Final Report 2

ICICI Pru Life Insurance Company Ltd.
2010
1.INTRODUCTION
INSURANCE:
Insurance is a promise of compensation for specific potential
future losses in exchange for a periodic payment. Insurance is
designed to protect the financial well-being of an individual,
company or other entity in the case of unexpected loss. Some
forms of insurance are required by law, while others are
optional. Agreeing to the terms of an insurance policy creates a
contract between the insured and the insurer. In exchange for
payments from the insured (called premiums), the insurer
agrees to pay the policy holder a sum of money upon the
occurrence of a specific event. In most cases, the policy holder
pays part of the loss (called the deductible), and the insurer
pays the rest. Examples include car insurance, health
insurance, disability insurance, life insurance, and business
insurance.
NEED FOR INSURANCE:

1. Superior to an ordinary savings plan as it provides full
protection against risk of death.
2. Encourages and forces compulsory savings unlike other
saving instruments, wherein the saved money can be
easily withdrawn.
3. Provides loan to tie over a temporary difficult phase and is
also acceptable as security for a commercial loan.
4. Offers tax relief to policyholders.
5. Hedges risk against uncertainty.
SDM PG Centre, Mangalore Page 1

ICICI Pru Life Insurance Company Ltd. 2010
6. For a policy taken under the MWP Act 1874, (Married

Women's Property Act), a trust is created for wife and
children as beneficiaries.
7. Based on the concept of sharing of losses, the society will
benefit as catastrophic losses are spread globally.

LIFE INSURANCE:
Life Insurance is an agreement that guarantees payment
of a stated amount of monetary benefits at the end of a
specified term or on the death of the life insured.
NEED FOR LIFE INSURANCE:
Life brings with it many surprises, some pleasant and
some not so and a Life Insurance Plan ensures that you are
better prepared to face uncertainties. In a number of ways:
1. Protection:
You need life insurance to be there and protect the people
you love, making sure that your family has a means to look
after itself after you are gone. It is a thoughtful business
concept designed to protect the economic value of a human life
for the benefit of those financially dependent on him. That is a
good reason. Suppose you are suffered by an injury that keeps
you away from earning? Would you like to be a financial burden
on your family, already losing out on your salary? With a life
insurance policy, you are protected. Your family is protected.
2. Retirement:
Life insurance makes sure that have regular income after
retire and also helps to maintain standard of living. It can

ensure that your post-retirement years will be spent in peace

and comfort.
3. Savings and Investments:

Insurance is a means to Save and Invest. The periodic
premiums are like Savings and you are assured of a lump sum
amount on maturity. A policy can come in really handy at the
time of your child’s education or marriage! Besides, it can be
used as supplemental retirement income.
4. Tax Benefits:
Life insurance is one of the best tax saving options today.
Tax can be saved twice on a life insurance policy-once when
you pay your premiums and once when you receive maturity
benefits. Money saved is money earned.

2.INDUSTRY PROFILE
INSURANCE IN INDIA:
The insurance sector in India has come to a full circle from
being an open competitive market to nationalization and back
to a liberalized market again. Tracing the developments in the
Indian insurance sector reveals the 360-degree turn witnessed
over a period of almost two centuries.
With largest number of life insurance policies in force in
the world, Insurance happens to be a mega opportunity in
India. It is a business growing at the rate of 15-20 per cent
annually and presently is of the order of Rs 450 Billion.
Together with banking services, it adds about 7 per cent to the
country’s GDP. Gross premium collection is nearly 2 per cent of
GDP and funds available with LIC for investments are 8 per cent
of GDP.
Yet, nearly 80 per cent of Indian population is without life
insurance cover while health insurance and non-life insurance
continues to be below international standards. In addition, this
part of the population is subject to weak social security and
pension systems with hardly any old age income security. This
is an indicator that growth potential for the insurance sector is
immense.

A well-developed and evolved insurance sector is

necessary for economic development as it provides long-term
funds for infrastructure development and at the same time
strengthens the risk taking ability. It has estimated that, over
the next ten years India would require investments of the order
of one trillion US dollar. The Insurance sector, to some extent,
can enable investments in infrastructure development to
sustain economic growth of the country.
Insurance is a federal subject in India. Two legislations
govern the sector- The Insurance Act- 1938 and the IRDA Act-
1999. The insurance sector in India has come to a full circle
from being an open competitive market to nationalization and
back to a liberalized market again. Tracing the developments in
the Indian insurance sector reveals the 360-degree turn
witnessed over a period of almost two centuries.
HISTORICAL PERSPECTIVE ABOUT LIFE

