A SUMMER INTERNSHIP PROGRAM REPORT ON

(A STUDY ON CONSUMERS BEHAVIOUR

TOWARDS LIFE- INSURANCE)

Submitted by: LAKHOTIYA PRATHAMESH

Register No: 2110560024
Program: Bachelor of Business Administration (BBA)
Year: 2023
Batch: 2021-24
Course Code: 21BB20P1

Name of the Company: FINFITT PRIVATE LIMITED

A report submitted in partial fulfilment of the requirements of

BBA/MBA Program
KLH Global Business School
2022-23

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 DECLARATION

I, LAKHOTIYA PRATHAMESH, hereby declare that the Summer Internship Report 2023
entitled “A study on consumers behaviour towards Life- Insurance” submitted by me under
the supervision of Dr. Swarupa Pelleti Department of Management, KLH Global Business
School, KL University is a bonafide research work which is also free from plagiarism. I also
declare that it has not been submitted previously in part or in full to this University or any other
University or Institution for the award of any degree or diploma.

Date: 24/08/2023 Signature of the Candidate

Place: Hyderabad Name: Lakhotiya Prathamesh
Reg. No: 2110560024

Date: 24/08/2023 Signature of the Faculty Guide

Place: Hyderabad Name: Dr. Swarupa Pelleti
Employee ID:

Date: 24/08/2023 Signature of the Head of the

Department:
Place: Hyderabad Name: Dr. Balanagalaxmi
Employee ID:

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 ACKNOWLEDGEMENTS

I thank God for giving me the strength, courage, and grace to finish my work
successfully. It gives me great pleasure to take this opportunity to express my sincere gratitude
to several helping hands for their unwavering cooperation that enabled me to shape my study.

It is an honor for me to express my gratitude to Smt. Dr. N. ANUPAMA,

DIRECTOR, KL GLOBAL BUSINESS SCHOOL, for providing cutting-edge facilities as
well as knowledgeable and skilled faculty.

I would like to extend my heartfelt gratitude to DR. Balanagalakshmi, Head of the

Department of Management at KLGBS and KLEF, for her prompt assistance and support
during the project work.

I would like to express my sincere gratitude to my project advisor, Dr. B. GIRI BABU,
MBA, PhD Assistant Professor, for his invaluable advice, ongoing support, and helpful
suggestions for producing this project report. I would also like to express my gratitude to all
my faculty members for their encouragement and support throughout the project work.

LAKHOTIYA PRATHAMESH

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 DEPARTMENT OF MANAGEMENT STUDIES
GLOBAL BUSINESS SCHOOL
(DEPARTMENT OF MANAGEMENT, KLGBS, KLEF)

K.L. UNIVERSITY, KONDAPUR, HYDERABAD.

CERTIFICATE

This is to certify that the Project work entitled “A study on consumer behaviour towards
Life-Insurance” with reference to FinFitt Private Limited, Raipur being submitted by
LAKHOTIYA PRATHAMESH (2110560024) student of KL UNIVERSITY, HYDERABAD
is a Bonafide work carried out by her under my guidance in partial fulfilment for the award of
Bachelor of Business Administration.

___________________ ______________
PROJECT GUIDE HOD
Dr. B. Giri Babu
Assistant Professor

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Contents
1) INTRODUCTION ................................................................................................................... 8
1.1. An overview of industry ................................................................................................... 8
1.2. Indian Scenario ................................................................................................................ 9
1.3. An Overview of the company ......................................................................................... 11
1.4. Products and Services .................................................................................................... 12
1.5. 3CET Report .................................................................................................................. 13
2) OBJECTIVES ........................................................................................................................ 17
2.1. Scope of the study ............................................................................................................... 17
3) METHODOLOGY ................................................................................................................ 18
3.1. Data Collection and Interpretation ................................................................................... 19
4) RESULTS AND RECOMMENDATIONS ............................................................................ 22
5) LIMITATIONS AND CONCLUSION .................................................................................. 23
5.1. Conclusion ........................................................................................................................... 23
Bibilography .............................................................................................................................. 24

