Acknowledgement

ACKNOWLEDGEMENT
ACKNOWLEDGEMENT
The making of a report does not involve efforts of one single person. It is possible only because
of cooperation and contribution of many minds. Several eminent people at ICICI
PRUDENTIAL life insurance have made valuable contributions to this report through their
inputs. We are thankful to each one of them.
We are extremely thankful to Ms. Pooja maheshwari, Financial Services Manager for giving us
opportunity to undergo training in ICICI PRUDENTIAL LIFE INSURANCE. Special thanks to
my unit managers Mr. Mohit Kumar, Mr. Pranav Tyagi and Mr.Siddarth Sexena Mr. Pradeep
Rana for their support and making our stay at ICICI PRUDENTIAL a memorable learning
experience.
In these two months, we have been given a very valuable insight into the working of
industry in general, which will go a long way in shaping our career.
Lastly we would like to thank the whole ICICI PRUDENTIAL family, who treated
uslike one of them and offered us valuable support and guidance and facilitated this experience
for which we are so grateful.
PREFACE
PREFACE
This project entitled (Channel Development for Tide agencies of

ICICI Prudential regions is based on market survey done by us and
submitted to management department, STEP-HBTI, KANPUR, is
part of curriculum of MBA of third semester, during the session
2004-2006.
The project and accompanied training at ICICI

Prudential gave as thorough insight of practical world
of insurance business, Apart it was beneficial in part of
exposure that we got being the part of one of the and
successfully operating Multinational insurance
company.
The project was taken and completed during the

summer vacations after the completion of session
2004-2005 and on set of new study session that is
2005-2006.
TABLE
OF
CONTENTS
TABLE OF CONTENTS
Pg .No.
ACKNOWLEDGEMENT …………………………………………………. 4
PREFACE …………………………………………………. 5
EXECUTIVE SUMMARY …………………………………………………. 11
OBJECTIVE OF THE STUDY…………………………………………………. 14
THEORITICAL OVERVIEW
 Introduction - basics of insurance…………………………………………….. 17
 Need of life of Insurance…………………………………………………………. 20
 Roles of Insurance…………………………………………………………………. 21
 Types of life insurance…………………………………………………………… 23
FINDINGS GENERAL
 History of Insurance …………………………………………………………….. 28
 Insurance in India …………..…………………………………………………. 31
 Present Status of Insurance Industry ……………………………………………. 35
 Role of IRDA ……………………..…………………………………………… 35
 Channel Distribution ……………………………………………………………… 37
 Why Private Insurance?…………………………………………………………. 45
 Need For Brand Name In Insurance………………………………………………. 47
 Intermediaries…………………………………………………………………… 48
 Challenges Before Insurance Industry………………………………………… 51
 Company Profile ……………………………………..………………….. 54
 ICICI Prudential Introduction…………………………………………………. 57
 Management ……………………………………………………………………… 59
 Distribution ……………………………………………………………………… 62
 Recruiting life insurance advisors…………………………………………….. 64
 Market survey on life insurance companies………………………………… 70
 Different plans offered by ICICI Prudential………………………………… 84
 Rewards and recognition
ICICI Prudential in news…………………………………………………… 90
 Limitations ………………………………………………………………… 96
RECOMMENDATIONS & SUGGESTIONS ……………………………
97
CONCLUSIONS………………………………………………………………… 99
BIBLIOGRAPHY……………………………………………………………….. 101
WE DID HAVE ‘WINNING GENES’………………………… 104

EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Project Title:
Channel development for tied agencies and studying customer response towards insurance
in general
• Identifying different profile’s of the people and giving them a business Opportunity to join
ICICI Prudential as an advisor/agent. (Detailed study on advisors/agent.)
• A market survey was done on life insurance companies. Different questions regarding the
companies training programs for agents/advisor, top 5 USP’S training centers etc were asked.
The areas covered up in this survey were Noida and Central Delhi. The report contains
details of different life insurance companies, which are in healthy competition with ICICI
Prudential life insurance.
The report also throws a light on the following:

 Working of the unit linked insurance plans.
 SWOT analysis of the product.
 Comparative study of the competition
 Training centers
 Commission structure
 Current agent force
 Different training programs for agents/advisors
 Modes and ways through which they recruit agents
 Top five USP’s (unique selling proposition)
Comparative analysis done on:
 Life insurance corporation

 Max New York Life Insurance
 HDFC Stan Life
 Birla Sun Life
 Bajaj Allianz
OBJECTIVE OF THE
STUDY
OBJECTIVE OF THE STUDY
The project undertaken by me as a part of my M.B.A. course is an effort made to study the
recruitment of advisors in ICICI PRUDENTIAL with special emphasis on unit linked products of
the company.
In this era of cut throat competition, any organization needs to select and retain the best talent.
People selected should have positive attitude, ability to inspire others and must be dynamic.
Research Methodology:
Primary data collected by personally visiting different people from different walks of life and
gathering information about the leading insurance players for example LIC, Max New York Life
Insurance, Bajaj Alliance, Birla Sunlife, HDFC Stan life.
Collection of data through a structured questionnaire.
Gathering information by visiting branch offices of different Companies.
Recruiting agents- by making phone calls to people of different
Profile and giving them a business opportunity to join icici prudential as advisor/agent.
Data Collection:
 Primary data collected through questionnaires.

 My market 100
 Main focus were CA’S and MBA’S
THEORETICAL
OVERVIEW
INTRODUCTION TO INSURANCE
LIFE INSURANCE GENERAL
Insurance is a system to alleviate financial losses by transferring risk of loss from one entity
to another.
‘Insurance’ is basically a sharing device. The losses to assets resulting from natural calamities
like fire, flood, earthquake, accidents, etc. are met out of the common pool contributed by large
number of persons who are exposed to similar risks. This contribution of many is used to pay the
losses suffered by unfortunate few. However the basic principle is that loss should occur as a
result of natural calamities or unexpected events, which are beyond the human control. Secondly
insured person should not make any gains out of insurance.
It is natural to think of insurance of physical assets such as motor car insurance or fire insurance
but often we forget that creator of all these assets is the human being whose efforts have gone a
long way in building up the assets. In that sense, human life is a unique income generating assets.
Unlike the physical assets, which decrease in value with passage of time, the individual becomes
more experienced and more matured as he advances in age. This raises his earning capacity and
the purpose of life insurance is to protect the income in the event of his premature death. The
individual himself also needs financial security for the old age or on his becoming permanently
disabled when his income will stop. Insurance also has an element of savings in certain cases.
How insurance works?
Suppose there are 1000 persons all aged 35 years and healthy lives. They are insured for one year
against the risk of death. Each person is insured for Rs. 50,000. If the past experience indicated
that 4 out of 1000 persons, at this age are expected to die during the year, expected amount of
death claim to be paid to the family of four persons would come to Rs. 2,00,000. The
contribution to be paid by each of the 1000 persons will come to Rs. 200 per year. Thus, all the
1000 persons share loss caused to the 4 unfortunate families. 996 persons who survived till one
year have not lost anything as they secured peace of mind and a feeling of security of their
family.
While insurance cannot prevent accidents or premature death, it can help protect the family of
the decreased against the loss of income caused by the death of the main breadwinner. In return
for specified payments, insurance will provide protection against the incidence of an uncertain
event- such as premature death. The business of insurance company called insurer is to bring
together persons who are exposed to similar risks, collect contribution (premium) from them on
some equitable basis and pay the losses (claims) to the unfortunate few who suffer.
Classification of Insurance
Insurance business can be divided into two broad categories, life and non-life.
Life insurance is concerned with making provision for a specific event happing to the individual,
such as death whereas non life (or general insurance) is more commonly concerned with the
provision for a specific event which affects a property, such as fire, flood, theft etc. In this course
we will only cover life insurance. So, let us now move on to the definition of life insurance.
Definition of Life Insurance
According to the U.S. Life Office Management Association Inc. (LOMA), life insurance is
defined as follows: ‘Life insurance provides a sum of money if the person who is insured dies
whilst the policy is in effect”.
Need for Life Insurance
Risks and uncertainties are part of life's great adventure -- accident, illness, theft, natural disaster
- they're all built into the workings of the Universe, waiting to happen.
Insurance then is man's answer to the vagaries of life. If you cannot beat man-made and natural
calamities, well, at least be prepared for them and their aftermath.
Insurance is a contract between two parties - the insurer (the insurance company) and the
insured (the person or entity seeking the cover) - wherein the insurer agrees to pay the insured
for financial losses arising out of any unforeseen events in return for a regular payment of
"premium".
These unforeseen events are defined as "risk" and that is why insurance is called a risk cover.
Hence, insurance is essentially the means to financially compensate for losses that life throws at
people - corporates and otherwise.
The principle of insurance works on the concept of a large number of people exposed to a similar
risk making a contribution to a common fund. Those who suffer losses due to the occurrence of
these events are compensated for them from this fund.
Who can buy a life insurance policy?
Any person above 18 years of age, who is eligible to enter into a valid contract can go for an
insurance policy. Subject to certain conditions, a policy can be taken on the life of a spouse or
children
ROLE OF LIFE INSURANCE
Life Insurance As An Investment:-
Insurance is an attractive option for investment. While most people recognize the risk hedging
and tax saving potential of insurance, many are not aware of its advantages as an investment
option as well. Insurance products yield more compared to regular investment options, and this is
besides the added incentives offered by insurers.
You cannot compare an insurance product with other investment schemes for the simple reason
that it offers financial protection from risks, something that is missing in non-insurance products.
In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before
comparing with other schemes, you must accept that a part of the total amount invested in life
insurance goes towards providing for the risk cover, while the rest is used for savings.
In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the
term. In other words, if you take a life insurance policy for 20 years and survive the term, the
amount invested as premium in the policy will come back to you with added returns. In the
unfortunate event of death within the tenure of the policy, the family of the deceased will receive
the sum assured.
Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF, your
money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the access to your
funds will be limited. One can withdraw 50 per cent of the initial deposit only after 4 years.
The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-12
lakh (depending upon the plan, age and medical condition of the life insured, etc) and this
amount can become immediately available to the nominee of the policyholder on death. Thus
insurance is a unique investment avenue that delivers sound returns in addition to protection.
Is life insurance a saving instrument?
Life insurance is mainly considered as a saving instrument rather than an investment avenue as it
promotes compulsory savings besides reducing tax burden on the policyholder and protect the
family of the policyholder in the event of unforeseen happening. It is the only saving instrument,
which covers the life risk besides giving tax concession both at entry (premium paid) and at exit
points. The section 10 (D) of the income tax act totally exempts payment of tax on any amount
received as bonus against life insurance polices .
Types of Life Insurance Policies
There are four broad types of life insurance policies to choose from:
• Term Insurance
• Whole Life Policy
• Endowment Plan
• Annuities
Most of the products offered by Indian life insurers are developed and structured around these
"basic" policies and are usually an extension or a combination of these policies. So, what are
these policies and how do they differ from each other?
Term Insurance Policy
• A term insurance plan is a pure risk cover for a specified period of time. What this means is that
the sum assured is payable only if the policyholder dies within the policy term. For instance, if a
person buys a Rs 2 lakh policy for 15 years, his family is entitled to the money if he dies within
that 15-year period.
• What if he survives the 15-year period? Well, then he is not entitled to any payment; the
insurance company keeps the entire premium paid during the 15-year period.
• So, there is no element of savings or investment in such a policy. It is a 100 per cent risk cover. It
simply means that a person pays a certain premium to protect his family against his sudden
death. He forfeits the amount if he outlives the period of the policy. This explains why the Term
Insurance Policy comes at the lowest cost.
Term Insurance variants:
Given the limitations mentioned above, the term life insurance policy has been enhanced to
Convertible Term Assurance and Premium Back Term Assurance policies.
Convertible Term Assurance Policy
• A term assurance policy allows the insured to convert the policy into an endowment or a whole
life policy two years before the end of the policy term.
• This plan is ideal for people who are not able to afford permanent insurance policies (like
endowment and whole life) when they have just started their careers.
Premium Back Term Insurance Plan
• This is a term insurance policy in which insurer will pay back the premium (excluding accident
premium) if the insured survives the policy term.
• In case of death, the sum assured would be fully payable.
Whole Life Policy
• As the name suggests, a Whole Life Policy is an insurance cover against death, irrespective of
when it happens. Under this plan, the policyholder pays regular premiums until his death,
following which the money is handed over to his family. This policy, however, fails to address
the additional needs of the insured during his post-retirement years. It doesn't take into account a
person's increasing needs either. While the insured buys the policy at a young age, his
requirements increase over time. By the time he dies, the value of the sum assured is too low to
meet his family's needs. As a result of these drawbacks, insurance firms now offer either a
modified Whole Life Policy or combine in with another type of policy.
Whole Life Insurance Variants:
• Limited Payment Life Policy