INSURANCE IN INDIA:
The history of life insurance in India dates back to 1818
when it was considered as a means to provide for English
Widows. Interestingly in those days, a higher premium was
charged for Indian lives than the non-Indian lives, as Indian
lives were considered more risky for coverage.
The Bombay Mutual Life Insurance Society started its
business in 1870. It was the first company to charge same
premium for both Indian and non-Indian lives. The Oriental
Assurance Company established in 1880. The General
insurance business in India, on the other hand, can trace its
roots to the Triton (Tital) Insurance Company Limited, the first

general insurance company established in the year 1850 in
Calcutta by the British. Until the end of nineteenth century,
insurance business was almost entirely in the hands of
overseas companies.
Insurance regulation formally began in India with the
passing of the Life Insurance Companies Act of 1912 and the
provident fund Act of 1912. Several frauds during 20's and 30's
sullied insurance business in India. By 1938, there were 176
insurance companies. The first comprehensive legislation was
introduced with the Insurance Act of 1938 that provided strict
State Control over insurance business. The insurance business
grew at a faster pace after independence. Indian companies
strengthened their hold on this business but despite the growth
that was witnessed, insurance remained an urban
phenomenon.
The Government of India in 1956, brought together over
240 private life insurers and provident societies under one
nationalized monopoly corporation and Life Insurance
Corporation (LIC) was born. Nationalization was justified
because it would create much-needed funds for rapid
industrialization. This was in conformity with the Government's
chosen path of State lead planning and development.
The (non-life) insurance business continued to thrive with
the private sector until 1972. Their operations were restricted
to organized trade and industry in large cities. The general
insurance industry was nationalized in 1972. India Assurance
Company, Oriental Insurance Company and United India

Insurance Company are subsidiaries of the General Insurance

Company (GIC).
Important 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, foreign insurers and provident societies were
took over by Central government and nationalized. LIC formed
by an Act of Parliament- LIC Act 1956- with a capital
contribution of Rs. 5 crores from the Government of India.
Important milestones in the general insurance

business in India are:
1907: The Indian Mercantile Insurance Ltd. set up- the first
company to transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance
Association of India, frames a code of conduct for ensuring fair
conduct and sound business practices
1968: The Insurance Act amended to regulate investments and
set minimum solvency margins and the Tariff Advisory
Committee set up.
1972: The general insurance business in India nationalized

through The General Insurance Business (Nationalization) Act,
1972 with effect from 1st January 1973. 107 insurers
amalgamated and grouped into four companies- the National
Insurance Company Limited, the New India Assurance Company
Limited, the Oriental Insurance Company Ltd. and the United
India Insurance Company Ltd. GIC incorporated as a company.
INSURANCE SECTOR REFORMS:

In 1993, Malhotra Committee- headed by former Finance
Secretary and RBI Governor R.N. Malhotra- formed to evaluate
the Indian insurance industry and recommend its future
direction. The Malhotra committee was setup with the objective
of complementing the reforms initiated in the financial sector.
The reforms was aimed at creating a more efficient and
competitive financial system suitable for the requirements of
the economy keeping in mind the structural changes currently
underway and recognizing that insurance is an important part
of the overall financial system where it was necessary to
address the need for similar reforms. In 1994, the committee
submitted the report and some of the key recommendations
included:
1. Structure: Government stake in the insurance Companies
must brought down to 50%. Government should take over the
holdings of GIC and its subsidiaries so that these subsidiaries
can act as independent corporations. All the insurance
companies must have greater freedom to operate.

2. Competition: Private Companies with a minimum paid up

capital of Rs.1bn should allow entering the sector. No Company
should deal in both Life and General Insurance through a single
entity. Foreign companies were allowed to enter the industry in
collaboration with the domestic companies. Postal Life
Insurance was allowed to operate the rural market. Only one
State Level Life Insurance Company should be allowed to
operate in each state.
3. Regulatory Body: The Insurance Act should be
changed. An Insurance Regulatory body should be set up.
Controller of Insurance- a part of the Finance Ministry- should
be made independent.
4. Investments: Mandatory Investments of LIC Life Fund in
government securities to was reduced from 75% to 50%. GIC
and its subsidiaries are not to hold more than 5% in any
company (there current holdings to be brought down to this
level over a period of time)
5. Customer Service: LIC should pay interest on delays in
payments beyond 30 days. Insurance companies must be
encouraged to set up unit linked pension plans. In insurance
industry, Computerization of operations and updating of
technology are to be carried out. The committee emphasized
that in order to improve the customer services and increase the
coverage of insurance policies, industry should be opened up to
competition. But at the same time, the committee felt the need
to exercise caution as any failure on the part of new players
could ruin the public confidence in the industry. Hence, it was

decided to allow competition in a limited way by stipulating the

minimum capital requirement of Rs.100 Cores.
The committee felt the need to provide greater autonomy
to insurance companies in order to improve their performance
and enable them to act as independent companies with
economic motives. For this purpose, it had proposed setting up
an independent regulatory body- The Insurance Regulatory and
Development Authority.
A reform in the Insurance sector was initiated with the
passage of the IRDA Bill in Parliament in December 1999. The
IRDA since its incorporation as a statutory body in April 2000
has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies. Since being
set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. The other
decision taken simultaneously to provide the supporting
systems to the insurance sector and in particular the life
insurance companies was the launch of the IRDA online service
for issue and renewal of licenses to agents. The approval of
institutions for imparting training to agents has also ensured
that the insurance companies would have a trained workforce
of insurance agents in place to sell their products.
The Government of India liberalized the insurance sector
in March 2000 with the passage of the Insurance Regulatory
and Development Authority (IRDA) Bill, lifting all entry
restrictions for private players and allowing foreign players to
enter the market with some limits on direct foreign ownership.
Under the current guidelines, there is a 26 per cent equity cap

for foreign partners in an insurance company. There is a

proposal to increase this limit to 49 per cent.
The opening up of the sector is likely to lead to greater
spread and deepening of insurance in India and this may also
include restructuring and revitalizing of the public sector
companies. In the private sector 12 life insurance and 8 general
insurance companies have been registered. A host of private
Insurance companies operating in both life and non-life
segments have started selling their insurance policies since
2001.
THE INSURANCE REGULATORY AND

