Comparat|ve study of ULI

1rad|t|ona| p|ans
|n 8a[a[ A|||anz ||fe |nsurance co
SubmlLLed by
8amlnder slngh
M8A 3 Sesslon (20102012)
8AIAI ALLIAN2 LIIL INSUkANCL CC L1D
W 8a[a[ Alllanz Llfe lnsurance Co LLd ls a [olnL
venLure beLween 8a[a[ AuLo LLd Alllanz AC of
Cermany 8oLh en[oy a repuLaLlon of experLlse
sLablllLy sLrengLh
W lncorporaLed on 19 SepL 2000 8a[a[ Alllanz Llfe
lnsurance Co LLd recelved Lhe lnsurance
8egulaLory uevelopmenL AuLhorlLy (l8uA)
cerLlflcaLe of reglsLraLlon (83) on 2 May 2001 Lo
conducL llfe lnsurance buslness (lncludlng healLh
lnsurance buslness) ln lndla 1he company has an
auLhorlzed paldup caplLal of 8s 110 Cores
W Jorld's LargesL lnsurance Co by revenue 8s 320333 Cr (Luro 969
bllllon)
W Jorldwlde by Cross JrlLLen remlums 8s 4 77930 Cr (euro 89
bllllon)
W 1hlrd largesL AsseLs under ManagemenL (AuM) largesL amongsL
lnsurance cos AuM of 8s 9394200 Cr (Luro 1078 bllllon)
W 11Lh largesL corporaLlon ln Lhe world
W 30 of global buslness from Llfe lnsurance closes Lo 0 mllllon llves
lnsured globally
W LsLabllshed ln 1890110 years of lnsurance experLlse
W More Lhan 70 counLles 177000 employees worldwlde
W lnsurance Lo almosL half of Lhe lorLune 300 cos
KEYFACTS OFALLIANZ IS:
W ver 2 mllllon (2079217) pollcles ln Lhls year
hlghesL amongsL all prlvaLe secLor players and
Laklng Lhe number 1 poslLlon
W ave sold over 34 mllllon pollcles (34 72873)
lssued Llll daLe
W LargesL dlsLrlbuLlon neLwork Lo reach Lhe
cusLomers across Lhe counLry wlLh 213000
agenLs 900 offlces ln 840 Lowns 200
corporaLe agenLs 8ancassurance parLners
#OWTH
8a[a[ 1eam
8ahul 8a[a[
Madhur 8a[a[
8a[lv 8a[a[
San[lv 8a[a[
Lrlc vas
Abraham !oseph
radeep ShrlvasLava
S Srldhar
8 C Maheshwarl
8akesh Sharma
C 1rlpaLhl
n lngoranl
kevln usa
v S 8aghavan
S 8avlkumar
k Srlnlvas
8an[lL CupLa
! Srldhar
Chalrman
vlce Chalrman
Managlng ulrecLor
LxecuLlve ulrecLor
resldenL (new ro[ecLs)
resldenL (8esearch uevelopmenL)
resldenL (Lnglneerlng)
CL (2J)
CL (Commerclal vehlcles)
CL (lnLernaLlonal 8uslness)
vlce resldenL (CorporaLe)
vlce resldenL (Commerclal)
vlce resldenL (llnance)
CL (peraLlons 8lL)
vlce resldenL (8uslness
uevelopmenL)
vlce resldenL (uman 8esources)
resldenL (lnsurance 8lSL)
Company SecreLary
Compet|tors of 8a[a[ A|||anz
W ulC S1AnuA8u LllL lnSu8AnCL C L1u
W lClCl 8uuLn1lAL LllL lnSu8AnCL C L1u
W 8l8LA Sun LllL lnSu8AnCL C L1u
W lnC v?S?A LllL lnSu8AnCL C v1 L1u
W ML1 LllL lnulA lnSu8AnCL C v1 L1u
W k1Ak MAlnu8A Lu Mu1uAL LllL
lnSu8AnCL L1u
IN1kCDUC1ICN 1C INSUkANCL
W Insurance |s a contract between two part|es
the |nsurer and the |nsured 1he lnsurer ls Lhe
lnsurance company who wlll provlde Lhe cover
Lo Lhe lnsured agalnsL any flnanclal losses 1he
