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Customer Satisfaction of Life Insurance Companies

Summer Training Report


Customer Satisfaction of Life Insurance Companies

Comparative Analysis of Kotak Life Insurance

(A Unit of Kotak Mahindra Old Mutual Life Insurance Ltd.)


Other Insurance Companies




I, _____________Roll No._____________M.B.A Final year of _______________________hereby declare that the Summer Training Report entitled Comparative Analysis of Kotak Life Insurance with Other Insurance Companies is an original work and the same has not been submitted to any other institute for the award of any other degree. A seminar presentation of the Training Report was made on ________ and the suggestions as approved by the faculty were duly incorporated.



This research is a part of my summer training, which is included in the curriculum of my Master of Business Administration. We cannot rely merely upon the theoretical knowledge. It is to be complimented by practical know-how for it to be fruitful. A positive and correct result of the classroom learning needs realities of practical situation.

The training enables the management students to see the working conditions under which they have to work in the future. It gives them a real feel of the corporate world, which helps them to better equip themselves with the required skills. It has been a great learning experience for me.

The project report is divided under 5 chapters.

Chapter 1 includes significance; review of literature, focus of study and objectives

Chapter 2 includes the industry and company profile

Chapter 3 includes research methodology and limitations of the study

Chapter 4 includes the theoretical analysis and findings of the study

Chapter 5 includes bibliography and annexures.



Life is full of risks. Being a social animal and risk reverse, man always tries to reduce risk. An age- old method of sharing of risk through economic cooperation led to the development of the concept of “insurance”.

Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is collective bearing of risk. The risks, which can be insured against, include fire, perils of sea, death, accidents and burglary.

Insurance can be defined as a legal contract between two parties where one party called insurer undertakes to pay a fixed amount of money on the happening of a particular event which may be certain or uncertain. The other party called insured pays in exchange a fixed sum known as premium. The insurer and the insured are also known as “Assuror and Assured”.


The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders are used to bear risk of the caravan by giving loans, which were later repaid with interest when the goods arrived at safely. The first insurance contract was entered into by European maritime nation in 1347 to accept marine insurance as a practice.

The oldest life insurance company in existence today is the society fr the equitable assurance of lives and Survivorship, known as “old Equitable”. It ws established in England in 1756.So before discussing more about this topic I would like to explain what is Insurance?

Life Insurance : Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises.

In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme.

The opening up of insurance sector was a part of the on going liberalization in the financial sector of India. The changing face of the financial segment and his entry of several companies in the field of life and non life insurance segment are one of the key results of these liberalization efforts. Insurance business by way of generating premium income adds significantly to the GDP.

Despite the fact that the market is vast in India for the insurance business, the coverage is far less compared with the international standards. Estimates shows that a meager 35-40 million, out of a population of 950 million, have come so far under the umbrella of the insurance industry. The potential market is so far huge able to make deeper penetration into newer segment and expand the market size manifold.

Over the past three-year, more than companies have expressed interest in doing business in India. The IRDA is the regulatory authority, which looks over all related aspects of the insurance business. The provisions of the IRDA bill acknowledge many issues related to insurance sector. The IRDA bill provides guidance for three levels of players’ insurance companies, insurance brokers and insurance agent. Life insurance sector is one of the key areas where enormous business potential exists. In India currently the life insurance premium as a percentage of GDP

The huge potential of the Indian insurance market is up for the taking. We can understand the importance of the life insurance sector for India from following facts:

  • The fifth largest insurance market in Asia.
  • The third largest emerging market in the world today
  • Insurance sector accounting for3% of GDP and we have a population of more than one billion.

Global players have set eyeballs in Indian market. The Indian market is no doubt one of the biggest markets in the world. Accounting to the experts of the industry, Indian life insurance sector of $7.7 bn will grow to $25 bn by the end of 2007. Though the sector has been opened for private participation just a year ago, it has already witnessed a several competition among the players. With the opening of the insurance sector, there are presently 16 life insurance companies including life insurance corporation of India operating in India with more players expected to come in.


With largest number of the life insurance policies in force in the world, insurance happens to be a mega opportunity in India. It is a business growing at the fast rate of 15-20 per cent annually and presently is of the order of Rs. 450 billions. Together with banking services, it ends about 2 percent of GDP and funds available with LIC for investment are 8 percent of GDP.

The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. And in the popular unit linked insurance schemes they have a virtual monopoly, with over 90 percent of the customer.

Thus, it becomes all the more significant to study the market share and the trends in insurance sector and to compare static and growth ratio’s of different insurance companies to have a clear ideas of the potential of growth of this industry in a largely populated country of India.

The study of Competitive Analysis of Kotak life insurance with both public and private insurance companies tells the market position of the company and the market share of the company. This study also tells about the strength and weakness of the various companies in the industry. The life insurance companies are coming with different schemes for different people.

