CONTENTS

SL. CONTENTS PAGE

NO. NOS.
1 CHAPTER 1
Executive Summary 1-2
Overview of the Industry 3-6
Introduction 7-8

2 CHAPTER 2
Objectives of the study 9
Significance of the study 9
Scope of the study 10

3 CHAPTER 3
Company’s profile 11-17
ICICI Prulife’s products 17-22
Promoter’s profile 23
Board of Directors 24

4 CHAPTER 4
Tables and Charts 26-33
ICICI Prulife’s Achievements 35-42
Functions of ICICI Prulife 44-45

5 CHAPTER 5
Department-wise information 47-59

6 CHAPTER 6
SWOT Analysis 60
Findings and Recommendations 61-62

7 CHAPTER 7
Conclusion 63
Bibliography 64
 LIST OF TABLES AND CHARTS

SL PAGE
PARTICULARS
NO NO.
TABLE 1- MILESTONES IN THE LIFE INSURANCE
1 27
BUSINESS IN INDIA
2 TABLE 2- SHARE HOLDING PATTERN 28

3 TABLE 3- NATURE OF HOLDING THE COMPANY 29

TABLE 4- MARKET SHARE OF LIC AND OTHER
4 30
PRIVATE PLAYERS
TABLE 5- MARKET SHARE OF FEW PRIVATE
5 31
PLAYERS
6 TABLE 6- POTENTIAL OF THE INSURANCE SECTOR 32
TABLE 7- FINANCIAL PERFORMANCE OF ICICI
7 33
PRUDENTIAL
8 TABLE 8- ASSETS HELD BY ICICI PRULIFE 54
7 CHART 1- ORGANIZATION CHART OF ICICI PRULIFE 34
48, 50 &
8 CHART 2- DEPARTMENT-WISE CHARTS
51
EXECUTIVE SUMMARY
The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance
Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972,
Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other
related Acts. 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 per cent 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 “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 efficient and 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 sea changes .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 in the longer run. 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.

1
This report consists of a detailed study about ICICI Prudential, organization’s
functions, products’ descriptions and various charts that depict the performance of
the organization. Based on the above study, the Strengths, Weaknesses,
Opportunities and Threats are analyzed so as to arrive at a conclusion about the
company.
Considering the different aspects of the study, I have also given few logical
and valid recommendations, which helped me to find out the pros and cons of ICICI
Prudential.
The report also comprises of the need, objectives and scope of the study. The
objective was to study the functions of the various departments within the
organization. By doing such a study, it certainly assisted me to know what exactly
the purpose of the study was.
Tables and charts are used so as to represent the gathered-information and statistics
for a better understanding. These include the market share, comparisons of ICICI
Prulife with other private players, financial strength of ICICI Prulife and many
more.
Organization chart, department-wise charts also add on to the consistency of the
report.
To conclude, this is an epigrammatic report that gives an insight of ICICI
Prulife and its departments within the organization. The topics are also arranged
chapter-wise so as to give a clear picture for the reader.
I hope this report will please the reader regarding the various aspects covered
about this reputed organization in the insurance industry- ICICI PRUDENTIAL
LIFE INSURANCE.

2
OVERVIEW OF THE INDUSTRY

Origin of life insurance

Life insurance was born in England when the first policy providing temporary cover
for a period of 12 months was issued as easy as 1583 A.D. The Amicable Society
started granting fluctuating sum on death since 1705 and a fix sum since 1757. With
the development of mortality tables, the life assurance acquired a scientific
character. The Equitable Society founded in 1762 was the first Society established
on scientific basis.

Origin of life insurance in India

In India, after the failure of two British companies, the European and the
Albert in 1870, which attempted writing business on Indian lives, first Indian life
assurance society was formed in the same year called Bombay mutual assurance
society ltd. It was followed by the oriental life assurance company limited in 1874,
bharat in 1896 and empire of India in 1897. The idea of insurance was born out of a
desire of the people to share loss of an individual by many.
Originally it restricted to forms of other life insurance. It started with marine
insurance, where the losses on account of perils of sea were shared by all who were
engaged in trade. Reference to some forms of insurance is found in the codes of
Hammurabi Manu.
The Swadeshi movement of 1905 provided impetus to the formation of several
companies such as the ‘Hindustan Cooperative’, the United India’, the ‘bombay
Life’, the National’. Further in the wake of freedom movement number of
companies such as the ‘New india’, the ‘Jupiter’ the Lakshmi’ emerged.

3
The government began to exercise a certain measure of control on insurance
business by passing the ‘insurance act’ in 1912. In order to control the investment of
funds, expenditure and management, a comprehensive act was passed known as ‘the
insurance act 1938’. To control the affairs, the office of controller of insurance was
established. The act was extensively amended in 1950.

Indian Insurance Market – History

Insurance has a long history in India. Life Insurance in its current form was
introduced in 1818 when Oriental Life Insurance Company began its operations in
India. General Insurance was however a comparatively late entrant in 1850 when
Triton Insurance company set up its base in Kolkata. History of Insurance in India
can be broadly bifurcated into three eras: a) Pre Nationalization b) Nationalization
and c) Post Nationalization. Life Insurance was the first to be nationalized in 1956.
Life Insurance Corporation of India was formed by consolidating the operations of
various insurance companies. General Insurance followed suit and was nationalized
in 1973. General Insurance Corporation of India was set up as the controlling body
with New India, United India, National and Oriental as its subsidiaries. The process
of opening up the insurance sector was initiated against the background of Economic
Reform process which commenced from 1991. For this purpose Malhotra
Committee was formed during this year who submitted their report in 1994 and
Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly
Indian Insurance was opened for private companies and Private Insurance Company
effectively started operations from 2001.

