PROJCECT REPORT

ON Recruiting financial Advisors & Promoting the concept of insurance as Business opportunity under V.L.I.P ICICI PRUDENTIAL LIFE INSURANCE We cover you. At every step in life JAIPUR In partial fulfillment in the award of B.B.A. degree

SUBMITTED BY RAJESH SANWARIYA DEEPSHIKHA COLLEGE OF TECHNICAL EDUCATION MANSAROVAR JAIPUR -302020

ROLL NO.

EXECUTIVE SUMMARY
The project was conducted in ICICI PRUDENTIAL LIFE

INSURANCE COMPANY LIMITED. The study was related to understanding the customers mind for the products and services provided by the company.

TITLE OF THE PROJECT

ANALYSING THE MARKET POTENTIALITY OF ICICI

PRUDENTIAL LIFE INSURANCE COMPANY.

Location: Jaipur

ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 74 cities and towns in India.

TABLE OF CONTENTS
S. No. I. II. III. IV. V. VI. VII.
VIII.

PARTICULARS Introduction Company Profile Vision And Value Of Company Products of ICICI Insurance Ltd. SWOT Analysis Research Methodology Recommendation Limitations Conclusions Bibliography

IX. I.

ABSTRACT

The basic project is promoting the concept of Insurance from ICICI Prudential as a business opportunity. Business opportunity is in the form of being an advisor with the company. As the company wants to grow in Rajasthan, this can be achieved through quality advisors who can bring more and more business for the company. So the search of prospective advisors is done. The various methods used to determine the prospective advisors are: Personal contacts Tele-calling Leads from the UM/Co.

For this, questionnaire is used which is filled by the prospective advisors. A sample size of 60 is taken out of data about 30 sample is being collected and analyzed. The prospective advisors are told about the company and the business opportunity and are convinced that this the best business opportunity wherein one can earn lost of money with flexible working hours.

Another sub project is to determine the various improvements that can be done in ICICI Prudential products and satisfaction level of the advisors so as to improve the market share of the company. For this, questionnaire is used which is filled by existing advisors. For existing advisors, a sample size of 50 advisors is taken, out of which data about 25 samples is collected analyzed. The effect of the budget 2006-07 on the insurance industry as a whole is also dealt with.

INTRODUCTION

Life insurance is the only tool to secure out life in future. It also provides a safe guard to the uncertainty of our life. Life insurance is the cheapest investment tool in which we can earn more in a short period of time. In the words of D S Hansell Insurance may be defined as a social device providing financial compensation for the effects of misfortune, the payment being made from the accumulated contributions of all the parties participating in the scheme.

The function of insurance is to protect you against losses you cant afford. Insurance reduces anxiety over a possible loss and absorbs the financial brunt of its consequences. India has traditionally been a high savings oriented country being on par with the thrifty Japan. Insurance sector in the United States of America is as big in size as the banking industry there. This gives us an ideal of how important the sector is. Insurance sector changeless the savings of the people to long- term investments. In India where infrastructure is said to be of critical importance, this sector will bring the nations own money for the nation. The global life insurance market stands at $ 1,521.2 billion while the non-life insurance market is placed at $922.4 billion. India takes the 23rd position with US $ 9.933 billion annual premium collections and a meager 0.41% share. Out of the billion people is India; only 35 million people are covered by insurance. Indian insurance market is set to touch $25 billion by 2010, on the assumption of a 7 per cent real annual growth in GDP. In 3 years time we would expect the 10% of the population to be under some sort of an insurance cover. This assuming a premium of Rs. 5000 on an average, amounts to 100 million x Rs. 5000= Rs. 500 bn.

This has made the sector the hottest one in India after IT. With social security and security to the people at large being the agenda for opening the sector, the role of the regulator becomes all the more serious and one that would be carefully watched at every step.