• A Whole Life Insurance policy in which the insured has to pay premium only up to a fixed
period of time but is covered for life. Unlike in a pure whole life insurance policy, the
policyholder does not have to make premium payments until death.
Endowment Policy
Combining risk cover with financial savings, endowment policies are the most popular policies
in the world of life insurance.
• In an Endowment Policy, the sum assured is payable even if the insured survives the policy term.
• If the insured dies during the tenure of the policy, the insurance firm has to pay the sum assured
just as any other pure risk cover.
• A pure endowment policy is also a form of financial saving, whereby if the person covered
remains alive beyond the tenure of the policy; he gets back the sum assured with some other
investment benefits. In addition to the basic policy, insurers offer various benefits such as double
endowment and marriage/ education endowment plans. Needless to say, the cost of such a policy
is slightly higher but worth its value.
Endowment Policy Variants:
Double Endowment Plan
• This is an endowment policy in which the insurer is required to pay the sum assured if the
insured dies within the term policy.
• If the person survives the term policy, the sum assured payable by the insurer gets doubled.
Anticipated Endowment Policy
• These policies are structured to provide sums required as anticipated expenses (marriage,
education, etc) over a stipulated period of time. With inflation becoming a big issue, companies
have realized that sometimes the money value of the policy is eroded. That is why with-profit
policies are also being introduced to offset some of the losses incurred on account of inflation.
• A portion of the sum assured is payable at regular intervals. On survival the remainder of the sum
assured is payable.
• In case of death, the full sum assured is payable to the insured.
• The premium is payable for a particular period of time.
Annuities And Pension
In an annuity, the insurer agrees to pay the insured a stipulated sum of money periodically for the
duration of the contract. The purpose of an annuity is to protect against risk as well as provide
money in the form of pension at regular intervals.
Over the years, insurers have added various features to basic insurance policies in order to
address specific needs of a cross section of people.
FINDINGS GENERAL
HISTORY OF INSURANCE
History of Insurance
The story so far...
Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan
trade by giving loans that had to be later repaid with interest when the goods arrived safely. In
2100 BC, the Code of Hammurabi granted legal status to the practice.
That, perhaps, was how insurance made its beginning. Life insurance, on the other hand, had its
origins in ancient Rome, where citizens formed burial clubs that would meet the funeral
expenses of its members as well as help survivors by making some payments.
As European civilization progressed, its social institutions and welfare practices also got more
and more refined. With the discovery of new lands, sea routes and the consequent growth in
trade, medieval guilds took it upon themselves to protect their member traders from loss on
account of fire, shipwrecks and the like.
Since most of the trade took place by sea, there was also the fear of pirates. So these guilds even
offered ransom for members held captive by pirates. Burial expenses and support in times of
sickness and poverty were other services offered. Essentially, all these revolved around the
concept of insurance or risk coverage. That's how old these concepts are, really.
In 1347, in Genoa, European maritime nations entered into the earliest known insurance contract
and decided to accept marine insurance as a practice.
The First Step…
Insurance as we know it today owes its existence to 17th century England. In fact, it began
taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where
merchants, ship-owners and underwriters met to discuss and transact business. By the end of the
18th century, Lloyd's had brewed enough business to become one of the first modern insurance
companies.
Insurance and Math...
Back to the 17th century. In 1693, astronomer Edmond Halley constructed the first mortality
table to provide a link between the life insurance premium and the average life spans based on
statistical laws of mortality and compound interest. In 1756, Joseph Dodson reworked the table,
linking premium rate to age.
Enter Companies…
The first stock companies to get into the business of insurance were chartered in England in
1720. The year 1735 saw the birth of the first insurance company in the American colonies in
Charleston, SC.
In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in
America for the benefit of ministers and their dependents.
This was followed by the formation of Fire Insurance Corporations, first in New York City
(1787) and then in Philadelphia (1794).However, it was after 1840 that life insurance really took
off in a big way. The trigger: reducing opposition from religious groups.
The Growing Years...
The 19th century saw huge developments in the field of insurance, with newer products being
devised to meet the growing needs of urbanization and industrialization.
In 1835, the infamous New York fire drew people's attention to the need to provide for sudden
and large losses. Two years later, Massachusetts became the first state to require companies by
law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can
cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the
risks are spread among several companies, was devised specifically for such situations.
There were more offshoots of the process of industrialization. In 1897, the British government
passed the Workmen's Compensation Act, which made it mandatory for a company to insure its
employees against industrial accidents.
With the advent of the automobile, public liability insurance that first made its appearance in the
1880s, gained importance and acceptance.
In the 19th century, many societies were founded to insure the life and health of their members,
while fraternal orders provided low-cost, members-only insurance.
INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again. Tracing the developments in the Indian
insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.
A brief history of the Insurance sector
The business of life insurance in India in its existing form started in India in the year 1818 with
the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and
grouped into four companies viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance
Company Ltd. GIC incorporated as a company.
Insurance Sector Reforms
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N.
Malhotra, was formed to evaluate the Indian insurance industry and recommend its future
direction.
The Malhotra committee was set up with the objective of complementing the reforms initiated in
the financial sector. The reforms were aimed at “creating a more efficient and competitive
financial system suitable for the requirements of the economy keeping in mind the structural
changes currently underway and recognizing that insurance is an important part of the overall
financial system where it was necessary to address the need for similar reforms…”
In 1994, the committee submitted the report and some of the key recommendations included:
i) Structure
• Government stake in the insurance Companies to be brought down to 50%.
• Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations.
• All the insurance companies should be given greater freedom to operate.

ii) Competition
• Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter
the industry.
• No Company should deal in both Life and General Insurance through a single entity.
• Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
• Postal Life Insurance should be allowed to operate in the rural market.
• Only one State Level Life Insurance Company should be allowed to operate in each state.
iii) Regulatory Body
• The Insurance Act should be changed
• An Insurance Regulatory body should be set up
• Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent
iv) Investments
• Mandatory Investments of LIC Life Fund in government securities to be reduced from

75% to 50%.
• GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time).
v) Customer Service
• LIC should pay interest on delays in payments beyond 30 days.

