INTRODUCTION

A BRIEF HISTORY OF THE INSURANCE SECTOR

The business of insurance in India in its existing form started in the year 1818 with
the establishment of the Oriental Life Insurance Company in Kolkata. Some of the
important milestones in the insurance businesses in India are:
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 to by the Insurance Act with
the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by
the central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.

Some of the milestones in general insurance businesses 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.
 LITERATURE REVIEW
Insurance industry has always been a growth oriented industry globally. On the
Indian scene too, the insurance industry has recorded noticeable growth vis-à-vis
other Indian industries.

The Triton General Insurance Co. ltd. was the first general insurance company to
be established in India in1850, which was wholly British owned company. The first
general insurance company to be set up by an Indian was Indian Mercantile
Insurance Co. ltd was established in 1907. There emerged many players on the
Indian scene thereafter.

The general insurance business was nationalized after promulgation of General

Insurance Business (Nationalization) Act, 1972. The post-nationalization general
insurance business was undertaken by the General Insurance Corporation of India
(GIC) and its 4 subsidiaries:

1. Oriental Insurance Company Limited;

2. New India Assurance Company Limited;
3. National Insurance Company Limited;
4. United India Insurance Company Limited.

Towards the end of 2000, the relation ceased to exist and the four companies are,
at present, operating as independent companies.

The Life Insurance Corporation (LIC) was established on 1.9.1956 and had been
the sole corporation to ride the Life Insurance business in India.
The insurance industry saw a new sun when the Insurance Regulatory &
Development Authority (IRDA) invited applications for registration as insurers in
August, 2000. With the liberalization and opening up of the Sectors to private
players, the industry has presented promising prospects for the coming future.
The transition has also resulted into introduction of ample opportunities for the
professionals including Chartered Accountants.

The Indian insurance industry is featured by the attributes:

 Low market penetration;

 Ever growing middle class component in the population;
 Growth of consumer movement with an increasing demand for better
insurance products;
 Inadequate application of information technology for business;
 Adequate fillip from the Government in the form of tax incentives to the
insured.

The industry formations need to keep vigil on these characteristics of the Indian
market and formulate the strategies to entail maximum contribution to the
output sector. In 1997, the Indian life and non-life insurance business accounted
for merely 0.42% of the world’s life and non-life business. The figures of basic
parameters of the industry’s performance viz. Insurance Density and Insurance
Penetration also are evident of the existing hitherto existing low-yield Indian
market conditions.

The term “Insurance Penetration” broadly measures the contribution of the

insurance industry in relation to nation’s entire economic productivity.

The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360-degree
turn witnessed over a period of almost two centuries.
 BASIC FUNCTIONS OF THE INSURANCE INDUSTRY

1. RISK RECEPTION AND EVALUATION:

The fundamental function of an insurer is to provide a cover against the
detriment caused to the insured due to the happening of certain specified and
agreed events. Thus, prior to providing such umbrella through a product, the
insurer has to assess the risk involved in the transaction. The insurer has to
identify the element of risk prevalent in the concerned industry or a particular
unit. The perception of risk requires the study of variables through various
methods including the application of scientific and statistical techniques and
correlation thereof with the industry or unit under study in the light of their basic
environmental and infrastructural characteristics. After the identification and
categorization of the risks perceived, the probability of the happening of loss-
causing events and the security of loss has to be assessed.

2. DESIGNING THE INSURANCE PRODUCT:

On the basis of the risks perceived, the insurer develops a product to cover the
stipulated risks. While designing an insurance product, an insurer decides its cost
to be charged from the insured in the form of premium, reduction thereof in
certain cases like not lodging any claim during the previous covered periods,
suggesting the implementation of risk mitigating measures etc. the features of a
product should be flexible enough to provide for determination of premiums,
rebates, additional premiums, etc. depending upon the risks benchmark as
determined.
 3. MARKETING OF THE PRODUCT:
The core function of the marketing force of the insurance company is to generate
awareness about the insurance products among the target market. But in the
Indian scenario, where the insurance penetration is too low as compared to the
other nations, the marketing force needs to perform the proactive role in
developing an insurance culture. It is through the efficiency of sales force of an
insurance company that the desirability and the success of a product are
determined.