OVERVIEW
India's Number One private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's foremost financial services companies-and prudential plc- a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 20.60 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 580 offices, over 234,000 advisors; and 22 bank assurance partners. ICICI Prudential was the first life insurer in India to receive a National

Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India.
1. Promise a fixed income after you retire or Health insurance that

arms you with the funds you might need to recover from a dreaded disease. 2. Ensure that our customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products. 3. Robust risk management and underwriting practices form the core of our business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process. 4. Entrusted with helping our customers meet their long-term goals, we adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term. 5. Last but definitely not the least, our 16,000 plus strong team is given the opportunity to learn and grow, every day in a multitude of ways.

FUNCTION
ICICI Prudential offers exciting career opportunities for people from a variety of streams. Find out more about how each of the functions contribution growing business.

SALES DISTRIBUTION 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. BANK ASSURANCE 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.

GROUP

The Group Business of ICICI Prudential has been in existence for over 2 years. Today, we are the Number 1 player among private life insurance companies in Group Business excluding Mortgage Reducing Term Assurance (MRTA) with a market share of 26 %( FY 2004-2005). We offer the entire gamut of products including Gratuity, Superannuation Term Insurance, Leave Encashment, Employee Deposit Linked Insurance (EDLI), Mortgage Reducing Term Assurance (MRTA) & Informal Group Term covers.

CUSTOMER SERVICE & 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 lakhes 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 Prudential 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 Prudential 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.

HUMANRE SOURCE 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.

WHAT IS INSURANCE?
Insurance is a legal Contract that protects people from the financial costs those results from loss of life, loss of health, lawsuits, or property damage. Insurance provides a means for individuals & society to cope up with some of the risks faced in every day life by every body. People purchase contracts of insurance, called a Policy, from various insurance companies. Insurance can be divided into three categories: 1) Life Insurance 2) General Insurance 3) Health Insurance Life insurance is a contract for payment of a sum of money to the person assured on the happening of the event insured against. Usually the

contract provides for the payment of an amount on the date of maturity or at specified intervals or at unfortunate death. The contract also provides for payment of premium periodically to the corporation by the assured.

General insurance includes many areas of insurance like marine, motor, engineering, health, fire, etc. The contract provides for the payment of an amount on the happening of some contingency. These types of contracts are annual in nature.

ABOUT LIFE INSURANCE:

The life insurance corporation was established on 01.09.1956 and has been the sole corporation to write the life insurance business in India. The Indian insurance industry saw a new sun when the Insurance regulatory & Development Authority (IRDA) invited the applications for registration as insurers in August, 2000. With the liberalization and opening up of the sector to private players, the industry has presented promising prospects for the coming future. The transition has also resulted into introduction complete opportunities for the professionals.

FEATURES OF INDIAN INSURANCE INDUSTRY: Low market penetration. Ever-growing middle-class component in population. Growth of consumer movement with an increasing demand for better insurance products. Inadequate application of information technology for business. Adequate fillip from the Govt. in the form of tax incentives to the insured. 59% of the advisors are satisfied by the commission provided by the co. Those who are not satisfied said that the commission provided is very low as compared other players in the industry. Most of the advisors are satisfied by the working conditions. This need has become even more important due to steady disintegration of the prevalent joint family system, and emergence of nuclear families. The need to protect your familys ever growing needs is why you need Life Insurance. Following are the reasons:

Lifestyle Maintenance. Costs of Education. Mortgage and Debt protection. Hardships Protection. Replacement of Income.

Retirement Expenses.

ADVANTAGES OF LIFE INSURANCE 1. It is superior to an ordinary saving plan: Unlike other saving plans, it affords full protection against risk of death. In case of death, the full sum assured is made available under a life assurance policy; whereas under saving scheme the total accumulated saving alone will be available. The later will be considerably less than the sum assured, if death occurs during early years.

Easy settlement & protection against creditors: The life assured can name person(s) called Nominee to whom policy money would be payable in the event of his death. The proceeds of a life policy can be protected against the claim of the creditors of the life assured by effecting a valid assignment of the policy. 2. Ready marketability & suitability for quick borrowing: After an initial period. If the policyholder finds him unable to continue payment of premiums, he can surrender the policy for a cash sum. Alternatively, he can tide over a temporary difficulty be taking loan on the sole security of the policy without delay. Further, a life insurance policy is sometimes acceptable as security for a commercial loan. 3. Tax Relief: The Indian Income-Tax Act allows deduction of certain portion of the taxable income, which is diverted to payment of life insurance premiums from the total income tax liability. When this tax relief is taken into account, it will be found that the assured is in effect paying a lower premium for his insurance.

