JAMIA MILLIA ISLAMIA

PROJECT TITLE : “A Comprehensive Study of the Indian Life

Insurance Sector Focusing on Financial Analysis, Policy
Reforms, and Consumer Insights through Primary Research”

Submi3ed By
Priyanka Kumari
MBA(Full Time)
Jamia Millia Islamia, New Delhi

Submi3ed To
Agile Capital Services

Date of Submission: 25th July 2025

Under the Guidance of

Mr. Chinmay Tiwari

(Channel Head)
 ACKNOWLEDGEMENT
I would like to express my heartfelt gratitude to Agile Capital Services for providing me the
opportunity to undertake my Summer Internship and gain valuable insights into the life insurance
industry. It has been a great learning experience that has significantly enriched my practical
knowledge and professional skills.

I would especially like to thank Mr. Chinmay Tiwari (Channel Head) for his constant guidance,
support, and supervision throughout the internship. His mentorship played a crucial role in helping me
understand the nuances of insurance product marketing and customer behavior analysis.

I am also sincerely thankful to the entire team at Agile Capital Services for their warm welcome,
continuous encouragement, and willingness to share their expertise, which made my internship
journey both smooth and enlightening.

I extend my gratitude to Jamia Millia Islamia and the Department of Management Studies for
giving me this platform to engage in real-time industry exposure. I would also like to thank my faculty
guide for academic support and constructive feedback during the course of this project.

Lastly, I would like to thank my family and friends for their motivation and support throughout this
learning process.

Priyanka Kumari
MBA (Full Time)
Jamia Millia Islamia
ExecuHve Summary
This report presents a comprehensive study of India’s life insurance sector, structured into
three key segments.

The first part offers a comparative fundamental and ratio analysis of IndiaFirst Life
Insurance and HDFC Life Insurance. Key financial indicators such as premium income,
solvency ratios, profitability, and return on equity are used to evaluate and contrast their
performance.

The second part highlights significant policy changes and regulatory reforms in the Indian
insurance industry over the past three years. These include updated IRDAI guidelines, digital
transformation initiatives, and customer-centric measures aimed at increasing transparency,
innovation, and accessibility.

The third and most crucial section is a primary market research study, conducted through a
structured questionnaire and analyzed using statistical tools like SPSS. The research
explores consumer preferences, awareness levels, satisfaction, and trust regarding life
insurance offerings. Key findings indicate that consumers strongly prefer low premiums and
well-reputed companies, with LIC and SBI Life emerging as the most trusted brands.
Statistical tests such as Correlation and ANOVA confirmed significant relationships between
policy feature preferences and demographic factors.

The report concludes with strategic recommendations for insurers and also outlines the
limitations of the study, such as the sample size and geographic coverage.
 IntroducHon
Life insurance has become an important part of financial planning in today’s world. As more
people begin to think about long-term financial security for their families, the demand for life
insurance products in India has grown. Over the years, the sector has seen many changes,
including the entry of private players, digital adoption, and new customer-friendly rules
introduced by the IRDAI (Insurance Regulatory and Development Authority of India).

This project is an attempt to study the Indian life insurance sector in a detailed and practical
manner. The study is divided into three parts. The first part covers a comparative financial
analysis of IndiaFirst Life Insurance and HDFC Life Insurance based on ratios and
performance indicators. The second part discusses the recent policy changes and reforms
that have impacted the insurance industry in the last three years. The third part is based on
primary market research, where responses were collected through a questionnaire to
understand customer preferences, awareness, and satisfaction levels.

The aim of the project is not just to study company performance, but also to get a clear
picture of how customers today view life insurance. By combining financial data and
customer insights, this report provides a better understanding of what drives the life
insurance market in India.
FINANCE MODULE
PART - 1
Fundamental and Ratio analysis of IFL and HDFC Life Insurance or SBI
Life Insurance.
Fundamental and ratio analysis help us understand how strong and healthy a company is
financially. These tools are useful for investors, as they show whether a company's stock is
priced too high, too low, or just right. By comparing different companies in the same industry,
we can see which ones are doing better or worse.

Banks and lenders use these analyses to decide if they should give loans to a company and to
check how risky it might be. Even companies themselves use this analysis to make future
plans, set goals, and improve their performance.

Regulators and stakeholders also benefit because these tools give a clear picture of the
company's finances and help ensure the company follows rules properly. Overall, fundamental
and ratio analysis give a complete view of a company’s performance, help catch problems
early, and support smart planning for the future.

This report presents a clear analysis of IndiaFirst Life Insurance (IFL) and HDFC Life Insurance
using their financial data from 2024. It includes both fundamental analysis and ratio analysis
to evaluate how financially strong and well-performing these companies are. This kind of
analysis is important for investors, stakeholders, and analysts as it helps them make smart
and informed decisions.

Introduction of Insurance

India’s Insurance industry is one of the premium sectors experiencing upward growth. This
upward growth of the insurance industry can be attributed to growing incomes and increasing
awareness in the industry. India is the fifth largest life insurance market in the world's
emerging insurance markets, growing at a rate of 32-34% each year. In recent years, the
industry has been experiencing fierce competition among its peers which has led to new and
innovative products within the industry.
Over the past nine years, the insurance sector has attracted substantial foreign direct
investment amounting to nearly Rs. 54,000 crore (US$ 6.5 billion), driven by the government's
progressive relaxation of overseas capital flow regulations.

The insurance industry of India has 57 insurance companies - 24 are in the life insurance
business, while 34 are non-life insurers. Among the life insurers, Life Insurance Corporation
(LIC) is the sole public sector company. There are six public sector insurers in the non-life
insurance segment. In addition to these, there is a sole national re-insurer, namely General
Insurance Corporation of India (GIC Re).

