HDFC Standard Life Insurance is a leading private life insurance company in India. It is a joint venture between HDFC, a major housing finance company, and Standard Life of the UK. The document discusses HDFC Standard Life's products, growth, awards, and expansion efforts. It also provides background on the insurance industry in India, including key regulations and the growth of private insurers. HDFC Standard Life aims to increase its market share through new products, advertising, and improving its sales techniques.

1. EXECUTIVE SUMMARY
HDFC Standard Life insurance is the oldest life insurance company in the world.
It is the largest insurer in the UK and is the 28th largest company in the world. In
India, the company is marketing life insurance products and unit linked
investment plans. From my research at HDFC SLIC, I found that the company has
a lot of competition from other private insurers like ICICI, Aviva, Birla Sun Life
and Tata AIG. It also faces competition from LIC. To compete effectively HDFC
SLIC could launch cheaper and more reasonable products with small premiums
and short policy terms (the number of year‟s premium is to be paid). The ideal
premium would be between Rs. 5000 – Rs. 25000 and an ideal policy term would
be 10 – 20 years.
HDFC must advertise regularly and create brand value for its
products and services. Most of its competitors like Aviva, ICICI, Max, Reliance
and LIC use television advertisements to promote their products. The Indian
consumer has a false perception about insurance – they feel that it would not
benefit them if they do not live through the policy term. Nowadays however, most
policies are unit linked plans where a customer is benefited even if their death
does not occur during the policy term. This message should be conveyed to
potential customers so that they readily invest in insurance. Family responsibilities
and high returns are the two main reasons people invest in insurance. Optimum
returns of 16 – 20 % must be provided to consumers to keep them interested in
purchasing insurance. On the whole HDFC standard life insurance is a good place
to work at. Every new recruit is provided with extensive training on unit linked
funds, financial instruments and the products of HDFC. This training enables an
advisor/sales manager to market the policies better. HDFC was ranked 13 in the
Best Places to Work survey. The company should try to create awareness about
itself in India. In the global market it is already very popular. With an
improvement in the sales techniques used, a fair bit of advertising and

2. modifications to the existing product portfolio, HDFC would be all set to capture
the insurance market in India as it has around the globe.
THE INSURANCE INDUSTRY IN INDIA AN OVERVIEW
With the largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It‟s a business growing at the rate of
15-20 per cent annually and presently is of the order of Rs 1560.41 billion (for the
financial year 2006 – 2007). Together with banking services, it adds about 7% to
the country‟s Gross Domestic Product (GDP).The gross premium collection is
nearly 2% of GDP and funds available with LIC for investments are 8% of the
GDP. Even so nearly 65% of the Indian population is without life insurance cover
while health insurance and non-life insurance continues to be below international
standards. A large part of our population is also subject to weak social security
and pension systems with hardly any old age income security. This in itself is an
indicator that growth potential for the insurance sector in India is immense. A
well-developed and evolved insurance sector is needed for economic development
as it provides long term funds for infrastructure development and strengthens the
risk taking ability of individuals. It is estimated that over the next ten years India
would require investments of the order of one trillion US dollars. The Insurance
sector, to some extent, can enable investments in infrastructure development to
sustain the economic growth of the country.
HISTORICAL PERSPECTIVE
The history of life insurance in India dates back to 1818 when it was conceived as
a means to provide for English Widows. Interestingly in those days a higher
premium was charged for Indian lives than the non – Indian lives, as Indian lives
were considered more risky to cover. The Bombay Mutual Life Insurance Society
started its business in 1870. It was the first company to charge the same premium
for both Indian and non-Indian lives. The Oriental Assurance Company was

3. established in 1880. The General insurance business in India, on the other hand,
can trace its roots to Triton Insurance Company Limited, the first general
insurance company established in the year 1850 in Calcutta by the British. Till the
end of the nineteenth century insurance business was almost entirely in the hands
of overseas companies.
Insurance regulation formally began in India with the
passing of the Life Insurance Companies Act of 1912 and the Provident Fund Act
of 1912. Several frauds during the 1920's and 1930's sullied insurance business in
India. By 1938 there were 176 insurance companies. The first comprehensive
legislation was introduced with the Insurance Act of 1938 that provided strict
State Control over the insurance business. The insurance business grew at a faster
pace after independence. Indian companies strengthened their hold on this
business but despite the growth that was witnessed, insurance remained an urban
phenomenon. The Government of India in 1956, brought together over 240 private
life insurers and provident societies under one nationalized monopoly corporation
and Life Insurance Corporation (LIC) was born. Nationalization was justified on
the grounds that it would create the much needed funds for rapid industrialization.
This was in conformity with the Government's chosen path of State led planning
and development. The non-life insurance business continued to thrive with the
private sector till1972. Their operations were restricted to organized trade and
industry in large cities. The general insurance industry was nationalized in 1972.
With this, nearly 107 insurers were amalgamated and grouped into four
companies- National Insurance Company, New India Assurance Company,
Oriental Insurance Company and United India Insurance Company. These were
subsidiaries of the General Insurance Company (GIC).

