Professional Documents
Culture Documents
DISSERTATION
ON
BY
SATISH S MUSTI
Register Number
04XQCM6080
Under the guidance of
Dr. N.S. Viswanath
Under my guidance. This has not formed a basis for the award of any degree/
Place: Bangalore
Date: Dr.N.S.Viswanath
PRINCIPAL’S CERTIFICATE
under the guidance of Dr.N.S.Viswanath. This has not formed a basis for the
Place: Bangalore
Date: Dr.Nagesh.S.Malavalli
ACKNOWLEDGEMENT
At the very outset, I take the opportunity to thank Dr. Nagesh Malavalli,
Principal, M.P. Birla Institute of Management for providing me with the academic
support. I express my sincere regards and gratitude for every individual linked with
my Research Work.
I would like to thank all the respondents and personnel of ICICI Lombard general
insurance co ltd for their co-operation and providing the relevant data required.
Last but not the least; I would like to thank the Almighty for being there always in
this endeavor.
DECLARATAION
I hereby declare that the project report titled “Market analysis of office insurance
products with reference to ICICI Lombard general insurance co ltd..” is a record of
independent work carried out by me towards the partial fulfillment of the
requirements for the Masters Degree in Business Administration course of
Bangalore University, at M.P. Birla Institute of Management, Associate
Bharatiya Vidya Bhavan, Bangalore – 560001.
This has not been submitted for the purpose of any award or degree or diploma of
1 EXECUTIVE SUMMARY
3 INDUSTRY PROFILE
4 COMPANY PROFILE
5 PRODUCT PROFILE
6 DATA ANALYSIS AND INFERENCES
7 SUMMARY OF FINDINGS
8 RECOMMENDATIONS AND CONCLUSIONS
BIBLIOGRAPHY
EXECUTIVE SUMMERY
EXECUTIVE SUMMARY
The objective of the research is to analyze the market and to find out
customer awareness level about office insurance products. To know about effective
of company service
The term insurance market broadly covers the insurance companies, the
buyers of insurance and the various intermediaries.
Historical
Till May, 1971 there were 107 companies operating in the market, both
Indian and foreign. Some companies were in the co-operative sector. The size of
the companies and there reach varied to a great extent. Whereas many companies
used to underwrite all types of covers fire, marine& miscellaneous insurance, some
other restricted their area of operation basically to selected field only like Marine
Hull Business.
The government in May, 1971 took over the undertaking of all the
companies as a prelude to ultimate nationalization. This was brought about under
the General insurance business (Nationalsation) Act, 1972.
The four subsidiary companies operated under the all direction of the GIC.
Each of these had almost a similar structure with 4 tiers. i.e. the branch at the
bottom rung; above them the divisional office; thereafter Regional office and the
HO at the apex.
Present Scenario:
RESEARCH GAP
PROBLEM STATEMENT:
How can one assess the market awareness for office insurance products.
How can we tap this potential after assigning, through strategic marketing
of services.
The scope of the study is restricted to analyze the market for office
insurance products with various offices in Raichur.The study intends to know
awareness of insurance products.
To find out the customer awareness level for office insurance products.
OPERATIOANAL DEFINATIONS:
Market:
Traditionally, market was a physical place where buyers and sellers gathered to
exchange goods. It is also a collection of buyers and sellers who transact over a
particular product.
A simple market system can be shown as:
Communication
Goods/Services
Market
Industry (A collection of
Money Buyers)
Information
Marketing:
It is a societal process by which individual and groups obtain what they need and
want through creating, offering and freely exchanging products and services of
values with others.
Marketing research:
Product:
Brand:
Bodily injury
Means any accidental physical bodily harm but does not include any
sickness or disease.
Means any full or part time, permanent or temporary, activity under taken
in the premises with a view to profit or gain.
Burglary
Means an act involving the unauthorized entry to or exit from the insured’s
property or attempt threat by unexpected, visible, forcible and violent means, with
the intent to commit an act of theft.
Bank
Means and includes bank of every description, post office and government
treasury.
