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Summer Internship Project

Reliance Nippon Life Insurance

Ayush Upadhyay

Enrolment №:1-20-026

2020 – 2022
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Undertaking

I, Ayush Upadhyay, the author of the SIP titled (Intern at Reliance Nippon Life Insurance),
hereby declare that this is an independent work of mine carried out towards partial fulfilment of
the requirements for the award of the PGDM- FINANCE by Shanti Business School,
Ahmedabad, India. All views and opinions expressed in this report are my mine, and do not
necessarily represent those of the institute and Reliance Nippon Life Insurance.

Signature of the Student: _________________

Name of student : Ayush Upadhyay .
Enrolment №: : ____1-20-026_____
Date : 19 July 2021
Place : Ahmedabad
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Acknowledgments

I Ayush Upadhyay, would like to take this opportunity to express my deepest gratitude to my
faculty guide Prof. Anurodhsingh Khanuja, for the continuous support and follow up during the
entire process of SIP without which the successful completion of SIP would not have been
possible.

I would also like to express my sincere gratitude to my industry guide Mr Rajesh Sivakula Sir,
for his valuable support and guidance at the organisation and thus helping me in the successful
completion of the SIP.

I am also grateful to our institute Shanti Business School (SBS) and its director Dr. Neha Sharma
for providing us with this wonderful opportunity to work in the corporate sector and thus
providing us with the first-hand experience to understand the corporate sector by being a part of
it.

Finally, I would like to thank the placement team at SBS Mr. Kartik Iyer and Ms. Pooja Konnar
for working tirelessly to place us in our desired organisation with good project(s).
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Table of contents

Chapters Page No.

1 Executive Summary 6
2 Introduction 7-8
3 Literature Review 9-10
4 Industry Introduction 11-23
5 Company Introduction 24-31

6 Details of task 32-33

7 Research and analysis 34-42

8 Limitations and Achievement 43

9 Strategy 44-47

10 Bibliography 48

11 Annexure 49-51
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Acronyms

Acronym Full Form

SBS Shanti Business School
PESTLE Political, economic, socio-cultural, technology, legal,
environmental
FM Finance Minister
GOI Government of india
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EXECUTIVE SUMMARY

Reliance The Nippon Life Insurance Company is one of India’s leading insurers. The company
was formed by the combination of Nippon Life Insurance and Reliance Capital, and it offers its
customers a diverse range of products In India, there are 24 insurance firms, with LIC having the
largest market share (approximately 60-70 percent before the COVID pandemic), indicating that
Indians prefer public corporations to private companies. After the COVID pandemic, however,
the situation had altered. Only 8-10% of Indians have health insurance, but as a result of the
pandemic, that number has risen, and the private sector’s market share has grown.
The report includes information about the firm and the insurance industry, such as an
introduction, literature review, and products, as well as a full analysis of the company. I
conducted a PESTLE and SWOT analysis of the company to determine the elements that have an
impact on the company and the insurance industry.
Another analysis is of the customer perception on investing in mutual fund and stock market.
The analysis gives the insight about the factors influencing the customer on investment. The
research that I have conducted is primary research and secondary as well. In the primary research
I have formed the questionnaire on the basis of different parameter such as gender, age,
qualification, risk tolerance, etc.
The purpose of choosing this issue is to gain insight into client perceptions of various
investments such as insurance, mutual funds, and the stock market. Another purpose is to
conduct a thorough analysis of the company to determine how various variables affect it.
Through this investigation, I’ve learnt that educational attainment and gender have a significant
impact on investment decisions, because the greater one’s knowledge of financial products, the
greater one’s risk tolerance. Because there are numerous products with varied risk capacities, the
project informs us about what factors to consider while investing.
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Introduction
In the Indian stock market, investors play a critical role. Individual investor behaviour cannot be
overlooked because they account for a larger share of investments and earnings. The above study
is undertaken to understand the behaviour of the investor toward share market and mutual fund.
The primary focus is on the quality of investors’ decisions and their attitudes about stock market
investing. The fundamental motivation of investors who engage in investment is to maximise
their earnings while minimising their expenses. Investors’ logical behaviour leads them to divide
their income between spending and saving. When the probability of profit and loss is factored
into the investment process, investors’ decision-making becomes more difficult. A well-framed
and structured questionnaire is a tool used to learn about the perspectives of stock market
investors. In this unpredictable market, investors’ perceptions and attitudes toward the stock
market fluctuate over time. Taking this into account, this study was conducted to better
understand investor behaviour and to learn about investor awareness, taste, and preferences for
various investment routes.
The Indian capital market has been tremendously changed during last few years. Many
developments have been taking place in the Indian money market and capital market and the
economy has been opened up with the reforms in financial sector, industrial policy, public sector,
etc. Indian economy stands at around $2.7 trillion as on 2020 and the government set a target of
$5 trillion economy by 2030. Moreover SEBI the regulatory body for securities and commodity
market in India made reforms to run the market smoothly and to protect the small investor from
the high speculation. The Indian capital market has a high growth potential. FDI and FII investor
attract toward India because India is a developing country and many Unicorn were come from
India which are competing at global level.

The investors are more inclined toward market due to the pandemic crises. Most of the people
have started investing in mutual fund and direct into stock market.
The mutual fund is a collection of stocks and bonds. When you buy a mutual fund, you are
pooling your money with a number of other investors which enables you to pay a professional
manager to select specific securities for you.
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When you buy stocks this means you are the owner of the company and you will have right to
vote in the meeting. The stocks are volatile in nature and fluctuate daily.

