EXECUTIVE SUMMARY 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 200910 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.
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 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”. 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. Fundamental principles of life insurance contract; 1) Principle of almost good faith: “A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk being proposed whether requested or not”. 2) Principle of insurable interest: “Relationships with the subject matter (a person) which is recognized in law and gives legal right to insure that person”. 2) Non-life (general) Insurance: Triton insurance co. ltd was the first general insurance company to be established in India in 1850, whose shares were mainly held by the British. The first general insurance company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in 1907 . there emerged many a player on the Indian scene thereafter.
The general insurance business was nationalized after the promulgation of General Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance business. CONCEPTUAL BACKGROUND • Satisfaction is defined as . . .
“A person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.” Customer Satisfaction can be defined as supplying or gratifying all wants or wishes, fulfilling conditions or desires, or the state of the mind anything that makes a customer feel pleased or contented. Consumer Behavior: Consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services ideas, or experiences to satisfy needs and desires Customer value: The ratio between the customers’s perceived benefits (economic, functional and psychological) and the resources (momentary, time, effort, psychological) used to obtain those benefits. Customer satisfaction: Customer satisfaction is the individual’s perception of the performance of the product or service in relation to his or her expectations. Motivation: The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.
Personality can be described ad the psychological characteristics that both determine and reflect how person responds to his or her environment. Perception is defined as the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. Consumer learning is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior. THE CONSUMER ADOPTION PROCESS The consumer adoption process is the process by which customers learn about new products, try them, and adopt or reject them. Today many marketers are targeting heavy users and early adopters of new products recognizing that specific media can reach both groups and tend to be opinion leaders. The consumer adoption process is influenced by many factors beyond the marketer’s control, including consumers and organizations willingness to try new products, personal influences and the characteristics of the new products or innovations
STAGES OF ADOPTION PROCESS An innovation refers to any good, service, or idea. That is perceived by someone as new. The idea may have long history, but it is an innovation to the person who sees it as new. Innovation takes time to spread through the special system. The consumer adoption process focuses on the mental process through which an individual passes from first
hearing about an innovation to final adoption. Adopters of new products have moved through the following five stages. 1. AWARENESS: The consumer becomes aware of the innovation but lacks information about it. 2. INTEREST: The consumer is stimulated to see the information about the innovation. 3. EVALUATION: The Consumer considers whether to try the innovation or not. 4. TRIAL: The consumer tries the innovation to improve his estimate of its value. 5. ADOPTION: The consumer decides to make full and regular use of the innovation.
STATEMENT OF THE PROBLEM
“Study of consumer behavior & customer satisfaction towards ICICI Prudential Life Insurance Products”.
OBJECTIVE OF THE STUDY
For every problem there is a research. As all the researches are based on some and my study is also based upon some objective and these are as follows.
1. To understand the insurance business and products of ICICI Prudential life insurance co ltd. 2. To find out the people’s perception about life insurance. 3. To find out whether people were really aware of life insurance. 4. To find out how people think about private life insurance. 5. To find out what respondents expect from life insurance. 6. To understand Consumer buying behavior 7. To come out with conclusion and suggestions based on the analysis and the Interpretation of data. SIGNIFICANCE OF THE STUDY The project is concerned with the “STUDY ON CONSUMER BEHAVIOR AND CUSTOMER SATISFACTION AT ICICI PRUDENTIAL LIFE INSURANCE. This study is very useful as the financial market become more sophisticated and complex, investor needs a financial intermediary who provides the required knowledge and professional expertise on successful investing and 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 RESEARCH METHODOLOGY Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. The word research has been derived from French word Researcher means to search.
FRANCIES RUMMER defined “Research: It is a careful inquiry or examination to discover new information or relationship and to expand or verify existing knowledge. Research is the solution of the problem, whether created or already generated. When research is done, some new out come, so that the problem (created or generated) to be solved. RESEARCH DESIGN: Research Design is the conceptual structure within which research is conducted. It constitutes the blueprint for collection, measurement and analysis of data. The design used for carrying out this research is Descriptive. DATA TYPE: In this research the type of data collection is • • Primary data Secondary data
DATA SOURCE: The sources of collection of secondary data are: • • • • • Questionnaire Books Websites Magazine Brochure
SAMPLING PLAN: It is very difficult to collect information from every member of a population .As time and costs are the major limitation that the researcher faces.