4
Insurance Market- Present:
The insurance sector was opened up for private participation four years ago. For
years now, the private players are active in the liberalized environment. The
insurance market have witnessed dynamic changes which includes presence of a
fairly large number of insurers both life and non-life segment. Most of the private
insurance companies have formed joint venture partnering well recognized foreign
players across the globe.
There are now 29 insurance companies operating in the Indian market – 14 private
life insurers, nine private non-life insurers and six public sector companies. With
many more joint ventures in the offing, the insurance industry in India today stands
at a crossroads as competition intensifies and companies prepare survival strategies
in a de-tariffed scenario.
There is pressure from both within the country and outside on the Government to
increase the foreign direct investment (FDI) limit from the current 26% to 49%,
which would help JV partners to bring in funds for expansion.
There are opportunities in the pensions sector where regulations are being framed.
Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has
issued the first license for a standalone health company in the country as many more
players wait to enter. The health insurance sector has tremendous growth potential,
and as it matures and new players enter, product innovation and enhancement will
increase. The deepening of the health database over time will also allow players to
develop and price products for larger segments of society.

5
Year Milestones in the life insurance business in India

1912 The Indian Life Assurance Companies Act enacted as the first
statute to regulate the life insurance business
1928 The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and
non-life insurance businesses
1938 Earlier legislation consolidated and amended to by the Insurance
Act with the objective of protecting the interests of the insuring
public.
1956 245 Indian and foreign insurers and provident societies taken
over by the central government and nationalized. LIC formed by
an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of Rs. 5 crore from the Government of India.

6
INTRODUCTION

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank -
one of India's foremost financial services companies-and Prudential plc - a leading
international financial services group headquartered in the United Kingdom. Total
capital infusion stands at Rs. 37.72 billion, with ICICI Bank holding a stake of 74%
and Prudential plc holding 26%.

We began our operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). Today, our nation-wide team comprises
of over 954 branches in addition to 1,015 micro-offices, over 296,000 advisors; and
21 bank assurance partners.

ICICI Prudential was the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row,
ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The
Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we
grow our distribution, product range and customer base, we continue to tirelessly
uphold our commitment to deliver world-class financial solutions to customers all
over India.

7
The ICICI Prudential edge comes from our commitment to our customers, in all that
we do - be it product development, distribution, the sales process or servicing. Here's
a peek into what makes us leaders.

1. Our products have been developed after a clear and thorough understanding of
customers' needs. It is this research that helps us develop Education plans that offer
the ideal way to truly guarantee your child's education, Retirement solutions that are
a hedge against inflation and yet promise a fixed income after you retire, or Health
insurance that arms you with the funds you might need to recover from a dreaded
disease.

2. Having the right products is the first step, but it's equally important to ensure that
our customers can access them easily and quickly. To this end, ICICI Prudential has
an advisor base across the length and breadth of the country, and also partners with
leading banks, corporate agents and brokers to distribute our products.

3. Robust risk management and underwriting practices form the core of our
business. With clear guidelines in place, we ensure equitable costing of risks, and
thereby ensure a smooth and hassle-free claims process.

4. Entrusted with helping our customers meet their long-term goals, we adopt an
investment philosophy that aims to achieve risk adjusted returns over the long-term.

5. Last but definitely not the least, our 28,000 plus strong team is given the
opportunity to learn and grow, every day in a multitude of ways. We believe this
keeps them engaged and enthusiastic, so that they can deliver on our promise to
cover you, at every step in life.

8
Objectives of the Study
Primary Objectives:
• To assess organizational performance
• To study the functions of the various departments in the company
• To know the products of the ICICI PRULIFE

Secondary Objectives:
• To sketch the organizational hierarchy
• To provide suggestions and recommendations on the basis of the findings of
the study

Significance of the study

A study of the organization (ICICI Prulife) will help me understand the different
functions and relevant aspects with respect to its competitors. Also I will get to know
the status of the products and services rendered by ICICI Prulife.

Managerial usefulness of the study

ICICI Prulife has a place in the insurance sector. The study of its marketing
strategies and other co-related fields will give me a broad idea behind the success of
the company and the facts of marketing that made the success possible.

9
Scope of the study
The study is for the products of ICICI Prudential life insurance and is limited to
Bangalore only. The information will be based on the company’s website and data
gathered by means of secondary data.

Methodology:

Method of data collection:

Only secondary data collection tools were used to gather information.

Period of the study:

The proposed study was conducted during the one and a half month period of July-
August 2007.

Limitations of the study:

• Analysis is done only from secondary data sources
• The study is limited only towards the organizational study

10
PROFILE OF THE ORGANIZATION

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank -
one of India's foremost financial services companies-and Prudential plc - a leading
international financial services group headquartered in the United Kingdom. Total
capital infusion stands at Rs. 37.72 billion, with ICICI Bank holding a stake of 74%
and Prudential plc holding 26%.

They began our operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team
comprises of over 954 branches in addition to 1,015 micro-offices, over 296,000
advisors; and 21 assurance partners.

ICICI Prudential was the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row,
ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The
Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we
grow our distribution, product range and customer base, we continue to tirelessly
uphold our commitment to deliver world-class financial solutions to customers all
over India.
The ICICI Prudential edge comes from our commitment to our customers, in all that
we do - be it product development, distribution, the sales process or servicing. Here's
a peek into what makes us leaders.

1. Our products have been developed after a clear and thorough understanding of

customers' needs. It is this research that helps us develop Education plans that offer
the ideal way to truly guarantee your child's education, Retirement solutions that are
a hedge against inflation and yet promise a fixed income after you retire, or Health

11
insurance that arms you with the funds you might need to recover from a dreaded
disease.

2. Having the right products is the first step, but it's equally important to ensure that

our customers can access them easily and quickly. To this end, ICICI Prudential has
an advisor base across the length and breadth of the country, and also partners with
leading banks, corporate agents and brokers to distribute our products.

3. Robust risk management and underwriting practices form the core of our business.

With clear guidelines in place, we ensure equitable costing of risks, and thereby
ensure a smooth and hassle-free claims process.

4. Entrusted with helping our customers meet their long-term goals, we adopt an

investment philosophy that aims to achieve risk adjusted returns over the long-term.

5. Last but definitely not the least, our 28,000 plus strong team is given the
opportunity to learn and grow, every day in a multitude of ways. We believe this
keeps them engaged and enthusiastic, so that they can deliver on our promise to
cover you, at every step in life.

12
ICICI PRULIFE: The Vision and the Core Values
• To be the dominant Life, Health and Pensions player built on trust by world-
class people and service.

