A

PROJECT REPORT ON

“Target Marketing for the Position of Advisor”

Submitted For the Partial Fulfillment of

POST GRADUATE DIPLOMA IN MANAGEMENT

2008-10

Submitted To Submitted By:

Prof. P.K.Agarwal Ashish Kumar Jha

Director Roll no: M08023

IIMT PROFESSIONAL COLLEGE

IIMT Nagar, Ganga Nagar, Mawana Road, Meerut-250001
Ph:-91-121-2620284, 2620287, FAX: 91-121-2649606, 2621006
Email :- directorprofessionaliimt@gmail.com ; Web Site:-
www.iimtindia.net

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 Acknowledgement

My sincere thanks to Dr.P K Agarwal of IIMT Professional College, Meerut for

his support and encouragement in execution of my training and preparation of my

report.

This project would have been difficult to complete, but by the invaluable contribution
from some important person. Let me take this opportunity to thank them. But firstly, I
like to thank ICICI Prudential for giving me such a challenging project to work upon. I
hope this challenge has brought the best out of me.

It was an exhilarating experience to be attached with a company that is a market leader in

insurance sector in India. I express my deep sense to gratitude to AMIT SHEKAR for
providing me great opportunity to complete my project and training .

It was dynamic experience which enabled me to get introduction of real situation. Which
I shall be facing during my work in corporate world.

Ashish kumar

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CHAPTER NO. PARTICULARS PAGE NO.
INTRODUCTION TO THE STUDY

• Executive Summary

• Company Profile 2-34

Chapter – 1
• History of the Company

PRODUCT PROFILE
Chapter-2 35-48

OBJECTIVE OF THE STUDY

Chapter – 3 49-56
RESEARCH METHODOLGY

DATA ANALYSIS & INTERPRETATION

Chapter –4 57-70

FINDINGS, IMITATIONS
Chapter – 5 71-76
RECOMMENDATIONS & CONCLUSION
BIBLIOGRAPHY
77
ANNEXURE
84-86
Qestionnaire
Contents

EXECUTIVE SUMMARY

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

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

Life Insurance sector is one of the key areas where enormous business potential exists. In
India currently the life insurance premium as a percentage of GDP is 1.3 per cent against
5.2 per cent in the US, but in the liberalized scenario, the life insurance
premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998- 99
to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009-10. Corporate non-life
premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in 2009-
10 and personal line non-life from Rs 4 billion to Rs 51 billion.

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

INTRODUCTION

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

With a large population and the untapped market area of this population insurance
happens to be a very big opportunity in India. Today it stands as a business growing at
the rate of 15-20% annually. Together with banking services, it adds about 7 percent to
the countries GDP. In spite of all this growth statistics of the penetration of the insurance
in the country is very poor. Nearly 80% of Indian populations are without life insurance
cover and the health insurance. This is an indicator that growth potential for the insurance
sector is immense in India. It was due to this immense growth that the regulations were
introduced in the insurance sector and in continuation “Malhotra Committee” was
constituted by the government in 1993 to examine the various aspects of the industry.
The key element of the reform process was participation of overseas insurance companies
with 26% capital. Creating a more competitive financial system suitable for the
requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many changes. The liberalization of
the industry the insurance industry has never looked back and today stand as one of the
most competitive and exploring industry in India. The entry of the private players and the
increased use of the new distribution are in the limelight today. The use of new
distribution techniques and the IT tools has increased the scope of the industry in the
longer run.Insurance is the business of providing protection against financial aspects of
risk, such as those to property, life health and legal liability.
It is one method of a greater concept known as risk management –which is the need to
mange uncertainty on account of exposure to loss, injury, disadvantage or destruction.

Insurance is the method of spreading and transfer of risk. The fortunate many who are

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exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect
the assets but only compensates the economic or financial loss.

In insurance the insured makes payment called “premiums” to an insurer, and in return is
able to claim a payment from the insurer if the insured suffers a defined type of loss. This
relationship is usually drawn up in a formal legal contract.

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

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

Classification of insurance

The insurance industry in India can broadly classified in two parts. They are.

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:

Life insurance can be defined as “life insurance provides a sum of money if the person
who is insured dies while the policy is in effect”.

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

Benefits of life insurance

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

Thus insurance is found to be very useful in the lives of the person both in short term and
long term.

Marketing is a basic that, it can`t be considered a separate function. It is whole business

seen from the point of view of its final result,that is the consumer point of view.

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Marketing is to convert social needs into profitable opportunity. The 21 st century is the
era of advertising and sale production; marketing is to convert social needs into profitable
opportunity. As it is said marketing thinking starts with human needs and wants.

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Industrial Credit and Investment Corporation of India Limited

Company :- ICICI
Founded :- 1955
Founder :- Mr. N. vaghul
Country of origin: - India
Location :- Mumbai
Industry :- Financial
Products :- financial
Website :- www.icici.com

The (ICICI) Industrial Credit and Investment Corporation of India

Limited incorporated in 1955 at the initiative of the World Bank.
The Government of India and representatives of Indian industry, with
the objective of creating a development financial institution for
providing medium-term and long-term project financing to Indian
businesses.

Mr.A.Ramaswami Mudaliar elected as the first Chairman of

ICICILimited.

ICICI emerges as the major source of foreign currency loans to Indian

industry. Besides funding from the World Bank and other multi-lateral
agencies, ICICI was also among the first Indian companies to raise
funds from international markets

Now here are the important dates which has special roles to build up the company of
ICICI
1955: ICICI founded

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1956: ICICI declared its first dividend of 3.5%

1958: Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd

1969: The first two regional offices in Calcutta and Madras set up.

1972: The second entity in India to set up merchant banking services.

1982: ICICI became the first ever Indian borrower to raise European Currency Units.

1986: ICICI became the first Indian institution to receive ADB Loans.

1994: ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan
set up.

1997: SCICI merged with ICICI Ltd. Mr. K.V. Kamath appointed the Managing
Director and CEO of ICICI Ltd

1998: The name The Industrial Credit and Investment Corporation of India Ltd changed
to ICICI Ltd.

2001: ICICI Bank became the first commercial bank from India to list its stock on NYSE

ICICI Group offers a wide range of banking products and financial services to corporate
and retail customers through a variety of delivery channels and through its specialized
group companies, subsidiaries and affiliates in the areas of personal banking, investment

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banking, life and general insurance, venture capital and asset management. With a
strong customer focus, the ICICI Group Companies have maintained and enhanced

 Life insurance ( icici prudential)

 General insurance (icici Lombard)
 Banking
 Mutual fund
 Home finance

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ICICI LOMARD

ICICI Lombard General Insurance Company. It is joint venture with the Canada based
Fairfax Financial Holdings, which is the largest private sector general insurance
company.

