You are on page 1of 54

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 2009-
10 and personal line non-life from Rs 4 billion to Rs 51 billion.

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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-1-
INTRODUCTION

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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-2-
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”.

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-3-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-4-
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.

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-5-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-6-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-7-
“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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-8-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-9-
• 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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-10-
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 company-
the 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-cum-
protection 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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-11-
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.
(Rs. lakh)

2004-05 2005-06
Insurer
First year premium including Single premium
LIC* 1734761.74 2065306.36
(6.34) (19.05)
Private Sector 244070.58 556457.34
(152.74) (127.99)
Total 1978832.32 2621763.70
(14.68) (32.49)

Renewal Premium
LIC 4618580.96 5447422.62
(19.47) (17.95)
Private Sector 67962.05 216293.48
(343.12) (218.26)
Total 4686543.01 5663716.10
(20.75) (20.85)

Total Premium
LIC 6353342.70 7512728.98
(15.63) (18.25)
Private Sector 312032.63 772750.82
(178.83) (147.65)
Total 6665375.33 8285479.80
(18.91) (24.31)

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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-12-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-13-
♦ 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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-14-
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 in clu din g 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 -242 companies operating


⇒ 1956 -Nationalization- LIC monopoly player -Government control
⇒ 2001 -Opened up sector

1.6 Contribution to Indian Economy

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-15-
 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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-16-
Channel Access Service Points Use of IT

⇒ Advisors ⇒ Branch Network ⇒ Limited use of IT

⇒ Post Deregulation – Service through Distribution

Multi Channel Access Multiple Service Use of IT


Points
⇒ Advisors ⇒ Call Centers ⇒ Shorter time around
⇒ Brokers & ⇒ Email time
Corporate agents ⇒ Website ⇒ Claims
⇒ Bancassurance ⇒ Branch Network ⇒ Policy Issuance

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.

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-17-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-18-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-19-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-20-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-21-
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.

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-22-
The brand proposition for all the campaigns was reflected in the line: ‘Suraksha: Zindagi
ke har kadam par’. The campaign featured a significant competitive advantage, the sound
financial backing and credentials of ICICI Prudential, and showcased products from
different segments. The advertising idea was encapsulated in the symbol of protection –
the ‘Sindoor’. This campaign contributed extensively to raising brand awareness and
creating a distinctive identity for the company.

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

Brand Values

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

DISTRIBUTION SYSTEM

Tied Agency

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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-23-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-24-
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. .

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-25-
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,

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-26-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-27-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-28-
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 strengths

A powerful joint venture partnership with each carrying a set of strengths


complementing each others

Brand strength Reputation

Insurance
expertise
Infrastructure

Customer base PRUDENTIAL Product


ICICI
Market Innovators Distribution

Local knowledge Operations

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-29-
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.

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-30-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-31-
• 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.

• 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.

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-32-
• 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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-33-
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.

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-34-
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.

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-35-
DATA ANALYSIS AND INTERPRETATION

1. Age of the respondents

PARTICTULARS NO.OF.RESPONDENT PERCENTAGE


Less than 25 11 11%
25 - 35 40 40%
35 - 45 20 20%
Above 45 29 29%
TOTAL 100 100

Age of the Respondents

NO.OF.RESPONDENT PERCENTAGE

100

80

60

40

20

0
Less 25 - 35 35 - 45 Above TOTAL
than 25 45

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 11% of the respondents are less than 25 years old.


b) 40% of the respondents are between 25 and 35 years of age.
c) 20% of the respondents are between 35 and 45 years of age.
d) 29% of the respondents are more than 45 years of age.
Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-36-
2. Qualification of the respondents.

PARTICUALR NO.OF.RESPONDENT PERCENTAGE


Graduate 52 52%
Post Graduate 29 29%
Diploma 8 8%
Other discipline 11 11%
TOTAL 100 100%

Qualification of the Respondents


Graduate Post Graduate Diploma
Other discipline TOTAL

100
80
60
40
20
0
PERCENTAGE
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 52% of the respondents were graduate


b) 29% of the respondents were post graduate
c) 8% of the respondents were diploma
d) 10% of the respondents were other discipline

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-37-
3) Occupation of the respondents

PARTICULARS NO.OF.RESPONDENT PERCENTAGE


Business man 34 34%
Professionals 18 18%
Job holders 37 37%
Others 11 11%
TOTAL 100 100%

Occupation of the Respondents

Business man Professionals Job holders


Others TOTAL

100

80

60

40

20

0
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 34% of the respondents are businessmen.


b) 18% of the respondents are professionals.
c) 37% of the respondents are job holders.
d) 11% of the respondents are background.

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-38-
4) Average annual income of respondents.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE


Up to 1 lakh 33 33%
1 lakh - 3 lakh 43 43%
3 lakh - 5 lakh 20 20%
5 lakh & above 4 4%
TOTAL 100 100%

Average annual income of


respondents.