The pre-defined goals are achieved by…..

• Understanding the needs of customers and offering them superior products
and service
• Leveraging technology to service customers quickly, efficiently and
conveniently
• Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
• Providing an enabling environment to foster growth and learning for our
employees
• And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to

5 core values- Integrity, Customer First, Boundary less, Ownership and
Passion. Each of the values describes what the company stands for, the
qualities of our people and the way we work.

We do believe that we are on the threshold of an exciting new opportunity,

where we can play a significant role in redefining and reshaping the sector.
Given the quality of our parentage and the commitment of our team, there are no
limits to our growth.

13
VALUES

Every member of the ICICI Prudential team is committed to 5 core values:

• Integrity
• Customer First
• Boundary less
• Ownership and
• Passion.

Social responsibilities of ICICI Prudential

• Spread life insurance much widely to the rural areas with extra benefits.
• Support the socially and economically backward classes.
• Maximize mobilization of people’s savings.
• Ensure prompt investment of funds.
• Conduct business with utmost economy.
• Act as trustee of the insured public.

The 7- S’s in ICICI Prudential

The 7- S model is an outcome of an extensive research by the famous management

consultancy firm, McKinsey & Co. (USA). This framework helps to establish a
direct and meaningful relationship between the efficiency and the very setup of the
organization.
Shared Values: This variable is the central core of the model and is interconnected
with all the other variables. This implies that it is the linchpin of the managerial

14
excellence. Shared values refer to a set of values and aspirations that go beyond the
conventional formal statement of corporate objectives.
These represent the fundamental values around which a business is built. They lay
down the foundation of the organization’s management philosophy and give rise to a
particular culture.
ICICI Prudential is an organization that values and safeguards basic principles and
core ethics that ranges from Equal prospects, Responsibility to society, Appreciating
values, Openness, Integrity and Total team work.
Strategy: A strategy is a long-term plan chosen deliberately and consciously after a
thorough analysis of the internal and external environment of the organization. It
refers to the plan formulated in response to or in anticipation of changes in
environment. It seeks to improve the company’s competitive position. It is designed
to provide guidance and direction to the operations of the organization. It is true that
organizations, which continuously carry out strategic planning and strategic
management; tend to outperform those, which do not.
ICICI Prudential, inspite of being incepted in a competitive environment at Mumbai,
has achieved the best monthly sales volume throughout the periods.
Structure: The structure is the skeleton of the whole organizational edifice. It is
built by dividing the total task into smaller groups and creating coordination among
the groups. It prescribes the formal relationships among various positions and
activities.
ICICI Prudential has designed its organization to comprise of departments such as
Finance & Administration, Sales, Service and IT. F&A and IT departments have
their functions to spread over the others in the structure.
System: System refers to all the rules, regulations and procedures; both formal and
informal that compliments the organization structure. It consists of planning and
control systems, capital budgeting systems, cost accounting procedures, training and

15
development systems, performance evaluation systems etc. Systems reflect the logic
and experience of the past.
The training and development systems, performance evaluation systems and other
systems in the organization meet the best in the industry.
Styles: The style of an organization becomes evident from the pattern of actions
taken by top management over a period of time and the reporting relationship. It is
reflected in the traditions, norms, rituals and actions of an organization.
ICICI Prudential follows an entrepreneurial, innovative and centralized style of
management.
Staff: Staffing refers to selecting people for specific organizational positions and
developing in them, the competence for effective performance. The human resources
shall be managed in such a way to generate a belief amongst them that they are the
real performers.
ICICI Prudential does concentrate in managing the people in the organization. The
compensation packages and the career development prospects are meeting the best
in the industry.
Skill: The dominant skills or the distinctive competence of an organization is a
major factor driving to success. What is required is the ability to identify and utilize
effectively the distinctive skills. Learning new skills and sharpening the existing
skills is equally important.
ICICI Prudential does have a distinctive and somewhat unique marketing skill. The
group as a whole itself is well known in the marketing of quality products and
services. The expertise and allied knowledge is applied towards the future plans of
diversification of the organization.

16
ICICI Prudential Life has one of the largest distribution networks amongst private
life insurers in India. It has a strong presence across India with over 954 branches in
addition to 1,015 micro-offices and an advisor base of over 296,000 (as on April 30,
2008).
The company has 21 bank assurance partners having tie-ups with ICICI Bank, Bank
of India, Federal Bank, South Indian Bank, Shamrao Vitthal Co-Op Bank, Jalgaon
Peoples Co-op Bank, Ernakulam District Co-op Bank, Idukki District Co-op Bank,
Ratnagiri Sindhudurg Gramin Bank, Solapur Gramin Bank, Wainganga Kshetriya
Gramin Bank, Aryawart Gramin Bank, Jharkhand Gramin Bank, Narmada Malwa
Gramin Bank, Baitarani Gramya Bank, Ratnagiri District Central Co-op Bank, Seva
Vikas Co-op Bank, Sangli Urban Co-Operative Bank, Baramati Co-operative Bank,
Ballia Kshetriya Co-Operative Bank, The Haryana State Co-Operative Bank and
Imphal Urban Cooperative Bank Ltd.

Products

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 4 riders, to create a customized solution for each policyholder.

Savings & Wealth Creation Solutions

• Save'n'Protect is a traditional endowment savings plan that offers life
protection along with adequate returns.
• Cash Back 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. It is available for terms of 15 and 20 years.

17
 • LifeTime Gold & LifeTime Plus is unit-linked plans that offer customers the
flexibility and control to customize the policy to meet the changing needs at
different life stages. Each offer 6 fund options - Preserver, Protector, Balancer,
Maximiser, Flexi Growth and Flexi Balanced.
• Life Link 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 Gold is a limited premium paying plan specially structured for
long-term wealth creation.
• Invest Shield Life New is a unit linked plan that provides premium guarantee
on the invested premiums and ensures that the customer receives only the
benefits of fund appreciation without any of the risks of depreciation.
• Invest Shield Cash back is a unit linked plan that provides premium
guarantee on the invested premiums along with flexible liquidity options.
• Life Stage RP is a unique and powerful wealth creation insurance solution,
which combines the benefits of automatic asset allocation and quarterly
rebalancing along with increased protection.