It has a comprehensive product portfolio catering to all corporate and retail insurance
needs and is present in over 300 locations across the country.

ICICI Lombard General Insurance has achieved a market share of 27.2% among
private sector general insurance companies and an overall market share of 11.2% during
fiscal 2009. The gross return premium grew by 2.2% from Rs. 33.45 billion in fiscal
2008 to 34.20 billion in fiscal 2009.

.ICICI Prudential Life Insurance Company.

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IT is a 74:26 joint venture with prudential plc (UK).

It is the largest private sector life insurance company offering a comprehensive suite of
life, health and pensions products.

It is also the pioneer in launching innovative health care products like Diabetes Care
Active and health Saver. The company operates on a multi-channel platform and has
distribution strength of over 2, 76,000 financial advisors operating from more than 2000
branches spread across 1800 locations across the country. In addition to the agency force,
it also has tie-ups with various banks, corporate agents and brokers. In fiscal 2009, ICICI
Prudential attained a market share of 10.9% based on retail weighted premium and
garnered a total premium of Rs 153.56 billion registering a growth of 13% and held
assets of Rs. 327.88 billion as on March 31, 2009

The Company was founded on 30 May 1848 in Hatton Garden in London as The
Prudential Mutual Assurance Investment and Loan Association providing loans to
professional and working people. In 1854 the Company began selling the relatively new
concept of industrial branch insurance policies to the working class population for
premiums as low as one penny through agents acting as door to door salesmen. The army

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of premium collection agents was for many many years identified with the Prudential as
the "Man from the Pru

It moved to its traditional home at Holborn Bars in 1879 and converted to a limited
company in 1881. The building was designed by Alfred Waterhouse, and is built of
terracotta manufactured by Gibbs and Canning Limited of Tamworth (c.1878) – two of
the same driving forces behind the Natural History Museum in London.

The Company was first listed on the London Stock Exchange in 1924. In 1997 the
Company acquired Scottish Amicable, a business originally founded in 1826 in Glasgow
as the West of Scotland Life Insurance Company, for $1.75bn.In June 2000 the Company
was first listed on the New York Stock Exchange to help focus on the US market.

Found :- 1848

Head quarter :- London, uk

Key person :- Harvey McGrath, (chairman)

:- Mark tracker, (Ceo)

INDUSTRY :- Financial

Products :- Life insurance

Revenue :- £18,993 million (2008)

Operating income:- £(2,074) million (2008)

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Net income :- £(391) million (2008)

Employees :- 28,000 (2008)[1]

Website :- http://www.prudential.co.uk

Management Team

Chairman of Board of Directors Harvey McGrath Group Chief Executive

Mark Tucker Group Finance Director Tidjane Thiam

President & Chief Executive Officer for Jackson National Life Clark Manning

Chief Executive of M&G Michael McLintock

Chief Executive of Prudential Corporation Asia Barry Stowe

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Chief Executive of UK & European Insurance Operations Nick Prettejohn

COMPANY PROFILE

ICICI Prudential Life Insurance Company Limited (‘the Company’) a joint venture
between ICICI Bank Limited and Prudential plc of UK was incorporated on July
20, 2000 as a company under the Companies Act, 1956 (‘the Act’). The Company
is licensed by the Insurance Regulatory and Development Authority (‘IRDA’) for
carrying life insurance business in India.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial
services group headquartered in the United Kingdom (UK). The company brings together
the local market expertise and financial strength of ICICI Bank and Prudential’s
International life insurance experience. The company was granted a certificate of

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Registration by the IRDA on November 24, 2000 and eighteen days later, issued its first
policy on December 12. ICICI Prudential was amongst the first private sector insurance
companies to begin operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).

ICICI Prudential is the largest private insurance company and second

largest insurance in India after LIC. ICICI Prudential Life Insurance
Company is a joint venture between ICICI Bank, a premier financial
powerhouse, and prudential plc, a leading international financial
services group headquartered in the United Kingdom.

ICICI Prudential was amongst the first private sector insurance

companies to begin operations in December 2000 after receiving
approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential Life's capital stands at Rs. 37.72 billion (as on March, 2008) with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. For the year ended
March 31, 2008, the company garnered Retail New Business Weighted premium of Rs.
6,684 crores, registering a growth of 68% over the last year and has underwritten nearly 3
million retail policies during the period.

The company has assets held over Rs. 30,000 crore as on April 30, 2008. ICICI
Prudential Life is also the only private life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the
highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations
to customers at the time of maturity or claims. For the past seven years, ICICI Prudential
Life has retained its leadership position in the life insurance industry with a wide range of
flexible products that meet the needs of the Indian customer at every step in life.

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Since the liberalization of Indian Insurance sector, ICICI Prudential Life Insurance has
been one of the earliest private players. Since the time, ICICI Pru Life has been the leader
in terms of market share as indicated by the IRDA (Insurance Regulatory and
Development Authority, the regulator for Indian Insurance Industry) at its website.

Arguably the most innovative Indian Life insurer in terms of customer services and
products, ICICI Prudential has one of the largest distribution and servicing network with
over 2,000 proprietary offices & customer touch points across India. The 30,000
employee strong organization has one of the largest agency distributions in the industry.

With a growing product range to match the complex needs of the demanding customers
in a growing economy, the organization also has a history of successful.During 2007-08,
the organization's focus on rural business has proved its complex project execution
capability and strong partnerships for customer servicing.

In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK
Healthcare to settle insurance claims of its users.From its early days, ICICI Prudential
seemed to have the wherewithal for a large-scale business. By March 31, 2002, a little
over a year since its launch, the company had issued 100,000 policies translating into
premium income of approximately Rs. 1,200 million on a sum assured of over Rs.23
billion. When the company began its operations, the need was to build a brand that was
relatable to, symbolized trust and was easily recognized and understood. It launched a
corporate campaign ICICI Prudential also made using the theme of ‘Sindoor’ to
epitomize protection, trust, togetherness and all that is Indian; endearing itself to the
masses. The success of the campaign, ‘the calling card of the company’ saw the brand
awareness scores almost at par with its 40 year old competitor.

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The theme of protection was also extended to subsequent product and category specific
campaigns –from child plans to retirement solutions –which highlight how the company
will be with its customers at every step of life.

From day one, the company has unflinchingly focused on being mass-market player,
developing products, creating a distribution network and deploying resources that would
further its goal. Apart from ramping up thoroughly training its advisors, the company has
twelve ‘Bancasurance’ partners –the largest in the country. It swiftly revised and added to
its initial range of products, pioneering market-linked products and pension plans, to offer
customers the most flexible life insurance policies in the country.

In February 2004, ICICI Prudential increased its capital base by Rs. 500 million, its ninth
capital hike, bringing the total paid –up equity capital to Rs. 6,750 million. With the
authorized capital of the company standing at Rs. 12 billion, ICICI Prudential continues
to have the highest capital base amongst all life insurers in the country.