A sample of 100 was taken the sample size of 100 individuals were selected on the basis of convenient sampling technique. The individuals were selected in the random manner to form sample and data were collected from them for the research study. ANALYSIS AND INTERPRETATION: Data collection through questionnaire and personnel interview resulted in availability of the desired information but these were useless until there were analyzed. Various steps required for this purpose were editing, coding and tabulating. Tabulating refers to bringing together similar data and compiling them in an accurate and meaningful manner. The data collected by questionnaire was analyzed, interpreted with the help of table, bar chart and pie chart.
1. INDUSTRY PROFILE 1.1 Insurance in India The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. 1.2 A Brief history of the Insurance Sector The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance in India are; 1912: The Indian Life Assurance
For over 50 years, life insurance in India was defined and driven by only one companythe Life Insurance Corporation of India (LIC). With the Insurance Regulatory and Development Authority (IRDA) Bill 1999 paving the way for entry of private companies into both life and general sectors there was bound to be new-found excitement- and new success stories. Today, just three years since their entry, their cumulative share has crossed 13% (source: IRDA), far exceeding expectations. Clearly insurance is on a growth path. The percentage of premium income to GDP which was just 2.3% in 2000-01 rose to 3.3% in 2002-03; and life insurance has emerged as the dominant contributor to this growth. The industry presented a huge opportunity. Life insurance penetration, for instance, was at an abysmal 22% of the insurable population. However, private players have had to rise to many challenges. They were faced with attitudinal barriers towards the category and the perception that insurance was only a tax saving tool. Insurance per se had lost it basic rationale: protection. It wasn’t surprising then that its potential lay frozen and unexploited. The challenge for private insurance players was to change the established category driver and get customers to evaluate life insurance as an investment-cumprotection tool. PREMIUM UNDERWRITTEN BY LIFE INSURERS
The life insurance industry recorded a premium income of Rs.82854.80 crore during the financial year 2005-06 as against Rs.66653.75 crore in the previous financial year, recording a growth of 24.31 per cent. The contribution of first year premium, single premium and renewal premium to the total premium was Rs.15881.33 crore (19.16 per cent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36 percent), respectively. In the year2000-01, when the industry was opened up to the private players, the life insurance premium was Rs.34,898.48 crore which constituted of Rs. 6996.95 crore of first year premium, Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore of single premium. Post opening up, single premium had declined from Rs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the guaranteed return policies. Though it went up marginally in 2003-04 to Rs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a significant shift with the single premium income rising to Rs. 10336.30 crore showing 74.11 per cent growth over 2003-04.
LIC* Private Sector
First year premium including Single premium 1734761.74 (6.34) 244070.58 (152.74) 2065306.36 (19.05) 556457.34 (127.99)
LIC Private Sector Total 4618580.96 (19.47) 67962.05 (343.12) 4686543.01 (20.75) Total Premium LIC Private Sector Total 6353342.70 (15.63) 312032.63 (178.83) 6665375.33 (18.91) 7512728.98 (18.25) 772750.82 (147.65) 8285479.80 (24.31) 5447422.62 (17.95) 216293.48 (218.26) 5663716.10 (20.85)
1.3 Brief Review of Scenario – Insurance Insurance in India started without any Regulation in Nineteenth century. It was story of a typical colonial era. A few British companies dominated the market mostly in large urban centers. Insurance was nationalized mainly on 3 counts First, Indian lives were not insured. Second, even if they were insured, they were treated as substandard lives and extra premium was charged. Third, there were gross irregularities in the functioning of Life insurance was nationalized in the year 1956, and then general insurance was nationalized in the year 1972. In 1999, the private insurance companies were allowed back again into insurance sector with maximum cap of 26 percent foreign holding. ♦ 1818 The British introduce to India, with the establishment of the Oriental Life Insurance company in Calcutta. ♦ 1850 Non life insurance debuts, with Triton Insurance Company.