DEVELOPMENT AUTHORITY:
Reforms in the Insurance sector were initiated with the
passage of the IRDA Bill in Parliament in December 1999. The
IRDA since its incorporation as a statutory body in April 2000
has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies. The other
decisions taken simultaneously to provide the supporting
systems to the insurance sector and in particular the life
insurance companies launched the IRDA‟s online service for
issue and renewal of licenses to agents.
The approval of institutions for imparting training to
agents has also ensured that the insurance companies would
have a trained workforce of insurance agents in place to sell
their products, which are expected to be introduced by early
next year.

Since being set up as an independent statutory body the

IRDA has put in a framework of globally compatible regulations.
In the private sector 12 life insurance and 6 general insurance
companies have been registered.
INSURANCE MARKET IN INDIA:

The India Insurance market despite having a highly
elaborate history spanning almost two centuries, has come of
age only in last 50 years after the formation of the Life
Insurance Corporation (LIC) of India in 1956 and the entry of
private companies into the market in 2000.
Traditionally the Indian Insurance Market had centred on
the life insurance until recently, a host of other insurance
policies covering a diverse range of issues and objects like
Medical Insurance, Accident Insurance, Fire Insurance,
Automobile Insurance and other policies which fall under the
category of general insurance are being provided by various
private insurance companies.
PERFORMANCE OF THE INDIAN INSURACE

MARKET-A REPORT:
The following points will provide you an insight into the
insurance market in India and its fast expanding prospects. The
report is well supported by data based on detailed analysis that
would help investors, financial service providers and global
banking players to venture into the Indian insurance market.

Taking into account the changing socioeconomic

demographics rate of GDP growth, behaviour of consumers,
and occurrences of natural calamities at regular intervals the
market of Life Insurance in India is expected grow to the value
around US $ 41.44 billion by the year 2009. The Market is
expected to grow at a compounded annual growth rate (CAGR)
of more than 200% year over year (YOY) from year 2006
onwards.
• 65% of the general insurance market is controlled by
private house that already exists in the market.
• However in automobile insurance, public sector covers a

substantial 68% of the total market value.
• Among individual companies that are worthy of

mentioning, ICICI Lombard enjoys a whopping 53% market
share in Accident Insurance while the remaining 47% is
shared by New India Assurance and United India Insurance
both belonging to the public sector
The other key players of the market include:

1. In Public Sector:
Life insurance Corporation(LIC) of India, National Insurance
Company Limited, Oriental Insurance Limited, New India
Assurance Company Limited and United India insurance
Company Limited.
2. In Private Sector:
ICICI prudential Life Insurance, Bajaj Allianz, SBI Life, HDFC
Standard, Birla Sun life, Aviva Life Insurance, Kotak Mahindra

old mutual, Max New York Life and Met life, Tata AIG Life, ING
Vysya. Thus, the ever increasing population of the country will
ensure constant boom in the India Insurance market in the
distant future.
3.COMPANY PROFILE: ICICI PRUDENTIAL
ICICI Prudential Life Insurance Company is a joint venture

between ICICI Bank - one of India’s foremost financial service
companies and Prudential plc. - A leading international financial
service group headquartered in the United Kingdom. Total
capital infusion stand at Rs 47.80 billion, with ICICI Bank
holding a stake of 74% and prudential plc. Holding 26%. They
began operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA).
Today, our nation-wide team comprises of over 2000 branches
(inclusive of 1,100 micro offices), over 2,58,000 advisors; and
24 banc assurance partners.
ICICI prudential is the first Insurer in India to receive a
National Insurer Financial Strength rating of AAA (Ind) from
Fitch rating. 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
Brand‟.

ICICI PRUDENTIAL EDGE:

The ICICI Prudential edge comes from our commitment to our
customer, in all that we do-be it product development,
distribution, the sales process or servicing...
I. The products have been developed after a clear and
through understanding of customer’s need. It is this
research that helps us develop Education plans that offer
the ideal way to truly guarantee the 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 fund you might need to
recover from dreaded disease.
II. Having the right product is the first step, but it’s equally
important to ensure that, the customer 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 the products
III. Robust risk management and underwriting practices form
the core business. With clear guidelines in place, we
ensure equitable costing of risks, and thereby ensure a
smooth and hassle-free claim process.
IV. Entrusted with helping our customer meet their long-term
goals, they adopt an investment philosophy that aims to
achieve risk adjusted returns over the long-term.
V. Last but definitely not the least, our 32000 plus strong
team is given the opportunity to learn and grow, every
day in 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.
OUR VISION AND VALUES

OUR VISION:
“To be the dominant life, Health and Pension player build
on trust by world class people and service”
This we hope to achieve by:
• Understanding the need of customers and offering them
superior products and service
• Leveraging technology to service customer quickly,
efficiently and conveniently.
• Developing and implementing superior risk management
and investment strategies to offer sustainable and stable
return to the policyholders.
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.
OUR VALUES:
Every member of the ICICI Prudential team is committed
to 5 core values: Integrity, Customer First, Boundary less,
Ownership, and Passion. These values shine forth in all we do,
and have become the keystones of our success.
PROMOTERS:

ICICI Bank Limited:

ICICI Bank(NYSE: BSE) is India’s largest private sector
bank and the second largest bank in the country, with
consolidated the total assets of $121 billion as of September
30, 2008.
PRUDENTIAL PLC:
Established in London in 1848, Prudential Plc, through its
businesses in the UK, Europe, US, Asia and the Middle East,
provides retail financial services products and services to more
than 21 million customers, policy holder and unit holders and
manages over £256 billion of funds worldwide (as of June 30,
2008). In Asia, prudential is the leading Europe-based life
insurer 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
asset management companies in terms of overall assets
sourced in Asia ex-Japan with £34.3 billion funds under
management (as of June 30, 2008) and operations in ten
markets including China, Hong Kong, India, Japan, Korea,
Malaysia, Singapore, Taiwan, Vietnam and United Arab
Emirates.
MANAGEMENT PROFILE:
BOARD OF DIRECTORS:
The ICICI Prudential life Insurance Company Limited Board
comprises reputed people from the finance industry both from
India and abroad.

1. Ms.Chanda D. Kochhar, Chairperson

2. Mr. N. S. Kannan, Director
3. Mr. K. Ramkumar, Director
4. Mr. Barry Stowe, Director
5. Mr. Adrian O’Connor, Director
6. Mr. Keki Dadiseth, Independent Director
7. Prof. Marti G. Subrahmanyam, Independent Director
8. Ms. Rama Bijapurkar, Independent Director
9. Mr. Vinod Kumar Dhall, Independent Direct
10. Mr. V. Vaidyanathan, Managing Director & CEO
MANAGEMENT TEAM:
The ICICI Prudential life Insurance Company Limited Board
comprises reputed people from the finance industry both from
India and abroad.
1. Mr.V.Vaidyanathan, Managing Director & CEO
2. Dr. Avijit Chatterjee, Appointed Actuary
3. Mr. Puneet Nanda, Executive Vice President
DISTRIBUTION:
ICICI Prudential Life has one of the largest distribution
networks amongst private life insurers in India. It has strong
presence across India with over 2000 branches ( including
1,100 micro- offices) and an advisor base of over 2,58,000 (as
on November 30,2008).

The company has 24 banc assurance partners having tie-ups

with ICICI Bank, Bank of India, 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, Jharkhand Gramin Bank, Solapur
Gramin Bank, Narmada Malwa Gramin bank, Wainganga
Kshetriya Gramin Bank, Ratnagiri District Central Co-Op Bank,
Seva Vikas Co-Op bank, Sangli Urban Co- Operative bank, The
Haryana State Co- Operative Bank, Renuka Nagrik Sahakari
Bank, Amanath Co-Operative Bank, Arvind Sahakari Bank,
Bhandara Urban Co Operative Bank.
PRODUCTS:
INSURANCE SOLUTION FOR INDIVIDUALS:
ICICI Prudential Life Insurance offers a range of innovative,
customer-centric product that meets the needs of customers at
every stage.
1. LIFE INSURANCE PLANS:
• Education Insurance Plans
• Wealth Creation Plans
• Protection Plans
2. PENSION & RETIREMENT SOLUTIONS
• Life Time Pension Maxima
• Life Stage Pension Advantage

3. HEALTH PRODUCTS SUIT

• Hospitalisation Plans
1. MediAssure
2. Hospital Care II
• Critical Illness Pans
1. Crisis Cover

AWARDS AND RECOGNITIONS:

1. AWARDS:
• ICICI Prudential Life was awarded the Life Insurance

Company of the Year at the 12th Asia Insurance Industry
Award 2008.
• ICICI Prudential Life won the Award for Brand Excellence in

the Banking and Financial services category at the Asia
Brand Congress 2008.
• Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life

Insurance Co. Ltd. was adjudged the Businesswoman of
the year at The Economic Times Awards for Corporate
Excellence, 2007-08.
• ICICI Prudential Life won the ICICI Group Marketing

Excellence Award 2008 in three key categories for its
marketing initiatives.

• 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’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.

• Innovation Award for launching Diabetes Care – Prudence

Award 2006. People Award for excellence in training and
people development - Prudence Award 2006.
• Most Trusted Private Life Insurer. The Economic Times - A

C Nielsen Survey of Most Trusted Brands – 2003, 2004 and
2005.
• 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.
2. RECOGNITIONS:
• ICICI Prudential Life was recognized as the most trusted
brand amongst private life insurers in the Economic
Times-Most Trusted Brand survey 2008.
• 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.
4.ORGANIZATION STRUCTURE
VICE PRESIDENT
REGIONAL MANAGER
BANC ASSURANCE &

