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A
PROJECTREPORTON
Risk Management regarding working of a broking firm, and its investors
FOR
ICICIPRUDENTIALLIFEINSURANCE
Submitted to
PUNJAB TECHNICAL UNIVERSITY
JALANDHAR
In partial fulfillment of the requirement for the

Award of degree of
Master of Business Administration (MBA)
SUBMITTED TO:Miss Anu Mahlotra

Lecturer of Finance
SUBMITTED BY:Sandeep kaur

Roll. No.-(1436910)
SATYAM INSTITUTE OF MANAGEMENT&TECHNOLOGY

NAKODAR
SESSION (2014-2016)
ACKNOWLEDGMENT
Itsagreatprivilegethat Ihavedonemyprojectinsuchawellorganizedand
diversifiedorganization.Iamgreatfulltoallthosewhohelpedandsupportedme
incompletingtheproject.
FirstofallIwouldsincerelyliketothankMr.RohitRakibe(BranchManager,
Nasik),forhisvaluableguidanceandkindcooperationduringtheproject.Iam
highlygratefultoMr.DhirendraKapadi(AssociatesofHDFCSEC)forthehelp
providedbytheminvariousforms.
IamalsothankfultoourdirectorDr.SharadJoshiandmyprojectguideProf.
MaheshHalaleforhelpingmeincompletingtheproject.
Lastbutnotleast,Iamalsothankfultoallcollegestaffandmyfriendsforhelping
medirectlyorindirectlyinmyproject.
CONTENTS
Sr.No.
Topic
PageNo.
Executivesummary
CompanyProfile
Theoroticalbackground
ObjectiveofProject
12
221
4050
5151
ResearchMethodology
5256
DataAnalysis&Interpretation
5764
Findings
Suggestion&Recommendation
Conclusion
10
Bibliography
6565
6666
6768
6969
EXECUTIVESUMMARY
Theoreticalknowledgegainedbyastudentthroughclassroomstudyisincomplete,
ifnotsubjecttopracticalexposureofrealcorporateworldandthechallengesand
problemsthatonehastofaceattheactualworkplace.Inthatcontextthestudyhas
beentakentobeawareoftherealbusinessworld.
Thisprojecthasbeenundertakentostudythedistributionchannelwithrespectto
recruitment of Advisor in ICICI Prudential Life Insurance Company Limited.
Insurance policies are sold by retail agent and through banks selling policies
throughretailarecalledtideagenciesandthroughbanksiscalledbankassurance
.
Forthesameweusedtotaptheadvisorofotherinsurancesectorandagentof
Postaldepartmentandfinancialconsultants.Wealsomotivatedmutualadvisorto
joinICICIPrudentialasanadvisor.Wecollectalldataregardingthisonlyandthan
givethemacallforfixingappointment.OnceappointmentwasfixedIusedtogo
oncallwiththemanager.Thepurposeofmeetingwastomakethemawareof
insuranceagentasacareerandatthesametimetoinfluencethemtojoinasan
agent.BesidethiswealsogotopportunitytomotivetheExistingadvisorandfind
solutiontotheproblemthattheoftenfacedoncall.Thetargetrespondedwere
selectedfromdifferentsourceslikeHousewives,Ownerofbeautyparlor,gym
owners, agent of other insurance company, Travel agent real estate agent
,consultancy agency, chartered Accountant, Advocate, small business man,
developer and contractor. The recruitment activity was done in Pune. The
competitorswereTataAig,Avivalifeinsurance,Metlife,MaxNewYork,HDFC
4
www.final-yearproject.com | www.finalyearthesis.com
standardlife,BajajAlliance,Kotakmahindra,LICetc.Whichalmostprovide
similarproductstothecustomers?
Thefindingoftheprojectweremajorityofthepeopleknewabouttheinsurance
Agentandfewoftheminterestinginmakingcareerininsurancesector.Andothers
buypolicies.
INTRODUCTION
5
Indiaisthelargestdemocracyintheworldhavingapopulationmorethanone
billion.Itis5thlargestintheworldintermsofpurchasingpowerparity(PPP).
IndiaGDPgrowthrateisover6percentperyearonaverageforthelastdecadeand
savingrateisaround26percentofGDP
LifeInsuranceCorporationofIndiawasformedinSeptember1956bypassingLlC
Act, 1956 in Indian parliament The first general insurance company, Triton
InsuranceCompanyLtd.wasestablishedinCalcuttain1850.In1957theGeneral
Insurance Council a wing of Insurance Association of India formed a code of
conduct.In1961aninsuranceactwaspassedtoformGeneralInsuranceCompany
Ltd.whichwasamendedin1968.GeneralInsurancebusinesswasnationalized
witheffectfrom1.1.73bytheGeneralInsuranceBusinessAct.From1973,The
General Insurance Company (GIC) as a holding company divided in four
subsidiaries as: National Insurance Company Ltd., The New India Assurance
CompanyLtd.,TheOrientalInsuranceCompanyLtd.andTheUnitedAssurance
CompanyLtd.
WHATISLIFEINSURANCE?
6
Allassetshaveeconomicvalue.Theassetwouldhavebeencreatedthroughthe
effortsoftheowner,intheexpectationthat,eitherthroughtheincomegenerated
therefromorsomeotheroutput,someofhisneedswouldbemet.Inthecaseofa
motorcar,itprovidescomfort&convenienceintransportation.Thereisnodirect
income.Thereisanormallyexpectedlifetimefortheassetsduringwhichtimeit
isexpectedlifetimefortheassetsduringwhichtimeitisexpectedtoperform.The
owner,awareofthis,cansomanagehisaffairsthatbytheendofthatlifetime,a
substituteismadeavailabletoensurethatthevalueorincomeisnotlost.
How ever if the asset gets lost earlier, being destroyed or madenon
functional,through an accident or other unfortunate event, the owner & those
derivingbenefitstherefromsuffer.
HenceInsuranceisatoolwhichhelpstoreduceeffectsofsuchadverseevents.
HISTORYOFLIFEINSURANCE
7
Theoriginandpracticeofinsuranceisasancientashumancivilization.
FromCaveagetilldate,thestoryofevolutionofmankindisinfactasagaof
continuoussearchforsecurity.Hisproblemshavebeenthesame,thoughtheform
haschangedwiththesocial&economiccircumstances.
Whenmanusedtoliveinthecaves,heusedtosearchforsecurityagainstanimals
becausetheycouldkillhimwhilehewasasleep.Hewasnotatallsureifhecould
hunteveryday&gethisfood.Becauseoftheaboveinsecurityheusedtolivein
groupssothattheothermembersofthetribecouldcometohelpintimeofcrisis.
Lateron,insurancewaspracticedinadifferentform.Smallcontributionoffood
grainswerecollectedfromfarmers,hoardedinthelocaltemplepremisestobe
releasedwhentherewasafamineorotherscalamities.Today,insuranceworkson
the same principle. But, with growing financial implication the process started
demandingmoneyratherthancommunitycontribution.Themodernconceptof
insurance cametoIndiawiththearrivalof Europeans. Thefirst lifeinsurance
companywasestablishedinIndiain1818asorientallifeinsurancecompanyby
EuropeansforthewelfareofwidowsofEuropeans.
ItwasstrangethatmanyofthecompaniesfloatedwerelookingafterEuropean
interest and even charged extra premium on Indian lives. Bombay mutual life
assurance society limited established in 1870 was the first to stop this
discrimination.Thiswastheyearinwhichthefirstinsuranceactwaspastbythe
Britishparliament.Theinsurancebusinessflourishedthereafter.
8
Bytheyear1955therewere245insurancecompaniesandprovidentsocieties,out
of which 16 were non Indian companies. A comprehensive legislation the
insuranceact1938waspassedwithaviewtoconsolidateandamendthelaws
relatingtothebusiness
ofinsurance.Itcameintoforcewitheffectfromjuly1st1939.theactwasamended
in1950.
Thebroaderobjectivesofsocialismpromptedthegovt.tonationalizetheinsurance
business, in the year 1956. the general insurance business was nationalized in
1972,
throughGICAct1972.thelifeinsurancecorporationofIndiacameintoexistence
on1st
September1956.
NEEDOFLIFEINSURANCE
9
Whatifcustomeralreadyhaslifeinsurance?
Asanindividual,fortheextentoffinancialprotectionyouneedisdifferentfrom
thatasamarriedmanwhichinturnisdifferentfromthatasaparent.Ateachlife
stage,it isnecessarytoreevaluatetheamountofprotectionandprovisionyou
requireandadjustforthesame.
Belowaresomeoftheeventsinyourlifeforwhichyoushouldreevaluateand
planyourlifeinsuranceneeds.
LifeStages
1.Marriage
2.Birthofachild
3.Schoolingofachild
4.Educationofachild
5.Marriageofachild
6.Retirement
Howmuchinsurancedocustomersneed?
Themainpurposeoflifeinsuranceistoprovideafinancialcushiontoyourloved
ones in theevent that something unfortunateshould happen to you.One must
provideenough,soastogenerateafutureincomestreamthatwilltakecareofthe
financialneedsoftheirdependents.
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Howmuchinsuranceyouneeddependsonyourannualincome,yourexpensesand
yourexistingassets.UseourInsuranceCalculatortogetaroughestimateofhow
muchyoushouldinsureyourselffor.
ConceptofHumanLifeValue
Generallyspeakingonecanestimatetheextentoflifeinsurancebycalculating
onesHumanLifeValue(HLV).Thisisthenetpresentvalueofonesfuture
earnings.Putsimply,itistheamountthatapersonsfamilywouldpermanently
lose,shouldanythingunfortunatehappentothatperson.Asathumbrule,a30year
oldshouldinsureoneselfforabout8timeshisorherannualincome.At35,thisis
about 6times. Of course, theexactamountmust beadjusted accordingtothe
numberofdependents,existinginvestmentsandoneslifestage.Forinstance,ifat
30,apersonhastwochildrenandparentstoprovidefor,theamountofinsurance
shouldalsobehigher.
Youcancalculateyour HumanLifeValuebymultiplyingyour currentannual

