PROJECT TRAINING REPORT ON BRAND AWARENESS & UNDERSTANDING THE MARKET POTENTIAL OFFER PRODUCT AT

JAIPUR
Submitted in the partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration (B.B.A.)

SUBMITTED BY: BHARTI SHARMA BBA PART-3rd

SUBMITTED TO:

University maharanis college

JAIPUR (RAJ) (2007-2010)

PREFACE

In the insurance Industry, there are two channel of distribution Alternate Distribution and Tied Agency. Advisor Recruitment is the part of Tide Agency. My project is about BRAND AWARENESS and channel distribution of ICICI Prudential Life Insurance. It means company is recruiting advisors for expanding its business. Company adopts chain marketing as a methodology for expansion. In this project, I have to make some sort of cold calling, seminars for the target market, get the appointment with them, convince them and close the sale positively. The queries, which are asked by the client, should be solved by the discussion with the company guide. ICICI Prudential Life Insurance is concentrating on the agency recruitment. It has around 2 lac force of advisors and it is planning to extend it 5 lac in the next coming years. For recruiting advisors, ICICI Prudential holds many activities like they do direct marketing for recruiting advisors, they also recruit the management trainees for recruiting advisors, they also hold seminars and also includes stall activities.

ACKNOWLEDGEMENT

Achieving a milestone for any person is extremely difficult. However, there are motivations which come across the curvaceous path like twinkling stars in the sky and make our task much easier. It becomes my humble and foremost duty to acknowledge all of them. I am deeply indebted to and express my sincere appreciation and gratitude to Mr. MUKESH of ICICI Prudential Life Insurance Co. Ltd. for providing their valuable guidance and encouragement throughout the summer training for keeping my morale up and making it possible to complete and submit this project of mine in time. In addition to allowing me to study the insurance sector and recruit the advisors. They provided me many in depth details enlightened me in the preparation of the study report. It would be unfair on my part if I do not thank my heart fully thanks for their unstinting help without which this work could never have been accomplished. They made me realize the importance of a team, team work and also the leadership skills. I am grateful to all of them for standing with me and supporting me in this project. Words cannot adequately express my sense of gratitude and indebtedness to RCERT for giving me an opportunity.

Bharti sharma BBA 3rd yr.

EXECUTIVE SUMMARY
The only operation that drives the basic survival of any industry or organization is sales. There is not a single business or job that exists on this earth which does not have to sell a product or service. The efficiency of this process marks the success of the firm, which optimally utilizes this function in its business processes. I have done my summer training in the same sector with the No.1 Private Life Insurance Company ICICI Life Prudent Insurance Company. It was listed in Insurance Regulatory Development Authority (IRDA) in December 2000. ICICI Life Prudent works as a career agency which gives part times and full time job to people. It offers a wide spectrum of services & product. As my work was focused in that area only to meet with the people and understanding the needs of the customer, understanding the concepts of insurance, how it sells and how strongly we present it in front of the customer as per the need analysis of the customer. I also tried to explore the new ideas to generate sales in the new horizon of part time and full time job opportunity. My branch office of ICICI Life Prudent Insurance Company, where I did my summer internship is situated in JAIPUR (RAJASTHAN) .

TABLE OF CONTENTS

CHAPTER 1. 2. 3. 4. 4.1. 4 .2. 4. 3. 4. 4. 4. 5. 4. 6. 4 .7. 4. 8. 4. 9. 4. 10. 4. 11. 4. 12. 4. 13. 4. 14. 4. 15. 4. 16.

CONTENTS INDIAN INSURANCE INDUSTRY COMPANY PROFILE ABOUT ICICI PRUDENTIAL LIFE INSURANCE RESEARCH METHODOLOGY

PAGES 6-11 12-31 32-44 45-80 46 47 48 49 50 51-52 53 54-55 56 57-68 69-72 73 74 75 76-77 78

Process of marketing research Duration of the project Objective of the study Research design Sampling method Awareness & marketing Data collection Limitations of the study Review of literature
ANALYSIS & INTERPRETATION SWOT ANALYSIS CONCLUSION RECOMMENDATIONS & SUGGESTIONS FUTURE POSSIBLITIES

Questionnaire
BIBLIOGRAPHY

INDIAN INSURANCE INDUSTRY

1. INSURANCE IN INDIA

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

1.1. A brief history of the Insurance sector:

The business of life insurance in India in its existing from started in India in the year1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

1.2. DEFINITION OF INSURANCE

Insurance is a contractual type financial intermediary that offers the public protection against the financial costs associated with the loss of li9fe, health, or property in exchange for premiums. An agreement that guarantees the payment of a stated amount of monetary benefits upon the death of the insured. Risk insurance intended as protection against the financial consequences of the death of the insured person, which takes the form of payment of previously agreed lump sum or pension to a beneficiary, if the insured person dies during the term of insurance. In the case of pure life insurance, without any endowment insurance component, no payments are due if the insured person survives the term of insurance. Insurance is that which provides protection against the economics loss caused by the death of the person insured.