4. SELLING OF THE PRODUCTS:

The term selling in the term of insurance industry connotes the insurance of
policies to the applicant. The non-life insurance policy basically embodies the
covenant between the insurer and the insured wherein the former agrees to
indemnify the latter for the loss caused to him on the happening of the certain
agreed events to a specific limit. The life insurance policy generally contains the
agreement whereby the insurer agrees to pay to the insured or the beneficiary of
the policy an agreed amount on the expiry of the term of the policy or the event
of death of the insured respectively.

5. MANAGEMENT OF PORTFOLIO:
The management of portfolio includes the assessment of requirements of funds,
identification of various sources of finance, the evaluation of the sources in the
light of their cost, availability, timing etc. reconciling the features of various
sources with needs of the company and he selection of appropriate conjunction
of sources. The insurer possesses huge amount of funds, which need proper
management. The management of portfolio of an insurance company requires
identification of investment avenues evaluation thereof and the selection of the
most appropriate mix of alternatives where the funds of the company can be
invested. The selection requires the knowledge of finance related functions and
techniques apart from the in-depth know of the patterns of requirement of funds
in the company as well as industry as a whole.
BASIC FUNCTIONS THAT INSURANCE PRODUCTS NEED TO FULFILL
The functions of insurance can be bifurcated into two parts:

1. Primary functions
2. Secondary functions
3. Other functions

The primary functions of insurance include the following:

PROVIDE PROTECTION: The primary function of insurance is to provide protection

against future risk, accidents and uncertainty. Insurance cannot check the
happening of the risk, but can certainly provide for losses of risk. Insurance is
actually a protection against economic loss, by sharing the risk with others.

COLLECTIVE BEARING OF RISK: Insurance is a device to share the financial loss of

few among many others. Insurance is a mean by which few losses are shared
among larger number of people. All the insured contribute the premiums towards
a fund and out of which the person exposed to a particular risk is paid.

ASSESSMENT OF RISK: Insurance determines the probable volume of risk by

evaluating various factors that give rise to a risk. Risk is the basis for determining
the premium rate also.

PROVIDE CERTAINTY: Insurance is a device, which helps to change from

uncertainty to certainty. Insurance is a device whereby the uncertain risks maybe
made more certain.
The secondary functions of insurance include the following:
PREVENTION OF LOSSES: Insurance cautions individuals and businessmen to
adopt suitable device to prevent unfortunate consequences of risk by observing
safety instructions; installation of automatic sparkler or alarm systems, etc.
prevention of losses causes lesser payment to the assured by the insurer and this
will encourage more savings by way of premium. Reduced rate of premiums
stimulate more business and better protection of the insured.

SMALL CAPITAL TO COVER LARGER RISKS: Insurance relieves the businessmen

from security investments, by paying small amount of premium against larger
risks and uncertainty.

CONTRIBUTES TOWARDS THE DEVELOPMENT OF LARGER INDUSTRIES: Insurance

provides development opportunity to those larger industries having more risk in
their setting up. Even the financial institutions may be prepared to give credit to
sick industrial units which have insured their assets including plant and
machinery.

The other functions of insurance include the following:

MEANS OF SAVINGS & INVESTMENT: Insurance is a compulsory way of savings

and it restricts the unnecessary expenses by the insured’s for the purpose of
availing income-tax exemptions.

SOURCE OF EARNING FOREIGN EXCHANGE: Insurance is an international business.

The country can earn foreign exchange by way of issue of marine insurance
policies and various other ways.

RISK FREE TRADE: Insurance promotes export insurance, which makes the foreign
trade risk free with help of different types of policies under marine insurance
cover.
TYPES OF INSURANCES
 Motor insurance: It is also known as an auto insurance and is the most
common form of insurance and may cover both legal liability claims against
the driver and loss of damage to the vehicle itself.
 Property insurance: It provides protection against risk to property, such as
fire, theft or weather damage. This includes specialized forms of insurance
such as fire insurance, flood insurance, earthquake insurance, home
insurance and boiler insurance.
 Health insurance: It covers medical bills incurred because of sickness or
accidents.
 Life insurance: It provides benefit to descendant’s family or other
designated beneficiary, usually to make for their loss of income.
 Accidents insurance: It provides a benefit to policy holder in case of an
accident.
 Theft insurance: It provides benefits in the event of theft.

