Beruflich Dokumente
Kultur Dokumente
Undertaken at
ICICI Prudential Life Insurance Co. Ltd.
On
“comparative analysis of ULIPs of ICICI Prudential”
Submitted in Partial Fulfillment
Of the Requirement for the
Award of the Degree of
1
Certificate
This is to certify that Mr. Adil Bashir Sheikh has completed his Summer Training
from 12th of May 2010 to 2nd of July 2010, during which he was assigned the task
of “Unit linked Insurance plans offered by ICICI Prudential and its comparison
with its competitors” which he has successfully completed and the same is
It is further certified that the project report submitted by Adil Bashir Sheikh
reflects his original work and on the work assigned to him for the Summer Training
and that the present project report has not been submitted elsewhere for award of
2
DECLARATION
I, Adil Bashir Sheikh, a bonafide student of MBA (Full Time) Programme at the
IMED, Pune, hereby declare that I have undergone the Summer Training at ICICI
Prudential Life Insurance Co. Ltd. under the supervision of Mr. H.G Abhyankar on
I also declare that the present project report is based on the above summer training
and is my original work. The content of this project report has not been submitted to
any other university or institute either in part or in full for the award of any degree,
diploma or fellowship.
Further, I assign the right to the university, subject to the permission from the
organisation concerned, use the information and contents of this project to develop
cases, case lets, case leads, and papers for publication and/or for use in teaching.
3
4
ACKNOWLEDGEMENT
It is with immense satisfaction that, I am completing my Summer Project Report, I therefore, would
like to wait for few moments and thank IMED, BVU, for encouraging me to take up my Summer
Project in Marketing Sector. I am also very thankful to all my faculty members for their extensive
support by imparting in us the practical approach of corporate sector, and their valuable backing of
getting ourselves involved with the functioning of the company rather than just involve us in our
projects.
I would also wish to acknowledge my profound gratitude to ICICI Prudential Life Insurance Co.
Ltd. who allowed me to do Summer Training and helped me in the completion of this project. I am
extremely grateful to all the concerned employees for their full support and guidance despite their
I would like to express my special and sincere thanks to Mr. Yasir Ahmad (Agency Manager) who
happened to be my industry guide for rendering valuable guidance and necessary suggestions in
Last but not the least; I shall fail in my duty, if I don’t thank all those concerned people who have
directly or indirectly contributed in the completion of this entire Summer Internship Project.
5
Adil Sheikh
2 INTRODUCTION, AN OVERVIEW
OF INSURANCE SECTOR IN
INDIA
2.1 What is insurance 13
2.2 Need for insurance 13
2.3 History of insurance 14
2.4 Life insurance in India
2.41 Introduction 15
2.42 Brief History 16
3 COMPANY PROFILE
3.1 Entry of private players 18
3.2 The Company
3.21 Distribution 20
6
3.22 Our presence 20
3.23 About Promoters 20
3.3 Competitors of ICICI
3.31 BAJAJ ALLIANZ an Overview 21
3.32 LIFE INSURANCE CONPANY an Overview 22
RELIANCE LIFE INSURANCE an Overview 22
3.33
3.4 Policies
3.41 ICICI Prudential 22
3.42 BAJAZ ALLIANZ 23
3.43 LIFE INSURANCE COMPANY 24
3.44 RELAINCE LIFE INSURANCE 24
5 RESEARCH METHODOLOGY
5.1 Type of Research 31
5.2 Sampling Design 31
5.3 Sampling Size 31
5.4 Sampling Distribution 31
5.5 Actual Data Collection 31
5.6 Other Software used for data Analysis 32
6 DATA PRESENTATION,
ANALYSIS AND
INTERPRETATION
7
6(a) comparative analysis of ULIPs of 34
ICICI Prudential
6(b) Details of Minimum and Maximum Entry 35
Age
6(c) Details of the minimum premium 36
7.2 Conclusion 62
7.3 Suggestions 63
BIBLIOGRAPHY 64
QUESTIONNAIRE 65-68
9
Chapter 1
SYNOPSIS
10
TITLE OF THE STUDY:
1.1 INTRODUCTION
Insurance is legal contract that protects people from the financial costs that result from loss
of life, loss of health, lawsuits, or property damage. Insurance provides a means for
individuals and societies to cope with some of the risks faced in everyday life. People
Almost everyone living in modern, industrialized countries buys insurance. For instance,
laws in most states require people who own a car to buy insurance before driving it on public
roads. Lenders require anyone who finances the purchase of a home or car with borrowed
money to insure that property. Business partners take out life insurance on each other to make
sure the business will succeed even if one of the partners dies.
in the world, managing assets more than worth Rs 9300 crores. ICICI Prudential Life
Insurance, is the first in India to receive a National Insurer Financial Strength rating of AAA
11
Private insurance companies are in the infancy stage. The impact on the insurance market
is tangible. The marketing strategies of these private operators have forced LIC to change its
gears. The market is more aware and realistic about investment and returns from insurance
products. Insurance business is more transparent as compared to the past. In this background
this study tries to analyze the investor’s behavior towards insurance products in general and
Descriptive Research is used for the study as it helps fact finding through surveys and
enquiries. The data is collected through the primary source, which include questionnaires
personal interview and telephonic interview. Secondary data has been collected from internet
Stratified random sampling method is used for sampling design in which customers are
randomly selected.