lnsured may be an lndlvldual person or a
group of people llke an employer members of
a socleLy eLc
Insurance |s ma|n|y of two types
LIIL INSUkANCL
W 1LkM
W WnCLL LIIL
W LNDCWMLN1
W LNSICN
GLNLkAL INSUkANCL
W MC1Ck
W MAkINL
W IIkL
W nLAL1n
nIS1Ck CI LIIL INSUkANCL
W Llfe lnsurance sLarLed ln 1383 ln Lngland
W lL sLarLed ln 1870 ln lndla
W CovernmenL exerclsed conLrol over Lhe lnsurance
secLor by passlng lnsurance AcL ln 1912
W lL was amended ln 1938 Lherefore Lhe AcL ls known as
lnsurance AcL 1938
W ln 1936 Llfe lnsurance buslness naLlonallzed
W ln 1999 Lhe lnsurance secLor was opened for prlvaLe
players
W l8uA was formed ln place of conLroller of lnsurance by
passlng an AcL le l8uA AcL
r|nc|p|es of Insurance
W uLmosL good falLh
W lnsurable lnLeresL
W rlnclple of lndemnlLy
AnAL?SlS
I|nanc|a| ana|ys|s
W llnanclal analysls refers Lo an assessmenL of Lhe
vlablllLy sLablllLy and proflLablllLy of a buslness
subbuslness or pro[ecL lL Lhe process of
ldenLlfylng Lhe flnanclal sLrengLh weakness of
Lhe flrm by esLabllshlng relaLlonshlp beLween Lhe
lLems of 8alance SheeL roflL Loss AccounL
1he purpose of llnanclal Analysls ls Lo dlagnose
Lhe lnformaLlon conLalned ln flnanclal sLaLemenLs
so as Lo [udge Lhe proflLablllLy flnanclal
soundness of Lhe flrm
kat|o ana|ys|s
W 1hls ls Lhe sLudy and lnLerpreLaLlon of Lhe relaLlonshlps
beLween varlous flnanclal varlables by lnvesLors or lenders
W 8aLlo Analysls ls a Lechnlque of analysls lnLerpreLaLlon of
flnanclal sLaLemenLs
W A raLlo ln slmple sense ls deflned as Lhe lndlcaLed
quoLlenL of Lwo maLhemaLlcal expresslons" and as Lhe
relaLlonshlp beLween Lwo or more Lhlngs"
W 8aLlo Analysls ls Lhe process of esLabllshlng and
lnLerpreLlng varlous raLlos quanLlLaLlve relaLlonshlp
beLween flgures and group of flgures
W ln flnanclal analysls ls used as a bench mark for evaluaLlng
Lhe flnanclal poslLlon of flrm
YEA#
#ATIOS:-
2008 2007 2006
Liquidity ratios
Current Ratio 19.10 20.40 25.87
Debt/Equity 11.11 10.58 10.24
Interest Cover 1.35 1.30 1.30
Profitability ratios
OPM 92.65 92.03 88.23
GPM 92.48 91.78 87.87
NPM 17.82 17.82 16.52
roducts and serv|ces
W Ind|v|dua| p|ans
W Group ||fe p|ans
INDIVIDUAL LANS
W Un|t L|nked Insurance |ans
W 1rad|t|ona| Insurance |ans
W ens|on |ans
W 1erms |ans
UNI1 LINkLD INSUkANCL LANS
W Jhen people see how lnvesLmenLs ln Lhe caplLal
markeL have grown over Lhe lasL few years Lhey
prefer Lo use Lhelr funds ln ways LhaL help Lhem
Lo parLlclpaLe ln Lhe boom ln Lhe caplLal markeL
W 1hey are also called unlL Llnked lnsurance lans
or uLls ln shorL A uLl ls a llfe lnsurance pollcy
whlch provldes a comblnaLlon of llfe lnsurance
proLecLlon and lnvesLmenL
Why do |nsurers prefer ULIs?
