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 Scope of the Study

 Objectives of the Study
 Methodology of the Study
 Limitations of the Study




ICICI Prudential Life Insurance is one of the largest Insurance networks in the
country, and 2nd Life Insurance Company in India. The ICICI Group has been in existence
since 1955 when ICICI Ltd., was created. ICICI Prudential started in 2002 as subsidiary
of ICICI Ltd., Today ICICI Life Insurance has a customer base of 4 million with total
assets exceeding Rs.1, 00,000 Cr. making it the 2 nd largest life insurance company in the
country, next only to LIC.

The Insurance sector, after the opening up, provides greater opportunities. Several
global players have emerged and the market has changed significantly. In the changed
scenario, the expectation is that the low Insurance premium as a percentage of GDP
prevailing in India will improve and will offer better opportunities to the insurance

Life Insurance sector is one of the key areas where enormous business potential
exists. In India currently the life insurance premium as a percentage of GDP is 1.3 per
cent against 5.2 per cent in the US, but in the liberalized scenario, the life insurance
premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998- 99
to Rs 592 billion in 2014-15 and to Rs 1450 billion by 2009-10. Corporate non-life
premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in 2009-
10 and personal line non-life from Rs 4 billion to Rs 51 billion.

In the life Insurance segment the Life Insurance Corporation of India (LIC) is the
major player. The LIC has 2050 branches. It is constituted in to seven Zones. Currently
there are 5, 60,000 LIC agents in India. General Insurance is another segment, which has
been growing at a faster pace.


This project titled as “A Study on the life insurance” focuses on some of the key issues
like competitive position that holds, the strengths and weaknesses of the company’s
insurance schemes, consumer’s awareness, customer’s perception etc.
The sample size for this study is 120. The research design carried out for this study is
descriptive research. Primary data are collected from the clients of various insurance
companies through a structured undisguised questionnaire. Secondary data are gathered
from the websites of ICICI Lombardand other companies for the purpose of making a
comparative analysis. Statistical tools like graphs, interval estimation, chi-square test, H-
test, and correlation have been used for the purpose of analysis.

The findings of the study were arrived at based on the analysis conducted. Some of the
major findings of the study relate to increased necessity of having a general insurance
cover, higher reputation enjoyed by ICICI Lombard and priority to have auto/car and
health insurance cover by majority of the respondents. Some of the suggestions of the
study are to make amendments in the premium rates, to maintain the promptness in the
claim settlement procedure, to introduce additional insurance covers and create more
awareness about the products.

The study is been concluded that the performance of ICICI Lombard is excellent in
comparison with its industrial competitors and that the company has high growth
prospects in future years to come.


Life insurance is a form of insurance that pays monetary proceeds upon the death of the
insured covered in the policy. Essentially, a life insurance policy is a contract between the
named insured and the insurance company wherein the insurance company agrees to pay
an agreed upon sum of money to the insured's named beneficiary so long as the insured's
premiums are current.

With a large population and the untapped market area of this population insurance
happens to be a very big opportunity in India. Today it stands as a business growing at the
rate of 15-20% annually. Together with banking services, it adds about 7 percent to the
countries GDP. In spite of all this growth statistics of the penetration of the insurance in
the country is very poor. Nearly 80% of Indian populations are without life insurance
cover and the health insurance. This is an indicator that growth potential for the insurance
sector is immense in India.

It was due to this immense growth that the regulations were introduced in the insurance
sector and in continuation “Malhotra Committee” was constituted by the government in
1993 to examine the various aspects of the industry. The key element of the reform
process was participation of overseas insurance companies with 26% capital. Creating a
more competitive financial system suitable for the requirements of the economy was the
main idea behind this reform.

Since then the insurance industry has gone through many changes. The liberalization of
the industry the insurance industry has never looked back and today stand as one of the
most competitive and exploring industry in India. The entry of the private players and the
increased use of the new distribution are in the limelight today. The use of new
distribution techniques and the IT tools has increased the scope of the industry in the
longer run.

Insurance is the business of providing protection against financial aspects of risk, such as
those to property, life health and legal liability. It is one method of a greater concept
known as risk management –which is the need to mange uncertainty on account of
exposure to loss, injury, disadvantage or destruction.

Insurance is the method of spreading and transfer of risk. The fortunate many who are
exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect
the assets but only compensates the economic or financial loss.
In insurance the insured makes payment called “premiums” to an insurer, and in return is
able to claim a payment from the insurer if the insured suffers a defined type of loss. This
relationship is usually drawn up in a formal legal contract.

Insurance companies also earn investment profits, because they have the use of the
premium 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 may
earn large profits, even if the insurance company pays out in claims every penny received
as premiums. In fact, most insurance companies pay out more money than they receive in
premiums. The excess amount that they pay to policyholders is the cost of float. An
insurance company will profit if they invest the money at a greater return than their cost
of float.

An insurance contract or policy will set out in detail the exact circumstances under which
a benefit payment will be made and the amount of the premiums.

Classification of insurance

The 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 person
who is insured dies while the policy is in effect”.

In 1818 British introduced to India, with the establishment of the oriental life insurance
company in Calcutta. The first Indian owned Life Insurance Company; the Bombay
mutual life assurance society was set up in 1870.the life insurance act, 1912 was the first
statuary measure to regulate the life insurance business in India. In 1983, the earlier
legislation was consolidated and amended by the insurance act, 1938, with
comprehensive provisions for detailed effective control over insurance. The union
government had opened the insurance sector for private participation in 1999, also
allowing the private companies to have foreign equity up to 26%. Following the opening
up of the insurance sector, 12 private sector companies have entered the life insurance

Benefits of life insurance

Life 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 and
long term.

Fundamental principles of life insurance contract;

1) Principle of almost good faith:

“A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk
being proposed whether requested or not”.

2) Principle of insurable interest:

“Relationships with the subject matter (a person) which is recognized in law and gives
legal right to insure that person”.

2) Non-life (general) Insurance:

Triton insurance co. ltd was the first general insurance company to be established in India
in 1850, whose shares were mainly held by the British. The first general insurance
company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was
stabilized in 1907 . there emerged many a player on the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of General
Insurance Corporation (GIC) OF India undertook the post-nationalization general
insurance business.

 Satisfaction is defined as . . .
“A person’s feeling of pleasure or disappointment resulting from comparing a product’s
perceived performance (or outcome) in relation to his or her expectations.”

Customer Satisfaction can be defined as supplying or gratifying all wants or wishes,

fulfilling conditions or desires, or the state of the mind anything that makes a customer
feel pleased or contented.

Consumer Behavior:
Consumer behavior is defined as the behavior that consumers display in searching for,
purchasing, using, evaluating and disposing of products and services that they expect will
satisfy their needs.

The study of the processes involved when individuals or groups select, purchase, use, or
dispose of products, services ideas, or experiences to satisfy needs and desires

Customer value: The ratio between the customers’s perceived benefits (economic,
functional and psychological) and the resources (momentary, time, effort, psychological)
used to obtain those benefits.

Customer satisfaction: Customer satisfaction is the individual’s perception of the

performance of the product or service in relation to his or her expectations.

Motivation: The processes that account for an individual’s intensity, direction, and
persistence of effort toward attaining a goal.

Personality can be described ad the psychological characteristics that both determine and
reflect how person responds to his or her environment.
Perception is defined as the process by which an individual selects, organizes, and
interprets stimuli into a meaningful and coherent picture of the world.

Consumer learning is the process by which individuals acquire the purchase and
consumption knowledge and experience they apply to future related behavior.