Talking about the pandemic situation the number of people who directly invested in the stock
market in India had increased but there is a big threat that the people who had opened the
DEMAT account don’t know to trade they are just doing speculation. Many sector like
healthcare, pharmaceutical, IT, Infra, Financial etc. these sector companies seen a huge growth.
Many of the big researchers come to the conclusion that BSE Sensex will hit 100000 in the
year2025. Till the year 2030, more than two-thirds of world’s investment and half of gathered
capital stock will be in the developing countries. India is the country which has huge potential in
its manpower and physical resources.
The main focus of stock trading in India is on the companies that are registered with the Bombay
Stock Exchange (BSE) and the National Stock Exchange (NSE). The Bombay Stock Exchange is
the symbolic head of the stocks trading in India. Another stock exchange in India the National
stock exchange is the 9th largest stock exchange in the world by market capitalization and largest
in India by daily turnover and number of trades, for both equities and derivative trading.
Indian investors are more conservative, they do not change easily. But Internet traders are more
comfortable with online trading because of its transparency and complete control over the
terminal.
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Literature review

“Derivative Trading in Indian Stock Market: Broker’s Perception” found that high net worth
individuals and proprietary traders contribute to the major proportion of trading volumes in the
derivative segment a study by Sandeep Srivastava, Surendra S Yadav and P K Jain (2008).
The study conducted by Yingzi Xu, Robert Goedegebuure and Beatrice van der Heijden (2006)
on “Customer Perception” found that service quality has a direct effect on the customer
satisfaction.
Fellner & Maciejovsky (2007) reveal a systematic correlation between gender and risk attitudes.
Further Fellner & Maciejovsky (2007) find that women prefer less volatile investments and
exhibit lower market activity.
Ippolito (1992) stats that investor is ready to invest in those fund or schemes which have resulted
good rewards and most investors’ is attracted by those funds or schemes that are performing
better over the worst.
Elankumaran and Ananth(2013) to explore the factors influencing the behaviour of investors
towards commodity market in India. The study states that Four major factors have greater
influence on the behavior of investors, viz., low risk, informational asymmetry, high return and
objective knowledge.

Bhushan and Medury(2013) to analyze the gender differences in investment behaviour among
employees. The study state that there is a significant gender diffrences that ocurres in the
investment prefrencesof health insurance and market investment among employees.

Brahmabhatt kumara and malekar(2012) to determine the investment prefrences of the investor
and the investment for the same. This study state that the people save the money as well as they
want high interest rate at low risk coverage in shorter span.

Sultana ans parasaradhi(2012) to nalyze and identify the factors influencing the india individual
investors while choosing stocks for investment.
Individual Eccentric, Wealth Maximization, Risk Minimization, Brand Perception, Social
Responsibility, Financial Expectation, Accounting information, Government and Media, are the
factors influencing the behavior of Indian individual equity investors.
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Suman and warne(2012) to understand the behaviour of individual investor in stock market,
specially their attitude and perception towards stock market.

The respondents integrate the objectives of saving, the factors influencing the saving and the
sources of information for decision making. Today’s investors are fully aware about the stock
market. The market movements affect the investment pattern of investors in the stock market

N. Nandhini Devi, Dr. A. Velanganni Joseph (2017) to examine the investment behaviour
exhibited by mutual fund investors.
P. Hnaumantha Rao and Vijay KR. Mishra (2007) in their article “Mutual Fund: A Resource
Mobiliser in Financial Market” made a critical study of the role performed by Mutual Funds as a
financial service in Indian Financial Market.

An empirical study of “Indian Individual Investors Behavior” by Syed Tabassum Sultana (2010)
was an attempt to know the profile of the investors and also to know their characteristics so as to
know their preference with respect to their investments. The study also tried to unravel the
influence of demographic factors like gender and age on risk tolerance level of the investors.

International journal of management(2020) study on the perception of investor towards

investing in mutual fund by parul mittal.
Singh and Jha (2009) conducted a study on mutual fund awareness and acceptability and
discovered that customers like mutual funds because of their return potential, liquidity, and
safety, but they were unaware of the systematic investing plan.
Baral (2016) studied the evolution of mutual funds in India and nalysed the growth trend of the
mutual funds industry.
Sanjay & Raj (2019) tried to study the chronological evaluation of mutual fund industry and
growth in AUM, Investor Accounts, Investor wise (Retail & HNI) growth rate, Scheme wise
growth rate in investor accounts. They found that MF Industry is growing in terms of AUM and
scheme-wise policy is also increasing but there is negative correlation between equity n debts.
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INDUSTRY INTRODUCTION

The insurance in India has a history of more than thousands of years. Insurance is described in
Rig-Veda, in that time they used to pool out resources in the time of natural calamities. In India
Calcutta, the first life insurance came from England in the year 1818, Oriental Life Insurance
Company. The insurance industry in India has 57 insurance companies in which 24 operate as
life insurance business and 33 are in non-life insurers out of these 7 are public sector companies.
The insurance companies in India are regulated by Insurance development authority of India; it is
the custodian to all the insurance consumer rights in India. The insurance industry is one of the
basic service industries in the world and deals to indemnify a person contingent risk that is
related life health, wealth. In India insurance industry is running with multinational companies
for ex. PNB-MetLife, ICICI Prudential, reliance Nippon, etc.
According to the report of brand equity foundation, the Indian insurance companies have huge
potential and expected to increase with a rate of 5.3% CAGR between 2019 to 2023, health
insurance in non-life insurance sector is increased by 41%, this rise in demand occurs because of
covid-19 surge. In the year 2021FY the premium from life insurance business and non – life
insurers stood at US$31.9 billion and US$26.52 billion. The overall insurance industry is
expected to reach US$ 280 billion by the end of 2020. Life insurance industry in the country is
expected to increase by 14-15% annually for the next three to five years.
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What is Insurance?
Insurance can be defined as a social tool for reducing the risk of death or property loss. Insurance
is the process of a group of people pooling their resources to take on a risk. Insurance is a
financial tool that spreads the risks and losses of a few people throughout a big group of people,
because people prefer a modest fixed obligation to a large variable liability. Insurance can be
defined as a “legal contract between two parties whereby one party called insurer undertakes to
pay a fixed amount of money on the happening of a particular event, which may be certain and
uncertain”. The other party called insured pays in exchange a fixed sum known as premium. It
provides compensation for the losses suffered due to uncertain events. Basically there are three
party in insurance one is insurer, insured and the policy holder.