The challenge ICICI Prudential now faces is to retain its top-notch position and continue
to deliver the finest life insurance and pension solutions to its ever-growing customer
base.

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

ICICI Prudential is also the only private life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA rating is the highest

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credit rating, and is a clear assurance of ICICI Prudential’s ability to meet its obligations
to customers at the time of maturity or claims.

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

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

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

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

The Company’s penetration of the retirement market was driven by the focused approach
towards creating awareness through sustained campaign; ‘Retire from work, not life’.
Within six months, the campaign rewarded ICICI Prudential with an increased share of
23% of the total pensions market and 78% amongst private players. ICICI Prudential has
one of the largest distribution networks amongst private life insurers in India, having
commenced operations in 132 cities and towns in India, stretching from Bhuj in the west
to Guwahati in the east, and Jammu in the north to Trivandrum in the south.

The company has 9 bank partnerships for distribution, having agreements with ICICI
Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some
co-operative banks, as well as over 200 corporate agents and brokers, it has also tied up
with NGOs, MFIs and corporates for the distribution of rural policies.

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

About the Promoters

ICICI Bank (NYSE:IBN) is India’s second largest bank with an asset base of
Rs.2513.89 billion as on March 31, 2006. ICICI Bank provides a broad spectrum of
financial services to individuals and companies. This includes mortgages, car and
personal loans, credit and debit cards, corporate and agricultural finance. The Bank

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services a growing a customer base of more than 17 million customers through a multi
channel access network which includes over 620 branches and extension counters, 2200
ATMs, call centers and internet banking (www.icicibank.com)

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

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

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

31, 2005, the company had over US$ 400 billion in funds under management. Prudential

has brought to market an integrated range of financial services products that now includes

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

insurance.

In Asia, Prudential is the leading European life insurance company with a vast network

of 23 life and mutual fund operations in twelve countries –China, Hong Kong, India,

Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and

Vietnam.

Achievements

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

ICICI Prudential closed the financial year ended march 31, 2004 with a total received
premium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20
billion. New business premium income shows a 106% growth at Rs. 7.5 billion, driven
mainly by the company’s range of unique unit-linked policies and pension plans. The

22
company’s retail market share amongst private companies stood at 36%, making it clear
leader in the segment. To add to its achievements, in the year 2003/04 it was adjudged
Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand Survey’ by
ACNeilsen ORG-MARG).

It was also conferred the ‘Outlook Money-Best Life Insurer’ award for the second year
running. The company is also proud to have won Silver at EFFIES 2003 for its ‘Retire
from work, not life’ campaign. Notably, ICICI Prudential was also short-listed to the final
round for its ‘Sindoor campaign in EFFIES 2002.

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

Promotion

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

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

task. At the time of launching operations, the communications task was to build

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credibility, so as to give the customer the confidence that it was ‘a company that could be
trusted to invest funds with’. The aim was to encourage people to view insurance not as a
compulsory tax saving instrument, but as a means to lead a worry-free, secure life and in
the process, create the differentiator for brand ICICI Prudential.

The brand proposition for all the campaigns was reflected in the line: ‘Suraksha: Zindagi
ke har kadam par’.

The campaign featured a significant competitive advantage, the sound financial backing
and credentials of ICICI Prudential, and showcased products from different segments.
The advertising idea was encapsulated in the symbol of protection –the ‘Sindoor’.

This campaign contributed extensively to raising brand awareness and creating a

distinctive identity for the company.

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

Brand Values

Market Research reveals that the values people associate with ICICI Prudential are,
indeed, those that the company hopes to project: lifelong protection and value for money.
The core value is protecting your loved ones, throughout life’s ups and downs. It is a
powerful proposition; one, which ICICI Prudential, is taking into the market place.

DISTRIBUTION SYSTEM

Tied Agency

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

Bancassurance and Alliances

ICICI Prudential was a pioneer in offering life insurance solutions through banks and
alliances. Within a short span of two years, and with nearly a large number of partners,
B & A has emerged as a vital component of the company’s sales and distribution
strategy, contributing to approximately one third of company’s total business.

The business philosophy at B&A is to leverage distribution synergies with our partners
and add value to its customers as well as the partners. Flexibility, adaptation and
experimenting with new ideas are the hallmarks of this channel.

CUSTOMER SERVICE AND OPERATIONS

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

Information Technology

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The Information Technology function at ICICI Prudential is committed to enable
business through the use of technology. It is segmented into 4 groups to enable highest
levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in
designing better product offerings to end-users, the Solutions Group- Web that provides
real-time information to customers and is responsible for customer relationship
management, IT Architecture & Corporate Solutions Group is in charge of developing
and maintaining a blueprint for the IT architecture for the enterprise as a whole.

This team works as an in house R&D Solution Group, exploring new technological
initiatives and also caters to information needs of corporate functions in the organization.
IT Infrastructure group is responsible for providing hardware, software, network services
to the whole organization.

This group runs the 'Digital Nervous System' of the Enterprise at the highest levels of
efficiency and provide robust, scalable and highly available platform for deployment of
business application.

Marketing

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

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Finance
Finance function in ICICI Prudential is committed to create an infrastructure that is
aligned to shareholder expectations. Finance basically comprises of four functions. .
Corporate Planning and MIS provide feedback on business strategies. This includes
driving the budgeting process, providing strategic inputs for decision-making and
management reporting and analysis.

The Accounts function includes preparation and maintenance of financial records, funds
management, and expense processing and treasury operations. Compliance ensures that
every action is within the regulatory framework. This includes reviewing compliance
requirements and supporting the ethical framework of ICICI Pru life.

Internal audit provides assurance to the management over the organizations' control
framework and includes process risk management, information security assessment and
business continuity assessment.

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

Business Excellence
The Business Excellence function is committed to building a quality mindset across the
organization. ICICI Prudential is the first organization in the Insurance Industry that has
adopted the Six Sigma Methodology for process efficiency and measurement. The team

27
is also driving the Malcolm Baldrige framework across the organization, an intervention
that examines management of key inputs for Business Excellence.

Bancassurance
One of the most significant advances in the financial services sector over the past couple
of years has been the growth of Bancassurance – which, in simplest terms, means the
distribution of insurance products through a bank’s distribution channels. In other words,
Bancassurance is a service which can fulfill both banking and insurance needs at the
same time. Bancassurance as a concept first began in India with the opening up of the
insurance industry to private sector participation in December 1999 which saw the entry
of 20 new players - with 12 in the life insurance sector and 8 in the non-life sector.

Bancassurance has also seen significant rise in other Asian markets. For example,
Bancassurance accounted for 24% of new life insurance sales by ‘weighted’ premium
income in Singapore in 2002.
This is a significant increase on the equivalent 2001 statistic of 15% and is as a result of
growth in significant bank-centric Bancassurance operations.