1.3. Need for Life Insurance?

Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets.

1.4. Asset Protection

From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interests of ones family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition.

1.5. Goal based savings

offered to the customer reflect the needs of the Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Life insurance is the only investment option that offers specific products tailor-made for different life stages. It thus ensures that the benefits customer at that particular life stage, and hence ensures that the financial goals of that life stage are met.

1.6. Human Life Value

Beyond all doubt, your life is invaluable. Yet, there is a certain worth that can be attributed to the financial support you offer your parents, spouse or children. This worth is referred to as Human Life Value (HLV). In the future, if your family does not have the protective blanket of your presence, they will no longer be able to enjoy the benefits of the income you earned. Put simply, Human Life Value is the present value of your future earnings.

As a thumb rule, if you are 30 years of age, you should insure yourself for an amount approximately 8 times your annual income. At 35, your investment should be close to 6 times your income. Of course, the exact amount of your investment should be determined by the number of people who depend on you, your existing investments and your life stage. For example, if you are 30 years of age and have two children and parents to provide for, the amount you invest should be reflective of your requirements

1.7. Life Stage Profiler

All through your life, several significant events the birth of your child, moving to a larger home, his or her education and wedding, buying a new car, retiring from work will occur at various stages and demand your financial commitment. If you plan in advance for these events, you will quite naturally be prepared when they occur. Life insurance is an effective tool that assists you to plan for your future such that you are financially equipped to meet all your goals.

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1.8. Which important goals should you plan for in advance?

1.8.1 Your family's protection - so that your loved ones are secure should an
unfortunate event happen to you. Life insurance can guarantee that your family receives a lump sum that safely tides them over any financial crises that might occur in your absence.

1.8.2

Child's education: As parent, your primary responsibility is to guarantee

your children's future. Our Education Insurance plans ensure your child receives money at key stages of his or her education even in your absence.

1.8.3 Savings: Savings plans allow you to steadily save towards a pre-decided
goal in a secure manner. These plans provide you with a host of benefits. You can choose the premium, the underlying fund in which you want to invest your money, the ratio between protection and investment as per your requirements.

1.8.4Retirement: Retirement plans help you secure guaranteed income for your
retired life. During the Accumulation phase, you systematically save while you are working. When you retire, the Payout stage of the plan begins. You then purchase an annuity, which will serve as a steady stream of income, for the rest of your life.

1.8.5 Health: An integral part for financial planning is protecting oneself against any
medical emergencies as well. Hence, a very prudent decision would be to choose a combination of plans that look after your finances and offer you a protective health cover to ensure your financial planning is in track despite any major illnesses.

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1.9. What is Life Insurance?

Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises. In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme. To know more, read the Key Benefits of Life Insurance Key Benefits of Life Insurance Life insurance, especially tailored to meet financial needs All the human beings on the earth know that they will die in future but they dont want to die. They want to fulfill all the dreams, which they had thought, but there are times when all these dreams can`t come true. Death is inevitable and yet we live our lives obvious to reality that may strike-when we have no idea. And when it happens, all the dreams come crashing down. In the words of D S Hansel 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

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2. COMPANY PROFILE

2.1. HISTORICAL BACKGROUND OF ICICI Prudential Life Insurance Pvt. Ltd.

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

2.2. ICICI (Industrial Credit and Investment Corporation of India) :

The work 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.

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ICICI Has thus far financed all the major sectors of the economy, covering 6,848 companies and 16,851 projects. As of March 31, 2000, ICICI had disbursed a total of s. 111,070 crores, since inception.

Year 1
Number of Policies sold Average premium (Rs.) Total premium earned (Rs.) Average commission 50 16,000 8,00,000

Year 2
75 16,000 12,00,000 2,70,000

Year 3
100 16,000 16,00,000 3,60,000

(including 1,80,000

bonus estimated @ 22.5%) Earning from new business (Rs) Commission on renewal premium @ 6% For year 2, 3 & 3% after that Earning from renewal business (Rs) Total earning (Rs) 1,80,000 48,000 3,18,000 48,000 1,20,000 4,80,000 1,80,000 2,70,000 48,000 3,60,000 72,000

* Depending upon the product mix commission can go up to 35% in the first year, 7.5% in the 2nd year & 3rd year & 5% for the 4th year onwards.