Importance of Insurance
One of the most important parts of the financial market is insurance. Insurance services play a
significant role in the financial intermediary process. In today’s India, the insurance industry is
the fastest growing. The insurance industry has a lot of potential. Because there is continual
development in the insurance business in India, the scope of the study will be fairly broad. Right
now the insurance industries have a huge potential in countries like India because of high
population. Also the penetration in India is low in both life and non-life insurance.
As per the union budget 2019-20 the FDI of 100% was permitted to the insurance intermediaries.

Advantages of insurance in india

Tax incentives on insurance products
Insurance bill gives the IRDAI full flexibility to frame regulations of the sector.
Clarity on rules for insurance IPOs would infuse liquidity in the industry.
Making the sector more lucrative for the foreign participants.
IRDAI set up a plan to develop a standard structure for title insurance for home buyers, which is
mandatory for RERA projects.
Growing use of internet has pushed the demand and also seen the interest among the people in
insurance that are aiding growth in it.
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OPPORTUNITIES
 Strong growth in the automotive industry over the next decade will be a key driver of
motor insurance .Automobiles sale in India increase data CAGR of 1.29% between
FY16-FY20 with 21.55million vehicles being sold in FY20.
 The proposed IRDAI draught calls for a 10-80% increase in premium rates for the once-
profit-making third-party automobile insurance
 Insurance providers now cover only 1.5-2.0 percent of overall healthcare cost in India.
Only 18% of persons in urban areas and 14% of people in rural regions are covered by
any type of health insurance.
 Introduction of health insurance portability expected to boost the orderly growth of the
health insurance sector.
 Building and other construction employees, licenced railway porters, street vendors, and
MGNREGA workers, among others, are covered under the RSBY plan, which is a
centrally sponsored scheme that provides health insurance to BPL families and eleven
other defined categories of unorganised workers.
 Over 53.8 million famers were benefitted under Pradhan Mantri Fasal Bima Yojana
(PMFBY) in FY20.
 Crop insurance awareness stands at 38.8% in India, and the country’s crop insurance
market is still the world’s largest.
 Reliance General Insurance and SatSure teamed in October 2020 to deliver satellite-
based crop monitoring and predictive analytics support for better risk management and
crop insurance business efficiency.
 By 2020, government-sponsored programmes are planned to cover approximately 380
million people, thanks to efforts like RSBY and ESIC.
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PESTLE Framework

The PESTLE analysis is used to describe a framework for analysis of macro environmental
factors and the acronym is coined by a Harvard professor, Francis Aguilar. The PESTLE stand
for Political, economic, Socio-cultural, Technological, Legal, Environment. It is an increasingly
used and recognized term, replacing the traditional framework for monitoring environment
known as PEST analysis. It is simple to understand and quick to implement.
1. POLITICAL
The political Factor is the major parameter for an analysis because the changes made by the
government will directly effect to the consumer behaviour. The political stability, government
policies, government ideology, current and future taxation policies these all are the sub factors in
the political factor which will directly impact to customer and companies. The GOI in order to
encourage life insurance business allows deduction of premium under Sec 80C and a taxpayer
can take a rebate upto rupees 150000. In the case of Unit Linked Insurance Policies (ULIPs), the
income tax benefit is available only when the sum assured is at least 10 times the annual
premium and the policy is running for at least five years.
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At present the central government of India has taken initiatives to boost the insurance
industry, some of them are as follow:-
 In the union budget 2021 the FDI limit in the insurance industry is increased from
49% to 74%.
 IRDAI has announced the issuance, through digilocker, of digital policies by
insurance firm.
 The finance ministry announce to induce 3000 cr. Into state owned general insurance
companies to overall financial health of the insurance companies.
 16000 cr. Has been allocated to the crop insurance scheme by GOI.
 And the IPO of LIC has been announced by FM of India as a part of consolidation in
the banking and insurance sector.

The government also strives hard to provide insurance to individuals in a below poverty line by
introducing schemes like the

Pradhan Mantri Suraksha Bima Yojana (PMSBY),

Rashtriya Swasthya Bima Yojana (RSBY) and

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

Introduction of these schemes would help the lower and lower-middle income categories to
utilize the new policies with lower premiums in India.

These steps by the central government give encouragement to the insurance companies to expand
the business. The regulatory body changes in framework lead to change in the way the industry
conduct its business.

2. ECONOMIC
Recently, as per a report USA declared India as a developed nation. In USA there are more than
300 insurance companies on 33 crore people and in India there are only 24 life insurance
companies on 135 crore population. From this data we can easily understand that how much big
scope is there in the insurance industry in India. It is also the major parameter in which we
analyse the effect of inflation, exchange rates, trade cycle, and consumer spending. In the year
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2016-17GDP of India is growing at a faster rate which is a positive sign for each and every
sector. Post pandemic the insurance sector is growing with 4-5% rate but after pandemic it
increases with high rate. Most of the people Mentality is that if they invest in insurance what
return they will get? Due to this they shifted to different product to invest. Due to this covid
pandemic Situation suddenly the mentality of people had changed and started investing
in insurance and realise uncertainty of future. Unemployment is an economic factor if the rate of
unemployment is low then it will be fruitful to the country and the corporates. In India there is
more work Needed regarding financial education and awareness. Another important factor
is market if the currency is strong than more people will attract and invest in our country and as
already discuss that GOI had increased the FDI in insurance sector.