Other stakeholders in the Indian Insurance market include agents (individual and corporate),
brokers, surveyors and third-party administrators servicing health insurance claims.
The insurance industry has undergone numerous transformations in terms of new
developments, modified regulations, proposals for amendments and growth in FY22. These
developments have opened new avenues of growth for the industry while ensuring that
insurers stay relevant with changing times and the latest digital disruptions.

The Insurance Regulatory and Development Authority India (IRDA) is vigilant and progressive
and is determined to achieve its mission of ‘Insurance for all by 2047’, with aggressive plans
to address the industry’s challenges. The growth of the insurance market is being supported
by important government initiatives, strong democratic factors, conducive regulatory
environment, increased partnerships, product innovations, and vibrant distribution channels.

Insurance Industry was largely dominated by offline channels like corporate agents, offline
brokers or banks. Today, rapid digitization, product innovation and progressive regulation
policies have made it possible for consumers to buy insurance through multiple distribution
channels with the click of a button. The instability of the covid-19 pandemic highlighted the
necessity for consumers to invest in products that would increase financial security, one of
them being life insurance.
The industry is broadly divided into two segments: life insurance and general insurance.

Life Insurance: Life insurance products offer financial protection to individuals and their
families in the event of death, disability, or retirement. Major players in this segment include
LIC (Life Insurance Corporation of India), HDFC Life, ICICI Prudential, and SBI Life.
General Insurance: General insurance products cover non-life risks such as health, motor,
property, and travel. Prominent companies in this sector include ICICI Lombard, Bajaj
Allianz, New India Assurance, and United India Insurance.

About the Company :

IFL (Indian First Life Insurance)

IndiaFirst Life Insurance – A Trusted and Growing Company

IndiaFirst Life Insurance Company Ltd is one of the fastest-growing private life insurance
companies in India. It is based in Mumbai and has a paid-up capital of ₹754.37 crore. What
makes IndiaFirst different is its focus on offering simple and affordable insurance plans that
are easy for customers to understand.

The company started in November 2009 and was the 22nd private life insurer to enter the
Indian market. It is a subsidiary of Bank of Baroda.

As of 31 March 2025:

• IndiaFirst collected ₹1,425 crore from new individual policy sales.

• Its total premium income was ₹7,218 crore.
• It has over 1.6 crore customers in more than 90% of India’s pin codes (which means it
reaches nearly every part of the country).
• The company has about 4,600 employees working across India.
• It operates through a large network of 22,000+ bank branches, 115 third-party distributors,
corporate agents, and 1,880 insurance agents.

Shareholding and Ownership

Initially, the company was owned by Bank of Baroda, Andhra Bank, and Legal & General
(Middle East).

• In 2019, Legal & General sold its stake to Carmel Point Investments, a company backed by
the Warburg Pincus Group.
In 2020, Andhra Bank merged into Union Bank of India.

The current ownership of IndiaFirst Life is:

• Bank of Baroda – 65%

• Union Bank of India – 9%
• Carmel Point Investments – 26%

Different Types of Plans Offered by IndiaFirst Life Insurance

The different types of plans that are offered by India First Life Insurance are mentioned below in
details Or IndiaFirst Life Insurance – Product Portfolio
Fundamental Analysis of India First Life Insurance Company (2023-2024)

1 . Revenue:
• Gross Written Premium (GWP):
Total GWP for the fiscal year 2024 was ₹6,974 crores, reflecting a 15% year-on-year growth.

• New Business Premium:

The company generated ₹2,975 crores from new business, registering a 9% YoY increase.

• Renewal Premium:
Renewal premium collection stood at ₹3,999 crores, showing a strong 28% growth from the
previous year.

• IndiaFirst Life Insurance has recorded consistent growth in its revenue over the years.
This growth is mainly driven by an increase in premium collection from both new and
existing customers, supported by a wide product range and strong distribution channels.

2 . Net Profit:
• Profit After Tax (PAT):
The company reported a net profit of ₹112 crores in FY2024, reflecting a 47% increase year-
on-year.

• This is the highest profit achieved by the company since its inception.
Despite market challenges, IndiaFirst Life has maintained profitability through efficient
operations, better cost control, and increasing renewals.

• Market Position:
As of FY2024, the company secured the 11th rank among private sector life insurers,
moving up one position compared to the previous year.

3 . Cost Structure

a. Operating Expenses:
• Total operating expenses for FY2024: ₹850.35 crores

• The major components of operating expenses include:

o IT expenses: ₹70.59 crores

o Advertisement & Publicity: ₹168.65 crores
o Training: ₹51.45 crores

• IndiaFirst Life has seen a slight rise in operating expenses compared to FY2023.
The company continues to focus on efficient cost management to support overall
profitability.

b. Claims and Benefits:

• Total claims and benefits paid in FY2024: ₹3,275.94 crores
• Breakdown includes:

o Death Claims: ₹72.57 crores

o Maturity Benefits: ₹27.83 crores

o Surrenders/Withdrawals: ₹200.32 crores

• The company has handled claims effectively, ensuring timely settlements and maintaining
customer trust.

4. Investment Performance

Investment Income:
• The company earned strong investment income in FY2024 through various sources such as
interest, dividends, and capital gains.

• Sample from the Value Fund includes:

o Interest Income: ₹6.29 lakhs

o Dividend Income: ₹28.97 lakhs

o Profit on Sale of Investments: ₹434.35 lakhs

o Unrealized Gains: ₹197.86 lakhs

• These earnings significantly contributed to the company’s revenue and reflect sound fund
management.

Investment Portfolio Composition:

• The investment portfolio includes a mix of large- and mid-cap equity funds and high-
performing debt funds.

• Debt funds have outperformed benchmarks on gross return basis.