Contents
Means the following used for business or business purposes, so long as they
are owned by the insured and / or for which the insured legally responsible for
including family of insured, directors, karta of HUF, partners and the like goods
such as furniture, stock, machinery, equipment, fixtures, fittings and interior
decorations but excluding money, jewelry, and valuables.
Employee
Means any person employed by the insured to perform certain duties for
consideration, either expressly or impliedly in the course of employment
Insured or insured’s
Means the person named in the policy as the policy holder and / or his
family, and / or his parents, and / or directors and / or karta of HUF, and the like.
Medical expenses
Period of insurance
Means the period of time stated in the schedule for which the policy is valid.
Policy
Means insured’s proposal, the schedule, company’s covering letter to the insured,
insurance clauses, definitions, exclusions, conditions and other terms contained
here in and any endorsement attaching to or forming part hereof, either at inception
or during the period of insurance.
Premises
Means the schedule, and any annexure to it, attached to and forming part of
this policy.
Sum insured
Means and denotes the amount of cover available under each section as
stated in schedule or any revisions thereof based on claim settled, as stated in the
scope of cover of the policy and, where appropriate, as more particularly described
and limited per item insured in any annexure to the schedule. This is the maximum
that the company will pay for each and every claim, and in all, under that section.
RESEARCH DESIGN ADOPTED
TYPE OF RESEARCH
The criteria for selecting this particular design are that, the problem of the
project must be described and not arguable. The data collected is amenable to
statistical analysis and has accuracy and significance. It is possible to develop valid
standards of comparison. It lends itself to the verifiable procedure of collection and
analysis of data.
SAMPLING TECHNIQUE:
SAMPLING UNIT
The samples includes various offices & shops in and around of Raichur city.
SAMPLE SIZE
The sample size for listing questionnaire of research is 100, and the sample
size is broken down in to two samples i.e. a sample size of 80 respondents from the
offices and shops and the sample size of 20 respondents from the customers who
are already availing the service of ICICI Lombard.
Primary data:
Secondary data:
The secondary data was collected from the company reports, broaches,
manuals, text books and Internet. The customer of 20 respondents was provided by
the company for assessing the service provided by a company.
RESEARCH LIMITATIONS:
This research is company- specific and confined only to north east part of
Karnataka, the problem of generalization becomes obvious
Limited sample size is taken.
INDUSTRY PROFILE
INDUSTRY PROFILE
This Act was passed in 1938 and was brought into force from 1st July, 1939.
The act has been amended a number of times, the most important amendments
being made in 1950, 1968 and especially by IRDA ACT, 1999.
The act provided that the Central Government shall form a Government
Company in accordance with the provisions of the Companies act, 1956 to be
known as the General Insurance Corporation of India for the purpose of
superintending, controlling and carrying on the business of general insurance.
The Insurance Act, 1938 provided that the Government should appoint a
controller of Insurance, to ensure that insurance companies register under the act,
comply with the various provisions of the act. His duties included approval of the
terms and conditions of various plans being offered by the companies, including
the adequacy of the basis of premier, scrutiny of the various returns on
investments, annual accounts, periodical actuarial valuations, etc. Required to be
submitted by the companies. The Controller also had powers to order special
investigations and also to take over the management of the companies.
The IRDA will consist of a chairperson and more than five whole time
members and not more than four part time members. The whole time members
shall hold office for 5 years or until the age of 62 (65 in the case of chairperson)
whichever is earlier. Part members will hold office for not more than 5 years.
History
Lightning-fast claim settlement is one of the key areas of focus for ICICI
Lombard. Our dedicated relationship managers, wide spread network across India
and presence of 24 *7 call centers assure our customers that we are always on call,
day or night. Our tie-up with Cunningham Lindsey, the world’s second largest loss
adjustors with its network in 80 locations across India, ensures a surveyor on site in
less than 24 hours.