12
1.43 Sampling Size
The sampling size in this research is restricted to 100 and samples were collected in different
areas of Sopore.
The sample consists of all income groups which include employees, students ,
Microsoft Word, Microsoft Excel for showing the graphs and pie charts for the purpose
An underlying assumption for the entire project is that the details and the feedback received
from the population is true.
Sample of only 100 respondents is selected from the population.
13
Some of the respondents were not ready to fill the questionnaires and some of them were not
ready to come out openly.
14
Chapter 2
INTRODUCTION,
AN OVERVIEW OF INSURANCE
SECTOR IN INDIA.
15
2.1 WHAT IS INSURANCE?
The fortunate a many who are exposed to same or similar risk shares loss of the unfortunate
few.
Insurance in this context is a mechanism that helps to reduce the adverse consequences due
to loss of assets.
The possibility of damage to assets caused by any peril is the risk that the asset is exposed
to.
Risk means the possibility of loss or damage that may or may not happen.
It is because of the uncertainty about the risk that insurance becomes important.
Human life is an income generating asset that can be lost in case of early death or disability
caused by an accident.
Insurance does not protect the assets but only compensates the economic or financial loss.
Basically, insurance covers tangible assets but the concept can be extended to intangibles
also.
People are exposed to risks the consequences of which are difficult to be borne by an
individual. The purpose of insurance is to protect the income of individual and provide
financial security to his family dependent on his income in the event of his premature death.
16
The individual himself also needs financial security for the old age or on his becoming
No person should be in a position to make the risk happen or occur and take unfair advantage.
Insurance covers the risk of dying too early or living too long.
The origin of insurance is very old. The time when we were not even born; man has sought
some of protection from the nature. The basic urge in man to secure himself against any form
Historians believe insurance first developed in summer and Babylonia (both in what
is now Iraq) beginning in about 3000BC. The merchants and traders of these societies
transferred and pooled their money to protect themselves from losses of cargo to thieves and
pirates.
In the 18th century BC, Babylonian king Hammurabi developed a code of law, known
as the code of Hammurabi, which codified many specific rules governing the practices of
early risk-sharing activities. For instance, the code dictated that traders had to repay
merchants who financed trading voyages unless thieves stole goods in transit, in which case
Seagoing merchants from Phoenicia (in and around present-day Lebanon) began
using a system of insurance known as bottom about 1200 BC. In this system. Backer’s loaned
money to merchants to finance voyages. Merchants offered their ships (the hull was known
When a trip succeeded, the merchant would pay the trip’s backer the original loan plus
interest, the equivalent of a premium. If a shop went down on its voyage, the trip’s backer
17
would cancel the merchant’s loan. Forms of insurance resembling bottomry had spread to
In the last several centuries BC the societies of Greece and Rome developed some of
the earliest systems of life insurance. Greek and roman citizens formed benevolent societies;
organizations in which members paid dues that went toward paying for the burial of members
who died. Sometimes these societies also paid for the living expenses of deceased members’
families. During the Middle Ages (5th to 15th centuries AD), workers joined together in craft.
Many guilds, particularly in England and Italy, provided benefits to workers and their
2.41 INTRODUCTION:
With such 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 per cent annually. Together with banking services, it adds about 7 percent to
the country’s GDP. In spite of all this growth the 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 the government in 1993 to examine
the various aspects of the industry constituted “Malhotra Committee”. The key element of
the reform process was participation of overseas insurance companies with 26% capital.
Creating a more efficient and competitive financial system suitable for the requirements of
18
the economy was the main idea behind this reform. Since then the insurance industry has
The competition LIC started facing from these companies were threatening to the existence
of LIC. Since the liberalization of the industry the insurance industry has never looked back
and today stand as the 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
The insurance came to India from UK; with the establishment of the Oriental Life insurance
Corporation in 1818. The Indian life insurance company act 1912 was the first statutory body
that started to regulate the life insurance business in India. By 1956 about 154 Indian, 16
foreign and 75 provident firms were been established in Indian. Then the central government
took over these companies and as a result the LIC was formed. Since then LIC has worked
towards spreading life insurance and building a wide network across the length and the breath
of the country.
After the liberalization the entrance of foreign players has added to the competition in market.
The general insurance business in India, on the other hand, can trace its roots to the triton
insurance company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British. In 1972The General Insurance Business (Nationalization) Act, 1972
nationalized the general insurance business in India with effect from 1st January 1973. It was
after this that 107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the new India Assurance Company Ltd. GIC incorporated as a
company.