MAJOR PLAYERS IN INSURANCE SECTOR

LIFE INSURANCE

NON-LIFE INSURANCE

BUSINESS Life Insurance Corporation ICICI Prudential Life Insurance HDFC Standard Life Insurance Max New York Life Insurance Birla Sun Life Insurance OM Kotak Mahindra Life Insurance Reliance Life Insurance Allianz Bajaj Life Insurance Dabur CGU Life Insurance ING Vyasa Life Insurance SBI Life Insurance PNB Life Insurance BOB Life Insurance

BUSINESS General Insurance Corporation National Insurance Company The New India Assurance Company The Oriental Insurance Company United India Insurance Company Reliance General Insurance TATA-AIG Insurance Royal Sundaram Alliance General Ins. Bajaj Allianz General Insurance ICICI Lombard Insurance

INTRODUCTION TO THE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and prudential plc, a

leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential equity base stands at Rs. 925 crores with ICICI Bank and Prudential policy holding 74% and 26% stake respectively. In the period April- December 2004, the company garnered Rs 860 crores of new business premiums for a total sum assured of over Rs 7,360 crores and wrote nearly 345,000 policies. Today the company is the No. 1 private life insurer in the country.

DISTRIBUTION

ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 69 cities and towns in India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad, Bangalore, Bareilly, Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun, Durgapur, Faridabad, Goa, Guntur, Gurgaon, Guwahati, Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, /kolkata, Kolhapur, Kota, Kottayam, Lucknow, Ludhiana, Mudurai, Mangalore, Meerut, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Salem, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vapl, Varanasi, Vashi, Vijaywada and Vizag. The company has seven ban assurance tie-ups, having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some co-operative banks, as well as over 160 corporate agents and brokers. It has also tied up with Specialized like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society. ICICI Prudential has recruited and trained about 50,000 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.

ICICI (Industrial Credit and Investment Corporation of India): The World Bank; the Government of India and the Indian Industry, to promote industrial development of India by providing project and corporate finance to Indian industry, established ICICI Ltd. In 1955.

ICICI has thus far financed all the major sectors of the economy, covering 6,848 companies and 16,851 projects As of March 31st, 2000. ICICI had disbursed a total of Rs. 1, 13,070 crores, since inception.

ORGANIZATIONAL STRUCTURE OF ICICI

ICICI Securities

ICICI Lombard General Insurance Company ICICI Bank Limited

ICICI Venture ICICI Prudential Life Insurance Company

HISTORICAL BACKGROUND

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, and Prudential Policy, a leading international financial services group which has its headquarters in U.K.ICICI Prudential was amongst the first private sector companies to begin operation in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential total equity is 6.75 Bn with ICICI Bank & Prudential Policy In the end of year 2003-04, ICICI Prudential had issued over 7.8 lackhs policies, for a total sum assured of over 16000 crores and premium collection is over 951 crores.

The company has a network of about 33000 advisors: as well as 12 banc assurance tie-ups. Today the company stands first in private life insurance in India with a market share of nearly 40%.

VISION

The companys vision is to make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service. They hope to achieve this by: Understanding the needs of customers and offering them superior products and service. Leveraging technology to device customers quickly, efficiently and conveniently. Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to their policyholders. Providing an enabling environment to foster growth and learning for their employees. And above all, building transparency in all their dealings The success of the company is due to its unflinching commitment to 5 core values Integrity, Customer First,

Ownership, Passion, Boundary less.

PRODUCTS OF THE COMPANY

Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative, customercentric products that meet the needs of customers at every life stage. Its 20 products can be enhanced with up to 6 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, facture-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. Cash Bank is an anticipated endowment policy ideal for meeting milestone expenses like a childs marriage, expenses for a childs higher education or purchase of an asset.

