Background Of IDBI Federal

 In the year 2006, IDBI Bank, Federal Bank and Belgian-Dutch insurance major Fortis Insurance International NV signed a MoU to start a life
insurance company in India. The company received its license from Insurance Regulatory and Development Authority of India (IRDAI) in
December 2007.
 In August 2010, the company was rechristened as IDBI Federal Life Insurance Company. In 2012-13, it declared its maiden profits in record 5
years
 This company offers its services through all the branches of IDBI bank and Federal bank.

 Details about IDBI Federal

• Headquarter: Mumbai
• Chief Executive Officer: Vignesh Shahane
• Foundation Year: March 2008
• Chief Operating Officer: Lalitha Bhatia
 Products Of IDBI Federal Life
 Guaranteed Wealth Plan: A long term life insurance plan which comes with a component of savings element that assures you of guaranteed returns on
your investment
• Important Details:
• Age at entry: 10 Years
• Max age for entry: 55 years
• Minimum Premium in Rs: 35000
• Maximum Premium in RS: 200000
• Premium Payment mode: 7 Years
• Policy Term: 14 years

 Life Advantage Plan: IDBI Federal Life Insurance Life Advantage Plan is a non-linked participating life insurance plan that provides you with the twin
benefits of life cover and long-term savings.
• Important Details:
• Age at entry: 18 Years
• Max age for entry: 40 years (if policy term is 10 years) | 55 years
• Minimum Premium in Rs: 15000
• Maximum Premium in RS: No Limit
• Premium Payment mode: 5,10,15 years
• Policy Term: 10/15/20/25 years
 Products Of IDBI Federal Life
Child plan: This child plan is also known as young star advantage plan. This plan basically has two parts , they are proposer and insurer so
here the proposer are the parents of the child and insurer are the child who actually get all the benefits of the plan, by this plan child can get
a tax benefit in his near future.
• Important Details:
• Age at entry: 18 Years
• Max age for entry(Regular): 40 years
• Max age for entry(limited payment term): 45 years
• Minimum Premium in Rs: 18000
• Premium Payment mode: Regular(equal to policy term), Limited payment(5 years less than the policy term)
• Policy Term: 11,15,20 years

 ULIP Plan: This is market linked plan, actually this plan is also called smart Growth plan
• Important Details:
• Age at entry: 1month (min) | Plus 45 years (max)
• Max age for entry: Prime 55 years (max)
• Minimum Premium in Rs: 50000(for 5 years) | 35000 (10/15/20 years)
• Policy Term: 5/10/15 years
 Marketing Metrics For IDBI Federal Life

Threat of New
Entrants
1.Difficult to introduce new
Life Advantage brand.
Child Plan 2.Also Need special permission
High

from government

Suppliers
Rivalry
Buyers Power Power
Market Growth

1.Rivalry is stiff
1.Highly segmented 2.All insurance 1.Policy designer
GWP ULIP market companies have the tend to have less
2.Buyers have lot of same policies. leverage to bargain
option to choose over premium.
their service provider 2.Insurance is a tax
exempted product.
Low

High Low
Threat of
Market Share Substitutes
1.Banks
2.Mutual fund companies
 Research Methodologies
• Objective: The study is intended to find the investors preference among different ages of investors. The study design is descriptive in
nature.
• Descriptive research- This is a descriptive research where survey method is adopted to collect primary data/ information from the
investors using different scales as required and the required secondary information for the analysis.
• Primary data- a structured questionnaire was prepared and the primary data was collected through the survey method and also
through face to face interaction
• Secondary data- Company website- www.idbifederal.com information from the net
• Sample size- 51 respondents. The population being large the survey was carried among 51 respondents. They will be considered
adequate to represent the characteristics of the entire population.
• Techniques for data analysis- the analysis of data collection is completed and presented systematically with the use of Microsoft
excel and R. The various graphs which were used for presentation are:
1. Bar graphs
2. Pie charts
3. Column graphs
 Analysis of Survey
Gender: Monthly Income:

Age: What Types of Investments you Preferred

Age:
 Analysis Of Survey
What is your Savings Objective What is your Investment Objective

What factors you prefer before Investment What types of Insurance policies you prefer most
 Analysis Of Survey
What types of Life Insurance brands you prefer most (except LIC) From which you heard about these brands?

What Motivates you to purchase insurance Plan Would you like to buy an insurance from IDBI Federal
 Distribution of plan types according to the income:
Distribution according to the Income:
Here we divided the whole sample in four income groups and labelled them as follows.
• From 1 Lakh to 3lakh: 1
• From 3 Lakh to 6 lakh: 2
• From 6 Lakh to 10 lakh: 3
• Above 10 lakh: 4

Distribution according to the Age:

Here we divided the whole sample in four age groups and labelled them as follows.
• Below or equal to 20
• Between 20 to 40
• Between 40 to 60
• Above 60 years
Finding the association among Age, Income, Gender with Premium:

Forward Regression
Checking of Multicollinearity
 Recommendation:

From the above analysis we have found the following recommendations for this company.
• They can focus on more advertisement to generate more leads
• Insurance policies should have a range of premiums to suit every pocket size.
• Company should penetrate in rural markets and tier 2 cities.
• Company should focus on high return policies.
• They should focus on the investors whose age is between 25-55.