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2.3. ECONOMIC
Insurance as we have already discussed is very essential for every person on this fact of earth. Being an insurance company, the responsibility of the company also increases by many multiples as they have to keep an eye on ach & 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.

2.4. TECHNOLOGICAL
ICICI Prudential Life Insurance Company Limited uses latest technology for their operations which gives them an edge over the competition.

2.5. PROMOTERS
The promoters of ICICI Prudential Life Insurance Pvt. Ltd. ICICI Prudential Life Insurance Company are ICICI Bank and Prudential Plc. ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management Company which has today emerged as one of the leading mutual funds in India. The two companies bring together two of the strongest financial service brands in Asia, known for their professionalism, excellent quality of service and long term commitment to their customer. 14

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ICICI bank has 74% stake in the company, and Prudential Plc has 26%.

2.6. BANK ASSURANCE

ICICI Bank is India's second larges bank with total sales of about Rs. 1, 32,780 crores at September 30, 2004 and Profit after tax of Rs. 873 crores in half year ended September 30, 2004 (Rs. 1,637 crores in fiscal 2004). ICICI Bank has a network of about 540 branches and extension counters and over 1800 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management.

2.7. VISION
The company's 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.

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Leveraging technology to device customers quickly, efficiently and conveniently. Developing and implementing superior risk management and investment. Providing an enabling environment to foster growth and learning for their employees. And above all, building transparency in all their dealings. The access of the company is due to its unflinching commitment to 5 core values o Integrity, Customer First, Boundary Less, Ownership, Passion

Each of the core values describe what the company stands for, the qualities of their people and the way they work. ICICI Bank set up its international boundary in fiscal 2002 to cater to the cross-bascules needs of client and leverage on products internationally. ICICI Bank currently has subsidiaries n United Kingdom and Canada, Branches in Singapore and Behrin and reprehensive offices in United States, China, United Arab Emirates and Bangladesh.

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ICICI Banks equity shares are listed in India on the stock exchange, Mumbai and the National Stock Exchange of India Limited and its American Depository Receipts (ADRs) are listed on the New York stock Exchange (NYSE).

2.8. Shared vision and purpose

The company focuses on having the organizations striving towards a common goal, which is easily don't through the effective communication and work channel. Large scale interactive process at the organization and group level helps in getting the employee know of what is expected of them and how has been achieved. This factor encompasses through all the critical intervention by the team members or the mentor of the team.

2.9. The working environment

The company is in a continuous search for the best of talents in the market, which align with the vision and mission of the organization. The company states out its working culture in certain important factors for the interested incumbents. Urge from the incumbent to be a part of a world class sales steam. The freedom of working from his/her own office/residence. The flexibility of working hours, full time or part time. Opportunity to earn commission, bonus and incentives.

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Unlimited earnings directly proportional to your efforts. Most important the change of flexible career.

The company is aware of the current trends in the market and the essential factors of increasing the personal and human feeling to business. Thus, the company has got some underlying facts and reasons for the working in a specific manner. The company gives the space and time required to grow, achieve and to seek new domains and opportunities. The changing dynamics of business makes it evident that the new opportunities will come from the gaps and needs in the market. Therefore, the need is to be alert enough to notice these new happenings and tap them as and when they arise. The people in the company are its most important assets but the real focus should be on deriving on the promises undertaken. The company also stresses out that the incumbents should have that urge and self-belief so that they are confident enough of driving the innovations and change drives that they think are essential. The company believes in being innovative and tenacious enough to open a new domains and horizons of business and hence regularly in the process of developing new products and offering state of art services to all its clients, brokers and agents in the business. Further, with the growing symbiosis of technology in the business the company also focuses on their aspect in the sense that it takes e-commerce and technology in a very high priority with increasing resource being targeted at the new business economy and the internet.

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2.10. PRUDENTIAL PLC

Established in London in 1848, Prudential PLC, 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, policyholders and unit hold worldwide. A of December 2003, the company had over US $ 300 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 UK's largest life insurance company with a vast network of 23 life and mutual funds operations in twelve countriesChina, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam. Solid reputation built over 150 years. Insurance and investment funds under management exceed Rs. 11, 00,000 crores. Already established as one of the biggest private sector mutual fund companies in India. (Prudential ICICI AMC). A truly global brand.