Life Time & Life Time 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 Maxi miser.

Life link II is a single premium Market 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 the age of 75. Invest Shield Life is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest.

Invest Shield Cashs a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with flexible liquidity option.

Invest Shield Gold is Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with limited premium payment terms.

Protection Solutions: Life Guard is a protection plan, which offers life covers at very low cost. It is available in 3 options?

Child Plans: Smart Kid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parents who purchase the policy. The policy is designed to provide money at important milestones in the childs life. Smart Kid plans are also available in unit-linked from? Retirement Solutions: Forever Life is a retirement product targeted at individuals in their thirties. Secured plus Pension is a flexible pension plan that allows one to select between 3 of cover.

Market-linked retirement products: Life Time Pension II is a regular premium market-linked pension plan. Life Link Pension II is a single premium market-linked pension plan. Invest Shield Pension is a regular premium pension plan with a capital guarantee on invest able premium and declared bonuses.

ICICI Prudential also launched? Salaam Zindagi. A social sector group insurance policy targeted at the economically underprivileged sections of the society.

Group Insurance Solutions: ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. ICICI Prudential Group Gratuity Plan: ICICI Prudential? 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 Prudential Group Super annuity Plan: ICICI Prudential offers a flexible defined contribution Super annuity scheme to provide a retirement kitty for each member of the group. Employees have the option of choosing from various annuity options of opting for a partial commutation of the annuity at the time of retirement. ICICI Prudential Group Term Plan: ICICI Prudential 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 Prudential Life offers flexible riders, which can be added to the basis policy at a marginal cost, depending on the specific needs of the customer. Accident & disability benefit: If death occurs as the result of an accident during the tern of the policy, the beneficiary receivers an additional amount equal to the sum assured under the policy. Accident Benefit. This rider option pays the sum assured under the rider on death due to accident. Critical Illnesses Benefit: protects the insured against financial loss in the event of 9 specific critical illnesses. Benefits are payable to the insured for medical expanses prior to death. Major Surgical Assistance Benefit: provides financial support in the event of medical emergencies, ensuring benefits are payable to the life assured for medical expenses incurred for surgical procedures. Cover is offered against 43 surgical procedures. 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 on Secure Plus and Cash Plus. Waiver of Premiums: In case of total and permanent disability due to an accident the premiums are waived till maturity. This rider is available with Secure Plus and Cash Plus.

FAQS ON TAXATION:
What are the tax rebates available to an individual in respect of premium paid on life insurance policies? Life insurance premium paid by an individual qualifies for rebate under section 88 of income tax act. An individual can claim rebate on premium paid for a maximum of Rs. 70000 in each financial year. How is tax rebate under section 88 calculated? Calculation of tax rebate under section 88 depends on the individuals gross total income and contribution made towards life insurance premium. Thus if the gross total income is: Less than Rs. 150000 rebate is calculated at 20% of the premium paid towards life insurance. Greater than Rs. 150000 but less than Rs. 500000, rebate is computed at 15% of the premium paid. Greater than Rs. 150000 the individual is not eligible to claim any tax benefit on the Life insurance premium paid.

Are maturity life insurance and pension policies taxable? The maturity process of life insurance policies is not taxable. However under pension plans, any amount received on surrender of the plan shall be deemed to be the assessed income and taxed accordingly. Can a tax rebate to be calculated of the premium is paid by an individual on his/her spouses polices. An individual can make payment on his/her spouses policy and the premium paid will qualify for rebate under section 88. What are the tax benefits available under plans? Under section 88CC where an assess has paid/deposited any amount towards any annuity plan receiving pension fund, he/she will be allowed deduction up to Rs. 100 from the total income. Where the amount paid/deposited into consideration for the purpose of claming deduction a rebate where reference to shall not be allowed under section 88. If a person discontinues premium on his insurance or a pension policy, does he get tax benefit