The consumer adoption process is the process by which customers learn about new
products, try them, and adopt or reject them. Today many marketers are targeting heavy
users and early adopters of new products recognizing that specific media can reach both
groups and tend to be opinion leaders. The consumer adoption process is influenced by
many factors beyond the marketer’s control, including consumers and organizations
willingness to try new products, personal influences and the characteristics of the new
products or innovations


An innovation refers to any good, service, or idea. That is perceived by someone as new.
The idea may have long history, but it is an innovation to the person who sees it as new.
Innovation takes time to spread through the special system. The consumer adoption
process focuses on the mental process through which an individual passes from first
hearing about an innovation to final adoption. Adopters of new products have moved
through the following five stages.

1. AWARENESS: The consumer becomes aware of the innovation but lacks

information about it.

2. INTEREST: The consumer is stimulated to see the information about the


3. EVALUATION: The Consumer considers whether to try the innovation or not.

4. TRIAL: The consumer tries the innovation to improve his estimate of its value.

5. ADOPTION: The consumer decides to make full and regular use of the


“Study of consumer behavior & customer satisfaction towards ICICI Prudential Life
Insurance Products”.

For every problem there is a research. As all the researches are based on some
and my study is also based upon some objective and these are as follows.

1. To understand the insurance business and products of ICICI Prudential life

insurance co ltd.

2. To find out the people’s perception about life insurance.

3. To find out whether people were really aware of life insurance.

4. To find out how people think about private life insurance.

5. To find out what respondents expect from life insurance.

6. To understand Consumer buying behavior

7. To come out with conclusion and suggestions based on the analysis and the
Interpretation of data.


The project is concerned with the “STUDY ON LIFE INSURANCE. This study
is very useful as the financial market become more sophisticated and complex,
investor needs a financial intermediary who provides the required knowledge
and professional expertise on successful investing and Life insurance is a form
of insurance that pays monetary proceeds upon the death of the insured covered
in the policy. Essentially, a life insurance policy is a contract between the named
insured and the insurance company wherein the insurance company agrees to
pay an agreed upon sum of money to the insured's named beneficiary so long as
the insured's premiums are current

Research in common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for pertinent information on
a specific topic.

The word research has been derived from French word Researcher means to

FRANCIES RUMMER defined “Research: It is a careful inquiry or examination

to discover new information or relationship and to expand or verify existing

Research is the solution of the problem, whether created or already generated.

When research is done, some new out come, so that the problem (created or
generated) to be solved.


Research Design is the conceptual structure within which research is conducted.

It constitutes the blueprint for collection, measurement and analysis of data. The
design used for carrying out this research is Descriptive.

DATA TYPE: In this research the type of data collection is

 Primary data
 Secondary data

DATA SOURCE: The sources of collection of secondary data are:

 Questionnaire
 Books
 Websites
 Magazine
 Brochure

It is very difficult to collect information from every member of a population .As
time and costs are the major limitation that the researcher faces.

A sample of 100 was taken the sample size of 100 individuals were selected on
the basis of convenient sampling technique. The individuals were selected in the
random manner to form sample and data were collected from them for the
research study.


Data collection through questionnaire and personnel interview resulted in
availability of the desired information but these were useless until there were
analyzed. Various steps required for this purpose were editing, coding and
tabulating. Tabulating refers to bringing together similar data and compiling them
in an accurate and meaningful manner. The data collected by questionnaire was
analyzed, interpreted with the help of table, bar chart and pie chart.

1.1 Insurance in India

The insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360 degree turn witnessed over a
period of almost two centuries.

1.2 A Brief history of the Insurance Sector

The business of life insurance in India in its existing form started in India in the year
1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance in India are;
1912: The Indian Life Assurance
For 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 and
Development Authority (IRDA) Bill 1999 paving the way for entry of private companies
into both life and general sectors there was bound to be new-found excitement- and new
success stories. Today, just three years since their entry, their cumulative share has
crossed 13% (source: IRDA), far exceeding expectations. Clearly insurance is on a
growth path.
The percentage of premium income to GDP which was just 2.3% in 2000-01 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, was
at an abysmal 22% of the insurable population. However, private players have had to rise
to many challenges. They were faced with attitudinal barriers towards the category and
the perception that insurance was only a tax saving tool. Insurance per se had lost it basic
rationale: protection. It wasn’t surprising then that its potential lay frozen and
unexploited. The challenge for private insurance players was to change the established
category driver and get customers to evaluate life insurance as an investment-cum-
protection tool.


The life insurance industry recorded a premium income of Rs.82854.80 crore during the financial year
2015-16 as against Rs.66653.75 crore in the previous financial year, recording a growth of 24.31 per cent.
The contribution of first year premium, single premium and renewal premium to the total premium was
Rs.15881.33 crore (19.16 per cent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36
percent), respectively. In the year2000-01, when the industry was opened up to the private players, the
life insurance premium was Rs.34,898.48 crore which constituted of Rs. 6996.95 crore of first year
premium, Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore of single premium. Post opening
up, single premium had declined from Rs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in
2002-03 with the withdrawal of the guaranteed return policies. Though it went up marginally in 2003-04 to
Rs.5936.50 crore (4.62 per cent growth) 2014-15, however, witnessed a significant shift with the single
premium income rising to Rs. 10336.30 crore showing 74.11 per cent growth over 2003-04.
(Rs. lakh)

2014-15 2015-16
First year premium including Single premium
LIC* 1734761.74 2065306.36
(6.34) (19.05)
Private Sector 244070.58 556457.34
(152.74) (127.99)
Total 1978832.32 2621763.70
(14.68) (32.49)

Renewal Premium
LIC 4618580.96 5447422.62
(19.47) (17.95)
Private Sector 67962.05 216293.48
(343.12) (218.26)
Total 4686543.01 5663716.10
(20.75) (20.85)

Total Premium
LIC 6353342.70 7512728.98
(15.63) (18.25)
Private Sector 312032.63 772750.82
(178.83) (147.65)
Total 6665375.33 8285479.80
(18.91) (24.31)
1.3 Brief Review of Scenario – Insurance

Insurance in India started without any Regulation in Nineteenth century.

It was story of a typical colonial era. A few British companies dominated
the market mostly in large urban centers.

Insurance was nationalized mainly on 3 counts First, Indian lives were not insured.
Second, even if they were insured, they were treated as substandard lives and extra
premium was charged. Third, there were gross irregularities in the functioning of Life
insurance was nationalized in the year 1956, and then general insurance was
nationalized in the year 1972. In 1999, the private insurance companies were allowed
back again into insurance sector with maximum cap of 26 percent foreign holding.

 1818 The British introduce to India, with the establishment of the Oriental Life
Insurance company in Calcutta.
 1850 Non life insurance debuts, with Triton Insurance Company.
 1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer
 1907 Indian mercantile Insurance is the first Indian non-life insurer.
 1912 The Indian life assurance companies’ act enacted to regulate the life
insurance 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 foreign
insurers and provident societies.
 1956 Government sets up LIC
 1972 Non life insurance nationalized, GIC set up.
 1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up
to draw up a blue print for insurance sector reforms.
 1994 Malhotra Committee recommends re-entry of private players, autonomy ot
PSU insurers.
 1997 Insurance regulator IRDA (Insurance Regulatory and Development
Authority) set up.
 2000 IRDA starts giving licensed to private insurers
 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 in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies were the launch of the
IRDA’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to sell
their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 12 life insurance and 6 general
insurance companies have been registered.