Rural Initiative:
ICICI Lombard believes in striking the right balance between the commercial
and socio-economic aspects of the insurance business. In its Endeavour to offer
tailor-made products to meet the requirement of the rural population, explore
business opportunities in the related segments and build a competitive edge
through strong distribution network and product innovation, ICICI Lombard uses
intermediaries like ICICI Banks kiosks, direct selling agents, state-level tie-ups,
ITC’s e-Chou pals, NGO’s and other micro- finance Institutions (MFIs). The rural
segment offers immense business opportunities for insurers since it constitutes
50% of the GDP. Growing per capita and disposable income and rising financial
awareness among rural masses has opened up new avenues for insurers in this
segment.
Corporate Business:
ICICI Lombard via its CSG segment aims to tap large corporate with high
premium potential. The company has emerged as a major player in the corporate
segment with a well-balanced portfolio. It has made forays into specialized
products that require complex product development and strong underwriting skills.
In addition, a strong distribution has enabled it to reach out to over 3,000
corporate. It also offers single point contact through dedicated relationship
managers for both sales and customer service.
Bank assurance
The Company has set up a dedicated SBU to cater to banc assurance business
managed by dedicated teams for each bank partner across all locations to ensure
highest levels of service to the channel and their customers and to provide
complete support and value addition to the bank partners. Our banc assurance
philosophy emphasizes on complete respect for the partner’s brand and business
model with a clear understanding that the partner owns the customer. The
company has tied up with few partners like ABN Amro Bank, ICICI Bank, UTI
Bank etc, to ensure complete support and continuous value addition to the partner.
The business philosophy behind the banc assurance initiative is to leverage
distribution synergies with partners. The channel offers unmatched product suite
customized for bank channels and customers.
Retail
ICICI Lombard aims to tap retail segment through multi-product and multi-
channel approach to marketing. The company believes that retail segment has
immense potential and will drive the company’s growth in future. It has presence
in all retail categories -- travel, health, home and motor. It has launched a number
of innovative products and features in each category like `Pay-per-day’ in Overseas
Travel Insurance and floater cover for individual Health Insurance. The key to
success in this area is effective market segmentation and targeted product offerings
that meet customer needs.
E-channel
Product platform with key partners -- ICICI Direct, ICICI Bank, preferred partners
– moneycontrol.com and indiatimes.com and other websites.
Board Members
Mr. K V Kamath, Chairman
Mr. R Athappan, Director
Mr. R Athappan, Director
Mr. B V Bhargava, Director
Mr. Dileep Choksi, Director
Mr. James F Dowd, Director
Ms. Lalita D Gupte, Director
Ms Kalpana Morparia, Director
Mr. S Mukherji, Director
Mr. Chandran Ratnaswami, Director
Mr. H N Sinor, Director
Mr. Sandeep Bakhshi, Managing Director & CEO
COMMITTEES
Audit Committee
Mr. S Mukherji, Chairman
Mr. Dileep Choksi, Director
Mr. James F Dowd, Director
Investment Committee
VALUES
Managing Risk
The ability to identify, quantify and manage risk is intrinsic to success in the
business of insurance. ICICI Lombard’s risk management approach balances the
need to provide cost effective solutions to our customers while delivering optimal
shareholder returns. Success on both fronts is reflected in the numbers: while the
number of policies sold increased by 2.5 times in fiscal 2004, profits grew almost
ten- fold during the year. A strong capital base gives an insurer the ability to
service large claims in the event of a catastrophe. This is a key determinant of
growth as it provides comfort to customers in a business that is largely driven by
trust. Our reinsurance program is formulated in line with the guidelines laid down
by the Insurance Regulatory Authority of India (IRDA), which aims at optimum
retention of premium within the country and adequate risk coverage and
diversification. Our choice of reinsurance partners is in turn determined by their
strong reputation, high credit rating and the alignment of their strengths with our
risk management objectives.
Staying ahead in managing risk through:-
Human Resource:
Partnerships
During the year 2004: The company in coordination with the World Bank
launched Weather Insurance.
The company’s Overseas Travel Insurance is the only product in the market
that offers premium calculation on a ‘Pay-per-day’ basis as against paying
premium on a slab-wise basis.