Although the concept of Bancassurance looks simple enough, it is far from that in real
life practice. Legislative differences, consumer behavior, impact of history and culture,
product complexity, employee work culture and many such other factors have contributed
to significant differences in results across countries. For example, in France and Spain
60% to 80% of life insurance products are sold through bank branches compared to 10%
in UK and USA.

Bancassurance Models

Globally we have 4 kinds of Bancassurance business models:

• Distribution alliance between the insurance company and the bank

28
 • JV between the two
• Merger between bank and insurer
• Bank builds or buys own insurance products

Most of the Bancassurance operations in India fall into the first model, which in a way is
quite a prudent decision. The Indian Bancassurance scene as of now looks as promising
as perilous, being a vast, unexplored and uncharted expanse. As banks are quite risk
averse, it is but natural for them to withhold from making any long term commitment,
which would be quite costly if the Bancassurance business runs into trouble. In terms of
the present regulatory framework, one bank can tie-up with only one life and one non-life
insurer, while insurers have the choice to tie-up with any number of banks.

Stages in Policy Issuance

1) Proposal

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

2) Login

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

3) Reject

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

4) Issuance

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

5) Decline Status

29
When a customer refuses to take a policy post login but before Issuance is called a
Decline

6) Cancellation

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

7) Lapse

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

8) Freelook

Post issuance of the policy, the policyholder has the option to turn down the policy within
15 days from the date of issuance. This period of 15 days is called Freelook Period.

9) Surrender: When a customer wants to discontinue with the policy.

Joint Venture

ICICI Prudential is a joint venture between ICICI Bank and Prudential plc engaged in
the business of life insurance in India.

30
 Thejointstrengths

Apowerful joint venture partnershipwith eachcarryinga set of strengths

complementingeach others

Brandstrength Reputation

Insurance
Infrastructure expertise

Customer base PRUDENTIAL Product

ICICI
Market Innovators Distribution

Local knowledge Operations

Product of joint venture, of icici and prudential life insurance company

Founded :- K. V. Kamath

Products :- Life insurance

Jingle :- Jeetey Raho

Date of innovation :- 22 Dec 2000

Need for Life Insurance

Today, there is no shortage of investment options for a person to choose from.

Modern day investments include gold, property, fixed income
instruments, mutual funds and of course, life insurance. Given the

31
plethora of choices, it becomes imperative to make the right choice
when investing your hard-earned money. Life insurance is a unique
investment that helps you to meet your dual needs - saving for life's
important goals, and protecting your assets.

Asset Protection

From an investor's point of view, an investment can play two roles -

asset appreciation or asset protection.

Core benefit

The core benefit of life insurance is that the financial interests of one’s
family remain protected from circumstances such as loss of income
due to critical illness or death of the policyholder. Simultaneously,
insurance products also have a strong inbuilt wealth creation
proposition. The customer therefore benefits on two counts and life
insurance occupies a unique space in the landscape of investment
options available to a customer.

Management Profile

Board of Directors:-

32
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people
from the finance industry both from India and abroad.

Mr. K.V. Kamath, Chairman

Ms. Chanda Kochhar, Director
Mr. Barry Stowe, Director
Mr. H.T. Phong, Director
Prof. Marti G. Subrahmanyam, Director
Mr. Mahesh Prasad Modi, Director
Ms. Rama Bijapurkar, Director
Mr. Keki Dadiseth, Director
Ms. Shikha Sharma, Managing Director
Mr. N.S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director

Management Team

The ICICI Prudential Life Insurance Company Limited Management team

comprises reputed people from the finance industry both from India and
abroad.

33
Ms. Shikha Sharma, Managing Director & CEO
Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Ms. Anita Pai, Executive Vice President – Customer Service & Technology
Dr. Avijit Chatterjee, Appointed Actuary

ICICI Prudential offers a wide range of insurance plans to suit the various needs of
individuals. The insurance plans by the company are enlisted:

Life Insurance Plans:

• Education Insurance Plans

• Premium Guarantee plans
• Wealth Creation Plans
• Protection Plans

Retirement Solutions:

34
 • Forever Life
• Lifeline Super Pension
• Lifetime Super Pension

Health Product Suite:

• Crisis Cover
• Cancer Care Plus
• Cancer Care
• Hospital Care
• Diabetes Care Plus
• Diabetes Care
• Health Assure Plus

Tax Planning All Life Insurance plans Sec 88

All Retirement plans – sec 80 CCC (1)

PRODUCT/SERVICES PROFILE

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

ICICI Prudential’s product range has been developed on the understanding that different
people have their own sets of needs at various stages of their lives. It has thus built a
flexible portfolio of products that can be customized to cater to varying needs of people
at each stage, and thus ensure protection in every step of life. The company’s philosophy

35
has been to help customers understand their financial needs and work closely with them
to customize a product that would meet. Advisors can offer a complete range of products
–Savings plans, Child plans, Market-linked plans, Protection plans, and Retirement plans
– and tailor a flexible solution to meet customers’ changing needs at every stage of life.
In fact, ICICI Prudential was the first to un-bundle product benefits, pioneering the
concept of ‘riders’ and soon after introduce comprehensive market-linked and retirement
plans.

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

ICICI Prudential's life insurance products may be loosely categorized under three forms:
pure life insurance products without an investment angle to them; a product that is a mix
of a cumulative investment scheme and an insurance product; and, finally, standard
products such as money-back and endowment policies.

Single Premium Bond: The Single Premium Bond is the name of a policy that combines
the features of an investment in a cumulative deposit scheme with that of an insurance
product.

Policy-holders are required to pay a one-time premium based on a target sum assured. At
maturity, the policy-holder gets the sum assured and guaranteed additions that work out
to a compound return of 4.5 per cent the sum assured.

The insurance part of the package comes in the form of death benefits that are paid in the
case of the demise of the policy-holder. The size of the death benefit is linked to the
number of years left for the policy to expire. On maturity date, the maturity value is also
paid in addition to the death benefits that would have been paid earlier.

36
Life Guard policies: The company offers two pure life insurance products that have an
umbrella name, Life Guard. One of them involves a one-time premium for which there
are no maturity benefits. The other requires regular premium payments that are returned
at the end of the policy. Life Guard offers absolutely no investment-related return and is
suitable for individuals looking for an unadulterated insurance package.

Insurance Solutions for Individuals

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

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

Savings Solutions

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

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

protection as well as liquidity options.

• Save ‘n’ Protect is a traditional endowment savings plan that offers life protection
along with adequate returns

• CashBak is an anticipated endowment policy ideal for meeting milestone

expenses like a child’s marriage, expenses for a child’s higher education or
purchase of an asset.

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

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

37
 • Premier Life is a limited premium paying plan that offers customers life
insurance cover till age of 75.