ALLIANCE MANAGER
AREA MANAGER
SALES MANAGER
SENIOR FINACIAL
SERVICE MANAGER
ASSOCIATIVE FINACIAL
MANAGER FINANCIAL SERVICE
CONSULTANT
5.RESEARCH METHODOLOGY
IMPORTANCE OF THE STUDY:
The main aim of the study can be summarized as a study

into the consumer behaviour in the process of selling of
insurance products and thus it is primarily based on the study
of consumer behaviour i.e. how individuals make decisions to
spend their available resources (time, money, effort) on various
items. As marketers, it is important for them to recognize why
& how individuals make their consumption decisions so that we
can make better strategic marketing decisions, if marketers
understand consumer behaviour they are able to predict how
consumers are likely to react to various informational & their
marketing decisions concerning product, price, promotion &
distribution can be altered according to consumer’s
perceptions.
OBJECTIVES:
The main objective of this project is to study the customer
behaviour and various reactions of customers with reference to
ICICI prudential life insurance co., and suggest ways to improve

its marketing efforts.
• To Study the tends in Life Insurance Market

• To Study the profile of ICICI Prudential Life Insurance Co.,
• To Study the investors behaviour with respect to ICICI life
insurance
• To Analyse the investors’ perceptions about ICICI life
insurance
SCOPE:
The study is confined to the life insurance market, about

the investor preferences towards life insurance and a specific
focus on the ICICI Prudential Life Insurance has been made.
• To understand the psychology of customer behaviour and

the reactions of the customers when they are approached.
• To develop an overall view of the insurance sector in the
company.
• To understand the selling mechanism and various
techniques involved in the marketing of insurance
products
• To understand customers perceptions regarding for opting
of life insurance.
RESEARCH METHODOLOGY:

Methodology selected in order to realize the research

objective of the present study of survey by interview and
through telephone.
RESEARCH DESIGN:
The study conducted is exploratory in nature. It involves a
survey of consumers for understanding consumer behaviour
and various reactions of customers in reference to ICICI
Prudential Life Insurance Co.
DATA SOURCE:
The primary data was collected from the consumers.
RESEARCH INSTRUMENT:
The research instrument used was a structured closed

questionnaire backed by personal interview and through
telephone for data collection.
SAMPLE SIZE: 110 CONSUMERS
SAMPLING PROCEDURE:
Convincing Sampling Method - Sample size of 110

consumers is covered from Gokulum, Siddartha Layout &
Yadovgiri , Mysore.
The completed questionnaire were compiled, tabulated

and analysed so as to understand and find solutions, which will
guide on reaching the objectives of the study.

LIMITATIONS
• Only life Insurance market has been studied

• Only few investors were considered for the study
• The study was carried out in Mysore only, hence the results
cannot be extended to National level.
• Few respondents are not cooperative enough owing to their
busy Schedule.
• Time constraint had become a hindrance to go for large sampling.
6.SWOT ANALYSIS
This part of the study is based on the industry and

company analysis of ICICI Prudential Life Insurance
Company LTD.
Strength
• ICICI Prudential is the 1st life insurance company to

introduce UNIT LINKED, PENSION PRODUCTS AND LIFE
TIME it can get the pioneer advantage.
• Prudential is the 156 year old company founded in 1848
so it has full fledge experience in this industry.
• Company has created a brand name.
Weaknesses

• It has to do operation within the boundary of IRDA.

• No option in rural area.
• Yet to build a strong distribution network in the market.
Opportunity
• Today ICICI Prudential covers 40% Market so yet there is a

great potentiality to increase market share.
• Insurance plan like pension plan, child plan and
investment plan of ICICI Prudential go good response from
the market. So in future company can take benefit for it.
• The brand name that creates ICICI Prudential and
awareness level of it is comparatively quite higher than
competition. So it will be helpful in future while lunching
new innovation products.
• Untapped market of India.
Threats
• It is private company so there is a doubt about solvency

and liquidity among the general people.
• Change in the environmental factors will affect the
company.
• Large distribution network of LIC and trust of people in LIC.
( competition)

7.DATA ANALYSIS AND INTERPRETATION
1. RESPONDENTS MONTHLY INCOME DETAILS
QUANTUMN TOTAL PERCENTAGE

OF RESPONDENTS
MONTHLY
INCOME
5000-10000 39 35%
10000-15000 45 41%
15000-20000 16 15%
ABOVE 20,000 10 9%
T 110 100%
OTAL

45%
40%
35%
30% 5000-10000
25% 10000-15000
20% 15000-20000
15% ABOVE 20,000
10%
5%
0%
INFERENCE: 41% of the respondents earning 10000/- to

15000/- income, 35% are 5000/- to 10000/-, 15% are 15000/- to
20000/- and 9% of the respondents earning more than 20000/-.
2. PERCENTAGE OF AMOUNT RESPONDENTS WOULD LIKE

TO SAVE FROM THEIR MONTHLY INCOME
PERCENTAGE OF TOTAL PERCENTAGE

AMOUNT RESPONDEN %
RESPONDENTS LIKE TS
TO SAVE FROM
MONTHLY INCOME
5% 14 13
5%-10% 33 31
10%-20% 47 42
20%-30% 9 8
ABOVE 30% 7 6
TOTAL 110 100

45%
40%
35%
30% 5%
25% 5% -10%
20% 10% -20%
15% 20% -30%
10% ABOVE 30%
5%
0%
PERCENTAGE %
FINDINGS: This is clear from the above figures that out of 110
respondents 42% would like to save 10-20% from their monthly
income, 31% of them would like to save 5-10%, 13% want to
save 5%, 8% want to save 20-30% and 6% want to save above
30% of their income.
3. RESPONDENTS OPINION ON ICICI PRUDENTIAL LIFE