19
Chapter 3
COMPANY PROFILE
20
CORPORATE INTRODUCTION ICICI PRUDENTIAL LIFE
INSURANCE
3.1 Entry of Private Players
The introduction of private players in the industry has added to the colors in the dull industry.
The initiatives taken by the private players are very competitive and have given immense
competition to the on time monopoly of the market LIC. Since the advent of the private
players in the market the industry has seen new and innovative steps taken by the players in
this sector. The new players have improved the service quality of the insurance..
The following companies are present in the Life Insurance Industry in India.
21
3.2 The Company
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, A premier
financial powerhouse, and prudential pica leading international financial services group
headquartered in the United Kingdom. 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).
ICICI Prudential’s equity base stands at Rs 1185 crore with ICICI Bank and Prudential and
Prudential plc holding 74% and 26% stake respectively. For the past five years, ICICI
Prudential has retained its position as the No. 1 private life insurer in the country, with a wide
range of flexible products that meet the needs of the Indian customer at every step in life. In
the first quartet of financial year 2006-07, we have crossed a new milestone of insuring the
lives of more than 2.5 million policy holders.
ICICI Prudential Life Insurance is the first in India to receive a National Insurer Financial
Strength rating of AAA (Ind) by Fitch Ratings. This rating is determined after a thorough
evaluation of the company’s financial processes, risk management framework, product mix,
market share etc. After a thorough evaluation, Fitch has assigned us rating reflecting the
highest creditworthiness. Over the past five years, we have paid over 2,100 claims amounting
to more than Rs 26 crore and taken several steps to assure customers of a quick and smooth
claims process. We have a record of settling 92% of claims received within eight working
days from the date of receiving the last requirement. The AAA rating also reflects the ongoing
operational and capital support that ICICI Prudential receives from its shareholders.
ICICI Prudential Assets under management crosses 9300 crores mark: Again we are the no.
1 among the private Life Insurers to achieve this milestone.
22
We have once again maintained our leadership position with a 32% market share amongst
the private Life Insurance Companies.
3.21 Distribution
ICICI Prudential has one of the largest distribution networks amongst private life insurers
in India, having commenced operations in 95 cities and towns, with 113 branches and 20
spoke branches. We have seven bancas surance tie-ups, having agreements with ICICI Bank,
Federal Bank, south Indian Bank, Bank of India, Lord Krishna Bank and some Co-operative
banks, as well as over 150 corporate agents and brokers. We have also tied up with NGOs,
MFIs and corporate for the distribution of rural policies as well as organizations like Dhan
for distribution of Salaam Zindagi, a policy for the socially and economically
underprivileged sections of society.
September ,2005. ICICI Bank offers a wide range of banking and financial services to
corporate and retail customers. This is done through a variety of delivery channels, through
its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. ICICI bank is a leading player in the retail
banking market and has over 13 million retail customer accounts. The Bank has a network of
23
Established in London in 1848 , Prudential plc , through its business in the UK and Asia,
provides retail financial services products and services to more than 16 million customers ,
policyholder and unit holders worldwide. As of September 30, 2005, the company had over
$ 180 billion in funds under management. Prudential has brought to market an integrated
range of financial services products that now includes life insurance ,pensions , mutual funds
, banking , investment management and general insurance . In Asia , Prudential is the leading
European Life insurance company with a vast network of 24 life and mutual fund operations
in twelve countries – China , Hong Kong , India , Indonesia Japan , Korea , Malaysia , the
Bajaj Allianz insurance company limited is a union between Allianz AG, one of the world’s
largest insurance companies and Bajaj Auto one of the biggest 2-& 3-wheeler manufactures
in the world.
Allianz AG is a leading insurance conglomerate globally and the largest asset manager in the
world, managing assets worth over 996 billion Euros (Rs.53, 64,456 Crores). Allianz AG has
115 years of financial experience in over 70 countries. Bajaj Auto is the most trusted name
in the Indian marker for over 55years.The Bajaj Allianz Life Insurance Co. Ltd. has been
from 4 years since this company has established its roots in India. This company was
incorporated on 12th March, 2001 and the company received IRDA certification on 3rd
August, 2001.
The Bajaj Allianz Life Insurance Co. Ltd., customer delight is there guiding principle.
24
supported by the best technology is there business philosophy. And the punch line of the
YOUR NEEDS”.
Life Insurance Corporation of India is the largest life Insurance company in India and also
the country’s largest investor. It is fully owned by the government of India. It also funds close
to 24.6% of the Indian government’s expenses. It has assets estimated of 8 trillion rupees. It
Headquartered in Mumbai, which is considered the financial capital of India . The life
insurance corporation of India currently has 8 zonal offices and 101 divisional offices located
in different parts of India, at least 2048 branches located in different cities and a town of
India along with satellite offices attached to about some 50 branches and has a network of
around 1.2 million agents for soliciting life insurance business from the public.
Reliance life Insurance company limited, a part of Reliance – Anil Dhirubhai Ambani
Group, Reliance capital is one of India’s leading private sector financial services companies,
which ranks among the top 3 private sector financial services and banking companies.