W lnsurers can sell Lhese pollcles wlLh less caplLal of
Lhelr own Lhan whaL would be requlred lf Lhey
sold LradlLlonal pollcles
W Lhey glve lnsurance companles an opporLunlLy
Lo geL a large chunk of Lhe asseL managemenL
buslness whlch has been LradlLlonally domlnaLed
by muLual funds
W 1hus uLls offer beLLer reLurns Lhan Lhe
LradlLlonal endowmenL plans and offer a greaL
deal of flexlblllLy along wlLh greaL reLurns maklng
Lhem Lhe flnesL producL offerlng
D|fference between 1rad|t|ona| p|ans and ULIs
ULIs
W 1he premlums ln excess of
rlsk cover ls lnvesLed as
deslred by Lhe pollcyholder
W JlLhdrawals are allowed
W 8eneflLs are varlable
W Loss ls llkely
1kADI1ICNAL LANS
W All Lhe premlums go lnLo a
common fund and are
lnvesLed aL Lhe lnsurer's
dlscreLlon
W Surrenders are allowed buL
aL a loss Loans may be
provlded
W 8eneflLs are predeLermlned
W Loss ls unllkely
GkCU LIIL LANS
W Group Cred|t Sh|e|d
W Group 1erm L|fe
W Group 1erm L|fe Scheme |n ||eu of LDLI
W Group Gratu|ty Care
W Group Superannuat|on Care
W Sma|| Group 1erm L|fe
C8ILC1IVLS CI 1nL S1UD
W 1o sLudy awareness among Lhe people abouL Llfe
lnsurance
W 1o sLudy Lhe preferences of lnvesLors beLween unlL
Llnked lnsurance lans and 1radlLlonal lans
W 1o know whlch uLls and 1radlLlonal plans are beLLer?
W 1o know Lhe frequency of paymenL made by cusLomer
SCCL CI 1nL S1UD
W 1he reporL LlLle ls ComparaLlve SLudy of uLl and
1radlLlonal lans" 1he reporL glves an overvlew
of Lhe lnsurance SecLor and company proflle lL
also lncludes hlsLory of 8a[a[ Alllanz 1he sLudy
was conducLed Lo know Lhe preferences of
lnvesLors beLween uLls and 1radlLlonal lans
1he meLhodology adopLed for Lhe sLudy was
Lhrough a sLrucLured quesLlonnalre lor Lhls
purpose sample slze of 30 was Laken 1he daLa
collecLed ls analyzed Lhoroughly and presenLed
ln Lhe form of charLs and Lables
LIMI1A1ICNS CI 1nL S1UD
W uaLa collecLlon error may be Lhere due Lo wrong
response from respondenLs as some Llme Lhey
are noL Lhe rlghL person who Lakes acLual
declslons
W Some of Lhe respondenLs can hlde Lhe real
lnformaLlon
W Some Llme people dld noL have Llme Lo fulflll
quesLlonnalre so Lhey glve only few lnformaLlon
W A sample slze cannoL always represenL Lhe whole
populaLlon
kLSLAkCn ML1nCDCLCG
W 8esearch meLhodology ls a plan of acLlon Lo be carrled
ouL ln connecLlon wlLh a research reporL" 1he populaLlon
for Lhe sLudy conslsLs of all Lhe lnvesLors who are lnvesLlng
a parL of Lhelr lncome ln varlous schemes on flnanclal
lnsLrumenLs 1he daLa for Lhe sLudy was collecLed wlLh Lhe
help of sLrucLured quesLlonnalres
W kLSLAkCn DLSIGN
8esearch deslgn ls Lhe baslc framework whlch provldes
guldellnes for Lhe resL of research process 1he survey done
for Lhls pro[ecL conveys 8eglonal lnformaLlon Scope of
survey ls llmlLed Lo Ludhlana ClLy 1he research deslgn
speclfles
ML1nCD CI DA1A CCLLLC1ICN
W r|mary Data
W Secondary Data
W SAMLL SI2L
lL was declded Lo resLrlcL Lhe sample Lo 30
respondenLs
W SAMLL DLSIGN
lor drawlng Lhe sample convenlenL sampllng
has been used Lo save Llme and Lo meeL my
b[ecLlves
Particulars #0spond0nts
Mal0 26
F02al0
ENDE#
Male
lemale
Int0rpr0tation: %ere are 26 male respondents and 4
Iemale respondents.