INSURANCE COMPANY
OPINION ON TOTAL NO PERCENTAGE
ICICI OF %
PRUDENTIAL RESPONDE
COMPANY NTS
GOOD 105 96
BAD 5 4
NO OPINION 0 0
TOTAL 110 100

4%
96%
FINDINGS: It is clear from the above sample size of 110

respondents 96% of the respondents are having good opinion
on ICICI prudential life insurance company, 4% are having bad
opinion on the company.
4. RESPONDENTS VARIOUS OPTIONS GENERALLY

CONSIDER FOR INVESTMENT
RESPONDENTS TOTAL NO PERCENTAGE

OPTIONS OF RESPONSES %
INVESTMENTS
FIXED DEPOSITS 29 26
MUTUAL FUNDS 20 18
INSURANCE 32 29
SHARES 25 23
CHIT FUNDS 4 4
TOTAL 110 100

4%
23% 26%
18%
29%
FINDINGS: It is clear from the above sample that out 110

respondents 29% like to invest in insurance, 26% like to invest
in fixed deposits, 23% like to invest in shares, 18% like to
invest in mutual funds and 4% like to invest in chit funds.
5. RESPONDENTS OPINIONS ON FACTORS CONSIDER

WHILE INVESTING THEIR MONEY
FACTORS TOTAL NO OF PERCENTAGE

RESPONSES %
PROFITS 37 34
LIQUIDITY 6 5
SAFETY 57 52
TAX BENEFITS 10 9
TOTAL 110 100

9%
34%
52% 5%
FINDINGS: 52% of the respondents consider safety while

investing the money, 34% return, 9% tax benefits and 5% of
the respondents consider liquidity while investing the money.
6. RESPONDENTS OPINION ON IMPACT ON THEIR

SAVINGS WITH THE CURRENT BUDGET-2010
IMPACT ON TOTAL PERCENTAGE

SAVINGS RESPO %
WITH NSES
37%
CURRENT
BUDGET-2010
YES 69 63% 63
NO 41 37
TOTAL 110 100

7. RESPONDENTS PREFERED TIME HORIZON FOR

INVESTMENT (INYEARS)
TIME HORIZON TOTAL PERCENTAGE

OF INVESTMENT RESPONSES
%
(IN YRS)
MINIMUM 1-2 33 30
YEARS
MINIMUM 1-3 34 31
YEARS
MINIMUM 1-4 23 21
YEARS
ABOVE 5 YEARS 20 18
TOTAL 110 100
18%
30%
21%
31%
FINDINGS: It is clear from the above sample of 110

respondents, 31% of the respondents preferred 1-3 years as
time horizon to invest, 30% are 1-2years, 21% are 1-4years and
18% are more than 5years as time horizon to investment.

8. RESPONDENTS AWARE ABOUT CAPITAL GUARANTEE

SCHEMES OF ICICI PRUDENTIAL LIFE INSURANCE
COMPANY
AWARENESS TOTAL PERCEBTAGE

ABOUT ICICI RESPONSES
%
PRULIFE SCHEMES
YES 58 53
NO 52 47
TOTAL 110 100
47%
53%
FINDINGS: It is clear from the above sample of 110

respondents 53% of the respondents are aware of ICICI
PRUDENTIAL LIFE INSURANCE COMPANY schemes and 47% are
not aware of the company schemes.
9. RESPONDENTS KNOW ABOUT THE SCHEMES THROUGH

DIFFERENT MARKETING CHANNELS

RESONDENTS KNOW TOTAL PERCENTAGE

ABOUT THE SCHEMES RES %
PO
NSE
S
ADVISORS OF 29 26
COMPANY/EMPLOYEE
MANAGEMENT 16 15
TRAINEES
ADVERTISEMENTS 40 36
OTHERS 25 23
TOTAL 110 100
MANAGEMENT
TRAINEES
OTHERS
15%
23%
ADVERTISEMENTS
ADVISORS
/EMPLOYESS
36%
26%
FINDINGS: 36% of the respondents came to know about the

capital guarantee schemes through Advertisements, 26%
through Advisors/Employess,15% through Management
Trainees and 23% from others.
10. RESPONDENTS INTERESTED ORGANIZATIONS FOR

INVESTING THEIR MONEY

INTRESTED TOTAL PERCENTAGE

ORGANIZATIONS RESPONSES %
FOR INVESTMENTS
LIC 58 52.72
ICICI PRU LIFE 32 29.09
SBI LIFE INSURANCE 6 5.45
HDFC 5 4.54
OTHERS 9 8.18
TOTAL 110 100
RESPONDENTS INTRESTED ORGANZATIONS FOR THIER

INVESTMENTS
60.00%
52.72%
50.00%
E
G 40.00%
A
T
N 30.00% 29.09%
E
C
R
E 20.00%
P
8.18%
10.00% 5.45% 4.54%
0.00%
1
LIC ICICI PRULIFE SBI INSURANCE HDFC OTHERS
FINDINGS: 52.72% of the respondents are interested for

investing their money in LIC, 29.09% in ICICI, 5.45% in SBI,
4.54% in HDFC and 8.18% in others.
11. RESPONDENTS OPINION ON THE BENEFITS OF THE