TYPES OF COMPANIES PROVIDING THE INSUARNCE

Insurance companies may be classified as;

a) Life insurance companies: Sell life insurance, annuities and pension

products.
b) Non-life / general insurance companies: Sell other types of insurance.

Mostly, life and non-life insurers are subject to different regulations, tax and
accounting rules. The main reason for distinction between the two types of
company is that life business is very long term in nature. By contrast, non-life
insurance cover usually covers shorter periods, such as one year. Companies may
sell both life and non-life insurance, in which case they are known as composite
insurance companies.
 INDUSTRY SCENARIO

The insurance industry of India consists of 52 insurance companies of which 24

are in life insurance business and 28 are non-life insurers. Among the life insurers,
Life Insurance Corporation (LIC) is the sole public sector company. Apart from
that, among the non-life insurers there are six public sector insurers. In addition
to these, there is sole national re-insurer, namely, General Insurance Corporation
of India. Other stakeholders in Indian Insurance market include agents (individual
and corporate), brokers, surveyors and third party administrators servicing health
insurance claims.

Out of 28 non-life insurance companies, five private sector insurers are registered
to underwrite policies exclusively in health, personal accident and travel
insurance segments. They are Star Health and Allied Insurance Company Ltd,
Apollo Munich Health Insurance Company Ltd, Max Bupa Health Insurance
Company Ltd, Religare Health Insurance Company Ltd and Cigna TTK Health
Insurance Company Ltd. There are two more specialized insurers belonging to
public sector, namely, Export Credit Guarantee Corporation of India for Credit
Insurance and Agriculture Insurance Company Ltd for crop insurance.

Market Size

India's life insurance sector is the biggest in the world with about 36 crore policies
which are expected to increase at a compound annual growth rate (CAGR) of 12-
15 per cent over the next five years. The insurance industry plans to hike
penetration levels to five per cent by 2020, and could top the US$ 1 trillion mark
in the next seven years.

The total market size of India's insurance sector is projected to touch US$ 350-400
billion by 2020 from US$ 66.4 billion in FY13. The general insurance business in
India is currently at Rs 77,000 crore (US$ 12.41 billion) premium per annum
industry and is growing at a healthy rate of 17 per cent.

The Rs 12,606 crore (US$ 2.03 billion) domestic health insurance business
accounts for about a quarter of the total non-life insurance business in the
country.
 OBJECTIVES

 To understand the consumer buying behavior of people towards insurance

policies.

 To understand the behavior of different age groups towards insurance

policies.

 To understand the relationship between income levels and the purpose

behind buying insurance policies.

 To understand the market share of different insurance policy companies.

 RESEARCH METHODOLOGY

PILOT SURVEY:
Initially pilot survey was done and the questionnaire was prepared based on the
findings of the pilot survey.

METHODOLOGY:
1) Sampling method
Sample size: 100 correspondents

Target population
 The research targeted 100 households.
 The target population included professionals, people from service
sector, housewives, and businessmen with adequate family income.

2) Data collection
Tools used: Questionnaire
Medium: Face to Face.

3) Data analysis
The data analysis has been done using graph charts and pie charts.
 QUESTIONNAIRE
BUYING BEHAVIOUR OF CONSUMERS IN INSURANCE SECTOR
1) Do you have a policy for any of the following?
☐LIFE INSURANCE ☐ ACCIDENTAL INSURANCE

☐HEALTH INSURANCE ☐THEFT INSURANCE

☐MOTOR INSURANCE
If none, then why not?
2) At what age did you buy the following policies?
a) Life Insurance:
☐16-20 ☐21-30

☐31-40 ☐41-50

☐51-55 ☐55+ yrs.

b) Accidental insurance:
☐16-20 ☐21-30

☐31-40 ☐41-50

☒51-55 ☐55+ yrs.

c) Health insurance:

☐16-20 ☐21-30
☐31-40 ☐41-50
☐51-55 ☐55+ yrs.
d) Theft insurance:

☐16-20 ☐21-30
☐31-40 ☐41-50
☐51-55 ☐55+ yrs.

e) Motor insurance:

☐16-20 ☐21-30
☐31-40 ☐41-50
☐51-55 ☐55+ yrs.