Particulars #0spond0nts
B0low 50,000 2
50,000 to 1,00,000 22
1,00,000 to 2,00,000
Abov0 2,00,000 2
Inco20 roup of custo20r
0
3
10
13
20
23
8elow
30000
30000 Lo
100000
100000 Lo
200000
Above
200000
8espondenLs
Int0rpr0tation:
$urvey sows tat tere are 2 respondents below 50,000 salary, 22
respondents earn salary 50,000 to 1,00,000, 4 respondents earn
1,00,000 to 2,00,000, 2 respondents earn above 2,00,000.
Particulars #0spond0nts
B0low 10 9
10 to 20 10
20 to 30 11
30to 0 0
P0rc0nt of inco20 put in savin
0
2
4
6
8
10
12
8elow
10
10 Lo
20
20 Lo
30
30 Lo
40
8elow 10
10 Lo 20
20 Lo 30
30 Lo 40
Int0rpr0tation:
9 respondents save below 10 oI salary, 10 respondents save
10 to 20, 11 respondents save 20 to 30, No respondents
save 30 to 40 oI teir salary.
Particulars #0spond0nts
Y0s 30
No 0
Awar0n0ss of lif0 insuranc0
0
3
10
13
20
23
30
?es no
?es
no
Int0rpr0tation:
ll te respondents are aware oI liIe insurance sector, tere is
ardly any person wo doesn`t know about te liIe insurance.
Particulars #0spond0nts
Y0s 2
No 6
P0rsons havin lif0 insuranc0 policy
0
3
10
13
20
23
?es no
?es
no
Int0rpr0tation:
Out oI 30, 24 respondents ave te insurance policy because during my survey I
Iound tat now a day`s insurance is not only taken as a liIe cover tool but people
also take it as an investment and tax saving tool.
Particulars 8espondenLs
New unit gain 1
Young care 1
Young care plus 2
New Iamily gain 2
Future secure 1
Century plus 12
Fortune plus 2
Healt care 1
Custo20r pr0f0r0nc0 of ULIPs
0
2
4
6
8
10
12
Int0rpr0tation:-out oI 30,12 respondents are aving century plus
according to tem it is better tan oter.