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

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

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

Protection Solutions

• LifeGuard is a protection plan, which offers life cover at very low cost. It is
available in 3 options –level term assurance with return of premium and single
premium.

• HomeAssure is a mortgage reducing term assurance plan designed specifically to

help customers cover their home loans in a simple and cost-effective manner.

Child Plans
• SmartKid education plans provide guaranteed educational benefits to a child
along with life insurance cover for the parent who purchases the policy. The
policy is designed to provide money at important milestones in the child’s life.

SmartKid plans are also available in unit-linked form – both single premium and
regular premium.

38
Retirement Solutions
• ForeverLife is a retirement product targeted at individuals in their thirties.
• SecurePlus Pension is a flexible pension plan that allows one to select between 3
levels of cover.
• Market-linked retirement products
•
• LifeTime Pension II is a regular premium market-linked pension plan.
• LifeLink Pension II is single premium market linked pension plan.
• InvestShield Pension is a regular premium pension plan with a capital guarantee
on the investible premium and declared bonuses
• Golden Years: is a limited premium paying retirement solution that offers tax
benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and
payout stages.

Health Solutions
• Health Assure and Health Assure Plus: Health Assure is a regular premium
plan which provides long term cover against 6 critical illnesses by providing
policy holder with financial assistance, irrespective of the actual medical
expenses. Health Assure Plus offers the added advantage of an equivalent life
insurance cover
Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as
well as at different stages in the treatment of various cancer conditions.
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for companies seeking to
enhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers
fund their statutory gratuity obligation in a scientific manner. The plan can also be

39
 customized to structure schemes that can provide benefits beyond the statutory
obligations.

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

4.Income Benefit: This rider pays the 10% of the sum assured to the nominee
every year, till maturity, in the event of the death of the life assured. It is available
in SmartKid, SecurePlus, and CashPlus.

40
 5.Waiver of Premium: In case of total and permanent disability due to an
accident, the premiums are waived till maturity. This rider is available with
SecurePlus and CashPlus.

Equity Indices 30-Jun-09 29-May-09 % Change

Market Overview
BSE SENSEX 14,494 14,625 -0.9
S&P CNX NIFTY (50) 4,291 4,449 -3.6
INDIA BSE MIDCAP 5,076 5,057 0.4
CNX MIDCAP INDEX 5,427 5,359 1.3

41
 30-Jun- 29-May- %
Global Indices
09 09 Change
DOW JONES
8,447 8,500 -0.6
INDUSTRIALS
HANG SENG 18,379 18,171 1.1
FTSE 100 4,249 4,418 -3.8
NIKKEI 225 STOCK
9,958 9,523 4.6
AVERAGE

42
Benchmark Returns 1Y 3Y 5Y
BSE 100 7.70 12.05 24.21
CRISIL Bond Index 11.20% 6.90% 5.34%

GDP Growth
5 Year CAGR FY 08 9M FY 09
8.80% 9.00% 6.70%

The above data show that the in the recession time when the larger company are in
problem , but this company stay in good position and very soon he able to came out
himself from himself this crisis .

In month of the June, when our country was running in the deflation the icici prudential
face only a bit the change in their average growth , which is very less in compare to the
all sector .

43
HIERARCHY OF THE COMPANY

Five scope branch

One hub branch

Five hub branch

A regional office

Three regional

44
 One divisional office

COMPARATIVE STUDY

1) LIFE TIME VS LIC BIMA PLUS

ON THE BASIS OF AGE:

LIFE TIME-
0-60YEARS
BIMA PLUS-
12-55 YEARS

ON THE BASIS OF TERM:

LIFE TIME-
Minimum premium payment term of three years.
BIMA PLUS-
10 YEARS

ON THE BASIS OF SUM ASSURED:

LIFE TIME-
Choose your sum assured; subject to a minimum sum assure of Rs 1 lakh.
BIMA PLUS-
Maximum limit up to Rs 12 lakh.

ON THE BASIS OF SURVIVAL BENEFIT:

45
LIFE TIME-
Value of unit three years onward.
BIMA PLUS-
Bid value of the funds units along with maturity bonus at 5% of sum assured.

ON THE BASIS OF DEATH BENEFIT:

LIFE TIME-
Higher of sum assured of value of units.
BIMA PLUS-
Death during the first six month-30% of SA+value of units, next six months-60% of
SA+value of units. Death after first year-SA+value of units.

ON THE BASIS OF WITHDRAWAL BENBEFIT:

LIFE TIME-
Partial or complete withdrawal is available from three years onwards.
BIMA PLUS-
Premature withdrawal allowed after one year.

ON THE BASIS OF CONTRIBUTION:

LIFE TIME-
Minimum Rs 18000 per annum.
BIMA PLUS-
Not specified.

ON THE BASIS OF INVESTMENT OPTION:

LIFE TIME-
Maximiser, balancer, protector and preserver.
BIMA PLUS-
Balanced, secured and risk.

46
2)LIFE TIME VS MAX NEW YORK LIFE MAKER

ON THE BASIS OF AGE:

LIFE TIME-
0-60 YEARS.
LIFE MAKER-
12-60 YEARS.

ON THE BASIS OF TERM:

LIFE TIME-
Minimum premium payment term of three years.
LIFE MAKER-
10-58 YEARS.

ON THE BASIS OF SUM ASSURED:

LIFE TIME-
Choose your sum assured subject to a minimum sum assured of Rs1lakh.
LIFE MAKER-
Choice of 2 insurance covers.

ON THE BASIS OF SURVIVAL BENEFIT:

LIFE TIME-
Value of units three years onwards.
LIFE MAKER-

47
Value of units.

ON THE BASIS OF WITHDRAWAL BENEFIT:

LIFE TIME-
Complete or partial withdrawals are available after three years.
LIFE MAKER-
Partial withdrawals are available from the third year and complete withdrawals are
available from first year onwards itself, subject to surrender penalties.

ON THE BASIS OF CONTRIBUTION:

LIFE TIME-
Minimum premium of Rs18000 per annum.
LIFE MAKER-

Minimum premium of Rs15000 per annum.

ON THE BASIS OF INCREASE OR DECREASE OF DEATH BENEFIT:

LIFE TIME-
Available
LIFE MAKER-
Not available

ON THE BASIS OF BONUS UNIT:

LIFE TIME-
Available
LIFE MAKER-

48
Available in the last policy year.

3) LIFE TIME VS HDFC LINKED

ON THE BASIS OF AGE:

LIFE TIME-
0-60 YEARS
LINKED-
18-60 YEARS

ON THE BASIS OF TERM:

LIFE TIME-
Minimum premium payment term of three years.
LINKED-
10-30 YEARS

ON THE BASIS OF SUM ASSURED:

LIFE TIME-
Choose your sum assured, subject to a minimum sum assured of Rs1 lakh.
LINKED-
Only 5-20 (age based) multiples are allowed as assured.