Reliance Life Insurance is not only one of India’s fastest growing life Insurance companies,
but also counts among the top 4 private sector insurance. In just 2 years, the company has
Reliance Life Insurance Company launched around 600 branches in 10 months taking the
3.4 POLICIES
25
3.41a Traditional Insurance Plans
This plan helps the customers to save tax and earn more interest the various options are…
ICICI Pru Pure Protect - Most cost effective Life Insurance Policy and is as affordable as
This option is helpful for retired persons – this plan helps the retired person to live worry-
free life.
ICICI Pru Life Time Super Pension – regular Premium, unit-linked pension policy
ICICI Pru LifeLink Super Pension – Single premium, unit-linked pension policy.
ICICI Pru PremiumLife Pension – Limited premium paying unit linked pension Policy.
ICICI Pru LifeStage Pension – No premium allocation charge for regular premiums which
Elite Pension - Limited, six year term and three year premium payment term pension plan.
Endowment
Life Time Care –A whole life plan , which provides survival benefits at the age of 80,
thereby making sure you are financially secure at the time when you need it the most.
Invest Gain
Save Care
26
3.42b MONEY BACK
Cash Gain – A money back plan which guarantees 125% payout and bonuses. 5 easy payouts
Jeevan Anurag- It is with profits plan specifically designed to take care of the educational
needs of children. The plan can be taken by a parent on his or her own life.
Jeevan Kishore
Child career Plan
Child Fortune Plus
Jeevan Nidhi
New Jeevan Dhara-1
In today’s uncertain world, there could be calamity at every step of the life. It is up to you
to ensure that your family stays protected always.
Reliance Protection Plans helps you do exactly the same. You have a wide range of options
to choose a plan from. Right from limited period plans to lifetime protection plans, you can
opt for the one that suits your lifestyle. Various plans are :
Reliance Term Plan _ Reliance Term Plan is a pure life insurance plan that offers you
comprehensive and affordable coverage for a limited period of time to suit your needs.
27
Reliance Simple Term Plan
Reliance Special Term Plan
Reliance Endowment plan
28
Chapter 4
29
4.1 Unit Link Insurance Plans
ULIPS are a category of goal based financial solutions that combine the safety of insurance
protection with wealth creation opportunities. In ULIPS, a part of investment goes towards
providing you life cover. The residual portion of the ULIP is invested in a fund which in turn
invests in stocks or bonds; the value of investments alters with the performance of underlying
fund opted by you.
from ULIP, the insurer deducts some portion of ULIP premium upfront. This portion is
known as Premium allocation change, and varies from product to product. The rest of
Competitors
Offering insurance plans with flexibility and tax benefits. The various options for the
ICICI Pru Life Stage RP : Offers a wide range opf benefits to policyholders ,
ICICI Pru Lifestage Assure: Offers a clear advantage by providing guaranteed returns
ICICI Pru LifeTime Gold :Regular premium unit linked plan & offers attractive additional
ICICI Pru PremierLife Gold:Offers short term premium payment terms and provides
A Unique plan with the combination of protection and prospects of earning attractive
returns with investments in various mix of securities that makes a perfect plan to last you a
lifetime of prosperity and happiness.
High Allocation upto 85%.Guaranteed Life Cover with a choice of 7 Investment Funds.
31
Unit plans are investment plans for those who realize the worth of hard-earned money. These
plans help you see your savings yield rich benefits and help you save tax even if you don’t
have consistent income .Various plans are:
Market Plus 1: This is a unit linked pension plan wherein the pension is payable after a
specified period. Though primarily a pension product, the plan has many attractive features
and options which make it an ideal retirement solution for the future.
Profit Plus
Fortune Plus
Money Plus
The plan allows you to experience the joys of life and provide for your family’s needs.
Under this plan the investment risk in the investment portfolio is borne by the policyholder.
This is a regular premium, unit linked savings plan. The plan offers the twin benefit of
insurance cover along with savings, by investing in market linked securities.
32
Chapter 5
RESEARCH METHODOLOGY
33
5.1 Type of Research
Descriptive Research is used for the study as it helps fact finding through surveys and
enquiries. The data is collected through the primary source, which include questionnaires
personal interview and telephonic interview. Secondary data has been collected from internet
Stratified random sampling method is used for sampling design in which customers are
randomly selected.
The sampling size in this research is restricted to 100 and samples were collected in different
areas of Sopore.
The sample consists of all income groups which include employees, students,
34
Referring different books and previous project reports in college library.
Microsoft Word , Microsoft Excel for showing the graphs and pie charts for the purpose of
35
Chapter 6
36
“comparative analysis of ULIPs of ICICI Prudential”
UNITLINK PRODUCTS
6(a) Table showing the Unit Link Products of ICICI Prudential Life Insurance and it’s
comparison with its competitors.
Table No. 1:
37
6(b) Table showing the details of Minimum and Maximum Entry Age.