kLCCMMLNDA1ICNS
W n Lhe basls of Lhe analysls of Lhe daLa collecLed from Lhe
pro[ecL Lhe followlng recommendaLlons are
suggesLed Lo Lhe company
W 8a[a[ Alllanz Llfe lnsurance Company should do exLenslve
adverLlsemenL le bombardmenL of adverLlsemenL Lhrough
every medla wheLher elecLronlc prlnL or hoardlng eLc
W 8a[a[ Alllanz Llfe lnsurance Company musL assoclaLe lLself
wlLh Lhe organlzaLlon of evenLs llke games debaLes soclal
welfare programs eLc
W under soclal beneflLs company should lnlLlaLe poslLlve
phone calls and should provlde servlce suggesLlons wlLh
geLLlng Lo problems
CCNCLUSICN
W Accordlng Lo my survey mosL of Lhe lnvesLors prefer uLl as
compared Lo 1radlLlonal lans because lnvesLors wanL flexlblllLy
hlgher reLurns and llquldlLy LhaL ls why uLl ls beLLer Lhan
1radlLlonal lans lL ls perLlnenL Lo menLlon LhaL 1radlLlonal lans
have comparaLlvely low reLurns and have less llquldlLy
W uLl ls Lhe lnsurance cover wlLh lnvesLmenL 8oLh uLl and
1radlLlonal lans are under l8uA( lnsurance 8egulaLory And
uevelopmenL AuLhorlLy)Jhen l conducL Lhe survey respondenLs
Lold me LhaL lf Lhey go wlLh uLl alLhough Lhey should be more
aware of Lhe markeL buL Lhey need noL Lo worry because fund
managers manages Lhe money and money can be shlfLed
(swlLched) Lo safer funds
W uLl ls more LransparenL Lhan 1radlLlonal lans 1here ls no doubL
abouL Lhe reLurns ln uLl due Lo proper Lransparency buL
1radlLlonal lans have no Lransparency CusLomers came Lo know
abouL Lhelr LransacLlons only aL Lhe end
8|b||ography
8kS A81lCLLS
W S 8alachandran l8uA lC33 LllL lnSu8AnCL
W rlnclple of llfe lnsurance
W !ournals
W 8rochure
JebslLes
W hLLp//wwwba[a[alllanzllfecoln/caLegorydeLallasp?ld1
W hLLp//wwwba[a[alllanzllfecoln/whyba[a[alllanzasp
W hLLp//wwwba[a[alllanzllfecoln/channelparLnersasp
W hLLp//wwwba[a[alllanzllfecoln/caLegorydeLallasp?ld4
;uLS1lnnAl8L
W 1 In wh|ch |ncome group do you fa||?
W 8elow 30000 30000 Lo 1 00000
W 1 00000 Lo 2 00000 Above 2 00000
W 2 Wh|ch part of your |ncome you put |n sav|ng?
W 8ellow 10 1020
W 2030 3040
W 3 Are you aware of ||fe |nsurance?
W ?es no
W 4 Do you have any |nsurance po||cy?
W ?es no can'L say
W SInsurance |s the on|y way to safeguard aga|nst the unpred|ctab|e r|sks of the
future?
W
W lghly ulssaLlsfled neuLral saLlsfled lghly
W ulssaLlsfled saLlsfled
W 6 Insurance |s a better too| for |nvestment purpose or for ||fe cover and tax sav|ng
W
W SLrongly ulsagreed neuLral Agreed SLrongly
W ulsagreed Agreed
W 7 nave you ever heard about 8a[a[ A|||anz?
W ?es no
W 8 nave you bought any 8a[a[ A|||anz product?
W ?es no Can'L say
W 9 Do you know what un|t ||nk |nsurance p|an are
W ?es no
W If yes than accord|ng to you wh|ch |s better?
W new unlL galn
W new unlL galn plus
W ?oung care
W ?oung care plus
W new famlly galn
W 10Are you aware of trad|t|ona| p|ans?
W ?es no
W If yes than accord|ng to you wh|ch |s better?
W lnvesL galn
W Llfe Llme care
W Super saver
W Cash galn
W Chlld galn
W Save care economy(sp)
W 11Accord|ng to you what shou|d be the tenure of |nvestment?
W 3years 3 Lo 3 years More Lhan 3 years
W
W 12 now do you come to know about ULI and 1rad|t|ona| |ans?
W 1hrough adverLlsemenL 1hrough relaLlves/frlends
W lf oLher Lhan speclfy
W 13 ULI's |s better than trad|t|ona| p|ans of 8a[a[ A|||anz
W
W SLrongly ulsagreed neuLral Agreed SLrongly
W ulsagreed Agreed
1hank ?ou