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 ABBREVATIONS

AIA- American Insurance Association

APAC- Asia-Pacific

BPS- Basis Points

CAGR- Compounded Annual Growth Rate

COVID-19- Coronavirus Disease 2019

CP- Channel Partner

EMEA- Europe, Middle East, and Africa

FDI- Foreign Direct Investment

FICCI- Federations of Indian Chambers of Commerce and Business

FY- Financial Year

HDFC- Housing Development Finance Corporation

ICICI- Industrial Credit and Investment Corporation of India

IRDAI- Insurance Regulatory and Development Authority of India

LIC- Life Insurance Corporation

MF- Mutual Fund

S&P- Standard & Poor’s

SBI- State Bank of India

US- United States

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 ABSTRACT

An internship report is merely a summary of experience that many businesses require to

conclude a candidate's time at their company. This internship report is crucial because it
informs supervisors or educators of the knowledge and abilities that an individual has acquired
during a specific period of employment and the opportunities that individual has had to put
those abilities to use. Directors may use this report to determine whether to enhance internship
opportunities or lessons for incoming graduates. The following topics are going to be covered
in this report. Information about the business, including its mission, vision, and values
statement as well as the goods and services it provides to customers.

The second one is a description of the internship process, including essential tasks I
completed and unique advantages I reaped throughout the entire period of execution. It also
includes a summary of the internship experience, in which I simply state the learnings I have
made throughout the course of my internship.

The report also highlights what I still need to learn from the lessons I have already learned
since the beginning of my internship. This report's main goal is to showcase the work I did at
FinFitt Private Limited in Raipur.

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 1) INTRODUCTION

1.1. An overview of industry

The insurance sector is centered on risk management. To better understand the

statistical likelihood of various outcomes, all written policies are reviewed while taking into
consideration various risks. In reaction to differences between statistical data and projections,
policyholder premiums are altered or benefits are re-evaluated. The quantity of the premiums
paid in the insurance sector is often determined by the risk associated with the pertinent
person, property, or item being protected.

One of the more remarkable characteristics of these enterprises is the fact that insurance
companies are essentially allowed to invest with the money of their consumers. In this regard,
they resemble banks, except investing happens on a far larger scale. The primary product in
this market is insurance. However, in recent decades, several corporate pension plans; however,
have annuities for retirees have been developed. As a result, when providing these products,
insurance companies are directly competing with other providers of financial assets. Today,
many insurance companies either domestically or through partnerships have their own broker-
dealer.

The global insurance market expanded by 4.9 percent overall in 2019 compared to
2018, which is slightly more than the industry's CAGR of 3 percent from 2010 to 2018.
Premiums in total reached €5 trillion. From 2018 to 2019, the Americas experienced the highest
regional premium rise rate, at 6%, followed by Asia-Pacific (APAC), at 5%. Europe, the
Middle East, and Africa (EMEA) had 3% growth. North America, which provided 41% of the
rise in global insurance premiums from 2010 to 2018, and expanding Asia-Pacific, which
contributed 27% of the growth.

In a more recent time frame, from 2015 to 2018, emerging APAC's share of the total
contribution increased to almost 36%, while Western Europe and developed Asia-Pacific saw
a decline in their shares. Emerging markets including Latin America, Eastern Europe, and
Africa had strong profitability and premium increases from 2015 to 2018. On the other hand,
North America's insurance industry struggled to recover from large losses brought on by natural
catastrophes in 2017, which led to the region's lowest profitability performance due.

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Top Life-Insurance companies in the world (2023)

Name Headquarters City Headquarters Year Founded

Country
1891 Financial Life Schaumburg United States 1891
5 Star Life Alexandria United States 1996
AAA Insurance Heathrow United States 1902
AAA Life Livonia United States 1969
Abeille Assurances Bois Colombes France 2021
Absa Johannesburg South Africa 1991
Aflac Columbus United States 1955
AFLAC Japan Tokyo Japan 2018
AIA Australia Limited Melbourne Australia 1972
Allianz Munich Germany 1890

1.2. Indian Scenario

The insurance sector in India is one of the top industries expanding. Growing incomes
and greater industry understanding can be credited for the insurance sector's improving trend.
With a growth rate of between 32 and 34% annually, India is the fifth-largest life insurance
market in the world. The sector has recently seen intense competition among its competitors,
which has sparked the development of new and cutting-edge products. Up to 26% of foreign
direct investment (FDI) is permitted in the sector via the automatic method, and licensing of
the sector is overseen by the insurance industry's governing body, the Insurance Regulatory
and Development Authority of India (IRDAI).