Protection Solutions
• Lifeguard is a protection plan, which offers life cover at low cost. It is
available in 3 options - level term assurance, level term assurance with return
of premium & single premium.
• Home Assure is a mortgage reducing term assurance plan designed
specifically to help customers cover their home loans in a simple and cost-
effective manner.

18
Education insurance plans

Education insurance under the SmartKid brand provides 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 traditional retirement product that offers guaranteed returns

for the first 4 years and then declares bonuses annually.
• LifeTime Super Pension is a regular premium unit linked pension plan that
helps one accumulate over the long term and offers 5 annuity options (life
annuity, life annuity with return of purchase price, joint life last survivor
annuity with return of purchase price, life annuity guaranteed for 5, 10 and 15
years & for life thereafter, joint life, last survivor annuity without return of
purchase price) at the time of retirement.
• Life Link Super Pension is a single premium unit linked pension plan.
• Immediate Annuity is a single premium annuity product that guarantees
income for life at the time of retirement. It offers the benefit of 5 payout
options.
• Premier Life Pension is a unique and convenient retirement solution with a
limited premium paying term of three or five years, to suit professionals and
businessmen, especially those who require more flexibility and customization
while planning their finances.

19
Health Solutions
• Health Assure Plus: Health Assure is a regular premium plan which provides
long term cover against 6 critical illnesses by providing policyholder 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
conditions.
• Cancer Care Plus: is a wellness plan that includes all the benefits of Cancer
Care and also provides an additional benefit of free periodical cancer
screenings.
• Diabetes Care: Diabetes Care is a unique critical illness product specially
developed for individuals with Type 2 diabetes and pre-diabetes. It makes
payments on diagnosis on any of 6 diabetes related critical illnesses, and also
offers a coordinated care approach to managing the condition. Diabetes Care
Plus also offers life cover.
• Diabetes Care Plus: is a unique insurance policy that provides an additional
benefit of life cover for Type 2 diabetics and pre-diabetics
• Hospital Care: is a fixed benefit plan covering various stages of treatment -
hospitalization, ICU, procedures & recuperating allowance. It covers a range
of medical conditions (900 surgeries) and has a long term guaranteed
coverage upto 20 years.
• Crisis Cover: is a 360-degree product that will provide long-term coverage
against 35 critical illnesses, total and permanent disability, and death.

20
Group Insurance Solutions

ICICI Prudential Life also offers Group Insurance Solutions for companies seeking
to enhance benefits to their employees.

• Group Gratuity Plan: ICICI Prudential Life'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 obligations.

• Group Superannuation Plan: ICICI Prudential Life offers both defined

contribution (DC) and defined benefit (DB) superannuation schemes to
optimize returns for the members of the trust and rationalize the cost.
Members have the option of choosing from various annuity options or opting
for a partial commutation of the annuity at the time of retirement.

• Group Immediate Annuities: In addition to the annuities offered to existing

superannuation customers, we offer immediate annuities to superannuation
funds not managed by us.

• Group Term Plan: ICICI Prudential Life'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.

21
Flexible Rider Options

ICICI Prudential Life offers flexible riders, which can be added to the basic policy at
a marginal cost, depending on the specific needs of the customer.

• Accident & 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 an accident results in total
and permanent disability, 10% of rider sum assured will be paid each year,
from the end of the 1st year after the disability date for the remainder of the
base policy term or 10 years, whichever is lesser. 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.
• 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.
• Waiver of Premium: In case of total and permanent disability due to an
accident, the future premiums continue to be paid by the company till the time
of maturity. This rider is available with SmartKid, LifeTime Plus, LifeTime
Super and LifeTime Super Pension.
• Income benefit rider: In case of death of the life assured during the term of
the policy, 10% of the sum assured is paid annually to the nominee on each
policy anniversary till the maturity of the rider.

22
About the Promoters

ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the
second largest bank in the country, with consolidated total assets of $121 billion as
of March 31, 2008. ICICI Bank’s subsidiaries include India’s leading private sector
insurance companies and among its largest securities brokerage firms, mutual funds
and private equity firms. ICICI Bank’s presence currently spans 19 countries,
including India.
Established in London in 1848, Prudential plc, through its businesses in the UK and
Europe, US, Asia and the Middle East, provides retail financial services products
and services to more than 20 million customers, policyholder and unit holders and
manages over £267 billion of funds worldwide (as of December 31, 2007). In Asia,
Prudential is the leading European life insurance company with life operations in
China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest retail
fund managers for Asian sourced assets ex-Japan. Its fund management business has
expanded into a total of ten markets: China, Hong Kong, India, Japan, Korea,
Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates. Its fund
management business has expanded into a total of ten markets: China, Hong Kong,
India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab
Emirates.

23
BOARD OF DIRECTORS

The ICICI Prudential Life Insurance Limited Board comprises of reputed people
from the finance industry both from India and abroad.

• Mr. K.V. Kamath

• Mr. Mark Tucker

• Mrs. Lalitha D. Gupte

• Mr. Danny Bardin

• Mrs. Kalpana Morparia

• Mr. Chandra Kochhar

• Mr. M.P. Modi

• Mr. S.P. Subhedar

• Mr. Derek Stortt

• Mr. Shikha Sharma

24
MANAGEMENT TEAM

• Ms. Shikha Sharma, Managing Director

• Ms. Anita Pai, Chief operations & Underwriting

• Mr. Bill Lisle, Chief Agency Officer

• Mr. Sandeep Batra, Chief Financial Officer & Company Secretary

• Mr. Saugata Gupta, Chief Marketing

• Mr. Subhro J. Mitra, Chief HR

• Mr. V. Rajagopalan, Appointed Actuary

• Mr. Anil Tikoo, head of Information Technology

25
 TABLES AND CHARTS

TABLE NO: 1
Some of the important milestones in the life insurance business in India are given in
the

Year Milestones in the life insurance business in India

1912 The Indian Life Assurance Companies Act enacted as the

first statute to regulate the life insurance business
1928 The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both
life and non-life insurance businesses
1938 Earlier legislation consolidated and amended to by the
Insurance Act with the objective of protecting the interests
of the insuring public.
1956 245 Indian and foreign insurers and provident societies
taken over by the central government and nationalized.
LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the
Government of India.