SCHEMES OF ICICI PRUDENTIAL LIFE INSURANCE
COMPANY
RESPONDENTS ON TOTAL PERCENTAGE

BENEFITS OF ICICI RESPONSES %

SCHEMES
REASONABLE 62 56
NOT REASONABLE 8 7
CAN NOT SAY 40 37
TOTAL 110 100
60%
50%
40%
30%
20%
10%
0%
REASONABLE NOT CANNOT SAY
REASONABLE
FINDINGS: 56% of the respondent’s opinion on the benefits of

the schemes of ICICI prudential life insurance company are
reasonable, 7% is not reasonable, 37% of the respondents can’t
say.
12. RESPONDENTS OPINION ON INCREASE OF MARKET

SHARE WITH THESE SCHEMES OF ICICI PRUDENTIAL LIFE
INSURANCE COMPANY
RESPONDENTS TOTAL PERCENTAGE

OPINION ON RESPONSES %
INCREASE OF
MARKET SHARE
YES 67 61

NO 14 13
CAN’T SAY 29 26
TOTAL 110 100
OPINIONS OF RESPONDENTS REGARDING THE INCREASING OF

MARKET SHARE WITH THESE SCHEMES OF ICICI
NO
13%
YES
61%
CANNOT SAY
26%
YES NO CANNOT SAY
FINDINGS: 61% of respondents opined that the benefits given

by ICICI PRU are satisfied, 13% respondents are not satisfied
and 37% can’t say.
13. RESPONDENTS OPINION ON THE CAPITAL

GUARANTEE SCHEMES OF ICICI PRUDENTIAL LIFE
INSURANCE COMPANY

RESPONDENTS POOR TOTAL PERECENTAGE

12%
OPINION ON ICICI RESPONSES %
SCHEMES
AVERAGE
GOOD 66 60
21%
EXCELLENT 8 7
AVERAGE
60%
GOOD 23 21
EXCELLE
POOR NT 13 12
7%
TOTAL 110 100
FINDINGS: 60% of the respondents opined that capital

guarantee schemes are Average, 21% good, 7% Excellent and
12% Poor.
14. AGE OF THE RESPONDENTS
RESPONDENTS AGE PERCENTAGE

%
BELOW 30 18
30-40 39
40-50 33
ABOVE 50 10
TOTAL 100

10% 18% 1
2
33% 3
39% 4
FINDINGS: From the above sample of 110 respondents 18%

are below the age of 30.From the above sample of 110
respondents 39% are the age group of 30-40.From the above
sample of 110 respondents 33% are age group of 40-50.From
the above sample of 110 respondents 10% are the age group of
above 50.
8.FINDING AND SUGGESTIONS
OVERALL FINDINGS:
•Majority of the people (69%) know about ICICI PRU LIFE.

• Most of the people (42.72%) have very good opinion about
ICICI PRU LIFE.
• By this research it is clear that most of the respondents
consider safety while investing their money.
• Most of the people (47.72%) are interested in saving 10%-
20% from their monthly income for their future period.
• Majority of the respondents take insurance to secure their
lives and for tax benefits and also for future profits.

• Most of the people are not proper awareness regarding

the schemes of ICICI PRU LIFE.
• Most of the people are choosing LIC for their investments.
And less no of people are choosing ICICI PRU LIFE to
invest their money.
•Most of the respondents have given the reasonable
opinion on the benefits given by ICICI PRU LIFE schemes
and they had good opinion on the schemes.
•Most of the respondents have given an opinion that they
can invest their money up to a time horizon of 1-3 years.
SUGGESTIONS
•Most of the people are not having any proper awareness

regarding the different products of the company so by
educating and providing proper information to them we
can easily attract them.
•To create awareness in the people by conducting intensive
customer contact and gathering programs.
•Increase more no of capital guarantee schemes with low
premiums so that middle class and rural customers can
be attracted.
•The schemes should be introduced according to the needs
and profits of customers.

•Along with the product, service has to be given ample

opportunity to differentiate along the competitors as
styling and services.
•Company should maintain continuous relationships with
the employees and customers to increase the market
share.
• Continuous maintenance of quality in services to
maintain the brand loyalty.
•As technological improvements are increasing use the
opportunities well and to help the customer a search
facility should be include in order searching for key term
from the website etc.
9.CONCLUSION:
After overhauling the all situation that boosted a number of
Pvt. Companies associated with multinational in the Insurance
Sector to give befitting competition to the established
behemoth ICICI in private sector, I come at the conclusion that
• There is very tough competition among the private

insurance companies on the level of new trend of
advertising to lull a major part of Customers.

• The entries of more Pvt. Players in the Insurance Sector

have expanded the product segment to meet the different
level of the requirement of the customers. It has brought
about greater choice to the customers.
• ICICI has vast market and very firm grip on its oldl
customers and monopoly of life insurance products.
• Availability of ICICI is perfect.
IRDA is also playing very comprehensive role by regulating

norms mandating to private players in this sector, that
increases the confidence level of the customers to the private
players.
10.BIBLIOGRAPHY:
1. http://www.iciciprulife.com
2. http://www.google.com
3. http://www.wikipedia.com
4. http://business.mapsofindia.com

11.A Market Survey On Consumer Behavior

on Capital Guarantee Schemes With
Reference to ICICI Prudential Life Insurance
Company
Respected Sir/Madam,
I, Devnag G, pursuing MBA II year as part

of the curriculum, I am undergoing summer project in ICICI
Prudential Life Insurance Company. Hence, I request you to
kindly extend your co-operation by filling this Questionnaire
and the information provided will be kept confidential and used
for only academic purpose.