With the demographic changes and changing life styles, the demand for insurance cover
has also evolved taking into consideration the needs of prospective policyholder for
packaged products. There have been innovations in the types of products developed by the
insurers, which are relevant to the people of different age groups, and suit their
requirements. Continued innovations in product development has resulted in a wide range
of flexible products to meet the requirements for cover at different stages of life -today a
variety of products are available ranging from traditional to Unit linked providing
protection towards child, endowment, capital guarantee, pension and group solutions. A
number of new products have been introduced in the life segment with guaranteed
additions, which were subsequently withdrawn/toned down; single premium mode has
been popularized; unit linked products; and add-on/riders including accidental
death; dismemberment, critical illness, fixed term assurance risk cover, group hospital
and surgical treatment, hospital cash benefits, etc. Comprehensive packaged products
have been 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 Perspective

 Prior to 1956 -242 companies operating

 1956 -Nationalization- LIC monopoly player -Government control
 2001 -Opened up sector

1.6 Contribution to Indian Economy

 Life Insurance is the only sector which garners long term savings.
 Spread of financial services in rural areas and amongst socially less privileged.
 Long term funds for infrastructure.
 Strong positive correlation between development of capital markets and
insurance/pension structure.
 Employment generation.

1.7 Insurance Industry prior to de-regulation

Prior to deregulation in 2000, market was a public monopoly.

 Public Monopoly
- 2000 Offices
- Over 800,000 agents
 Distribution through tied agents only
 Sales approach primarily on a tax savings platform
 Traditional style product offering : Endowment and money back plans
 Inadequate and inflexible products
 Pensions: Small part of product offer
 Limited focus on customer needs

1.8 Improving Service Standards

 Pre Deregulation – Limited Distribution

Channel Access Service Points Use of IT

 Advisors  Branch Network  Limited use of IT

 Post Deregulation – Service through Distribution

Multi Channel Access Multiple Service Use of IT

 Advisors  Call Centers  Shorter time
 Brokers &  Email around time
Corporate agents  Website  Claims
 Bancassurance  Branch  Policy Issuance


ICICI Prudential Life Insurance Company Limited (‘the Company’) a joint venture
between ICICI Bank Limited and Prudential plc of UK was incorporated 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 ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial
services group headquartered in the United Kingdom (UK). The company brings together
the local market expertise and financial strength of ICICI Bank and Prudential’s
International life insurance experience. The company was granted a 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 private sector insurance
companies to begin operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).

From its early days, ICICI Prudential seemed to have the wherewithal for a large-scale
business. By March 31, 2002, a little over a year since its launch, the company had issued
100,000 policies translating into premium income of approximately Rs. 1,200 million on
a sum assured of over Rs.23 billion. When the company began its operations, the need
was to build a brand that was relatable to, symbolized trust and was easily recognized and
understood. It launched a corporate campaign ICICI Prudential also made using the
theme 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 the
company’ 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 specific
campaigns –from child plans to retirement solutions –which highlight how the company
will 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 would
further its goal. Apart from ramping up thoroughly training its advisors, the company has
twelve ‘Bancasurance’ partners –the largest in the country. It swiftly revised and added to
its initial range of products, pioneering market-linked products and pension plans, to offer
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 capital
of the company standing at Rs. 12 billion, ICICI Prudential continues to have the highest
capital base amongst all life insurers in the country. The challenge ICICI Prudential now
faces is to retain its top-notch position and continue to deliver the finest life insurance
and pension solutions to its ever-growing customer base.

ICICI Prudential’s equity base stands at Rs. 1185 crore with ICICI Bank and Prudential
plc holding 74% and 26% stake respectively. For the year ended March 31, 2006, the
company garnered Rs.2, 412 crore of weighted new business premium and wrote 837,963
policies. The sum assured in force stands at Rs.45, 888 crore. The company has a network
of over 72,000 advisors; as well as 9 bancasurance partners and over 200 corporate agent
and broker tie-ups.

ICICI Prudential is also the only private life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA rating is the highest
credit rating, and is a clear assurance of ICICI Prudential’s ability to meet its obligations
to customers at the time of maturity or claims.

For the past five years, ICICI Prudential has retained its position as the No.1 private
insurer in the country, with a wide range of flexible products that meet the needs of the
Indian customer at every step in life.

Beginning operations in December 2000, ICICI Prudential’s success has been meteoric,
becoming the number one private life insurer within months of launch. Today, it has one
of the largest distribution networks amongst private life insurers in India, with branches
in 54 cities. The total number of policies issued stands at more than 780,000 with a total
sum assured in excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total received
premium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20
billion. New business premium income shows a 106% growth at Rs. 7.5 billion, driven
mainly by the company’s range of unique unit-linked policies and pension plans. The
company’s retail market share amongst private companies stood at 36%, making it clear
leader in the segment. To add to its achievements, in the year 2003/04 it was adjudged
Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand Survey’ by AC
Nielsen ORG-MARG). It was also conferred the ‘Outlook Money-Best Life Insurer’
award for the second year running. The company is also proud to have won Silver at
EFFIES 2003 for its ‘Retire from work, not life’ campaign. Notably, ICICI Prudential
was also short-listed to the final round for its ‘Sindoor campaign in EFFIES 2002.

ICICI Prudential’s success is rooted in its philosophy to always offer the customer a
choice. This has been the driving force behind its multi-channel distribution strategy,
which includes advisors, banks, direct marketing and corporate agents. In fact, ICICI
Prudential was the first life insurer to invest in multiple channels and offer the customer
choice and access; thus reducing dependency on any one channel, great strides in the
retirement solutions and pensions market.

The Company’s penetration of the retirement market was driven by the focused approach
towards creating awareness through sustained campaign; ‘Retire from work, not life’.
Within six months, the campaign rewarded ICICI Prudential with an increased share of
23% of the total pensions market and 78% amongst private players. ICICI Prudential has
one of the largest distribution networks amongst private life insurers in India, having
commenced operations in 132 cities and towns in India, stretching from Bhuj in the west
to 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 ICICI
Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some
co-operative banks, as well as over 200 corporate agents and brokers, it has also tied up
with NGOs, MFIs and corporates for the distribution of rural policies.

ICICI Prudential has recruited and trained more than 72,000 insurance advisors to
interface with and advise customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers.

About the Promoters

ICICI Bank (NYSE:IBN) is India’s second largest bank with an asset base of
Rs.2513.89 billion as on March 31, 2006. ICICI Bank provides a broad spectrum of
financial services to individuals and companies. This includes mortgages, car and
personal loans, credit and debit cards, corporate and agricultural finance. The Bank
services a growing a customer base of more than 17 million customers through a multi
channel access network which includes over 620 branches and extension counters, 2200
ATMs, call centers and internet banking (

PRUDENTIAL plc, Established in London in 1848, through its business in the UK and

Europe, the US and Asia, provides retail financial services products and services to more

than 16 million customers, policy holder and unit holders world wide. As of December

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 that now includes

life assurance, pensions, mutual funds, banking, investment management and general

insurance. In Asia, Prudential is the leading European life insurance company with 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.


Beginning operations in December 2000, ICICI Prudential’s success has been meteoric,
becoming the number one private life insurer within months of launch. Today, it has one
of the largest distribution networks amongst private life insurers in India, with branches
in 54 cities. The total number of policies issued stands at more than 780,000 with a total
sum assured in excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total received
premium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20
billion. New business premium income shows a 106% growth at Rs. 7.5 billion, driven
mainly by the company’s range of unique unit-linked policies and pension plans. The
company’s retail market share amongst private companies stood at 36%, making it clear
leader in the segment. To add to its achievements, in the year 2003/04 it was adjudged
Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand Survey’ by
ACNeilsen ORG-MARG). It was also conferred the ‘Outlook Money-Best Life Insurer’
award for the second year running. The company is also proud to have won Silver at
EFFIES 2003 for its ‘Retire from work, not life’ campaign. Notably, ICICI Prudential
was also short-listed to the final round for its ‘Sindoor campaign in EFFIES 2002.