• Insurance companies must be encouraged to set up unit linked pension plans.
• Computerization of operations and updating of technology to be carried out in the

insurance industry.
The committee emphasized that in order to improve the customer services and increase the
coverage of the insurance industry should be opened up to competition. But at the same time, the
committee felt the need to exercise caution as any failure on the part of new players could ruin
the public confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating the minimum capital
requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to
insurance companies in order to improve their performance and enable them to act as
independent companies with economic motives. For this purpose, it had proposed setting up an
independent regulatory body.
Present Status Of Insurance Industry
Insurance is a Rs.400 billion business in India, and together with banking services adds about 7%
to India’s GDP. Gross premium collection is about 2% of GDP and has been growing by 15-20%
per annum. India also has the highest number of life insurance policies in force in the world, and
total investible funds with the LIC are almost 8% of GDP. Yet more than three-fourths of India’s
insurable population has no life insurance or pension cover. Health insurance of any kind is
negligible and other forms of non-life insurance are much below international standards.
Till few years back the entry of private players was banned in India but its only after first stage
of economic reforms the situation has become better with the entry of private sector .As of now
the govt insurance companies like Life Insurance corporation of India, GIC e.t.c. holds the
majority of market share whereas the private players are slowly catching up the race. As of now
the private players have concentrated on urban markets more and less on the rural markets and
their lies a huge untapped potential at rural markets. Even in urban markets the penetration levels
in India in terms of life insurance is very less and thus there is a huge market potential for the
companies to grow. The problem is how the companies can untapped the un awakened demand
of the among the target market. Also the awareness levels among the consumers about insurance
product is very low and the advertisement campaigns launched by the private players like ICICI,
KOTAK MAHINDRA has increased the level of awareness among the consumers and have
arisen the need for insurance. The consumer now thinks that insurance is important now days as
the life has becoming more and more unstable and thus there is less level of surety.
The Insurance Regulatory And Development Authority
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in
December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private sector
insurance companies.
The other decision taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the launch of the IRDA’s online service
for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the insurance
companies would have a trained workforce of insurance agents in place to sell their products,
which are expected to be introduced by early next year. Since being set up as an independent
statutory body the IRDA has put in a framework of globally compatible regulations. In the
private sector 12 life insurance and 6 general insurance companies have been registered.
CHANNELS OF DISTRIBUTION
What are channels of distribution?
• A channel of distribution comprises a set of institutions which perform all of the activities
utilized to move a product and its title from production to consumption. Distribution is
reviewed as a functional area within the firm and its interface with channel
intermediaries. In simple words it is the channel or path to taken by a product or service
to reach the end consumer.
In insurance sector different companies have different ways of distribution.

But almost all life insurance companies 70-75% of the distribution of the products is done
through advisors/agents.
But how does the advisor/agent manage to do such large distribution?
-Firstly an advisor/agent has to make a list of 100 people that he/she knows.
- Then the Advisor/agent makes a call to these clients and tries to fix an appointment.
- When an appointment is fixed the advisor/agent meet the customer & tries to sell the product.
- After that the advisor/agent asks for the reference of maximum number of people from the
client.
- The reference is asked in context to make future calls and the whole procedure is repeated
again.
But the question remains to whom does the advisor report?

An advisor/agent does not have any particular boss. There are no working hours and any
particular day on which the advisor/agent has to report in office.
An advisor/agent can do his/her operations from any branch of the company located anywhere in
the country.
But when an advisor closes a case(sells some product to the client) it has inform his/her Unit
Manager.
A Unit manager is the person who controls the advisors/agents, each unit manager has a
particular set of advisors/agents(25-30) which work with him/her as a team.
The rest 25% of the distribution in life insurance is not permanent. It is usually done through:
Bankers & Brokers.
Work shops
Small allied groups.
The Limitations Of The Current Distribution Channels
Until now, the all-dominant player in the market--Life Insurance Corporation of

India (LIC)-- has depended solely on its distribution channel of almost 800,000
agents. But LIC has been unsuccessful in the retention of agents, with a high
attrition rate stemming from selection of non-quality agents. LIC's typical strategy
has been to employ a large number of marketing people as "Development Officers"
in each branch. These Development Officers in turn employ and train a number of
agents, thereupon receiving their incentives from business generated by these
agents apart from their usual salaries from the company. The cost-effectiveness of
this channel of distribution has thereby suffered, with LIC paying bonuses and
commissions twice -- to agents and Development Officers -- for every new policy
and every subsequent renewal of premiums. After a few years of agent recruitment,
Development Officers actually collect a large revenue stream in commissions
almost effortlessly. Not surprisingly, they are one of the wealthiest classes of
government servants in the country. Efforts by LIC to impose stricter incentive
schemes have been defeated by the powerful Union of Development Officers. And
a halfhearted attempt to introduce "career agent"-type distribution also failed. So
new players must recognize these limitations of their rival and decide upon the
right mix of distribution channels in their business.
Insurance intermediaries and distribution channels
The intermediaries in the insurance business and the distribution channels used by
carriers will perhaps be the strongest drivers of growth in the sector. Multi-channel
distribution and marketing of insurance products will be the smart strategy for the
Indian market. While tied agents will continue to play an important role in
distribution, alternative channels like corporate agents, brokers, and bank
assurance will play a greater role in distribution. Firms will need to forge
relationships with the partners for strategic advantage. They need to have strong
partner relationship management. For example, local partners may have strong
distribution channel in their line of business. That can be used to sell insurance also
in a cost-effective manner.
The time has come for the industry to gradually move from traditional individual
agents towards new distribution channels, with a paradigm shift in creating
awareness and not just selling products. There are 850,000 insurance agents in
India, and the qualitative selection of agents by companies is imperative to gain the
cutting edge.
Work-site marketing, relatively inexpensive and easy to launch, is one potential
distribution channel. In this scenario, the sale of financial products and other
services to employees is through workplace-participation and is entirely on a
voluntary basis, where the employee pays for the products generally through a
payroll deduction. Products must match the need of the customers. Moreover,
protection of policyholders must be paramount.
Companies must constantly explore avenues to increase the number of distribution
channels through a variety of distribution patterns, particularly given the rapidly
changing customer profile. Traditional intermediaries have played a very important
role as a distribution outlet for insurance services and products. Enter the new
players: the Internet and telemarketing will play an increasingly critical role in
customer relationship.
Like in the European market, bank assurance can be an effective channel. In
countries like Italy, France and Spain, insurance companies have taken advantage
of customers' typical loyalty to single banks and pattern of long-term banking
relationships by successfully selling their products through these banks. Here
banks can leverage their existing resources and earn supplementary fees while
widening their range of available services. In the face of strong profitability
pressures in their traditional banking services, banks will likely seize upon
opportunities to expand their offerings by including insurance products.
The movement is more likely to be led by those who adapt. Banks moving towards
cutting edge technology would have an upper edge in selling insurance products.
At present, 12 per cent of the world's insurance products are sold through the
Internet, a figure likely to grow exponentially with a likely increase in customer
usage of the internet for their own research and product comparisons.
A cautionary note: Rural and semi urban sectors are the ones that could be serviced
by the bank assurance model. However, there are some reservations against the
efficacy of insurance distribution through public sector banks. These banks do not
have deep relationships with their customers. Some of these banks have not even
been able to sell their products at the branches of their own mutual fund
subsidiaries. Public sector banks will have to gear themselves adequately to
undertake this task, since selling insurance calls for specialized skills.
Other approaches, like call-center, direct marketing, and the Internet will grow
dramatically in importance over the next several years. These ensure direct contact
with the customers. It will enable firms to acquire, retain and build loyalty among
customers while lowering transaction costs. To make multiple channel delivery
work, all channels must be integrated tightly to deliver on the promise of service
anytime, anywhere. Information gathered by each channel must be combined to
provide a consolidated view of the customer relationship and identify likely
financial needs.
A customer accessing any channel should be recognized as a client and not
required to provide information again. What's more, a client should be able to
move easily from one mode of service to another (for example, from on-line to
face-to-face to on-line) without disruption in service.
The four main challenges facing the industry are product innovation, distribution,
customer service, and investments. Unit-linked personal insurance products might
find greater acceptability with rising customer awareness about customized,
personalized and flexible products. Flexible products and new technology will play
a crucial role in reducing the cost and, therefore, the price of insurance products.
Finding the niche markets, having the right product mix through add-on benefits
and riders, effective branding of products and services and product differentiation
from competitors' offering will be the few challenges faced by new companies.
In today's highly competitive financial services environment, effective
organizations will employ technology in a strategic role to achieve competitive
edge. Technology will play an increasing role in aiding design and administering of
products, as well in efforts to build life-long customer relationships.
At the same time, technology investment will only help as long as firms find the
right people: people with the right attitude, values, and ethics, commitment to
excellence, and focus on customer service. The critical success factor is a top-down
emphasis on exceeding customer expectations with quality people, excellent
products, and legendary service. As has been seen in other financial services, the
entry of private players ensures that customer will be the beneficiary in the long
run. It will also result in growing the market and extending the reach of insurance
across the country.
Thus, apart from the normal issues facing any new company, many new Indian
private insurance players will need to cope with the challenges of working with a
joint venture partner. They will be competing with large and well-entrenched
government-owned players. They have to overcome regulatory hurdles, change the
attitude of new recruits and satisfy some very high customer expectations. Also,
the players will have to consider the Indian market as a long-term investment, and
maintain clear-cut objectives and constant monitoring at all levels.
Rural-Urban Mix
It must be borne in mind that India is a predominantly rural country and will continue to be so in
the near future. New players may tend to favor the "creamy" layer of the urban population. But,
in doing so, they may well miss a large chunk of the insurable population. A strong case in point
is the current business composition of predominant market leader – the Life Insurance
Corporation of India. The lion's share of its new business comes from the rural and semi-rural
markets. In a country of 1 billion people, mass marketing is always a profitable and cost-
effective option for gaining market share. The rural sector is a perfect case for mass marketing.
Competition in rural areas tends to be "kinder and gentler" than that in urban areas, which can
easily be termed cutthroat And the generally smaller policy amounts in rural areas would be
more than offset by the higher volume potential in these areas in contrast with urban areas.
Identifying the right agents to harness the full potential of the vibrant and dynamic rural markets
will be imperative.
Rural insurance should be looked upon as an opportunity and not an obligation. A smaller bundle
of innovative products in sync with rural needs and perception and an efficient delivery system
are the two aspects that have to be developed in order to penetrate the rural markets.
OTHER IMPENDING REFORMS
Pension reforms
The two issues that urgently need to be addressed are the escalating burden of the unfunded
government pension and the coverage for building retirement income for the non-salaried
workforce. The IRDA (Insurance Regulatory Development Authority - the regulatory authority in
Insurance) has already submitted a road map for pension reforms to the government, and the
final decision could come in 2002. The new pension authority would fix the minimum capital
requirement for new entrants including mutual funds and banks. The regulator also seems to
favor permitting insurance players into the pension business without forming separate companies
for the purpose. Players would need to convince potential of their long-term commitment and
responsibility and make known all components of options they intend to offer in pension
products. As the Hindu/Indian joint family concept tended to disintegrate, the social security
cover it had thus far provided was no longer available to a population increasingly adding
numbers to the older generation.
The view that Pension Funds should be centralized is by no means unanimous. Some feel that in
order to maximize pension fund efficacy, management should be given over to insurance carriers,
banks, and mutual funds. They also recommend against auctioning the management of Pension
Funds, proposing instead that entities with impeccable reputations, experience, and financial
strengths should be entrusted with this important task.
Health insurance
The government plans to review the capital requirements for standalone health insurers in March
2003. The government assumes an 18-24-month timeframe after the issue of the first license for
changeover issues to be resolved. This is one area where India does not have much progress to
date. A lot needs to be done to lure foreign investment
Why private insurance?
• All the private companies have a lock in period of 10 yrs hence no disinvestments possible.
• Minimum net worth of 500 Cr required for acquiring license with a minimum paid up capital
of 100 Cr in their insurance venture.
• Commitment to increase the paid up capital manifold in next five years.
• Re insurance for all its policies worth more than 5 lakhs. Reinsurance partners, best and the
largest in the world – general cologne and Swiss reinsurance.
• Audit of accounts by at least 2 independent approved auditors each year.
• Products and pricing are cleared by IRDA, which looks into the financial visibility of the
product and the financial implication.
• IRDA is now proposing a Pvt. Policy Protection fund.
• Funds to be invested in only regulated and controlled areas with close to 80%being pumped
into only gilts thereby assuring safety of funds.
Critical Factors In Growth Of Life Insurance

