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3. -3-
4. -4-ACKNOWLEDGEMENT
6. -6-DECLARATIONMy self Ankit dutt Student of MBA III SEM here by declared that
theProject report entitled ANALYSIS OF MARKETING SURVEY ANDCHANNEL
DEVELOPMENTICICI PRUDENTIAL LIFEINSURANCE LTD. is completed and
submitted to Prof.Parul Dutt, HODof Management (Gyan Bharti Institute of Technology,
Meerut is my original work.The imperial finding in this report is based on the data
collected by me. I have notsubmitted this project report any other University for the
purpose of complianceof any requirement of any Examination or Degree.Ankit DuttMBA
III SEM
player. The LIC has 2050 branches. It is constituted in to seven Zones. Currentlythere are
5, 60,000 LIC agents in India. General Insurance is another segment, which hasbeen
growing at a faster pace.
10. -10-Since then the insurance industry has gone through many changes. The
liberalization ofthe industry the insurance industry has never looked back and today stand
as one of themost competitive and exploring industry in India. The entry of the private
players and theincreased use of the new distribution are in the limelight today. The use of
newdistribution techniques and the IT tools has increased the scope of the industry in
thelonger run.Insurance is the business of providing protection against financial aspects
of risk, such asthose to property, life health and legal liability. It is one method of a
greater conceptknown as risk management which is the need to mange uncertainty on
account ofexposure to loss, injury, disadvantage or destruction.Insurance is the method of
spreading and transfer of risk. The fortunate many who areexposed to some or similar
risk shares loss of the unfortunate. Insurance does not protectthe assets but only
compensates the economic or financial loss.In insurance the insured makes payment
called premiums to an insurer, and in return isable to claim a payment from the insurer
if the insured suffers a defined type of loss. Thisrelationship is usually drawn up in a
formal legal contract.
11. -11-Insurance companies also earn investment profits, because they have the use of
thepremium money from the time they receive it until the time they need it to pay
claims.This money is called the float. When the investments of float are successful they
mayearn large profits, even if the insurance company pays out in claims every penny
receivedas premiums. In fact, most insurance companies pay out more money than they
receive inpremiums. The excess amount that they pay to policyholders is the cost of float.
Aninsurance company will profit if they invest the money at a greater return than their
costof float.An insurance contract or policy will set out in detail the exact circumstances
under whicha benefit payment will be made and the amount of the
premiums.Classification of insuranceThe insurance industry in India can broadly
classified in two parts. They are.1) Life insurance.2) Non-life (general) insurance.1) Life
insurance:Life insurance can be defined as life insurance provides a sum of money if the
personwho is insured dies while the policy is in effect.In 1818 British introduced to
India, with the establishment of the oriental life insurance
12. -12-company in Calcutta. The first Indian owned Life Insurance Company; the
Bombaymutual life assurance society was set up in 1870.the life insurance act, 1912 was
the firststatuary measure to regulate the life insurance business in India. In 1983, the
earlierlegislation was consolidated and amended by the insurance act, 1938,
withcomprehensive provisions for detailed effective control over insurance. The
uniongovernment had opened the insurance sector for private participation in 1999,
alsoallowing the private companies to have foreign equity up to 26%. Following the
openingup of the insurance sector, 12 private sector companies have entered the life
insurancebusiness.Benefits of life insuranceLife insurance encourages saving and forces
thrift.It is superior to a traditional savings vehicle.It helps to achieve the purpose of life
assured.It can be enchased and facilitates quick borrowing.It provides valuable tax
relief.Thus insurance is found to be very useful in the lives of the person both in short
term andlong term.
involved when individuals or groups select, purchase, use, ordispose of products, services
ideas, or experiences to satisfy needs and desiresCustomer value: The ratio between the
customerss perceived benefits (economic,functional and psychological) and the
resources (momentary, time, effort, psychological)used to obtain those benefits.
22. -22-SAMPLING PLAN:It is very difficult to collect information from every member
of a population .Astime and costs are the major limitation that the researcher faces.A
sample of 100 was taken the sample size of 100 individuals were selected onthe basis of
convenient sampling technique. The individuals were selected in therandom manner to
form sample and data were collected from them for theresearch study.ANALYSIS AND
INTERPRETATION:Data collection through questionnaire and personnel interview
resulted inavailability of the desired information but these were useless until there
wereanalyzed. Various steps required for this purpose were editing, coding andtabulating.
Tabulating refers to bringing together similar data and compiling themin an accurate and
meaningful manner. The data collected by questionnaire wasanalyzed, interpreted with
the help of table, bar chart and pie chart.