If a person stops paying premium amount on his/her life insurance policy, it amounts to discontinues of the policy; hence he is not entitled to claim any tax benefits. If a tax payer discontinues the life insurance policy before premiums have been paid of a period of 2 years from the commencement of the policy, no tax deduction is allowed is respect of any premium paid on that policy in the year in which the policy s terminated. Further the amount of tax deduction allowed for the premium paid in the preceding year is also treated as the tax payable for the year in which the policy is terminated. If a person participating in a unit linked insurance plan (ULIP) terminates his policy, and he claim any rebate on the same? If a person participates as unit linked plan (ULIP) and terminates his participation, he will no be entitled to claim ant rebate. Is the amount received on maturity of UTI ULIP scheme taxable? No, the maturity proceeds of UTI ULIP scheme are exempt from tax under section 10(33) subject to the same being received on or after April, 2002. What are the deductions is available in respect of medical insurance premium?

The premium paid under financial insurance premium qualifies for rebate under section 80D as follows: Insurance premium paid or Rs. 10000 whichever is lower. The aforesaid limit is Rs. 15000, where the individual or his spouse of dependent parents or any member of the family (for whom such premium is paid is a senior citizen (i.e. one who is resident in India and who is at least 65 years of age at any time during the previous years).

REGULATIONS THE AGENCY LAWS

The basics of the insurance business in India are governed by the Agency Law, which is part of the Indian Contracts Act, 1872. Further, after the industry got opened up the regulatory authority has been the Insurance Regulatory & Development Authority (IRDA). Agent: The Definition According to the section 182 of the Indian Contract Act, 1872, an agent is a person employed to do any act for another or to represent another in dealing with a third person. In the insurance sector the term Agent is ordinarily applied to a person engaged by the insurer to procure new business. Powers of the Agent

An agent can act only to the extent of authority may be expressed or implied. An authority is said to be expressed when it is given by words spoken or written. It is implied when it is to be inferred from the circumstances of the case. Life Insurance Agent The Insurance Act, 1938 defines as agent as one who is licensed under the act & is paid consideration of his soliciting or procuring insurance business including business relating to continuance, renewal or revival of policies of insurance.

RESEARCH METHODOLOGY
In this section of my project, the requirement is to describe the sources of collecting primary and secondary data. For collecting primary data, method adopted was focus group method. Source of primary data 1. Natural Market Relatives Friends Neighbors 2. Stall Operation

3. 4.

Survey Seminar (Focus Group)

Source of Secondary Data 1. 2. 3. Yellow Pages Database of different companies LI\GI Agents Tele calling leads

Marital Status:

The importance of advisors:

ICICI Prudential Life Insurance Co. Ltd. Aspires to provide state of the art of customers service & opportunities & avenues for enterprising people to grow & prosper. The company wish to grow exponentially that is backed by the latest technology, hence offering its customers:

Faster & more accurate service. Multi-channel distribution systems. Highly trained professional sales people offering quality pre & post sales service. It is in the above mentioned areas of personal specialization where the importance of an advisor clearly stands out the advisor not only contribute in bring in new business for the company, but also plays an important part in offering world-class pre & post sales service to the clients to the clients with the support of the organization. But the company in its principles clearly states out that an advisor to means much more than a salesman or a saleswoman, we at ICICI Prudential recognize out advisors as the ambassadors of our organization in the market place & we consider the advisor force would be our biggest differentiating factor in the coming years. The advisor is an important asset not only for the organization from the business point of view but also to the society on the whole as he/she is someone who provide valuable service to the community be helping people attain financial

security & build funds for their future needs thereby assisting them in getting their financial freedom.

If looked from the other side of the business where the company is operating the competitive Indian market & more so in the business of life insurance where the customers looks for self-belief & faith then the advisor certainly holds the vital link in the overall business proposition. They represent the companys face & words on which the customers can trust because the customers know that face. The advisor helps to create a web for the business to grow & driving the customer to come to the company with complete trust & faith.

THE PROFILE OF AN ADVISOR

Qualifications 1. Age should be ideally between 18- 60 years. 2. Minimum education qualification: Urban areas 12th Class Rural areas 10th Class. 3. Good & convincing communication skills. 4. Capacity to build an impressive network. 5. Engaged in gainful business or corporation.