Emerging Potential
The consumer mega-trends in the early years for the Indian consumer will be marked by major
social and economic shifts that will change the way consumers behave. Stimulated by increased
knowledge, information and buying power, these shifts will create aspirations for better
lifestyles. The demand for various insurance covers can be expected to escalate with efforts at
penetration. It is significant that the joint ventures with foreign insurers are at their initiative.
Notwithstanding a blocking majority of just 26 % these foreign insurers, who are world giants,
expect to drive the Indian market through their core competence in insurance. There is no
matching track record with any Indian promoter other than the state insurers.
The creators of future potential business would be the IRDA as a development direction provider
and the foreign insurers who in their efforts to create awareness to tap a latent potential would
add to potential business for the future.
Challenges in Distribution
KPMG have prepared a report on `Insurance Trends and Issues` which examines the future of
distribution for both life and general insurance in India once the sector is opened. It is based on
KPMG research in India and abroad and on insights gained through working with clients in
different markets. There are four significant issues which the report examines.
• The threat of new players taking over the market has been overplayed.
• Nationalized players will continue to hold strong market share positions, but there
will be enough business for new entrants to be profitable.
• New companies often overestimate the need for insurance expertise. They assume
that a joint venture is the most appropriate type of alliance, when in fact many forms
are possible.
• Both new and existing players must explore new distribution and marketing channels.
Need Of Brand Name In Insurance
Branding is the new key challenge in the financial services industry. Life in the 21st century
will be longer with more choice in more field of activity. The financial consequence of the
increased life span is particularly likely to be tough. Inevitably, this will lead to more
complexity, which in turn necessitates greater clarity and appeal from the service providers.
Branding is more important in the financial services market which not only faces the
problem of securing and retaining customers in an increasing competitive market place but
also experience the need for heightened relevance of the brand positioning in a world where
brand has been termed as new religion.
Life Insurance Company Premium Sum Assured

LIC 0.32 5.52
ICICI Prudential 0.67 30.15
HDFC-Standard Life 5.97 100
Birla Sunlife 14099.66 2,03,085.28
* In 2001-02 fig. In Rs. Cr (Source IRDA)
Focus and strategies are essential for development of brand in any sector but the less
tangible world of financial products historically has escaped the branding issues that have
governed development and culture in other industries.
If there was an industry, which is least, considered as an essentiality it would be the
insurance industry. It was always felt as abstract services or a fall back, more likely a safety
net. But it is more of shifting through competitive products to select most appropriate one,
but with liberalization of the industry, players have to realize the need for branding in a
competitive environment. Insurance companies need to strive for a greater customer focus
regardless the customer is the end user or the intermediary.
Intermediaries
The IRDA is currently working on norms concerning brokers. In most developed markets,
insurance brokers are regulated in the following areas:
• Registration.
• Experience, training and qualification, and other restrictions on entry into the
profession.
• Solvency requirements.
• Professional indemnity or a minimum level of errors. There is also a central
fund to protect clients against broker malpractice.
In India, the practice of brokers acting as intermediaries does not exist except in the case of
reinsurance. Estimates by Ernst & Young show that intermediaries when introduced as a part of
the changes will have a market of between Rs 100 crore and Rs 150 crore to be exploited.
Expertise and Technology
With state monopoly the insurance industry is not subject to disruptive competitive moves or
developments. The strategies of the state insurers are driven more by government policy and
criteria, such as effectiveness and equity in implementing such policy, rather than by efficiency
or impact on the bottomline per se. Naturally, the education and training in the insurance sector
have been influenced by the strategic posture of these public sector insurance companies.
The increasing importance of knowledge in the Indian insurance industry is likely to make
employability a critical factor for retention of qualified managerial manpower in the future. To
create such a milieu, insurance companies need to have a critical mass of management graduates
and professionals (or equivalent) and a top management that encourages a knowledge-based
culture.
Reinsurance
The current thrust is to increase retentions. This is being significantly achieved with reduction in
ceded reinsurance premium overseas from US $ 250 million to US $ 150 million With reinsurers
like Munich Re and Swiss Re to be licensed there a sea - change is anticipated in reinsurance
practice. Besides other reinsurers like Zurich, Allianz and
AIG are present. A view maybe formed for the possibility of transaction similar to the inter-bank
call money market in respect of risks written by non-life insurers.
Brokers can introduce changes in practice and which could include both coinsurance and
reinsurance placements.
There is likelihood of accelerated introduction of the new alternative risk techniques which
converge risk covers and replace at once insurance and its reinsurance. The market is set to
witness these unconventional changes at a pace permitted by change in local tax laws.
Health Awareness And Growth Of Life Insurance
For the liberalized general insurance industry, retail market is the area of growth. The prospect of
the health insurance market looks the brightest, particularly on account of low level of
penetrations in the area, points out an ICRA report.
According to the agency, in the health insurance market, growth will be a function of evolution
of health care business, and pricing will be the key to success (profitability), especially because
health insurance has been de-tariffed — it has been brought outside the scope of tariff setting
recommendations of the Tariff Advisory Committee. But distribution in the remotest area and
service quality will be the key drivers of competitiveness. While the public sector players have a
better reach, private sector players will create a differential on the service platform. In the case of
corporate business, ICRA feels that it will be based on relationships. While most of the players
will have to pay more as a result of increase in the reinsurance rates post September 11 attacks,
reinsurance will be the key driver to the growth of the private non-life players, as most of them
have limited capitalization levels. Effectiveness of reinsurance arrangement will be an important
factor for the private players. In this regard, the rating agency feels that public sector players are
better placed as they have established relationships and reinsurance arrangements. Even in the
case of investment portfolio, the PSU players have healthy portfolios that give them additional
strength. The threats to general insurance companies’ profitability are the declining interest rate
regime and adverse asset liability position.
The weaknesses of PSU players are poor service orientation, high operating overheads, limited
underwriting flexibility and poor systems and data collection abilities. While ICRA rated all the
PSU as ‘AAA’ in terms of the claims paying ability with a short to medium term outlook, the two
private insurance companies rated below this level by the agency did not accept the rating as it
was not up to their expectation. The private companies have been rated on financial and
operating strength of the promoter, strength of the joint venture agreement and attractiveness of
the venture to both parents and quality and terms of reinsurance agreement. The lower ratings
stemmed from the fragile nature of joint venture agreements, the uncertainty over the evolution
of the market and the short track record of these companies.
Challenges Before The Industry
The new as well as the old insurers will have to face a number of challenges in the
liberalized market.
New Insurers-
The new insurers will have to invest a minimum capital of Rs. 100 crores. The
normal gestation period is of five years. The generation of profit normally starts in
the sixth year. Hence the new insurers will have to be ready for locking up their
capital for at least 5 years before earning any profits. Besides they will face
problems of shortage of trained manpower for the insurance industry. The setting
up of various offices and distribution network is a time consuming process. Further
the new insurers will have to compete with the established insurance companies
like LIC and GIC which have a corporate image and market presence for several
years.
Expectation of the consumers –
Today LIC has more than 60 products and GIC has more than 180 products to offer
in the market. But most of them are outdated, as they are not suitable to the needs
of the consumers. Hence old as well as new insurers will have to offer innovative
products to the consumers. The consumers are particularly expecting good pension
plans, health insurance, term insurance and investment products like unit-linked
insurance, from the life insurers. Similarly the consumers expect innovative
products from the general insurers for managing healthcare, property insurance,
accident insurance and other products related to the personal line of insurance.
The consumers also expect reduction in the premium of the insurance products as
the mortality rate in India has come down by three times in the last 50 years.
Distribution Channel: -
In the liberalized insurance market, there will be multiple distribution channels,