Chart no.1
80
60
Age in Years
Min Age
40
Max Age
20
0
1 2 3 4
Company Names
Analysis:
From the above data it is observed that a person with an age of 0 years can take this policy
in ICICI Prudential and Bajaj Allianz, in LIC it is 12 years and Reliance Life Insurance entry
age is 30 days.
In ICICI Prudential and Reliance Life Insurance a person can take policy up to the age of 65
years while in Bajaj Allianz 60 years and LIC 55 years.
Inference:
From the above data it’s clear the LIC Bimaplus policy is better than the other insurance
companies on the basis of entry age.
Reliance Life insurance is better than all the insurance companies on the basis of maximum
entry age in order to hold the policy for 65 years.
38
6(c) Table showing the details of the minimum premium
ICICI
Particular LIC Reliance Life
Prudential Bajaj Allianz
Insurance
Min Premium 20,000 5,000 10,000 10,000
Chart no.2
ICICI Prudential
10000
LIC
20000
Analysis:
From the above table it is clear that the lowest premium is paid by LIC customers, maximum
premium paid in ICICI Prudential. So most of the customers are ready to pay High premium,
but the Sopore market prefer a policy with low premium.
Inference:
From the above data it is clear that the LIC policy is better than the policies of other insurance
companies in comparison with the minimum premium.
39
6(d) Table showing the details of the single premium.
Chart no.3
Chart Showing the details of the
Single Premium
60,000
50,000
Premium in Rs.
40,000
25,000 25,000 25,000 Single Premium
20,000
0
ICICI LIC Bajaj Reliance
Prudential Allianz Life
Insurance
Company Names
Analysis:
The above data shows that the policy holder can take the single premium of Rs.25, 000 in
ICICI Prudential, Bajaj Allianz and Reliance Life Insurance but in LIC it is Rs. 50,000.
Inference:
From the above data it is clear that the ICICI Prudential, Bajaj Allianz and Reliance Life
Insurance policy is better than LIC when comparing the entry age.
40
6(e) Table showing the details of the switching facility in single
premium.
Chart no.4
5
4
4
3
3
Times
2 Switches
2
1
1
0
ICICI LIC Bajaj Allianz Reliance Life
Prudential Insurance
Company Names
41
Analysis:
From the above table it is clear that maximum switching facilities provided by the company
is ICICI. If any policyholders want to switch more times as mentioned above than they
have to pay some charges as per the company rules and regulations.
Inference:
From the above data it’s clear that ICICI Prudential policy good in comparison to other
insurance sector on the basis of switching facilities.
Age No. Of % Of
(Years) Respondents Respondents
12 – 23 08 08%
24 – 34 76 76%
35 – 44 04 04%
45 – 54 12 12%
Total 100 100%
Chart no.5
Respondents Age
80%
% of Respondents
60%
40% 76%
20%
8% 4% 12%
0%
12 – 23 24 – 34 35 – 44 45 – 54
Respondents Age
42
Analysis:
The above table reveals that from the sample size 100, 76% of respondents are 24 – 34 Years,
12% of respondents are 45 – 54 Years, 8% of respondents are 12 – 23 Years, and remaining
4% respondents are 35 – 44 Years. So the 76% of respondents will affect the total survey.
Inference:
From the above table it is clear that the respondents who are between the ages of 24 to 34
insure their life.
43
6(g) PROFESSION OF THE RESPONDENTS
Chart no.6
100%
% of Respondents
84%
80%
60%
40%
20% 12%
4%
0%
Self Employed Salaried Other
Profession
Analysis:
From the above table it is clear that among 100% of the sample population, 84% are from
salaried class, 12% from self employed and 4% me time only 4% include other categories
such as Financial Advisors, Housewives, etc .So the opinion of the salaried people will affect
the total survey.
Inference:
The above table shows that most of the salaried employed have insured in various insurance
companies.
44
6(h) RESPONDENTS MONTHLY INCOME
Chart no.7
Analysis:
The above table shows that 40% of the respondents who are earning Rs.15001 – 20,000 &
Rs.25001 & Above invest in insurance companies, 16% in the income group of Rs.10000 –
15,000 and only 4% in the income group of Rs.20001 – 25000 .
Inference:
The above table shows that respondents who are earning Rs.15, 001 to 20,000 and 25, 0001 and
above insure their life in various insurance companies.
45
6(i) LIFE COVERAGE OF THE RESPONDENT
Chart no.8
Life Coverage Of The Respondents
4%
Yes
No
96%
Analysis:
It is quite evident that around 96% of the total population insure their life and only 4% are
yet to insure. But by research it has proved that “Only 20% of the Indian population has
been insured”, so there is good opportunity for the insurance companies to exploit the
market.
Inference:
The above table shows that 96% of sample populations insure their life with various insurance
companies.