Unique Senior Citizen Overseas Travel Insurance Plan to cover senior
citizens up to the age of 85 years was launched by the company during the
year 2004. It is the only policy of its kind in the market.
Loan Care – a first of its kind product to be launched in India – protecting
the lender from borrower default on account of death, permanent disability,
loss of job and loss pay due to critical illness.
Channels
Sales force, agents and brokers are the driving force behind the company’s
business. They are the point of contact with the end customer and share the
company’s vision of bringing innovative insurance solutions to customers'
doorsteps.
Direct:
The company’s sales force -- sales executives and sales officers – form the
company’s backbone and are the most powerful assets behind our growth.
Indirect:
Agents: Agents are the face of the company and are critical to company’s
growth. The company has individual and corporate as its agent.
Online:
ICICI Lombard has developed a web-based system to meet all the pre- and
post-policy transaction and MIS needs of its customers. The online initiative
supports online policy sales, which is directly linked to our payment gateway
server for online payments. The company uses the web integration process with its
channel partners to streamline its sales process, increase revenues and reduce costs,
delays and buyer dissatisfaction.
The main features of Online Insurance are:
Do It Yourself architecture.
Fast, convenient and easy.
Buy / renew policies.
24\7 access to all your policy details.
Regular premium renewal reminders.
Single view of all insurance policies held by an individual.
Online Manager: A tool to manage your entire insurance portfolio.
Instant issuance of digitally signed policies.
Most advanced technology and state-of-the art infrastructure.
Online claim intimation and status-tracking.
Bank assurance:
Tele Sales:
Customer Segments:
With our wide range of products, we cater to the needs of people from all
kinds of backgrounds. The profiles of our clients vary tremendously, and so do
their needs. In our endeavor serve them at our best; we have pages dedicated to
each segment.
Different Segments:
NRIs
Student
Rural & Agriculture
NRIs
ICICI Lombard brings insurance services for the Global Indian. If you are an
NRI, and your family or your parents are in India, your key concerns would be to
secure your assets back home (home /commercial property / motor) and the health
of your dependents in India. In addition, if your family or your parents are
planning to visit you abroad, you can opt for our travel plan to mitigate all travel
related risks. Moreover, it is lighter on your pockets too.
Rural Insurance:
Products we offer
Health Insurance - We provide protection to the health of the rural folk through
three plans - Family Health Insurance, Poorna Suraksha Bima and Sampoorna
Arogya Bima.
Home Insurance - Our comprehensive policy protects much more than just the
home. Through our network channels, we ensure that the houses in the rural sector
are insured against natural and other perils.
Tractor Insurance - Tractors are one of the most precious assets to the rural folks.
Our comprehensive package policy covers not just own damage but also third party
liability and personal accident.
Weather Insurance - Weather Insurance is an insurance cover against losses
incurred due to uncertainties in climatic conditions. It can be used to hedge any
vulnerability of assets or any other damage incurred due to erratic and irregular
weather.
Shop Insurance - Shop Insurance is a comprehensive policy that covers both the
structure and the contents of a shop and protects it against any financial loss in case
of an unfortunate incident.
Student Travel Welcome to Univ. Search where you can get a detailed report on
your university specific insurance needs. Different universities have different
insurance requirements and looking for an insurance plan covering all these can be
quite a task. We at ICICI Lombard have customized plans for over 150 universities
worldwide. Choose your university from the dropdowns below to get a detailed
report on your insurance needs.
The key benefits of ICICI Lombard Student Travel Insurance are:
I] FIRE:
Excluding destruction or damage caused to the property insured
A.
a. It’s own fermentation, natural heating or spontaneous combustion.
b. It’s undergoing any heating or drying process.
B
a. Burning of property insured by order of nay public authority.
II] Lighting
2] BURGLARY:
The company shall compensate the insured for any loss or damage, caused by
burglary, to the contents of insured’s premises.
3] CASH IN SAFE:
The company will compensate the insured in respect of loss of, or damage
to, money and/or valuables caused by burglary and/or attempted burglary when
such money and/or valuables are contained in a domestic safe or vault which is
protected by appropriate and adequate security measures with lock in key.