There are now 29 insurance companies operating in the Indian market – 14 private
life insurers, nine private non-life insurers and six public sector companies.

26
TABLE NO: 2
NAME OF THE INSURANCE COMPANY AND THE SHARE
HOLDING PATTERN

Name of the Insurance Company Shareholding

Agricultural Insurance Co Bank and Public Ins Co
Bajaj Allianz General Insurance Co. Ltd. Privately Held
Cholamandalam MS General Insurance Co. Ltd. Privately Held
Export Credit Guarantee Company Public Sector
HDFC Chubb General Insurance Co. Ltd. Privately Held
ICICI Lombard General Insurance Co. Ltd. Privately Held
IFFCO-Tokio General Insurance Co. Ltd. Privately Held
National Insurance Co. Ltd. Public Sector
New India Assurance Co. Ltd. Public Sector
Oriental Insurance Co. Ltd. Public Sector
Reliance General Insurance Co. Ltd. Privately Held
Royal Sundaram Alliance General Insurance Co.
Privately Held
Ltd.
Tata AIG General Insurance Co. Ltd. Privately Held
United India Insurance Co. Ltd. Public Sector

27
TABLE NO: 3
NAME OF THE LIFE INSURANCE COMPANY AND THE
SHARE HOLDING PATTERN

Name of the company Nature of Holding

Allianz Bajaj Life Insurance Co Private
Aviva Life Insurance Private
Birla Sun Life Insurance Co Private
HDFC Standard Life Insurance Co Private
ICICI Prudential Life Insurance Co Private
ING Vysya Life Insurance Co. Private
Life Insurance Corporation of India Public
Max New York Life Insurance Co. Private
MetLife Insurance Co. Private
Kotak Mahindra Life Insurance Private
Reliance insurance Private
SBI Life Insurance Co Private
TATA- AIG Life Insurance Company Private

28
TABLE NO: 4

29
TABLE NO: 5

30
TABLE NO: 6

31
 TABLE NO: 7

FINANCIAL PERFORMANCE OF ICICI PRULIFE

BALANCE SHEET AS OF MARCH 31ST 2007

LIABILITIES MARCH 31ST 2007 MARCH 31ST 2006

Unit capital 4274 2962
Reserves and surplus 1836 1312
Unrealized appreciation in ------ 1928
investment
Unit-holders’ funds 6110 4462
Current liabilities and 6054 4295
provisions
Total liabilities 6171 4510
ASSETS
Investments 5744 4001
Deposits 3312 4254
Current assets 9534 8381
Deferred revenue exp. 6171 4510

32
ORGANIZATIONAL CHART OF ICICI PRULIFE

33
Growth drivers for the Indian Insurance industry:

1. Government Policies
• Overall economic growth
• Tax waivers
2. New product launches
• Contemporary products
• Seasonal life cycle
3. Increasing consumer demand
• Growth in Income levels
• Easier financing
• Cost Competitiveness
• Competitiveness
• Benefits

Social responsibilities of ICICI Prudential

• Spread life insurance much widely to the rural areas with extra benefits.
• Support the socially and economically backward classes.
• Maximize mobilization of people’s savings.
• Ensure prompt investment of funds.
• Conduct business with utmost economy.
• Act as trustee of the insured public.

34
ICICI PRUDENTIAL: THE ACHIEVEMENTS
AWARDS

ICICI Prudential Life won the ICICI Group Marketing Excellence Award 2008 in
three key categories for its marketing initiatives

ICICI Prudential Life was awarded the INDY’s Award for Excellence in Mass
Communication in the category of Most Creative Advertisement-Television.

35
India's Most Customer Responsive Insurance Company
Avaya Global Connect - Economic Times Customer Responsiveness Awards, 2007

Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was adjudged as
one of the 50 Most Powerful Women in Business by The Financial Express.

36
Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was adjudged the
Entrepreneur of the Year-Manager at the Ernst and Young Entrepreneur Awards
2007

Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was awarded the
Outstanding Businesswoman of the Year at CNBC TV18's India Business Leader
Awards 2007

ICICI Prudential Life Insurance won the award for the Best Life Insurer-Runner up
at the Outlook Money & NDTV Profit Awards 2007

37
ICICI Prudential Life’s, retirement solutions campaign for the year 2006-07 was
awarded the Bronze Effy trophy in the services category. It also won the Brand
Equity Bravery Award 2007, instituted by Ad club.

38
ICICI Prudential Life’s website, www.iciciprulife.com was awarded the best website
among private life insurers at the Web 18 and Frost & Sullivan Genius of the Web
Awards 2007 for commendable work in the online.

Innovation Award for launching Diabetes Care – Prudence Award 2006

People Award for excellence in training and people development - Prudence Award
2006

39
India's Most Customer Responsive Insurance Company Avaya GlobalConnect -
Economic Times Customer Responsiveness Awards

Most Trusted Private Life Insurer

The Economic Times - A C Nielsen Survey of Most Trusted Brands – 2003, 2004
and 2005

Prudence Customer Centricity Award 2004 & 2005

Prudential Corporation Asia

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Best Life Insurer 2003
Outlook Money Awards 2003 & 2004

IMM Award for Excellence

Institute of Marketing & Management

Organization with Innovative HR Practices

Indira Group of Institutes

Superbrand 2003-04

41
Organization with Innovative HR Practices
Asia-Pacific H R Congress Awards for HR Excellence

Silver Effie for Effectiveness of the ‘Retire from Work not life’ advertising
campaign
Effies 2003

42
RECOGNITIONS

• IMM Award for Excellence

Institute of Marketing & Management

• Organization with Innovative HR Practices

Indira Group of Institutes

• Organization with Innovative HR Practices

Asia-Pacific H R Congress Awards for HR Excellence

Characteristics of insurance

• Sharing of risks
• Cooperative device
• Evaluation of risk
• Payment on happening of a special event
• The amount of payment depends on the nature of losses incurred
• The success of insurance business depends on the large number of people
insured against similar risk
• Insurance is a plan, which spreads the risk and losses of few people among a
large number of people
• The insurance is a plan in which he insured transfers his risk on the insurer

43
 • Insurance is a legal contract which is based upon certain principles of
insurance which includes utmost faith, insurable interest, contribution,
indemnity, causes proxima, subrogation, etc.
• The scope of insurance is much wider and extensive.