ON THE BASIS OF SURVIVAL BENEFIT:

LIFE TIME-
Value of units third year onwards.
LINKED-

49
Value of units.

ON THE BASIS OF DEATH BENEFIT:

LIFE TIME-
Higher or sum assured or value of units.
LINKED-
Higher or sum assured or value of units.

ON THE BASIS OF WITHDRAWAL BENEFIT:

LIFE TIME-
Partial or complete withdrawals are available from third year onwards.
LINKED-
Partial withdrawals are available from third year onwards provided, that the value of units
does not go below the sum assured.

ON THE BASIS OF CONTRIBUTION:

LIFE TIME-
Minimum Rs18000 per annum.
LINKED-
Minimum Rs10000 per annum.

ON THE BASIS OF INVESTMENT OPTION:

LIFE TIME-
Maximiser, balancer, protector and preserver.
LINKED-

50
Five fund option-balancer, defensive managed safe managed, liquid and growth.

4) LIFE TIME PENSION-2 VS LIC JEEVAN NIDHI

ON THE BASIS OF AGE:

LIFE TIME PENSION-2-
18-60 YEARS.
JEEVAN NIDHI-
18-65 YEARS.

ON THE BASIS OF TERM:

LIFE TIME PENSION-2-
Minimum term of 10 years.
JEEVAN NIDHI-
5-35 years.

ON THE BASIS OF SUM ASSURED:

LIFE TIME PENSION-2-
Default sum assured is zero, however, the policy holders can also opt for a sum assured.
JEEVAN NIDHI-
Minimum of Rs50000 and multiples of Rs5000 thereafter.

ON THE BASIS OF SURVIVAL BENEFIT:

51
LIFE TIME PENSION-2-
Unit value to purchase an annuity.
JEEVAN NIDHI-
Sum assured+gurantee additions+terminal bonus.

ON THE BASIS OF DEATH BENEFIT:

LIFE TIME PENSION-2-
Value of units in case the sum assured is zero. In case a sum assured is chosen, it will be
higher of the sum assured or value of units.
JEEVAN NIDHI-
Sum assured+guarantee additions+simple reversion bonus+terminal bonus.

ON THE BASIS OF CONTRIBUTION:

LIFE TIME PENSION-2-
Minimum Rs10000 per annum.
JEEVAN NIDHI-
Minimum Rs3000 per annum.

ON THE BASIS OF INVESTMENT OPTION:

LIFE TIME PENSION-2-
Protector pension, balancer pension, maximiser pension and pension preserver.
JEEVAN NIDHI:
Not available.

ON THE BASIS OF INCREASE OR DECREASE OF DEATH BENEFIT:

LIFE TIME PENSION-2-
Not available.
JEEVAN NIDHI-
Not available.

52
Future Function

Snapshot
Company: ICICI Prudential
Project: Total automation of
HR processes
IT Head / Project Lead: Anita Pai, Executive VP—Customer
Service and Technology

Operating in a highly competitive industry, ICICI Prudential wanted to move towards

the goal of a paperless office by automating processes in different HR functions. This
would improve process efficiencies and result in substantial cost reduction. With this
aim, ICICI Prudential embarked on an exercise to develop a fully integrated HR system
using highly customized core HRMS ERP software and non-core satellite applications.
Accordingly, the firm designed a solution that had two major components: core HRMS
and satellite applications. Core HRMS activities included customization on PeopleSoft
HCM 9.0. Subsequently, non-core satellite .

53
 Munger Branch

Opening date: 21 July 2007

Sales manager (branch manager)

Amit shekar

Employees :– 4 Agnies member

18 unit manager
1 manager business manager
B.P :– Business partner 10
1 office C.P.A
3 stiff guard

Turn over

Target 5000000crore

50000000

40000000

30000000

20000000

10000000

0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

54
The above data show the detail of 4 year achievement of the Munger.

Total percentage of Munger Branch In the life insurance sector

Approx

ICICI Prudential : - 25%

LIC : - 50%
Aviva Life Insurance : - 5%
Bajaj Allianz : - 3%
Other Co. :- 17%

55
 SWOT ANALYSIS

56
STRENGTHS

 ICICI Prudential is the largest private player in India, with a market share of
around 36% amongst the private players
 ICICI Prudential has deposited a paid up capital of Rs 925 crore with IRDA
caution deposit, the highest among all the life insurance company in India where
as LIC has deposited Rs 60 crore so far.

 ICICI Prudential is the first life insurance company to offer ECS debit facility.

 ICICI Prudential is the first company to introduce unit link life insurance and
pension products. Presently the maximum numbers of ranges are under ULIP life
insurance, investment as well as pension plan.

 Products

 Flexibility to switch your fund value at your own discretion four times a year viz.
maximizer, protector, balancer, preserver.

 Greater transparency-policy holder knows what is happening to his money and

where the company has invested his money.

 Liquidity options-you can make complete or partial withdrawals any time after 3
years.

 Life insurance plans are eligible for deduction under sec 80.

57
WEAKNESSES:

 Industry in nascent stage.

 Rural areas still not covered.
 Not very known among Indian population.
 Lack of credibility among the people because ICICI being a private player.
 Premiums are high as compared to its competitors.
 Very few branches in the country.
 Products:
 The policy doesn’t have the surrender option before third year.
 Plan does not offer any guarantee or assured return.
 Product profile is not very comprehensive.
 Mortality, management and administrative charges are sky scrapping as compared
to its competitors.

OPPORTUNITIES

 Liberalization of Indian economy.

 As the industry is growing the whole market is virgin.
 The whole private sector is opened to be trapped even though the competition is
fierce from government owned insurance companies.
 It’s a volume business that is even if the company has few good corporates the
turnover cease to increase by manifold.
 Products:
 Preserver funds look good due to comfortable liquidity in the economy and there
is little chance hike in short-term rate by RBI.

58
  Finance minister unveiled a budget favoring consumer spending, boosting
demand and therefore higher economic growth.

THREATS

 The government players will become aggressive thus growth is going to be tough.
 Entry of other players is not ruled out.
 Apprehension towards ICICI Prudential being a private life insurance company.
 We expect the industry to rationalize in future that is mergers and acquisitions
will happen, which will impact the industry and ICICI Prudential fortunes.
 Products:
 Past performance of these plans is not indicative of the future performance of the
plan.
 The sum invested in the funds is subject to market risks and there can be no
assurance that the objective of plan will be achieved.
 All benefits payable under the policy are subject to tax laws and other financial
enactment, as they exist from time to time.

59
 Research Methodology

60
Statement Of Problem:

The research is carried on in a proper planned and systematic manner.