23. -23-1. INDUSTRY PROFILE1.1 Insurance in IndiaThe insurance sector in India has
come a full circle from being an open competitivemarket to nationalization and back to a
liberalized market again. Tracing thedevelopments in the Indian insurance sector reveals
the 360 degree turn witnessed over aperiod of almost two centuries.1.2 A Brief history of
the Insurance SectorThe business of life insurance in India in its existing form started in
India in the year1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.Some of the important milestones in the life insurance in India are;1912: The
Indian Life AssuranceFor over 50 years, life insurance in India was defined and driven by
only one company-the Life Insurance Corporation of India (LIC). With the Insurance
Regulatory andDevelopment Authority (IRDA) Bill 1999 paving the way for entry of
private companiesinto both life and general sectors there was bound to be new-found
excitement- and newsuccess stories. Today, just three years since their entry, their
cumulative share has
24. -24-crossed 13% (source: IRDA), far exceeding expectations. Clearly insurance is on
agrowth path.The percentage of premium income to GDP which was just 2.3% in 200001 rose to 3.3%in 2002-03; and life insurance has emerged as the dominant contributor to
this growth.The industry presented a huge opportunity. Life insurance penetration, for
instance, wasat an abysmal 22% of the insurable population. However, private players
have had to riseto many challenges. They were faced with attitudinal barriers towards the
category andthe perception that insurance was only a tax saving tool. Insurance per se
had lost it basicrationale: protection. It wasnt surprising then that its potential lay frozen
and unexploited.The challenge for private insurance players was to change the
established category driverand get customers to evaluate life insurance as an investmentcum-protection tool.
they were treated as substandard lives and extrapremium was charged. Third, there were
gross irregularities in the functioning of Lifeinsurance was nationalized in the year 1956,
and then general insurance was
28. -28-nationalized in the year 1972. In 1999, the private insurance companies were
allowedback again into insurance sector with maximum cap of 26 percent foreign
holding.1818 The British introduce to India, with the establishment of the Oriental
LifeInsurance company in Calcutta.1850 Non life insurance debuts, with Triton Insurance
Company.1870 Bombay Mutual life Assurance Society is the first Indian-owned life
insurer1907 Indian mercantile Insurance is the first Indian non-life insurer.1912 The
Indian life assurance companies act enacted to regulate the lifeinsurance business.1938
The insurance act, which forms the basis for most current insurance laws,replaces earlier
act.1956 Life insurance nationalized, government takes over 245 Indian and
foreigninsurers and provident societies.1956 Government sets up LIC1972 Non life
insurance nationalized, GIC set up.1993 Malhotra committee, headed by former RBI
governor R.N.Malhotra, set upto draw up a blue print for insurance sector reforms.1994
Malhotra Committee recommends re-entry of private players, autonomy otPSU
insurers.1997 Insurance regulator IRDA (Insurance Regulatory and
DevelopmentAuthority) set up.2000 IRDA starts giving licensed to private insurers
29. -29-2001 ICICI Prudential Life Insurance came into the market to sell a policy.2002
Banks were allowed to sell insurance plans, as TPAs enter the scene,insurers start settling
non-life claims in the cashless mode.1.4 The Insurance Regulatory and Development
Authority (IRDA):Reforms in the Insurance sector were initiated with the passage of the
IRDA Bill inParliament in December 1999. The IRDA since its incorporation as a
statutory body inApril 2000 has fastidiously stuck to its schedule of framing regulations
and registeringthe private sector insurance companies.The other decisions taken
simultaneously to provide the supporting systems to theinsurance sector and in particular
the life insurance companies were the launch of theIRDAs online service for issue and
renewal of licenses to agents.The approval of institutions for imparting training to agents
has also ensured that theinsurance companies would have a trained workforce of
insurance agents in place to selltheir 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 ofglobally compatible regulations. In the private sector 12 life insurance and 6
generalinsurance companies have been registered.
