Whether Taxation is a Selling Tool for Life Insurance Organization

Abstract

Bridge Group Solutions is an emerging firm in the highly unorganised and diversified Financial Sector and intends to provide investment solutions to the clients and also establish its impression in this sector. The company has been focused on creating an experienced team, developing technology enablers and institutionalizing standardized processes and attain consistent growth in terms of clients through referrals. Bridge Group Solutions is promoted by a group of like-minded young professionals having deep knowledge in providing investment solutions and consulting. The purpose of the project undertaken was to understand the working of insurance companies, the different Insurance products in the market, consumer behaviour towards these products and how tax acts as one of the major tools for customers to buy the insurance products specifically the Life Insurance. Being one of the largest markets of insurance and having several Insurance companies, India still has the least insurance market penetration specially in Tier 2 and Tier 3 cities. It has extreme potential to grow and with the market growing and increased awareness, the penetration is increasing year to year. Along with this, there is an increase in the premium collected and policies sold. The attitude towards the Insurance products is also different amongst the businessman and the salaried people. Majority of the people, generally consider Life Insurance as an investment and tax saving tool but they are not aware of how the policy money is invested and how safe these investments are. The project thus helps to understand the investment pattern of the Insurance companies. The IRDAI- Insurance Regulatory and Development Authority of India updates and regulates all the 24 Life Insurance and 34 non- Life Insurance companies. The project also included training on basic understanding and analysis of the stock market including technical and fundamental analysis.