 The research was particularly a telephonic research. We have to sell products to

list of people which include their names and contact numbers given by ICICI.
 During the telephonic we have to sell different products by explaining the benefits
of a particular product, but. The minimum amount for selling a policy to a
customer is equal to or more then Rs. 12000 only.
 Age limit for selling a product/policies was 1 month to 60 yrs – this mean that a
policy can be sold to person between the age of 1 month to 60 yrs and not
anything exceeding or below it.

Research Design:

The research design of this project is exploratory. Though each research study has its
own specific purpose but the research design of this project on ICICI is exploratory in
nature as the objective is the development of the hypothesis rather than their testing.

METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically

solve the problem or attain its objectives. It is a very important guideline and lead to
completion of any project work through observation, data collection and data analysis.

According to Clifford Woody,

61
“Research Methodology comprises of defining & redefining problems, collecting,
organizing &evaluating data, making deductions &researching to conclusions.”

Accordingly, the methodology used in the project is as follows: -

 Defining the objectives of the study

 Framing of questionnaire keeping objectives in mind (considering the objectives)
 Feedback from the employees
 Analysis of feedback
 Conclusion, findings and suggestions.

Sampling Technique Used:

This research has used convenience sampling technique.

1) Convenience sampling technique: Convenience sampling is used in exploratory

research where the researcher is interested in getting an inexpensive approximation of the
truth. As the name implies, the sample is selected because they are convenient

Selection of Sample Size:

For the survey, a sample size of 50 has been taken into consideration.

Sources of Data Collection:

Research will be based on two sources:

1. Primary data

2. Secondary data

1) PRIMARY DATA:

62
Questionnaire: Primary data was collected by preparing questionnaire for customers.
The questionnaire was filled through telephonic research.

2) SECONDARY DATA:

Secondary data will consist of different literatures like books which are published,
articles, internet , the company manuals and websites of company-
www.iciciprulife.com.

In order to reach relevant conclusion, research work needed to be designed in a proper

way.

This research methodology also includes:-

 Familiarization with the concept of insurance and its various terms.

 Thorough study of the information collected.
 Conclusions based on findings.

Statistical Tools Used

The main statistical tools used for the collection and analyses of data in this project are:

 Questionnaire
 Pie Charts
 Bar Diagrams

63
Limitations of study

Due to the following unavoidable and uncontrollable factors the factors,the result might
not be accurate. Some of the problems faced while conducting the survey are as follows:-

 Time and cost constraints were also there.

 Chances of some biasness could not be eliminated.
 A Samples size of fifty has been use due to time limitations.
 A majority of respondents show lack of cooperation and are biased towards their
own opinions.

64
 Data Analysis & Findings

65
Data Analysis

Q1. Are you currently insured?

Particulars No. of Respondents Percentage

Yes 31 62%
No 19 38%
Total 50 100%

No. of Respondents

19

Yes
No

31

ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 62% of the respondents are already insured.

b) 38% of the respondents are not insured.
66
Q2. Are you satisfied with your current insurer?

Particulars No. of Respondents Percentage

Yes 41 82%
No 9 18%
Total 50 100%

No. of Respondents

Yes
No

41

ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 82% of the respondents are satisfied.

b) 18% of the respondents are not satisfied.

67
Q3. Which one is your favored insurance company?

Particulars No. of Respondents Percentage

LIC 24 48%
ICICI 7 14%
HDFC 5 10%
Birla Sun Life 4 8%
Bajaj Allianz 4 8%
Others 6 12%
Total 50 100%

0.6

0.5

0.4
Share in %

0.3

0.2

0.1

0
LIC ICICI HDFC Birla Sun Bajaj Others
Allianz
Insurance companies
ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 48% of the respondents likes LIC.

b) 14% of the respondents likes ICICI.
68 c) 10% of the respondents likes HDFC.
d) 8% of the respondents likes Birla Sun Life.
e) 8% of the respondents likes Bajaj Allianz.
f) 12% of the respondents likes other companies.
Q4. Are you interested in the products offered by ICICI Prudential ?

Particulars No. of Respondents Percentage

Yes 30 60%
No 12 24%
Can’t Say 8 16%
Total 50 100%

No. of Respondents

Yes
No
12 Can't Say
30

ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 60% of the respondents are attracted towards ICICI products.

b) 24% of the respondents are not attracted towards ICICI
69
products.
c) 16% of the respondents Can’t Say about it.
Q5. What is your main concern while taking an insurance policy ?

Particulars No. of Respondents Percentage

Tax Benefit 20 40%

Security 16 32%
Investments/Savings 14 28%
Total 50 100%

25
No. of Respondents

20

15
Series1
10 20
16 14
5

0
s
fit

ng
rit
ne

cu

i
av
Be

Se

t/S
x
Ta

en
m
st
ve
In

ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 40% of the respondents are concerned about Tax Benefit.

b) 32% of the respondents are concerned about their Security.
c) 28% of the respondents are concerned about
Investment/Savings.
70
Q6. Does this policy satisfy your financial needs? (Please rate on
the scale of 1 to 5 with 1 being least satisfied)

Rating No. of Respondents Percentage

1 9 18%
2 9 18%
3 8 16%
4 10 20%
5 14 28%
Total 50 100%

1
2
5
1
2
3
4
3
5

ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 18% of the respondents are Highly unsatisfied.

71 b) 18% of the respondents are Unsatisfied.
c) 16% of the respondents are Moderate.
d) 20% of the respondents are Satisfied.
e) 28% of the respondents are Highly satisfied.
Q7. Please express your opinion for the premiums paid for the above
policy?

Particulars No. of Respondents Percentage

Very High 14 28%

High 11 22%
Moderate 13 26%
Low 8 16%
Very Low 4 8%
Total 50 100%

No. of Respondents

4
14
8 Very High
High
Moderate
Low
Very Low
13
11

ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 28% of the respondents think that Premium is Very High.

72 b) 22% of the respondents think that Premium is High.
c) 23% of the respondents think that Premium is Moderate.
d) 15% of the respondents think that Premium is Low.
e) 12% of the respondents think that Premium is Very Low.
Q8. How do you come to know about this policy?

Particulars No. of Respondents Percentage

Advertisements 10 20%
Friends and Relatives 12 24%
Direct Selling Agents 21 42%
Others 7 14%
Total 50 100%

No. of Respondents

7
10

Advertisements
Friends and Relatives
Direct Selling Agents
Others
12
21

ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 20% of the respondents know about it from Advertisements.

b) 24% of the respondents know about it from Friends and
Relatives.
73 c) 42% of the respondents know about it from Direct Selling
Agents.
d) 14% of the respondents know about it from Other Sources.
Q9. Are you satisfied with the incentives (tax benefits or Bonuses)
associated with your policy?

