulsory before buying an
insurance police.
SCOPE OF THE STUDY
. The scope of the study is limited to only insurance & no other financial
instruments were considered .The study will help us to know the perception of
customers about insurance policies. The various risks involves in buying an
insurance policy and how to tackle it. It will also help us to get a basic
knowledge about need analysis calculation and its requirement.
Methodology:
Primary data:
Primary data is the one which is collected specifically for the purpose of the
project, and can be obtained from various people working in the organization.
For this study the primary data was collected from following sources.
 Questionnaires
 Discussion with manager.

15. 15
Secondary data:
It refers to the statistical material which is not originated by the investigator
himself but obtained from someone else's records, or when Primary data is
utilized for any other purpose at some subsequent enquiry it is termed as
Secondary data. However, it plays a significant role in the project. For this
study the secondary data was collected from the following sources.
 Books related to risk management and insurance
 Websites related to risk management and insurance
.Limitations
The study is limited due to constraint of time and information available
Possibility of error in data collection because many of respondent may
have not given actual answers of questionnaire.
This project only talks about three risk analysis tools there are others
tools also which can be used.
The study had done only on 100 respondents.

16. 16
Data analysis
Risk and Need analysis
As a customer you should always know your value in the market so that you
can take a police according to your exact value. Three various approaches
are used to determine the amount of life insurance to own:
1. Human life value approach
2. Needs approach
3. Capital retention approach
Human life value approach
HLV can be defined as the present value of the family’s share of the
deceased breadwinner’s future earnings. It can be calculated by the following
steps:
1. Estimate the individual’s average annual earnings over his or her
productive lifetime.
2. Deduct federal and state income taxes, social security taxes, life and
health insurance premiums and cost of self maintenance.
3. Determine the number of years from person’s present age to the
contemplated age of retirement.
4. Using a reasonable discount rate, determine the present value of the
family’s share of earnings for the period in the previous step.
Examples: Assume that Raj, age 25 is married and has two children. He
earns Rs25000 annually and plans to retire at age of 65. Of this amount
Rs10000 is use for federal and state taxes, life and health insurance and his
personal needs. The remaining 15000 is used to support his family. What
should be value of insurance if discount rate is 6%?

17. 17
Solution: Using the give discount rate the present value of Rs1 payable
annual for 40 years is Rs15.05
So Raj has a human life value of (15000*15.05)= Rs225750
Needs approach
The second method for estimating the amount of life insurance to own is the
needs approach. The various family needs that must be met if the family head
will die are analysed. The most important family needs are following:-
Estate clearance fun
Income during the readjustment period
Income during the dependency period
Life income to the surviving purpose
Special needs
Retirement needs
By the help of need analysis chart we can know the amount of
insurance we need in the following ways-
Cash needs
Funeral cost 10000
Uninsured medical bills 3000
Instalment debts 12000
Probate cost 3000
Total estate
clearance fund
28000
Income needs
Readjustment period 14400
Dependency period 108000
Total income needs 122,400
Special needs
Mortgage redemption
fund
Emergency Fund

18. 18
College education fund
Total special need 235000
Total need 385400
Checking account and
savings
10000
Mutual fund and
Securities
25,000
IRAS PLAN 4200
Employer saving plan 4500
Private pension death
plan
10000
Current life insurance 50000
Total assets 103400
Additional life
insurance needed
Total needs 385400
Less total assets 103700
Additional life
insurance needed
281700
The first part of worksheet shows the amount needed to meet various cash
needs, income needs and special needs. The second part analyse your
present financial assets for meeting these needs and the final part determine
the amount of life insurance needed.

19. 19
Capital retention approach
This method preserves the capital needed to provide income to the family.
This methods works in following step:
Prepare a personal balance sheet
Determine the amount of income producing capital
Determine the amount of additional capital needed
Preparing a personal balance sheet:
The first step is to prepare a personal balance sheet that lists all assets and
liabilities .Example
Assets
House 125000
Automobiles 15000
Personal and household property 45000
Securities and investment 28000
Checking account 2000
Individual and group life insurance 200000
Private pension death plan 20000
Total 435000
Liabilities
Mortgage 100000
Auto loan 10000
Charge a/c and other bills 5000
Total 115000

20. 20
Determining the Amount of income-Producing Capital
The next step is to determine the amount of income producing assets that can
provide income to the family. This step is performed as follows:
Total assets 435000
Less:
Mortgage payoff 100000
Auto loan and credit
Credit card 15000
Final expenses 10000
Emergency fund 10000
Educational fund 60000
Non income producing capital 185000
Total deduction 380000
Capital income now available 550000
Determining the amount of capital needed
The final step involves a comparison of the income objective with other
sources of income such as Social security survivor benefits.Example
Income objective for family 30000
Less:
Capital now available for income
(55000*6%)
-33000
Social security survivor benefits -12000
Income shortage 147000
Total new capital
Required(14700/00.6)
245000

21. 21
So these three analysis tools can be used by the customer to determine the
exact value of a life insurance required customer to support their family. It will
also help them to decide on which type of polices they should invest
according to their requirements.It will also help in determining amount of risk
in that policy.