4] CASH IN TRANSIT
The company shall compensate the insured for loss of money in coins
and/or notes caused by burglary, robbery or theft occurring while such money is in
the insured’s possession and is being conveyed by the insured to the insured’s
premises from the insured’s bank /ATM from where such money had been
withdrawn immediately prior to the occurrence.
6] GLASS BREAKAGE:
The company shall compensate the insured for loss or damage to any fixed
glass other than that which are specifically excluded hereunder, caused by any
accidental, external and visible means.
7] CHEQUE FORGERY:
The company shall compensate the insured for any loss to the insured caused
by forgery or material alteration of cheques, drafts or other negotiable instruments
issued by, or in favor of, the insured.
8] EMPLOYERS LIABILITY:
The company shall indemnify the insured against the legal liability of the
insured in respect of any bodily injury sustained by, or the loss of life of, the
insured’s employees arising out of and in the course of their employment.
The following items as specified occurring in and about the insured’s premises.
Accidental death or bodily injury to any person other than insured or the
insured employees / staff. This coverage shall be limited to the sum insured
for any accident or series of accidents arising from any one event or cause,
and for all accidents during the period of insurance, and,
B. The liability of the company in respect of any one person or all persons so
Employed and in respect of losses in any one period of insurance shall not
exceed the sum insured.
Health Insurance:
We save money for a better future. But life is full of surprises; a medical
emergency can strain your hard-earned investments. Now, let your savings be
untouched, get secured.
Home Insurance:
Insure your home and its contents against natural calamities like fire, earthquake,
flood, gas cylinder explosion, fire due to electric short circuit as well as man-made
disaster like burglary.
Home Plans
Gold Plan:
The Gold plan covers much more than just your home. It offers family protection,
covers loss of cash, public liability, temporary resettlement,
alternative accommodation and baggage insurance. Other add ones offered are loan
repayment for home and car and cover for terrorism.
Silver Plan:
The Silver plan covers the structure of your home and its contents from natural
and man-made calamities like fire, flood, storm and burglary. The add ones offered
include expenses of rent for alternative accommodation and terrorism.
Motor Insurance:
Your vehicle helps you reach destinations and enables you to commute from
one place to another. But it might face some damage in an accident or get stolen.
The security of your co-passengers can be endangered during accidents. Motor
insurance takes care of all these possibilities and more.
Motor Plans
Four Wheeler Package Policy:
A comprehensive policy that not only covers you against third party but
also against accidents, damage, injury and much more.
Travel Insurance:
You do not want anything to ruin your hard earned holiday or your crucial
business meeting. There is a possibility of some unexpected occurrence no matter
how perfectly you plan your trip. Unfortunate events such as baggage loss,
passport loss, a medical emergency or an accident can affect you. Having Travel
Insurance protects you from all such perils at a fraction of the cost of your trip.
Travel Plans
Individual Overseas Plan:
All overseas travel policies charge premium on a slab basis. Which means if you
are on a 16 day trip, you end up paying for 21 days, as the slab is 14 to 21 days.
But with us you ‘pay per day’.
Student Travel Plan:
A comprehensive cover, which insures you against unfortunate incidents or
unexpected expenses abroad and provides timely assistance and support when you
need it the most.
Domestic Travel policy takes care of you and your valued assets left at home. A
policy that let’s you enjoy your trip leaving your worries with us
DATA ANALYSIS AND
INFERENCES
DATA ANALYSIS AND INFERENCES
No
0%
Yes
84%
, The response given by respondents 83.75 are aware of office insurance and
16.25 knows very little about office insurance This clearly shows that there is no
proper advertisement reach to the people.
Q2] If Yes, How do you come to know about Office Insurance?
