A

SIP REPORT

ON

“A STUDY ON MARKETING STRATEGIES OF SBI LIFE

INSURANCE WITH SPECIAL REFERENCE IN WARDHA CITY”

Submitted to
R.T.M. Nagpur University, Nagpur in partial fulfillment of the
requirement for the degree Master of Business Administration

Submitted by

Ms. RUTUJA G. GAVHALE

Under the Supervision of

Mr. ATUL
JAMBHULKAR

Under the Guidance of

Prof. S. S.
KITEY

DEPARTMENT OF MANAGEMENT STUDIES

B.D College of Engineering, Sevagram
Academic Year
2022-23

1
 CERTIFICATE

This is to certify that the investigation described in this report

“A STUDY ON MARKETING STRATEGIES OF SBI LIFE
INSURANCE WITH SPECIAL REFERENCE IN WARDHA CITY”
Has been carried out by Ms. Rutuja Gavhale. During the summer
internship project. This study was done in the organization SBI Life
Private Limited, in partial fulfillment of the requirement for the degree of
Master of Business Administration of R. T. M. Nagpur University,
Nagpur. This work is the own work of the candidate, complete in all
respects and is of sufficiently high standard to warrant its submission to
the said degree. The assistance and resources used for this work are duly
acknowledged.

Prof. S. S. Kitey Dr. R. O. Panchariya

SIP guide H.O.D

DMS, B.D.C.E, Sevagram DMS, B.D.C.E, Sevagram

Dr. G. V. Thakre

Principal

DMS, B.D.C.E, Sevagram

Date:

Place: Sevagram, Wardha

2
3
 DECLARATION

I, Ms. Rutuja Gavhale hereby declare that the work presented

in this project report has been carried out by me as bonafide student of the
Department of Management Studies, Bapurao Deshmukh College of
Engineering Sevagram. Rashrasant Tukadoji Maharaj Nagpur University
Nagpur during the academic session 2021-23.
I hereby declare that this project report entitled, - “A STUDY
ON MARKETING STRATEGIES OF SBI LIFE INSURANCE
WITH SPECIAL REFERENCE IN WARDHA CITY”

Is a bonafide authentic record of work done by me under

supervision of Prof. S. S. Kitey during M.B.A Semester-III.
The work presented here is original and not duplicated from any
other source & also not submitted earlier for any other degree / diploma
to any university.

Ms. Rutuja Gavhale.

M.B.A. Semester III
DMS, B.D.C.E
Sevagram

Date:
Place: Sevagram, Wardha

4
 ACKNOWLEDGEMENT

During the preparation and writing of this project work, the good
wishes and active help have blessed me from a very large number of
people’s. The mention of all of these people’s is well high impossible
here at this time. However, I can’t but mention a few of them for whom I
am extremely grateful.
I am extremely grateful to Prof. S. S. Kitey without whose able
guidance this project report would never have been materialized. It was
his erudite talk’s keen interest, knowledgeable and practical suggestions
that inspired me to bring out the best.
My thanks are also due to Dr. G. V. Thakre, Principal, B. D.
College of Engineering Sevagram, Wardha. Dr. R. O. Panchariya
H.O.D, Department of Management Studies, B. D. College of
Engineering, Sevagram, Wardha. For extending their great support and
inspiration throughout my project work.
Last but not the least; I would like to thanks my family and
friends for their constant encouragement and support.

Ms. RUTUJA GAVHALE.

M.B.A Semester III
DMS, B.D.C.E Sevagram

Date:
Place: Sevagram, Wardha.

5
 INDEX

Sr. No. Contents Page

Part 1 (A) Company Profile
A. Brief History
B. Management Structure
C. Marketing Strategy
D. Achievements, Awards and Latest Development
E. Products and Services offered
F. Performance and Market Share
G. SWOT analysis

Part 1 (B) Sector Overview

A) Sector Size and Major Players
B) Regulations & Regulatory bodies
C) Sector’s contribution to economy
D) Problem Faced by the sector in general and the
company in particular
E) Future potential of the sector

Part 2 (A) Actual WorkDone

A) Week-wise details of work done
B) Key- learning week-wise
1) Title of the Project allotted
2) Objective of the project
3) Research Methodology Adopted
 Sampling Method and Sample Size
 Data collection tools used
 Analysis and Interpretation of Data collected
Part 2 (B) Findings and Suggestions
Part 2 (C) Conclusion
Appendices
Bibliography

6
Part 1 (A): Company Profile:

A) Brief History
1. The company got incorporated as a public limited company in Mumbai on
11 October 2000 and received Certificate of Commencement of Business from
the RoC on 20 November 2000 and got registered with the IRDAI for carrying
out business of life insurance on 29 March 2001.

2. SBI Life Insurance is listed on BSE and NSE (Stock Exchanges in India) and
is a leading Life Insurance company in India. SBI Life started as a joint venture
with BNP Paribas Cardiff S.A, which is the life and property & casualty
insurance arm of BNP Paribas, one of the strongest banks in the world, in 2001.

3. In its initial stage its business was mainly from bank assurance channel, and
gradually developed an agent network consisting of 108261 Insurance Advisors
(IAs) and 825 offices across the country as on March 31, 2018 for selling its
life insurance products and also collaborated with other distributions channels
which include direct sales and sales through corporate agents brokers insurance
marketing firms and other intermediaries.

4. The company offers products in individual and group category which

includes savings and protection plans addressing the insurance needs of diverse
customer segments and has a comprehensive range of plans in life insurance
and pension schemes.

5. During financial year 2004-05 company's Assets under Management (AUM)

crossed Rs 1000 core mark and in January 2005 it launched unit-linked
product. In subsequent financial year of 2005-06 it became the first new
generation private life insurance company registering profit and posted profit
after tax of Rs 2.03 core for that year.

6. Its Gross Written Premium (GWP) crossed the milestone of Rs 5000 cores
and AUM crossed the milestone of Rs 10000 core and it also achieved
cumulative breakeven wiping out all accumulated losses and also its share
capital increased by Rs 500 core to Rs 1000 core during financial year 2007-08.