♦ 1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer ♦ 1907 Indian mercantile Insurance is the first Indian non-life insurer. ♦ 1912 The Indian life assurance companies’ act enacted to regulate the life insurance business. ♦ 1938 The insurance act, which forms the basis for most current insurance laws, replaces earlier act. ♦ 1956 Life insurance nationalized, government takes over 245 Indian and foreign insurers and provident societies. ♦ 1956 Government sets up LIC ♦ 1972 Non life insurance nationalized, GIC set up. ♦ 1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up to draw up a blue print for insurance sector reforms. ♦ 1994 Malhotra Committee recommends re-entry of private players, autonomy ot PSU insurers. ♦ 1997 Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up. ♦ 2000 IRDA starts giving licensed to private insurers ♦ 2001 ICICI Prudential Life Insurance came into the market to sell a policy. ♦ 2002 Banks were allowed to sell insurance plans, as TPAs enter the scene, insurers start settling non-life claims in the cashless mode. 1.4 The Insurance Regulatory and Development Authority (IRDA): Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDA’s online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.
With the demographic changes and changing life styles, the demand for insurance cover has also evolved taking into consideration the needs of prospective policyholder for packaged products. There have been innovations in the types of products developed by the insurers, which are relevant to the people of different age groups, and suit their requirements. Continued innovations in product development has resulted in a wide range of flexible products to meet the requirements for cover at different stages of life -today a variety of products are available ranging from traditional to Unit linked providing protection towards child, endowment, capital guarantee, pension and group solutions. A number of new products have been introduced in the life segment with guaranteed additions, which were subsequently withdrawn/toned down; single premium mode has been popularized; unit linked products; and add-on/riders including accidental death; dismemberment, critical illness, fixed term assurance risk cover, group hospital and surgical treatment, hospital cash benefits, etc. Comprehensive packaged products have been popularized with features of endowment, money back, whole life, single premium, regular premium, rebate in premium for higher sum assured, premium mode rebate, etc., together with riders to the base products.
1.5 Historical Perspective ⇒ Prior to 1956 ⇒ 1956 ⇒ 2001 -242 companies operating
-Nationalization- LIC monopoly player -Government control -Opened up sector
1.6 Contribution to Indian Economy Life Insurance is the only sector which garners long term savings. Spread of financial services in rural areas and amongst socially less privileged. Long term funds for infrastructure. Strong positive correlation between development of capital markets and insurance/pension structure. Employment generation. 1.7 Insurance Industry prior to de-regulation Prior to deregulation in 2000, market was a public monopoly.
Public Monopoly - 2000 Offices - Over 800,000 agents Distribution through tied agents only Sales approach primarily on a tax savings platform Traditional style product offering : Endowment and money back plans Inadequate and inflexible products Pensions: Small part of product offer Limited focus on customer needs
1.8 Improving Service Standards
⇐ Pre Deregulation – Limited Distribution
Channel Access ⇒ Advisors
Service Points ⇒ Branch Network
Use of IT ⇒ Limited use of IT
⇒ Post Deregulation – Service through Distribution
Multi Channel Access
Multiple Service Use of IT Points ⇒ Advisors ⇒ Call Centers ⇒ Shorter time around time ⇒ Brokers & ⇒ Email ⇒ Claims Corporate agents ⇒ Website ⇒ Bancassurance ⇒ Policy Issuance ⇒ Branch Network -16-
2. 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 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). 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. 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 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. 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 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 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 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.
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 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 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. 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 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 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. We also have examples of joint ventures between the bank and insurer such as SBI Life and ICICI Prudential.
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 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.
The joint st rengt hs
A powerful joint venture partnership with each carrying a set of strengths complementing each others
Infrastructure Customer base Market Innovators
2.4 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 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. 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. • Premier Life is a limited premium paying plan that offers customers life insurance cover till age of 75. -31-
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. 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 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. 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.
DATA ANALYSIS AND INTERPRETATION 1. Age of the respondents
PARTICTULARS Less than 25 25 - 35 35 - 45 Above 45 TOTAL
NO.OF.RESPONDENT 11 40 20 29 100
PERCENTAGE 11% 40% 20% 29% 100
Age of the Respondents
NO.OF.RESPONDENT 100 80 60 40 20 0 Less 25 - 35 35 - 45 than 25 Above 45 TOTAL PERCENTAGE
ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) 11% of the respondents are less than 25 years old. 40% of the respondents are between 25 and 35 years of age. 20% of the respondents are between 35 and 45 years of age. 29% of the respondents are more than 45 years of age.