incomewiththenumberofyearsremainingforyourretirement.
Letsassumethatyouare30yearsoldandyouearn4,00,000perannum.Now,if
your retirement age is 55you have 25years to gobefore retirement. Soyour
HumanLifeValueis(25x4,00,000)=Rs.100,00,000(onecrorerupees).
So,yourpresentHumanLifeValueisonecrorerupees,providedyoustayhealthy.
11
Ifyoutakefactorslikeinflationandincreaseinincomeoveraperiodoftimeinto
account,yourHumanLifeValueisalotmore.
BENEFITSOFINSURANCE
Insurance is the instrument of security, saving and peace of mind. It provides

severalbenefitsbypayingasmallamountofpremiumtoaninsurancecompany
as:
Itisgratifyingtoseeinsurancemarketplayersandpractitionerscomingtogether
onanoccasionlikethistoreinforceacommonvisiontocreateaprogressiveand
dynamicinsuranceindustrywhereeachoneofushaveanimportantroletoplay.
AfternearlydecadesofintensedebateconsensusesdevelopedinIndiaforending
thepublicsectormonopolyininsuranceandopentheindustrytoprivatesector
participantssubjecttosuitableregulation.Today,tothecreditofcombinedefforts
byboththeregulatorsandindustryplayers,thebenefitsofinsurancearewidely
acknowledged,publicconfidenceintheindustryhasbeenverymuchrestoredand
theindustryonthewholeisfarmoredynamic.
Inthelasttwoyearsalone,wehavewitnessedsomefundamentalchangesinthe
landscape of the Indian insurance industry. The insurance industry has been
openedup,witharestrictionof26%onforeignownershiptoIndianinsurers.The
totalFDIinIndiaintheinsurancesectortodaystandsatRs.812.50crores.The
totalpremiumincomeof
12
theIndianinsuranceindustry,bothlifeandnonlifefortheyearending31 stmarch
2003 stands at Rs. 71376.11 crores. Out of this the share of life insurance
presmiumis78%i.eRs.55738.11croresandgeneralinsurancepremiumis22%
i.eRs.15638crores.ThisiscontrasttothepremiumlevelsofRs.34898croresin
lifeinsuranceandRs.10087.03
croresingeneralinsuranceason31 stmarch,2001.thegrowthrateoflifeinsurance
has been slightly over 26% and the general insurance 23% and the combined
growth rate stands at 25% over the last two years. The paid up equity of the
insuranceindustryisRs.3916crorestoday.
INDUSTRYPROFILE
13
LIFEINSURANCEININDIA
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.
Tracingthedevelopmentintheindianinsurancesectorrevealsthe360degreeturn
witnessedoveraperiodofalmosttwocenturies.
ABREIFHISTORYOFTHELIFEINSURANCESECTOR
ThebusinessoflifeinsuranceinIndiainitsexsistingformstartedintheyear1818
withtheestablishmentoftheOrientalLifeInsurancecompanyinCalcutta.Some
oftheimportantmilestonesinthelifeinsurancebusinessinIndiaare:
1912:TheIndianlifeassurancecompaniesactenactedasthefirststatuetoregulate
thelifeinsurancebusiness.
1928:TheIndianinsurancecompaniesactenactedtoenablethegovernmentto
collectstatisticalinformationaboutbothlifeandnonlifeinsurancebusinesses.
1938:Earlierlegislationconsolidatedandamendedtobuytheinsuranceactwith
theobjectiveofprotectingtheinterestsoftheinsuringpublic.
14
1956:245Indianandforeigninsurersandprovidentsocietiesaretakenoverbythe
centralgovernmentandnationalized.LICformedbyanactofparliament,viz.LIC
Act1956,withthecapital contributionofRs.5crorefromthegovernmentof
India.ThegeneralinsurancebusinessinIndia,ontheotherhandcantraceitsroots
totheTritoninsurancecompanyLtd.,thefirstinsurancecompanyestablishedin
theyear1850inCalcuttabythebritish.
SomeoftheimportantmilestonesinthegeneralinsurancebusinessinIndiaare:
1907:TheIndianmercantileinsuranceLtd.Setup,thefirstcompanytotransactall
classesofgeneralinsurancebusiness.
1957: General insurance council a wing of the insurance association of India,

framesacodeofconductforensuringfairconductandsoundbusinesspractices.
1968: The insurance Act amended to regulate investments and set minimum
solvencymarginsandthetariffadvisorycommitteesetup.
1972:Thegeneralinsurancebusiness(nationalization)Act,1972nationalizedthe
general
insurancebusinessinIndiawitheffectfrom1stJanuary1973.
107 insurers amalgamated and grouped into 4 companies viz. The National
InsurancecompanyLtd.,ThenewIndiaAssuranceCompanyLtd.,TheOriental
Insurance
15
CompanyLtd.AndTheUnitedIndiaInsuranceCompanyLtd.GICincorporatedas
acompany.
ReformsintheInsurancesectorwereinitiatedwiththepassageoftheIRDABillin
parliamentinDecember1999.TheIRDAsinceitsincorporationasastatutory
bodyinApril2000hasfastidiouslystucktoitsscheduleofframingregulationsand
registeringtheprivatesectorinsurancecompanies.Theotherdecisionstaken
simultaneouslytoprovidethesupportingsystemstotheinsurancesectorandin
particularthelifeinsurancecompanieswerethelaunchoftheIRDA'sonline
serviceforissueandrenewaloflicensestoagents.
Theapprovalofinstitutionsforimpartingtrainingtoagentshasalsoensuredthat
theinsurancecompanieswouldhaveatrainedworkforceofinsuranceagentsin
placetoselltheirproducts,whichareexpectedtobeintroducedbyearlynextyear.
InsurancecompaniesinIndia
Insurance is a colossal sector in India that is growing at a speedy rate of15
20%.The insurance sector is approximately 450 billion yet 70 percent of the
populationinIndiaisnotinsured.Thisgivesyouapeekintothehugegrowth
opportunitythatexistsforthissegment.TheinsurancebusinessinIndiamainly
consistsoftwomainplayers,theLifeInsuranceCorporation(LIC)andGeneral
Insurance Corporation (GIC). Almost 100 divisional offices and 2000 branch
officesarefunctionalforLIC.AsLICcaterstolifeinsurance,healthinsurance,
propertyandaccident.insuranceitneedsanincreasingnumberofemployees.Thus
insurancecompaniesinIndiaaregrowingverticallyand
16
horizontallybringinggrowthandemploymentopportunities.
The other player GIC undertakes motor, marine, personal accident and fire
insurance.Moreoverithasfoursubsidiariesa)OrientalInsurance,b)UnitedIndia
Insurance, c) New India Assurance, and d) National Insurance. Insurance
companiesinIndiahaveadeeprootedhistory.Itallbeganin1818whenOriental
LifeInsuranceCompanyinCalcuttawasestablished.Fromthenoninsurancewas
scatteredacrossthecountry.Itwasanunorganizedsector.Thenin1950,theentire
insurancesegmentwasnationalized.Afterachievingfreedom,theinsurancesector
gainedmomentum.In1956thegovernmentofIndiaconsolidated240privatelife
insurers and provident societies and this was how LIC came to life. The
justification to the nationalization of the life insurers was that the government
would reap the necessary funds that were required for industrialization. The
generalinsuranceindustrystillremainedinthehandsoftheprivatesectortill1972
andwasthennationalized.LICaddsabout7percenttothecountry'sGDP.With
IRDA'sregulationnotlessthan15percentoffundsftomtheinsurancecompanies
are said to fill the coffers of infrastructure and social sectors. Thus they are
providingvitalfundstothecountry'sgrowth.Infrastructureofthecountrybears
risksthatareofalongtermcharacter.Theyincludepoliticalinstability,geological
hindrances,gestationperiodandilliteracy.ThelongternfundsprovidedbyLife
InsuranceofIndianot onlycovertheserisksbutalsohelpsecuringabrighter
futureforthecountry.
BesidesinfrastructuretheinsurancecompaniesinIndiaarevitalforone'ssaving
purpose.Inthebeginninginsurancewaslookedatasa'taxbenefit'investment.
Slowly,howeverthemindsetofthecommonmanischanging.Lifeinsuranceis
nowlookedonas
17
investmentvehicle.Withtheintroductionofprivateplayersinthesectortherehas
beenmoretransparencyandflexibilityinthesector.Privateplayershaveprocured
almost9percentoftheinsurancesegmenteventhoughthecovetedpolicieslike
endowment and money back still lay with the government. Better services,
individualattentionandpuretransparencyhavegiventheprivatesectoranupper
hand. But with a huge unorganized market in India yet to tap the insurance
companiesinIndiahaveavoluminousmarkettoexplore.
InsuranceCompaniesinthePresentGlobalScenario
The most important aspect for any financial services institution dealing with
today'sregulatoryframeworkistheneedtobuildanintegration,risk,compliance
andregulatoryenvironment.Theglobalizationofbusiness,theproliferationof,and
dependency on, technology, and the preservation of a trusted and secure
environment to facilitate financial institutions, all require financial services
organizations to have in placed the mechanisms to ensure sound and reliable
security and privacy. The industry's landscape is continuously changing and
increasingincomplexityacrossfinancialservices,causingfirmstofaceadiverse
arrayofchallengesandconcerns.RoleofPrivatesectorhasgrownrapidlyinthe
serviceindustry,especiallywithreferencetoInsurancemanagement.
Theinsuranceindustry,asanintegralpartofthefinancialservicesindustrydoes
notstandapartfromtheprofoundchangesinthefinancialsector.Recentlyweare
witnessinganenhancedcompetitionintheinsuranceindustryprobablyduetothe
opening up of this sector to private participants. There is a closeinter
actionbetween insurance and economic growth. As economy grows, the living
standardsofpeopleincrease.Asa
18
consequence, demand for insurance increases. As the assets of people and of