The insurance market was dominated by offline channels including corporate agents
and offline brokers. Thanks to swift digitalization, product innovation, and progressive
regulatory regulations, consumers may now buy insurance with a single click through a range
of distribution channels. The COVID-19 epidemic's unpredictability made it obvious that
consumers needed to make investments that would strengthen their financial security, one of
which was life insurance.

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 Over the past 20 years, the insurance market in India has expanded at a remarkable rate
thanks to more private sector involvement, better distribution capacities, and significant
increases in operational effectiveness. The private life insurance industry's premium in March
2023 increased at a respectable rate of 35% on an annual basis and 20% for FY23.

In FY23 over FY22, premiums collected by life insurance companies increased by 18%.
According to the most recent IRDAI data, life insurers collected Rs. 3.71 lakh crore (US$ 44.85
billion) as the first-year premium in FY23 as opposed to Rs. 3.14 lakh crore (US$ 37.96 billion)
in FY22. As anticipated, almost 60% of the entire collection of new business premiums came
from the state-run insurance colossus LIC alone. In comparison to Rs. 1.99 lakh crore (US$
24.06 billion) in FY22, the insurer received about Rs. 2.31 lakh crore (US$ 27.93 billion) in
premiums in FY23.

Top Life-Insurance companies in India (2023)

Name Headquarters City Founded Year

Life Insurance Corporation (LIC) Mumbai 1956
HDFC Life Insurance Mumbai 2000
SBI Life Insurance Mumbai 2001
ICICI Prudential Life Insurance Mumbai 2001
Max Life Insurance New Delhi 2000
Bajaj Allianz Life Insurance Pune 2001
Tata AIA Life Insurance Mumbai 2001
Reliance Nippon Life Insurance Mumbai 2001
Aviva Life Insurance Gurugram 2002
Bharti AXA Life Insurance Mumbai 2006

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 1.3. An Overview of the company

2015 founded on the idea of two illustrious and knowledgeable investment bankers.
2016 is the beginning. launched its first location in Hyderabad and started operating its business
with just six employees. Growth in 2016. They collaborated with three MF companies and were
already acknowledged by HDFC as the leading CP in terms of sales. 2018: growth. The crew
consisted of 131 people as at the end of 2018. The group kept expanding. 2019 will see a new
direction. The team finally added a specialist from the insurance sector, which led to the
creation of a new business line. Collaborations in 2020. In addition to the first 3 agreements,
they had agreements in place with an additional 5 insurance companies by the end of the year.
In 2021, Master Stroke. constructed a backend office in Nagpur that provided backend
assistance for the field workers. Recognitions and Awards in 2022. CP of the year, best.
Minimum Claims and Maximum Settlement Award for Best Retention: Channel Partner. 2023:
Forward motion. They just opened an office in Raipur, where they hope to quickly expand their
employees. In 2023, Extended Partnerships. Teamed up with 7 insurance companies.

Vision Statement
To extend our reach to people and companies still away from the Insurance Paradigm. We
force penetrating the untouched retail and corporate markets with providing them ease of
Online Issuance, Quick Renewals, Digital Policy Locker and most importantly, a
Personalized Servicing Experience.

Mission Statement
Work well together to create the best value for the customers.

Value Statement
Committed towards superior customer service.