Functions of ICICI PRULIFE

Primary functions

• Provide protection: insurance cannot check the happening of the risk, but can
provide for the losses of risk
• Collective bearing of risk: insurance is a device to share the financial losses
of few among many others
• Assessment of risk: insurance determines the probable volume of risk by
evaluating various factors that give rise to risk
• Provide certainty: insurance is a device which helps to change from
uncertainty to certainty.

Secondary functions

• Prevention of losses: insurance cautions businessman and individuals to

adopt suitable device to prevent unfortunate consequences of risk by
observing safety instructions.
• Small capital to cover large risks: insurance relieves the businessman from
security investment, by paying small amount insurance against larger risks
and uncertainty.

44
Other functions

• Means of savings and investment:

Insurance companies are business houses. The product they sell is financial
protection. To succeed and survive, they must cover their costs, which include
payments to cover the losses of policyholders, as well as sales and administrative
expenses, taxes and dividends.
Insurance companies have two sources of income for covering these costs:
premiums and investment income. The premiums are collected on a regular basis
and invested in government bonds, stocks, mutual funds, real estates and other
conservative avenues. However, investment income depends on market conditions,
interest rates, economy, etc. and varies from year to year. Because of the uncertainty
associated with the investment income, insurance companies must generate enough
income from premiums to cover the bulk of their expenses.

Fundamentals of insurance

The fundamental principles of the insurance are as follows:

Insurable interest: insurable means the legal right to insure. Insurable interest is a
must and only then the insurance contract is enforceable at law. This principle
differentiates a contract of insurance from wager. Lack of insurable interest renders
the contract null and void. For insurable interest to exist there must be property,
rights, interest, life or liability; this must be insured and the insured should have a
legally recognizable relationship thereto. The insured should be benefited by the
safety of the property or is prejudiced by its loss.

45
Insurable interest may arise in the following manner:
• Ownership
• Partial interest
• Administrators and executors
• Relationship

46
HR POLICIES

HR Manager

Incharge Sales Incharge Service

Data Entry Operator Data Entry Operator

ICICI Prudential: The HR Policy

1. Recruitment: The sources used

• Newspaper Ads
• Consultancy Services
• Internal References
• Websites
• Campus interviews
2. Selection: The process
• For Sales, Finance and HR,
Interview by both HR and functional managers together
• For Service,
Interview by Service manager

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3. IRDA EXAM
• Training: The modus operandi
• Induction by HR department
• Product training
• Training focused on development of interpersonal and communicational skills
• Probation Policy
• On successful completion of the above period they will be confirmed in
writing. If no confirmation is made at the end of the probationary /
traineeship / contract.
New trainees will be appointed as financial advisors, unit managers, agency
managers, zonal managers and state head.

PERFORMANCE APPRAISAL

• Performance appraisal will be conducted annually of all employees.

• This will be conducted twice in a year in April and October to cover
employees joining in both the half a year.
• Increments and promotions will be given based on the performance and other
parameters of appraisal at the sole discretion of the management.
Performance appraisal will be conducted after the training and contract period.

48
IT DEPARTMENT

Manager IT

Incharge Sales Incharge Service

Data Entry Operator Data Entry Operator

In every organization there are certain systems and procedure, which help the
organizations routine activities and there by improving organization’s efficiency.
Information technology helps to follow these systems and procedures more easy.
• ICICI Prulife realizes the importance of information technology in modern world
and the IT Department is all set to face the challenges.
• With the help of self developed software Syscon and Siebel, the IT department
carries out both TPS functions such as data entry and MIS functions like stock
reference, equity analysis, profitability and comparisons.
In charges of sales and service and both data entry operators help the IT department
to carry out the MIS functions smoothly.

49
FINANCE DEPARTMENT

Board

GM

Dy. GM Dy. GM Dy. GM

Sales F&A Service
AGM Sales AGM AGM
Finance Service

Manager Manager Accounts

Accounts Service

Accountant Cashier Accounts Billing

assistant Clerk

Cashier Accounts Sales Billing

Assistant Clerk

Investment Philosophy & Strategy

As a life insurance company, we know that our customers trust their monies
with us for the long-term, and hope to use these funds to protect and achieve the
dreams and aspirations of their families. With this in mind, our investment focus is
to ensure long term Safety, Stability and Profitability of our customers’ funds. Our
aim is to achieve superior returns for a given level of risk. In order to meet this
objective, we have developed an investment framework that is based on a sound
investment process coupled with a rigorous and sophisticated risk management
strategy.

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Investment process

Our investment management process relies on analytics & research to achieve

positive risk-adjusted returns in each product category, be it for child plans,
retirement solutions or other endowment-related funds. We clearly define an asset
allocation strategy that matches the risk characteristics of the corresponding liability,
or, put simply, – we ensure that the promise we have made to the customer will be
met.

The investment decision-making process has three tiers, each of which has varying
degrees of discretion and considers detailed research in order to decide the best
portfolio composition. The emphasis is to segregate the decision to buy a scrip from
the process of actually buying it, and thereby institutionalize decision-making.

Our investment management team that has a cumulative experience of more than 50
years in various aspects of market like research, trading, risk management etc. The
top management teams at ICICI Bank and Prudential Corporation Asia ably guide
the investment team in making the strategic asset allocation and continuously
monitor the performance of the investment team.

Investment decisions

Debt investments target a mix of government and corporate bonds. The investment
process is backed by intense research and analysis and comprises qualitative as well
as quantitative measures. We make calls after carefully studying all the factors that
influence interest rate direction, such as RBI policy and stance, inflation, growth of
money supply, credit off-take, fiscal deficit, and global interest rate scenario and
market sentiment. Detailed research reports obtained from credit rating agencies

51
form the primary basis for investment decisions. In addition, the team’s assessment
of economic cycle, industry health, its perception of management quality and
demand and supply situation in stock of a particular entity influence the investment
decision.