• This diversified strategy helps in reducing risk and ensuring steady and stable returns over
time.

5. Growth Prospects

Market Expansion:
• IndiaFirst Life is benefiting from the rising penetration of life insurance in India, which was
around 3% in FY23, still below the global average.
• The company is well-positioned to tap into this growth potential through its widespread
reach and expanding customer base.

Product Innovation:
• IndiaFirst Life has introduced new and innovative insurance products to meet customer
needs.

o Launch of “Guarantee of Life Dreams Plan” – a non-participating savings plan.

o Relaunch of the “Guaranteed Single Premium Plan” with 7x maturity benefit.
o Introduction of new annuity and pension products for long-term financial planning.

Digital Transformation:

• The company is investing in advanced digital tools to improve service quality and
efficiency.

o Use of AI/ML for fraud detection

o Instant policy issuance
o Digital onboarding via eKYC and Digi Locker
o WhatsApp chatbot (IVA) for self-service
o Multiple online customer service portals

6. Financial Stability and Solvency

Solvency Ratio:
• Solvency ratio for FY2024: 201%

• IndiaFirst Life maintains a strong solvency position, well above the regulatory minimum of
150%.
This shows the company’s ability to meet its future financial obligations and remain stable
under stress.

Assets Under Management (AUM):

• AUM for FY2024: ₹27,073 crores

• This represents a 25% year-on-year growth, backed by solid premium inflow and efficient
asset allocation.

Embedded Value (EV):

• Embedded Value as of FY2024: ₹3,835 crores

• EV grew by 25%, reflecting the company’s improved profitability, value of future business,
and overall financial strength.

7. Risk Management

Risk Mitigation:

• IndiaFirst Life uses advanced risk management strategies to handle financial risks related to
guaranteed return products.

• This includes the use of interest rate derivatives such as:

o Forward Rate Agreements (FRAs)

o Interest Rate Swaps (IRS)

• These tools help in controlling interest rate fluctuations and protecting returns promised to
policyholders.
Reinsurance:
• The company uses reinsurance arrangements to reduce its exposure to large claim risks.

• In FY2024, ₹75.79 crores (₹757.9 million) in death claims were ceded to reinsurers.

• This helps in spreading risk and ensuring financial safety during high-claim periods.

Ratio Analysis of India First Life Insurance Company(2023-2024)

1. Liquidity Ratios

Current Ratio

This measures the company's ability to pay off its short-term liabilities with its short-term assets.

• Formula: Current Assets / Current Liabilities

• Calculation:
Current Assets (FY2024): ₹13,203,279 thousand
Current Liabilities (FY2024): ₹9,447,200 thousand
Current Ratio = 13,203,279 / 9,447,200 ≈ 1.40

A current ratio of 1.40 indicates that IndiaFirst Life has enough short-term assets to cover its
liabilities. This is slightly above the typical benchmark of 1.2 for insurers, reflecting a stable
liquidity position.

Quick Ratio:

This measures the company’s ability to pay off short-term liabilities without relying on inventory.

• Formula: (Current Assets - Inventories) / Current Liabilities

• Calculation:
Quick Assets = Cash & Equivalents (₹3,460,448 thousand)
Quick Ratio = 3,460,448 / 9,447,200 ≈ 0.37

A quick ratio of 0.37 suggests modest liquidity, which is common in life insurance companies
because a large part of their assets are invested long-term. However, regular premium
inflows help manage this risk effectively.

2 . Profitability Ratios

Net Profit Margin:

This measures how much profit the company earns for every rupee of total income.

• Formula: Net Profit / Total Income

• Calculation:
▪ Net Profit (FY2024): ₹1,123,079 thousand
▪ Total Income (FY2024): ₹99,808,271 thousand
▪ Net Profit Margin = 1,123,079 / 99,808,271 ≈ 0.0113 or 1.13%

The net profit margin is 1.13%, which is in line with the company's financial disclosures.

Return on Equity (ROE):

This measures how efficiently the company generates profit from shareholders' equity.
• Formula: Net Profit / Shareholders’ Equity
• Calculation:
Net Profit (FY2024): ₹1,123,079 thousand
Shareholders’ Equity: ₹11,813,017 thousand
ROE = 1,123,079 / 11,813,017 ≈ 0.095 or 9.5%

A 9.5% ROE reflects a strong return for a life insurer, exceeding the typical industry
range of 5–8%.

Return on Assets (ROA):

This shows how much profit the company generates from its total assets.

• Formula: Net Profit / Total Assets

• Calculation:
Net Profit (FY2024): ₹1,123,079 thousand
Total Assets: ₹274,511,363 thousand
ROA = 1,123,079 / 274,511,363 ≈ 0.0041 or 0.41%

ROA is 0.41%, which is typical for life insurance companies, since most of their assets
are linked to policyholder liabilities.

3. Efficiency Ratios

Asset Turnover Ratio

Analysis: A turnover ratio of 0.36 indicates that revenue generation per unit of assets is
modest.

This is typical in the capital-intensive insurance sector, where a large asset base is
required to support long-term obligations.

Expense Ratio

Analysis: An expense ratio of 12.4% reflects efficient cost management.

For life insurers, a ratio below 15% is generally considered strong and sustainable.

HDFC Life Insurance

HDFC Life Insurance Company Limited was incorporated in August 2000 and officially registered in
October 2000 as a joint venture between HDFC Ltd. and Standard Life Aberdeen. Over the years,
the company grew to become one of India’s leading private life insurers.