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 1.4. Products and Services

Financial Assistance
Based on our clients' financial situations and needs, FinFitt's team of professionals
offers them a full range of financial services. In summary, we provide individualized guidance
to assist investors in accumulating wealth. FinFitt provides clients with a comprehensive
review of their financial situation. We analyze a client's assets, liabilities, and income in order
to design a financial plan that will assist them accomplish a variety of objectives. These
objectives can be targeted at particular life events like retirement, paying for a grandchild's
education, buying a property, moving to a new city, and many more.
Life Insurance
By purchasing life insurance, you can shield your spouse and kids from the potentially
catastrophic financial losses that could arise in the event of your passing. It offers financial
stability, aids in debt repayment, assists in covering living expenditures, and aids in covering
any last or medical costs.
Tax Consultancy
We assist businesses and individuals in navigating the complicated world of taxation
as tax advisors. To reduce our customers' tax obligations, we as tax advisors combine our in-
depth knowledge of tax law and finance with our proficiency in accounting, auditing, and
strategic planning.
Retirement Planning
Is it vital to plan for retirement? Yes, it is, and we will explain how. As a result,
retirement accounts are a very valuable asset that are designed to give you money when you
stop working. You will not have any choice but to continue working past the "traditional"
retirement age if you do not have a retirement plan, as Social Security is unlikely to supply you
with a sufficient income.
Health Insurance
A health insurance plan offers comprehensive protection against medical-related costs.
It assists you in maintaining financial readiness for any medical emergency. You can obtain the
care you require at reasonable cost with the help of health insurance policies.

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 1.5. 3CET Report

Company

Incorporated as a partnership firm company in the state of Hyderabad, FinFitt Private

Limited is presently present in five of the nation's major cities: Hyderabad, Goa, Indore,
Nagpur, Gurgaon, and Raipur, where it recently opened. We think it is important to foster an
environment where consumers and employees can freely exchange information and interact in
an open and sincere manner. Additionally, our qualified team gives you a favourable first
impression of our services and goods. As a result of our staff's strong belief in creating strong
interpersonal synergies, we have always been able to develop long-term dependability with our
esteemed clients. We have been working in the insurance sector for ten years, and we are
knowledgeable about the integrity that has improved our clients' lives.

Customer

Customers appreciate purpose more than merely loss insurance. The traditional
insurance principle that monies be provided to cover risk and pay claims is no longer valid.
Customers are approaching insurers more often for help in reducing or even preventing the
dangers that surround them every day. Most of these risks have an impact on consumers'
houses, cars, health, and financial stability.
There has been a lot of unrest and uncertainty lately, which has stoked consumer
interest. Aging populations, illness, the Covid-19 epidemic, severe weather, and technology
advancements are all contributing to a dramatic change in the risk landscape by raising the
quantity and diversity of threats. Objectives other than decreasing risk are increasingly driving
consumer attitudes and behaviour.

Competition

According to Debashish Panda, chairman of the Insurance Regulatory and

Development Authority of India (IRDAI), competition in the insurance sector is expected to
rise as a result of the IRDAI's evaluation of 20 companies' license requests to enter the
insurance market. The insurance business has advanced significantly over the past 20 years,
according to the speaker at the insurance conference held by the Federation of Indian Chambers

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of Commerce and business (FICCI), with the total premium crossing Rs 10 lakh crore and
assets under management reaching Rs 59 lakh crore in the coming fiscal year 2022–23.

In February 2023, the life and non-life insurance industries saw premium increases of
roughly 16%. Credit Access Grameen Life Insurance, Acko Life Insurance, and Kshema
General Insurance all received licenses from the body that oversees the insurance sector in the
most recent fiscal year. There are currently 33 general players and 23 life insurers operating in
the country.

Image Credits [1.0]: Google [Market Share of Life Insurance Companies]

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Environment

Over the past 20 years, the insurance market in India has expanded at a remarkable rate
thanks to more private sector involvement, better distribution capacities, and significant
increases in operational effectiveness. The private life insurance industry's premium in March
2023 increased at a respectable rate of 35% on an annual basis and 20% for FY23.

In FY23 over FY22, premiums collected by life insurance companies increased by 18%.
According to the most recent IRDAI data, life insurers collected Rs. 3.71 lakh crore (US$ 44.85
billion) as the first-year premium in FY23 as opposed to Rs. 3.14 lakh crore (US$ 37.96 billion)
in FY22.

LIC raised its market share by 67.72%, or a rise of 447 basis points (bps), as of October,
according to the Insurance Regulatory and Development Authority of India's most recent data.
By the end of 2021–2022, LIC had 63.25% of the life insurance market, while private
businesses held 36.75%.