22. 22
Percentage analysis
QUESTION NO. 1)
Businessman 54
Professional 35
Students 6
Housewife 5
Table no. 4.1
Figure 4.1
Interpretation:
Out of 100 respondents, maximum respondents belong to business
class,followed by professional,then studentsand the minimum respondents
are from housewife.
5435
6
5
Occupation of respondent
Businessman
Professional
Students
Housewife

23. 23
QUESTION NO. 2)
Having insurance already
S.NO. Particular Response
A Yes 92
B No 8
Table no. 4.2
Figure 4.2
Interpretation:
From above chart,we can infer that 92% respondents already have insurance
policies, whereas 8 % does not have insurance policies.
92
8
Insurance Already
Yes
No

24. 24
QUESTION NO. 3)
Awareness of life insurance companies
Option Particular Response
a Print media 20
b Electronic media 25
c Agents 50
d Other 5
Table no. 4.3
Figure 4.3
Interpretation:
From this chart we can say that majority of respondents are aware of
insurance policies through agents, followed by electronic media, then print
media.
20
2550
5
Awareness of life insurance
companies
Print media
Electronic media
Agents
Other

25. 25
QUESTION NO. 4)
Main purpose to buy insurance policies
Option Particular Response
A Tax Saving 24
B Savings 15
C Protection 49
D Pension 10
E Investment 2
Table no. 4.4
Figure 4.4
INTERPRETETION:
On the basis of above analysis,we can interpret that main reason for buying
insurance policies is because of security reasons as 49% of respondent
agreed with it.
24
15
49
10
2
Main purpose to buy insurance
policies
Tax
Saving
Protection
Pension
Investment

26. 26
QUESTION 5)
Table no. 4.5
Figure 4.5
INTERPRETETION:
The graph shows that 50 out of 100 respondents buy an insurance policy after
looking at the features of the product which is followed by 20 respondent who
looks at different range of products and 19 looks at good will of companies.
So the products with good features have more demand among customers.
19
20
50
6
5
Your prefence in buying Insurance
policies
Goodwill of the company
Range of products
Features of the product
Services offered by
company
Returns of the bonds
Your preference in buying Insurance policies
Option Particular Response
a Goodwill of the company 19
b Range of products 20
c Features of the product 50
d Services offered by company 6
e Returns of the bonds 5

27. 27
QUESTION 6)
you purchase an insurance police under
someone else influence
Option Particular Response
a Yes 63
b No 37
Table no. 4.6
Figure 4.6
INTERPRETETION:
According to graph out of 100 respondent 63% agreed that they buy
insurance due to someone else influence not according to their requirement.
63
37
You purchase an insurance
policies under someone else
influence
Yes
No

28. 28
QUESTION 7)
Done need analysis before buying an
insurance police
Option Particular Response
a Yes 33
b No 67
Table no. 4.7
Figure 4.7
INTERPRETETION:
According to the graph out of 100 respondent 67 customers do not prefer to
do need analysis before buying insurance policies. It shows that customer do
not look at their needs before buying an insurance policies
33
67
Done need analysis before buying an
insurance policy
Yes
No

29. 29
QUESTION NO. 8)
Insurance plan you prefer to
buys
Option Particular Response
a Protection plan 57
b Investment plans 9
c Pension plan 10
d children plan 24
Table no. 4.8
Figure 4.8
INTERPRETETION:
On the basis of above analysis we can say that customers are more
interested in protection plan and children plan only. It shows that customers
do not think insurance as an investment opportunity.
57
9
10
24
Insurance plans you prefer to buy
Protection plan
Investment plans
Pension plan
children plan

30. 30
QUESTION NO. 9)
Expectations from life insurance
companies
Option Particular Response
a Innovative Products 5
b Attractive Riders 2
c Reasonable Premium 47
d
Better Customer
Service 24
e High Risk Coverage 22
Table no. 4.9
Figure 4.9
INERPRETETION:
The graph shows out of 100 respondent 47 expect reasonable premium from
insurance companies. So it shows that people prefer to buy insurance policies
when the premium is low.
5
2
47
24
22
Expectations from life insurance
companies
Innovative Products
Attractive Riders
Reasonable Premium
Better Customer Service
High Risk Coverage