Following the merger of HDFC Ltd. with HDFC Bank in July 2023, HDFC Bank became the sole
promoter of HDFC Life.
As a result, the “HDFC” brand name now officially belongs to HDFC Bank, further strengthening
the group's unified identity across the financial services ecosystem.
Business Model of HDFC Life Insurance
HDFC Life operates on a long-term protection and savings model, where individuals and groups
purchase life insurance policies by paying regular premiums. In return, they receive financial
protection and future benefits such as maturity payouts, death benefits, or pension income.

The company collects premiums from policyholders and strategically invests these funds in a mix
of equity and debt instruments. This approach helps to:

• Generate stable and long-term returns

• Ensure financial sustainability
• Provide guaranteed or market-linked benefits to policyholders

By balancing risk and return, HDFC Life ensures both business profitability and policyholder value
over time.

Product Portfolio

1. Protection Plans
These are focused on financial protection in case of death, disability, or critical illness.

Key Products:

• HDFC Life Group Term Insurance

HDFC Life Click 2 Protect series (Ultimate, Elite Plus, Life, Super)
• PM Jeevan Jyoti Bima Yojana
• Credit Protect Plus Insurance
• Accidental Disability & Death Riders
• Micro Insurance Products

2. ULIP (Unit Linked Insurance Plans)

These plans combine investment and insurance, allowing customers to invest in equity or debt
markets.

Key ULIP Plans:

• HDFC Life Smart Protect Plan

• HDFC Life Sampoorna Nivesh Plus
• HDFC Life Click 2 Wealth
• HDFC Life Click 2 Invest

3. Savings Plans
These plans help in wealth accumulation and guaranteed returns over time.

Popular Savings Products:

• HDFC Life Saral Jeevan / Sampoorna Jeevan

• HDFC Life Sanchay Series (Par Advantage, Plus, Legacy)
• HDFC Life Smart Income Plan
• Click 2 Achieve Series
• Guaranteed Savings & Income Plans

4. Annuity Plans

Meant for retirees, these plans offer regular income (pension) for life.
Main Annuity Options:

• HDFC Life Systematic Retirement Plan

• Pension Guaranteed Plan
• Smart Pension Plus
• Systematic Pension Plan

5. Pension Plans

Designed for long-term retirement planning, especially for group/corporate needs.

Examples Include:

• Group Traditional Secure / Unit Linked Plans

• Gratuity Product
• New Group Pension Plans
• Sanchay Aajeevan Advantage Plan

6. Health Plans

Cater to health-related risks, especially critical illnesses and hospitalization.

Offered Plans:

• HDFC Life Group Health Shield

• Critical Illness Plus Rider (Group & Individual)

Fundamental Analysis of HDFC Life Insurance Company (2023-2024)

1. Revenue:
• Total income for the fiscal year 2024–25 was ₹96,969 crores (₹9,696,966 lakh).
• HDFC Life has continued on a strong growth path, supported by its trusted brand, diverse product
offerings, and a wide distribution network across the country.

2. Net Profit:

• Net profit for FY 2024–25 stood at ₹1,802 crores (₹180,212 lakh).

• The company has demonstrated stable and improving profitability, despite macroeconomic
challenges, reflecting strong cost control and a robust business model.

3. Net Profit Margin:

A net margin of 1.86% reflects the company’s ability to efficiently convert revenue into profit while
maintaining service quality and financial strength.

4. Cost Structure

Operating Expenses:
• Total operating expenses for FY 2024–25 stood at ₹6,248 crores, reflecting a 10% year-on-
year decline.

• This reduction highlights the company’s continued focus on expense optimization,

especially across administrative, commission, and operational costs, to support
profitability.

Claims and Benefits:

• Total claims and benefits paid (net) amounted to ₹36,398 crores (₹3,639,835 lakh).

• HDFC Life has shown effective claims management, ensuring timely settlements and
maintaining policyholder trust and satisfaction.

5. Investment Performance

Investment Income:

• Total investment income for FY 2024–25 was ₹27,070 crores, including earnings from both
policyholder and shareholder accounts.

• HDFC Life’s investment strategy has consistently delivered strong and stable returns,
contributing significantly to its overall financial performance.

Investment Portfolio Composition:

• The portfolio is highly conservative and secure, with 98% of assets invested in Sovereign or
AAA-rated securities.

• It maintains a well-diversified mix of debt and equity instruments, ensuring:

o Capital preservation
o Steady returns
o Risk minimization

This balanced investment approach aligns with regulatory norms and supports long-
term obligations to policyholders.

6. Growth Prospects

Market Expansion:
• HDFC Life reported a strong persistency ratio of 86.9% (13th month basis), reflecting robust
policy renewals and sustained customer trust.

• Continued expansion through bancassurance, digital platforms, and agency channels has
helped deepen market penetration across India.

Product Innovation:
• The company is focusing on launching new products, especially in group insurance and
alternate distribution channels.

• Innovation is aligned with emerging customer needs, enhancing the product mix and
portfolio value.

Digital Transformation:
• Significant investments of ₹335 crore in IT were made during the year.
• Focus areas include:

o Cloud computing
o Mobile app development
o Digital onboarding and service platforms

These initiatives are aimed at improving customer experience and streamlining internal processes.

7. Financial Stability and Solvency

Solvency Ratio:
• HDFC Life's solvency ratio is 194%, well above the IRDAI minimum requirement of 150%.

• This reflects the company’s strong financial health and its ability to meet long-term
commitments.

Total Assets:

• Total assets stood at ₹3,39,534 crore, up from ₹2,93,729 crore last year.

• The increase in asset base is supported by steady premium collections and sound investment
strategies.

8. Management and Governance

Leadership:

• HDFC Life is managed by a skilled team with solid experience in insurance and finance.

• The team focuses on growth, customer service, and smooth operations.

Corporate Governance:
• The company follows strict IRDAI guidelines and has a strong board structure.

• Independent directors oversee key areas like risk and audit.