which will include agents, brokers, corporate intermediaries, bank branches,
affinity groups and direct marketing through telesales and Internet. Some channels
will be cheaper than others. Hence there will be competition among the channels.
The new insurers will operate with the help of multiple distribution channels but
the existing insurers may be forced to operate only with the help of agents. Hence,
intense competition will grow among the old and new insurers in the market to win
the consumers. This will pose a great challenge to the insurers in the liberalized
insurance market.
Consumer Education – Very soon the market will be flooded by a large number
of products by a fairly large number of insurers operating in the Indian market.
Even with limited range of products offered by LIC and GIC, the consumers are
confused in the market. Their confusion will further increase in the face of a large
number of products in the market. The existing level of awareness of the
consumers for insurance products is very low, it is so because only 62% of the
population of India is literate and less than 10% well educated. Even the educated
consumers are ignorant about the various products of insurance. Hence it is
necessary that all the insurers should undertake the extensive plan for education of
consumers. The consumer organizations and the media also can play very
important role in education of the consumers. This will result in expansion of the
insurance market and will also enable the needy consumer to purchase appropriate
products.
Consumer Grievance Redressal –
The insurers will have to face an acute problem of the redressal of the consumers,
grievances for deficiency in products and services. The Insurance Regulatory
Development Authority (IRDA), the regulatory body has already appointed
Ombudsman for looking into the grievances of the policyholders; his judgement
will be binding on insurers. Further, under Consumer Protection Act 1986, the
consumer courts are operating at district, state and the national level. In the
competitive market, awareness level of the consumers will increase and it will help
consumers to fight for their legal right for deficiency in services. Hence the
number of legal cases filed by the consumers against insurers is likely to increase
substantially in future. This will be a challenge to the insurers.
COMPANY PROFILE
COMPANY PROFILE
ICICI and PRUDENTIAL came together in 1993 to provide mutual fund products
in India and today are the largest private sector mutual fund company in India. The
two companies bring together two of the strongest financial service brands in Asia
known for their professionalism, excellent quality of service and long term
commitment to their customers. Riding on the success of this relationship; the two
companies joined hands once more in 2000 to form ICICI PRUDENTIAL life
insurance with a commitment to provide leading-edge life insurance solutions.
ICICI Bank:
ICICI bank (NYSE:IBN) is India’s second largest bank with an asset base of
Rs.106812 crore. ICICI bank provides a broad spectrum of financial services to
individual and companies. It includes mortgages, car and personal loans, credit and
debit cards, corporate and agricultural finance. The bank services a growing
customer base of more than 7 million customer accounts & 5 million bondholders
accounts through a multi- channel access network. This includes about 450
branches & extension counters, 1675 ATM’s, call centers and internet banking
(www.iciciprulife.com). ICICI bank posted a net profit of Rs. 1206 crore for year
ended 31st march’2003. ICICI bank is the only Indian company to be rated above
the country rating by the international credit rating. The bank enjoys the highest
AAA (or equivalent) rating from all leading Indian rating agencies.
PRUDENTIAL plc:
Established in 1848, prudential plc is a leading international financial services

company in U.K, with around US$250 billion funds under management; and more
than 16 million customers worldwide. Prudential has brought to market an
integrated range of financial services and products that now include life insurance,
pension, mutual funds, banking, investment management & general insurance. In
Asia, Prudential is UK’s largest life insurance company with a vast network of 22
life and mutual fund operations in 12 countries – China, Hong Kong, India,
Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and
Vietnam. Since 1923, Prudential has championed customer-centric products &
services, supported by over 60000 staff & agents across the region.
ICICI Prudential Life Insurance Company Limited (ICICI Pru)
Leading private life insurance company of India was incorporated on July 20,
2000 is a 74:26, joint venture between ICICI and Prudential plc of U.K. The
authorized capital of the company is Rs.2300 million and the paid up capital is
Rs.1500 million. In November 2000, ICICI Prudential Life Insurance was granted
Certification of Registration for carrying out life insurance business by the
Insurance Regulatory & Development Authority of India. The Company
commenced operations on December 19’2000, becoming one the first few private
sector players to enter the liberalized arena.
In the period April-December 2004, the company garnered Rs 8.6 billion of new
business premium for a total sum assured of over Rs 73.6 billion and wrote nearly
345,000 policies. The company has a network of over 50,000 advisors; as well as 7
bancassurance tie-ups. Today, ICICI Prudential has emerged as the No. 1 private
life insurer in the country, with a wide range of flexible products that meet the
needs of the Indian customer at every step in life.
The company recognizes that the driving force for gaining sustainable competitive
advantage in this business is superior customer experience and investment behind
the brand. The company aims to achieve this by striving to provide world-class
service levels through constant innovation in products, distribution channels and
technology based delivery.
ICICI Prudential Life Insurance was established in 2000 with a commitment to
expand and reshape the life insurance industry in India. The company was amongst
the first private sector insurance companies to begin operations after receiving
approval from Insurance Regulatory Development Authority (IRDA), and in the
time since, has taken several steps towards its realizing its goal.
The company's wide range of products, distribution strengths and powerful brand
has driven its growth across a cross-section of people and cities. On March 31,
2002, the company crossed the 100,000 policies milestone with a premium income
of around Rs. 122 crore and a total sum assured of over Rs. 2,700 crore to establish
itself as the No. 1 private life insurer in the country.
MANAGEMENT
Board Of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises

reputed people from the finance industry both from India and abroad.
Mr. K.V. Kamath, Chairman
Mr. Mark Norbom

Mrs. Lalita D. Gupte
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. Kevin Holmgren
Mr. M.P. Modi
Mr. R Narayanan
Ms. Shikha Sharma, Managing Director
Management Team
Ms. Shikha Sharma, Managing Director

Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Mr. Shubhro J. Mitra, Chief - Human Resources
Mr. Puneet Nanda, Head - Investments
Ms. Anita Pai, Chief - Operations & Underwriting
Mr. V. Rajagopalan, Appointed Actuary
Mr. Shridhar Sethuram, Chief - Sales & Marketing
Mr. Anil Tikoo, Head - Information Technology
DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India, having commenced operations in 58 cities and towns in India.
These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad, Bangalore,
Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore,
Dehradun, Goa, Guntur, Gurgaon, Hyderabad, Hubli, Indore, Jaipur, Jalandhar,
Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kota, Kolhapur,
Kottayam, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mumbai, Nagpur,
Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Surat, Thane,
Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vashi, Vijayawada and Vizag.
The company has eleven bancassurance tie-ups, having agreements with ICICI
Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, and
Punjab & Maharashtra Co-operative Bank, Goa State Co-operative Bank, Indoor
Paraspar Sahakari Bank, Manipal State Co-operative Bank, Shamrao Vithal Co-
operative Bank and Jalgaon People''s Co-operative Bank, as well as some corporate
agents. It has also tied up with organisations like Dhan for distribution of Salaam
Zindagi, a policy for the socially and economically underprivileged sections of
society.
ICICI Prudential has recruited and trained over 32,000 insurance advisors to
interface with and advise customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers.
OPERATIONS OF ICICI
The company is now operational in Mumbai, New Delhi, Pune, Chennai, Kolkatta,
Bangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin,
Meerut, Mangalore and Ludhiana.
The vision and mission of ICICI PRUDENTIAL can be summarized as follows:
ICICI Prudential Life Insurance Co. Ltd.
VISION
To be the dominant new player in the Life Insurance Industry.
This will be achieved through:
- Recruitment of quality advisors.
- Intensive product training
- Selling skills training.
- Superior technology & processes.
- Innovative financial solutions.
Achievements so far!
- Leading Private Life Insurance company.
- Strong brand recognition.
- Every 2.75 minutes we cover life.
- State-of-the-art support services.
RECRUITING LIFE INSURANCE ADVISORS/AGENTS.
What is an insurance agent?

An agent is the representative of an insurance company who sells different policies
or product to its clients.
Another term used for insurance agents is advisors; this term was introduced by
ICICI Prudential life insurance company Ltd.
Today in life insurance companies advisors are known to
be the backbone of the whole system. Advisors/agents do not work on monthly
payroll basis; they receive a certain commission on the policies they sell to the
clients.
The eligibility required to become an advisor/agent is that he/she should be 12th
pass to operate in urban area and 10th pass for rural areas. Before a person becomes
an advisor/agent he/she has to undergo 100hrs training according to IRDA norms
which is compulsory.
70-75% of profits gained in life insurance business is through advisors/agents.
Advisor Role.
To provide ongoing financial advice for his/her clients:
- Identify future clients

- Making appointments
- Conduct financial review meetings with prospects/clients.
- Close sales
- Get referrals
- Provide service to clients.
- Follows internal sales and reporting system.
-
Working Environment of an advisor/agent.
- To be a part of world-class sales team.
- Work from your own office or residence.
- Work full time or part time(an advisor can work part time by undergoing
only 50hrs of training and 100hrs training is for full time advisors.)
- Earn Commission, Bonus & Incentives.
- No upper limits on earnings.
- Flexible career.
Opportunities for an Advisor/agent.
- No startup capital required.

- Flexible working environment.
- Be your own boss.
- Unlimited earning potential.
- To be a part of a world-class team.
Commission Structure.
Different products will have different commission structures.
For example: Single Premium products will have a commission of 2%.
- Renewal Commission is paid at the following rates:

2nd yr:7.5% 3rd yr:7.5% 4th yr:5% 5th yr:5% onwards
Payments & benefits-commission Structure for advisors/agents.
Year 1 Year 2 Year 3

Number of Policies Sold 50 75 100
Average Premium Rs. 10000 10000 10000
Total Premium Earned Rs. 500000 750000 1000000
Commission @ 25% 125000 187500 250000
Bonus @ 40% of Commission 50000 75000 100000
Earnings from New Business Rs. 175000 262500 350000
Commission on Renewal Premium@7.5% 37500 56250

For year 2, 3, and 5% after that 37500
Earnings from renewal business Rs. 37500 93750
Total Earnings Rs. 175000 300000 443750
Most preferred profiles to recruit as Advisors/agents.