3) Which companies’ policy do you prefer?

(A) HEALTH INSURANCE:

☐ HDFC STANDARD ☐ IFCO TOKTO

☐ NEW INDIA ☐ ORIENTAL INSURANCE

☐ MET LIFE ☐ RELIANCE GENERAL

☐ ROYAL SUNDARAM ☐ ANY OTHERS

☐ MAX NEWYORK LIFE

(B) LIFE INSURANCE:

☐ TATA AIG ☐ ICICI PRUDENTIAL

☐ MET LIFE ☐ KOTAK MAHINDRA

☐ BAJAJ ALLIANZ ☐ BIRLA SUN LIFE

☐ HDFC ☐ LIC

☐ MAX NEWYORK LIFE ☐ ANY OTHERS

 (C) MOTOR INSURANCE:

☐ BAJAJ ALLIANZ ☐ NEW INDIA

☐ ORIENTAL ALLIANCE ☐ NATIONAL

INSURANCE CO.

☐ UNITED INDIA ☐ ANY OTHERS

4) FROM WHERE DID YOU COME TO KNOW ABOUT THE POLICY

☐ MEDIA ☐ COMPANY

☐ FRIENDS ☐ FAMILY

☐ INSURANCE AGENT ☐ FINANCIAL

INSTITUTION

☐ OTHERS

5) REASONS FOR TAKING POLICY

☐ TAX BENEFITS ☐ INVESTMENT

☐ TO OBLIGE A FRIEND ☐ OFFERED BY COMPANY

☐ OFFERED BY FINANCIAL ☐ TO PROTECT AGAINST

INSTITUTION FUTURE DAMAGES

☐ OTHERS

6) WHICH FACTORS INFLUENCE YOU TO BUY POLICY FROM A PARTICULAR

COMPANY?

☐ PREMIUM ☐ BRAND NAME

☐ SERVICE ☐ PRODUCT VARIETY

☐ DISTRIBUTION
7) ARE YOU SATISFIED WITH YOUR INSURANCE SCHEME?

☐ YES ☐ NO

8) WOULD YOU TRUST A GOVERNMENT OR PRIVATE INSURANCE?

☐ GOVERNMENT ☐ PRIVATE

9) PERSONAL INFORMATION?

☐ MALE ☐ FEMALE
 FINDINGS AND ANALYSIS

PERCENTAGE OF RESPONDENTS HAVING POLICY

LIFE INSURANCE

25%

YES
75% NO

MOTOR INSURANCE

17%

YES
NO
83%

Life insurance and motor insurance are the most popular insurances among the
respondents. In case of life insurance, the first thing that comes to customers
mind is LIC. Thus, LIC is almost synonymous with life insurance. Also motor
insurance is famous because a vehicle owner does not need to take extra efforts
to get insurance as it is provided when a person buys a vehicle.
 HEALTH INSURANCE

48%
52%
YES
NO

Although 52% of the respondents have health insurance policies, majority of them
have got it through the companies where they are employed. Very few
respondents have bought it directly through insurance companies. Thus, health
insurers need to make efforts to make health insurance products more popular
among the consumers at an individual level.
 ACCIDENTAL INSURANCE

20%

YES
NO
80%

THEFT INSURANCE

10%

YES
NO

90%

Accident and Theft insurances are not very popular among consumers. Some
consumers do not even know about the existence or availability of such products
in the market.
 AGE AT WHICH POLICIES WERE BOUGHT

Life insurance
45
40
40
35
30
25 22
20
20
14
15
10
5 3
1
0
16-20 21-30 31-40 41-50 51-55 55+

Majority of the insurance holders fall in the age group of 40-50 years followed by
the age group of 30-40 years. Probably as consumers approach old age, their
tendency to buy life insurance increases, so that they can ensure a secured life for
their dependents in the event of their death. However, the age group of 20-30 is
the one where consumers have lesser responsibilities and high disposable
income. In this segment there is scope for growth. Hence, insurance can tap this
segment for life products.