business enterprises increase in the growth process, the demand for general
insurancealsoincreases.Infact,withthewideningoftheeconomy,thedemand
fornewtypesofinsuranceproductsemerges.Insurancenowextendsnotonlyto
productmarketbutalsotoserviceindustriesincludingfinance.Itisequallytrue
that growth itself is facilitated by insurance. The global consolidation of the
financialservicessectorisinlargepartdrivenbyacquisitionactivity.Companies
competingforagreatershareofconsumerfundsareseekingquickaccesstonew
markets,newproductsandnewchannelsofdistribution,bothdomesticallyand
economically.
Groundedinadeepunderstandingoftheissue,wehavetriedtodealwithtoday's
lifeinsuranceandfinancialservicesenvironmentinaverylucidmannercovering
alltheaspectssuchasproductivity,managementofprocesses,growthdrivers,and
criticalfactorsforsuccessandpolicyimplications
Indianinsurancecompaniesmaybestartedbydomesticentitiesinjointventure
with foreign entities, with the latter holding a maximum of26 per cent of the
equity.
Accordingtothelatestdata,inlifeandnonlifeinsurance,thenewentitieshave
alreadymanagedtogarnermorethan20percentofthenewbusinesspremium.In
banking,foreignbanksinIndianowhaveashareofonlyaround7percentoftotal
bankingassets.Recently,theRBIreleasedanambitiousroadmapforincreasing
thepresenceofforeignbanksinIndia.Aspertheguidelines,theaggregateforeign
investmentfromallsourceswillbealloweduptoamaximumof74percentofthe
paidupcapitaloftheprivatebank.
19
Theroadmapisdividedintotwophases.Inthefirstphase,betweenMarch2005
andMarch2009,foreignbankswillbepermittedtoestablishpresencebywayof
settingupawhollyownedbankingsubsidiary(WOS)orconversionoftheexisting
branches into a was. Further, during this phase, permission for acquisition of
shareholding in Indian private sector banks by eligible foreign banks will be
limitedtobanksidentifiedbytheRBIforrestructuring.Duringthesecondphase
commencinginApril2009,theRBImaypermitmerger/acquisitionofanyprivate
sectorbankinIndiabyaforeignbank.
ThepublicsectoratpresentdominatestheIndianfinancialservicessector.The
Governmentdoesnothaveenoughmoneytosustaintheexpansionplansofthe
presentpublicsectorenterprises.Forexample,therecentpublicissuebyPunjab
NationalBankhasbroughtdowntheGovernment'sstakefrom80percentto57
percent.Ontheotherhand,foreignersholdmorethan70percentoftheequityin
thetwoleadingprivatesectorbanksinIndia,namelyICICIBankandHDFCBank
Insurancecompanies
Insuranceindustryearliercomprisedofonlytwostateinsurers.
LifeInsurersi.e.LifeInsuranceCorporationofIndia(LIC)andGeneralInsurers
i.e. General Insurance Corporation of India (GIC) GIC had four subsidiary
companies.
With effect from Dec'2000, these subsidiaries have beendelinkedfrom parent

companyandmadeasindependentinsurancecompanies.
20
OrientalInsuranceCompanyLimited,
NewIndiaAssuranceCompanyLimited,
NationalInsuranceCompanyLimitedand
UnitedIndiaInsuranceCompanyLimited.
ThefirstbatchoflicenseswasissuedbytheInsuranceRegulatoryand
DevelopmentAuthority(IRDA)in2001.Atpresentfollowingaretheplayersin
theIndianMarket:
Lifeinsurers:
1.ALLIANZBAJAJLIFEINSURANCECO.LTD.
2.AMPSANMARASSURANCECo.LTD.
3.BIRLASUNLIFEINSURANCECO.LTD.
4.DABURCGULIFEINSURANCECOMPANYPVT.LTD.
5.HDFCSTANDARDLIFEINSURANCECO.LTD.
6.ICICIPRUDENTIALLIFEINSURANCECO.LTD.
7.INGVYSYALIFEINSURANCECO.PVT.LTD.
8.LIFEINSURANCECORPORATIONOFINDIA.
9.MAXNEWYORKLIFEINSURANCECO.LTD.
10.METLIFEINDIAINSURANCECO.PVT.LTD
21
11.OMKOTAKMAHINDRALIFEINSURANCECO.LTD.
12.SBILIFEINSURANCECO.LTD.
13.TATAAIGLIFEINSURANCECO.LTD.
Nonlifeinsurers:
1.BAJAJALLIANZGENERALINSURANCECO.LTD.
2.ICICILOMBARDGENERALINSURANCECO.LTD.
3.IFFCOTOKYOGENERALINSURANCECO.LTD.
4.NATIONALINSURANCECO.LTD.
5.NEWINDIAASSURANCECO.LTD.
6.ORIENTALINSURANCECO.LTD.
7.RELIANCEGENERALINSURANCECO.LTD.
8.ROYALSUNDARAMALLIANCEINSURANCECO.LTD.
9.TATAAIGLIFEINSURANCECO.LTD.
10.UNITEDINDIAINSURANCECO.LTD
Reinsurers:
GENERALINSURANCECORPORATIONOFINDIA
IRDA
(InsuranceRegulatoryandDevelopingAuthority)
On the recommendation of Malhotra Committee, an Insurance Regulatory
DevelopmentAct(IRDA)passedbyIndianParliamentin1993.Itsmainaimisto
activate an insurance regulatory apparatus essential for proper monitoring and