- CA’S
- Doctors
- Lawyers
- Retired Defence officers
- Government employees
- Bankers and brokers.
- Agents of other life insurance companies.
- Executives working in call centers.
- House wives.
People from these profiles usually have a good network of communication and do
not face much problem in finding clients and selling different products.
That’s why almost every insurance company try to recruit people as advisor/agent
belonging to these profiles.
How does an advisor/agent work?

- Firstly an advisor/agent has to make a list of 100 people
that he/she knows
- Then the Advisor/agent makes a call to these clients and
tries to fix an appointment.
- When an appointment is fixed the advisor/agent meets
the customer & tries to sell the product
- After that the advisor/agent asks for the reference of
maximum number of people from the client.
- The reference is asked in context to make future calls
and the whole procedure is repeated again.
But the question remains to whom does the advisor report?
An advisor/agent does not have any particular boss. There are no working hours
and any particular day on which the advisor/agent has to report in office.
An advisor/agent can do his/her operations from any branch of the company
located anywhere in the country.
But when an advisor closes a case(sells some product to the client) it has inform
his/her Unit Manager.
A Unit manager is the person who controls the advisors/agents, each unit manager
has a particular set of advisors/agents(25-30) which work with him/her as a team.
Market survey on major life insurance companies.
• A market survey was done on life insurance companies. Different questions regarding the
companies training programs for agents/advisor, top 5 usp's, training centers etc were asked.
The areas covered up in this survey were Noida and central Delhi. The report contains details
of different life insurance companies which are in healthy competition with ICICI Prudential
life insurance.
The list of companies covered up in this survey:
1. LIFE INSURANCE CORPORATION(LIC)

2. AVIVA
3. HDFC-Standard life
4. MAX NEW YORK LIFE INSURANCE
5. BIRLA SUNLIFE
6. TATA-AIG
Life Insurance Corporation of India (LIC)

-The Life Insurance Corporation (LIC) was established about 44 years ago with a view to
provide an insurance cover against various risks in life. A monolith then, the corporation,
enjoyed a monopoly status and became synonymous with life insurance.
-Its main asset is its staff strength of 1.24 lakh employees and 2,048 branches and over six lakh
agency force.
-At the industry level, along with the Government and the GIC, it has helped establish the
National Insurance Academy. It presently transacts individual life insurance businesses, group
insurance businesses, social security schemes and pensions, grants housing loans through its
subsidiary; and markets savings and investment products through its mutual fund. It pays off
about Rs 6,000 crore annually to 5.6 million policyholders.
Training activities for agents/advisors.
•As per IRDA,100hrs training is compulsory for 17 days.
•Only classroom training are available.
•Only full-time training is given.
(ICICIPrudential advantage:- Part time option available.)
Training centers.
- There are three divisional training centers in Delhi,
C.P
Janakpuri
Lagpat nagar.
Depends on the plan
Features:
The plan provides joint life last survivor survival benefits to take care of education expenses of
children. Recurring monthly survival benefits on increasing scale are expected to meet fees and
other expenses of education. Lump sum survival benefit can be utilized towards expenses for
admission to professional course. Lump sum maturity amount is provided to meet the profession/
business setting up expenses.
The plan is a single premium without profit assurance plan with provision for guaranteed and
loyalty additions. The valuable insurance cover on the life of the parent-proposer in case of
unfortunate event will enable the child to carry on the education without any financial
interruption.
Age of the named child Survival benefit p.a. payable monthly in

arrear
Upto 9 years Rs.3000 ( 12 %)
10 to 17 years Rs.6000 ( 24 %)
18 to 23 Years Rs.12000 ( 48 %)
The survival benefit as a percentage of sum assured is shown in brackets
Death Benefits:On death of the parent - proposer during the policy term, a sum equivalent to the
basic sum assured is payable. Risk on the life of the named child is not covered.
Policy Parameters:
Min Max
Entry Age 20 (0 for child) 70 (12 for child)
Sum Assured 25000 1000000
Term Not Applicable Not Applicable
Mode of Payment Max Maturity Age Policy loan available

Single Premium 70 years No
Different training programs for agents.

- Skills upgradation: How to give presentations and company introduction.
- Knowing your customers: Matching customer request with products.
Modes & ways through which the company recruit agents.
- Through development officers.
- Through corporate agencies(Bankers and Brokers).
- Carrier agent branch (i) rural carrier agent
(ii) urban carrier agent.
Current agent force
25000 agents in Delhi.
Top 5 USP’s (Unique Selling Proposition)
- TRUST(since 1956),ORG marks survey has rated LIC most trusted branch in life
insurance
- Having a vast network of 2050 branches and nearly 10 lakh agents.
- Best claim performance in the world by Depth and Maturity claim.
- A government undertaken company ensuring safe and corruption free insurance.
Variety of plans available to match the customer' s needs.
AVIVA.
-Aviva plc was launched in 1st July 2002 as a new name
for CGNU plc. A world leader in financial services, the
group has 300-year pedigree.
- Aviva brings together 50 trading names and enables the group to harness the benefits of its size
and international capabilities as the seventh largest insurer in the world.
- Its main activities are long-term savings, fund management and general insurance.
- The group has 56,000 employees serving 30 million
customers worldwide.
- As per IRDA,100hrs training is compulsory
- Both online & classroom training are available.
- In the 100 hrs training the advisor/agent is given
knowledge about insurance & company.
- Both part time & full time option available.
Training centers.
- NIS: South extension & Patel nagar.
- In-house training center at C.P branch.
(ICICIPrudential Advantage:- More training centers available at different locations.)
Different policies are available
- For single time investment
Minimum- 2%
Maximum-35%
- For insurance policies
Minimum -5%
Maximum - 35%
- Knowing your customers: matching client request with product.
- Product Training: giving knowledge about the different products of the company.
- Selling skills: How to make the client more satisfied.
- Newspaper adds.
- Reference.
- Personal contacts.
- Walk-ins*
*Through interviews and written exams.
Current agent force
1500-2000 in Delhi.

- Unique way of selling(financial health check)taking
information from the customer, based on that report
advise is given for future investments or savings.
- Showing the future to the customer so that it can decide
the type of investment.
- Seventh largest insurer in the world.
- Provides need based products of different kinds like
non-medical products which are investment oriented.
- Number one asset management company which brings
together 50 trading names.
HDFC - Standard Life

- HDFC Standard Life Insurance Company is a joint venture between India's largest housing
finance provider, HDFC and Europe's largest mutual life assurance company
- The Standard Life Assurance Company (U. K).
- Standard Life, UK, founded in 1825, has been at the forefront of the UK insurance industry
for 175 years by combining sound financial judgement with integrity and reliability.
- It is the Largest Mutual Life company in Europe and has total assets of Rs. 5,50,000 crore.
- As per IRDA guidelines,100hrs training is compulsory.
- Both online & classroom training are available.
- Training is compulsory with both part time & full time
options.
- A clear exam is conducted by IRDA, the minimum
qualification required is-
12th pass for urban areas
10th pass for rural areas.
Training centers.
NIS: Patel nagar, south extension(Delhi).
- School net.
Depends on the product, like on savings
20-40% Ist year premium.
- on investment 2%
- on pension 7.5%
- IRDA training:100 hrs training which is compulsory.
- Product training: Making the agents well aware of the company's products.
- Communication training: How to communicate more effectively with your customers.
- Behavioral training: How to understand you customers more properly.
- Presentation skills
- Direct contacts.
- Newspaper adds.
- Consultants.
- Member of the company can introduce a new member.
Current agent force
200-300 in Delhi.

- Ist private sector life insurance company to be granted a license.
- Declared bonus every year from the day of incorporation(only company.)
- Provides fast service to the customers in terms of claim.
- Best insurer according to Outlook.
- Well supported by foreign partner Standard Life,U.K which was recently voted ' company of
the decade' in U.K by the Independent Brokers called IFAs.
Max Newyork Life.
Max India:
- Max India Limited is a multi-business corporation that has business interests in telecom
services, bulk pharmaceuticals, electronic components and specialty products. it is also the
service-oriented businesses of healthcare, life insurance and information technology.
New York Life:
- New York Life has grown to be a Fortune 100 company and an expert in life insurance. It was
the first insurance company to offer cash dividends to policy owners.
- In 1894, New York Life pioneered the then unheard-of concept of insuring women at the same
rate as men. Thereafter, it continued to introduce a series of firsts - a disability benefit clause in
1920, unemployment insurance in 1992, and complete customer care on the Web in 1998.
- Today New York Life has over US billion in assets under management and over 30,000 agents
and employees worldwide.
- The October 2000 Fortune Survey named New York Life amongst the top three most admired
life and health insurance companies worldwide.
- With over 3 million policy holders, New York Life is a leading provider of insurance in a host
of countries worldwide.
- As per IRDA,100hrs training is compulsory.
- Only classroom training is available.
- Only fulltime training is given.
Training centers.
Max newyork life has in-house training centers all over Delhi.
Himalaya house -C.P
Seactor-18, Noida.
Minimum - 2%
Maximum - 35%.
Varies from product to product- 25%,7.5%,10%&15%.
- Module training: giving details about the product.
- Ethical selling: different techniques of selling.
- Motivational tools: How to make the client more satisfied or to sell better.
- Reference(only)
Max newyork life recruits agents only on basis of reference.
Current agent force
2000-3000 in Delhi.
- Training, which is compulsory for every agent/advisor so that they work according to the
company's working style.
- Emphasizes on whole life products.
- Flexibility of the product to adapt to customers changing needs in future.
- Believes in healthy competition with other life insurance companies.
- Agent is the power.
Tata AIG
-The Tata AIG joint venture is a tie up between the established Tata Group and American
International Group Inc.
-The Tata Group is one of the largest and most respected industrial houses in the country.
-AIG is a leading US based insurance and financial services company with a presence in over
130 countries and jurisdictions around the world.