In Keeping with its belief that a happy customer is the best endorsement, ICICI
Prudential has embraced the ‘SIX SIGMA’ approach to quality, an exercise that begins
and ends with the customer from capturing his voice to measuring and responding to his
experiences. This initiative is currently helping the company improve processes,
turnaround times and customer satisfaction levels. Another Novel introduction is the
ICICI Prudential Lifestyle Rewards Club, India’s first rewards programme for Life
Advisors; it allows ICICI Prudential Advisors to redeem points for items ranging from
kitchenware to gold, white goods, and even international holidays.


ICICI Prudential is a case study in how advertising and marketing can play a vital role in
re-shaping an industry. It has demonstrated how an industry where the customer was
nothing more than a policy number has changed to one where ‘customer preference’ rules
the roost.

Brand-building in a complex category like life insurance is an uphill and multi-faceted

task. At the time of launching operations, the communications task was to build
credibility, so as to give the customer the confidence that it was ‘a company that could be
trusted to invest funds with’. The aim was to encourage people to view insurance not as a
compulsory tax saving instrument, but as a means to lead a worry-free, secure life and in
the process, create the differentiator for brand ICICI Prudential.
The brand proposition for all the campaigns was reflected in the line: ‘Suraksha: Zindagi
ke har kadam par’. The campaign featured a significant competitive advantage, the sound
financial backing and credentials of ICICI Prudential, and showcased products from
different segments. The advertising idea was encapsulated in the symbol of protection –
the ‘Sindoor’. This campaign contributed extensively to raising brand awareness and
creating a distinctive identity for the company.

The Company recently tied up with the Forbes Six Sigma rated Dabbawalla organization
in Mumbai for a direct marketing exercise. In a Unique effort to create awareness about a
tax saving product, the company attached a creative of a bitten apple to Mumbai’s
ubiquitous lunchboxes. It worked wonderfully with Mumbai’s office-goers and one that
translated into substantial business for the company.

Brand Values

Market 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 life’s ups and downs. It is a
powerful proposition; one, which ICICI Prudential, is taking into the market place.


Tied Agency

Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large
advisor force that targets various customer segments. The strength of tied agency lies in
an aggressive strategy of expanding and procuring quality business. With focus on sales
& people development, tied agency has emerged as a robust, predictable and sustainable
business model.

Bancassurance and Alliances

ICICI Prudential was a pioneer in offering life insurance solutions through banks and
alliances. Within a short span of two years, and with nearly a large number of partners,
B & A has emerged as a vital component of the company’s sales and distribution strategy,
contributing to approximately one third of company’s total business.
The business philosophy at B&A is to leverage distribution synergies with our partners
and add value to its customers as well as the partners. Flexibility, adaptation and
experimenting with new ideas are the hallmarks of this channel.


The Operations department oils the work processes between the customer and the
company to ensure consistent and quality service to the customer. To streamline the
operations, the Operations department interfaces between the clients and the agents, the
branches and the underwriters, and manages work processes.
The Vision at Customer Service is to deliver ‘World Class Service’ at every opportunity.
Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query
Resolution Unit are all committed to providing effective solutions to over lakhs of
customers across the country.

Information Technology

The Information Technology function at ICICI Prudential is committed to enable business

through the use of technology. It is segmented into 4 groups to enable highest levels of
delivery to the customers: Life Asia Solutions Group that provides flexibility in designing
better product offerings to end-users, the Solutions Group- Web that provides real-time
information to customers and is responsible for customer relationship management, IT
Architecture & Corporate Solutions Group is in charge of developing and maintaining a
blueprint for the IT architecture for the enterprise as a whole. This team works as an in
house R&D Solution Group, exploring new technological initiatives and also caters to
information needs of corporate functions in the organization. IT Infrastructure group is
responsible for providing hardware, software, network services to the whole organization.
This group runs the 'Digital Nervous System' of the Enterprise at the highest levels of
efficiency and provide robust, scalable and highly available platform for deployment of
business application.


The Marketing function at ICICI Pru covers an array of activities - brand and media
management, channel support, direct marketing and corporate communications. The
Brand and Communications team is in charge of advertising, consumer research, media
planning & buying and Public Relations; that helps develop and nurture ICICI
Prudential's corporate identity while effectively communicating its varied product
offerings to the customer. Channel marketing provides support to the sales force by
streamlining the design and development of collaterals and sales tools across distribution
channels. The Direct marketing team was set up to generate high quality leads for
profitable business. The team achieves this through target database acquisition and
communicating customized product information through e-mailers, telemarketing and
innovative direct mailers.

Finance function in ICICI Prudential is committed to create an infrastructure that is
aligned to shareholder expectations. Finance basically comprises of four functions. .
Corporate Planning and MIS provide feedback on business strategies. This includes
driving the budgeting process, providing strategic inputs for decision-making and
management reporting and analysis. The Accounts function includes preparation and
maintenance of financial records, funds management, and expense processing and
treasury operations. Compliance ensures that every action is within the regulatory
framework. This includes reviewing compliance requirements and supporting the ethical
framework of ICICI Pru life. Internal audit provides assurance to the management over
the organizations' control framework and includes process risk management, information
security assessment and business continuity assessment.

Human Resource
The people strategy of ICICI Prudential is “To build a committed team with a culture of
innovation, learning and growth. The Human Resource Function at ICICI Prudential
drives the people strategy of the business. With its initial focus on operational excellence
to deliver benefits and services to staff members, HR is now committed to building
capability through state of the art processes. A robust performance management system,
compensation system and a segmented training architecture enable it to deliver value to
the organization.

Business Excellence
The Business Excellence function is committed to building a quality mindset across the
organization. ICICI Prudential is the first organization in the Insurance Industry that has
adopted the Six Sigma Methodology for process efficiency and measurement. The team is
also driving the Malcolm Baldrige framework across the organization, an intervention
that examines management of key inputs for Business Excellence.

One of the most significant advances in the financial services sector over the past
couple of years has been the growth of Bancassurance – which, in simplest terms,
means the distribution of insurance products through a bank’s distribution channels.
In other words, Bancassurance is a service which can fulfill both banking and
insurance needs at the same time.

Bancassurance as a concept first began in India with the opening up of the insurance
industry to private sector participation in December 1999 which saw the entry of 20
new players - with 12 in the life insurance sector and 8 in the non-life sector.
Bancassurance has also seen significant rise in other Asian markets. For example,
Bancassurance accounted for 24% of new life insurance sales by ‘weighted’ premium
income in Singapore 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 Bancassurance

Although the concept of Bancassurance looks simple enough, it is far from that in real
life practice. Legislative differences, consumer behavior, impact of history and
culture, product complexity, employee work culture and many such other factors have
contributed to 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% in UK and USA.

Bancassurance Models

Globally we have 4 kinds of Bancassurance business models:

 Distribution alliance between the insurance company and the bank

 JV between the two

 Merger between bank and insurer

 Bank builds or buys own insurance products

Most of the Bancassurance operations in India fall into the first model, which in a way is
quite a prudent decision. The Indian Bancassurance scene as of now looks as promising
as perilous, being a vast, unexplored and uncharted expanse. As banks are quite risk
averse, 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 of
the present regulatory framework, one bank can tie-up with only one life and one non-life
insurer, while insurers have the choice to tie-up with any number of banks. We also have
examples of joint ventures between the bank and insurer such as SBI Life and ICICI

Stages in Policy Issuance

1) Proposal

A Proposal Stage is the First stage before the policy is issued at COPS. At this stage, the
application form is received by COPS, but it is pending for issuance due to further
clarifications required from the customer.