controloftheInsurance
22
industry.DuetothisActseveralIndianprivatecompanieshaveenteredintothe
insurancemarket,andsomecompanieshavejoinedwithforeignpartnersIRDA
was constituted by an act of parliament. The Authority is a ten member team
consistingof:
(a)AChairman(b)Fivewholetimemembers(c)fourparttimemembers
(1)SubjecttotheprovisionsofSection14ofIRDAAct,1999andanyotherlaw
forthetimebeinginforce,theAuthorityshallhavethedutytoregulate,promote
andensureorderlygrowthoftheinsurancebusinessandreinsurancebusiness.
(2)Without prejudice to the generality of the provisions contained insub
section(1),thepowersandfunctionsoftheAuthorityshallinclude,
(a)Issuetotheapplicantacertificateofregistrationrenew,modifies,withdraw,
suspendorcancelsuchregistration;
(b)protectionoftheinterestsofthepolicyholdersinmattersconcerningassigning
ofpolicy,nominationbypolicyholders,insurableinterest,settlementofinsurance
claim,surrendervalueofpolicyandothertermsandconditionsofcontractsof
insurance;
(c)Specifyingrequisitequalifications,codeofconductandpracticaltrainingfor
intermediaryorinsuranceintermediariesandagents;
(d)Specifyingthecodeofconductforsurveyorsandlossassessors;
(e)Promotingefficiencyintheconductofinsurancebusiness;
(f)Promoting and regulating professional organizations connected with the
insuranceandreinsurancebusiness;
(g)LevyingfeesandotherchargesforcarryingoutthepurposesofthisAct;
(h)callingforinformationfrom,undertakinginspectionof,conductingenquiries
and investigations including audit of the insurers, intermediaries, insurance
intermediaries
23
andotherorganizationsconnectedwiththeinsurancebusiness;
(I)controlandregulationoftherates,advantages,termsandconditionsthatmay
beofferedbyinsurersinrespectofgeneralinsurancebusinessnotsocontrolled
and regulated by the Tariff Advisory Committee under section 64U of the
InsuranceAct,1938(4of1938);
j)Specifyingtheformandmannerinwhichbooksofaccountshallbemaintained
and statement of accounts shall be rendered by insurers and other insurance
intermediaries;
(k)Regulatinginvestmentoffundsbyinsurancecompanies;
(l)Regulatingmaintenanceofmarginofsolvency;
(m)Adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
(n)SupervisingthefunctioningoftheTariffAdvisoryCommittee;
(0)specifyingthepercentageofpremiumincomeoftheinsurertofinanceschemes
forpromotingandregulatingprofessionalorganizationsreferredtoinclause(f);
(p)Specifying the percentage of life insurance business and general insurance
businesstobeundertakenbytheinsurerintheruralorsocialsector;and
(q)Exercisingsuchotherpowersasmaybeprescribed
TariffAdvisoryCommittee(TAC)(StatutoryBodyunderInsuranceAct1938):
TariffAdvisoryCommitteecontrolsandregulatestherates,advantages,termsand
conditions that may be offered by insurers in respect of General Insurance
Business relating to Fire, Marine (Hull), Motor, Engg. and workmen
Compensation. Effective22/07/98, theTAC Boardhas beenreconstituted with
seven members representing the present General Insurance Industry and eight
membersfromgovernmentandindustry
24
Companyprofile
History:
Incorporated on 20 July 2000 it is a joint venture between ICIC(74%) and
PrudentialLIC(26%)ofU.K.InNovember2000,ICICIPrudentialLifeInsurance
wasgrantedCertificationofRegistrationforcarryingoutlifeinsurancebusinessby
theInsuranceRegulatory&DevelopmentAuthorityofIndia.TheCompanyissued
itsfirstpolicyon12December2000.ICICIPrudentialLifeInsuranceisajoint
venturebetweentheICICIGroupandPrudentialplc,oftheUK.ICICIstartedoff
itsoperationsin1955withprovidingfinanceforindustrialdevelopment,andsince
thenithasdiversifiedintohousingfinance,consumerfinance,mutualfundsto
beingaVirtualUniversalBankanditslatestventureLifeInsurance.
ForeignPartner:
Established in 1848, Prudential plc. Of U.K. has grown to be the largest life
insuranceandmutualfundCompanyinU.K.Prudentialplc.Hashaditspresence
inAsiaforthepast75yearscateringtoover1millioncustomersacross11Asian
countries.PrudentialisthelargestlifeinsurancecompanyintheUnitedKingdom
(Source: S&P's UK Life Financial Digest, 1998). ICICI and Prudential came
togetherin1993toprovidemutualfundproductsinIndiaandtodayarethelargest
privatesectormutualfundcompanyinIndia.
TheirlatestventureICICIPrudentialLifeplanstotakecareoftheinsuranceneeds
at
25
variousstagesoflife
Prudential plc, one of the UK's leading financial service providers, issued life
insurancepoliciesinPolandpriortoWorldWarIIthroughPrudentialAssurance
CompanyLimitedanditssubsidiary"Przezomosc",anowdefunctPolishcompany
inwhichPrudentialAssuranceacquiredacontrollinginterestin1927.
PizezomosccontinuedtoissuelifepoliciesinPolanduntil31December1936,and
PrudentialAssuranceissuedlifepoliciesinPolandfrom1January1933to31
December1936.Witheffectfrom1January1937bothcompaniesceasedtoaccept
newlifebusinessandtheadministrationofthetwoportfolioswascombined.
BasedonnotesofsurvivingrecordsthatexistedinPrudentialAssurance'sLondon
officetherewere4,623policiesinforceinPolandattheoutbreakofWorldWarII
in1939.Over33%ofthesepolicieshavebeensettledsincetheearly1950sdespite
significantgapsinourrecords,dueinnosmallparttotheirdestructioninPoland
underNaziOccupation.
The assets of Prudential's Polish Business were seized by the Nazi occupying
authorities,followingtheinvasionofPolandin1939.UnlikesomemajorEuropean
insurersPrudentialdidnottradeinNazioccupiedEuropeICICIPrudentialLife
InsuranceCompanyisajointventurebetweenICICIBank,apremierfinancial
powerhouse and prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was amongst the first
privatesectorinsurance
26
companiestobeginoperationsinDecember2000afterreceivingapprovalfrom
InsuranceRegulatoryDevelopmentAuthority(IRDA).
ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank and
Prudentialplcholding74%and26%stakerespectively.Inthefinancialyearended
March31,2005,thecompanygarneredRs1584croreofnewbusinesspremium
foratotalsumassuredofRs13,780croreandwrotenearly615,000policies.The
companyhasanetworkofabout56,000advisors;aswellas7bancassuranceand
150corporateagenttieups.Forthepastfouryears,ICICIPrudentialhasretained
itspositionastheNo.1privatelifeinsurerinthecountry,withawiderangeof
flexibleproductsthatmeettheneedsoftheIndiancustomerateverystepinlife
Promoters
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset
ManagementCompany,whichhastodayemergedasoneoftheleadingmutual
fundsinIndia.Thetwocompaniesbringtogethertwoofthestrongestfinancial
service brands in Asia, known for their professionalism, excellent quality of
service and long term commitment to YOU. Riding on the success of this
relationship,thetwocompaniesjoinedhandsoncemorein2000,toformICICI
Prudential Life Insurance, with a commitment to provide leading edge life
insurancesolutions.
ICICIBankhas74%stakeinthecompany,andprudentialPLChas26%.
27
ICICIBank
ICICIBankisIndia'ssecondlargestbankwithanassetbaseofRs.106812crore.
ICICIBankprovidesabroadspectrumof financialservicestoindividualsand
companies.Thisincludesmortgages,carandpersonalloans,creditanddebitcards,
corporateandagriculturalfinance.TheBankservicesagrowingcustomerbaseof
more than 7 million customer accounts and 5 million bondholders' accounts
through amultichannelaccess network. This includes about 450 branches and
extension counters, 1675 ATMs, call centers and Internet
banking(www.icicibank.com).
ICICIBankpostedanetprofitofRs.1,206crore
fortheyearendedMarch31,2003.ICICIBankistheonlyIndiancompanytobe
ratedabovethecountryratingbytheinternationalratingagencyMoody'sandthe
onlyIndiancompanytobeawardedaninvestmentgradeinternationalcreditrating.
TheBankenjoysthehighestAAA(orequivalent)ratingfromallleadingIndian
ratingagencies.
Prudentialplc:
Established in 1848, prudential plc is a leading international financial services
companyintheUK,witharoundUS$250billionfundsundermanagementand
morethan16millioncustomersworldwide.Prudentialhasbroughttomarketan
integratedrangeoffinancialservicesproductsthatnowincludeslifeinsurance,
pensions,mutualfunds,banking,investmentmanagementandgeneralinsurance.
InAsia,PrudentialisUK'slargestlifeinsurancecompanywithavastnetworkof
22lifeandmutualfundoperationsintwelvecountriesChina,HongKong,India,
Indonesia,Japan,Korea,Malaysia,thePhilippines,Singapore,Taiwan,Thailand
andVietnam.Since1923,Prudentialhas
28
championedcustomercentricproductsandservices,supportedbyover60,000
staffandagentsacrosstheregion.
VISION
ThecompanysvisionistomakeICICIPrudentialthedominantlifeandpension
playerbuiltontrustbyworldclasspeopleandservices.hopetoachievethisby:
. UnderstandingtheneedsofcustomersandofferingthemsuperiorProductsand
services.
. Leveragingtechnologytoservicethecustomersquickly,efficientlyand
conveniently..
DevelopingandimplementingsuperiorUrdealinriskmanagementandInvesting
strategiestooffersustainableandstablereturntothePolicyholders.
. Providinganenvironmenttofostergrowthandlearningofouremployees.
. Andaboveallbuildingtransparencyinorganizations.
29
BoardofDirectors
TheICICIPrudentialLifeInsuranceCompanyLimitedBoardcomprisesreputed
people
fromthefinanceindustrybothfromIndiaandabroad.
Mr.K.V.Kamath,Chairman
Mr.MarkNorbom
Mrs.LalitaD.Gupte
Mrs.KalpanaMorparia
Mrs.ChandaKochhar
Mr.KevinHolmgren
Mr.M.P.Modi
Mr.RNarayanan
Ms.ShikhaSharma,ManagingDirector
ManagementTeam
Ms.ShikhaSharma,ManagingDirector
Mr.SandeepBatra,ChiefFinancialOfficer&CompanySecretaryMr.
ShubhroJ.Mitra,ChiefHumanResources
Mr.PuneetNAnda,HeadInvestments
Ms.AnitaPai,ChiefCustomerServiceandOperations
Mr.V.Rajagopalan,AppointedActuary
Mr.DipanBhattacharyaChiefInformationTechnology
30
COMPANYPRODUCTS
InsuranceSolutionsforIndividuals
ICICI Prudential Life Insurance offers a range of innovative,customer
centricproducts that meet the needs of customers at every life stage. Its 20
productscanbeenhancedwithupto6riders,tocreateacustomizedsolutionfor
eachpolicyholder.
SavingsSolutions
SecurePlusisatransparentandfeaturepackedsavingsplanthatoffers3levelsof
protection.
Cash Plus is a transparent,featurepackedsavings plan that offers 3 levels of