Between 2019 and 2023, the life insurance market is anticipated to grow at a CAGR of
5.3%. In FY21, the penetration rate of insurance in India was estimated to be 4.2%, with non-
life insurance penetration at 1.0% and life insurance penetration at 3.2%. India's overall density
in terms of insurance was US$ 78 in FY21. India is the second-largest insurance technology
industry in Asia-Pacific, accounting for 35%, according to statistics from S&P Global industry
Intelligence.

Technology

Technology is a key factor in the fast-paced transformation that is occurring in the

insurance sector. To increase productivity, improve the client experience, and streamline
operations, insurance companies are implementing new technology and digital tools. Several
new trends are anticipated to alter the insurance sector as 2023 progresses. Insurance
technology (insurtech) is poised to alter the market and open new growth opportunities, thanks
to advancements in artificial intelligence, the Internet of Things, and telematics.

Companies in the insurance industry must keep a close eye on new technological trends
that have the potential to upend the whole insurance industry in order to maintain their
competitive edge. As technology develops, it creates new possibilities for enhancing

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operational effectiveness, raising cost savings, and providing more individualized experiences.
Though implementing cutting-edge technologies and creating digital channels appear
inevitable, the issue of where to concentrate still exists. Because of how quickly technology is
developing, insurers must have the ability to accurately analyse, evaluate, embrace, and deploy
the appropriate technologies.

Manual procedures must be replaced due to the dynamic changes in the insurance
market and the rate of business expansion. Insurance companies are integrating AI capabilities
across their entire value chain in order to embrace robotic process automation and offer better
interactions for customers, partners, and staff. They will be able to deal with uncertainties and
effectively compete with threats from insurtech startups and other new market entrants by
integrating AI-based tools and solutions into their operations.

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 2) OBJECTIVES

 To study the number of people who are aware of insurance.

 To study on the variables influencing investors' decisions when choosing life

insurance in the private sector.

 To understand and evaluate the level of consumer satisfaction provided by the

company's services, and to make recommendations to enhance their marketing tactics.

2.1. Scope of the study

The consumers that participated in this study are Indian citizens. It will be possible to learn
more from the survey on how consumers feel about life insurance products and what they
prefer, need, and want. It will help insurance companies assess whether their current
products satisfy customer needs.

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 3) METHODOLOGY

A frequent term for a search for knowledge is "research". In truth, research is the art of
conducting a methodical, scientific search for relevant information on a certain subject. A
scientific approach to solving a research topic is research technique. It can be thought of as a
science that studies how scientific research is progressing. It is the examination of several
approaches commonly used by researchers to explore their research problem. The knowledge
of technology as well as research methodology strategies is essential for researchers.

This research is based on the quantitative analysis. The quantitative analysis is the
foundation of this study. A sort of research called qualitative research looks at actual issues and
offers more in-depth understandings. Qualitative research aids in the generation of hypotheses
as well as the further investigation and understanding of quantitative data, as opposed to
gathering numerical data points or intervening or introducing treatments as in quantitative
research. In qualitative research, participants' experiences, viewpoints, and actions are
gathered. Instead of addressing how many or how much, it addresses how’s and whys.

Primary data are those that are initially gathered. Creating surveys allows for the
collection of primary data. The poll had both closed-ended and open-ended questions.
Unstructured questions require answers that are expressed by the respondent themselves.
Closed-ended questions only allow the respondent to pick the best option from a range of
possible ones. Any questions that the respondents had were answered in order to ensure that
the distributors gave the best answers they could. Open-ended questions yielded more
significant information even though closed-ended questions were simpler to tabulate and
analyse.

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 3.1. Data Collection and Interpretation

The data was collected through questionnaire.

Demographic Characteristics:
1) Gender- 50 responses

Gender

34% Male
Female

66%

The survey's analysis considers the respondents' gender. It revealed that most responses to the
study were male applicants.

2) Age- 50 responses

Age
6%
12%
Below 30
31-45
18% 46-60
64%
Above 60

According to the poll, respondents who were between the ages of 31 and 45 were typically
employed or making future plans.