Whereas in the case of health insurance, 35% of health insurance holders fall in
the age bracket of 41-50 years. This is the age group where people are prone to
health issues. This is one of the reason for such statistics as described in the
graph.
 Health Insurance
40
35
35
30
25
25
20
20
14
15
10
5
5 1
0
16-20 21-30 31-40 41-50 51-55 55+

Motor Insurance
45
39
40
35
35
30 28
25
20
15
10 6
5 1 2
0
16-20 21-30 31-40 41-50 51-55 55+

Majority of the motor insurance holders fall within the age bracket of 21-30 years.
Maximum motor owners today fall in this age bracket and the majority of motor
companies have tie-ups with insurance companies, thus supporting the increase
of policy holders within this age bracket. Also there is a considerable number of
insurance holders in the 31-50 years bracket.
 COMPANY WISE MARKET SHARE

Motor Insurance
20 19 19 19
18
16 15
14
12
10
8 7
6
4 3
2
0
Bajaj Allianz New India Oriental National United India Any other
Assurance Insurance Insurance Assurance

There are three major players which share the market equally

 United India Insurance

 NIC
 New India Assurance

Amongst the private insurance players, Bajaj Allianz holds a good percentage of
the market.
 Health Insurance

100
90
80
70
60
50
40
30
20 14 14
10 7 5
3 1
0
HDFC IFCO TOKYO New India Max Oriental Met Life
Standard Assurance Newyork Life Insurance

Majority of people are not aware of the health insurance. When they say health
insurance, they relate it to life insurance. Therefore, not much importance is given
to health insurance in India. New India Assurance and Oriental insurance are the
major players in the health sector.

However, in case of both health and motor insurance, there is no clear-cut market
leader. In order to gain a strong hold in this market companies need to
differentiate themselves from other players.
 LIFE INSURANCE

60
53

50

40

30

20
8
10
1 1 2 1
0
TATA AIG ICICI Max New Met Life Kotak LIC
Prudential York Life Mahindra

LIC is the market leader with maximum customer base. Reasons are as follows:

 Reputation and credibility.

 Strong distribution network.
 Integrated training and development.
 Financial stability.
 Sophisticated technology and systems
 Risk management skills.
 Fund management skills.
 Strategic selection of segments.
 TRUST GOVERNMENT OR PRIVATE PLAYER MORE

Trust

26%

Private
Government
74%

People trust government players more as compared to private players, as they

feel government companies are more secure with respect to insurances. On the
other hand, private companies have come up with a lot of innovative products
but have not been able to gain public trust. Trust and security plays an important
role in the purchase decision while buying insurance.
 REASONS FOR BUYING A POLICY

30
26
25
25

20
15
15 12
11
10
5
5

0
Investment Offered by Offered by Oblige a friend To protect Tax benefits
financial company against
institue damages

Majority of the respondents took policies due to tax benefits followed by

consumers who need a secure future. Though insurance is also being considered
as an investment option these days, very few people take insurance policies for
investment purposes as per the research.
 SOURCE OF KNOWLEDGE ABOUT THE POLICY

100

90

80

70

60

50

40

30 24 25

20 14 16
12
10 7
2
0
Media Financial Insurance Company Friends Family Others
Institutions agent

Majority of the consumers get information regarding insurance products from

insurance agents. Hence, insurance agents should be selected with care by
companies and they should be given adequate training regarding products.

Also, family and friends play a vital role; i.e. Word of mouth publicity. However,
media is not proving as effective as it should be. This is one area on which the
insurance companies could focus.
 FACTORS INFLUENCING THE PURCHASE OF A POLICY

25%
40%
Product variety
Distribution
7%
Premium
8% Brand name
20% Service

Majority of the people select an insurance provider based on good customer

service. Hence, private players have an edge over government players in this
regard. Also, customers require products that are tailor made for them and hence
variety/customization is another important factor for the purchase. Along with
his, brand name is also taken into consideration as financial products are usually
associated with trust and every customer looks at the credibility of the company
before putting his/her money.
 SATISFACTION WITH THE CURRENT INSURANCE COMPANY

21%

Satisfied
Dissatisfied
79%

Level of satisfaction for the existing policies is very poor amongst the customers
because majority of the consumers have insurance policies provided by
government companies. These companies do not provide:

 Prompt response.
 Good customer service.
 A policy holder has to take efforts to get his claim from the company.
 HYPOTHESIS
IMPACT OF INCOME LEVEL ON PURPOSE OF POLICY PURCHASE

H0= The purpose to purchase an insurance policy is not affected by the income

level.