100

80
Up to 1 lakh
1 lakh - 3 lakh 60
3 lakh - 5 lakh
40
5 lakh & above
TOTAL 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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-39-
PARTICULARS NO.OF.RESPONDENT PERCENTAGE
Below 5 members 50 50%
5 - 10 members 32 32%
Above 10 members 28 28%
TOTAL 100 100%

FAMILY SIZE

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.

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-40-
PARTICULARS NO.OF.RESPONDENT PERCENTAGE
Risk Coverage 10 10%
Tax Savings 3 3%
Good return 4 4%
Security 3 3%
All the above 80 80%
TOTAL 100

Life Insurance is

Risk Coverage Tax Savings Good return


Security All the above TOTAL

100

80

60

40

20

0
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 10% of the respondents say risk coverage.


b) 3% of the respondents say tax savings.
c) 4% of the respondents say good returns.
d) 3% of the respondents say financial security.
e) 80% of the respondents say all of the above.

7) Awareness of ICICI Prudential life insurance

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-41-
Yes 17 17%
No 83 83%
TOTAL 100 100%

Awareness of ICICI Pru

Yes No TOTAL

100

80

60

40

20

0
NO.OF.RESPONDENT

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 NO.OF.RESPONDENT PERCENTAGE


Yes 2 2%
No 98 98%

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-42-
TOTAL 100 100%

INSURANCE AWARENESS

100
90
80
70
60
50 NO.OF.RESPONDENT
40 PERCENTAGE
30
20
10
0
Yes No TOTAL

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 NO.OF.RESPONDENT PERCENTAGE


Invest gain plan 41 41%
Unit gain plan 36 36%
Child gain plan 8 8%

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-43-
Whole life plan 15 15%
Pension plan No No
TOTAL 100 100%

INSURANCE PLANS OF ICICI PRUDENTIAL

15%

8% 41%
Invest gain plan
Unit gain plan
Child gain plan
Whole life plan
36% Pension plan

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 41% of the respondents are under invest gain plan


b) 36% of the respondents are under unit gain plan
c) 8% of the respondents are child gain plan
d) 15% of the respondents are whole life plan
e) No body under pension plan

10) % of respondents benefits of choosing the particular products

PARTICULARS NO.OF.RESPONDENT PERCENTAGE


Risk coverage 60 60%
Additional benefit 20 20%
Maturity date 12 12%

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-44-
Sum Assured 8 8%
TOTAL 100 100%

Benefits of Particular Products

100
90
80
70 Risk coverage
60 Additional benefit
50
Maturity date
40
Sum Assured
30
20 TOTAL
10
0
1 2

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

11) % of disadvantages in insurance plan

PARTICUALRS NO.OF.RESPONDENT PERCENTAGE


Liquidity 35 35%
Lapsation 20 20%
Unable to decide premium 19 19%
High risk coverage 14 14%
Fixed Term 12 12%
TOTAL 100 100%

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-45-
Disadvantages in Insurance Plans

100
80
60
40
20
0
NO.OF.RESPONDENT

Liquidity Lapsation
Unable to decide premium High risk coverage
Fixed Term TOTAL

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

12) % of respondents who want to invest in these different avenues.

PARTICUALRS NO.OF.RESPONDENT PERCENTAGE


Recurring Deposit 40 40%
Equity Fund 25 25%
Balanced Fund 10 10%
Mutual Fund 11 11%
Debt Fund 5 5%
Cash Fund 9 9%
TOTAL 100 100%

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-46-
INVESTMENT AVENUES

9%
5%
11% 40% R.D
Equity
Balanced fund
Mutual Fund
10% Debt Fund
Cash Fund
25%

ANALYSIS:

From the survey it was found amongst 100 respondents

a) 40% of respondents say that they want to invest in R.D


b) 25% of respondents say that they want to invest in equity
c) 10% of respondents say that they want to invest in balanced fund
d) 11% of respondents say that they want to invest in mutual fund
e) 5% of respondents say that they want to invest in debt market
f) 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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-47-
• 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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-48-
• 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.

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-49-
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 _________________________________

2. Address _________________________________
_________________________________
_________________________________
3. Age

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-50-
a. Less than 25 c. 35-45
b. 25 – 35 d. 45 and above

4. Qualification

a. Graduate c. Diploma
b. Postgraduate d. Other discipline

5. Occupation

a. Business c. Job holder


b. Professional d. Other

6. What is your average annual income?

a. Up to 1 lakh
b. 1 lakh to 3 lakhs
c. 3 lakhs to 5 lakhs
d. 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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-51-
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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-52-
BIBLIOGRAPHY

• 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

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-53-
• www.iciciprulife.com
• www.google.co.in/indian insurance industry
• www.irdaindia.org

Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.

-54-