3. SOCIAL
The socio- cultural is a factor which describes the lifestyle trend, consumer attitude and opinions,
brand company image, ethics, media view and perception. Mortality rate, the average age reside
in a country plays an important role. The social factor is like marketing if in market the brand is
strong and positive views occur related to insurance then automatically the subscriber will
increase.
India is second largest country in term of population and thus there is huge scope in insurance
segment and in this pandemic situation insurance sector seen a huge growth and further it will
grow more. There are only 24 companies and if any companies want to enter into this market, I
think there will be no obstacle. All the research that have been taken clearly identify that
demographic plays a vital role in expanding life insurance industry because it deal in information
like age, income, education , members in family.
We can clearly observe that consumer attitude and opinion depend on the knowledge and
education. The people who are literate will tend to benefit from the insurance. There are some
people who want return for them the companies have ULIP product in which they will get high
return.
Moreover if the ethics and the work culture in a company is favourable then automatically if will
generate customer base like Tata, reliance etc. the name is enough because an investor know that
the company is transparency.
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In a country like US insurance is compulsory from birth but in developing nation it is not so.
India is country where huge amount of data consume and people spend lot of time in social
media and this source is best to promote any insurance product or place any company ads. And
this platform is also a great motivation for customer.
By 2010-11, digitalization was more prominent in the industry. The survey Report, 2011, of the
National Council of Applied Economic Research (NCAER) and Insurance Regulatory and
Development Authority (IRDA) found that the visual media are more popular among both the
Insured (39.4 percent) and the uninsured (31.9 percent) households as Compared to the print
medium which is only 23.7 percent and 20 percent Respectively . 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.

4. TECHNOLOGICAL
Technological factor make a drastic change in everyone life from normal life to professional life
technology make his own space. With the help of AI and Machine learning all the business got
drastic change from past 10 years.
With the rapid technological changes and their adoption, the life insurance Industry is driving
towards sustainable growth with an early breakeven with The strong customer base. Issuance of
online policies to customer settlement, Customer profiling, are the key task where the role of IT
has proved to be Indispensible to the insurers. 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.

5. LEGAL

The legal aspect has an impact on consumers and businesses because any regulatory policy or
structure relating to taxes has a direct impact on them. Business law, employment law, health and
safety law, and international treaties and law are all covered. This factor plays a vital role and is
indispensible with many unruly elements. All the policy need to be understood properly to from
time to time. So the legal obligations with respect to regulator, Government and other supporting
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institutions are critical. In India the regulatory strictly regulate life insurance companies the
regulator issues various regulations and procedures for the smooth

Functioning of the insurance industry. The National Insurance Academy (NIA), Pune, is one of
the premiers Institutions that help the insurance industry to train Educate, conduct Research and
offer consultancy service. The Life Insurance Council and the General Insurance Council
Coordinate with various stakeholders to make the industries legal and managerial aspects are
supportive and contribute to the proper functioning of the insurance players.

6. ENVIRONMENTAL

The last item of PESTLE Analysis is Environmental factor which analyses environmental issues,
hazards, legislation, and consumption. Since 2008 we have seen a positive attitude in customer
related to insurance. And after the pandemic this attitude increases more. The vital role in
insurance industry is the leadership and management style.
In India the insurance company has different approach and management technique to operate and
develop there customer base.
Since 2015 the offices of both public and private insurance companies has increased. This show
a positive sign as the geographical location is increased. It will also easy for customer to reach
directly.
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PORTER’S FIVE FORCES MODEL

This model holds that the state of competition in an industry is a composite of competitive
pressures operating in five areas of the overall market:
1. Rival sellers
2. New entrants
3. Threat of Substitute
4. Supplier’s bargaining power
5. Buyer’s bargaining power

RIVAL SELLER
In india, the financial advisory and insurance service is increasingly rapidly both post and pre
pandemic. In india there are 57 different insurance company which deals in both life and non-life
insurers. It mainly include LIC, SBI life, HDFC life, ICICI Prudential, Max life, Tata AIA, Bajaj
Allianz, Birla sun life, kotak Mahindra old mutual, etc. The market share is distributed among
these big giant as 50%, 11.5%, 9.7%, 5.8%, 4.8%, 3.1%, 3.1%, 2.2%, and 1.8% respectively.
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Alone LIC have 50% of market share in life insurance. This is also indicating the strength in the
industry with no player having an exceptional market share. The market share of reliance life
insurance stand at around 1% this data is during pandemic time. Therefore the competition is
intense in india for covering the market share.

NEW ENTRANTS
It is not easy to enter into the insurance and financial service industry. There are many hurdles
that make task difficult to start an insurance business despite high growth and size in the market
share. To start the insurance business requires a huge amount and have to qualify the legal
requirements. The customer is also hesitate to take the services of new firm due to lack of brand
image, and this factor plays a vital role in attract new customer. Thus the threat of entrance of
new business is low.

THREAT OF SUBSTITUTE
In insurance industry there is no threat of substitute because the product of all the insurance
companies is same and I cannot see any substitute product in the near future. Even though there
is a huge scope and growth in Indian insurance industry there is no substitute of the product but it
can be more innovated by making improvement in service offering. This will make threat of
substitute to the lower end.

SUPPLIER’S BARGAINING POWER

In the insurance segment the supplier is customer, insurance expert. Because this are the one who
flow the money and maintain the money in the insurance industry. The role of insurance expert is
important to bargain with the customer. There is need of the expert in insurance industry to
increase the bargaining power. In india the growth is high therefore is need of expertise is high.
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BUYER’S BARGAINING POWER

In business it is often seen that if our competitor is providing the same service at different price
the bargaining power increases. Today in India there is a lot more customer left who are not
exposed to the insurance services. We can see that in India there are lot more people who are
unaware about insurance product but there are many competitors who can differentiate in there
product and make the customer’s bargaining power increase. Thus overall we can say that there
are moderate bargaining power with the buyers.
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PORTOR DAIMOND MODEL ANALYSIS

Michael Porter’s Diamond Model (also known as the Theory of National Competitive Advantage
of Industries) is a diamond-shaped framework that focuses on explaining why certain industries
within a particular nation are competitive internationally.