2) Login

A proposal which is complete i.e., duly filled with all necessary documents attached to it
& accepted by the Branch ops, is called a Login

3) Reject

An Application gets rejected at the Branch Ops level due to necessary details not filled in
the form or necessary documents not submitted is a Reject. It is then sent back to the
Advisor for completion.

4) Issuance

Issuance means a policy that is issued to the Customer by Central Ops.

5) Decline Status

When a customer refuses to take a policy post login but before Issuance is called a

6) Cancellation

When the cheque given by the customer bounces, it amounts to cancellation of the policy.
7) Lapse

A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.

8) Freelook

Post issuance of the policy, the policyholder has the option to turn down the policy within
15 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.

The joint strengths

A powerful joint venture partnership with each carrying a set of strengths

complementing each others

Brand strength Reputation


Customer base PRUDENTIAL Product

Market Innovators Distribution

Local knowledge Operations


ICICI Prudential’s ultimate promise is financial security. A strong brand certainly boosts
sale, but without customer-friendly, innovative products, even the best brand would not
last long.

ICICI Prudential’s product range has been developed on the understanding that different
people have their own sets of needs at various stages of their lives. It has thus built a
flexible portfolio of products that can be customized to cater to varying needs of people
at each stage, and thus ensure protection in every step of life. The company’s philosophy
has been to help customers understand their financial needs and work closely with them
to customize a product that would meet. Advisors can offer a complete range of products
–Savings plans, Child plans, Market-linked plans, Protection plans, and Retirement plans
– and tailor a flexible solution to meet customers’ changing needs at every stage of life. In
fact, ICICI Prudential was the first to un-bundle product benefits, pioneering the concept
of ‘riders’ and soon after introduce comprehensive market-linked and retirement plans.

ICICI Prudential has launched a handful of products that are analyzed below:

ICICI Prudential's 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 mix
of a cumulative investment scheme and an insurance product; and, finally, standard
products such as money-back and endowment policies.
Single Premium Bond: The Single Premium Bond is the name of a policy that combines
the features of an investment in a cumulative deposit scheme with that of an insurance

Policy-holders are required to pay a one-time premium based on a target sum assured. At
maturity, the policy-holder gets the sum assured and guaranteed additions that work out
to 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 the
case of the demise of the policy-holder. The size of the death benefit is linked to the
number of years left for the policy to expire. On maturity date, the maturity value is also
paid in addition to the death benefits that would have been paid earlier.

Life Guard policies: The company offers two pure life insurance products that have an
umbrella name, Life Guard. One of them involves a one-time premium for which there
are no maturity benefits. The other requires regular premium payments that are returned
at the end of the policy. Life Guard offers absolutely no investment-related return and is
suitable for individuals looking for an unadulterated insurance package.

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products

that meet the needs of customers at every life stage. Its products can be enhanced with up
to 5 riders, to create a customized solution for each policyholder.

Savings Solutions

 Secure Plus is a transparent and feature-packed savings plan that offers 3 levels
of protection.

 Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of

protection as well as liquidity options.

 Save ‘n’ Protect is a traditional endowment savings plan that offers life protection
along with adequate returns
 CashBak is an anticipated endowment policy ideal for meeting milestone
expenses like a child’s marriage, expenses for a child’s higher education or
purchase of an asset.

 LifeTime and LifeTime II offer customers the flexibility and control to customize
the policy to meet the changing needs at different life stages. Each offer 4 fund
options –Preserver, Protector, Balancer and Maximiser.

 LifeLink Super is a single premium Unit Linked Insurance Plan which combines
life insurance cover with the opportunity to stay invested in the stock market.

 Premier Life is a limited premium paying plan that offers customers life
insurance cover till age of 75.

 InvestShield Life is a Unit Linked plan that provides capital guarantee on the
invested premiums and declared bonus interest.

 InvestShield Cash is a Unit Linked plan that provides capital guarantee on the
invested premiums and declares bonus interest along with flexible liquidity

 InvestShield Gold is a Unit Linked plan that provides capital guarantee on the
invested premiums and declares bonus interest along with limited premium
payment terms.

Protection Solutions

 LifeGuard is a protection plan, which offers life cover at very low cost. It is
available in 3 options –level term assurance with return of premium and single
 HomeAssure is a mortgage reducing term assurance plan designed specifically to
help customers cover their home loans in a simple and cost-effective manner.

Child Plans
 SmartKid education plans provide guaranteed educational benefits to a child
along with life insurance cover for the parent who purchases the policy. The
policy is designed to provide money at important milestones in the child’s life.
SmartKid plans are also available in unit-linked form – both single premium and
regular premium.

Retirement Solutions
 ForeverLife is a retirement product targeted at individuals in their thirties.
 SecurePlus Pension is a flexible pension plan that allows one to select between 3
levels of cover.
 Market-linked retirement products
 LifeTime Pension II is a regular premium market-linked pension plan.
 LifeLink Pension II is single premium market linked pension plan.
 InvestShield Pension is a regular premium pension plan with a capital guarantee
on the investible premium and declared bonuses
 Golden Years: is a limited premium paying retirement solution that offers tax
benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and
payout stages.

Health Solutions
 Health Assure and Health Assure Plus: Health Assure is a regular premium
plan which provides long term cover against 6 critical illnesses by providing
policy holder with financial assistance, irrespective of the actual medical
expenses. Health Assure Plus offers the added advantage of an equivalent life
insurance cover
 Cancer Care: is a regular premium plan that pays cash benefit on the
diagnosis as well as at different stages in the treatment of various cancer
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for companies seeking to
enhance benefits to their employees.
ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers
fund their statutory gratuity obligation in a scientific manner. The plan can also be
customized to structure schemes that can provide benefits beyond the statutory

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined
contribution superannuation scheme to provide a retirement kitty for each member of
the group. Employees have the option of choosing from various annuity options or
opting for a partial commutation of the annuity at the time of retirement.
ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps
provide affordable cover to members of a group. The cover could be uniform or based
on designation/rank or a multiple of salary. The benefit under the policy is paid to the
beneficiary nominated by the member on his/her death.
Flexible Rider Options
ICICI Pru Life offers flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.
1. Accident and disability benefit: If death occurs as the result of an accident
during the term of the policy, the beneficiary receives an additional amount
equal to the rider sum assured under the policy. If the death occurs while
traveling in an authorized mass transport vehicle, the beneficiary will be
entitled to twice the sum assured as additional benefit.
2. Accident Benefit: This rider option pays the sum assured under the rider on
death due to accident.
3. Critical Illness Benefit: Protects the insured against financial loss in the event
of 9 specified critical illnesses. Benefits are payable to the insured for medical
expenses prior to death
4. Income Benefit: This rider pays the 10% of the sum assured to the nominee
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 an
accident, the premiums are waived till maturity. This rider is available with
SecurePlus and CashPlus.


Marine Insurance
ICICI Lombardbrings to India a wide range of marine cargo products from various
international markets. Their products considerably widen the scope of coverage presently
enjoyed by the insured population without necessarily involving a high premium.

Burglary insurance
Burglary Insurance for machinery, stock in trade, furniture, fixtures & fittings and for
goods held in trust or on commission for the insured is responsible. Burglary Insurance
covers burglary or housebreaking accompanied by either forcible or violent entry
into/exit from the premises and hold-up.

Engineering Insurance:

 Erection All Risks Insurance

The Erection All Risks policy is a comprehensive insurance, which provides complete
protection against all types of risks associated with erection, testing, commissioning of
machinery, plant and equipment during constructional stage.
 Boiler & Pressure Plant Insurance
It covers the risk of explosion and collapse of any boiler or other pressure plant in the
course of ordinary working.