46
6(j) RESPONDENT INSURER
Chart no.9
Respondents Insured
21%
29% ICICI
LIC
8%
Bajaj Allianz
Other
42%
Analysis:
The above table reveals that 42% of population insure in Government Sector and 58% of
population with Private Sector. We can easily infer that majority of the population trusts
private sector as there is maximum growth for the Private Sector in comparison with Govt.
Sector. In private sector 29% of population is covered by ICICI Prudential Life Insurance ,
8% by Bajaj Allianz, and 21% is covered by other insurance companies (i.e. Reliance Life
Insurance, MetLife Insurance etc.).
Inference:
From the above table it is clear that from the sample population maximum people are
holding LIC policy.
47
6(k) AWARENESS ABOUT POLICY FUNCTIONING
Awareness No. of % of
Respondents Respondents
Yes 88 88%
No 12 12%
Total 100 100%
Chart no.10
No, 12%
Yes, 88%
Analysis:
The above table shows that 88% of population know the policy functioning and 12% have
no knowledge about the policy functioning.
Inference:
From the above table it is clear that most of the policy holders know the policy functioning.
48
6(l) TYPE OF INSURANCE POLICY HOLDING
Chart no.11
53% 52%
52%
51%
Respondents
50%
% of
49% 48%
48%
47%
46%
Traditional ULIP
Type of Policy
Analysis:
The above table reveals that after the launching of ULIP like an investment cum insurance
product 52% of the sample population have opted for the policy .Thus, ULIP is better than
any insurance product in present market. So the company can exploit it in a better way.
Inference:
The above table shows that most of the sample population know about the ULIP and are
holding ULIP plan in comparison with Traditional plan.
49
6(m) ULIP FEATURES PROVIDED BY EXISTING
COMPANIES TO THE RESPONDENTS.
Chart no.12
5%
High Returns
29%
23% Tax Benefits
Insurance Cover
Analysis:
The above table shows that 29% of sample population are getting the High Returns from their
existing insurer, 25% are getting Insurance Cover from their existing insurer, 23% are getting
Partial & full Withdrawals Facilities from their insurer , 18% are getting Tax Benefit , and only
5% are getting other benefits like Flexibility, Liquidity, Savings etc.,
Inference:
The above table shows that most of them are holding a policy or opted to insure because of High
Return on their investment.
50
6(n) TYPE OF INVESTMENT PREFERRED IN ULIP
Chart no.13
Investment preferred in ULIP
9%
0%
R.I.C.H.
18%
Flexi Growth
Flexi Balanced
Balancer
Protector
Preserver
73%
Analysis:
It is quite clear that around 73% of the sample population like to invest in R.I.C.H. which is
an Equity Fund Investment option. So ULIP like Equity Fund Investment has a good
opportunity in the future. 18 % of sample population invests in Flexi Growth, and only 9%
invest in Preserver.
Inference:
The above table shows that most of the sample population like to opt for R.I.C.H. which is
an Equity Fund invest option.
51
6(o) TRADITIONAL PLAN RESPONDENT.
Chart no.14
5%
Life Guard SP
Cash Bak
45%
40% Save n Protect
Life Guard ROP
Smart Kid
5% 5%
Analysis:
The above table of traditional plan reflects 45% of sample population invest in Smart Kid and
40% invest in Cash Bak policy.
Inference:
The above table shows that most of the respondents who have taken traditional policy opted for
Smart Kid .
52
6(p) FACTORS INFLUENCING TO INVEST IN INSURANCE
PLAN
Investment Option No. of Respondents % of Respondents
Premium Payment Mode 6 6%
Partial & Full Withdrawals 10 10%
Tax Benefit 24 24%
Life Risk Cover 33 33%
High Return 27 27%
Total 100 100%
Chart no.15
Analysis:
The above table reveals that around 33% of sample population are motivated to invest because of
Life Risk Coverage , 27% invest because of High Returns , 24% because of Tax Benefit , 10%
because of Partial and Full Withdrawal facility , and only 6% of sample population are motivated
because of Premium Payment Mode
Inference:
The above table shows that the main factor for the sample population to invest on the insurance
plan is Life Risk Coverage to secure their family in future if any untoward happen.
53
6(q) FACTORS INFLUENCING THE RESPONDENTS TO
CONTINUE THE SERVICES OFFERED BY THEIR EXISTING
INSURER.
Chart no.16
Customized Products
17% 13%
High Returns
8%
Comprehensive
Coverage
23% Customer Care
25%
Insurance Cover
8% 6%
All the Above Factors
Analysis:
We can infer that 25% of sample population are continuing their service because of High
Returns , 23% because of Insurance Cover , 17 % because of All the factors like Brand
Image, Customized Products , High Returns , Comprehensive coverage, Customer Care,
Insurance Cover, 13% because of Brand Image, 8% because of customized Products &
Customer Care, and only 6% because of comprehensive Coverage.
Inference:
The above table shows that the main factor for the sample population to continue their service
offered by various insurance companies is High Returns on their investment.