2. Qualification of the respondents. PARTICUALR Graduate Post Graduate Diploma Other discipline TOTAL NO.OF.RESPONDENT 52 29 8 11 100 PERCENTAGE 52% 29% 8% 11% 100%
Qualification of the Respondents
Graduate Other discipline 100 80 60 40 20 0 NO.OF.RESPONDENT PERCENTAGE Post Graduate TOTAL Diploma
ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) 52% of the respondents were graduate 29% of the respondents were post graduate 8% of the respondents were diploma 10% of the respondents were other discipline
3) Occupation of the respondents PARTICULARS Business man Professionals Job holders Others TOTAL NO.OF.RESPONDENT 34 18 37 11 100 PERCENTAGE 34% 18% 37% 11% 100%
Occupation of the Respondents
Business man Others 100 80 60 40 20 0 NO.OF.RESPONDENT Professionals TOTAL Job holders
ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) 34% of the respondents are businessmen. 18% of the respondents are professionals. 37% of the respondents are job holders. 11% of the respondents are background.
4) Average annual income of respondents. PARTICULARS Up to 1 lakh 1 lakh - 3 lakh 3 lakh - 5 lakh 5 lakh & above TOTAL NO.OF.RESPONDENT 33 43 20 4 100 PERCENTAGE 33% 43% 20% 4% 100%
Average annual income of respondents.
100 80 Up to 1 lakh 1 lakh - 3 lakh 3 lakh - 5 lakh 5 lakh & above TOTAL 60 40 20 0 NO.OF.RESPONDENT
ANALYSIS: From the survey it was found that amongst 100 respondents a) 33% of the respondents have an average annual income up to 1 lakh b) 43% of the respondents have an average annual income from 1 lakh to 3 lakh c) 20% of the respondents have an average annual income from 3 lakh to 5 lakh d) 4% of the respondents have an average annual income above 5 lakh
5) Family size of respondents PARTICULARS Below 5 members 5 - 10 members Above 10 members TOTAL NO.OF.RESPONDENT 50 32 28 100 PERCENTAGE 50% 32% 28% 100%
28% 50% below 5 members 5- 10 member above 10 member 32%
ANANLYSIS: From the survey it was found that amongst 100 respondents a) 50% of the respondents are below 5 members. b) 32% of the respondents are between 5 to 10 members. c) 28% of the respondents are above 10 members.
6) According to life insurance is. PARTICULARS Risk Coverage Tax Savings Good return Security All the above TOTAL NO.OF.RESPONDENT 10 3 4 3 80 100 PERCENTAGE 10% 3% 4% 3% 80%
Life Insurance is
Risk Coverage Security 100 80 60 40 20 0 NO.OF.RESPONDENT Tax Savings All the above Good return TOTAL
ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) e) 10% of the respondents say risk coverage. 3% of the respondents say tax savings. 4% of the respondents say good returns. 3% of the respondents say financial security. 80% of the respondents say all of the above.
7) Awareness of ICICI Prudential life insurance PARTICULARS Yes No TOTAL NO.OF.RESPONDENT 17 83 100 PERCENTAGE 17% 83% 100%
Awareness of ICICI Pru
Yes 100 80 60 40 20 0 NO.OF.RESPONDENT No TOTAL
ANALYSIS: From the survey it was found that amongst 100 respondents a) 83% of the respondents say that they are aware of ICICI Prudential life insurance co. b) 17% of the say that they are unaware of ICICI Prudential life insurance co
8) Awareness regarding insurance. PARTICULARS Yes No TOTAL NO.OF.RESPONDENT 2 98 100 PERCENTAGE 2% 98% 100%
100 90 80 70 60 50 40 30 20 10 0
ANALYSIS: From the survey it was found that amongst 100 respondents a) 98% of the respondents say that they are aware of insurance. b) Only 2% are unaware of insurance.