Name:
Age:
Occupation: contact no:
1) What is the Quantum of your Monthly Income? [

]
(A) 5000-10000 (B) 10000-15000
(B) 15000-20000 (D) ABOVE 20,000
2) What is the percentage of Amount you would like to save

from Your
income? [ ]
(a) 5% (b) 10% (c) 10%-20% (d) 20%-30% (e)

Above 30%
3) Your opinion on ICICI Prudential Life Insurance Company?

[ ]
(a)Good (b) Positive (c) Negative (d) Better
4) What are the various options generally you consider for

Investment?
[ ]
(a)Fixed Deposits (b) Mutual Funds (c) Insurance (d)

Shares
(e) Chit Funds

5) What are the factors you consider while choosing your

Investment? [ ]
(a) Profits (b) Liquidity (c) Safety (d) Tax Benefits
6) Do you feel that there is Impact on your Savings with the

Current
Budget? [ ]
(a) Yes (b) No
7) What is your preferred Time Horizon of Investment (in

Years)? [ ]
Min 1- 2years (b) 1-3 years (c) 1- 4years ( d) Above

5years
8) Are you Aware of Capital Guarantee Schemes of ICICI ?

[ ]
(a)YES (b)NO
9) How you know about the Schemes? [ ]
(a)Advisors/Employess (b) Management Trainees (c)

Advertisements
(d) others
10) Which organization will you choose for your

investments ? [ ]
(a)LIC (b) ICICI PRU LIFE (c) SBI INSURANCE (d) HDFC
(e) OTHERS

11) Your view on Benefits given by ICICI Schemes? [

]
(a)Reasonable (b) Not Reasonable (c) cannot say
12) Do you feel that Market Share of ICICI can be increased

with these
Capital guarantee Schemes? [ ]
(a)Yes (b) No
13) What is the opinion on the Capital Guarantee Schemes of

ICICI
Prudential Life Insurance company [ ]
a) goodb) excellent c) average d) poor
14) Age of the respondents [ ]
a) below 30 yearsb) 30 – 40 years
c) 40 – 50 years d) above 50 years
15) Suggest any Measures to increase the Market Share:
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ICICI Pru Life Insurance Company Ltd.

NEED FOR INSURANCE:

SDM PG Centre, Mangalore Page 1

6. For a policy taken under the MWP Act 1874, (Married

benefit as catastrophic losses are spread globally.

SDM PG Centre, Mangalore Page 2

ensure that your post-retirement years will be spent in peace

3. Savings and Investments:

SDM PG Centre, Mangalore Page 3

SDM PG Centre, Mangalore Page 4

A well-developed and evolved insurance sector is

HISTORICAL PERSPECTIVE ABOUT LIFE

roots to the Triton (Tital) Insurance Company Limited, the first

SDM PG Centre, Mangalore Page 6

Insurance Company are subsidiaries of the General Insurance

Important milestones in the life insurance

Important milestones in the general insurance

1972: The general insurance business in India nationalized

INSURANCE SECTOR REFORMS:

SDM PG Centre, Mangalore Page 8

2. Competition: Private Companies with a minimum paid up

SDM PG Centre, Mangalore Page 9

decided to allow competition in a limited way by stipulating the

SDM PG Centre, Mangalore Page 10

for foreign partners in an insurance company. There is a

THE INSURANCE REGULATORY AND

SDM PG Centre, Mangalore Page 11

Since being set up as an independent statutory body the

INSURANCE MARKET IN INDIA:

PERFORMANCE OF THE INDIAN INSURACE

SDM PG Centre, Mangalore Page 12

Taking into account the changing socioeconomic

• However in automobile insurance, public sector covers a

• Among individual companies that are worthy of

The other key players of the market include:

SDM PG Centre, Mangalore Page 13

3.COMPANY PROFILE: ICICI PRUDENTIAL

ICICI Prudential Life Insurance Company is a joint venture

SDM PG Centre, Mangalore Page 14

ICICI PRUDENTIAL EDGE:

SDM PG Centre, Mangalore Page 15

engaged and enthusiastic, so that they can deliver on our

OUR VISION AND VALUES

SDM PG Centre, Mangalore Page 16

ICICI Bank Limited:

SDM PG Centre, Mangalore Page 17

1. Ms.Chanda D. Kochhar, Chairperson

SDM PG Centre, Mangalore Page 18

The company has 24 banc assurance partners having tie-ups

SDM PG Centre, Mangalore Page 19

3. HEALTH PRODUCTS SUIT

SDM PG Centre, Mangalore Page 20

AWARDS AND RECOGNITIONS:

• ICICI Prudential Life was awarded the Life Insurance

• ICICI Prudential Life won the Award for Brand Excellence in

• Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life

• ICICI Prudential Life won the ICICI Group Marketing

SDM PG Centre, Mangalore Page 22

• Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life

• ICICI Prudential Life’s, retirement solutions campaign for

SDM PG Centre, Mangalore Page 23

• Innovation Award for launching Diabetes Care – Prudence

• Most Trusted Private Life Insurer. The Economic Times - A