6. Willing to undergo extensive training & development programs. 7. Pleasing personality. Skills & Competencies As quoted by Mr. Shubro Mitra, Head HR, ICICI Prudential Life Insurance the company is always on a look out for people who have the following the skills & competencies that we require in business are: Actuarial skills. Investments management skills. Core operation skills. Core underwriting skills. Relationship management skills. Project management skills.

Leadership & Team skills High energy levels & infectious enthusiasm. Open to ideas. Strong team players. And above all, unyielding integrity. A passion for achieving result. High caliber & ability.

Job Profile As an advisor for the company, the role of the individual is no way limited to sell the policies of the company. But the role basically starts from the basics of explaining the life insurance aspects & the potential benefits to the customers. Further he is required to assist them in deciding upon the plan that suits them the best in terms of finance and security provided. Therefore the opportunity provided to the advisor is unlimited in no way and the typical benefits can be mentioned as followings: There is absolutely no need of a startup capital. There is the benefit of flexible working hours. The freedom to work from anywhere & being ones own boss. The unlimited earning benefits in form of remuneration & incentives. And the privilege of being a part of a world class sales team. The role of an advisor is multifaceted in the sense that his work scope is in no way limited. But in a nut shell the expectations from an advisor has been laid down by the management in the following manner fewer than two main headings:

1. Providing continuous financial advise to clients Identifying prospective clients.

 Making appointments. Conducting reviews with the prospective/existing clients. Closing the sales contracts. Getting more referrals so as to increase the network. Providing pre & post sales services to clients. 2. The advisor is also required to regularly follow the internal sales & the internal reporting system so as to get the feed back & further leads for the prospective areas of business & improvement. Benefits & Support Provided The benefits have already been mentioned very often in the previous section but its necessary to look into them as a comprehensive criterion. The main benefits & supports that an advisor would be availing of are the distinct ICICI Prudential life advantages.

Rewarding career The job profile as mentioned earlier is unlimited & an advisor will help people realize their dreams & provide them the financial & psychological security & faith. The ultimate rewards will be the

differences made to all these lives & that would be most satisfying in the real sense. Successful Team Being at ICICI gives the opportunity to be a part of Indias best team of life insurance advisors. The company is numerous unions among the private players in the industry & has won numerous recognition & awards that give it the international edge. Attractive Remuneration ICICI offers the most competitive remuneration benefits at person in the industry. Which proves to be very useful from long-term perspective of financial security? There is absolutely no limit to ones earnings & the added incentives just help as advisor to get more than what he/she expects. Independence At ICICI, the advisor is a boss in himself & in the real sense. There is the freedom to choose the workplace, the work timings & the amount of earnings one wants to have. Moreover there is no need of any initial capital investment, yet one can become an entrepreneur in the most unexpected manner. World Class Team

The company leverages on the international linkages that it has to provide the best training available in the industry at the present. The company aims to impart the necessary skills & competencies to all even if there it no previous experience with the individual. The presence of trained in-house trainers & professionals provide the necessary aspects of training required. Moreover, the training is being provided with the help of professional institutions & centers like the RNIS College. Career Agency System ICICIS commitment to Career Agency System imparts support to the advisors at every stage of the business. The company believes in encouraging the advisors to the highest level of success all through their career. One of the distinct factors is the opportunity & the option of a management career option for the successful performers.

Best Infrastructure The huge investments that the company has made to develop the state of art infrastructure throughout the business. The infrastructure provides the necessary tools, technology & human support that enable to build a profitable long-term relationship. Extensive Product Portfolio

The company has got more than four hundred policies for its customers. This consists of the unique individuals, groups, & rider policies. This extensive, diversified & comprehensive range-provides the competitive edge that no other advisor would be having in the market. Sales & Marketing Support The company has got unique sales & marketing tools to help & support the advisors at every stage of the career. Financial Strength ICICI Prudential offers the advisors & the customers unmatched financial strength & solidity. The huge amount of paid up capital & growing revenues are an indicator of the same.