7. Its GWP crossed the milestone of Rs 10000 crore during financial year 2009-
10 and in 2010-11 SBI Life's branch network crossed the milestone of 500

7
branches all over country and further during the financial year 2011-12 the
company achieved the milestone of profit after tax (PAT) of Rs 500 crores as it
reported PAT of Rs 556 crore for that year declaring a maiden dividend of
5%.The company's AUM crossed the milestone of Rs 50000 crore and the total
number of branches in the country crossed 750 during the financial year 2012-
13.The company's GWP crossed the milestone of Rs 15000 crores during the
financial year 2015-16 and in the subsequent financial year in 2016-17 SBI
Life's renewal premium collection crossed the milestone of Rs 10000 crore and
during the year two companies, Value Line Pvt Ltd and McRitchie Investments
Ltd. bought stake of 1.95% each in the company from SBI.

Key people:

 Mahesh Kumar Sharma as MD and CEO

 Anand Pejawar as President-Operations, IT and International Business.

Brand Analysis of SBI Life Insurance:

 Parent Company: State Bank of India & BNP Paribas Cardiff

 Category: NBFC
 Sector: Banking & Financial Services
 Tagline/ Slogan: With Us, You’re Sure
 USP: JV between Strong Insurance Expertise and Largest Banking
customer base.

SBI life Insurance STP:

 Segment: Personal and Group Insurance

 Target Group: Urban and Rural Investors
 Positioning: Complete Insurance and financial solutions

8
 B) Management Structure of SBI LIFE:
SBI Life Insurance Company Ltd. Company Management Team:

Board Of Directors
Name Designation
Mr. Rajnish Kumar Chairman
Mr. Deepak Amin Independent Director
Mr. Ravi Rambabu Independent Director
Mr. Raj Narain Bhardwaj Independent Director
Mr. Nilesh S Vikamsey Independent Director
Ms. Joji Sekhon Gill Independent Director
Mr. Mahesh Kumar Sharma Managing Director & CEO
Mr. Dinesh Kumar Khara Nominee Director

Key Executives
Name Designation
Mr. Subhendu Kumar Bal Actuary
Mr. Sangramjit Sarangi CFO & President
Mr. Vinod Koyande Company Secretary
Mr. Pranay Raniwala Compliance Officer
Ms. Seema Trikannad Executive Vice President
Mr. Anand Pejawar President
Mr. M Anand President
Mr. Ravindra Kumar President
Mr. Ravi Krishnamurthy President
Mr. Sanjeev Kumar Pujari President
Mr. Abhijit Gulanikar President- Business Strategy

9
C) Marketing Strategy of SBI Life:

SBI has been known to segment its market on the basis of the following
variables:
Geographic, Demographic, Behavioral, Psychological.
It accounts for people belonging to rural, urban, and metropolitan areas who are
either self-employed, corporate, or government employees and targets them
accordingly. It also targets students, people from poor households or lower
class who are deprived of financial and banking facilities, and finally the tech-
savvy business class for whom time is extremely important.

SBI has positioned itself as a trusted and reliable bank over the years. One that
the citizens can always rely on, and that stands for the common man. It now
also targets customers seeking value-additions with telebanking, net banking,
digital banking, etc. This is how SBI accurately segments and targets its
audience and positions itself accordingly.

In today’s times, it is also important to have a digital marketing presence, along

with using traditional channels and tools. Let’s analyze SBI’s digital marketing
presence.

SBI’s Digital Marketing Presence:

The digital presence of any company is very crucial in this fast-moving modern
world. SBI was quick to adapt itself to the technological changes and presently
has an impressive social media presence. Following are the main takeaways
from studying SBI’s digital presence:

SBI has a strong social media presence with 2 million followers on Instagram,
4.2 million followers on Twitter, 3.57 lakh subscribers on youtube with videos
having 2 crore+ views, and approximately 1.9 million followers on LinkedIn
with over 61000 employees. SBI posts regularly on its social media platforms
while consistently churning out relevant content.

They also engage with their followers by asking questions, polling them,
organizing quizzes on Instagram, etc. The company uses hashtags, especially
on Twitter, to expand its reach effectively.

Festive marketing is also successfully carried out by the bank by providing

special festive offers to customers and posting about them on their pages. And
also by wishing their customers on all festivals.

SBI has also introduced efficient digital banking methods. YONO (You Only
Need One), as mentioned previously in the blog, is an SBI integrated digital
banking platform that allows users to access a variety of financial and non-

10
financial services such as flight, train, bus, and taxi bookings, online shopping,
and medical bill payments. Customers can also access their SBI accounts
directly through the YONO app for ease of access.

The bank’s website is also very user-friendly and contains all the required
information. It was revamped from its older versions to cater to the new
generation of customers.

D) Awards, Achievements and Latest Development:

Awards and Achievements in 2021:

1. Best Covid Response- Towards Customers, Towards Employees,

Towards Communities
2. Digital Technologies - SILVER SKOCH Award
3. Insurer of the Year - Life Category
4. CSR Health Impact Awards
5. Life Insurance Provider of the Yea
6. Financial Services Company of the Year
7. India's Leading Life Insurance Company – Private

E) Products and Services offered:

I. ONLINE PLANS:

1. SBI Life -eShield Next

2. SBI Life - eWealth Insurance.
3. SBI Life - Smart Platina Assure
4. SBI Life - Poorna Suraksha
5. SBI Life - Annuity Plus
6. SBI Life - Retire Smart
7. SBI Life - Sampoorn Cancer Suraksha
8. Corona Rakshak Policy, SBI Life Insurance Co. Ltd.
9. SBI Life - Saral Jeevan Bima

11
II. PROTECTION PLANS:

1. SBI Life - eShield Next

2. SBI Life - Saral Jeevan Bima
3. SBI Life - Poorna Suraksha
4. SBI Life - Sampoorn Cancer Suraksha
5. Corona Rakshak Policy, SBI Life Insurance Co. Ltd.
6. SBI Life - Smart Shield
7. SBI Life - Smart Swadhan Plus
8. SBI Life - SaralSwadhan+
9. SBI Life - GrameenBima

III. WEALTH CREATION WITH INSURANCE:

1. SBI Life - eWealth Insurance

2. SBI Life - Smart InsureWealth Plus
3. SBI Life - SaralInsureWealth Plus
4. SBI Life - Smart Wealth Builder
5. SBI Life - Smart Wealth Assure
6. SBI Life - Smart Power Insurance
7. SBI Life - Smart Elite
8. SBI Life - Smart Privilege