31. 31
Question No. 10)
satisfied with previous
insurance plan you bought
Done need analysis
Option Particular Response
a yes 19
b no 12
c can't say 2
Table no. 4.10(a)
19
12
Satisfied with previous insurance
plan you bought (done need analysis)
yes
no
can't say

32. 32
Not did need analysis
Option Particular Response
a yes 20
b no 44
c can't say 3
Interpretation:
According to graph 20 out of 67 respondents who not did need analysis are
not satisfied with their insurance plan which is 27% and 19 out of 31
respondents who did need analysis are satisfied with their insurance plan
which is 61%. It shows that more percentage of people will satisfied with their
police if they will do need analysis.
20
44
3
Response
a yes
b no
c can't say

33. 33
Findings
The findings drawn during the project are as follows:
In occupation group most of the customers werebusiness man and
second most customers were self-employed and least was associated
with government services.
Awareness about life insurance companies were mostly done by
agents.
Out of 100 respondent 49% of buy an insurance policy for security
purpose and 24% to save tax.
Only 33% of customers do need analysis before buying an insurance
policy.
Most of the customers looked for a reasonable premium before buying
an insurance policy.
Most of the customers purchase insurance policy under the influence of
someone else.
Customers who do need analysis before buying an insurance policy
were most satisfied with their products.
Most of the respondent like to buy a protection plan polices which was
followed by child plan.
Knowledge about different tools that can be used to calculate need
analysis.

34. 34
SUGGESTIONS
 Customers should be made more aware of need analysis as there is
low awareness level among them.
 Insurance companies should take more effort in spreading awareness
about need analysis calculation.
 Insurance companies should also give training to their advisors to
explain about need analysis calculation to customer properly as
customer how do need analysis are more satisfied with their policies.
 Insurance companies should have a reasonable premium rate as most
of the customers prefer so.

35. 35
 CONCLUSION
Insurance sector in India is growing at a very high rate and it is expected to
grow more in future. This study had made an attempt to understand to
understand the various risk involves in investing in insurance an how to
manage those risk. I observed that most of the people buy an insurance
police under someone’s influence and not according to their requirement. Also
there is a very low awareness about need analysis calculation. Many people
do not pay their premium as they did not purchase their policies according to
their requirement.
Customer satisfaction plays a very important role in increasing the market
share of the company and it is very hard to get. So insurance companies
should sell their insurance policies according to needs of customers in this
way they can easily acquire customer’s loyalty.

36. 36
NAME ---------------------------------------------------------------------------
AGE ----------- Nationality ----------------------- Income ---------------
Contact number --------------------------------
Address-----------------------------------------------------------------------------
Q1) Occupation
a) Businessman [ ] b) Professional [
]
c) Students [ ] d) House
wife [ ]
Q.2) Do u have Insurance?
a)Yes[ ] b) No[ ]
Q.3) Awareness of Life Insurance Companies:-
a)Print media[ ] b)Electronic
media [ ]
c) Agents [ ] d) Others [ ]
Q.4) what is the main purpose to buy insurance policies?
a) Tax [ ]
b) Saving [ ]
c) Protection [ ]
d) Pension [ ]
e) Investment [ ]
Q.5)whatdo you look in an insurance policy before buying it?
a) Goodwill of the company [ ]

37. 37
b) Range of products [ ]
c) Features of the product [ ]
d) Services offered by company [ ]
f) Returns of the bonds[ ]
Q.6) Do you purchase an insurance police under someone else
influence?
a) yes [ ] b) No[ ]
Q.7) I prefer to do need analysis before buying an insurance police:-
a) Yes[ ] b) No [ ]
Q.8)WhichInsurance plan you prefer to buys?
a) Protection plan [ ] b) Investment plans [ ]
c) Pension plan [ ] d) children plan [ ]
Q.9) what do you expect from life insurance companies?
a) Innovative Products [ ] b) Attractive Riders [ ]
c) Reasonable Premium [ ] d) Better Customer
service [ ]
e) High Risk Coverage [ ]
Q.10) Are you satisfied with previous insurance plan you bought ?
A) Customer who do need analysis:_
a) yes [ ] b) no [ ]

38. 38
c) can’t say [ ]
B) Customer who do not did need analysis:
a) yes [ ] b) no [ ]
c) can’t say [ ]

39. 39

40. 40

41. 41

42. 42