• HDFC Life ensures transparency, ethics, and accountability, helping build trust with stakeholders.

Net Worth:

• The company’s net worth is ₹16,126 crore, indicating a strong financial base.

9. Risk Management

Risk Mitigation:
• HDFC Life follows a strong risk management system to handle various risks like:
o Market risk
o Credit risk
o Operational risk
o Insurance risk
• 98% of its fixed-income investments are in AAA or Sovereign-rated securities, reducing credit
risk.

Reinsurance:
• The company recovered ₹1,174 crore through reinsurance to offset claim costs.
• Reinsurance helps in spreading risk and protecting the company from major financial losses.

Ratio Analysis of HDFC Life Insurance Company (2023-2024)

1. Liquidity Ratios

Current Ratio:
• Current Assets: ₹9,872 crore
• Current Liabilities: ₹9,599 crore
• Current Ratio: 9,872 ÷ 9,599 = 1.03

Interpretation:
A current ratio of 1.03 indicates that HDFC Life has just enough short-term assets to cover its
short-term liabilities. This reflects adequate liquidity, though only slightly above the standard
benchmark of 1.

Quick Ratio:

• Since inventories are typically negligible for insurance companies, the quick ratio is considered
the same as the current ratio.
• Quick Ratio = 1.03

Conclusion:
The quick ratio further confirms the company's sound short-term liquidity position, showing its
ability to meet immediate obligations without relying on inventory liquidation.

2. Profitability Ratios

Return on Equity (ROE):

• Net Profit: ₹1,802 crore
• Average Net Worth: ₹15,389 crore
• ROE = 1,802 ÷ 15,389 = 11.7%

Interpretation:
An ROE of 11.7% indicates strong profitability in relation to shareholders' equity. It reflects
efficient capital utilization by HDFC Life.

Return on Assets (ROA):

• Total Assets: ₹3,39,534 crore
• ROA = 1,802 ÷ 3,39,534 = 0.53%

Interpretation:
Though ROA appears low, it is normal for insurance companies, where a large portion of assets
are policyholder liabilities.

Net Profit Margin:

• Net Margin = 1.86%

Interpretation:
The company earns ₹1.86 profit for every ₹100 of revenue. This shows moderate profitability
considering the highly regulated and capital-intensive insurance sector.

3. Efficiency Ratios

Asset Turnover Ratio:

• Formula: Revenue ÷ Total Assets

• Calculation: 96,969 ÷ 3,39,534 = 0.29

Interpretation:
An asset turnover of 0.29 indicates moderate revenue generation per unit of asset base, which is
typical for capital-intensive sectors like insurance.

Expense Ratio:

• Formula: Operating Expenses ÷ Net Premium

• Calculation: 6,248 ÷ 71,045 = 8.8%

Interpretation:
A low expense ratio of 8.8% demonstrates strong cost control, enhancing the company's
operational efficiency and profitability.

4. Solvency Ratios

Debt-to-Equity Ratio: 0.18

Interpretation:
A low debt-to-equity ratio reflects a conservative financial structure with limited reliance on
external borrowing.

Solvency Ratio: 194% (vs 150% minimum).

Interpretation:
A solvency ratio of 194% provides a comfortable capital buffer, showing the company is well-
positioned to meet long-term obligations and absorb potential shocks.
 Part – 2

Choose one Insurance sector in India (Important policy changes and

amendments in the last three years).

1) Health Insurance Plans for All Age Groups

The IRDAI has removed the entry age limit reference for insurers to offer health insurance plans
in India. Earlier, insurance companies had to typically offer health insurance with an entry age of
at least up to 65 years. However, the new guidelines eliminate this age reference, mandating
insurers to provide health policies for people of all age groups. This guideline is especially helpful
for senior citizens, who have the freedom to buy a comprehensive mediclaim policy whenever
they want.

2) Pre-existing Disease (PED) Waiting Period Reduced to 3 years from 4 years

As per IRDAI, the maximum waiting period for covering pre-existing diseases in health insurance
has been reduced from 4 years to 3 years. This will enable policyholders to claim the treatment
cost of pre-existing diseases, such as diabetes, hypertension, etc., after serving a maximum
waiting period of 3 years. Moreover, it will prohibit insurance companies from rejecting PED
claims after 3 years.

3) Specific Disease Waiting Period Reduced to 3 years

The IRDAI has also reduced the maximum waiting period for specific diseases/ procedures, like
joint replacement surgery, under health plans from 4 years to 3 years. This will enable people to
file health insurance claims for listed diseases/ procedures after waiting for a maximum of 3
years.

4) Issue Policies to People with Severe Medical Conditions

The insurance regulator has also prohibited health insurance companies from refusing health
policies to people with severe pre-existing diseases, such as heart disease, cancer, renal failure
and AIDS. This will ensure a more inclusive medical insurance ecosystem and increase its
penetration in India.

5) No Sub-Limits on AYUSH Treatment

IRDAI has removed sub-limits on AYUSH treatments. With this guideline, policyholders will be
able to claim the cost of treatments availed through Ayurveda, Yoga, Naturopathy, Siddha, Unani
and Homeopathy systems of medicine up to the sum insured limit.

6) Customized Plans for Specialized Groups like Senior Citizens

The insurance regulator has asked insurers to design customized medical insurance products for
senior citizens, children, maternity, students and other groups. This will encourage insurers to
diversify their product portfolio and enable people from these specialized groups to choose the
best health insurance plan specific to their needs.

7) Create a Dedicated Support Channel for Senior Citizens

 The IRDAI has also asked insurers to formulate a specialized channel to handle the claims and
complaints of senior citizens. This will ensure a more responsive and tailored approach to meet
the requirements and settle the grievances of senior citizens.