4. KEY MILESTONES
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers along with provident societies were taken
over by the central government and nationalized. LIC was formed by an Act of
Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crore from the
Government of India.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set
minimum solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972
nationalize the general insurance business in India with effect from 1st
January 1973.
INDUSTRY REFORMS
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill
in Parliament in December 1999. The IRDA since its incorporation as statutory
body in April 2000 has fastidiously stuck to its schedule of framing regulations
and registering the private sector insurance companies. Since being set up as an
independent statutory body the IRDA has put in framework of globally

5. compatible regulations. The other decision taken simultaneously to provide the
supporting systems to the insurance sector and in particular the life insurance
companies was the launch of the IRDA online service for issue and renewal of
licenses to agents. The approval of institutions for imparting training to agents has
also ensured that the insurance companies would have a trained workforce of
insurance agents in place to sell their products.
HDFC Standard Life Insurance Company Ltd. is one of India's leading private
insurancecompanies, 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 leadinghousing finance institution and a Group
Company of the Standard Life, UK. HDFC as onDecember 31, 2007 holds 72.38
per cent of equity in the joint venture.
HDFC STANDARD LIFE INSURANCE PARENTAGE
HDFC Limited.
•
HDFC is India leading housing finance institution and has helped build more
than23, 00,000 houses since its incorporation in 1977.
•
In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.
•
As at March 31, 2004, outstanding deposits stood at Rs.
7 , 8 4 0 c r o r e s . T h e depositor base now stands at around 1 million depositors.
•
Rated AAA by CRISIL and ICRA for the 10th consecutive year
•
Stable and experienced management
•
High service standards
•
Awarded The Eco nomic Ti mes Corporate Citizen of the year
Award for its long-standing commitment to community development.
March, 2008
Silver Abby at Goafest 2008HDFC Standard Life's radio spot for Pension
Plans won a Silver Abby in the radiowriting craft category at the Goafest
2008 organised by the Advertising AgenciesAssociation of India
(AAAI). The radi o co mmercial „Pa ta nahin chala‟ touched several

6. changes in life in the blink of an eye through an old man‟s perspective.
Theobjective was drive awareness and ask people to invest in a pension plan to
live life tothe fullest even after retirement, without compromising on one‟s self-
respect.
Laadli Media Award 2007
HDFC Standard Life received Laadli Media Award 2007 for
i t s ' B i g c a r ' T V commercial. It showed how a daughter wants to be
more responsible towards her family and asks her dad to upgrade to a bigger
car by offering him the extra moneyRequired to buy the car.HDFC Standard Life
received this award for two years consecutively. In 2006, it wonfor the 'Papa' TV
commercial, which challenged the stereotype parents saving only for their son's
education or daughter's wedding. The co mpan y took a bold step
byshowing parents saving for their daughter's education abroad,
demonstratingProgressive thinking.Laadli Media Awards, instituted in 2007,
by Population First, an NGO working onwomen's rights and social
development, is g iven to professionals in print and electronic media
and ad makers for gender sensitive news reports, articles, print, TVads, and films.
March, 2008
Unit Linked Savings Plan Tops Mint Best TV Ads SurveyThe Unit Linked
Savings Plan advertisement of HDFC Standard Life, one of theleading
private insurance companies in India, has topped Mint‟s Top Television
Advertisement survey conducted, for February 2008. HDFC Standard
Life‟s UnitLinked Savings Plan advertisement was ranked 4th in terms of a
combined score of adawareness and brand recall and 3rd in ter ms of
ad diagnostic scores (likeability, enjoyment, believability, and claim). The
respondents were between 18 and 40 years.Mint‟s exclusive report, „New voices
in a makeover‟ outlines the survey in detail.
February, 2008
Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007Mr
Deepak M Satwal ekar, Managing Director and CEO, HDFC
Standard Life, received the QIMPRO Gold Standard Award 2007 in the
business category at the 18thannual Qi mpro Awards function. The
award celebrates excellence in individual performance and highlights
the quality achievements of extraordinary individuals inan era of global
competition and expectations.
January, 2008
Sar Utha Ke Jiyo Among India‟s 60 Glorious Advertising MomentsH D F C
Standard Life‟s advertising slogan honoured as one of
„60 GloriousAdvertising & Marketing Moments' over the last 60
years in India,‟