The investments in equity are targeted at long-term capital appreciation. We are not
bound by traditional pure value or growth driven strategy and continuously look
where both co-exist. Portfolio diversification lies at the core of our investment
strategy. We have a clearly articulated benchmark for each of our funds and have
well-defined deviation limits vis-à-vis benchmark at both the sector and stock level.
W e combine a top-down and bottom-up approach while choosing stocks for our
investment, considering several factors like management quality, performance track
record (in relation to the sector), dividend track record, transparency in disclosures,
execution capabilities etc. Our equity portfolio has a large cap bias, as we believe
that they offer higher risk adjusted returns. However we do invest in mid-caps
provided they satisfy at least one of the criteria viz. presence in high growth
industry, one of the industry segment leaders, niche player, offer a play on
outsourcing opportunity or structural turnaround in performance. Thus the focus is
on ensuring consistent, stable and better risk adjusted performance over long term
for our policyholders.

Benchmarks

To ensure that we maintain a strict discipline in managing policyholders’ funds, we

have clearly articulated benchmarks for various unit-linked funds. In addition we
also have strict deviation limits vis-à-vis benchmarks that ensure that we do not take
undue exposure in any particular sector or stock. It is our endeavor to give better
returns than the benchmark to policyholders for all the funds that we manage.

52
In summary, our investment process is a function of extensive research and is based
on data and reasoning, backed by superior risk control measures. This, we believe,
would enable us to deliver to our customers safety, stability and returns on their
investments with us.

ICICI Prudential Investments Team

• Puneet Nanda: EVP & Chief Investment Officer

Fund Management & Research Team

• Manish Kumar: SVP & Head – Equity

• Lakshmikanth Reddy: SVP & Fund Manager – Equity
• Meghana Baji: VP – Investment & Risk Management
• Fatema Pacha, Manager & Equity Analyst

ASSETS HELD
Rs Mn
Assets held as on Jun 30, 2008 Rs.269,672 mns
Equity 64% 173,854
Debt 36% 95,818
Total 100% 269,672

Asset held by: Linked policy holders 235,120

Other than Linked policy holders 34,552
269,672

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MARKETING ACTIVITIES

Marketing concept in financial services

According to Philip kotler, “Marketing is a social and managerial process by which
individuals and groups obtain what they need- through creating, offering and
exchanging products of value with others”.
This definition of marketing vests on the following core concepts: needs, wants and
demands; products (goods, services and ideas); values, cost and satisfaction;
exchange and transactions; relationships and networks; markets; and marketers and
prospects.

Nature and role of service marketing

Although both service marketing and goods marketing start with the critical need
identification and product design functions, goods generally are produced before it is
sold and services generally are sold before it is produced. Moreover, services
marketing have more limited influence on customers before the purchase, than that
of goods marketing.
In services, both post-sale marketing and word-of-mouth communication has
prominent effect in winning customers loyalty. Thus, services marketers can create
brand awareness and include trial before the sale, but they demonstrate benefits and
build brand awareness most effectively after the sale.
A successful product or service means nothing unless the benefit of such a service
can be communicated clearly to the target market. An organization’s promotional
strategy can consist of:
Advertising: It is any non-personal paid form of communication using any form of
mass media.

54
Public relations: Involves developing positive relationships with the organization
media public. The art of good public relations is not only to obtain favorable
publicity within the media, but it is also involves being able to handle successfully
negative attention.
Sales promotion: Commonly used to obtain an increase in sales short term. It could
involve using money off coupons or special offers.
Personal selling: Selling a product service one to one.
Direct Mail: Is the sending of publicity material to a named person within an
organization. There has been a massive growth in direct mail campaigns over the last
5 years. Spending on direct mail now amounts to £18 bn a year representing 11.8%
of advertising expenditure (Source: Royal Mail 2000). Organizations can pay
thousands of pounds for databases, which contain names and addresses of potential
customers.
Direct mail allows an organization to use their resources more effectively by
allowing them to send publicity material to a named person within their target
segment. By personalizing advertising, response rates increase thus increasing the
chance of improving sales. Listed below are links to organization whose business
involves direct mail.
Message & Media Strategy
An effective communication campaign should comprise of a well thought out
message strategy. What message are you trying to put across to your target
audience? How will you deliver that message? Will it be through the appropriate use
of branding? Logos or slogan design? The message should reinforce the benefit of
the product and should also help the company in developing the positioning strategy
of the product. Companies with effective message strategies include:
Nike: Just do it.
Toyota: The car in front is a Toyota.

55
56
Media strategy refers to how the organization is going to deliver their message.
What aspects of the promotional mix will the company use to deliver their message
strategy? Where will they promote? Clearly the company must take into account the
readership and general behavior of their target audience before they select their
media strategy. What newspapers do their target markets read? What TV
programmers do they watch? Effective targeting of their media campaign could save
the company on valuable financial resources.
Promotion strategies
"Push or Pull"?
Marketing theory distinguishes between two main kinds of promotional strategy -
"push" and "pull".
Push
A “push” promotional strategy makes use of a company's sales force and trade
promotion activities to create consumer demand for a product.
The producer promotes the product to wholesalers, the wholesalers promote it to
retailers, and the retailers promote it to consumers.
A good example of "push" selling is mobile phones, where the major handset
manufacturers such as Nokia promote their products via retailers such as Carphone
Warehouse. Personal selling and trade promotions are often the most effective
promotional tools for companies such as Nokia - for example offering subsidies on
the handsets to encourage retailers to sell higher volumes.
A "push" strategy tries to sell directly to the consumer, bypassing other distribution
channels (e.g. selling insurance or holidays directly). With this type of strategy,
consumer promotions and advertising are the most likely promotional tools.