30. -30-With the demographic changes and changing life styles, the demand for insurance
coverhas also evolved taking into consideration the needs of prospective policyholder
forpackaged products. There have been innovations in the types of products developed by
theinsurers, which are relevant to the people of different age groups, and suit
theirrequirements. Continued innovations in product development has resulted in a wide
rangeof flexible products to meet the requirements for cover at different stages of life
-today avariety of products are available ranging from traditional to Unit linked
providingprotection towards child, endowment, capital guarantee, pension and group
solutions. Anumber of new products have been introduced in the life segment with
guaranteed additions,which were subsequently withdrawn/toned down; single premium
mode has beenpopularized; unit linked products; and add-on/riders including accidental
death;dismemberment, critical illness, fixed term assurance risk cover, group hospital
andsurgical treatment, hospital cash benefits, etc. Comprehensive packaged products
havebeen popularized with features of endowment, money back, whole life, single
premium,regular premium, rebate in premium for higher sum assured, premium mode
rebate, etc.,together with riders to the base products.1.5 Historical PerspectivePrior to
1956 -242 companies operating1956 -Nationalization- LIC monopoly player
-Government control2001 -Opened up sector
32. Traditional style product offering : Endowment and money back-32- Pensions:
Small part of Inadequate and inflexible productsplans Limited focus on customer
needs1.8 Improving Serviceproduct offer StandardsPre Deregulation Limited
DistributionPost Deregulation Service through DistributionChannel Access Service
Points Use of ITAdvisors BranchNetworkLimited use of ITMulti Channel Access
Multiple ServicePointsUse of IT
33. -33-2. COMPANY PROFILEICICI Prudential Life Insurance Company Limited (the
Company) ajoint venture between ICICI Bank Limited and Prudential plc of UK
wasincorporated on July 20, 2000 as a company under the Companies Act, 1956 (the
Act).The Company is licensed by the Insurance Regulatory and Development
Authority(IRDA) for carrying life insurance business in India.ICICI Prudential Life
Insurance Company is a joint venture between ICICIBank, a premier financial
powerhouse and prudential plc, a leading internationalfinancial services group
headquartered in the United Kingdom (UK). The companybrings together the local
market expertise and financial strength of ICICI Bank andPrudentials International life
insurance experience. The company was granted aAdvisorsBrokers &Corporate
agentsBancassuranceCall CentersEmailWebsiteBranchNetworkShorter timearound
timeClaimsPolicy Issuance
34. -34-certificate of Registration by the IRDA on November 24, 2000 and eighteen days
later,issued its first policy on December 12. ICICI Prudential was amongst the first
privatesector insurance companies to begin operations in December 2000 after
receivingapproval from Insurance Regulatory Development Authority (IRDA).From its
early days, ICICI Prudential seemed to have the wherewithal for a large-scalebusiness.
By March 31, 2002, a little over a year since its launch, the company had issued100,000
policies translating into premium income of approximately Rs. 1,200 million ona sum
assured of over Rs.23 billion. When the company began its operations, the needwas to
build a brand that was relatable to, symbolized trust and was easily recognized
andunderstood. It launched a corporate campaign ICICI Prudential also made using
thetheme of Sindoor to epitomize protection, trust, togetherness and all that is
Indian;endearing itself to the masses. The success of the campaign, the calling card of
thecompany saw the brand awareness scores almost at par with its 40 year old
competitor.The theme of protection was also extended to subsequent product and
category specificcampaigns from child plans to retirement solutions which highlight
how the companywill be with its customers at every step of life.From day one, the
company has unflinchingly focused on being mass-market player,developing products,
creating a distribution network and deploying resources that wouldfurther its goal. Apart
from ramping up thoroughly training its advisors, the company hastwelve
Bancasurance partners the largest in the country. It swiftly revised and added toits
initial range of products, pioneering market-linked products and pension plans, to offer
35. -35-customers the most flexible life insurance policies in the country. In February
2004,ICICI Prudential increased its capital base by Rs. 500 million, its ninth capital
hike,bringing the total paid up equity capital to Rs. 6,750 million. With the authorized
capitalof the company standing at Rs. 12 billion, ICICI Prudential continues to have the
highestcapital base amongst all life insurers in the country. The challenge ICICI
Prudential nowfaces is to retain its top-notch position and continue to deliver the finest
life insuranceand pension solutions to its ever-growing customer base.ICICI Prudentials
equity base stands at Rs. 1185 crore with ICICI Bank and Prudentialplc holding 74% and
26% stake respectively. For the year ended March 31, 2006, thecompany garnered Rs.2,
412 crore of weighted new business premium and wrote 837,963policies. The sum
assured in force stands at Rs.45, 888 crore. The company has anetwork of over 72,000
advisors; as well as 9 bancasurance partners and over 200corporate agent and broker tieups.ICICI Prudential is also the only private life insurer in India to receive a National
InsurerFinancial Strength rating of AAA (Ind) from Fitch ratings. The AAA rating is the
highestcredit rating, and is a clear assurance of ICICI Prudentials ability to meet its
obligationsto customers at the time of maturity or claims.