Rating No. of Respondents Percentage

Highly satisfied 9 18%

Satisfied 12 24%
Moderate 10 20%
Unsatisfied 11 22%
Highly Unsatisfied 8 16%
Total 50 100%

No. of Respondents

8 9

Highly Satisfied
Satisfied
Moderate
11
12 Unsatisfied
Highly Unsatisfied

10

ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 18% of the respondents are Highly Satisfied.

b) 24% of the respondents are Satisfied.
c) 20% of the respondents are Moderate.
d) 22% of the respondents are Unsatisfied.
74
e) 16% of the respondents are Highly Unsatisfied.
Q10. According to you, in what areas should the insurance companies work
upon?

Particulars No. of Respondents Percentage

Easy Procedures 14 28%

Fewer premiums 10 20%
More Returns 9 18%
Transparency 17 34%
Total 50 100%

18
16
14
No. of Respondents

12
10
17 Series1
8
14
6
10 9
4
2
0
Easy Returns Fewer More Returns Transperancy
premiums

ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 28% of the respondents want Easy procedures.

b) 20% of the respondents want Fewer premiums.
c) 18% of the respondents want More returns.
d) 34% of the respondents want Transparency.
75
Q11. Do You think that services have improved after allowing private
players in insurance sector ?

Particulars No. of Respondents Percentage

Yes 40 80%
No 10 20%
Total 50 100%

20%

Yes
No

80%

ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 80% of the respondents think that services have improved.

b)20% of the respondents think that services have not improved.

 FINDINGS

76
 Research finding
On an analysis and evaluation of the data collected from the respondents the
following findings were found.

• Before establishment of private concerns the share of LIC was 22% hence there is
a wide scope for private concerns to enter in to market.
• Total 100 respondents have been approached out of which 75 are the potential
respondents who have shown interest for investment and finance plan
• Above 20% of respondents are shown interest for investment and financial plan
• About 33.33% of respondents are not interest to give their personal records.
• About 12.67% of respondents have already been covered by other insurance
companies.
• About 10% of respondents have given invalid records.
• About 10% of respondents are newly employed or trainees.
• About 10% of respondents interested for investment plan after knowing ICICI
PRUDENTIAL LIFE INSURANCE products.

77
 Implication in company
Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI invested, in
terms of work force, in terms of market share, in terms of no. of customers. All these
positive stands of the company place at the number one position. On second aspect
whatever amount of money ICICI Prudential save, can be used to increase the no. of
policies, which will helpful to increase the market share of the company. Since the
customers think about the companies in the industry, when they invest money in the life
insurance industry. So it’s necessary to increase the market share of the company. There
are some recommendations.

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

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

• Improve customer services.

In order to take the advantage of being industry leader in private sector, ICICI
Prudential has to improve its customer services. According to my experience in
the company, a good number of customers forget to pay their premium at time so
it causes a big loss to the company. ICICI Prudential has already collaborated
with the ICICI bank for its Bancassurance facility and then can include another
feature in it. ICICI bank can offer a bank account with the life insurance policy in
which an ATM card will be provided. This card will have all the information

78
 regarding the policy as like future premium payment dates, payment made, money
value of the policy at that date, value of the unit linked plan and all other
information what the customer want. This will help the customer to pay premium
on time and save their losses. This will be mutually helpful for both sister
companies, ICICI bank will get new account and ICICI prudential will be able to
more efficient services to their customers.

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

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

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

• Trained the financial advisors more efficiently.

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

79
 Limitation

While working on the topic assigned to me for research work, I have chosen the way of
random sampling. But while carrying out the work I have faced the following problems
i.e. limitation to my studies:

 In the month of June to August in when the temperature was high & due to
frequent power cut in city some people were not ready to talk over the topic
covered under Questionnaire.
 Due to uneven social environment in Sadar, the area was not fully covered as
planned.

While involved in advisor recruitment process, sometime not got appointment from the
persons due to their busy schedule

80
 SUGGESTIONS

1. More lucrative plan should be launched.

2. Company should also check the plans whether the plans are going either in proper
manner or not.

3. Plans should not be so complicate that customer should be problem to understand.

4. There should be launch only appropriate not in large way.

5. Advertising must be done properly specially in rural area and should launch special
plan.

6. Open branch also in rural area.

7. Special gift should be given to agent if work properly

8. Public welfare plan should be undertaken specially in rural area in order to highlight
the company image before the government

81
 Conclusion

The study of different aspects and functional marketing programs and visibility in and
around the Munger, leads to number of conclusions, which can put in the following
words .

ICICI PRUDENTIAL got a better position and giving the rough competition to other
insurance company.

1. Now almost customer likes it due to good service facility.

2. There are lots of plan available in this company
3. New plan 80(D) has got a significant position in the market.
4. Today Icici pru become a most popular company among others insurance
company
5. ICICI Prudential Jeetey Raho is excellent

82
BIBILOGRAPHY

Reference books

Concepts of marketing

1. Marketing management -- Philip kotler

2. Marketing research -- C.R.Kothari

3. Consumer behavior -- Schiffman

4. Marketing management -- Ranjan sexena

6. Others sources

 Internet

www.icicipru.com
www.icici.com
www.prudential.co.uk

83
 ANNEXURE

84
 QUESTIONNAIRE
Dear Sir/Madam,
I am a student of IIMT Professional College, Meerut, conducting a marketing survey
on “CONSUMER BEHAVIOUR AND CUSTOMER SATISFACTION of ICICI
Prudential LIFE INSURANCE, IN MUNGER CITY”. I request you to fill this
questionnaire & I assure that this data will be used only for study purpose & it will be
kept confidential.

Name _________________________________

Address _________________________________
_________________________________
_________________________________
1.Age

Less than 25 c. 35-45

25 – 35 d. 45 and above

2.Qualification

Graduate c. Diploma
Postgraduate d. Other discipline

3.Occupation

Business c. Job holder

Professional d. Other

4. What is your average annual income?

Up to 1 lakh
1 lakh to 3 lakhs
3 lakhs to 5 lakhs
5 lakhs and more

85
 5.Your family size
Below 5 members
5 – 10 members
Above 10 members

6.According to you life insurance is,

A tax saving plan
A saving scheme with good return
A financial security for the family
Risk coverage
All the above

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

YES NO

If yes
8..Which are in these?
Unit gain plan
Invest gain plan
Whole life plan
Children plan
Pension plan
Others __________________

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

Yes No

If yes what are they?

Sum assured
Additional benefits
Maturity date
Risk coverage

86
 10.. According to you what are the disadvantages in an insurance plan?
Lapsation
Liquidity
Fixed term
Unable to decide your premium
Unable to decide the sum assured
High risk coverage at high premiums
Other disadvantages

11. In which of the following would you like to invest?

Equity fund
Debt fund
Balanced fund
Cash fund
Mutual fund
Recurring deposits

12. Any suggestion for ICICI Prudential Life Insurance

______________________________________________________
______________________________________________________

Thank you for sparing your valuable time

87