54
6(r) SATISFACTION LEVEL OF INSURANCE CUSTOMERS
Chart no.17
Satisfaction Level on Higher Returns
25%
35% Extremely Good
Good
Average
Below Average
Inadequate
20%
5%
15%
Analysis:
The above table shows the satisfaction level on High Return . Here 35% of sample population are
rated in the scaling of Extremely Good , 5% Good , 15% Average , 20% Below Average , and
remaining 25% as inadequate . So from the above interpretation we can conclude that most of the
sample population are satisfied with their High Returns in the rating scale of Extremely Good.
Inference
The above table shows that 35% of sample population responded satisfaction level as Extremely
Good on the factor of High Return.
55
B. SATISFACTION LEVEL ON TAX BENEFIT.
Chart no.18
Tax Benefits
29%
35% Extremely Good
Good
Average
Below Average
Inadequate
6%
24%
6%
Analysis:
The above table shows the satisfaction level on Tax Benefit .Here 35% of sample population
respond in the scaling of Extremely Good , 6% Good , 6% Average , 24% below average , and
29% inadequate .
Inference:
The above table shows that 35% of sample population responded satisfaction level as Extremely
Good on the factor of Tax Benefit.
56
C. SATISFACTION LEVEL ON INSURANCE COVER
Chart no.19
Insurance Cover
28%
Extremely Good
39%
Good
Average
Below Average
11% Inadequate
11% 11%
Analysis:
The above table shows the satisfaction level on Insurance Cover. Here 28%of sample population
responded in the scaling of Extremely Good, 11% Good , 11% Average , 11% Below Average,
and for remaining 39% inadequate . So from the above interpretation we can conclude that most
of the sample population are not satisfied with Insurance Cover.
Inference:
The table shows that 39% of sample population are not satisfied on the factor of their Insurance
Coverage.
57
D. SATISFACTION LEVEL ON PARTIAL & FULL WITHDRAWAL
Chart no.20
13%
25% Extremely Good
Good
Average
31% 6%
Below Average
Inadequate
25%
Analysis:
The above table shows the satisfaction level on Partial & Full Withdrawal . Here 25% of sample
population responded in the scaling of Extremely Good 6% Good, 25% average , 31% below
average , only 13% as inadequate . The interpretation shows that most of sample population have
satisfaction level below average on the factor of Partial & Full Withdrawal.
Inference:
The table shows 31%of sample population responded satisfaction level as Below Average on the
factor of their Partial and Full withdrawal facility.
58
6(s) RESPONDENT WANT TO INSURE THEIR LIFE THOSE
WHO ARE NOT INSURED.
Chart no.21
No
40%
Yes
60%
Analysis:
The above table shows that 60% of sample population insure their life with different insurance
companies and 40% have not insured their life . So it clearly shows that their is a demand for
insurance products to exploit in the market.
Inference:
It is clear that 40% of sample population still have to insure their life and there is a huge
market for insurance companies to explore .
59
6(t) RESPONDENTS READY TO INSURE IN ICICI Prudential
Life Insurance.
Chart no.22
42% Yes
No
58%
Analysis:
The above interpretation shows that 42% of sample population promised to insure their life
with ICICI Prudential and remaining 58% are not interested to invest with ICICI 0Prudential.
Thus, the company has to create the awareness among the masses in the market in order to
increase the sales.
Inference:
It is clear that 42% of sample population is interested to insure the life with ICICI
Prudential Life Insurance.
60
6(u) RESPONDENTS READY TO INVEST IN THE ULIP OF
ICICI Prudential
Chart no.23
40%
Yes
No
60%
Analysis:
The above interpretation shows that 40% of sample population is ready to insure their life
with ULIP of ICICI Prudential and remaining 60% are not ready to invest with ULIP of ICICI
Prudential. It is clear that the company has to create the awareness about the ULIP in the
market in order to increase the sales.
Inference:
The table shows that 40% of sample population is ready to invest on ULIP of ICICI
Prudential.
61
6(v) RESPONDENTS READY TO TAKE AN INVEST OPTION
Chart no.24
Type of Investment
25% 25%
R.I.C.H.
Flexi Growth
Flexi Balancer
50%
Analysis:
The above table of the sample population who are ready to invest in ULIP of ICICI Prudential
.The preferred option of 50% of sample population is ready to invest in the Flexi Growth,
25% in R.I.C.H., and 25% in Flexi Balancer in the future. So it is clear that most of the sample
population want to invest in Flexi growth.
Inference:
The table shows that 50% sample population is interested to invest in Flexi Growth.
62
6(w) RESPONDENTS READY TO INVEST IN ULIP PROVIDING
COMPANIES
Chart No.25
Want Insure
Yes
45%
No
55%
Analysis:
The above analysis reveals the fact that 45% of sample population is ready to invest in the ULIPs
of different companies . So there is a huge market which ICICI Prudential can easily capture.
63
Inference:
The table shows that 45% of sample population is ready to invest in ULIP providing
companies.