36. -36-For the past five years, ICICI Prudential has retained its position as the No.1
privateinsurer in the country, with a wide range of flexible products that meet the needs
of theIndian customer at every step in life.Beginning operations in December 2000, ICICI
Prudentials success has been meteoric,becoming the number one private life insurer
within months of launch. Today, it has oneof the largest distribution networks amongst
private life insurers in India, with branchesin 54 cities. The total number of policies
issued stands at more than 780,000 with a totalsum assured in excess of Rs.160
billion.ICICI Prudential closed the financial year ended march 31, 2004 with a total
receivedpremium income of Rs. 9.9 billion; up 135% last years total premium income of
Rs.4.20billion. New business premium income shows a 106% growth at Rs. 7.5 billion,
drivenmainly by the companys range of unique unit-linked policies and pension plans.
Thecompanys retail market share amongst private companies stood at 36%, making it
clearleader in the segment. To add to its achievements, in the year 2003/04 it was
adjudgedMost Trusted Private Life Insurer (Economic Times Most Trusted Brand
37. -37-ICICI Prudentials success is rooted in its philosophy to always offer the
customer achoice. This has been the driving force behind its multi-channel distribution
strategy,which includes advisors, banks, direct marketing and corporate agents. In fact,
ICICIPrudential was the first life insurer to invest in multiple channels and offer the
customerchoice and access; thus reducing dependency on any one channel, great strides
in theretirement solutions and pensions market.The Companys penetration of the
retirement market was driven by the focused approachtowards creating awareness
through sustained campaign; Retire from work, not life.Within six months, the
campaign rewarded ICICI Prudential with an increased share of23% of the total pensions
market and 78% amongst private players. ICICI Prudential hasone of the largest
distribution networks amongst private life insurers in India, havingcommenced operations
in 132 cities and towns in India, stretching from Bhuj in the westto Guwahati in the east,
and Jammu in the north to Trivandrum in the south.The company has 9 bank partnerships
for distribution, having agreements with ICICIBank, Bank of India, Federal Bank, South
Indian Bank, Lord Krishna Bank, and someco-operative banks, as well as over 200
corporate agents and brokers, it has also tied upwith NGOs, MFIs and corporates for the
distribution of rural policies. ICICI Prudentialhas recruited and trained more than 72,000
insurance advisors to interface with andadvise customers. Further, it leverages its stateof-the-art IT infrastructure to providesuperior quality of service to customers.
39. -39-About the PromotersICICI Bank (NYSE:IBN) is Indias second largest bank with
an asset base ofRs.2513.89 billion as on March 31, 2006. ICICI Bank provides a broad
spectrum offinancial services to individuals and companies. This includes mortgages, car
andpersonal loans, credit and debit cards, corporate and agricultural finance. The
Bankservices a growing a customer base of more than 17 million customers through a
multichannel access network which includes over 620 branches and extension counters,
2200ATMs, call centers and internet banking (www.icicibank.com)PRUDENTIAL plc,
Established in London in 1848, through its business in the UKand Europe, the US and
Asia, provides retail financial services products and services tomore than 16 million
customers, policy holder and unit holders world wide. As ofDecember 31, 2005, the
company had over US$ 400 billion in funds under management.Prudential has brought to
market an integrated range of financial services products thatnow includes life assurance,
pensions, mutual funds, banking, investment managementand general insurance. In Asia,
Prudential is the leading European life insurance companywith a vast network of 23 life
and mutual fund operations in twelve countries China,Hong Kong, India, Indonesia,
Japan, Korea, Malaysia, the Philippines, Singapore,Taiwan, Thailand and
Vietnam.AchievementsBeginning operations in December 2000, ICICI Prudentials
success has beenmeteoric, becoming the number one private life insurer within months of
launch. Today,
40. -40-it has one of the largest distribution networks amongst private life insurers in
India, withbranches in 54 cities. The total number of policies issued stands at more than
780,000with a total sum assured in excess of Rs.160 billion.ICICI Prudential closed the
financial year ended march 31, 2004 with a total receivedpremium income of Rs. 9.9
billion; up 135% last years total premium income of Rs.4.20billion. New business
premium income shows a 106% growth at Rs. 7.5 billion, drivenmainly by the
companys range of unique unit-linked policies and pension plans. Thecompanys retail
market share amongst private companies stood at 36%, making it clearleader in the
segment. To add to its achievements, in the year 2003/04 it was adjudgedMost Trusted
Private Life Insurer (Economic Times Most Trusted Brand Survey byACNeilsen ORGMARG). It was also conferred the Outlook Money-Best Life Insureraward for the
second year running. The company is also proud to have won Silver atEFFIES 2003 for
its Retire from work, not life campaign. Notably, ICICI Prudentialwas also short-listed
to the final round for its Sindoor campaign in EFFIES 2002.