7. b y 4Ps Business and Marketing magazine. The magazine said that HDFC
Standard Life isone of the first private insurers to break the ice using the
idea of self respect (
Sar Utha Ke Ji yo
) instead of 'death' to convey its brand proposition. This was
then,followed by others including ICCI Prudential, thus giving HDFC
Standard Life thecredit of bringing up one such glorious advertising and
marketing moment in the last60 years.
4th August 2008
HDFC Standard Life Launches Unit Linked Wealth Maximiser Plus
23rd July 2008
HDFC Standard Life Launches SimpliLife, a Unit Linked Plan in Simplest Way
14th May 2008
HDFC Standard Life Declar es Re sul ts for FY2007 -08; New
Business Pre miumIncome grows by 63%
4th March 2008
HDFC Standard Life Expands its Reach with Inauguration of Mohali Branch
21st October 2007 –
HDFC Standard Life Announces Muthoot Capital Services as its Corporate
Agencyfor Distribution of Life and Pension Products
7th May 2007
HDFC Standard Life expands its reach to smaller cities in Madhya Pradesh
15th February 2007
HDFC Standard Life expands it‟s reach in Vidarbha
16th May 2006
HDFC Standard Life records impressive growth
7th February 2006
HDFC Standard Life records impressive growth
29th November 2005
HDFC Standard Life posts strong growth
16th August 2005
HDFC Standard Life grows faster than the private sector average
16th May 2005
HDFC Standard Life declares results for FY 2004-05

8. PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA
The life insurance industry in India grew by an impressive 47.38%, with premium
income at Rs. 1560.41 billion during the fiscal year 2006-2007.Though the total
volume of LIC's business increased in the last fiscal year (2006-2007) compared
to the previous one, its market share came down from85.75% to 81.91%.The 17
private insurers increased their market share from about 15% to about 19% in a
year's time. The figures for the first two months of the fiscal year 2007-08 also
speak of the growing share of the private insurers. The share of LIC for this period
has further come down to 75 percent, while the private players have grabbed over
24 percent. With the opening up of the insurance industry in India many foreign
players have entered the market. The restriction on these companies is that they
are not allowed to have more than a 26% stake in a company‟s ownership. Since
the opening up of the insurance sector in 1999, foreign investments of Rs. 8.7
billion have poured into the Indian market and 19 private life insurance companies
have been granted licenses. Innovative products, smart marketing, and aggressive
distribution have enabled fledgling private insurance companies to sign up Indian
customers faster than anyone expected. Indians, who had always seen life
insurance as a tax saving device, are now suddenly turning to the private sector
and snapping up the new innovative products on offer. Some of these products
include investment plans with insurance and good returns (unit linked
plans),multipurpose insurance plans, pension plans, child plans and money back
plans.

9. HDFC STANDARD LIFE INSURANCE COMPANY LIMITED
INTRODUCTION
HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since
emerged as the largest residential mortgage finance institution in the country. The
corporation has had a series of share issues raising its capital to Rs. 119 Crores.
The gross premium income for the year ending March 31, 2007 stood at Rs. 2,856
Crores and new business premium income at Rs.1, 624 Crores. The company has
covered over 8, 77,000 lives year ending March 31, 2007.HDFC operates through
almost 450 locations throughout the country with its corporate head quarters in
Mumbai, India. HDFC also has an International Office in Dubai, UAE with
service associates in Kuwait, Oman and Qatar. HDFC is the largest housing
company in India for the last 27 years.
SNAPSHOT-I
1. Incorporated in 1977 as the first specialized Mortgage Company in India.
2. Almost 90% of initial shareholding in the hands of domestic institutes and retail
investors. Current 77% of shares held by foreign institutional investors.
3. Besides the core business of mortgage HDFC has evolved into a financial
conglomerate with holdings In:
HDFC Standard Life insurance Company- HDFC holds 78.07 %.
HDFC Asset Management Company – HDFC holds 50.1%
HDFC Bank- HDFC holds 22.25%.
Intel net Global (Business Process Outsourcing) – HDFC holds 50%.
HDFC Chubb General Insurance Company – HDFC holds 74%.