Commission Structure The production targets shall be split into two stages: 1. Minimum Business Guarantee (MBG) 2. Bonus Target The procedures of becoming an advisor

ICICI believes in getting who can align with the companys principle & beliefs well enough to grow on their own. In the words of the top management the company believes that one can become an advisor for the leader only & only if he/she has the following: Confidence Self-motivation Persuasion Urge to be financially independent Relationship skills

The broad step that best describe the procedure of becoming an advisor in the company is as following: Confirmation of mutual interest as between the company & the individual. Appearing & clearing the selection interview. Profiling of the test dates between parties. Draft payment favoring ICICI Prudential Life Insurance Co. Ltd., payable Mumbai. Finalizing of the training dates & the venue.

The company provides for the all-round development of the individual & any previous experience or inexperience in the related field is not an obstacle. The professional approach of the company in the training module helps it to train the incumbents in the best possible manner. The company has got a professional in-house training staff that is one of the best in the practice. The company had laid down for a State-of-art training on: Selling skills. Product knowledge. Relationship skills.

The training is delivering through several convenient options keeping in view the requirements of the individuals & the target of the company. The training is done at the timing & venue decided upon by the parties concerned. The incumbents have to complete hundred hours of training in any model that they choose from. The guidelines laid down for the training are as per the books IRDA. The training concept can be classified according to very different aspects, which can be the delivery medium, & the time involved. On the basis of the delivery medium the process can be of: Face of face training.

 Online training. Self learning. On the basis of the time involved the process can be of: Full time-involving 15 days. Part time-involving 27 days. Online training-involving 2 months. So if we summarize the steps & formalities involved in the whole process, the formalities for a candidate to become the advisor as per the IRDA are: Filling up the insurance advisor form Document required: 7 passport size photographs. Acceptable age proof. Acceptable education proof. Acceptable residence proof. Payment through the demand draft: Completion of the training: Reporting of the form with the DOPS

SWOT ANALYSIS
STRENGTH ICICI Prudential Life Insurance Company Limited is right now the market leader in Private Insurer segment.

WEAKNESS The company right now has lesser number of agents (i.e. financial advisors) than LIC of India, which affects their sales in comparison to LIC of India.

OPPURTUNITY

ICICI Prudential Life Insurance Company Limited can give LIC of INDIA agents an opportunity to join ICICI Prudential Life Insurance Company Limited as ICICI Prudential has got more incentive packages & servicing quality better than LIC of INDIA. Doing this they can reduce their cost of training and can exploit their experience. THREAT Other big brand names like BIRLAS, TATA, HDFC, SBI and AVIVA, RELIANCE etc.

POLITICAL Right one ICICI Prudential Life Insurance Company Limited, can go for opening up more & more offices, as the present political environment is business friendly. ECONOMIC Insurance as we have already discussed is very essential for every person on this face of earth. Being an insurance company, the responsibility of the company also increases by many multiples, as they have to keep an eye on each & every happening going around & provide better & fast service to customers. Along with this, insurance is also very important for building up the infrastructure of any country. The

money collected from the people is invested in many sectors to develop the infrastructure & hence ultimately make the life of the citizens better.

SOCIAL ICICI Prudential Life Insurance Company Limited enjoys a good brand name; they can use it for their profit.

TECHNOLOGICAL ICICI Prudential Life Insurance Company Limited uses latest technology for their operations, which give them an edge over the competition. Support provided by the Unit Manager Fields visits for the incumbents. Training on products & selling skills. Regular business reviews to monitor the progress. The UM acts both as a coach & a mentor. The UM recognizes the high performers. Helps in becoming financially independent.

But the expectations from the team To achieve the sales targets given. To participate in all the meetings being placed Attending all the training programs being arranged. Report for the weekly reviews at the office. Regularly following the sales process. And the advisors are also required to follow the weekly reporting process

LIMITATIONS
As the movement throughout the city is not possible due to certain constraints so the movement was quite restricted. People are not ready to go for training. As the training period is of 17 days and it involves full day, so it becomes difficult for them to leave their offices or shops for such a long time.