protectionaswellasliquidityoptions.
SavenProtectisatraditionalendowmentsavingsplanthatofferslifeprotection
alongwithadequatereturns.
Cashbackisananticipatedendowmentpolicyidealformeetingmilestoneexpenses
likeachild'smarriage,expensesforachild'shighereducationorpurchaseofan
asset.
Lifetime&LifetimeIIoffercustomerstheflexibilityandcontroltocustomizethe
policy to meet the changing needs at different life stages. Each offer 4 fund
options?
Preserver,Protector,BalancerandMaximiser.
LifeLinkIIisasinglepremiumMarketLinkedInsurancePlanwhichcombines
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lifeinsurancecoverwiththeopportunitytostayinvestedinthestockmarket.
PremierLifeisalimitedpremiumpayingplanthatofferscustomerslifeinsurance
covertilltheageof75.
InvestShieldLifeisaMarketLinkedplanthatprovidescapitalguaranteeonthe
investedpremiumsanddeclaredbonusinterest.
InvestShieldCashisaMarketLinkedplanthatprovidescapitalguaranteeonthe
invested premiums and declared bonus interest along with flexible liquidity
options.InvestShieldGoldisaMarketLinkedplanthatprovidescapitalguarantee
ontheinvestedpremiumsanddeclaredbonusinterestalongwithlimitedpremium
paymentterms.
ProtectionSolutions
Lifeguard is a protection plan, which offers life cover at very low cost. It is
availablein3options,Leveltermassurance,leveltermassurancewithreturnof
premiumandsinglepremium.
ChildPlans
SmartKideducationplansprovideguaranteededucationalbenefitstoachildalong
withlifeinsurancecoverfortheparentwhopurchasesthepolicy.Thepolicyis
designedtoprovidemoneyatimportantmilestonesinthechild'slife.SmartKid
plans are also available in unit linked form, both single premium and regular
premium.
32
RetirementSolutions
ForeverLifeisaretirementproducttargetedatindividualsintheirthirties
SecureplusPensionisaflexiblepensionplanthatallowsonetoselectbetween3
levelsofcover.
MarketlinkedretirementProducts:
LifetimePensionIIisaregularpremiummarketlinkedpensionplan
.LifeLinkPensionIIisasinglepremiummarketlinkedpensionplan.
.InvestShieldPensionisaregularpremiumpensionplanwithacapitalguaranteeOn
theinvertiblepremiumanddeclaredbonuses.
ICICIPrudentialalsolaunched?SalaamIndigo?Asocialsectorgroupinsurance
Policytargetedattheeconomicallyunderprivilegedsectionsofthesociety.
GroupInsuranceSolutions
ICICIPrudentialalsooffersGroupInsuranceSolutionsforcompaniesseekingto
enhancebenefitstotheiremployees.ICICIPrudentialGroupGratuityPlan:ICICI
Progroupgratuityplanhelpsemployersfundtheirstatutorygratuityobligationina
scientificmanner.Theplancanalsobecustomizedtostructureschemesthatcan
provide benefits beyond the statutory obligations. ICICI Prudential Group
Superannuation Plan: ICICI Pro offers a flexible defined contribution
superannuationschemetoprovidearetirementkittyforeachmemberofthegroup.
Employeeshavetheoptionofchoosingfromvariousannuityoptionsoroptingfor
apartialcommutationoftheannuityatthetimeof
33
retirement. ICICI Prudential Group Term Plan: ICICI Pm flexible group term
solutionhelpsprovideaffordablecovertomembersofagroup.Thecovercouldbe
uniformorbasedondesignation/rankoramultipleofsalary.Thebenefitunderthe
policyispaidtothebeneficiarynominatedbythememberonhis/herdeath.
FlexibleRiderOptions
ICICIPmLifeoffersflexibleriders,whichcanbeaddedtothebasicpolicyata
marginalcost,dependingonthespecificneedsofthecustomer.
Accident&disabilitybenefit:Ifdeathoccursastheresultofanaccidentduringthe
termofthepolicy,thebeneficiaryreceivesanadditionalamountequaltothesum
assuredunderthepolicy.Ifthedeathoccurswhiletravelinginanauthorizedmass
transport vehicle, the beneficiary will be entitled to twice the sum assured as
additionalbenefit.
AccidentBenefit:Thisrideroptionpaysthesumassuredundertheriderondeathdue
toaccident.
CriticalIllnessBenefit:protectstheinsuredagainstfinanciallossintheeventof9
specifiedcriticalillnesses.Benefitsarepayabletotheinsuredformedicalexpenses
priortodeath.
MajorSurgicalAssistanceBenefit:providesfinancialsupportintheeventofmedical
emergencies,ensuringbenefitsarepayabletothelifeassuredformedicalexpenses
incurredforsurgicalprocedures.Coverisofferedagainst43surgicalprocedures.
IncomeBenefit:Thisriderpaysthe10%ofthesumassuredtothenomineeevery
34
year,tillmaturity,intheeventofthedeathofthelifeassured.Itisavailableon
SmartKid,SecurePlusandCashPlus
WaiverofPremium:Incaseoftotalandpermanentdisabilityduetoanaccident,the
premiumsarewaivedtillmaturity.ThisriderisavailablewithSecurePlusand
CashPlus.
ABOUTTHEPROMOTERS
ICICIBankisIndia'ssecondlargestbankwithtotalassetsofaboutRs.112,024
croreandanetworkofabout450branchesandofficesandabout1750ATMs.It
offersawiderangeofbankingproductsandfinancialservicestocorporateand
retailcustomersthroughavarietyofdeliverychannelsandthroughitsspecialized
subsidiaries and affiliates in the areas of investment banking, life andnon
lifeinsurance, venture capital, asset management and information technology.
ICICIBankpostedanetprofitofRs.l,637croresfortheyearendedMarch31,
2004.ICICIBank'sequitysharesarelistedinIndiaonstockexchangesatChennai,
Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National
StockExchangeofIndiaLimitedanditsAmericanDepositaryReceipts(ADRs)
arelistedontheNewYorkStockExchange(NYSE).
EstablishedinLondonin1848,Prudentialplc,throughitsbusinessesintheUKand
Europe,theUSandAsia,providesretailfinancialservicesproductsandservicesto
morethan16millioncustomers,policyholderandunitholdersworldwide.Asof
June30,2004,thecompanyhadoverUS$300billioninfundsundermanagement.
Prudentialhasbroughttomarketanintegratedrangeoffinancialservicesproducts
thatnowincludeslifeassurance,pensions,mutualfunds,banking,investment
35
managementandgeneralinsurance.InAsia,PrudentialistheleadingEuropeanlife
insurancecompanywithavastnetworkof24lifeandmutualfundoperationsin
twelvecountriesChina,HongKong,India,Indonesia,Japan,Korea,Malaysia,
thePhilippines,Singapore,Taiwan,ThailandandVietnam.
PRIVATESECTORINSURANCEMARKETSHARES
IntodaysPrivateinsurancesectorICICPrudentialholdsthehighesti.e.
huge30%shareintheprivateinsurancemarket,ascomparedtoallotherwhich
togethercompriseoftherest70%ofthemarketshare.Inthefinancialyearended
march31,2005,thecompanygarneredrs.1584croreofnewbusinesspremiumfor
atotalsum assuredofRs.13780croreandwrotenearly615000policies.The
companyhasanetworkofabout56000advisors:aswellas7bancassuranceand
150corporateagenttieupsforthepastfouryears,ICICIPrudentialhasretainedits
positionastheno.1privatelifeinsurerinthecountrywithawiderangeofflexible
productsthatmeettheneedsoftheIndiancustomerateverystepinlife.
DISTRIBUTION
ICICIPrudentialhasoneofthelargestdistributionnetworksamongstprivatelife
insurersinIndia,havingcommencedoperationsin74citiesandtownsinIndia.
Theseare:Agra,Ahmedabad,Ajmer,Allahabad,Amritsar,Anand,Aurangabad,
Bangalore, Bareilly, Bharuch, Bhatinda, Bhopal, Bhubhaneshwar, Calicut,
Chandigarh,Chennai,Coimbatore,Dehradun,Durgapur,Faridabad,Goa,Guntur,
Guwhati,Gurgaon,Gwalior,
36
Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur,