•As per IRDA,100hrs training is compulsory for 17 days.
•Both online & classroom training are available.
- Then there is six days product training in which an agent is made familiar with different
products of the company.
•Only full-time training is given.
Training centers.
Through NIS, Tata AIG has NIS training centers in Delhi for IRDA training.
•Berjaya house(New friends Colony.)
•Pitampura
•G.K-1
•Noida Sector-4.
40% on 1st year premium.
7-5% on next 6 years.
•Who are we and what we do?
•What does your customer actually need?
•How do you create & protect wealth for your client?
•How can you meet 5 prospects daily?
•Advertisement (Newspaper adds)
- Contacts. (When advisor becomes consultant he/she has its
own team to use contacts.)
Current agent force
6000 agents all over India.

•AIG stands second in insurance, in the world.
•Tata gives a compounding bonus to policy holders.
•Highest commission structure of 40%.
•Tata itself is a known brand.
•A good carrier graph.
•*Advisors become consultants in a short span of time.
Birla Sun Life Insurance Company Limited

- Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life
Financial of Canada to enter the Indian insurance sector.
- The Aditya Birla Group, a multinational conglomerate has over 75 business units in India and
overseas with operations in Canada, USA, UK, Thailand, Indonesia, Philippines, Malaysia and
Egypt to name a few.
Foreign Partner:
- Sun Life Assurance, Sun Life Financials primary insurance business, has excellent ratings with
the world's top rating agencies.
- With assets under management as on September 30, 2000 totaling more than CDN billion, it
ranks amongst the largest international financial services organizations in the world.
- As per IRDA,100hrs training is compulsory.
-Both online & classroom training are available:
classroom training is 100hrs(13 days)or 50 hrs(7 days)- C.A, Dr, Advocate & MBA.
- Online training is for
100hrs- general
50hrs- CA/Dr/Advocate/MBA.
25hrs(3 days)- Renewal.
- Both part time & full time training option is available.
Training centers.
- Ritu Nanda institute of training(G.K)
- Amity Business school.
- NIS(8 Balagi estate, Kalkaji)
- School net India ltd.
- Product training: 3 days training in which agents are made familiar with the products of the
company.
- Refresher training
- Direct sales training:
indirect channel : in this an agent - calls the client
- fixes an appointment.
- then meets the client.

Interviews & written exam.
Newspaper adds.
Current agent force
750 agents in Delhi.
Trusted name, as a part of Aditya Birla group.
India’s second largest business house
Multinational company which is growing rapidly.
Having second position in private life insurance.
Offers different plans with ethical and good claim settlement.
Retail Market Data
Market Share in Value: Apr -Jul 04

3,421
1,066
2,257
28,033
LIC ICICI - Pru Birla Sun Life Others
YTD YTD YTD

Apr -J ul 04 Market Share Apr -J ul 03 Market Share Growth
LIC 28,033 80.6% 22,437 89.8% 24.9%
ICICI - Pru 2,257 6.5% 792 3.2% 185.1%
Birla Sun Life 1,066 3.1% 322 1.3% 230.8%
Allianz Bajaj 738 2.1% 239 1.0% 208.8%
Tata AIG 570 1.6% 277 1.1% 105.6%
HDFC Standard 536 1.5% 292 1.2% 83.5%
SBI Life 177 0.5% 40 0.2% 339.5%
Others 1,400 4.0% 574 2.3% 143.9%
Industry 34,777 100.0% 24,974 100.0% 39.3%
Market Share Among Private Players
Market Share Among Private Companies
ICICI Prulife
24%
HDFC Standard
40%
Bajaj Allianz
12%
Birla Sunlife
6%
18%
Others
DIFFERENT PLANS OFFERED BY ICICI PRUDENTIAL
ICICI Prudential Life Insurance offers Life Guard - a set of pure protection plans. Choose from
amongst three different product structures to insure your life and provide total security to your
family, at a very affordable cost.
Level Term Assurance with return of premium
On death the entire sum assured will be paid.

On maturity, all the premiums paid will be returned.
Level Term Assurance without return of premium

No survival or maturity benefits.
You can also enhance the above two policies by adding Accident & Disability Benefit Rider and
Waiver of Premium Rider (WOP).
Level Term Assurance – Single premium

No survival or maturity benefits.
As a responsible parent, you will always strive to ensure a hassle-free, successful life for your
child. However, life is full of uncertainties and even the best-laid plans can go wrong. Here's how
you can give your child a 100% safe and assured tomorrow, whatever the uncertainties.
SmartKid is designed to provide flexibility and safeguard your child's future education and
lifestyle, taking all possibilities into account.
1
.
SmartKid regular premium
2
.SmartKid unit-linked regular premium
3
.SmartKid unit-linked single premium
All these plans offer you:

Guaranteed Financial Benefits: Regular payments at critical stages in your child's life,
like Board examinations, Graduation and Post-graduation.
Total peace of mind
Sum Assured is paid immediately: Ensures that your loved ones stay financially secure, even in
your absence.
All future premiums are waived: Ensuring that your family is not financially burdened in your
absence.
Policy benefits continue: The educational benefits of the policy continue, ensuring that your
child can realize his or her dreams without any hassles.
Development Allowance: Smart Kid guarantees regular income to secure your child's
educational career and also ensures his or her all-round development, for a nominal additional
amount. The Income Benefit Rider takes care of this through an annual payment of 10% of the
sum assured, to your child, till the maturity of the policy, in the unfortunate event of the death of
the parent.
LifeTime Pension II gives you the freedom to choose the amount of premium, and invest in
market-linked funds, to generate potentially higher returns. On the future retirement date, the
accumulated value of the units will be used to purchase an annuity - to provide you with regular
income for life.
Power to choose the protection level: Choose from either a Zero sum assured or a sum assured,
which will be equal to the product of your annual contribution and term.
Power to choose the retirement date: Take advantage of market movements by choosing a
vesting age between 45 - 75 years of age.
Power to increase your investments: Use your surplus funds to top-up your investments during
the deferment period.
Power to invest in a plan based on your priorities: Choose from among four funds, based on
your investment objective and risk appetite. If at a later stage your financial priorities change,
you can switch between the various fund options, absolutely free, 4 times a year.
Power to increase / decrease your contribution: Based on your requirements, increase or

decrease your contribution.
Group Solutions
In an era of competitive parity, the only asset that makes a decisive difference between
corporate success and failure is the quality of human capital. Employee benefits have
proven to be an excellent tool to optimize the retention of talent and improve an
organization’s bottomline. The quality of an organization’s employee benefits establishes
and maintains a company's image as a caring employer. Optimum care of employees is a
long-term investment that results in a sustained competitive advantage for an organization
in the times to come.
ICICI Pru Group Solutions Advantage