IV. RETIREMENT PLANS:

1. SBI Life - Retire Smart

2. SBI Life - Annuity Plus
3. SBI Life - Saral Retirement Saver
4. SBI Life - Saral Pension

V. CHILD PLANS:

1. SBI Life - Smart Champ Insurance

2. SBI Life - Smart Scholar

VI. SAVING PLANS:

1. SBI Life - Smart Platina Assure

2. SBI Life - New Smart Samriddhi

12
 3. SBI Life - Smart Future Choices
4. SBI Life - ShubhNivesh
5. SBI Life - Smart Bachat
6. SBI Life - Smart Humsafar
7. SBI Life - Smart Platina Plus
8. SBI Life - Smart Swadhan Plus

VII. MONEY BACK INCOME PLANS:

1. SBI Life - Smart Money Back Gold

2. SBI Life - Smart Money Planner
3. SBI Life - Smart Income Protect

VIII. GROUP LOAN PROTECTION PLAN:

I. SBI Life - RiNn Raksha

IX. GROUP MICRO INSURANCE PLAN:

4. SBI Life - Grameen Super Surksha

X. CORPORATE SOLUTION PLAN:

1. SBI Life - Kalyan ULIP Plus
2. SBI Life - Cap Assure Gold
3. SBI Life - Pradhan Mantri Jeevan Jyoti Bima Yojana
4. SBI Life - Sampooran Suraksha EE Brochre
5. SBI Life - Sampooran Suraksha NEE Brochre
6. SBI Life - Swarna Jevaan Plus

13
F) Performance and Market Share:

Performance:

SBI Life Insurance Co. Ltd’s March quarter performance has given
credence to the recent sharp gains in the company’s share price, despite the
impact of the second wave of covid-19 infections. SBI Life reported 63%
growth in value of new business (VNB) and an expansion of VNB margin to
22.2%. On both these metrics, the company exceeded analysts’ expectations.
Ergo, most have increased their expectations for the next year, citing the
healthy growth trajectory of the company and its conservative assumptions
behind margins. The life insurer reported 46% growth in business on an
annualized premium equivalent (APE) basis. Of course, Q4 growth figures are
inflated largely due to a low base. For instance, the 46% increase in retail APE
for the quarter is due to the 13% contraction in the corresponding quarter last
year. Nevertheless, analysts at Jefferies India Pvt. Ltd point out that on a
compounded annual growth rate (CAGR) basis, SBI Life saw healthy 13%
growth in total APE in the past two financial years. A large part of this growth
has come in from a surge in non-participatory products, while the share of
protection has remained unchanged. Market-linked products, too, have shown
strong 47% growth for FY21, and they remain the biggest segment in the
portfolio.

14
15
Market share:

SBI Life Insurance Company Limited (SBI Life), established in 2001, is a

joint venture between State Bank of India (SBI) and BNP Paribas Cardif S.A.
and is one of the leading life Insurance companies in India. SBI has an
unrivalled strength of over 22,414 branches across the country making it the
largest banking group in India. BNP Paribas Cardif S.A. is the life and property
& casualty insurance arm of BNP Paribas, one of the strongest banks in the
world. SBI Life offers a comprehensive range of life insurance and pension
products. The company offers individual and group products, which include
savings and protection plans to address the insurance needs of diverse customer
segments. SBI Life has a multichannel distribution network comprising of an
expansive Banc assurance channel with SBI and agent network comprising of
1, 08,261 Insurance Advisors (IAs) as on March 31, 2018. The company's other
distributions channels include direct sales and sales through corporate agents,
brokers, insurance marketing firms and the intermediaries. As on March 31,
2018, the company had a widespread network of 825 offices across the
country.

SBI LIFE INSURANCE COMPANY LTD SHARE HOLDINGS:

(As on 1 Sept 2021)

Description Percent of Share (%)

Promoters 55.7
Mutual Funds/Uti 8.6
Non-Institution 7.43
Fi/Banks/Insurance 0.07
Government 0
FII 0

According to the current statistics of BUDGET 2021 from Financial Express

SBI LIFE INSURANCE has 0.07% investment in Banking and Insurance
Sector.

16
G) SWOT Analysis

SBI life Insurance Strengths:

Below are the Strengths in the SWOT Analysis of SBI life Insurance:
1. Leverages SBI’s largest customer base for cross selling its product.
2. Multi-layer Distribution channel.
3. SBI life has over 7,000 on-roll employees and 75,000 agents.
4. Strong Presence across India.
5. SBI Life Insurance has an authorized capital of Rs2, 000 crore (US$405.6 million)
and a paid up capital of Rs1, 000 crore (US$202.8 million.
6. State Bank Group has the unrivalled strength of over 18,000 branches across the
country.

SBI life Insurance Weaknesses:

Here are the weaknesses in the SBI life Insurance SWOT Analysis:
1. Managing a huge number of people is a concern.
2. Cases of fraud have tarnished image.

SBI life Insurance Opportunities:

Following are the Opportunities in SBI life Insurance SWOT Analysis:
1. Growing rural market potential.
2. Group Insurance through large employers.
3. People willing to invest more to secure their future.

SBI life Insurance Threats:

The threats in the SWOT Analysis of SBI life Insurance are as
mentioned:
1. Economic crisis
2. Entry of new NBFCs in the sector
This article has been researched & authored by the Content & Research Team.
It has been reviewed & published by the MBA School Team. The content on
MBA School has been created for educational & academic purpose only.
Similar analysis has also been done for the competitors of the company
belonging to the same category, sector or industry. Browse marketing analysis
of more brands and companies similar to SBI life Insurance. This section
covers SWOT Analysis, Competitors, Segmentation, Target Market, and
Positioning& USP of more than 2500 brands from over 20 industry sectors.