9) % of respondents who are under different plans of ICICI Prudential life insurance co. PARTICULARS Invest gain plan Unit gain plan Child gain plan Whole life plan Pension plan TOTAL NO.OF.RESPONDENT 41 36 8 15 No 100 PERCENTAGE 41% 36% 8% 15% No 100%
INSURANCE PLANS OF ICICI PRUDENTIAL
15% 8% 41%
Invest gain plan Unit gain plan Child gain plan Whole life plan Pension plan
ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) e) 41% of the respondents are under invest gain plan 36% of the respondents are under unit gain plan 8% of the respondents are child gain plan 15% of the respondents are whole life plan No body under pension plan
% of respondents benefits of choosing the particular products NO.OF.RESPONDENT 60 20 12 8 100 PERCENTAGE 60% 20% 12% 8% 100%
PARTICULARS Risk coverage Additional benefit Maturity date Sum Assured TOTAL
Benefits of Particular Products
100 90 80 70 60 50 40 30 20 10 0
Risk coverage Additional benefit Maturity date Sum Assured TOTAL
ANALYSIS: a) 36% of the respondents say that a benefit of choosing the particular Product is for Safety of life. b) 20% of the respondents say that a benefit of choosing the particular products is for additional benefit to family c) 12% of the respondents say that a benefit of choosing the particular products is for maturity date d) 8% of the respondents say that a benefit of choosing the particular products is for sum assured
% of disadvantages in insurance plan NO.OF.RESPONDENT 35 20 19 14 12 100 PERCENTAGE 35% 20% 19% 14% 12% 100%
PARTICUALRS Liquidity Lapsation Unable to decide premium High risk coverage Fixed Term TOTAL
Disadvantages in Insurance Plans
100 80 60 40 20 0 NO.OF.RESPONDENT Lapsation High risk coverage TOTAL
Liquidity Unable to decide premium Fixed Term
ANALYSIS: From the survey it was found that amongst 100 respondents a) 35% of the respondents say that disadvantages in insurance plan are liquidity. b) 20% of the respondents say that disadvantages in insurance plan are lapsation. c) 19% of the respondents say that disadvantages in insurance plan is unable decide premium. d) 14% of the respondents say that disadvantages in insurance plan are high risk coverage at high premium. e) 12% of the respondents say that disadvantages in insurance plan is fixed term
% of respondents who want to invest in these different avenues. NO.OF.RESPONDENT 40 25 10 11 5 9 100 PERCENTAGE 40% 25% 10% 11% 5% 9% 100%
PARTICUALRS Recurring Deposit Equity Fund Balanced Fund Mutual Fund Debt Fund Cash Fund TOTAL
9% 40% R.D Equity Balanced fund Mutual Fund 10% 25% Debt Fund Cash Fund
ANALYSIS: From the survey it was found amongst 100 respondents a) b) c) d) e) f) 40% of respondents say that they want to invest in R.D 25% of respondents say that they want to invest in equity 10% of respondents say that they want to invest in balanced fund 11% of respondents say that they want to invest in mutual fund 5% of respondents say that they want to invest in debt market 9% of respondents say that they want to invest in cash
FINDINGS 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.
RECOMMENDATIONS TO 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 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.
QUESTIONNAIRE Dear Sir/Madam, I am a student of Visvesvarya Technological University Belgaum, conducting a marketing survey on “CONSUMER BEHAVIOUR AND CUSTOMER SATISFACTION of ICICI Prudential LIFE INSURANCE, IN Bangalore 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. 1. Name _________________________________ _________________________________ _________________________________ _________________________________ c. 35-45 d. 45 and above
2. Address 3. Age
a. Less than 25 b. 25 – 35
4. Qualification a. Graduate b. Postgraduate 5. Occupation a. Business b. Professional c. Job holder d. Other c. Diploma d. Other discipline
6. What is your average annual income? a. b. c. d. Up to 1 lakh 1 lakh to 3 lakhs 3 lakhs to 5 lakhs 5 lakhs and more
7. Your family size a. Below 5 members b. 5 – 10 members c. Above 10 members
7. According to you life insurance is, a. A tax saving plan b. A saving scheme with good return c. A financial security for the family d. Risk coverage e. All the above 8. Have you taken any life insurance product of ICICI Prudential Life insurance? YES NO
If yes 9. Which are in these? a. Unit gain plan b. Invest gain plan c. Whole life plan d. Children plan e. Pension plan f. Others __________________
10. Are you aware of the benefits in your policy? Yes No If yes what are they? Sum assured Additional benefits Maturity date Risk coverage 11. 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
12. In which of the following would you like to invest? Equity fund Debt fund Balanced fund Cash fund Mutual fund Recurring deposits 13. Any suggestion for ICICI Prudential Life Insurance ______________________________________________________ ______________________________________________________ Thank you for sparing your valuable time
Marketing Management by Philip Kotler, Pearson Education 2nd ed. Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8th ed.
• IRDA Journal • ICICI Prudential Company magazines
Newspaper and Business magazines WEBSITES
• • •
www.iciciprulife.com www.google.co.in/indian insurance industry www.irdaindia.org