8) Moratorium Period Reduced to 5 years

As per the latest IRDAI notification, the moratorium period in health insurance has also been cut
significantly from 8 years to 5 years. This prohibits insurance companies from rejecting claims
based on non-disclosure of pre-existing diseases or misinterpretation after 5 years of continuous
coverage unless it is a case of fraud.

9) No More Indemnity-based Policies

The IRDAI has directed insurers to issue only benefit-based policies to cover hospitalization
expenses and prohibited them from introducing indemnity-based policies. This will ensure that a
fixed sum is paid to policyholders upon the diagnosis of a covered disease.

10) Multiple Claims Across Various Insurers

The insurance regulator has also allowed people with benefit-based policies to file multiple
claims with several insurers. This will ensure more flexibility and wider options for policyholders
when diagnosed with a disease.

11) Cashless Everywhere

Earlier, if you were admitted to a non-network hospital, you could not avail of cashless claim
facility, and had to first pay from your own pocket and claim reimbursement only after being
discharged. Now, you can make cashless claims regardless of the hospital you are admitted to.

12) 4.3-hour cashless claim clearance

Insurers will have to clear a claim within three hours of receiving it from the hospital during
discharge. Irdai has also given a window of one hour for clearing cashless claim requests at the
time of admission. This could cut down your delay at the time of hospital admission and
discharge.

13) Standardization of Health Insurance Policies:

Introduction of standardized health insurance products like "Arogya Sanjeevani Policy," which
ensures basic coverage is accessible and simplifies the comparison of policies across insurers.

14) Coverage for Modern Treatments:

Mandating coverage for advanced and modern treatments such as robotic surgeries, oral
chemotherapy, and stem cell therapy, which were previously excluded from many policies.

15) Inclusion of Telemedicine:

Allowing coverage for telemedicine consultations, which became crucial during the COVID-19
pandemic, ensuring policyholders can access medical advice remotely.

16) Portability and Renewability Made Easy

IRDAI has made it easier for people to switch health insurance companies without losing their
benefits like waiting periods. It also ensures that your policy can be renewed for life, so you’re
always protected—no matter your age.

17) No Rejection at Renewal

Your health policy can’t be rejected when renewing, unless there’s a case of fraud. This makes your
coverage more safe and reliable.

18) Limit on Room Rent

IRDAI has set a standard limit on hospital room rent. This helps avoid extra charges and saves you
from unexpected expenses during treatment.

19) Mental Health Coverage:

Inclusion of mental health treatments under health insurance, in compliance with the Mental
Healthcare Act, 2017.
Part – 3

Market research on your Project title (primary research) with questionnaire,

come up with Findings, Conclusion, Suggestions and Limitations.

OBJECTIVES
To understand public perception, awareness, and preferences regarding life insurance policies
through a primary research survey.
To analyse the awareness level of people regarding different types of life insurance products.
To examine the perception of respondents about life insurance as an investment option.
To assess the satisfaction level of policyholders with their current life insurance providers.
To identify the key features and factors preferred by people while choosing a life insurance policy.
To evaluate the influence of demographic factors such as age, occupation, and income on life
insurance holding.
To find out the most trusted insurance companies among customers.
To analyze the relationship between occupation and investment decision using statistical tools like
SPSS and chi-square test.

PURPOSE OF THE STUDY

The primary purpose of this study is to understand the behavior, awareness, preferences, and
satisfaction of customers regarding life insurance in India. The research aims to identify gaps in
awareness, highlight key factors influencing purchase decisions, and suggest improvements for
insurance providers. It also focuses on customer perception and how insurers can improve trust,
accessibility, and innovation to increase penetration in the life insurance market.

RESEARCH METHODOLOGY
The study was conducted using a quantitative research approach. A structured questionnaire was
used to collect primary data from 101 respondents. The sampling method used was convenience
sampling, targeting individuals from various age groups and occupations. Data was collected
through Google Forms and analyzed using charts and percentage calculations to understand
respondents’ awareness, perception, and preferences regarding life insurance.

STATISTICAL TOOLS AND TECHNIQUES

To measure various phenomena and analyze the collected data effectively, a range of statistical
tools were employed. The analysis involved both descriptive and inferential statistics to extract
meaningful insights from the primary data.
The following techniques were used:
• Descriptive Statistics (frequencies, percentages, charts)

• Correlation Analysis (Spearman method using SPSS)

• ANOVA (Analysis of Variance) to assess relationships between variables

The data was analyzed using SPSS software for accurate statistical testing and Microsoft Excel for
graphical representation and basic tabulation.
FINDINGS FROM THE STUDY
1. Demographics:
Majority of respondents belong to the 21 to 30 years age group. Most are students,
followed by private employees and business owners.
2. Insurance Holding:
About 50.5% of respondents hold a life insurance policy, while 49.5% do not,
showing a near-even split.
3. Perception on Investment:
Around 82% believe life insurance is a good investment option, indicating positive
perception.
4. Retirement Belief:
While some respondents believe life insurance is only useful post-retirement, a
majority either disagree or remain neutral, reflecting mixed understanding.
5. Product Awareness:
Only 18.8% are very aware of different life insurance products. Over 53% are
somewhat aware, and 27.7% are not aware, showing a need for better education.
6. Satisfaction Levels:
Over 50% are neutral with their current provider. Only a small percentage reported
being very satisfied, indicating low engagement or unmet expectations.
7. Most Trusted Company:
LIC is the most trusted insurer, followed by HDFC Life and SBI Life.

8. Feature Preferences (Ranked): Company’s Reputation Low Premium Money Back

Guarantee
Larger Risk Coverage Easy Access to Agents

9. Preferred Company Traits:

Majority prefer a Trusted Brand (40.6%), followed by Friendly Service and
Affordable Plans.