64
Chapter 7
65
7.1 Survey Findings
1. There is a common opinion that ULIP has a good future as it will satisfy all the wants of an
investor including return.
2. Around 29% of sample population is ready to invest if they get High Returns, apart from Tax
Benefit & Partial & Full Withdrawal Facilities.
3. 42% of the sample population is ready to invest in ULIP.
4. Around 58% like to invest in private life insurance companies.
5. Even though majority of the people have a good awareness but still they have a negative
attitude towards investing in insurance and related securities.
6. 25% of sample populations are not satisfied with their High Returns from the Existing
Insurer.
7. 35% of sample population is satisfied with Tax Benefits provided by the existing insurance
companies.
8. About 39% of sample population is not satisfied with the insurer regarding Insurance
Coverage.
9. 31% of sample population is Below Average in their satisfaction level regarding Partial and
Full Withdrawal facilities provided by the existing insurer.
10. Investments in insurance related options are given the least priority than ever before.
11. 45% of sample population is ready to invest in the ULIP of ICICI Prudential and the
remaining 55% are ready to invest in other ULIP providing insurance companies.
12. 40% of sample population are ready to insure the life with ULIP of ICICI Prudential
Insurance Company
13. 60% of sample population are not ready to invest with ULIP of ICICI Prudential Insurance
Company
14. 60% of sample population insure their life with different insurance companies
15. 40% of sample population still has not insured their life. So there is a huge demand for
insurance products to exploit the market
66
CONCLUSION
The size of the market has grown and the size of the insurable population in India is really
huge and the existing player has managed to cover about one-fourth of it. The opportunities
before the players are, therefore, huge in terms of target audience. The falling interest rates,
the collapse of many small-time financial institutions, the scope for entering related areas
like banking and pensions in a bid for synergy and the promise of E-Commerce provide
opportunities for the new products like ULIP’s in the insurance market as it gives high returns
and insurance coverage to the customers. As it provides benefits of mutual funds and
endowment plans most of the people like to take a policy. Life insurance has today become
a core of market economy since it offers plenty of scope for generating large sum of money
with the time by offering its customers perfect products to satisfy their financial need. It is,
67
SUGGESTIONS
After analyzing the customer feedback it is clear that at present at ICICI Prudential is
having an edge over other various life insurance companies. There are a few areas where
ICICI Prudential could rework on its strategies to outperform its competitors in the future.
ICICI Prudential could introduce more customer friendly feature on its policies like unlimited
free switches, lower administration charges, more allocation to the units in the first year etc.
ICICI Prudential can unquestionably make good use of more advertisement to promote its
Company can give more importance to the new age insurance solutions.
Company should introduce more innovative pension and child ULIP plans as they have more
demand.
From the customer’s point of view, ICICI Prudential is just another private insurer trying to
sell whatever they have. Instead the company must modify its product range in such a way
that the company could clearly distinguish its products from that of its competitors.
ICICI Prudential must exploit its reputation as successful banking and insurance company.
Even today many people don’t know that ICICI and Prudential plc is the same company they
ICICI must clearly introduce ULIP products with low premium because the low profile
customers who want to invest in ICICI Prudential have no option other than going to other
private players.
If all these factors are addressed properly, there is a very high probability for the company to
be the best and the biggest private life insurance company in Indian life insurance industry
in future.
68
BIBLIOGRAPHY
BOOKS:
Marketing Research
-------------by Prof: Kotler
Research Methodology (Methods & Techniques)
-------------by C.R Kothari, Second Edition
MAGAZINES:
Business Journals
India Today
Outlook Money
NEWS PAPERS:
Times of India
Hindu
The Indian Express
Economic Times
Greater Kashmir
WEBSITES:
www.allianzbajaj.co.in
www.lic.com
www.iciciprulife.com
www.irda.com
www.goolge.com
www.relianceinsurance.co.in
OTHERS:
Companies Broachers and other product detail books
69
QUESTIONNAIRE
Name Mr. / Ms :
Address :
Age : Contact No :
Email ID :
1. Your Profession:
Yes No
ICICI LIC
Bajaj Allianz MetLife Insurance
Other _________________
70
5. Are you aware about policy functioning?
Yes No
7. If ULIP, What are the features of the ULIP that existing company is providing from the
following features?
Other _____________
Protector Preserver
9. If Traditional, in which plan from the following have you invested in?
71
11. What are the main factors that influence you to continue the services offered by your
existing insurer?
12. Are you satisfied with the facilities provider by your existing insurer with respect to
ULIP? Rate them on scale of 1 to 5.
1 2 3 4 5
Facilities
Higher Return
Tax benefits
Insurance Cover
Partial and Full Withdrawals
Yes No
14. If yes, would you insure yourself or your family member’s life with ICICI Prudential?
Yes No
15. If yes, would you like to invest in the ULIP of ICICI Prudential?
Yes No
72
R.I.C.H. Flexi Growth
Protector Preserver
17. If not ICICI Prudential, would you like to invest in ULIP providing companies?
Yes No
Thank you.
73