 Contractor's All Risks Insurance

All types of civil engineering works, ranging from small buildings to massive dams are
exposed to damage from a wide range of causes such as fire, lightning, flood, inundation,
storm, cyclone and other accidental damages. It is a comprehensive insurance which
provides complete protection against all types of civil construction risks.

 Machinery Breakdown Insurance

ICICI Lombardextend its hand offering Machinery Breakdown Insurance Cover ably
supported by most capable technocrats to throw more light about the mechanical side of
all machines.

 Marine-Cum-Erection Insurance

It is developed as a comprehensive product to manage the risk and insurance needs in

course of erection as well as during transit. It is a combination of Erection-All-Risks and
Marine Insurance to cater to the needs of the client where Marine/Transit insurance is
connected with Erection All Risks Insurance of any project.

 Contractor's Plant & Machinery

Contractor's Plant & Machinery is an exclusive all risks policy covering the plant &
machinery used by the contractors at the site for various projects. It covers the property
whether they are at work or at rest or being dismantled for the purpose of cleaning or
overhauling, or in the course of operations or when being shifted within the premises or
during subsequent re-erection, but in any case only after successful commissioning.
Liability Insurance:

 Product Liability Insurance

Liability arises from a civil wrong or breach of personal duty imposed by law on a person
and owed to his/her fellow citizens. In some countries legal rights and duties are framed
in a Civil Code. In others they are not codified but drawn from the precedent of decisions
handed down in the courts over the centuries; this is known as "Common Law".

 Workmen's Compensation Insurance

It provides Insurance against occupational accident or disease to an employee whilst in
course of his employment.

 Public Liability Act

It provides indemnity against the Insured's liability at law to the public in general
(excluding employees) for bodily injury and loss of or damage to property due to the
business activities carried on in insured's premises.

Business solutions:

 Industrial All Risks Policy

It’s a wide and comprehensive cover for the large sized business where the assets at all
locations of the insured exceed Rs.100 Corers. It is an All Risks Policy covering a wide
range of perils such as fire and allied perils, burglary, accidental damage, breakdown as
well as business interruption.

 Office Shield

A flexible policy specifically designed to meet the insurance needs of your modern office,
irrespective of the number of locations.
 Hotel Shield

Tailor-made cover designed to suit the specific needs of the Hotel Industry.

 Enterprise Shield.

It is a newly devised package providing total insurance solutions for industries. You do
not need to analyze and evaluate a large number of insurance policies to insure your
business completely.

 Education Shield

Tailor-made cover designed to suit the specific needs of Education Industry.

 Traders Shield

It is an attractive policy that provides shopkeepers with a basic insurance package and a
further range of optional covers.

 All Risks Policy for Portable Equipments

It offers an overall solution to cover portable items like laptops, mobiles, cameras and

 Standard Fire and Special Perils Policy

It offers cover against fire and allied perils and the perils of nature. The policy can cover
building (including plinth and foundation), plant and machinery, stocks, furniture,
fixtures and fittings and other contents.

 Consequential Loss (Fire) Insurance

It provides protection against loss of profits in business due to an interruption in business

consequent upon an insured peril covered under the material damage policy.
Employee solutions:

 Group Personal Accident Policy

It is a worldwide cover providing protection for the employees against any accidental
injuries sustained by the individuals resulting in death and disablement.

 Group Health

Health Premium Platinum is a comprehensive health insurance package, designed for the
employees of company and their family members.

 Workmen's Compensation

Workmen's Compensation provides cover to target clients as required by law in support to

project insurances or property insurances.


This study has a wider scope among the insurance sector. The study which focuses on
various aspects such as competitive position of [COMPANY NAME], strengths and
weaknesses of insurance covers, customer’s perception, etc also holds good for other
companies in the life and non-life insurance segment.

The outcome of the study, which are based on the above aspects can be utilized by
the marketing department of both life and non-life insurance companies.

There were certain limitations in undertaking this research work. As it is understood that
the limitations are a part of the project, they have been overshadowed by the benefits of
the study.

 The survey conducted may not be considered as comprehensive as only limited

respondents could be contacted because of the time constraint.

 Objectives and the purposes of the study and the questions had to be explained to
the respondents and their responses may be biased.

 Some of the respondents were reluctant to give their responses.

 Only limited sample size had been considered for the study and therefore, the
conclusions drawn based on this may not be a reflection of the entire population.

According to the recent report of Lloyd, the Indian insurance market is likely to change in
the next few years significantly largely due to regulatory changes. In addition, premium
growth is being driven by other factors such as the growing consumer class, increased
foreign direct investment, infrastructure development, and an increased awareness of
catastrophe exposure.

Despite significant positive changes, the insurance market must still face the challenge of
poor customer perceptions and the danger that the pace of reform will slow. Several
significant structural changes are expected in the insurance market that will influence the
country’s development in the medium to long term

So far, the entry of a large number of Indian and foreign private companies has led to
greater choice in terms of products and services for Indian consumers. A growing
realisation of the benefits and importance of sophisticated insurance and reinsurance tools
has broadened the pool of potential buyers of insurance. Given this backdrop, the Indian
insurance market has experienced considerable growth since its liberalisation in 2000.
Over the next three years, the Indian insurance market is likely to see its process of
maturation accelerate. Regulatory changes in the four areas– products, market players,
distribution and reinsurance – will drive change in the Indian insurance market in the
medium term.

• Price competition has already begun to increase and is likely to continue to do so for the
next 18 to 24months.

• The practice of cross-subsidisation is likely to be phased out as risk-based pricing is

used increasingly for all products.

• As Indian insurers build a profitable portfolio, they are likely to have increased access
to the international reinsurance markets.

• Finally, rising demand for insurance is likely to be met by increased capacity as foreign
insurers look to access this growing market.

As per the recent research by Moody’s – ICRA Global Insurance, the following facts
relating to the performance of both private and public sector general insurance companies
were made.

Private Sector’s Growing Influence

The private sector has been steadily growing market share despite the fact that public
sector companies have been around for a lot longer. The private insurers enjoy
considerable operational flexibility, whereas the public sector companies have been
constrained by their traditions and inability to innovate.

Market Share – Redistribution

Due to the effectiveness of private marketing strategies, the market share of public
insurers has consistently declined. Given a faster growth rate, the market share of the
private sector is catching that of the public sector and the two will likely converge over
the medium term.

The private sector share of third party motor business was much lower in the past than
that for public firms as the former did not pursue this market because of its negative
underwriting margins. However, with the formation of the common third party motor
pool, the situation has changed. The losses related to this segment now get shared among
all the players, leaving little incentive to avoid this segment.

Fire and engineering now broadly contribute a similar proportion of overall business for
the private and public sectors. In terms of overall business, the focus has shifted towards
the retail segments of motor and health, where good growth is expected.

Operational Flexibility
The public entities lack the operational flexibility enjoyed by the private players. Their
limited capacity to innovate has impacted their ability to tailor and aggressively price
products for large corporations. The private players by contrast have focused on account-
level profitability for large corporations and have expanded their shares by cross-
subsidizing tariffed products.

Client Servicing
The public insurers have also been hampered in claims servicing by their process oriented
approach and limited operational flexibility. They have been unable to expedite claim
settlements through out-of-court negotiations since a large proportion of their claims
pertain to the third party motor segment, which is subject to adjudication by the Motor
Accident Claim Tribunal. The result is a time-consuming and involved process.
Strong Infrastructure and Systems
Private players are not hindered by their charters or legacy systems and have constructed
technologically advanced infrastructure. They started with large investments in
technology, which helped them to build robust data management systems. This
characteristic enables in turn quick and effective decision-making for pricing and claims
settlements, attributes vital to building franchises.
On the other hand, public entities have only recently upgraded their systems and have to
grapple with transition issues, such as moving from paper to paper-less systems. They are
encumbered by legacy systems and fragmented databases, and have not fully used their
past claim experiences, something which could give them a strong pricing edge in a de-
tariffed environment.