DATA ANALYSIS
1. Gender of the Respondents
Interpretation:
The respondents for the survey included 64 male respondents, accounting for 63.40% of the total.
There were 36 female respondents, making up 35.60%. Additionally, 1 respondent (1%) identified
as Other. This indicates that the majority of participants were male, followed by a significant
proportion of female respondents, with minimal representation from other gender identities.

2. Age Group

Interpretation
The graph represents the age distribution of the respondents. The majority of the respondents, i.e.,
86 individuals (85.10%), fall in the 21 to 30 years age group, followed by 11 respondents (10.90%)
in the 31 to 40 years category. The 41 to 50 years group has 2 respondents (2%), while both the 51
to 60 years and 61 years and above categories have 1 respondent each (1%). This shows that the
survey was predominantly taken by young adults, with very few participants from older age groups.
3. Occupa8on

Interpretation:
The table displays the occupational background of the respondents. The majority of the
respondents, 48 individuals (48%), are students, indicating a young and academically active
segment. This is followed by 21 respondents (20.8%) from the Private/Business sector and 19
respondents (18.8%) who identified as professionals. Additionally, 9 respondents (8.9%) are
employed in government services, while 4 respondents (4%) fall under the ‘Others’ category. This
shows that a significant portion of the data was collected from students and working individuals in
the private and professional sectors.

4. Monthly Income
Interpretation:
The table represents the monthly income distribution of the respondents. The majority of the
respondents, i.e. 53 individuals (52.5%), fall within the income bracket of ₹0 – ₹20,000, indicating a
large segment with lower income levels. This is followed by 22 respondents (21.8%) earning
between ₹40,001 – ₹60,000, and 15 respondents (14.9%) earning between ₹20,001 – ₹40,000. A
smaller portion of the respondents, 7 individuals (7%), earn above ₹80,000, while only 4
respondents (4%) fall within the ₹60,001 – ₹80,000 bracket. This shows that a significant majority
earn ₹60,000 or less per month.

5. Number of people holding Life Insurance

Interpreta*on:
Out of the total 101 respondents, 51 individuals (50.50%) reported that they hold an insurance policy, while
50 respondents (49.50%) stated that they do not hold any insurance policy. This indicates that the sample is
almost equally divided in terms of insurance ownership, showing a balanced perspec*ve for further
analysis.
6. Life Insurance as a good investment op8on

Interpretation :
The data reveals that a significant majority of the respondents — 83 out of 101 (i.e., 82.2%) —
answered "Yes" to the given question, indicating strong agreement or participation. On the other
hand, only 18 respondents (i.e., 17.8%) answered "No". This suggests a high level of awareness,
acceptance, or involvement among the respondents with regard to the subject being asked in the
survey.

7. Believe Life Insurance is only Useful aGer re8rement

Interpretation:
A majority of respondents disagree (40.6%) or strongly disagree (10.9%) with the statement that
life insurance is only useful after retirement. This indicates that more than half (51.5%) believe life
insurance has value even before retirement, such as for income protection or family security. Only
20.8% (14.9% + 5.9%) agreed with the statement, showing that the idea of life insurance being
limited to retirement is not widely accepted among respondents. The neutral group (27.7%) reflects
some uncertainty or lack of knowledge.
8. How aware are you about different types of Life Insurance Products (e.g.,
term,ULIP,edowment) ?

Interpretation:
Most respondents are at least somewhat familiar with the different types of life insurance
products. A majority (53.5%) are somewhat aware, showing a basic understanding. 18.8% are very
aware, indicating a deeper knowledge. However, 27.7% are not aware, pointing to a significant gap
in awareness that may need to be addressed through education or financial literacy campaigns.

9. How would you rate your sa8sfac8on with your current Life Insurance Provider ?

Interpretation:
A majority (51.5%) of respondents feel neutral about their life insurance provider, indicating
neither strong satisfaction nor dissatisfaction. Only 39.6% (8.9% + 30.7%) are satisfied or
very satisfied, which is lower than expected and may indicate scope for improvement in
service quality or communication. A small percentage (approximately 9%) expressed
dissatisfaction.

10. Which Company do you trust the most for Life Insurance ?
Interpretation:
LIC (Life Insurance Corporation of India) is the most trusted company among respondents,
with 42.6% choosing it — showing the strong brand value and historical trust built by LIC.
HDFC Life (23.8%) and SBI Life (17.8%) are also relatively trusted private players. India First
Life holds a small share of trust (5.9%), indicating low brand awareness or customer base
among the surveyed. 9.9% chose “Other”, suggesting they trust alternate or niche insurers.

11. What are the features that you would prefer in a Life Insurance Policy ?

Interpretation
The majority of respondents (59) ranked Money Back Guarantee as the most preferred feature,
followed by Larger Risk Coverage with 49 respondents marking it second. Easy Access to Agents
was mostly ranked 4th, showing it is less important. Low Premium and Company’s Reputation were
the least preferred, ranked 5th by 47 and 52 respondents respectively. This indicates that
respondents value guaranteed returns and risk coverage over brand name or low cost.

12. What would you prefer in Insurance Company ?

Interpretation:
Most respondents (40.6%) prefer a Trusted Brand in an insurance company, followed by Friendly
Service and Responsiveness (27.7%) and Affordable Plans (22.8%). Accessibility was the least
preferred factor, chosen by only 8.9% of the respondents.