In this model, the regional advantages can be assessed by four factors, which include:

1. Firm Strategy and Rivalry

2. Demand Conditions
3. Related and Supporting Industries
4. Factor Input Conditions

 FIRM STRATEGY AND RIVALRY

It is the major factor that makes company competitive at global level. In India insurance industry
is in growth stage and thus the competition is high. The insurance companies in India are the
joint venture. More than 50% of market share is covered by LIC which is public sector
insurance. In 2016 this data is more than 60%, it seems that the other companies are giving tough
competition and the people are attracted toward investing in insurance.
The company do more innovation in their product more will be competitive strength in domestic
as well as global market. Insurance business need huge money thus there no threat of new
customer.
FACTOR CONDITIONS
The factor condition includes the resource i.e. human resource, capital resource, natural resource.
In India the insurance industry need more expertise to do innovation in insurance product and to
bargain with the customer. In the growth era the tech industry is doing brilliant job, the
technology had changed the whole world. Every sector uses technology to grow their business.
In India there are hundreds of insure tech companies started which will definitely bring change
and growth in the insurance industry.
Indian government come up with different crop insurance for the farmers so that due to climatic
change the losses occur the risk will be covered.
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DEMAND CONDITIONS
India is prosperous in human resource but need more skilled labour who have expertise.
Insurance industry in india have lots of challenges but also have a great opportunity. The demand
condition will cause a company to push up, grow and innovate product and improve quality.
When pandemic occur the insurance demand increases at a high rate the response of customer
give a competitive advantage to the companies because the company will get a clear picture of
the needs of the customer.

RELATED AND SUPPORTING INDUSTRIES

The supporting industry of the insurance sector is capital market there are different insurance
products which are directly affect by the capital market. For the insurance segment one best thing
is that India is growth stage and thus there many entrepreneur who are developing tech insure
sector. This will make customer feasible to access the policy.

Apart from these factors the political factor i.e. government plays a vital role because the steps
that are taken by GOI will impact the decision of an investor. Like tax policy, in difficult
situation how much money induce to a particular industry, the FDI all these plays a major factor
in the growth of any industry and all this policies are made by GOI.
In every segment all these factor are crucial and have to analyse properly for the sustainable
growth and to compete in the long run.
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COMPANY INTRODUCTION

Reliance Nippon life insurance is a leading private insurance company in India. The company is
one of the largest non-bank supported private life insurers with over 10 million policyholders, a
strong distribution network of 713 branches and 42,604 advisors as on March 31, 2021. Reliance
Nippon is a part of Reliance Capital, a private sector financial services company. Reliance
Nippon life Insurance is a joint venture between reliance capital and Nippon life insurance.
Nippon life Assurance co. ltd is insurance company which is founded in 1889. It is a Japanese
based company. The company hold stake of 49% and reliance capital 51%. The sum assured by
the company is 78847 crore. And as per audited figure it claims 98.48% of claim settlement
ratio.  Reliance Nippon Life caters to five distinct segments, namely Protection, Child,
Retirement, Saving & Investment, and Health; for individuals as well as Groups/Corporate
entities.
It also gets a best award for the workplace in insurance in India and also raked in India top 50
companies to work in India.
Vision statement:- ‘Do Good’ is our intent, our philosophy and philosophy and belief that we
aim to bring alive through every we touch.
Mission Statement: - Create unmatched value for everyone through dependable, effective,
transparent, and profitable life insurance and pension plan.
Goal: -
Achieve good reputation and credentials through best business practices
Serve the best values to the customers, shareholders and all the stakeholders
Key Feature of life insurance
1) Nomination
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2) Assignment
3) Death Benefit
4) Policy Loan
5) Conversion option

Benefits of Life insurance

1) Risk cover
2) Tax deduction
3) Educational needs
4) Loan
5) Retirement Planning

SWOT ANALYIS

Strength
 Diversified product portfolio which provide various option to the customer to opt
different plans for every age/income groups.
 It is one of the India’s largest insurance companies which is ranked in top 3 private
segment companies.
 Strong capital base and brand backing of reliance and Nippon life insurance Company.
 The company provide service globally.
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 Innovation under Nippon life X program the company is modernizing its business.
 In recent years, the company strengthen its business by combined a number of technology
businesses to streamline its operation and develop stable supply chain.

Weakness

 Make less advertisement expenditure as compared to other insurance companies due to

which the reach of their product to the customer is less.
 The controversies in the reliance capital lead to negative impact on the customer.
 Weak customer base due to lack of trust.
 Weak financial performance and the company is providing huge bonuses to its employees
due to which there is lack of liquidity and reserve.
 The company’s product line has some holes in it. This scarcity of options may allow its
competitor to foothold in the market.
 The organization structure is only consistent with the current business strategy, thus
expansion of the neighbouring products is limited.
 The company need to invest in technology to integrate the process, which will increase
the scope of company to expand its business.

Opportunity
 In this pandemic situation the insurance sector is at boom, thus there is huge scope in
rural and semi-urban areas to expand its business.
 In the fast rising country like india, there is a huge scope to serve the untapped market.
 The government’s green initiative also provides an option state and federal government
contractors to purchase their products.
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 The company can invest significant amount of money in online platform and take
advantage by knowing their customer better and employing big data analytics to serve
their need.

Threat
 Business is being affected by lower interest rates and gloomy economy.
 A shortage of experienced workers poses risk to reliance Nippon life insurance Company.
 Competitors threat to the company, because many of the insurance company set a strong
strategies to acquire the strong customer base.
 The growing strength of the local distributor poses a challenge as the competitors pay
local distributor bigger profit
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3CET ANALYSIS

3C- Company
Competitor
Customer
E- Environment
T- Technology

Company
Reliance Nippon life insurance company is a part of reliance capital ltd. Of the reliance group. It
is one of the leading private sector financial service company. It ranked among the top 3 private
sector financial service and banking service companies in terms of net worth. Reliance Nippon
life insurance is a venture between reliance capital and Nippon life insurance Company, in which
49% stake is with Nippon life insurance and rest 51% is with reliance capital.
The company has wide range of insurance products some of them are as follow:-
1) Increasing income insurance plan(III)
2) Guaranteed money back plan
3) Super endowment plan
4) Milestone plan
5) Ulip Plan
Other than these plan company have pension plans, retirement plans, child plans, and credit
guardian plan.
The company has strong distribution network of 713 branch, and 42604 advisors and have more
than 10 million of policyholders.

Competitors
In India there are 24 insurance companies and we can see immense competition in insurance
sector even though the threat of new competitor is negligible. The covid pandemic situation arise
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a huge demand in insurance sector. The company faces a huge competition from the companies
such as
LIC
SBI life
Bajaj Allianz life
Birla sun life
Tata-AIG
Max life
ICICI Prudential
HDFC Standard
LIC is the market leader as it covers around 50% of market share. This percentage was high but
due to entry of new private players cause loss in the market share.