Focused Underwriting Strategy

The private players, especially during their initial years, have selectively targeted the
more profitable lines of the public sector companies for growth. They benefit from the
experiences of the public sector as well as their international joint-venture partners. They
have drawn talent from public sector companies.

Superior Claim Paying/Processing Capability

The combination of superior technology and selective underwriting has allowed the
private sector to set high standards for policyholder services, thereby differentiating
themselves from public sector insurers. The claim settlement performance of the private
sector has also been superior because of the limited amount of third party motor business
that they have underwritten. Such claims normally take a longer time to settle.

Distribution – Rise of Bancassurance

The Indian general insurance industry has historically been dominated by the agency
channel, through which 75% of total premium income is sourced. But in recent periods
other channels – for example, bancassurance, brokers, corporate agents, direct marketing
and direct sales channels -- are gaining importance. Most insurers now have tie-ups with
the banks, which act as corporate agents and are remunerated on a commission basis. For
example, ICICI Lombard sources a major portion of its business from a tie-up with ICICI
Bank. Similarly, Bajaj Allianz General Insurance Company Limited (BAIL, second
largest private player) has tie-ups with large number of banks, which contribute a big
share of its total premium income.
As of December 31 2007, 267 brokers were registered with IRDA, including 228 direct
brokers, 33 composite brokers and 6 reinsurance brokers. In a deregulated environment,
the broking community will have plenty of opportunity to become an integral part of the
insurance and risk financing process. At this time, low cost channels like tele-sales and
the internet are still not developed in India, mainly due to relatively poor knowledge
about insurance products and low internet penetration.

One conclusion is certain– the Indian non-life market is set to grow dramatically over the
next few years. The simplest forecasts suggest that premium income could double in the
next few years to reach USD11.6bn in 2010. When the structural changes above are taken
into consideration, this growth becomes exponential, with relatively slow growth in 2007
rising to rapid growth by 2010.



Traditionally, market was a physical place where buyers and sellers gathered to
exchange goods. It is also a collection of buyers and sellers who transact over a
particular product.


It is a societal process by which individual and groups obtain what they need and
want through creating, offering and freely exchanging products and services of
values with others.

Marketing research:

It is a systematic and objective study of problems pertaining to the marketing of

good and services. It may be emphasized that it is not restricted to any particular
area of marketing but is applicable to its all phases and aspects.

A product is anything that can be offered to a market to satisfy a want/need.
Products that are marketed include physical goods, Services, Experiences,
events, persons, properties, organizations, information and ideas.

A Brand is a name, term, sign, symbol, design or a combination of them

intended to identify the goods/services of one seller/group of sellers and to
differentiate them from those Of Competitors.

Distribution and its Channels:

Distribution is the process of moving goods/services form the place of production

to the marketing activities involved in the flow of goods/services from the primary
producer to ultimate consumer.

Accident and accidental

Means a sudden, unforeseen, and unexpected physical event beyond the control
of the Insured caused by external, visible and violent means.

Bodily injury

Means any accidental physical bodily harm but does not include any sickness or

Business or business purposes

Means any full or part time, permanent or temporary, activity under taken in the
premises with a view to profit or gain.


Means an act involving the unauthorized entry to or exit from the insured’s
property or attempt threat by unexpected, visible, forcible and violent means, with
the intent to commit an act of theft.

Means and includes bank of every description, post office and government


Means the following used for business or business purposes, so long as they are
owned by the insured and / or for which the insured legally responsible for
including family of insured, directors, partners and the like goods such as
furniture, stock, machinery, equipment, fixtures, fittings and interior decorations
but excluding money, jewelry, and valuables.


Means any person employed by the insured to perform certain duties for
consideration, either expressly or impliedly in the course of employment

Insured or insured’s

Means the person named in the policy as the policyholder and / or his family, and
/ or his parents, and / or directors and / or karta of HUF, and the like.

Medical expenses

Means expenses incurred on necessary on medical or surgical treatment,

services, or supplies.

Period of insurance

Means the period of time stated in the schedule for which the policy is valid.


Means insured’s proposal, the schedule, company’s covering letter to the

insured, insurance clauses, definitions, exclusions, conditions and other terms
contained here in and any endorsement attaching to or forming part hereof,
either at inception or during the period of insurance.


Means insured’s shop as stated in the schedule, which is used or occupied

mainly for business purposes by insured.


Means the schedule, and any annexure to it, attached to and forming part of this

Sum insured

Means and denotes the amount of cover available under each section as stated
in schedule or any revisions thereof based on claim settled, as stated in the
scope of cover of the policy and, where appropriate, as more particularly


1. Age of the respondents


Less than 25 11 11%
25 - 35 40 40%
35 - 45 20 20%
Above 45 29 29%
TOTAL 100 100


From the survey it was found that amongst 100 respondents

a) 11% of the respondents are less than 25 years old.

b) 40% of the respondents are between 25 and 35 years of age.
c) 20% of the respondents are between 35 and 45 years of age.
d) 29% of the respondents are more than 45 years of age.
2. Qualification of the respondents.


Graduate 52 52%
Post Graduate 29 29%
Diploma 8 8%
Other discipline 11 11%
TOTAL 100 100%


From the survey it was found that amongst 100 respondents

a) 52% of the respondents were graduate

b) 29% of the respondents were post graduate
c) 8% of the respondents were diploma
d) 10% of the respondents were other discipline
3) Occupation of the respondents


Business man 34 34%
Professionals 18 18%
Job holders 37 37%
Others 11 11%
TOTAL 100 100%


From the survey it was found that amongst 100 respondents

a) 34% of the respondents are businessmen.

b) 18% of the respondents are professionals.
c) 37% of the respondents are job holders.
d) 11% of the respondents are background.
4) Average annual income of respondents.


Up to 1 lakh 33 33%
1 lakh - 3 lakh 43 43%
3 lakh - 5 lakh 20 20%
5 lakh & above 4 4%
TOTAL 100 100%


From the survey it was found that amongst 100 respondents

a) 33% of the respondents have an average annual income up to 1

b) 43% of the respondents have an average annual income from 1
lakh to 3 lakh
c) 20% of the respondents have an average annual income from 3
lakh to 5 lakh
d) 4% of the respondents have an average annual income above 5

5) Family size of respondents

Below 5 members 50 50%
5 - 10 members 32 32%
Above 10 members 28 28%
TOTAL 100 100%


From the survey it was found that amongst 100 respondents

a) 50% of the respondents are below 5 members.

b) 32% of the respondents are between 5 to 10 members.
c) 28% of the respondents are above 10 members.

6) According to life insurance is.


Risk Coverage 10 10%
Tax Savings 3 3%
Good return 4 4%
Security 3 3%
All the above 80 80%


From the survey it was found that amongst 100 respondents

a) 10% of the respondents say risk coverage.

b) 3% of 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.

7) Awareness of ICICI Prudential life insurance


Yes 17 17%
No 83 83%
TOTAL 100 100%


From the survey it was found that amongst 100 respondents

a) 83% of the respondents say that they are aware of ICICI

Prudential life insurance co.
b) 17% of the say that they are unaware of ICICI Prudential life
insurance co

8) Awareness regarding insurance.