Kanpur,Karnal,Kochi,Kolkata,Kolhapur,Kota,Kottayam,Kozhikode,Lucknow,
Ludhiana, Madurai, Mangalore, Meerut, Mehsana, Mumbai, Mysore, Nagpur,
Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela,
Saharanpur,Salem,Shimla,Siliguri,Surat,Thane,Thrissur,Trichy,Trivandrum,
Udaipur,Vadodara,Vapi,Vashi,VijayawadaandVizag.
The company has seven banc assurancetieups,having agreements with ICICI

Bank,FederalBank,SouthIndianBank,BankofIndia,LordKrishnaBankand
somecooperativebanks,aswellasover150corporateagentsandbrokers.Ithas
alsotiedupwithNGOs,MFIsandcorporateforthedistributionofruralpolicies
andorganizationslikeDhanfordistributionofSalaamZindagi,apolicyforthe
sociallyandeconomicallyunderprivilegedsectionsof society.ICICI Prudential
hasrecruitedandtrainedabout56,000insuranceadvisorstointerfacewithand
advise customers. Further, it leverages itsstateoftheartIT infrastructure to
providesuperiorqualityofservicetocustomers.
37
MARKETSHAREOFLIFEINSURANCECOMPANIES
MARKET SHARE
4%
3%4%
4%
1%
4%
5%
20%
7%
8%
10%
30%
BAJAJ ALLIANZ
ICICI PRUDENTIAL
HDFC STANDARD
SBI LIFE
BIRLA SUNLIFE
TATA AIG
MAX NEW YORK
AVIVA
KOTAK MAHINDRA
ING VYSYA
RELIANCE LIFE
MET LIFE
SHRIRAM LIFE
38
Annualizedpremium&policygrowth
thousands & crores
2000
1500
policy
1000
annualized
premium
500
0
1
year
39
SPOTANIOUSANDTOTALBRANDAWARENESS
Reachingouttothecustomer
120
100
100
98
90
80
72
60 54
40
5956
56
52
30
19
52
36
35
23
21
17
17
16
14
12
10
5
20
11
LIC
Life
Prudential
ICICI
HDFC
AIG
Allianz
Sunlife -
Life
Tata
Mahindra
Standard
Birla
Bajaj
Kotak
SBI
Max
york
Life
Life
Aviva
New
ING
Vysya
AMP
200506
Nextten
48%
40%
35%
Nexttwenty
13%
24%
24%
Others
0%
6%
15%
Companyscredentials
No1Privatelifeinsurancecompany
2ndLargestininsurancesectorinIndia
Incorporation:July2000
Initialpaidupcapital:150Cores
Presentpaidupcapital:8114Cores
Noofbranches:700
Locations:450
Noofadvisors:235000
NoofemployeesalloverIndia:20000
Noofpolices:2.5Million
Sanmar
Spreadofbusiness 200304 200405

Toptwocities
39%
30%
40
Metlife
26%
Premium:1800Cores
41
Greateraccessofcustomer
Customeraccess
20032004
20042005
20062007
Nooflocation
56
74
450
Noofbranches
72
107
700
Noofadvisors
32700
56300
235000
Noofpartners
3100
43000
110000
Eachdistributionchannelhasgrownupmorethanthreefoldoverpastthreeyears.
Beanadvisorandbuildacareer
Pinnacleprogram,Mobiletiger
Qualificationanygraduation,C.A,M.B.A
25%advisorsarewomen
Covering200000farmers
90%claimssettledwithin8days
100organizationwithin17states
Beanadvisorandbuildacareer
Pinnacleprogram,Mobiletiger
Qualificationanygraduation,C.A,M.B.A
25%advisorsarewomen
Covering200000farmers
90%claimssettledwithin8days
42
THEORITICALBACKGROUND
Tostartmyprojectitwasimportantformetounderstandfewtermswhichwillbe
usedveryoften.ThesearethecoretermswhichIhadtobeawareof,tostartmy
project.AstodeveloptheagencyIshouldknowwhoisanadvisor?Orthetraining
processandthecareerbenefits.thecompanyisofferingthem.
ADVISORS
BeinganICICIPrudentialadvisorcanbeenrichingandexcitingcareeroption..
Itsanopportunitytoassociatewithanindustryleader,beintouchwiththelatest
andfinestinsurancepracticesfromaroundtheglobe,andgrowbothpersonallyand
professionally.HerearesomeofthebenefitsofbeinganICICIPrudentialLife
insuranceAdvisor:
oUnlimitedearningpotential.
Aclearcareerpath.
Allroundsupportthroughexclusiveadvertising,yourowninhouse
Consultantandworldclasstraining.
Acomprehensivebenefitpackage.
WhatdoesittaketobeanICICIPrudentialadvisor?
43
At ICICI Prudential, we believe that our advisors are our ambassadors to the
Customers.Theyareakeysourceofbusinessfortheorganization,andarethe
continuinglinkwithourclients.Thatiswhy;wetakealotofcareinrecruitingand
developing our advisor. Force, so that we continue to set higher standards of
quality in service and salesmanship. To cater to the needs of the knowledge
oriented,goodcommunicatorsand
enjoymeetingnewpeople.Priorsalesexperienceisanaddedbenefit.Someofthe
qualitiesweseekare:
1)SELFMOTIVATION
2)AMASTERCOMMUNIC
3)AGOGETTER.
4)AGRADUATE
TRAINING
At ICICI Prudential, we understand the importance of training in a dynamic
business environment. Our advisors go through both generic and specific,
professionalprogrammersthathelpthemremainwellinformedandknowledgeable
aboutthecompanysproductsinthemarket.Thereisafurtherfocusonsoftskills
suchascommunication,managinglongtermrelationshipsandsellingskills,which
areveryrelevantinaservicedrivenindustrylikelifeinsurance.
Stateoftheartinfrastructuretrainingfacilitiescoupledwithanexcellentfaculty,
guarantee an exceptional learning environment. For advisors who might be
occupiedwith
44
their daily business or professional routines. ICICI Prudential also offers