An integrated basket of employee benefit solutions that offer incomparable flexible benefits.
Sound investment management that focuses on safety, stability and profitability of the portfolio.
Personalised financial planning for your employee that takes care of his/her changing financial
needs at every stage of life.
Quality service initiatives and transparency across all operations, promising superlative
operational efficiency.
Group Term Assurance : Helps provide affordable cover to members of a group.
Group Gratuity Plan : Helps employers fund their statutory gratuity obligation in a flexible and
hassle-free manner.
Group Superannuation Plan : A flexible scheme (defined benefit and defined contribution) to
provide a retirement kitty for each member of the group.
Savings Plans
ICICI Prudential offers a variety of policies that give you the benefits of protection and the
opportunity to save for important assets or events, like a home, a car or a wedding.
An insurance plan that gives added protection savings, multiple options, plus the power of
liquidity.
An insurance plan that gives added protection savings and multiple options, all in one!
A complete market-linked insurance plan that adapts itself to your changing protection and
investment needs, throughout a lifetime.
A traditional endowment savings plan that offers both high returns and protection.
An endowment savings plan that allows you to get back substantial survival benefits
without having to wait till the maturity date.
ICICI PRU IN THE NEWS
ICICI PRU TOPS PREMIUM INCOME CHART
Business Standard: April 15, 2004
Mumbai: ICICI Prudential Life Insurance Company has topped the premium income chart
among private insurance players for the third year in a row. It logged a premium income of Rs
989 crore in the financial year 2003-04.
This reflects a 135 per cent growth over last year''s (2002-03) income of Rs 420 crore. New
business income rose by 106 per cent to Rs 751 crore and despite a 15 per cent lapse rate in
policy renewals, the company''s renewal premium increased by 325 per cent to Rs 238 crore.
At present ICICI Prudential Life has around a 40 per cent share among the private insurance
industry in retail sales. The total sum assured since its inception has risen to Rs 16,000 crore with
Rs 8,173 crore added in fiscal 2004.
ICICI Prudential Lift chief executive officer and managing director Shikha Sharma said that over
80 per cent of the 4.36 lakh policies sold were unit-linked plans, with pension plans accounting
for just 28 per cent of new businesses.
''We intend to come out with more pension and annuity products in the current fiscal (2004-05)
as we find this as an undeveloped market,'' said Sharma.
Not enough products exist in the market today as the industry continues to await tax reforms.
Today policyholders can get total tax exemption up to Rs 10,000 under Section 10 CCC of the
Income Tax Act.
As such, without tax reforms it is not conducive for customers to invest more under pension
plans. On the group side, ICICI Prudential has not been as active as it has been a late entrant.
''We started targeting group insurance this year (2003-04) and have been able to tap around 100
clients. The premium has been minuscule as the sales cycle is long and varies between six-nine
months to close a transaction,'' said Sharma.
Moreover, with the rate war rampant in group term, ICICI Prudential has been choosy on the
business it underwrites.
''Group term is a commodity, and as business is purely rate-driven, this is not our focus area,''
she added.
ICICI PRUDENTIAL LIFE HIKES CAPITAL TO 675 CRORE
The Economic Times: March 17, 2004
ICICI Prudential Life has hiked its capital by Rs 50 crore to Rs 675 crore in view of booming
business.
Hiking the capital for the ninth time since its inception in December 2000, the 74:26 joint
venture between ICICI Bank and Prudential Plc said the additional capital would be used for
meeting capital adequacy norms stipulated by the Insurance Regulatory and Development
Authority.
'ICICI Prudential has grown exponentially over the past three years,' its Managing Director
Shikha Sharma said in a statement.
In the life insurance business, expenses were incurred up front while the revenue (in the form of
premia) stream was staggered, and this necessitated a life insurance company to regularly infuse
capital during the first 5-7 years in order to support the growth of business.
With an authorised capital of Rs 1,200 crore, the second generation life insurer''s premium mop
up had crossed Rs 1,000 crore in December 2003.
The insurance company, which expanded to 54 locations across the country, so far sold over 5.50
lakh policies for a sum assured of over Rs 13,000 crore.
BEST LIFE INSURER AWARD
Outlook Money: March 15, 2004
Winner: ICICI Prudential
In the short span since the insurance sector was opened up, ICICI Prudential Life
Insurance has literally dictated the market''s evolution. Catering to all age and income
segments, the company started out with the traditional insurance policies that were easy
to understand. The idea was to entice customers used to LIC''s style of functioning.
Soon, ICICI Prudential began exploring new areas. It introduced modern products, like
the market-linked product where returns are linked to the market performance of the
underlying assets.
ICICI Prudential leads in virtually all parameters: size of agent force, number of policies
sold, total sum assured, premium income and productivity of agents. It has set exacting
standards for its range of products, riders offered, quality of information in promotional
material and even in the insurance awareness events organised.
What has been in favour of ICICI Prudential is its range of products in each segment of
life insurance-traditional, unit-linked and single-premium options, be they for retirement
plans or child plans. With such a comprehensive bouquet, it caters to all financial goals of
a customer.
ICICI Prudential also has a strong sales network and tie-ups with banks to offer
bancassurance products. Its supplementary marketing channels contribute close to 30 per
cent of its premium income. The company is now reaching out to new and untapped
markets. ICICI Prudential works closely with NGOs and micro-finance institutions to
spread awareness about the concept of insurance in rural areas. This helps meet the social
obligations mandated by IRDA, but the company has gone a step ahead by actively
involving the villagers and working closely with them.
The gap between ICICI Prudential and the second-in-line private insurer is vast. In fact,
this hiatus has led some analysts to wonder if the company isn''t a trifle too aggressive.
But others say this has more to do with the company''s customer-centric focus, its pan-
India presence and superior risk management and investment strategies. ICICI Prudential
is not, however, resting on its laurels. The company will continue to innovate and set the
standards.
ICICI PRU HAS 40% OF THE PRIVATE LIFE
INSURANCE MARKET
The Economic Times: March 1, 2004
Mumbai: ICICI Prudential Life Insurance has increased its market share among private
life insurers to nearly 40%, from 33% as of end-December. The company''s first-year
premium income in the April-January period stood at Rs 464.6 crore, accounting for
39.3% of the Rs 1,364 crore premium booked by all private life insurers together.
Considering the entire life market, including the Rs 9,780 crore booked by Life Insurance
Corporation, ICICI Pru''s market share works out to around 4.17%. The life insurance
market continues to be dominated by LIC which has about 87.8% share. This is only a
marginal dip from its 88.2% share in end-December. These comparisons are only for first
year or new business premium. If renewal premium were to be taken into account, LIC''s
share would increase further to over 96%.
According to business figures brought out by the Insurance Regulatory and Development
Authority (IRDA), the first-year premium mobilised by ICICI Prudential Life Insurance
in the first ten months of `03-04 amounted to Rs 464.4. This is more than twice the
premium income generated by its closest rival Birla Sun Life which raised Rs 195 crore
during the same period.
HDFC Standard Life and Tata AIG have retained their third and fourth positions.
Interestingly, there are three companies that are neck-and-neck in the battle to be among
the top five with a marketshare of close to 7% - Allianz Bajaj, Max New York Life and
SBI Life Insurance.
In the group insurance market, LIC''s share in the country is around 93%. Among the
private companies, SBI Life, Birla Sun Life and HDFC Standard Life dominate the group
insurance segment. SBI Life, with its group policies for mortgage loan protection and
depositor insurance, has close to 45.8% of the group market among private companies.
Birla Sun Life has a 23.4% share, followed by HDFC Standard Life which has a 18.4%
share. Except these three companies, other players have a negligible presence in the
group market.
But, with over a month to go for the close of financial year, the rankings could still
change dramatically. More so, because insurance companies, particularly LIC, go into an
overdrive in mobilising new business.
LIMITATIONS OF THE SURVEY
Risk of being identified as a summer trainee( icici prudential) while visiting different life
insurance companies.
Time
Climatic conditions.
RECOMMENDATIONS
AND
SUGGESTIONS
RECOMMENDATIONS AND SUGGESTIONS
Basic Understanding
There are some very basic understandings in this industry, insurance industry, that I have always
kept in mind throughout my recommendations and which I feel is utmost essential to keep in
mind before formulating any kind of strategies by the company. These understandings are:
An insurance policy is a product which needs a lot of convincing before it can be sold because
what I analyzed in this internship that there are very few people who have a basic knowledge
about life insurance especially the lower middle class society. While selling these policies there
are many different kinds of customers that an advisor/agent faces:
Customer1: He/she knows about insurance and is interested in being insured
- Customer2: He/she does not have any interment knowledge a
insurance and the advisor/agent has to explain everything and
in the end the advisor/agent gets nothing out of it.
Customer3: He/she goes through the briefs but takes a lot of time to be convinced.
Promotions.
A customer usually gets convinced through following ways:
By first knowing what your customer needs.
Then telling him what he/she can benefit out of it.
Giving him/her time to think.
Insurance is all a game of showing the future to your customers and giving them a solution to
their future problems, because no body wants to get insured but everyone needs it.
CONCLUSION
CONCLUSION
ICICI Prudential life insurance company is the number one private life insurance company in
India with a market share of 42.2%. Birla sunlife stands second in private life insurance
companies with a market share of 18.5%. Looking in private sector ICICI Prudential has been
the dominant player because the amount of gap between the market share is huge.
But if we analyze in all sectors of life insurance then LIC has been the most dominant player
since 1956. The impact of LIC has been so much in both rural and urban areas that people use
the term LIC instead of life insurance.
ICICI prudential faces a big challenge infront of them to stay in the race with Life insurance
corporation(LIC) because with the entrance of other companies like Max newyork , Tata-AIG &
Aviva the competition has become more tough.
But insurance is also growing day by day, India has a population of 1.2 billion and only 33.3%
population is insured. This means insurance is an upcoming industry but ICICI prudential has to
work a lot on their strategies to overcome LIC.
BIBLIOGRAPHY
BIBLIOGRAPHY
PASSTRAK Life Insurance License Exam Manual
by Dearborn Financial Service
The Life Insurance Game

by Ronald Kessler
All about life insurance agents

by Vaswar Das Gupta
Laws of Insurance
by Kay Strang
WEBSITES
www.iciciprulife.com
WE DID HAVE
‘WINNING GENES’

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ACKNOWLEDGEMENT

This project entitled (Channel Development for Tide agencies of

The project and accompanied training at ICICI

The project was taken and completed during the

EXECUTIVE SUMMARY …………………………………………………. 11

OBJECTIVE OF THE STUDY…………………………………………………. 14

 Introduction - basics of insurance…………………………………………….. 17

 Need of life of Insurance…………………………………………………………. 20

 Types of life insurance…………………………………………………………… 23

 History of Insurance …………………………………………………………….. 28

 Insurance in India …………..…………………………………………………. 31

 Present Status of Insurance Industry ……………………………………………. 35

 Role of IRDA ……………………..…………………………………………… 35

 Channel Distribution ……………………………………………………………… 37

 Why Private Insurance?…………………………………………………………. 45

 Need For Brand Name In Insurance………………………………………………. 47

 Company Profile ……………………………………..………………….. 54

 ICICI Prudential Introduction…………………………………………………. 57

 Recruiting life insurance advisors…………………………………………….. 64

 Market survey on life insurance companies………………………………… 70

 Different plans offered by ICICI Prudential………………………………… 84

 Rewards and recognition

ICICI Prudential in news…………………………………………………… 90

RECOMMENDATIONS & SUGGESTIONS ……………………………

WE DID HAVE ‘WINNING GENES’………………………… 104

The report also throws a light on the following:

 Life insurance corporation

 Primary data collected through questionnaires.

LIFE INSURANCE GENERAL

How insurance works?

Definition of Life Insurance

Who can buy a life insurance policy?

Life Insurance As An Investment:-

• Whole Life Policy

Term Insurance Policy

Term Insurance variants:

Premium Back Term Insurance Plan

• In case of death, the sum assured would be fully payable.

Whole Life Policy

Whole Life Insurance Variants:

• Limited Payment Life Policy

in the world of life insurance.

Endowment Policy Variants:

Double Endowment Plan

Anticipated Endowment Policy

• In case of death, the full sum assured is payable to the insured.

• The premium is payable for a particular period of time.

Annuities And Pension

The First Step…

The Growing Years...

A brief history of the Insurance sector

Insurance Sector Reforms

• Government stake in the insurance Companies to be brought down to 50%.

• All the insurance companies should be given greater freedom to operate.

• Postal Life Insurance should be allowed to operate in the rural market.

iii) Regulatory Body

• The Insurance Act should be changed

• An Insurance Regulatory body should be set up

• Mandatory Investments of LIC Life Fund in government securities to be reduced from

• LIC should pay interest on delays in payments beyond 30 days.

• Computerization of operations and updating of technology to be carried out in the

The Insurance Regulatory And Development Authority

What are channels of distribution?