57
Pull
A “pull” selling strategy is one that requires high spending on advertising and
consumer promotion to build up consumer demand for a product.
If the strategy is successful, consumers will ask their retailers for the product, the
retailers will ask the wholesalers, and the wholesalers will ask the producers.
Above a pull strategy (left) push strategy (right).
Communication by the manufacturer is not only directed towards consumers to
create demand. A push strategy is where the manufacturer concentrates some of their
marketing effort on promoting their product to retailers to convince them to stock
the product. A combination of promotional mix strategies are used at this stage
aimed at the retailer including personal selling, and direct mail. The product is
pushed onto the retailer, hence the name. A pull strategy is based around the
manufacturer promoting their product amongst the target market to create demand.
Consumers pull the product through the distribution channel forcing the wholesaler
and retailer to stock it, hence the name pull strategy. Organizations tend to use both
push and pull strategies to create demand from retailers and consumers.

Communication Model – AIDA

AIDA is a communication model which can be used by firms to aid them in selling
their product or services. AIDA is an Acronym for Attention, Interest, Desire, and
Action. When a product is launched the first goal is to grab attention. Think, how
can an organization use it skills to do this? Use well-known personalities to sell
products? Once you grab attention how can you hold Interest, through promoting
features, clearly stating the benefit the product has to offer? The third stage is desire,
how can you make the product desirable to the consumer? By demonstrating it? The
final stage is the purchase action; if the company has been successful with its
strategy then the target customer should purchase the product.

58
Promotion through the Product lifecycle-
As products move through the four stages of the product lifecycle different
promotional strategies should be employed at these stages to ensure the healthy
success and life of the product.

Stages and promotion strategies employed. (Product life cycle)

Introduction
When a product is new the organizations objective will be to inform the target
audience of its entry. Television, radio, magazine, coupons etc may be used to push
the product through the introduction stage of the lifecycle. Push and Pull Strategies
will be used at this crucial stage.
Growth
As the product becomes accepted by the target market the organization at this stage
of the lifecycle the organization works on the strategy of further increasing brand
awareness to encourage loyalty.
Maturity
At this stage with increased competition the organization take persuasive tactics to
encourage the consumers to purchase their product over their rivals. Any differential
advantage will be clearly communicated to the target audience to inform of their
benefit over their competitors.
Decline
As the product reaches the decline stage the organization will use the strategy of
reminding people of the product to slow the inevitable.

59
Internet promotion.
The development of the World Wide Web has changed the business environment
forever. Dot COM fever has taken the industry and stock markets by storm. The e-
commerce revolution promises to deliver a more efficient way of conducting
business. Shoppers can now purchase from the comfort of their home 24 hours a day
7 days a week. However, particularly in the UK the e-commerce revolution is
hindered by two factors. Firstly, the cost of logging on to the net. Consumers are still
weary of the time-spent surfing; the high cost is slowing down the take-up. The
number of homes that are linked to the web in the UK is only 25% of all house
owners. If e-commerce businesses are to succeed the home penetration rate of
Internet access must also increase. Secondly, most homes are linked to modems of
56K. As the growth of people signing on-line grows the access speed slows down. In
America most consumers only spend 10 seconds browsing on a web page, before
they change sites, within the UK it is 2 minutes. The future seems to be with ADSL
networks which will speed up access to the Internet dramatically running at 512K
per second. However, again whether this format is adapted depends much on the
cost.
Owning a website is a now a crucial ingredient to the marketing mix strategy of an
organization. Consumers can now obtain instant information on products or services
to aid them in their crucial purchase decision. Sony Japan took pre-orders of their
popular Playstation 2 console over the net, which topped a 1 million after a few
days; European football stars are now issuing press releases over the web with the
sites registered under their own names. Hit rates are phenomenal.

60
SWOT ANALYSIS

Strengths
• Flexible management system.
• Brand image, business experience and good products-cum-services.
• The agents are carefully chosen with good communication skills.
• Service quality which is the crux of their mission.
• Large network branches which helps customers to transact with the company.

Weaknesses
• High targets for financial advisors
• Employees are not highly qualified though
• Most of their expenditure is on advertising

Opportunities

• Better incentives for good performance

• Scope for career growth as well for the employees
• Very good motivation techniques for better employee commitments

Threats
• Employees dedication can become vulnerable because of the risk factor
• Since qualification is not a major criterion, knowledge about insurance is
restricted

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FINDINGS AND RECOMMENDATIONS

The project study report has the following findings:

• The organization functions on the decision taken by the unit level manager
and zonal head
• As of date, ICICI Prulife has sold over 1.5 lakhs of insurance policies
• Due to the increasing concern of people towards their health/life, the life
insurance business has good prospects
• Due to the increase in consumerism, new products are launched regularly
• Communicating to customer queries is not that remarkable
• Perks and incentives are not appreciatable
• Employees are given less importance than that of the targets set
• Punctuality is not an alarming factor at all in ICICI Prulife
• Flexibility at work is encouraged
• They are ranked no 1 in promotional ratings, but they also said ICICI
PRUDENTIAL Life Insurance Co.Ltd.is a branded company and it does not
want any promotional strategy often.
• ICICI PRUDENTIAL Life Insurance Co.Ltd. Advertisements like Chintamani
and Jeetey Raho have created great impacts on their future investments.

62
Recommendations

The insurance companies should now try to identify the gap between current level of
customer service and expectations. Some of the strategies being recommended are as
follows:

• Product differentiation: offering a product that is distinctly different from

other products available in the market.
• Innovativeness: identifying means of delightful customer experience.
• Riders: these are additional offerings along with the main product.
• Flexibility: the company should make their products flexible for the
convenience of their customers.
• Hassle-free service: all bureaucracy in customer interactions should be
eliminated.
• Proper policy documentation: the company should avoid wrong
interpretations and wrong filing of policies.

63
Conclusion
According to the study the company is doing well; but in order to sustain the
competition in the market some more efforts should be taken. The personnel should
work in coordination for the success and smooth functioning of the organization.
The company’s recognition can further be improved by exploiting new segments of
market. They can diversify the product range by venturing into attractive target
segments and innovative financial plans for different age groups.

64
BIBLIOGRAPHY

• Study material of ICICI Prulife.

• Insurance watch.
• Economic times.
• Google.com
• Iciciprulife.com
• Bimaonline.com
• Moneycontrol.com
• Licindia.com
• Prudential.com

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