17
Part 1 (B): Sector Overview:
A) Sector Size and Major Players:
In India, the overall market size of the insurance sector is expected to US$ 280
billion in 2020.The life insurance industry is expected to increase at a CAGR of
5.3% between 2019 and 2023. India’s insurance penetration was pegged at
4.2% in FY21, with life insurance penetration at 3.2% and non-life insurance
penetration at 1%. In terms of insurance density, India’s overall density stood
at US$ 78 in FY21.
The market share of private sector companies in the general and health
insurance market increased from 47.97% in FY19 to 48.03% in FY20. In the
life insurance segment, private players held a market share of 33.78% in
premium underwritten services in FY20. In FY22*, premiums from new
businesses of life insurance companies in India stood at US$ 9.8 billion and
renewable premium stood at US$ 53.7 billion.
In India, gross premiums written of non-life insurers reached US$ 26.52 billion
in FY21 (between April 2020 and March 2021), from US$ 26.49 billion in
FY20 (between April 2019 and March 2020), driven by strong growth from
general insurance companies. Gross direct premium of non-life insurance
companies
Rose 11.4% on a yearly basis to Rs. 12,316.50 crore (1.6 billion) in May 2021.
The general insurance industry is expected to increase by 7-9% in terms of
gross direct premium income in FY22, backed by healthy growth from the
health and motor segments.
Six standalone private sector health insurance companies registered a jump of
66.6% in their gross premium at Rs 1,406.64 crore (US$ 191.84 million) in
May 2021, as against Rs. 844.13 crore (US$
115.12 million) earlier. In March 2021, health insurance companies in the non-
life insurance sector increased by 41%, driven by rising demand for health
insurance products amid COVID-19 surge.
In July 2021, non-life insurers’ premium, which include general, standalone
and specialized public-sector, recorded 19.46% YoY growth and reached Rs.
20,171.15 crore (US$ 2.71 billion) against Rs. 16,885 crore (US$ 2.27 billion)
in the same month last year.
According to S&P Global Market Intelligence data, India is the second-largest
insurance technology market in Asia-Pacific, accounting for 35% of the US$
3.66 billion InsurTech-focused venture investments made in the country.
18
Investments and Recent Developments:
The following are some of the major investments and developments in the
Indian insurance sector.
In FY21, LIC achieved a record first-year premium income of Rs. 56,406
crore (US$ 7.75 billion) under individual assurance business with a 10.11%
growth over last year.
In August 2021, ICICI Prudential Life Insurance tied up with the National
Payments Corporation of India (NPCI) to provide a unified payments interface
auto pay.
In August 2021, ICICI Lombard General Insurance introduced extensive
coverage for remote piloted aircraft, particularly drone operators. This product
protects the drone, as well as the payload (camera/equipment) attached to it,
against theft, loss, or damage, and third-party liabilities.
In July 2021, Med Pay, a Bengaluru-based B2B tech start-up, built an API
infrastructure that connects healthcare service providers, standalone clinics,
pharmacies, labs and insurance companies through its Med Pay Connected
Care Network (CCN).
In June 2021, Bharti AXA Life Insurance reported a 10% renewal premium
increase of Rs. 1,498 crore (US$ 200.64 million) in FY21.
In June 2021, LIC Housing Finance announced plans to raise ~Rs. 2,334.69
crore (US$ 312.43 million) through preferential issue of equity shares to the
Life Insurance Corporation of India (LIC).
On July 1, 2021, the LIC introduced its Saral Pension Scheme, which is a
non-linked, nonparticipating, single premium, individual immediate annuity
plan.
In July 2021, Gallagher announced plan to acquire 100% stake in India’s
Edelweiss Gallagher Insurance Brokers.
In June 2021, Aditya Birla Sun Life Insurance announced the launch of a new
Vision Life Income plus Plan that will provide guaranteed regular income plus
flexible bonus payouts to Policyholders.
In June 2021, Ward wizard Group ties up with Bajaj Allianz to offer
insurance policies to Joy e-Bike customers.
In May 2021, Max Life Insurance Co. Ltd. launched ‘Max Life Saral
Pension’, a non-linked, individual immediate annuity plan.
In March 2021, health insurance companies in the non-life insurance sector
increased by 41%, driven by rising demand for health insurance products amid
COVID-19 surge.

19
Government Initiatives:
The Government of India has taken number of initiatives to boost the insurance
industry. Some of them are as follows:

In August 2021, the Parliament passed the General Insurance Business
(Nationalization) Amendment Bill. The bill aims to allow privatization of state-
run general insurance companies.
Union Budget 2021 increased FDI limit in insurance from 49% to 74%.
India's Insurance Regulatory and Development Authority (IRDAI) has
announced the issuance, through Dig locker, of digital insurance policies by
insurance firms.
Under the Union Budget 2021, Finance Minister Nirmala Sitharaman
announced that the initial public offering (IPO) of LIC will be implemented in
FY22, as part of the consolidation in the banking and insurance sector. Though
no formal market valuation has been undertaken, LIC’s IPO has the potential to
raise Rs. 1 lakh crore (US$ 13.62 billion).
In June 2021, the government extended a Rs. 50 lakh (US$ 66.85 thousand)
insurance coverage scheme for healthcare workers across India until the next
one year.
In February 2021, the Finance Ministry announced to infuse Rs. 3,000 crore
(US$ health of companies).
Under Union Budget 2021, fund of Rs. 16,000 crore (US$ 2.20 billion) has
been 413.13 million) into state-owned general insurance companies to improve
the overall financial allocated for crop insurance scheme.

20
B) Regulations & Regulatory Bodies:

IRDAI –It is the regulatory body for the insurance sector.

The Insurance Regulatory and Development Authority Act, 1999
An Act to provide for the establishment of an Authority to protect the interest
of holders of insurance policies , to regulate , promote and ensure orderly
growth of the insurance industry .

Objective 1 To protect the interest of and secure fair treatment

To policy holders.

Objective 2 To bring about speedy and orderly growth of the

Insurance industry.

Objective 3 To ensure speedy settlement of genuine claims to

Prevent insurance frauds and other malpractices.

To promote fairness transparency and orderly

Objective 4 Conduct.
In financial market dealing with insurance.

Central government may appoint notification and establishment of rules and

regulations is the purpose of this Act as an Authority, to be called the
‘Insurance Regulatory and Development Authority of India’.