H1= The purpose to purchase an insurance policy is affected by the income level.

Tax savings Security Savings Investments

Income Less than 16 20 2 1

level per 25000
month

Between 5 3 2 2
25000-
50000

More than 5 2 2 2
50000

Total 26 25 6 5

Chi-Square Tests

Value Degree of freedom Asymp.Sig (2-Sided)

Pearson Chi-square 5.669 4 .225

N of valid cases 62
The hypothesis is accepted that the buying of the insurance policy is not effected
by the income level. Here the significant difference is more than 5 per cent and
we can say that monthly income level and the purpose of purchase of insurance
policy is independent i.e. monthly income does not matter for purpose of the
purchase. It means that the person having different monthly income level can opt
for public sector i.e. LIC or private sector.
 LIMITATIONS OF THE PROJECT

 One of the major limitations of this study is the sample size selected. A
sample size of 100 people may not reveal all the facets of consumer buying
behaviour.

 Again, this survey was conducted in Navi Mumbai and has a geographical
limitation and may not be representative of India as a whole.

 The research conducted may have missed out on certain points which could
have affected the final findings and conclusion.
 FUTURE SUGGESTIONS

On the basis of Primary research:

1. As seen from the survey, a number of potential customers do not buy
insurance products due to certain attitudinal and product related barriers.
Insurance companies should therefore work towards tackling these
barriers. The following measures could be taken:
To tackle attitudinal barriers;
 Companies could position insurance as a means to fulfilling one’s
filial duties during one’s lifetime.
 Trepidation relating to thefts, ailments, death, could be addressed
through ‘sensitive’ communication.
 Companies could design products that appeal to women to improve
her “self-worth”. Through a change in perception, she can be
powerful influencer in financial planning.

To tackle product related barrier;

 In order to eliminate the fear of money getting blocked and low

returns companies could reposition their products as risk cover,
Security instrument and promote it as long term investment.
 Fears relating claims can be diminished from the mind of customers
by promoting the trust factor testimonial by existing customers could
be promoted through the company websites newspapers and other
media of communication used by the company .this will helps build
trust among the minds of potential customers

2. As survey suggest majority of the people taking health insurance usually get
it from the companies they work in very few customers buy it on individual
level. Hence companies need to make effort to make health insurance
more popular through appropriate promotions.
3. Product customization/variety is a very important factor in selecting an
insurance provider. In the context of formulating mix, it is essential that the
insurance organizations promote innovation and in the product portfolio
include even those services and schemes which are likely to get a positive
response in the future. Currently most marketers are primarily addressing
only the first two levels I.e. the core product and formal product levels.
However, with further expectations of the customer-again synchronised
with intense competition- insurance companies should also address the
augmented product level.

4. Insurance companies should not consider it as the end of the service once
the customer is provided the policy. Insurance company should include the
provision of the post-sales service to the customer. Among the services
rendered by the insurance company is the service of processing and release
of claims.

5. As insurance agents ply a very vital role in educating the customers

regarding the products, as per the survey, the agents communication skills
are very important. The insurance company has to play an active role in
enabling the agents to impart the best customer education through
appropriate training given to the agents.
On basis of secondary research:

 The affluent with an annual income of more than 10 lakhs, will

increase rapidly by 2015. This segment has relatively low need of risk
protection. They view insurance as an investment tool. Hence to
cater to this segment of consumers companies can provide
relationship managers, rather than insurance agents, as the former
also provide third party investment products, brokerage and other
advisory services.

 The middle class comprising of ‘seekers’, and ‘strivers’ will grow to

16% of the population by 2015. This segment uses insurance largely
for tax planning, retirement planning and savings as well as for risk
protection. This is an attractive segment to focus on as large volumes
can be built through this segment.

 The ‘aspirers’ will comprise 46% of the population by 2015,

representing a formidable emerging bankable class. This usually uses
insurance for long term savings, providing high returns at low risks,
given the lack of alternative investment options.
CONCLUSION