Market Share

17%

6% LIC
HDFC Standard
SBI life insurance
53%
ICICI Prudential
9% Others

14%
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Customer
Customers are god for any business to run in long run for success. The Reliance Nippon Life
Insurance Company has a total of 10 million policyholder and sum assured of Rs 78847 crore.
Currently the company stand strong in the private segment the company provide wide range of
products. The customer subscribe the saving and investment plan of the company because the
perks they provides are slightly higher then other companies product.

Environmental
Environmental analysis has become an important aspect of the PESTEL or 3CET analysis as
environmental consciousness has grown and climatic circumstances have changed. Distinct
markets have different environmental norms, laws, and regulations. Nippon Life Insurance’s
foreign presence necessitates careful consideration of these distinctions in order to avoid
unfavourable situations. Business enterprises have been driven to embrace creative recycling and
waste management techniques as a result of rising environmental degradation and technological
innovation. Recycling has practically become a corporate standard in several countries.
Furthermore, for Reliance Nippon Life Insurance, establishing efficient waste management
techniques in organisational units located in or near urban regions is critical. Green/eco-friendly
items are becoming increasingly popular. Reliance Nippon Life Insurance may seize the
opportunity by implementing green business practises in order to gain stakeholders’ trust. The
focus of regulatory agencies on maintaining compliance with environmental standards is
changing product innovation goals. It necessitates Reliance Nippon Life Insurance prioritising
and focusing on selling the eco-friendly products.

Technological
A thorough examination of the technical environment can assist Reliance Nippon Life Insurance
in capturing technological trends in order to gain specific business advantages, such as increased
profitability, accelerated innovation, and improved operational efficiency.
To stay ahead of the competition, Reliance Nippon Life Insurance should carefully analyse
ongoing technological developments. Analyzing 5G and identifying its potential to generate
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beneficial business outcomes through enhanced user experience, increased speed, and extended
access should be kept in mind.
To understand how new technologies influence the firm’s value chain and current cost structure,
Nippon Life Insurance must examine rival investments on a micro and macro level. In a world
where creativity is being disrupted, research and development efforts are critical.

TASK DETAIL
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TO GENERATE LEAD AND TAKE THE APPOINTMENT FROM THE CUSTOMER.

Mainly I have to sell insurance products which contain different schemes such as term plan, life
insurance, business insurance etc. from which I have to endorse four traditional plans to the
customer which are Increasing income insurance plan (III), Super endowment policy,
Guaranteed money back policy, milestone insurance plan and a ULIP (unit linked insurance
plan) plan.
Starting with the lead generation I have to collect more than 70 contacts to whom I have to
contact and then take appointment as per their convenience. I have made all the contact from 3
sources
1. My friends and family members
2. My friend’s friend and family members colleagues to whom they know.
3. Websites like just dial
After collecting the data I have to talk to the customer and have to take the appointment for
further talk with the cluster head.
Basically, I have first contacted to the people I know and then I have downloaded some contact
details of various aspect like employment type, income, age group etc. Here, I have first
contacted age group of 28-35 having income of 40000/- to 50000/- because this kind of customer
are new in investment and they don’t have much amount of investment.

Increasing income insurance plan: - It is a traditional insurance plan in which the minimum
age limit of the insurer is 18 and maximum is . The maturity period of the plan is 20 years in
which policyholders have to pay only for 10 years and from the 11 th year policyholder will start
getting money back in the increasing manner. At the end of 20th year policyholder will get the
maturity benefit and the revisionary bonuses. The minimum premium for the plan is Rs 40,000.
Super endowment plan: - This is a saving insurance plan in which policyholders have to pay
premium yearly which is Rs 50000. The minimum age limit is 8 and maximum is 55. The
maturity period of the policy is 14 years and the premium paying term is 7 years. This means that
the policyholder have to pay premium only for seven years and the next seven years is cooling
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period and at the end of 14th year policyholder will get lump sump amount which include
maturity benefit and the revisionary bonuses.
Guaranteed money back plan: - This insurance plan is also a saving plan and it is the most
subscribed plan of reliance Nippon life insurance Company in which a policy holder will get a
huge benefits. The maturity term of the plan 15years and the premium paying term is 10 years. It
means that policyholder have to pay only for 10 years and from the 11th year policyholder will
start getting money back till 15th year and will also get maturity benefits and revisionary bonuses.
Customer who is 18-58 years old can only avail this policy. The minimum amount to be invested
in this plan is Rs40000
Milestone insurance plan: - This plan is for 15 years i.e. maturity period. The policyholder have
to invest a minimum amount of Rs 50000 for the 10 years and the next 5 years policyholder have
to wait and at the end 15thb year policyholder will get the maturity benefits and revisionary
bonus. The minimum age of a policyholder to invest in this plan is 8 years and the maximum is
65years.
All this traditional plans have a life cover and the amount of the life cover depends on the age of
the policyholder.

RESEARCH ON THE CUSTOMER PERCEPTION IN INVESTING TOWARDS

MUTUAL FUND AND STOCKS
I have to do the primary research in which I have to gather information about the customer
perception towards investing in mutual fund and stock market.
For research I have made the questionnaire and the responses that came is used for getting the
insight about the customer perception by analyzing and comparing different variables.
For more information I referred different reviews and journal from which I gather the
information about how age, occupation, qualification impact the perception on investing in
mutual fund and stocks.

RESEARCH AND ANALYSIS

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RESEARCH OBJECTIVES

The project's main goal is to generate leads and sell products. In addition, I must do research into
customer attitudes toward mutual fund and stock market investments. The project will aid in the
development of customer relationship management skills, and the analysis portion will aid in the
identification of consumer behaviour when it comes to mutual fund and stock market
investments. The primary goal of the study is to determine whether or not people are aware of
the importance of investing.
To determine the influence of various age groups on investment
To find out how certification affects risk tolerance.