C) Sector’s Contribution To Economy:

SBI Life Insurance increased its market share of New Business Premium
generated among private life insurers in India from 15.87% in Fiscal 2015 to
20.04% in Fiscal 2017. Between Fiscal 2015 and Fiscal 2017 the Company's
New Business Premium generated increased at a CAGR of 35.45% which is
the highest among the top five private life insurers (in terms of total premium
in Fiscal 2017) in India.
In Fiscal 2017 SBI Life Insurance enjoyed a market share of Individual
Rated Premium of 20.69% among private life insurers in India and 11.16% of
the entire life insurance industry in India. Between Fiscal 2015 and Fiscal 2017

21
its Individual Rated Premium increased at a CAGR of 37.90 % the highest
among the top five private life insurers (in terms of total premium in Fiscal
2017) in India.
The Company has also issued the highest number of individual life
policies annually among the top five private life insurers (in terms of total
premium in Fiscal 2017) in India since Fiscal 2014.As of June 30 2017 SBI
Life had a comprehensive product portfolio of 37 individual and group
products including a range of protection and savings products to address the
insurance needs of diverse customer segments. Its individual products include
participating products non-participating protection products other non-
participating products and unit-linked products which contributed 10.77%
0.95% 1.69% and 50.36% respectively of its New Business Premium in Fiscal
2017; while its group products include credit life group protection products
other group protection products group fund management ('Group FM') products
and other group products which contributed 2.72% 1.14% 31.73% and 0.65%
respectively of its New Business Premium in Fiscal 2017.
There was no fresh issue of shares by the company. The stock debuted on
BSE at Rs 733.30 on 3 October 2017 a premium of 4.75% compared to the IPO
price of Rs 700 per share. On 24 September 2018 SBI Life Insurance Company
Limited announced that it has been informed by BNP Paribas Cardif SA (BNP
Paribas Cardif) that BNP Paribas Cardif may consider reducing its
shareholding in the company to ensure compliance with minimum public
shareholding requirements in accordance with applicable law.
Objective

During the year 2018 the Company collected New Business Premium of
Rs. 109.66 billion comprising of Rs. 68.42 billion from Banc assurance' which
represents company's largest distribution network Rs. 27.48 billion from Retail
Agency and Rs. 13.76 billion from other distribution channel including direct
sales by non-bancassurance corporate agents brokers micro agents common
service centers (CSC) insurance marketing firms (IMFs) and Web aggregators.
During the FY 2018 the Company had completed its Initial Public Offer ('IPO')
by way of an Offer for Sale (OFS) of 120000000 equity shares of face value of
Rs. 10 each of the Company at Offer Price of Rs. 700 per equity share
aggregating to Rs. 83.89 billion by the Selling Shareholders' State Bank of
India and BNP Paribas Cardif S.A. of 80000000 equity shares and 40000000
equity shares respectively. The shares of the Company were listed on National
Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited
(BSE) on October 3 2017.

22
D) Problem Faced By The Sector In General And The Company
In Particular:
6 Biggest Problems or Challenges Faced by Insurance Companies in
general and particular:
1. Lack of trust:
This is a reason why many individuals don`t bother with insurance.
Many insurance firms fail to pay claims, and they don`t own up to offering
some benefits. Therefore, most people just see insurance as one of the
unnecessary expenses. Many insurance firms do shut down because of financial
challenges and individuals who are the victims of the loss don`t even think
twice about purchasing insurance policies.

2. Competition:
Today, there are many insurance firms on the market and therefore
there is an intensive challenge for insurers. Each company looks for the best
way of selling their insurance products in the best possible way and targets a
particular group of individuals. Most insurance businesses, especially the new
ones are the most doubted companies. In fact, most people trust some of the
existing insurance firms compared to the new businesses since the new
enterprises are operated on a thin line between failure and success—and no one
will want to take such risks with the little among of money that they have.

3. Mismanagement:
As the owner of the insurance business, one is solely responsible for all
issues that his or her clients may have regarding the management of the
insurance business. All insurance firms that are mismanaged can`t hide their
faults for a longer time without the clients noticing. As time move, there will be
a constant increase in the number of clients` complaints, and if his or her
insurance firm is not transparent, then he or she will lose more customers. Also,
incompetent management may cost the company a lot, particularly if they have
poor communication with their clients. In case an individual`s premiums are
high, he or she should not advertise. They should look for a market for that
policy instead of lying to the general public or even form strategies whereby
the clients cut on expenses like providing no-exam life insurance quotes.

4. Economic Instability:
When the country`s economy is down, all insurance companies will be
affected. At such situations, the rates can be affected such that the insurance

23
companies might be forced to increase their rates, just like interest rates on
credit facilities provided by financial institutions. Of course, no client will
appreciate this, even if it is stated clearly in the contract that the insurance rates
might change from time to time. Therefore, such situations might create a bad
image for a company since costumers can spread the information about a
service or product they were not happy with very fast.

5. Weak Manpower:
Non-professionals run many of the insurance companies today. In fact,
many people think that what it takes to be an insurance professional is just
some knowledge of monetary studies with no specialized training. Indeed, this
has majorly affected the dependability and operations of insurance firms in this
century.

6. Excessive politicization of the insurance industry:

Without a doubt, politics play a significant role in insurance companies`
operations depending on the power play & calculations that are dominant in the
operating domains of the insurance firms. The premiums to pay, the outcomes
of risk investigations, and the damages and benefits to pay depend on political
conspiracy sometimes. These are some of the biggest challenges that are faced
by insurance companies. They include mismanagement, economic instability,
lack of trust, and competition among others.

E) Future Potential Of The Sector:

Road Ahead to the future of Insurance Sector:

The future looks promising for the life insurance industry with several
changes in regulatory framework which will lead to further change in the way
the industry conducts its business and engages with its customers.
The overall insurance industry is expected to reach US$ 280 billion by
the end of 2021. Life insurance industry in the country is expected to increase
by 14-15% annually for the next three to five years. The scope of IoT in Indian
insurance market continues to go beyond telematics and customer risk
assessment. Currently, there are 110+ InsurTech start-ups operating in India.
Demographic factors such as growing middle class, young insurable population
and growing awareness of the need for protection and retirement planning will
support the growth of Indian life insurance.

24
Part 2 (A): Actual Work Done:
A) Week-wise details of work done:
Week 1: Assignment I:
General:
1) Introduction & Information of SBI LIFE INSURANCE
2) Market competitors
3) Life Insurance Products
4) Working Style of SBI LIFE INSURANCE
5) SBI LIFE share with banks
6) What is ULIP, Traditional Plans?
7) What is saving and Protection Plans
8) Types of Insurance
9) Insurance Act and IRDAI Association
10) Difference between Life Insurance and General Insurance
11) Different Insurance Acts
12) What is Reinsurance?
13) Principals of Insurance
14) Importance of Insurance to Trade & Industries

Week 2: Assignment II:

Operations:
1) Policy Servicing
2) Assignment of Policy
3) Nomination of Policy
4) Surrender of the Policy
5) Survival Benefit and Money Back
6) Policy Claims
7) Policy Renewals
8) New Business
9) Free Look Cancelation
10) Electronic Clearing Services
11) Audit/Tax Statement
12) Fund Value Statement
13) Commission Statement & Form No. 16
14) Fund Switch

25
Practical Task 1:
To Establish New Life Mitra’s and convince them to be a part of SBI LIFE
Insurance Private Limited.

Week 3: Assignment III:

Practical Task 2:
To Generate New Policy Accounts and Sale Policies To Minimum 5
Customers.