41. -41-In Keeping with its belief that a happy customer is the best endorsement,
ICICIPrudential has embraced the SIX SIGMA approach to quality, an exercise that
beginsand ends with the customer from capturing his voice to measuring and responding
to hisexperiences. This initiative is currently helping the company improve
processes,turnaround times and customer satisfaction levels. Another Novel introduction
is theICICI Prudential Lifestyle Rewards Club, Indias first rewards programme for
LifeAdvisors; it allows ICICI Prudential Advisors to redeem points for items ranging
fromkitchenware to gold, white goods, and even international holidays.
42. -42-PromotionICICI Prudential is a case study in how advertising and marketing can
play a vital role inre-shaping an industry. It has demonstrated how an industry where the
customer wasnothing more than a policy number has changed to one where customer
preference rulesthe roost.Brand-building in a complex category like life insurance is an
uphill and multi-facetedtask. At the time of launching operations, the communications
task was to buildcredibility, so as to give the customer the confidence that it was a
company that could betrusted to invest funds with. The aim was to encourage people to
view insurance not as acompulsory tax saving instrument, but as a means to lead a worryfree, secure life and inthe process, create the differentiator for brand ICICI Prudential.The
brand proposition for all the campaigns was reflected in the line: Suraksha: Zindagike
har kadam par. The campaign featured a significant competitive advantage, the
soundfinancial backing and credentials of ICICI Prudential, and showcased products
fromdifferent segments. The advertising idea was encapsulated in the symbol of
protection the Sindoor. This campaign contributed extensively to raising brand
awareness andcreating a distinctive identity for the company.
43. -43-The Company recently tied up with the Forbes Six Sigma rated Dabbawalla
organizationin Mumbai for a direct marketing exercise. In a Unique effort to create
awareness about atax saving product, the company attached a creative of a bitten apple to
Mumbaisubiquitous lunchboxes. It worked wonderfully with Mumbais office-goers
and one thattranslated into substantial business for the company.Brand ValuesMarket
Research reveals that the values people associate with ICICI Prudential are,indeed, those
that the company hopes to project: lifelong protection and value for money.The core
value is protecting your loved ones, throughout lifes ups and downs. It is apowerful
proposition; one, which ICICI Prudential, is taking into the market place.
whole. Thisteam works as an in house R&D Solution Group, exploring new technological
initiatives
46. -46-and also caters to information needs of corporate functions in the organization.
ITInfrastructure group is responsible for providing hardware, software, network services
tothe whole organization. This group runs the Digital Nervous System of the Enterprise
atthe highest levels of efficiency and provide robust, scalable and highly available
platformfor deployment of business application.MarketingThe Marketing function at
ICICI Pru covers an array of activities - brand and mediamanagement, channel support,
direct marketing and corporate communications. TheBrand and Communications team is
in charge of advertising, consumer research, mediaplanning & buying and Public
Relations; that helps develop and nurture ICICIPrudentials corporate identity while
effectively communicating its varied productofferings to the customer. Channel
marketing provides support to the sales force bystreamlining the design and development
of collaterals and sales tools across distributionchannels. The Direct marketing team was
set up to generate high quality leads forprofitable business. The team achieves this
through target database acquisition andcommunicating customized product information
through e-mailers, telemarketing andinnovative direct mailers.
channels. In other words,Bancassurance is a service which can fulfill both banking and
insurance needs at thesame time.Banc assurance as a concept first began in India with the
opening up of the insuranceindustry to private sector participation in December 1999
which saw the entry of 20 newplayers - with 12 in the life insurance sector and 8 in the
non-life sector. Bancassurancehas also seen significant rise in other Asian markets. For
example, Bancassuranceaccounted for 24% of new life insurance sales by weighted
premium income inSingapore in 2002. This is a significant increase on the equivalent
2001 statistic of 15%and is as a result of growth in significant bank-centric Banc
assurance operations.