convenienttrainingoptionssuchasonlineandselflearningarealsoprovidedby
theorganization.
A18daytrainingschedulecoversthemandatoryIRDAtrainingrequirementsand
ICICI Prudential product training module. Revision session ensure that the
candidatesthoroughlyunderstandthecoursecontentsandarewellpreparedforthe
licensing examination. Theoretical training is interspersed with practical
appointment with potentials customers, giving advisors a feel of how there
businesswillworkfromtheveryfirstday.Allthrough,theunitmanagerandthe
managementprovidecontinuoussupporttotheadvisorsinachievingindependence
towardsgarneringbusiness
RULESANDREGULATIONSTOBEINSURANCEADVISORS
Thecompanyregisteredundersection3oftheinsuranceact1938,forcarryingout
lifeinsurancebusinessisdesirousofappointingtheagentasaninsuranceadvisor
ofthecompanyforsolicitingandprocuringforitlifeinsuranceadvisors,who
holdsshallholdavalidlicensetoactasaninsuranceagentundersectionact42
thatact1938
APPOINTMENTOFTHEINSURANCEADVISORS:
1.The agreement shall come into force on the date of license issued to act as an
insuranceagent
2.Theinsuranceadvisorsmaybeappointedinanyplaceforthepurposeofsoliciting
andprocuringlifeinsurancebusinessforthecompany
3.theinsuranceadvisorsshallatalltimesfulfillthemaxi
45
BENEFITSOFBECOMINGANADVISOROFICICIPRUDENTIAL
CAREERBENEFITS
Tigertrainee
Advisorhastheoptionofjoiningthecompanyastiger(fulltimeemployee)Till
date48advisorsarehavequalifiedasTigertrainees
Criteriaforselection
Agegroup2545
Minimumtwopoliceseverymonthforatleastforoneyear
SelectedcandidateshavetoclearanAssessmentcentersbeforegettingselected
Mobiletiger
Advisorhasoptiontojoiningthecompanyasparttimetrainer
Tilldate257advisorsrequalifiedasamobileTigers
Criteriaforselection.
Agegroup2545
SelectedcandidateshavetoclearanAssessmentcentersbeforegettingSelected
Pinnacle
AdvisorhasoptionifjoiningthecompanyasaunitmanagerCriteriaforselection
Agegroup2545
SelectedcandidateshavetoclearanAssessmentcentersbeforegettingselected
46
Fasttrackpinnacle
Advisorhasoptionifjoiningthecompanyasaunitmanager
Agegroup2545
minimum30policywithinayear
OR
Licensedadvisorswithinaperiodof3month.
SelectedcandidateshavetoclearanAssessmentcentersbeforegettingSelected
AdvisorloyaltyprogrammerGrandperks
Thisisunitloyaltyprogramforourperformingadvisorswherequalifyingadvisors
areentitledforvariousbenefitsandprivileges.Therearethreequalifyingslabs.
Thisis
annualprogramfortheperiodof1stofJulyto30thJune.
Grandperksilverbenefit
Rewardcatalogue
Callcenteraccess
Websiteaccess
AccidentinsuranceworthofRs.50,000
Discountcoupononceinayear
Associatefinancialplannerprogramavailableatdiscountcost(40%discount)
47
Grandperkgoldbenefit
FreereprovedICICIbankcreditcardwithaccidentalinsuranceworth20
Lacks
Discountcouponbooklettwiceinayear
Valetserviceofbookingofmovietickets,travelarrangementsandpaymentutility
bills
Rewardcatalogue
Callcenteraccess
Websiteaccess
AccidentinsuranceworthofRs50,000
Associatefinancialplannerprogramavailableatdiscountcost(40%discount)
Quarterlynewsletter
Invitationforspecialshows.
Fullyloadedlaptopavailableatcompanyrates.
GRANDPERKPLATINUMBENEFITS
Rewardcatalogue.
Callcenteraccess.
Websiteaccess.
AccidentinsuranceworthofRs50,000.
Associate financial planner program available at discount cost (40 %discount)
Quarterlynewsletter.
Invitationforspecialshows.
48
Fullyloadedlaptopavailableatcompanyrates.
FreepreapprovedICICIbankcreditcardwithaccidentalinsuranceworth20lacks.
Discountcouponbooklettwiceinayear.
Valetserviceofbookingofmovietickets,travelarrangementsandpaymentutility
bills.
Personaldevelopmentprogramsconductedbytheprofessionals.
Personaldevelopmentcadslikevisitingcardsletterheadsetc.
Freesubscriptiontoinsurancewatchmagazine.
Extrareimbursementupto3.5%additionalcommissionrates.
Internationalrecognitionandforeigntrips
Presidentclub
This is most prestigious recognition program fromICICIPrudentialthe top 30
advisorsinthecountry(10withspouse)areeligibleforthecontest.Thequalifying
periodfortheprogrammeisJanuaryDecembereachyear.
Someofthelocationsare
Year
Location
20022003
London
20032004
Paris
20042005
Losangels
20052006
LasVegas
49
Internationalstarclub
ThisismostprestigiousrecognitionprogramfromICICIPrudentialthetop.The
top225Advisorsinthecountry(25withspouse)areeligibleforthecontest.The
programmeisconductedbytheICICIPrudentialatanexoticforeignlocation
everyyearfor3N/4DThequalifyingperiodforthisisfromApriltomarcheach
year.
Year
Location
20022003
Singapore
20032004
Malaysia
20042005
Greece
20052006
SouthAfrica
Indianstarclub
ThisiscontestforthetopadvisorsheldeveryyearbetweentheperiodsofApril
march.Advisorsinthecountry(25withspouse)areeligibleforthecontest.The
Advisorsaresenttobeautifullocationsinthecountryforaperiodof3N/4D
Debutstarclub
ThisisacontestforthenewadvisorslicensedafterDec01.Theperiodforthe
contestisAprilSept.75advisorsareinthecountryareeligibleforthecontest
Theadvisorsaresenttoabeautifullocationinthecountryforaperiodof2N/3D.
50
Contest
Qualifyingpremium
Qualifying
Noofqualifiersin
criteriainlacks
commissioncriteria
lastyear
MDRT
22
5.5
448
COT
66
16.5
46
TOT
132
33
10
MDRT:MillionDollarRoundTable
This is one of the most prestigious recognition in the world for an insurance
advisor.Thequalifyingadvisorsgettogetherfromacrosstheworldatalocationin
theU.S.
COTCourtofthetable
Thisisoneofthemostprestigiousrecognitionintheworldforinsuranceadvisors.
ThequalifyingissponsoredbyICICIPrudentialtoattainMDRTconventionat
abroad.
TOTTopofthetable
Thisisoneofthemostprestigiousrecognitionintheworldforinsuranceadvisors.
ThequalifyingissponsoredbyICICIPrudentialtoattainMDRTconventionat
abroad.
Companyrecognition
Certificateofexcellence
Thetop3advisorsofthebrancharerecognizedfortheirexcellentperformancefor
variousqualifyingcriterialike
Pensionsales
51
Nooflivingpolices
Highnetworthsales
BSM/ZM/Hosforums
Thetopadvisorsareinvitedtothesevariousforumseveryquarterandgetchanceto
interactwithmanagementandsharingtheirideaandview.
Otherbenefits
Directentrytograndperkplatinumclubforcot/totadvisorsofcompetition
whojoinsusbytakingofagencyinthenameofanotherfamilymember
Individualemailid
Segmentedtrainingprogramsfortheadvisors
SMSalertsforrenewalpremium
Agencychampion
AnadvisorwhohadqualifiesforMDRTeitherfromICICIPrudentialor
competitioncanjoinsusesanagencycompetition.
AnA.C.hastosetuphisofficewithfullinfrastructureasICICIPrudentialnorms
andwillbereimbursedforthesameinfollowingmanner.
HewillreceivereimbursementagainstabillofRs25000permonthstoamortizeto
hiscostincurredoninfrastructuredevelopment.
Hewillalsobeeligibletogetanoverrideonthecommissionearnedbyhisownas
wellastermbusiness.
52
Heisallowedtosourcebusinessonhisownforwhichhereceivesthenormal
advisor
commission.
53
OBJECTIVEOFTHEPROJECTREPORT
1)TOSTUDYTHEDISTURIBUTIONANDSALESOFINSURANCE
SECTOR:
Thisistheoneofthemainobjectivetoknowhowthepoliciesreachtothe
customerand
whoisthetargetcustomerandwhatwouldbetheirmotives.
2)TOSTUDYBUSINESSMODELANDROLEOFFINANCIALADVISOR
IN
INSURANCE:
Act,1938inIndiaInsuranceagentsaregovernedinsuranceact,1938andtheIRDA
act1999.Thisactsappointment,functionsandremunerationofinsurancenecessary
licenseundersection42oftheinsurance.
bytheprovisionoftheguideinsurersonmatterofagents.Anagentmusthave
3)TOCREATEBRANDAWARENESSOFCOMPANY:
TheforemostobjectiveistocreatebrandawarenessamongthePeople.Strategy
shouldbesuchthatmoreandmorepeopleshouldcometoknowAboutICICI
PRUDENTIAL. Also that people should get an idea of the products of ICICI
PRUDENTIAL.
Areacovered:
i)Swargate
ii)MarketYard
iii)Camp
iv)Wanawadi
v)Kondhwa
54
RESEARCHMETHODOLOGY
Topic:AgencyDevelopment.
Justification
Torecruitqualityadvisorsforthecompanythroughvariouschannels
Tocreatebrandawarenessaboutthecompany.
Tomakeaneffectivedatabase.
Tobeawareofthecompanyprofile
Researchtoolsused
Telecalling
Personalinterview
DirectInvitationtotheOffice
Questionnairesmethod
Societyactivity
Activities
RoadShow
Campanning
BusinessOpportunity
55
Datacollectingmethods
Primarydata
oQuestionnaire,Interview.
Secondarydata
oDirectory,Databasefromcollege.
Limitations
Peoplewerenotinterestedinlisteningtoissueslikelifeinsuranceeveniftheywere
notinsuredofit.
Mostofthepeopleareofthethoughtthatprivatelifeinsurancecompanywillnotlast
forlongandhence;theyprefertoinvestinGovernmentundertakings.
Aftercarryingoutfieldwork,itwasidentifiedthatmanypeopledonotgivetheir
correctcontactnumbersorreferenceforfeedback.
ProfessionalslikeDoctors,Engineers,andCharteredAccountantsdonotseeitas
prestigiousprofessionandperceiveitasamarketingjob.
56
Lackofproperdatabaseaffectedthesearchwork.
DuetoshorttimeperiodIcannotreachtoeachsegmentofcustomer.
Thereisnofixpaymentstructureforadvisors.
57
SWOTANALYSIS
Strengths
2ndLargestininsurancesectorinIndia
Initialpaidupcapital:150Cores
Presentpaidupcapital:8114Core
Noofpolices:1Million
Premium:1584Cores
Weaknesses
NongovernmentorganizationpeoplearehavingmorefaithonL.I.C.Notreachable
tothevillageareastill.
Mostofthepeopleareofthethoughtthatprivatelifeinsurancecompanywillnotlast
forlongandhence,theyprefertoinvestinGovernmentundertaking
SlightlylessbrandawarenessforbrandofICICIPrudential.
Opportunities
BiggestfinancialorganizationinIndia
Over76%peopleinIndianotinsuraranced
Goodinfrastructure.
Nowdaysmorepeoplesareconsciousabuttheinsurance.
58
Threats
Now a days competition in this sector is more around 15 private players are in
insurancesector.
Eachcompanyisdoingheavymarketing.
Peoplearetakingmoretimetotakethedecisionabouttheinsurance
59
DATAOBSERVATION
Doyouhaveanyinsurancepolices?
Profile
TotalNo.
Yes
No
Housewives
20
15
28
Students
35
30
Professionals
20
18
33
Retiredpersons
15
10
19
Selfemployed
10
11
NO. Of policy holder
11%
Housewives
28%
19%
Students
Professionals
Retired persons
9%
33%
Self employed
Interpretation.Amongthepolicyholders,33%areprofessionalswhile9%
arestudents.
60
DoyouknowaboutinsuranceAdvisor?
Profile
TotalNo.
Yes
No
Housewives
20
13
Students
35
21
14
Professionals
20
15
Retiredpersons
15
Selfemployed
10
People know about insurance Advisor