Table 2:
Media No.of Respondents Percentage
TV 40 50
Newspapers 19 23.75
Agents 21 26.25
Total 80 100
Source: Field Study
Agents
26%
Newspaper TV
s 50%
24%
43
50
40
20
17
30
20
10
0
Company Premium Service
53
60
50
40
17
30 10
20
10
0
More than 5 More than 10 More than 20
Yes
25%
No
75%
10
10
8
5 5
6
2 0
0
ICICI HDFC Chubb United India Oriental
Lombard
The chart depicts that, 25% of the respondents wants to avail services of ICICI
Lombard, 50%of the respondents wants to prefer united India and 25%wants to
prefer services of oriental. The data shows around 25% of people are interested in
taking insurance in ICICI Lombard it means there is an opportunity for company to
capture the market. Most of the respondents want to avail services in government
companies.
Q7] Which type of insurance policy you would like to have?
Table 7:
Type No.of Respondents Percentage
Yearly Renewal 17 85
Others 3 15
Total 20 100
Source: Field Study
Others
15%
Yearly
Renewal
85%
The above chart shows that 85% of respondents would like to have Yearly renewal
policy and 15% of respondents want to have others.
Q8] Which product services you are planning to avail?
Table 8:
No.of
Product services Respondents Percentage
Fire Insurance 12 60
Electronic Insurance 5 25
Burglary Insurance 3 15
Total 20 100
Source: Field Study
12
12
10
6 5
4 3
0
Fire Electronic Burgulary
Insurance Insurance Insurance
It is depicted from the chart that 60% of respondents trying to avail Fire
insurance,25% of respondents planning to avail Electronic insurance and 15% of
respondents trying to avail Burgulary insurance.
Q9] When you are going to have new insurance policy?
Table 9:
No.of
Particulars Respondents Percentage
With in 15 Days 5 25
15 to 30 Days 15 75
30 to 45 Days 0 0
Total 20 100
Source: Field Study
30 to 45 With in 15
Days Days
0% 25%
15 to 30
Days
75%
No. of
Opinion Respondents Percentage
Very Good 8 40
Good 10 50
Normal 2 10
Total 20 100
Source: Field Study
Good
50%
No.of
Amount Respondents Percentage
More then Rs.2000 4 20
More then Rs.5000 4 20
More then Rs.8000 12 60
Total 20 100
Source: Field Study
More then
Rs.2000
20%
The above chart depicts that 20% of respondents paying premium more then
Rs.2000,20% of respondents paying premium more then Rs.5000 and 60% of
respondents paying more then Rs.8000.major of the respondents are paying more
then Rs.8000 are of big offices and important customers to the company.
Q12] Do you feel it’s really economical?
Table 12:
No.of
Particulars Respondents Percentage
Yes 14 70
No 6 30
Total 20 100
Source: Field Study
Yes 1
17%
2
83%
No.of
Particulars Respondents Percentage
Yes 16 80
No 4 20
Total 20 100
Source: Field Study
No
4
16
Yes
0 5 10 15 20
The above chart depicts that 80% of respondents contacted customer help desk and
20% of respondents did not contacted customer help desk.
Q14] If yes, What is your opinion about customer help desk?
Table 14:
No.of
Opinion Respondents Percentage
Good 10 50
Ok 8 40
Poor 2 10
Total 20 100
Source: Field Study
Poor
2
Ok
8
10
Good
0 2 4 6 8 10 12
To
Complant
Product
To renew related
policy enquiry
The customers dial up to customer help desk for the following reasons.
60% customer dial up for product related enquiry
40% customers dial up for to renew policy
SUMMARY
OF
FINDINGS
FINDINGS
It is concluded from the survey that all respondents are aware about office
insurance and they think they need insurance for their offices.
Most of customers are using only Fire and electronic equipment insurance
policies so marketing executives and agents maintain good communication with
the customers to create the awareness of the policies like Mediclaim, burglary and
GPA
BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS:
1)“MARKETING MANAGEMENT” PHILIP KOTLER
2)“MARKETING RESEARCH” CHURCHILL, AAKER KUMAR AND DEY.
3)”CONSUMER BEHAVIOR” SCHIFFMAN
WEB SITES-
WWW.ICICILOMBARD.COM
WWW.GOOGLE.COM