49. -49-Although the concept of Bancassurance looks simple enough, it is far from that in
reallife practice. Legislative differences, consumer behavior, impact of history and
culture,product complexity, employee work culture and many such other factors have
contributedto significant differences in results across countries. For example, in France
and Spain 60%to 80% of life insurance products are sold through bank branches
compared to 10% inUK and USA.Bancassurance ModelsGlobally we have 4 kinds of
Bancassurance business models:Distribution alliance between the insurance company and
the bankJV between the twoMerger between bank and insurerBank builds or buys own
insurance productsMost of the Bancassurance operations in India fall into the first model,
which in a way isquite a prudent decision. The Indian Bancassurance scene as of now
looks as promisingas perilous, being a vast, unexplored and uncharted expanse. As banks
are quite riskaverse, it is but natural for them to withhold from making any long term
commitment,which would be quite costly if the Bancassurance business runs into trouble.
In terms ofthe present regulatory framework, one bank can tie-up with only one life and
one non-lifeinsurer, while insurers have the choice to tie-up with any number of banks.
We also have
50. -50-examples of joint ventures between the bank and insurer such as SBI Life and
ICICIPrudential.Stages in Policy Issuance1) ProposalA Proposal Stage is the First stage
before the policy is issued at COPS. At this stage, theapplication form is received by
COPS, but it is pending for issuance due to furtherclarifications required from the
customer.2) LoginA proposal which is complete i.e., duly filled with all necessary
documents attached to it& accepted by the Branch ops, is called a Login3) RejectAn
Application gets rejected at the Branch Ops level due to necessary details not filled inthe
form or necessary documents not submitted is a Reject. It is then sent back to theAdvisor
for completion.
51. -51-4) IssuanceIssuance means a policy that is issued to the Customer by Central
Ops.5) Decline StatusWhen a customer refuses to take a policy post login but before
Issuance is called aDecline6) CancellationWhen the cheque given by the customer
bounces, it amounts to cancellation of the policy.7) LapseA policy for which the
Customer fails to pay subsequent premiums is a Lapsed Policy.8) FreelookPost issuance
of the policy, the policyholder has the option to turn down the policy within15 days from
the date of issuance. This period of 15 days is called Freelook Period.9) Surrender: When
a customer wants to discontinue with the policy.
52. -52-The joint strengthsA powerful joint venture partnership with each carrying a set
of strengthscomplementing each
othersReputationInsuranceexpertiseProductDistributionOperationsBrand
strengthInfrastructureCustomer baseLocal knowledgeMarket
InnovatorsPRUDENTIALICICI
55. -55-
58. -58-ICICI Prudentials life insurance products may be loosely categorized under three
forms:pure life insurance products without an investment angle to them; a product that is
a mixof a cumulative investment scheme and an insurance product; and, finally,
standardproducts such as money-back and endowment policies.Single Premium Bond:
The Single Premium Bond is the name of a policythat combines the features of an
investment in a cumulative deposit scheme with that ofan insurance product.Policyholders are required to pay a one-time premium based on a target sum assured.
Atmaturity, the policy-holder gets the sum assured and guaranteed additions that work
outto a compound return of 4.5 per cent the sum assured.The insurance part of the
package comes in the form of death benefits that are paid in thecase of the demise of the
policy-holder. The size of the death benefit is linked to thenumber of years left for the
policy to expire. On maturity date, the maturity value is alsopaid in addition to the death
benefits that would have been paid earlier.Life Guard policies: The company offers two
pure life insurance products that havean umbrella name, Life Guard. One of them
involves a one-time premium for which there
59. -59-are no maturity benefits. The other requires regular premium payments that are
returnedat the end of the policy. Life Guard offers absolutely no investment-related return
and issuitable for individuals looking for an unadulterated insurance package.Insurance
Solutions for IndividualsICICI Prudential Life Insurance offers a range of innovative,
customer-centric productsthat meet the needs of customers at every life stage. Its products
can be enhanced with upto 5 riders, to create a customized solution for each
policyholder.Savings SolutionsSecure Plus is a transparent and feature-packed savings
plan that offers 3 levelsof protection.Cash Plus is a transparent, feature-packed savings
plan that offers 3 levels ofprotection as well as liquidity options.Save n Protect is a
traditional endowment savings plan that offers lifeprotection along with adequate returns
61. -61-Premier Life is a limited premium paying plan that offers customers lifeinsurance
cover till age of 75.InvestShield Life is a Unit Linked plan that provides capital guarantee
on theinvested premiums and declared bonus interest.InvestShield Cash is a Unit Linked
plan that provides capital guarantee on theinvested premiums and declares bonus interest
along with flexible liquidityoptions.InvestShield Gold is a Unit Linked plan that provides
capital guarantee on theinvested premiums and declares bonus interest along with limited
premiumpayment terms.