7%
16%
Students
13%
Housewiv
Professionals
Retired persons
37%
27%
Self employed
Interpretation:MostlyProfessionals,selfemployedandretiredpersonsknow
aboutInsuranceAdvisors.
61
Canyousparetimetoselltheinsurancepolicies?
Profile
TotalNo.
Yes
No
Housewives
20
16
Students
35
20
15
42
Professionals
20
13
28
Retiredpersons
15
17
Selfemployed
10
People are interested to sell the policy
17% 4% 9%
42%
28%
Housewives
Students
Professionals
Retired persons
Self employed
Interpretation:Mostlystudents,professionalsandretiredpersonsare
interestedtosellinsurancepolices.
62
Doyouvisitanyinsurancecompany?
Profile
TotalNo.
Yes
No
Housewives
20
14
17
Students
35
14
21
30
Professionals
20
13
28
Retiredpersons
15
11
23
Selfemployed
10
Peoplevisitedinsurancecompany
23% 2% 17%
30% 28%
Housewives
Students
Professionals
Retired persons
Self employed
Interpretation:Professionals,studentandretiredpersonareinterestedtovisit
insurancecompany.
63
Doyouthinkthatworkinginaninsuranceindustryisreallyanincome
generatingsource?
Profile
TotalNo.
Yes
No
Housewives
20
12
19
Students
35
12
23
27
Professionals
20
11
10
26
Retiredpersons
15
21
Selfemployed
10
Insuranceisincomegeneratingsource
7% 19%
21%
27%
26%
Housewives
Students
Professionals
Retired persons
Self employed
Interpretation:Student,professionalsandretiredpersonsseeinsurancesector
asanincomegeneratingsource.
64
DoyouthinkthatinsurancemarketisgrowinginIndia?
Profile
TotalNo.
Yes
No
Housewives
20
12
14
Students
35
15
20
26
Professionals
20
18
32
Retiredpersons
15
14
Selfemployed
10
14
Growinginsurancemarket
14%
14%
14%
House wives
Students
Professionals
26%
Self employed
32%
Interpretation:Amongthegroupofpeoplesurveyed,32%ofthe
professionalsfeelthatinsurancemarketisgrowinginIndia.
:
65
Retired persons
Doyouhaveanyexperiencetoconvincethepeople?
Profile
TotalNo.
Yes
No
Housewives
20
13
11
Students
35
25
10
41
Professionals
20
15
24
Retiredpersons
15
13
21
Selfemployed
10
Peoplehavingexperiencetoconvince
3%
21%
11%
Students
Professionals
24%
41%
House wives
Retired persons
Self employed
Interpretation:Mostlystudents,professionalsandretiredpersonshavemore
experiencetoconvincepeopleeasily.
-*
66
AreyouawareofthebrandnameofICICIPrudential?
Profile
TotalNo.
Yes
No
Housewives
20
10
10
17
Students
35
14
21
23
Professionals
20
20
33
Retiredpersons
15
13
22
Selfemployed
10
PeopleareawareaboutICICIPrudential
22
%
5
%
17
Housewives
Students
Professionals
23
%
Retired persons
Self
employed
33
%
Interpretation:Mostlyprofessionals,retiredpersonsandstudentsknowthe
brandnameofICICIPrudential.
67
FINDINGS
Housewivesareinterestedtodothisjob,buttheyarereluctanttocarryout
fieldwork.
Professionalsandretiredpeopleareinterestedbecausetheyhavemorepractical
experienceandmorepersonalcontactsinthemarket.
Majorityoftherespondentsarenotreadytoworkoncommissionbasis.
Therewasnoproperdatawithcompaniestorecruitadvisors.
Customerswerenotinterestedinlisteningtoissueslikelifeinsuranceevenif
theywerenotinsured.
Mostofthemareofthethoughtthatprivatelifeinsurancecompanywillnotlast
forlongandhence;theyprefertoinvestinGovernmentinsurancecompanies.
Aftercarryingoutfieldwork,itwasidentifiedthatmanypeopledonotgive
theircorrectcontactnumbersorotherreferencesforfeedback.
Thereisnofixpaymentstructureforadvisors.
68
SUGGESTION
ICICIPrudentialmustrecruitmoreofstudentsandretiredAdvisorsastheyareable
togivesufficientamountoftimeforthework.
Thecompanymustmakeeffortstoremovethemisconceptionsthatpeoplehaveabout
privateinsurancecompanies.
ThecompanyshouldhaveaproperpaymentstructureforAdvisors.
Thecompanyshouldmakeeffortstohaveacorrectdatabasetorecruitadvisors.
The company should preferable recruit advisors who have atleast23years of
experienceinsellingfinancialproducts.
Therecruitmentpolicymustbesimilartothatofrecruitingpermanentemployees.
Thecompanyshoulddevotesufficienttimetowardstraininganddevelopmentofthe
advisors.
Simplifydocumentswherevernecessary,withoutloosingcontrol.
Enhance post sales services in such areas as sending all renewal notice in time,
expeditioussettlementofclaimsandrefundsetc.customizeproductstocatertothe
needsofeachindividual.
Emphasizewiththecustomer.Employeescomingincontactwithcustomersmust
showcourtesyandgoodbehavior
69
CONCLUSION
ThemajorityofIndiaisrural.Thismarketcannotbeignored.Insmallmarketthe
credibilityoftheIndianpatterngoesalongwith.Thetatanameisvaluablehere.
However,sciencethelevelofawarenessismuchlowerthaninurbanIndia,the
distributingstrategyhastobedifferent.Distincthastobeformulatedfor cash
collectionandmedicalfacilities.Intheabsenceofthis,companystendtooffer
simpleandeasytobuyandsellpoliciesinmostcentres.Thismarketdemands
tailoreddedicatedinsuranceproducts,forthem,isamatterofsecuresavingforthe
future.
Mindsetsarechanging,butpurchasepatternarenot.ThemonthofFebruaryand
MarchstillarebusiestatLIC.Thetraditionalhookoftaxincentivesandsavings
willtakealongtimetochange.Privateplayersneedtostepuptheirsellingin
termsofneedandprotection.
Thelifeinsuranceindustryisgrowingat15to20percent,andthatthereisenough
spaceforalltheplayerstothrivebecausethereissomuchthingastoomuch
insurance.
Asthemarketgrows,moregenericproductswillbeputout,buttherewillbea
differentiation in individual products as compared to similar products in
endowmentpolicies,wholelifeandpensionplans.Currently,LICdominatesthe
endowmentmarket.Privateplayersaremajorstakeholdersinwholelifeinsurance,
pensionplansandterminsurance.Theyhavemadeasizeabledentbycapturing
40%ofthemarket.
70
Efficient customer service channels differentiate private players from the

traditionalmodel.Manycompaniesprovidebetterservicetodaythentheydidtwo
yearsago.Thecustomergetsquickerturnaroundofclaimsandaccesstofaster
processing. This is a welcome change for a customer who was used to LIC
previously.
Insurancecompaniesarenowprovidinginformationabouttheirperformanceona
regularintervaltobringtransparencyindeclaring.
Gettingworkdonebytheinsuranceadvisorneedsconstantsupportofthemanager.
Sincetheadvisorarethepeoplewhobringbusinesstothecompanysolotof
motivation,encouragement,andsupportarerequired.Onethingisverygoodat
ICICIPrudentialthatthisadvisorgetlotofrecognitionawardapartfromtheir
commission.Theinfrastructuresupportisalsofabulouswhichhelpthemtomeet
theclientsdemand.
Withsomuchofcompetitionprofileofthepersonwhohastorecruitasanagent
shouldbefantastic.People,whohadthatdrive,areindependent,requiredflexible
workinghours,wanttobetheirownboss,wholovetointeractpeople,whowas
financialconsultantorcharteredaccountantetc.
71
BIBLIOGRAPHY
Referencebooks:
PrelicensingAgentTrainingBook(InsuranceInstituteofIndia)
LifeandHealthInsuranceByKennethblack
EffortlessmarketingforfinancialadvisorsBySteveMoeller
MarketingManagementByPhilipKotler
Websites:
www.yahoo.com
www.google.com
www.iciciprulife.com
72

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