The compulsion of selling 12 policies in a year also restricts them from becoming advisors. If they do not fulfill this target, then their license is cancelled after a year. Lack of trust on any company of Private Sector. Lack of knowledge about the products of ICICI Prudential and their total and blind faith on LIC. Sometimes, fresh graduates want to become advisors but the company denies making them an advisor as they are very fickleminded and also unreliable. There is a problem in targeting Chartered Accountants. ICAI, which is the governing body of Chartered Accountants, does not allow them to become advisors. However, now they have permitted some CAs to become advisors, but these are only those ones who are doing jobs somewhere and not allowed the ones who are doing their practice. So, still this decision is very dicey. Sometimes, even those people want to become advisors for the company who are not a localities but then the major problem that they face is that they have got no natural market, so they are very susceptible about their performance and whether they will be able to generate business for the company or not, so they avoid to take up this challenge. It was a great problem to get appointments form people in the month of March, as most of them were busy in filing their returns. Some people ask about comparative analysis with LIC. Some people consider IRDA fees of Rs. 1000 as a constraint.

Non-availability of part-time training. All small towns are not open for doing this business. One person cannot take Life Insurance Agency of two different Companies. Time constraint is the biggest constraint in taking up the study.

RECOMMENDETATION
After going through the above table regarding market share of various companies in the financial year 2003-04, there is no reason why ICICI prudential should rejoice of being the number one company in the

country. The growth that companies like BIRLA SUNLIFE, SBI LIFE INSURANCE, TATA-AIG, BAJAJ ALLIANZ, OM KOTAK MAHINDRA, AVIVA, ING VYASA, METLIFE & AMP SANMAR have produced that can be quite a big unseen threat for the company in the coming years. So the company should start thinking of what they want from the market & where they want to see themselves after a span of 10 years because if the popularity of these companies continues then one day they will become good competitors of ICICI Prudential & then the consequences can be quite disturbing for the company.

CONCLUSION

1. ICICI PRUDENTIAL has interested and profitable planes for different age group. 2. There are lots of scopes of life insurance in Indian only 2.5 people are secure with life insurance so the insurance sector is its booming stage this boom will more increase in 2 or 3 years. 3. Good profile insurance advisor could do the better job. If ICICI PRUDENTIAL mentions the level of advisor them they may give great sales to the company. 4. ICICI PRUDENTIAL has tuff competition with LIC as well as TATA AIG, BAJAJ SAHARA, HDFC ALLIAZE, ING INSURANCE, BIRLA OM SBI SUNLIFE KOTAK AND LIFE INSURANCE, MAHINDRA, VYSYA,

RELIANCE LIFE INSURANCE, PNB LIFE INSURANCE. 5. ICICI PRUDENTIAL LIFE INSURANCE COMPANY has great goodwill in market in liberalized Indian market there are approximately 13 big companies in Indian market and ICICI PRUDENTIAL is the No.1 private insurance company. I found this fact in my recent survey. 6. If the company starts to concentrate on village segment market. Then company can get great business. 7. I got the good profile people near by bank and share market. When I concentrated on the 20-25 year age group people I found good result. 8. Within 20-25 year age group the sincerity level is high. They are career oriented and want to earn more.

9. In the age group people made interest to purchase the kids plan and pension plan and money back plan. 10.In the age group of 30-35 years the people who earning more then 3 lakh p.a. made interest to purchase ULIP. 11.I found that in insurance sector a person should have great communication and convenience skill. 12.People made interest in the business opportunity of ICICI PRUDENTIAL because there are lots of chances to increase earning and make high place in the company. 13. People took interest in pinnacle programme and also life the professional environment of the company. 14. In my survey I found that low percentage of people is aware with the life insurance. 15.It was great experience to communicate with different people. I learnt through cross-question by peoples.

AWARDS

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

Prudence Customer Centricity Award 2004 & 2005 Prudential Corporation Asia

BIBLIOGRAPHY

Philip Kotler Marketing Management Fact sheets of ICICI standard Life Company Websites

www.google.com www.yahoo.com

www.wikipedia.com
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