Yes 2 2%
No 98 98%
TOTAL 100 100%
From the survey it was found that amongst 100 respondents

a) 98% of the respondents say that they are aware of insurance.

b) Only 2% are unaware of insurance.

9) % of respondents who are under different plans of ICICI Prudential life insurance co.


Invest gain plan 41 41%
Unit gain plan 36 36%
Child gain plan 8 8%
Whole life plan 15 15%
Pension plan No No
TOTAL 100 100%



8% 41%
Invest gain plan
Unit gain plan
Child gain plan
Whole life plan
36% Pension plan


From the survey it was found that amongst 100 respondents

a) 41% of the respondents are under invest gain plan

b) 36% of the respondents are under unit gain plan
c) 8% of the respondents are child gain plan
d) 15% of the respondents are whole life plan
e) No body under pension plan

10) % of respondents benefits of choosing the particular products


Risk coverage 60 60%
Additional benefit 20 20%
Maturity date 12 12%
Sum Assured 8 8%
TOTAL 100 100%
a) 36% of the respondents say that a benefit of choosing the particular
Product is for Safety of life.
b) 20% of the respondents say that a benefit of choosing the particular
products is for additional benefit to family
c) 12% of the respondents say that a benefit of choosing the particular
products is for maturity date
d) 8% of the respondents say that a benefit of choosing the particular
products is for sum assured

11) % of disadvantages in insurance plan


Liquidity 35 35%
Lapsation 20 20%
Unable to decide premium 19 19%
High risk coverage 14 14%
Fixed Term 12 12%
TOTAL 100 100%
From the survey it was found that amongst 100 respondents

a) 35% of the respondents say that disadvantages in insurance

plan are liquidity.
b) 20% of the respondents say that disadvantages in insurance
plan are lapsation.
c) 19% of the respondents say that disadvantages in insurance
plan is unable decide premium.
d) 14% of the respondents say that disadvantages in insurance
plan are high risk coverage at high premium.
e) 12% of the respondents say that disadvantages in insurance
plan is fixed term

12) % of respondents who want to invest in these different avenues.


Recurring Deposit 40 40%
Equity Fund 25 25%
Balanced Fund 10 10%
Mutual Fund 11 11%
Debt Fund 5 5%
Cash Fund 9 9%
TOTAL 100 100%

From the survey it was found amongst 100 respondents

a) 40% of respondents say that they want to invest in R.D

b) 25% of respondents say that they want to invest in equity
c) 10% of respondents say that they want to invest in balanced fund
d) 11% of respondents say that they want to invest in mutual fund
e) 5% of respondents say that they want to invest in debt market
f) 9% of respondents say that they want to invest in cash

On an analysis and evaluation of the data collected from the respondents the
following findings were found.

 Before establishment of private concerns the share of LIC was 22% hence there is
a wide scope for private concerns to enter in to market.
 Total 100 respondents have been approached out of which 75 are the potential
respondents who have shown interest for investment and finance plan
 Above 20% of respondents are shown interest for investment and financial plan
 About 33.33% of respondents are not interest to give their personal records.
 About 12.67% of respondents have already been covered by other insurance
 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 ICICI


Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI invested, in
terms of work force, in terms of market share, in terms of no. of customers. All these
positive stands of the company place at the number one position. On second aspect
whatever amount of money ICICI Prudential save, can be used to increase the no. of
policies, which will helpful to increase the market share of the company. Since the
customers think about the companies in the industry, when they invest money in the life
insurance industry. So it’s necessary to increase the market share of the company. There
are some recommendations.

 Open some more branches in semi urban and rural area.

ICICI Prudential has almost its branches in urban area or metros. So in order to
increase the no. of customer, ICICI Prudential should increase the approach
towards potential customers. For that it has to increase the branches in the semi
urban cities like C, D grade cities. And the rural marketing is the best option for
ICICI Prudential to increase its base in the market

 Improve customer services.

In order to take the advantage of being industry leader in private sector, ICICI
Prudential has to improve its customer services. According to my experience in
the company, a good number of customers forget to pay their premium at time so
it causes a big loss to the company. ICICI Prudential has already collaborated with
the ICICI bank for its Bancassurance facility and then can include another feature
in it. ICICI bank can offer a bank account with the life insurance policy in which
an ATM card will be provided. This card will have all the information regarding
the policy as like future premium payment dates, payment made, money value of
the policy at that date, value of the unit linked plan and all other information what
the customer want. This will help the customer to pay premium on time and save
their losses. This will be mutually helpful for both sister companies, ICICI bank
will get new account and ICICI prudential will be able to more efficient services
to their customers.

 Bring some unit linked life insurance plans in the market.

Being a market leader doesn’t ensure the leadership in the future. Since after
increment in FDI from 26% to 49% all player will have the opportunity to capture
the market share. So in order to maintain its position ICICI Prudential should

-Introduce some new market linked insurance plan, which will give a competitive
advantage to the ICICI Prudential against its competitors.

 Trained the financial advisors more efficiently.

In the changed scenario, more efficient training will be needed, so ICICI
Prudential should provide good and efficient training to their financial advisors.
Because they are the one who interact directly with the customers. So good
training will give them the right way to deal with the potential customers.

It is concluded from the survey that all respondents are aware about office
insurance and they think they need insurance for their offices.

It is concluded from the survey that customers preparing only Government

companies for their office insurance so create trust in costumers about private
insurance companies by rendering good services like proper claims, good
response to costumer queries and maintaining good relationship with costumers.

Most of customers are using only Fire and electronic equipment insurance
policies so marketing executives and agents maintain good communication with
the customers to create the awareness of the policies like Mediclaim, burglary
and GPA.

Dear Sir/Madam,
I am a student of Visvesvarya Technological University Belgaum, conducting a
ICICI Prudential LIFE INSURANCE, IN Hyderabad CITY”. I request you to fill this
questionnaire & I assure that this data will be used only for study purpose & it will be
kept confidential.

1. Name _________________________________

2. Address _________________________________
3. Age

a. Less than 25 c. 35-45

b. 25 – 35 d. 45 and above

4. Qualification

a. Graduate c. Diploma
b. Postgraduate d. Other discipline

5. Occupation

a. Business c. Job holder

b. Professional d. Other

6. What is your average annual income?

a. Up to 1 lakh
b. 1 lakh to 3 lakhs
c. 3 lakhs to 5 lakhs
d. 5 lakhs and more

7. Your family size

a. Below 5 members
b. 5 – 10 members
c. Above 10 members
7. According to you life insurance is,
a. A tax saving plan
b. A saving scheme with good return
c. A financial security for the family
d. Risk coverage
e. All the above

8. Have you taken any life insurance product of ICICI Prudential Life insurance?


If yes
9. Which are in these?
a. Unit gain plan
b. Invest gain plan
c. Whole life plan
d. Children plan
e. Pension plan
f. Others __________________

10. Are you aware of the benefits in your policy?

Yes No

If yes what are they?

 Sum assured
 Additional benefits
 Maturity date
 Risk coverage

11. According to you what are the disadvantages in an insurance plan?

 Lapsation
 Liquidity
 Fixed term
 Unable to decide your premium
 Unable to decide the sum assured
 High risk coverage at high premiums
 Other disadvantages
12. In which of the following would you like to invest?
 Equity fund
 Debt fund
 Balanced fund
 Cash fund
 Mutual fund
 Recurring deposits

13. Any suggestion for ICICI Prudential Life Insurance


Thank you for sparing your valuable time


 Marketing Management by Philip Kotler, Pearson Education 2nd ed.

 Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8th ed.
 IRDA Journal
 ICICI Prudential Company magazines
 Newspaper and Business magazines

 insurance industry