13. Number of people holding Insurance policies based on their Age

Interpretation:
From the graph, it is evident that the number of people holding an insurance policy is maximum in
the age group of 21 to 30 years, with 40 respondents having a policy, followed by the age group 31
to 40 years, where 9 respondents hold a policy.
The data shows that:
• In the 21 to 30 years group, 40 out of 85 respondents hold an insurance policy.
• In the 31 to 40 years group, 9 out of 11 respondents have a policy.
• From the 41 to 50 years group, only 1 out of 2 respondents hold a policy.
• In the 51 to 60 years category, 1 out of 1 respondent holds a policy.
• For the 61 years and above group, there is only one respondent, who does not have
any insurance policy.
This shows that younger individuals (21–30 years) are more actively holding insurance policies,
indicating rising awareness and preference for insurance in this demographic.
Using Research hypothesis
1. Research Ques*on:
“Is there a significant relationship between the life insurance policy features preferred
by respondents?”
• Null Hypothesis (H₀): There is no significant correlation between the different life
insurance features preferred by respondents.
• Alternative Hypothesis (H₁): There is a significant correlation between some life
insurance features preferred by respondents.

Interpretation
A Spearman correlation test was conducted to examine the relationships among five life insurance
policy features: Money Back Guarantee, Larger Risk Coverage, Easy Access to Agents, Low
Premium, and Company’s Reputation.
The results revealed several statistically significant negative correlations, indicating that
respondents who strongly preferred one feature also tended to prioritize another. For example:
• Money Back Guarantee and Company’s Reputation showed a strong negative
correlation (r = –0.559, p < 0.001), suggesting that those who value money-back
benefits also trust well-known insurance providers.
• Low Premium was moderately correlated with Larger Risk Coverage (r = –0.394, p <
0.001) and Company’s Reputation (r = –0.451, p < 0.001), showing that cost-
conscious individuals still consider brand reputation and coverage important.
 • A weaker correlation was found between Easy Access to Agents and Low Premium (r
= –0.275, p = 0.005), indicating some link between service access and affordability.

Based on these results, the null hypothesis is rejected, confirming that respondents' preferences
for policy features are interconnected and not independent.
2) Hypothesis:
• Null Hypothesis (H₀): There is no significant difference in preference for "Low
Premium" based on monthly income.
• Alternative Hypothesis (H₁): There is a significant difference in preference based on
income groups.

Interpretation:
• p-value (Sig.) = 0.783. This is greater than 0.05, So, the null hypothesis fails to be
rejected . There's no statistically significant difference in preference for Low
Premium across income groups.
The ANOVA test revealed no statistically significant difference in preference for “Low Premium”
across different income categories, F(4, 96) = 0.435, p = 0.783.
This means that individuals from various income groups do not differ significantly in how much
they prioritize low premiums when choosing a life insurance policy.

Calculations of Association between Occupations of Respondents & Life

Insurance Investment Decisions.
H0 : Occupation is not dependent on the customer life insurance investment decision.
Ha : Occupation is dependent on the customer life insurance investment decision.
We will do chi-square test to test the goodness of fit, to verify the distribution of observed data with
assumed theoretical distribution. Therefore it is a measure to study the divergence of actual and expected
frequencies; Karl Pearson’s has developed a method to test the difference between the theoretical
(hypothesis) & the observed value.
Interpretation :
Analysis : Here, P value is less than 0.05. Therefore, Accept Ha
Hence, we can conclude that Occupation is dependent on the customer life insurance investment
decision.

Calculations of Association between Gender of Respondents & Life

Insurance Investment Decisions.
Hypothesis :
H0 : Occupation is not dependent on the customer life insurance investment decision.
Ha : Occupation is dependent on the customer life insurance investment decision.
Interpretation :
Here, H0 is rejected and Ha is accepted.
Hence, we can conclude that there is dependency between Gender of the customer and Life
Insurance Investment Decision. So, Gender influences customer Life Insurance policy buying
decision.

RECOMMENDATIONS
1. In the current competitive insurance landscape, customer satisfaction and brand
trust are essential for survival. Private insurance companies need to focus on
enhancing service quality and creating more customer-centric plans to differentiate
themselves and build loyalty, much like LIC.
2. From the study, it is evident that a significant number of people, especially in the 21
to 30 age group, are not fully aware of different types of insurance products. Hence,
insurers must invest in awareness programs through digital media, seminars, and
community outreach to increase knowledge among potential policyholders.
 3. It is recommended that both government and private insurance sectors work
together to promote life insurance awareness. Collaborations could include co-
sponsored campaigns, educational workshops, and cross-promotion of essential
policies for broader reach.

4. Many respondents still do not consider life insurance as a viable investment option.
Insurers should promote the investment benefits of life insurance plans, particularly
those with high-risk coverage and long-term returns, to change this perception.

5. Companies should focus on launching innovative products with features like money-
back guarantee, low premium, and high coverage. This would not only attract
younger customers but also improve retention by aligning product features with
customer preferences.

CONCLUSION
• Life Insurance plays a crucial role in financial planning and security, yet awareness and
penetration in India remain relatively low. The study reveals that demographic factors like
age and occupation strongly influence the decision to purchase insurance. Younger
individuals are more inclined to buy insurance, but many lack full awareness of its benefits
and types.

• From the findings, it is clear that trust, brand image, and product clarity are major factors
influencing customer preferences. LIC remains the most trusted, but private insurers can
close the gap through improved branding, service, and outreach.

• There is also a need to reposition life insurance not just as a retirement safety net but as a
long-term investment tool. Educating people about ULIPs, term plans, and endowment
policies can help bridge the awareness gap.

• To conclude, life insurance companies must innovate, educate, and communicate more
effectively. Protecting human life through appropriate coverage is not only a social
responsibility but also a critical financial decision every individual must make for
themselves and their loved ones.
ANNEXURE 1 : QUESTIONNAIRE
References

• [Link]

• [Link]

• [Link]

• Economic Times

• IndiaFirst Life Insurance Annual Report 2024

• HDFC Life Insurance Annual Report 2024

• [Link]
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