62. -62-Protection SolutionsLifeGuard is a protection plan, which offers life cover at very
low cost. It isavailable in 3 options level term assurance with return of premium and
singlepremium.HomeAssure is a mortgage reducing term assurance plan designed
specificallyto help customers cover their home loans in a simple and cost-effective
manner.Child PlansSmartKid education plans provide guaranteed educational benefits to
a childalong with life insurance cover for the parent who purchases the policy. Thepolicy
is designed to provide money at important milestones in the childs life.SmartKid plans
are also available in unit-linked form both single premium andregular premium.
64. -64-Health SolutionsHealth Assure and Health Assure Plus: Health Assure is a
regularpremium plan which provides long term cover against 6 critical illnesses
byproviding policy holder with financial assistance, irrespective of the actualmedical
expenses. Health Assure Plus offers the added advantage of anequivalent life insurance
coverCancer Care: is a regular premium plan that pays cash benefit on thediagnosis as
well as at different stages in the treatment of various cancerconditions.Group Insurance
SolutionsICICI Prudential also offers Group Insurance Solutions for companies seeking
toenhance benefits to their employees.ICICI Pru Group Gratuity Plan: ICICI Prus group
gratuity plan helpsemployers fund their statutory gratuity obligation in a scientific
manner. The plan canalso be customized to structure schemes that can provide benefits
beyond thestatutory obligations.
65. -65-ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible
definedcontribution superannuation scheme to provide a retirement kitty for each member
ofthe group. Employees have the option of choosing from various annuity options
oropting for a partial commutation of the annuity at the time of retirement.ICICI Pru
Group Term Plan: ICICI Prus flexible group term solution helpsprovide affordable cover
to members of a group. The cover could be uniform or basedon designation/rank or a
multiple of salary. The benefit under the policy is paid to thebeneficiary nominated by the
member on his/her death.Flexible Rider OptionsICICI Pru Life offers flexible riders,
which can be added to the basic policy at amarginal cost, depending on the specific needs
of the customer.1. Accident and disability benefit: If death occurs as the result of
anaccident during the term of the policy, the beneficiary receives an additionalamount
equal to the rider sum assured under the policy. If the death occurs <2. Accident Benefit:
This rider option pays the sum assured under the rideron death due to accident.
66. -66-3. Critical Illness Benefit: Protects the insured against financial loss in theevent
of 9 specified critical illnesses. Benefits are payable to the insured formedical expenses
prior to death4. Income Benefit: This rider pays the 10% of the sum assured to
thenominee every year, till maturity, in the event of the death of the life assured.It is
available in SmartKid, SecurePlus, and CashPlus.5. Waiver of Premium: In case of total
and permanent disability due to anaccident, the premiums are waived till maturity. This
rider is available withSecurePlus and CashPlus.DATA ANALYSIS AND
INTERPRETATION1. Age of the respondentsPARTICTULARS NO.OF.RESPONDENT
PERCENTAGELess than 25 11 11%25 - 35 40 40%35 - 45 20 20%Above 45 29
29%TOTAL 100 100
the respondents say tax savings.c) 4% of the respondents say good returns.d) 3% of the
respondents say financial security.e) 80% of the respondents say all of the above.
78. -78-]ANALYSIS:From the survey it was found that amongst 100 respondentsa) 83%
of the respondents say that they are aware of ICICIPrudential life insurance co.b) 17% of
the say that they are unaware of ICICI Prudential lifeinsurance
co020406080100NO.OF.RESPONDENTAwareness of ICICI PruYes No TOTAL
81. -81-9) % of respondents who are under different plans of ICICI Prudential
lifeinsurance co.PARTICULARS NO.OF.RESPONDENT PERCENTAGEInvest gain
plan 41 41%Unit gain plan 36 36%Child gain plan 8 8%Whole life plan 15 15%Pension
plan No NoTOTAL 100 100%
85. -85-
91. -91-Almost every age group says that Security of money is the prime concern.
Itshows that company should try to convey the security feature more strongly.TRENDS
92. -92-iii. As the income group changes, the awareness level of people about
insuranceincreases. There is an upward trend in this.iv. People use to take insurance as
investment with the change in income group.v. It means people belonging to high income
group have more interest in ULIP.Related to Occupation:i. Private and self-employed
persons have higher number of policies. Thepersons who have private jobs have more
income comparing to governmentemployees. If somehow we could know the type of
policy a person already haveand then offering him some product which he do not have.ii.