RESEARCH METHODOLOGY
The study is mostly an analytical study based on primary research, as well as an examination of
investors' attitudes about mutual funds. To conduct this study, 100 investors were chosen using a
sampling approach, and data was collected mostly through a questionnaire.
The study is mostly an analytical study based on primary research, as well as an examination of
investors' attitudes about mutual funds. To conduct this study, 100 investors were chosen using a
sampling approach, and data was collected mostly through a questionnaire.
A number of statistical techniques have been used to measure various phenomena and analyse
the collected data effectively and efficiently in order to draw sound conclusions.
In this study, a thorough review of the existing empirical literature from the year 1992 to 2020
has been conducted. Articles published in various online databases and search engine such as
SSRN, academia, IBEF, and Google scholar along with the relevant books on the topic were
reviewed.
The studies were evaluated based on key criteria such as aims, study methodology, sample size,
and the elements that influence an investor's decision. Studies were carried out to identify the
research gap and to suggest an empirical study to determine the relationship between people's
income, saving, and investment behaviour.
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Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Age 78 20 54 26.71 7.677

Valid N (listwise) 78

Bootstrap Specifications

Sampling Method Stratified

Number of Samples 1000

Confidence Interval Level 95.0%

Confidence Interval Type Percentile

Strata Variables Gender, Qualification

Descriptive Statistics

Statistic Bootstrapa

Bias Std. Error 95% Confidence Interval

Lower Upper

N 78 0 0 78 78

Minimum 20

Age Maximum 54

Mean 26.71 .02 .57 25.69 27.88

Std. Deviation 7.677 -.064 .860 5.833 9.152

Valid N (listwise) N 78 0 0 78 78

a. Unless otherwise noted, bootstrap results are based on 1000 stratified bootstrap samples

Gender * Where do you prefer to invest? Crosstabulation

Count
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Where do you prefer to invest? Total

Both mutual funds stock market

Female 10 17 4 31
Gender
Male 28 7 12 47

Total 38 24 16 78

Gender * What is your objective of saving and investment? Crosstabulation

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Count

What is your objective of saving and investment? Total

above all personal needs retirement uncertain

situation

Female 7 19 1 4 31
Gender
Male 24 16 2 5 47

Total 31 35 3 9 78

Gender * How much portion do you save? Crosstabulation

Count

How much portion do you save? Total

10% or less 11%-20% 21%-30% 40% & above

Gender Female 18 9 2 2 31
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Male 18 15 10 4 47
Total 36 24 12 6 78

Gender * Risk tolerance Crosstabulation

Count

Risk tolerance Total

High risk Moderate risk N/A No risk

Female 2 17 7 5 31
Gender
Male 8 33 2 4 47

Total 10 50 9 9 78
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Qualification * Where do you prefer to invest? Crosstabulation

Count

Where do you prefer to invest? Total

Both mutual funds stock market

Qualification 0 2 0 2

Businessman 5 3 1 9
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House wife 1 3 0 4

Salaried 10 6 5 21

Student 22 10 10 42

Total 38 24 16 78

Qualification * What is your objective of saving and investment? Crosstabulation

Count

What is your objective of saving and investment? Total

above all personal needs retirement uncertain

situation

1 1 0 0 2

Businessman 7 0 2 0 9

Qualification House wife 3 1 0 0 4

Salaried 6 10 1 4 21

Student 14 23 0 5 42
Total 31 35 3 9 78

Qualification * How much portion do you save? Crosstabulation

Count

How much portion do you save? Total

10% or less 11%-20% 21%-30% 40% & above

1 1 0 0 2

Businessman 4 2 2 1 9

Qualification House wife 3 1 0 0 4

Salaried 6 10 3 2 21

Student 22 10 7 3 42
Total 36 24 12 6 78

Qualification * Risk tolerance Crosstabulation

Count

Risk tolerance Total

High risk Moderate risk N/A No risk

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0 1 0 1 2

Businessman 0 8 0 1 9

Qualification House wife 0 2 0 2 4

Salaried 7 10 2 2 21

Student 3 29 7 3 42

Total 10 50 9 9 78
Risk is an inherent aspect of all investments. The readiness of investors to accept risk is
determined by their risk appetite or market emotions at the time of investment. Furthermore, an
investor's understanding of market volatility, as well as their optimism about it, impacts their
decision to choose a risky investment.

Findings:
 Highly qualified investors have a moderate to high risk tolerance, and they choose to
invest in mutual funds rather than equities because mutual funds are a safer option.
 The majority of people save 10% to 20% of their earnings.
 Those between the ages of 21 and 28 are more likely to invest for personal reasons. Apart
from that, people put money aside for retirement and schooling for their children.
 According to the findings, age, education, and gender have a significant impact on
investment behaviour.
 After the pandemic the people are tend to invest in risky investment because of return.
During this time many investor seems it as an opportunity and start investing in mutual
fund and stocks.

SUGGESTIONS:

Specific investment opportunity should be created in the form of new fund schemes for the
people who are looking to fulfil their personal needs. There is already NPS (National Pension
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Scheme) in the market. The scheme should be made on the basis of different income groups by
heading risks differently.
A new fund dedicated to students should be established. There should be a 7-year lock-in term in
place. For example, if a student completes 12th grade and wishes to pursue additional education
Outside of the classroom, he can deposit a percentage of his savings in this programme on a
monthly or yearly basis. A fund holder will receive specific benefits for the purpose of studies,
and there should be strategies in place to encourage students to seek careers in various fields.
There should be a greater variety of closed ended funds available, which will enable other
investors (who do not directly invest in the stock market) to participate in the market by
purchasing and selling fund
There are already different varieties of mutual fund present in the market but the market
participants are very low. To encourage the participants there should be some innovation in the
funds.
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LIMITATIONS
 According to the findings, age, education, and gender have a significant impact on
investment behaviour.
 Highly qualified investors have a risk tolerance that ranges from moderate to high.
 Because mutual funds are a safer investment than stocks, investors prefer to invest in
them.
 The majority of people save ten %to twenty % of their income.
 Those between the ages of 21 and 28 are more likely to invest for personal reasons.
People save for retirement and their children's education, among other things.