Study about the various Insurance companies, which are in the competition of Kotak Life Insurance, has more significance. This study will help in different ways. The importance of the study are:

  • This study will help in making the data more understandable and simpler.
  • This study will indicate the current Market Trends
  • This study will indicate the strong points and weaker points of Kotak Life Insurance with its competitors.
  • To compare the company’s performance with the average performance of the Industry this study would be beneficial.
  • This study will help in forecasting the future trends.

Review of Existing Literature

As per the review of the existing literature, researcher referred to many journals, articles of the magazines of business sector. Different sites related to life insurance were surfed and various books are also referred.

From all these, it is observed that in the past five years, tremendous changes have occurred in the field of insurance sector, especially in life insurance. ‘companies’ policies are changing because customers have become more demanding. Each company is providing more and more beneficial schemes in comparison to other to increase their market share.

“Insurance Generation next”

During the round table discussion the progress of Indian insurance industry, after liberalization was examined. Following aspects came forth:

  • Major changes have take place over the past couple of years and market is to be expected to expanding a big way.
  • Insurance companies must go in retail in a big way
  • Need for up gradation of system and infrastructure
  • Utmost urgency in finding out of the need customers

NC Sharma, MD, LIC ‘LIC set the benchmark, with premium income –the kind of plan that we have, other companies tend to look at that, the premium by a certain % and try to make their plans look more attractive.

The KPMG repot, titled insurance: IRDA chairman N Ranngachari released trends and issues, in New Delhi on 9 Nov. Mr. Ranngachari said the government planned to bring out separate pieces of legislation to regulate insurance surveyors and actuaries, after the passages of IRDA bill.

Ian Watts, CEO, Tata-Aig life insurance ‘ the no of policies that we have sold are much more than we expected with low premium, high volumes.

Static in Dalal streets reveals that; “Approximately 80% of the population is still uninsured leading a whole lot of untapped market to harness for the insurance companies.

According to ORG –MARG LIC retained top insurance player but it has lost its share to private sector players compared to previous round of the study. LIC witnessed a drop of 12% to finish at 15%. While ICICI Pru HDFC Std life and Kotak Life Insurance managed an increase in share by 8% 3% and 2% respectively. HDFC fought back to regain it’s position among top five, lost earlier to OM Kotak Mahindra.

The KPMG report makes the following observation with regards to insurance sector in India:

  • The threat of new players taking over the market has been overplayed.
  • Nationalized players will continue to hold strong market share position, but there will be enough business for new entrants to be profitable.
  • Opening up the sector will certainly mean new product, better packaging and improved customer’s services.
  • A middle market approach tapping segments and niches that are currently underserved will prove profitable for new entrants.
  • New companies often overestimate the need for insurance expertise, assuming that a joint venture is most appropriate type of alliance, when in fact many forms are possible.
  • Both new entrants and exiting players must explore new distribution and marketing channels.


Every study has some objectives. Without objectives no study can be completed. So objectives of my study are following:

  • To acquire the knowledge of Various Life Insurance Companies.
  • To know the consumer behavior towards Insurance Products.
  • To create Mass awareness about the Insurance Product
  • To Help the Kotak to expend client base and Market Share.
  • To know the factors which can provide an edge over Competitor
  • To Study which company prefer when taking insurance product.
  • Get familiar with what is Insurance and concept of marketing power game.
  • Get familiar with multiple Marketing tools and techniques would be used to capture synergy effect in the study.
  • To know with more concentration about this service sector eventually lead to more market power for the firms.
  • If above objective is true then identified the extent and dimensions of the power search and retrieval.
  • To know about the various investment and insurance product of various companies.
  • To know about various products of the Kotak life insurance.
  • To know about customers taste in insurance and investment sector.
  • To understand the future scenario of insurance and investment sector.
  • To assess the factor responsible for investment and insurance.


As in the today scenario, globalization is increasing day by day. Thus it is necessary to know about the insurance.

The main concept of choosing this project is to familiarize with the products and policies.

The target market of insurance is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, emerging mid-sized corporate. For these corporate, the insurance company provides a wide range of commercial and transactional services, trade services etc.


The Life Insurance Market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection, with the entry of the private insurers the rules of the game have changed. Despite its teeming one billion populations, India still has a low insurance penetration of 1.95 percent, 51st in the world. Despite the fact that India boasts a saving rate of around 25 percent, less than 5 percent is spent on the insurance.

Yet, nearly 80 percent of Indian populations are without life insurance cover, health insurance and non-life insurance continue to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly old age income security. This itself is an indicator that growth potential for the insurance sector is immense.

Thus, the main focus of the study will be on the comparison, which will be studied under the main problems, are the financial position, market share, services, customer satisfactions, policies benefits, premium, and terms etc, which have created awareness in the minds of Indian public about the importance of life insurance.

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