10. SNAPSHOT-II
1. Loan Approvals Rs. 805 billion.(up to Dec 2007) (US $ 18.30 bn.)
2. Loan Disbursements Rs.669 billion(up to Dec. 2007) (US $ 15.20 bn)
3. Housing Units Financed 2.5 million.
4. Distribution
Offices 181
Outreach Programs 90
KEY PLAYERS
Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive
Chairman of Housing Development Finance Corporation Limited (HDFC Limited).
He joined HDFC Limited in a senior management position in1978. He was inducted
as a whole-time director of HDFC Limited in 1985 and was appointed as its
Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited.
Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England &
Wales).
Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company
since November, 2000. Prior to this, he was the Managing Director of HDFC
Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology
from the Indian Institute of Technology, Bombay and a Masters Degree in Business
Administration from The American University, Washington DC.
GROUP COMPANIES
HDFC Bank: World Class Indian Bank- among the top private banks in India.
HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager.
Intel net Global: BPO services for international customers.
CIBIL: Credit Information Bureau India Limited.
HDFC Chubb: Upcoming Private companies in the field of General Insurance.

11. HDFC Mutual Fund.
HDFC reality.com: Helps to search properties in all major cities in India
HDFC securities
STANDARD LIFE
Standard Life is Europe‟s largest mutual life assurance company. Standard Life,
which has been in the life insurance business for the past 175 years is a modern
company surviving quite a few changes since selling its first policy in1825. The
company expanded in the 19th century from kits original Edinburgh premises,
opening offices in other towns and acquitting other similar businesses. Standard Life
Currently has assets exceeding over £ 70 billion under its management and has the
distinction of being accorded “AAA” rating consequently for the six years by
Standard and Poor.
SNAPSHOT
Founded in 1875, company supporting generation for last 179 years.
Currently over 5 million Policy holders benefiting from the servicesoffered.
Europe‟s largest mutual life insurer.
JOINT VENTURE
HDFC Standard Life Insurance Company Limited was one of the first companies to be
granted license by the IRDA to operate in life insurance sector. Reach of the JV player
is highly rated and been conferred with many awards. HDFC is rated „AAA‟ by both
CRISIL and ICRA. Similarly, Standard Life is rated „AAA‟ both by Moody‟s and
Standard and Poor‟s. These reflect the efficiency with which HDFC and Standard Life
manage their asset base ofRs. 15,000 Cr and Rs. 600,000 Cr. respectively. HDFC
Standard Life Insurance Company Ltd was incorporated on 14th August2000. HDFC is
the majority stakeholder in the insurance JV with 81.4% staple and Standard of as a
staple 18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture. HDFC
Standard Life Insurance Company Ltd. Is one of India‟s leading Private Life Insurance

12. 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 housing finance institution and the Standard Life Assurance
Company, a leading provider of financial services from 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 insurer.
BUSINESS GROWTH Track Record so far
The gross premium income of HDFC, for the year ending March 31, 2007stood at Rs.
2,856 crores and new business premium income at Rs. 1,624crores.The company has
covered over 8,77,000 lives year ending March 31, 2007.Company also declared our
5th consecutive bonus in as many years for our‟ with profit‟ policyholders.
KEY STRENGTH Financial Expertise
As a joint venture of leading financial services groups. HDFC standard Life has the
financial expertise required to manage long-term investments safely and efficiently.
1. Range of Solutions: HDFC SLIC has a range of individual and group solutions,
which can be easily customized to specific needs. These group solutions have been
designed to offer complete flexibility combined with a low charging structure.
2. Strong Ethical Values: HDFC SLIC is an ethical and Cultural Organization. False
selling or false commitment with the customers is not allowed.
3. Most respected Private Insurance Company: HDFC SLIC was awarded No-1
Private Insurance Company in 2004 by the World Class Magazine Business World
for Integrity, Innovation and Customer Care.