Achievement:
Our goal is to schedule 6-7 appointments with potential policy buyers. I've been able to schedule
approximately 5-6 people per week. As a result, I've scheduled approximately 50 people for the
next few weeks. Another accomplishment is that I had to generate primary data for 100 persons
in 4-5 days for research. In this period, I have collected data on approximately 80 persons.
The result that I have obtained gives me a perception and mind-set of the different persons, what
they actually think about the stock market and mutual fund investment.
Another part of my internship is about insurance I have successfully completed the list of all the
members of different level of income people.
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STRATEGY
The solution sales model is a sales tactic that I've used in the past. Michael Bosworth developed
the model (solution selling) that I utilise. By resolving an issue, a rep offers a consumer a
solution. Instead of simply selling a product, a solution method focuses on a specific issue or
problem that the consumer is having and suggests services or commodities to address that issue.

Prepare: - First and foremost, I must collect client information such as contact information,
educational background, and occupation. I contacted my co-worker, relatives, and an internet
platform to obtain all of this information. I jotted down all the facts on a work sheet after getting
all the information, and then I approached the customer and took their pain points, as well as
what they want and need from an insurance product.
Diagnose: I've diagnosed after gathering all of the pain points. Then I conducted a pain point
analysis and developed a framework based on which product I should recommend to each
consumer. The most common complaint I hear is that people are afraid of a pandemic and need a
decent return and life cover with life insurance.
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Qualify: I advised them to purchase insurance based on their diagnoses. I also asked them a
series of questions based on their investment capacity and desired return.
Educate: After learning about their needs, I recommended a specific insurance package to
them. The solution I've recommended will meet all of the needs of the consumer, including a
good return on investment, life insurance, and so on. I've explained to them why our product is
superior to others. I've shown them through examples, facts and data, and the company's prior
performance. This will assist me in building client confidence and encouraging them to invest in
the company.
Solve: After informing them of our policy, I attempted to address their questions and concerns
by citing examples of previous clients. The queries may vary from person to person, however the
percentage of queries that are similar to those of previous customers is 80:20. That suggests that
80% of the requests are identical to those I've received in the past, and 20% are unique. Because
the ratio of queries is similar to that of my previous clients, I explain the product's efficiency and
demonstrate it by citing examples from my previous clients.
Close: I've heard some objections and addressed them by showing how the product will benefit
them.
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LIMITATIONS
 Due to the Pandemic situation, I have to work online because comprehending people's
needs has become impossible.
 Also, persuading consumers to buy insurance through the internet and gaining their trust
is more difficult because they prefer to buy from policy bazaar or other websites.
 When it comes to convincing customers, the brand value of reliance Nippon can be a
challenge as compared to other insurance companies.
 This project is based on a limited product from Reliance Nippon Life Insurance, and it
does not include all of their offerings.
 In, India there is need for more experts to handle the underwriting of insurance policy.
Underwriter reduces the risk of loss.
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CONCLUSION
The financial services industry today is highly diversified, offering investors a wide range of
investment opportunities. Investors can improve their wealth by employing appropriate
investment methods and financial planning, which will help the economy flourish. The various
benefits that each individual desires from owning a specific investment have a substantial impact
on an individual's investment selection. Understanding saving and investment behaviour could
be immensely beneficial to investors in terms of wealth management, as well as regulators,
investment agencies, researchers, and business executives in terms of planning to respond to
changing investor behaviour.
As noted in the introduction, a positive contemporaneous connection between mutual fund flows
and stock market returns is consistent with a variety of scenarios, including investor group
pricing pressure, knowledge asymmetry between investor groups, or investor group simply
reacting to results. Young folks have a higher proclivity for taking chances. Women's roles in
society are constantly evolving, and women now occupy a significant position in society.
Woman is no longer only a housewife, but she is increasingly dealing with high-value decisions
on par with men, such as financial issues. However, I discovered in my research that women
have a lower risk tolerance than men.
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BIBLIOGRAPHY

 “http://citeseerx.ist.psu.edu/viewdoc/download?
doi=10.1.1.1072.4415&rep=rep1&type=pdf”
 “http://irjbm.org/irjbm2013/November/Paper8.pdf”
 “https://pdfs.semanticscholar.org/503f/db1bef9ddd39551c49a15cd5c75b22522afe.pdf”
 SSRN-id2665305
 Insurance-November-2020 BY IBEF
 SSRN-id2358344
 Academia.edu
 Irjbm.org
 Worldscholar.org
 https://journals.sagepub.com/doi/abs/10.1177/2319510X18813770
 http://www.pbr.co.in/2018/2018_month/Jan/1.pdf
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Annexure

Questionnaire of Research on Investing Behaviour of mutual fund and stock:

1. Name:
2. Age:
3. Gender:
() Male
() Female
4. Qualification:
() Salaried
() Businessman
() Student
() House wife
5. Do you save portion of your income? 
() Yes
() No
6. How much portion do you save? 
() 10% or less
() 11%-20%
() 21%-30%
() 40% & above
7. What is your objective of saving and investment? 
() retirement
() personal needs
() uncertain situation
() child education
() above all
8. Where do you prefer to invest? 
() mutual funds
() stock market
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() Both

9. If you don't invest in mutual funds then what are the reason of not investing there?  
() Lack of guidence
() Lack of knowledge
() risky investment
() No particular Reason
() N/A
10. If mutual fund, Where do you find yourself as mutual fund investor?
() not at all aware
() Partially aware
() aware only of any specific scheme in which you have invested
() Fully aware
() N/A
11. which mode of investment you prefer in mutual fund? 
() SIP- Systematic investment plan
() One Time investment
() N/A
12. If you don't invest in stock market than what are reason of not investing there?  
() high risk investment
() Lack of knowledge
() No reason
() N/A
13. If you invest in stock market than what do you mostly prefer? 
() intra day
() Derivative
() long-term holding
() N/A
14. Risk tolerance 
() No risk
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() Moderate risk
() High risk
() N/A