B) Key- learning week-wise:

i. Teamwork:
The first thing we need to mention is definitely team work. Your internship
experience is unlike your college project where one person did all the work and
the grades were shared among the rest. Here, it is more professional and each
one in a team needs to work together to finish the task. In an internship, you
learn to work as a team without focusing entirely on yourself. You also develop
patience in situations when you disagree with another member(s) of the team.

ii. Problem Solving Skills:

What real-life problems have you solved till now other than to decide what to
wear the next day and how to dodge the upcoming assignment deadline? An
internship introduces you to real-life work problems and hence develops your
problem- solving skills.

iii. Work Ethics:

You won't really learn about work ethics until you are in a tangible work
environment. In college education, we are used to making excuses for late
submissions, short attendance and what not! But it is only when we are
introduced to the actual environment that we learn work ethics.

iv. Adaptability Skills:

Not everyone is adaptable from the beginning. In fact, you can refuse to be so
even during your internship experiences but the loss is yours. Being adaptive to
your surroundings easily is one of the most useful soft skills not only desirable
to employers but also important to your self-growth. So, make the most of your
internship experiences and learn some adaptability skills while you are there.

26
v. Communication Skills:
Talking of soft skills, can the importance of communication skills be ever put
into words? It's one of the top listed skills that recruiters look for in a resume
and something that can get you from bottom to top. Communicating well is a
gem of a skill which you can learn during your internship experiences.

vi. Responsibility:
Often missed out in the list of soft skills, being responsible is an integral skill
required in the job arena. Your internship experience makes you more
responsible and accountable for what decisions you make and how you execute
what's been allocated to you.

vii. Time Management:

Last on our list, but still as important as the others, is time management.
Earlier, you could just miss a class because you had some personal
commitments. During an internship which is almost the beginning of your work
life, you can't mark your absence on a regular basis. Hence, it helps you learn
to manage your time better by maintaining a balance between your work and
personal life, without harming any of them.

1) Title of the Project allotted:

“A STUDY ON MARKETING STRATEGIES OF SBI LIFE INSURANCE
WITH SPECIAL REFERENCE IN WARDHA CITY”

2) Objective of The Project:

To study the product details of SBI Life Insurance Company limited.
To study the different marketing strategy used by SBI life insurance in
Wardha city.
To study the latest trends of the SBI Life insurance company in Wardha
city.
To study the present position and satisfaction of investor in SBI Life
Insurance.
To study different sales strategies.

27
3) Research Methodology Adopted:
Research methodology is a way to systematically solve the problems. It may be
understood has a science of studying how research is done scientifically. In it
we study the various steps that all generally adopted by a research in studying
his research problem along with the logic behind them. The scope of research
methodology is wider than that of research method. Thus when we talk of
research methodology we not only talk of research methods but also consider
the logic behind the method we use in the context of our research study and
explain why we are using a particular method.

I. Sampling method and Sample Size:

 Random sampling technique was used in the survey conducted.
 50 customers

II. Data collection tools used:

Many different methodologies can be used for data collection and analysis.
Most are based around a core set of basic tools. These include interviews, focus
group discussions, observation, photography, video, surveys, questionnaires
and case studies.

III. Analysis and Interpretation of Data collected:

Manager need information, not raw data. Research helps in generating
information by analyzing data after its collection, data analysis usually involves
reducing accumulated data to a manageable size, developing summaries,
looking for pattern and applying statistical techniques. Marketing responses a
questionnaires and experimental instruments often require the analyst to derive
various functions, as well as to explore relationship among variable. In various
cases when we deal with statistics we find that the variables are related to each
other or we can also say two variables seem to move in the same direction such
as both are increasing or decreasing or even some factors tend to move in the
opposite direction. Data collected from the customers who are from Wardha is
analyzed from the customer perspective.

28
Respondent by Gender:

Table 1:- Respondent by Gender:

Sr. No. Particular No. of Percentage %

Respondent
1. Male 30 60%
2. Female 20 40%
Total 50 100%

Gender

40%
60%

Male Female

Fig 1:- Show respondent by gender

Interpretation:
The above chart shows that there were 30 male and 20 female.
M

Table 2:- show customer profile of surveyed respondent:

29
 Sr. No. Particular No. of Respondent Percentage
1. Student 10 20%
2. Housewife 15
3. Working 5 10%
Professional
4. Business 7 14%
5. Self Employed 3 6%
6. Govt. Service 10 20%
Person
Total 50 100%

Customer Profile

20% 20%

6%

14% 30%
10%

Student Housewife Working Professional

Business Self Employed Govt. Service Person
Fig 2:- Show customer profile of surveyed respondent

Interpretation:
From the above chart it can be seen that, 20% of respondents are students and
14% of the respondents are into business. And the major 30% of the
respondents are housewife. And 20% of the respondents are working as
government service person. And only 10% of the respondents are working
professional.
St

Table 3:- Factor motivates respondent to purchase insurance policy:

30
 Sr. No Particular No. of Respondent Percentage %
1 Advertisement 10 20%
2 High returns 15 30%

3 Advice from friend 7 14%

4 Family Responsibilities 15 30%

5 Other 3 6%

Total 50 100%

% of purchases insurance

6%
20%

30%

30%
14%

Advertiment High returns Advice from friend

family Responsiblities Others

Fig 3: show the factor motivates respondent to purchase insurance

Policy:

Interpretation:
From the chart above it can be seen that 30% of the respondents purchase life
insurance to secure their families. 30% get life insurance for high return. 14%
purchase insurance on the advice of their friends and 20%% purchase insurance
because of the influence of advertisements.
Advertisement
20

Table 4:- Preferred Company Type Of The Respondents:

31
 Sr. No Particular No. of Respondent Percentage %

1 Govt. owned company 23 46%

2 Public limited company 11 22%
3 Private company 10 20%
4 Foreign company 6 12%
Total 50 100%

Preferred Company Type Of The

Respondents
12%

20% 46%

22%

Govt. owned company Public limited company

Private company Foreign company

Fig 4: Show the preferred company type of the respondents

Interpretation:
From the above chart we find that, 46% respondents preferred to purchase
insurance from a government owned company. And 22% respondents preferred
to purchase insurance from a public limited company. And only 20% of the
respondents preferred to purchase insurance from a private company. And only
12% of respondents preferred a foreign based company.
G

Table 5:- Data analysis and interpretation age group of surveyed

respondent:

32
 Sr. No Age group No. of respondent Percentage %
1 18-25 years 13 26%
2 26-35 years 16 32%
3 36-49 years 7 14%
4 50-60 years 9 18%
5 More than 60 years 5 10%
Total 50 100%

Age group of surveyed re-

spondent

20%
29%

16%

36%

18-25 years 26-35 years 36-49 years

50-60 years More than 60 years
Fig 5: Data analysis and interpretation age group of surveyed
respondent
Interpretation:
From the above chart we find that, 26% of respondents fall under the age group
of 18-25 years. And 32% of respondents fall under the age group of 26 – 35
years. Only 14% respondents fall under the age group of 36 -49 years.
Therefore most of respondents are young (under 35 years) they purchase
insurance plans on the basis of its tax saving nature.
18-25 year26-

Table 6:-Annual premium paid by individuals for Life Insurance:

Sr. No. Premium paid No. of respondents Percentage

33
 1 Rs 1000 – Rs 5000 11 22%

2 Rs 5001 – Rs 10000 8 16%

3 Rs 10001 – Rs 20000 10 20%

4 Rs 20001 – Rs 30000 7 14%

5 Rs 30001 – Rs 40000 6 12%

6 Rs 40001 – Rs 50000 8 16%

7 Total 50 50 100%

Annual premium paid by individuals

16% 22%
12%
16%
14%
20%

Rs 1000 – Rs 5000 Rs 5001 – Rs 10000 Rs 10001 – Rs 20000

Rs 20001 – Rs 30000 Rs 30001 – Rs 40000 Rs 40001 – Rs 50000

Fig 6: Shows that Annual premium paid by individuals for Life

Insurance
Interpretation:
From the above chart we find that, 22% of the respondents surveyed pay an
annual premium less than Rs. 5001 towards life insurance. 16% of the
respondents pay annual premium less than Rs.10001 and 20% pay an annual
premium less than Rs.20001 .Hence we can safely say that SBI Life Insurance
would be able to capture the market better if it introduced products/plans where
the minimum premium starts at Rs. 1000 per annum. Only 12% of the
respondents pay more than Rs30001 annual premium and the most of the
products sold by SBI Life have Rs. 5000 as a minimum annual premium
amount. Only 16% of the respondents are able to pay the premium of Rs.
50000.
Table 7: - Scheme of insurance policy taken by respondent:

34
 Sr. No Schemes of Insurance No. of Respondents Percentage %

1 Whole Life 6 12%

2 Endowment Plus 4 8%
3 Money Back 7 14%
4 Pension Fund 11 22%
5 ULIP 18 36%
6 Other 4 8%
7 Total 50 100%

Scheme of insurance

8% 12%
8%

36% 14%

22%

Whole Life Endowmnet Plus Money Back

Pension Fund ULIP Other
Fig 7: Shows that Scheme of insurance policy taken by respondent:

Interpretation:
From the above chart we find that, 12% of the respondents choose whole life
insurance scheme. Only 8% of the respondents choose endowment plus plan,
and 14% choose the Money back plan, and 22% of the respondents choose
pension fund scheme. And maximum no. of respondents i.e. 36% choose ULIP
plan. And 8% of the respondents choose other scheme of insurance.
Whole Life
12%
Endowment

Table 8:-Which marketing strategy is more effective:

35
 Sr. No Marketing Strategy No. of Respondent Percentage %
1 Advertisement 15 30%
2 Digital Marketing 17 34%
3 Door to Door Visit 10 20%
4 News Paper 8 16%
5 Total 50 100%

Markrting Strategy

16%
30%

20%

34%

Advertisement Digital Marketing Door to Door Visit News Paper

Fig 8: Shows that which marketing strategy is more effective

Interpretation:
From the above chart we find that, Digital marketing strategy is very effective
among all, 34% of the respondents choose digital marketing. Advertisement is
30% effective. Door to Door visit is 20% effective and only 16% newspaper
publicity is effective.
Advertisement
30%
Digital Marketing
34%
News Paper
16%
Door to Door
Visit
20%

Meting Strategy
Table 9:- Which plan types is better in SBI Life Insurance.

36
 Sr. No Plans No. of Respondents Percentage %
1 Traditional Plans 14 28%
2 ULIP Plans 17 34%
3 Child Plans 7 14%
4 Saving Plans 12 24%
5 Total 50 100%

Better Plans in SBI Life Insurance.

24% 28%

14%

34%

Traditional Plans 2nd Qtr Child Plans Saving Plans

Fig 9: Shows that which plan types is better in SBI Life Insurance

Interpretation:
From the above chart we find that, 28% of the respondents select traditional
plans, and maximum no. of respondents select ULIP Plans, and 24% of the
respondents choose saving plans, and only 14% of the respondents choose child
plan.
Traditional Plans
28%ttttbtv

34%
Child Plans
14%

Saving Pl
Table 10:- Are you satisfied with the products and services of SBI life
insurance

37
 Sr. Satisfied with the No. of Respondent Percentage
No. product %

1 Yes 45 90%
2 No 5 10%
3 Total 50 100%

No. of Respondent satisfied with SBI

Life

10%

90%

Yes N0

Fig.10: Shows the numbers of respondents are satisfied with the SBI
Life Insurance.

Interpretation:
From the above chart we find that, the maximum no of i.e. 45% respondents
are satisfied with the products and services of the SBI Life insurance, and only
5% of the respondents are not satisfied with the SBI Life Insurance.