13. CORPORATE OBJECTIVE
Vision
'The most successful and admired life insurance company, which means thatwe
are the most trusted company, the easiest to deal with, offer the bestvalue for
money, and set the standards in the industry'.
'The most obvious choice for all'.
Values
Integrity
Innovation
Customer centric
People Care One for all
Teamwork
Joy
Simplicity
PRODUCTS & SERVICES
The right investment strategies won't just help plan for a more comfortable
tomorrow -- they will help you get “Sar Utha ke Jiyo”. At HDFC SLIC, life
insurance plans are created keeping in mind the changing needs of family. Its life
insurance plans are designed to provide you with flexible options that meet both
protection and savings needs. It offers a full range of transparent, flexible and
value for money products. HDFC SLIC products are modern and contemporary
unitized products that offer unique customer benefits like flexibility to choose
cover levels, indexation and partial withdrawals. (Source:

14. PLANS THAT ARE OFFERED BY HDFC STANDARDS
LIFEINSURANCE
Individual Products
1. Protection Plans: A person can protect his family against the loss of his
income or the burden of a loan in the event of his unfortunate demise,
disability or sickness. These plans offer valuable peace of mind at a small
price. Protection range includes our
2. Investment Plans: HDFC SLIC‟s Single Premium Whole of Life plan is
well suited to meet long term investment needs. This provides attractive
long term returns through regular bonuses.
3. Pension Plans: Pension Plans help to secure financial independence even
after retirement. Pension range includes
4. Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus.
Savings Plans: Savings Plans offer a flexible option to build savings for
future needs such as buying a dream home or fulfilling your children‟s
immediate and future needs.
Savings range includes
Endowment Assurance Plan, Unit Linked
Endowment, Unit Linked Endowment Plus, Unit Linked Endowment
Plus II, Money Back,
Unit Linked Enhanced Life Protection II, Children's Plan.
Linked Young Star, Unit Linked Young Star Plus, Unit Linked Young
Star plus II.
Group Products
HDFC Standard Life has the most comprehensive list of products forprogressive
employers who wish to provide the best and most innovativeemployee benefit
solutions to their employees. It offers different products for different needs of

15. employers ranging from term insurance plans for pure protection to voluntary
plans such as superannuation and leave encashment. HDFC SLIC offers the
following group products to esteemed corporate clients:
Social Product Development Insurance Plan Development Insurance plan is an
insurance plan which provides life cover to members of a Development Agency
for a term of one year. On the death of any member of the group insured during
the year of cover, a lump sum is paid to those member beneficiaries to help meet
some of the immediate financial needs following their loss.
MARKETING PROBLEMS
The old and out dated technique of tele marketing is used to prospect customers.
More modern techniques must be adopted. The company must sponsor shows and
give presentations in corporate houses. The financial health check must be
performed for every prospect to assess his/her true financial position and needs.
Some of the advisors skip this vital step and the prospect ends up with a plan they
do not appreciate and soon surrender or discontinue.
Some of the main problems in marketing the policies are:
Large amount of competition (18 players in the market) other brands are well
advertised and have higher recall value.
Face competition from banks and mutual funds
High premium policies are difficult to market
Incorrect perception about insurance
Interested prospects might have a lack of time and postpone investments
Customers get defensive if you could call
Short term plans are available only at large premium
Customers do not have risk appetite to invest in shares
Some prospects have already invested and are not interested in further investments

16. Consumers don‟t want to undertake medical examinations
Large amount of documentation
Customers do not like their money locked up for many years
Lack of awareness about the unit linked funds in the market
No money back plan present in the product portfolio
SUGGESTIONS FOR IMPROVEMENT
Advertise about the company and its products – it motivates individuals to
purchase insurance
Create a positive perception about insurance
Speak about the good features a plan offers like high returns, life cover, tax
benefits, indexation, and accident cover while prospecting customers
Try to sell the product/plan which the consumer requires and not the plan where
the advisors benefit is higher
Improve the efficiency in operations
Bring out policies with small premiums payable for short periods of time – Rs.
5000 – Rs. 10000 per annum for 10 years
Attract the youth of India with higher returns on investment as returns are the
motivating factor which influence purchase of insurance
Promote insurance in colleges and corporate houses
Promote HDFC SLIC as an Indian Company to build trust
HDFC SLIC could have a brand ambassador or a mascot to promote its services
Should have partial withdrawals from the first year onwards
Tap the rural market where there is large potential
Diversify product portfolio
Make products more straight forward – reduce complexities