People having government jobs are more aware of Insurance terms andconditions. It
shows the nature of buyer as government service people havelimited and fixed income so
they plan their investment more analytically. So theyfollow Central route to
persuasion.iii. AS MOST OF THE PERSONS BELONGING TO PRIVATE ARE 1928AGE GROUP, SO WE CAN ALSO SAY THAT WE SHOULD OFFERULIP
PRODUCTS TO THEM.iv. The persons belonging to Government job category take
policies primarilyfrom LIC. The trend shows that private and self-employed people are
more likelyto buy from Private companies.After working on this project I got a clear
picture of the life insurance industry. Apartfrom this I got to know about ICICI
Prudential. very closely. The market share is around1.1% and they have a target of 3% in
the coming year.
93. -93-With the fact that the Indian economy zooming ahead at a breath-taking GDP
growthrate of 8%, and expected to assume the primary dominance in the global
economyalong with China by 2025, according to a Goldman Sachs forecast. Considering
thistremendous potential stuffed in the Indian economy, and coupled with the fact thatjust
20% of the total Indian population is insured, which basically amounts to justabout 220
million Indians (assuming the Indian population is 1.1 billion at present).Therefore there
is a huge scope for growth in the insurance business in India.With the purchasing power
of the Indians masses shooting upwards, there isnothing but a clear yes to the question
of whether the insurance biggies can makeit a time worthwhile in the Indian subcontinent.From my entire findings I found out that people are not completely aware about
ICICIPrudential. As it is primarily a new company so people dont have much faith in
thiscompany. The company should try to reach the untapped rural market and semiurbanfor higher growth. We also know that LIC is no longer the only choice for
thecustomers but due to its brand equity it is still doing its business. A lot of value
addedservices is needed to be provided to have a growth.
94. -94-FINDINGSOn an analysis and evaluation of the data collected from the
respondents thefollowing findings were found.Before establishment of private concerns
the share of LIC was 22% hence there isa wide scope for private concerns to enter in to
market.Total 100 respondents have been approached out of which 75 are the
potentialrespondents who have shown interest for investment and finance planAbove
20% of respondents are shown interest for investment and financial planAbout 33.33% of
respondents are not interest to give their personal records.About 12.67% of respondents
have already been covered by other insurancecompanies.About 10% of respondents have
given invalid records.About 10% of respondents are newly employed or trainees.About
10% of respondents interested for investment plan after knowing ICICIPRUDENTIAL
LIFE INSURANCE products.
96. -96-Improve customer services.In order to take the advantage of being industry leader
in private sector, ICICIPrudential has to improve its customer services. According to my
experience inthe company, a good number of customers forget to pay their premium at
time soit causes a big loss to the company. ICICI Prudential has already collaboratedwith
the ICICI bank for its Bancassurance facility and then can include anotherfeature in it.
ICICI bank can offer a bank account with the life insurance policy inwhich an ATM card
will be provided. This card will have all the informationregarding the policy as like future
premium payment dates, payment made, moneyvalue of the policy at that date, value of
the unit linked plan and all otherinformation what the customer want. This will help the
customer to pay premiumon time and save their losses. This will be mutually helpful for
both sistercompanies, ICICI bank will get new account and ICICI prudential will be able
tomore efficient services to their customers.
97. -97-Bring some unit linked life insurance plans in the market.Being a market leader
doesnt ensure the leadership in the future. Since afterincrement in FDI from 26% to
49% all player will have the opportunity to capturethe market share. So in order to
maintain its position ICICI Prudential should-Introduce some new market linked
insurance plan, which will give a competitiveadvantage to the ICICI Prudential against its
competitors.Trained the financial advisors more efficiently.In the changed scenario, more
efficient training will be needed, so ICICIPrudential should provide good and efficient
training to their financial advisors.Because they are the one who interact directly with the
customers. So goodtraining will give them the right way to deal with the potential
customers.
99. -99-5. Occupationa. Business c. Job holderb. Professional d. Other6. What is your
average annual income?a. Up to 1 lakhb. 1 lakh to 3 lakhsc. 3 lakhs to 5 lakhsd. 5 lakhs
and more7. Your family sizea. Below 5 membersb. 5 10 membersc. Above 10
members7. According to you life insurance is,a. A tax saving planb. A saving scheme
with good returnc. A financial security for the familyd. Risk coveragee. All the above
100. -100-8. Have you taken any life insurance product of ICICI Prudential Life
insurance?YES NOIf yes9. Which are in these?a. Unit gain planb. Invest gain planc.
Whole life pland. Children plane. Pension planf. Others __________________10. Are
you aware of the benefits in your Additional benefits Sum assuredpolicy?Yes NoIf
yes what are they? Risk coverageMaturity date
102. -102-Thank you for sparing your valuable timeToll Free Help Line Namber
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