Part 2 (B) Findings:

38
1. All the respondent people are also known as about the life insurance that is
100%. From the analysis it is concluded that 60% male respondents and 40%
female respondents.
2. From the analysis it is concluded that, 20% of respondents are students and
14% of the respondents are into business. And the major 30% of the
respondents are housewife. And 20% of the respondents are working as
government service person. And only 10% of the respondents are working
professional.
3. From the analysis it is concluded that, 30% of the respondents purchase life
insurance to secure their families. 30% get life insurance for high return. 14%
purchase insurance on the advice of their friends and 20%% purchase insurance
because of the influence of advertisements.
4. From the analysis it is concluded that, 46% respondents preferred to
purchase insurance from a government owned company. And 22% respondents
preferred to purchase insurance from a public limited company. And only 20%
of the respondents preferred to purchase insurance from a private company.
And only 12% of respondents preferred a foreign based company.
5. From the analysis it is concluded that, 26% of respondents fall under the age
group of 18-25 years. And 32% of respondents fall under the age group of 26 –
35 years. Only 14% respondents fall under the age group of 36 -49 years.
6. From the analysis it is concluded that, 22% of the respondents surveyed pay
an annual premium less than Rs. 5001 towards life insurance. 16% of the
respondents pay annual premium less than Rs.10001 and 20% pay an annual
premium less than Rs.20001 .Hence we can safely say that SBI Life Insurance
would be able to capture the market better if it introduced products/plans where
the minimum premium starts at Rs. 1000 per annum.
7. From the analysis it is concluded that, 12% of the respondents choose whole
life insurance scheme. Only 8% of the respondents choose endowment plus
plan, and 14% choose the Money back plan, and 22% of the respondents
choose pension fund scheme. And maximum no. of respondents i.e. 36%
choose ULIP plan. And 8% of the respondents choose other scheme of
insurance.
8. From the analysis it is concluded that, Digital marketing strategy is very
effective among all, 34% of the respondents choose digital marketing.
Advertisement is 30% effective. Door to Door visit is 20% effective and only
16% newspaper publicity is effective.
9. From the analysis it is concluded that, 28% of the respondents select
traditional plans, and maximum no. of respondents select ULIP Plans, and 24%
of the respondents choose saving plans, and only 14% of the respondents
choose child plan.

39
10. From the analysis it is concluded that, the maximum no of i.e. 45%
respondents are satisfied with the products and services of the SBI Life
insurance, and only 5% of the respondents are not satisfied with the SBI Life
Insurance.

(B) Suggestions:
Need to train and develop life insurance agents with more comprehensive
knowledge and skills to counter every queries of the customer.
It is suggested that company should not left any stone unturned towards
sound advertisement and promotional measures on every section whether it is
printed, media or air via radio.
The advisors should be made aware and educated so that they can extend
their services not only in terms of collection of premium checks from the
customer but also to educate them about the insurance and the latest non-
traditional plans.

Part 2 (C) Conclusion:

The State Bank of India has certainly come a long way through its
extensive journey. Being the largest public sector bank in India, SBI has been
able to capture and retain a large chunk of the market. It is definitely no small
feat. The bank has had its fair share of ups and downs but was able to tackle
them all and maintain its reputed position. There’s no denying the fact that the
public has started shifting more towards private sector banks, but there’s
always room for growth and development. If SBI continues to adapt itself to
the changing times and technological advances, by managing to change the
perception of young professionals especially, it will surely be able to make a
permanent place in the Indian banking industry.
SBI dominate the Indian insurance industry. In today’s competitive
world, customer satisfaction has become an important aspect to retain the
customers, not only to grow but also to serve. Increase d competition, wide
range of product offering and multiple distribution channels cause companies
to value satisfied and highly profitable customers. Customer services is the
critical success factor in company and providing top notch customer service
differentiates great customer services from indifferent customer service.
The entry of private sector insurance companies into the Indian
Insurance sector triggered off a series of change of industry. Even with the stiff
competition in the market place, it is evident from the study that products offers
by SBI are creative , innovative and of liking of the customer, moreover they
are satisfied with the true knowledge provided by the company or agents and
they are easily accessible, flexible payment scheme with no hidden cost, they
there is no undue delay in claims settlement, customer are highly satisfied with
the grievance redressed mechanism, and in the near future if they will go for

40
they will stuck to SBI of India, which shows the great faith and positive
perception of the customer towards SBI of India.
Appendices:
Questionnaire:
General information:
Name..........................................................................

Gender
a) Male b) Female

Age;
a) Up to 30 b) 30-40 c) 40-50 d) Above 50

Marital Status;
a) Married b) Unmarried

Occupation;
a) Service b) Self-employed c) Home maker d) Retired e) Student

Income Slabs;
a) Up to 250000 c) From 500000 to 1000000
b) From 250000 to 500000 d) Above 1000000

Type of Family;
a) Nuclear Family b) Joint Family

No of members in Family:
a) <3 b) 4-6 c) 7-9 d) 10 Above

1) Do you know about the life insurance?

a. Yes
b. No

2) Which company Life insurance policy you have taken?

a. SBI Life Insurance
b. LIC
c. ICICI Prudential Life Insurance
d. HDFC Life Insurance
e. Any Other (Please specify)

3) Which plan types is better for you in SBI life insurance?

a. Traditional
b. ULIP Plans
c. Child plans
d. Saving Plans

41
4) According to you what are the different factors influencing you to
purchase Life Insurance?
a. Future uncertainty
b. Tax benefit
c. Education of Children
d. Saving

5) What is your purpose of purchasing life insurance?

a. Children Education
b. Retirement Benefit
c. Tax Benefit
d. Investment

6) Give reasons for insuring with SBI Life

a. Company Profile
b. Brand
c. Grievances Handling
d. Undue Delay in Claims
e. Public Sector

7) What scheme of insurance policy have you taken?

a. Whole Life
b. Endowment Plus
c. Money Back
d. Pension Fund
e. ULIP
f. Other

8) Which Marketing strategy is more effective?

a. Advertisement
b. Digital Marketing
c. Door to Door visit
d. News paper

9) Which marketing promotion is more attractive?

a. Hording
b. TV
c. News paper
d. Websites

10) Are you satisfied with the products and services of SBI life insurance?
a. Yes
b. No

42
Bibliography:
Research Methodology Management: Kothari C. R.
Marketing management: Kotler Philip
Statistical Methods: Gupta S. P.
Insurance, RBSA Publisher Jaipur: Mathew M. J.
Insurance, Sheel Write Well (P) Ltd. Jaipur: Handa Sunil

Others:
Newspaper
Magazines
Journal
Internet

Websites:
www.sbiindia.co.in
www.google.com
www.sbilife.co.in
www.irdaindia.org
www.liccouncil.org
www.businessconnect.

43