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 3) Income levels (per annum in $)- 50 responses

Income levels

16%

21000-35000
38%
12% 36000-55000
55000-80000
80000- Above

34%

The poll revealed that the median salary of the 50 respondents is between 21,000 and 35,000.

4) Occupation- 50 responses

Occupation
8%
22%
Business
Service
Retired
39%
Student
25% Others

6%

According to the poll, most respondents worked in the service sector and were students.

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 5) Insurance Policy- 50 responses

Do you want insurance policy?

9%

Yes
31% No

60% May be

It is evident from the study that most of them already have a policy.

6) What do you expect from insurance company?

Expectations from insurance

15%

Tax saving services

40% 10%
Savings tool
Long-term Investment
Tool to protect family

35%

We can infer from the survey that consumers prioritize long-term investment over family
protection. Some even demand tax breaks from the business.

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 4) RESULTS AND RECOMMENDATIONS

The findings which can be drawn from the survey conducted by me is summarized as
follows: The majority of survey respondents are male, and the majority of them are in the age
range of 31 to 45, which suggests that they have either begun working or running a business,
have plans to safeguard their families, and are looking for long-term investments. Of the
respondents, 60.8% have insurance plans, while the remaining respondents do not. The cause
can be that they are unaware of the business or couldn't identify a reliable business. The
majority of them participate in long-term investments after purchasing insurance as a measure
to safeguard their families. 15% of respondents said they were purchasing insurance to reduce
their tax burden. According to their income levels and convenience, the majority of respondents
pay their premiums annually, followed by quarterly. The majority of clients are happy with the
benefits and services provided by their insurance company, however some are not.

Many of the consumers intend to have protection for their lives in the days to come. mainly
in their later years of retirement. Insurance providers should modify their product offerings to
meet the changing needs and preferences of their consumers. Customers want insurance plans
that will long-term protect their families and assist them in difficult situations. Obtain for them
as well suitable profits. They want the company to be transparent and give the customers all
the facts while selling the coverage.

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 5) LIMITATIONS AND CONCLUSION

During the tenure of internship, I have faced various problems such as:
 We were given the burden of selling the insurance.
 Faced difficulty in persuading customers to buy insurance.
 As life insurance is found very commonly, all the people we contacted already have
the insurance.

5.1. Conclusion

When there is future uncertainty, insurance provides protection. When FinFitt was first
established, their only partnerships were with three mutual fund companies. But gradually, as
their team continued to grow and included experts from the insurance industry, a new business
line emerged. They have programs with low premiums and relatively short premium payment
terms where they have prioritized fulfilling the fundamental needs. They also offer an optional
supplementary rider that is used to provide compensation in the event of serious illness or
surgery as well as disability protection. The insurance industry is becoming more competitive
every day. Customers seek out products that they may customize with a variety of possibilities.

In the upcoming days, many of the clients plan to have protection for their lives.
primarily during their retired years. Insurance companies should adapt their product lineup to
customers' evolving demands and requirements..

I will sum up by noting that consumers desire insurance policies that will protect their
families over the long term and help them in times of need. Get them satisfactory returns as
well. When selling the policy, they want the business to be open and disclose all the information
to the clients.

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Bibilography

1. https://finfitt.in/about-us/
2. https://blog.adacta-fintech.com/insurance-technology-trends
3. https://timesofindia.indiatimes.com/blogs/voices/future-of-insurance-in-india/
4. https://indianexpress.com/article/insurance/private-general-insurance-players-
expanding-mkt-share-8596986/
5. https://www.mckinsey.com/industries/financial-services/our-insights/global-
insurance-pools-statistics-and-trends-an-overview-of-life-p-and-c-and-health-
insurance
6. https://www.ibef.org/industry/insurance-sector-india
7. https://www.google.com/url?sa=i&url=https%3A%2F%2Fin.pinterest.com%2Fpin%2
Ffinmediumcom-on-twitter--
747456869412875457%2F&psig=AOvVaw0GPuNzgKYPy2Z0NjXaq14l&ust=1692
457770774000&source=images&cd=vfe&opi=89978449&ved=0CBAQjRxqFwoTC
KjV0NO-5oADFQAAAAAdAAAAABAE

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