Prudential is the largest life insurance company in the United Kingdom (Source: S & P's UM Life Financial Digest, 1998). Asia has always been an important region for Prudential and it has had a presence in Asia for over 75 years. In fact Prudential's first overseas operation was in India, way back in 1923 to establish Life and General Branch agencies. 19

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2.11. SALES CHANNEL

ICICI Prudential Life Insurance Com. Ltd. in India's No. 1 Pvt. Insurance Company Ltd. All the insurance company provides its policies through sales force or advisor or agents. Main work of agent's is to sale the policies. Policies are the concept product. Role of an advisor in this industry is to presents and sales the concepts in the market. An advisor wants healthy management support and professional environment. So in this project a searching the suitable profile for insurance sales.

2.12. The principle of channel development

The company in its vision out the urge to become the dominant players in the players in the industry. The company believes that a high level of self-motivation and a coherent teamwork for the organization can only achieve this on the whole. The company stresses great emphasis on its core values, which are: Integrity Customer first Boundary less Ownership Passion

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These are the foundation on which the organization works and the base for the overall business environment of the company, based on the above mentioned 'pillars' of the company the management has devised the basic principles for the program as a whole which are as following.

2.13. Recruit the best

Experts in knowing what exactly their customers wants is well versed in spotting the talents from the pools and recruiting only those who have the intellect, energy, drive and the passion to initiate new beginnings and even a lot of changes if the feel so. The incumbents are treated as winners and the 'custom hiring' principle necessitates the factor of having the right person at the right place with the right work. And definitely no compromises on expertise and competencies.

2.14. Personal Responsibility

The company believes that it is the prerogative of the company to create the team that it wants. Therefore it aims at providing the learning and development conduits to employees to enhance the domain of knowledge the important leadership and team skills.

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2.15. Empowered Teams

Each employee is a stakeholder in the organization and it is the one of the important specialty here that the responsibility comes with a degree of autonomy and accountability. The area of operation and growth is to be decided by the individuals himself. But the communication is across the channels and ranks where by the targets are sent and the corrective measures and rewards also come to them. The most important factor is the employee participation and empowerment.

2.16. Rewards and Recognition

The rewards in the company are directly proportional to the work and targets achieved and gone beyond. You work hard you earn more. The contributions done are recognized in the most objective and transparent manner and on the demonstrated competence level. But yeast there is certainly an extra for the people who go beyond then what is expected from them.

2.17. Advisors 2.17.1. The importance of Advisors

ICICI Prudential Life Insurance Co. Ltd. Aspires to provide state of the art of customer's service and opportunities and avenues for enterprising people to grow and prosper. The company wish to grow exponentially that is backed by the latest technology. Hence offering its customer. Complete and diversified product portfolio.

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Faster and more accurate service. Multi-channel distribution systems Highly trained professional sales people offering quality pre and 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 brining in new business for the company but also plays an important part in offering world-class pre and post sales service to the clients to the clients with the supports of the organization. But the company in its principles clearly states out that an advisor to means "much more than a salesman or salesmen, we at ICICI Prudential recognize our 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 the financial freedom. If looked from the other side of the business where the company is operating the competitive Indian market 7 more so in the business of life insurance where the customers looks for self-belief & faith them the advisor certainly holds the vital link in the overall business proposition. They represent the company's face & words on which the customers can trust because the customer knows that face. The advisor helps to create a web from the business to grow & driving the customer to come to the company with complete trust and faith.

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2.17.2 THE PROFILE AN ADVISOR 2.17.2.1 Qualifications

1. 2. 3. 4. 5. 6. 7. Age should be ideally between 25-60 years. Minimum education qualification is 10+2. Good & convincing communication skills. Capacity to build an impressive network. Engaged in gainful business or corporation. Willing to undergo extensive training 7 development programs. Pleasing personality.

2.17.2.2 Skills and 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. Investment management skills Core operation skills.

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Core underwriting skills. Relationship management skills. Project management skills.

2.17.2.3 Leadership & Team Skills

A passion for achieving results High energy levels & infectious enthusiasm Open ideas Strong team players High caliber & ability And above all, unyielding integrity

2.17.2.4 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 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

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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 and being ones won 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 under two main headings: 1. Providing continuous financial advice 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

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2.

The advisor is also required to regularly follow the internal sales and the internal reporting system so as to get the feed back & further leads for the prospective areas of business & improvement.

2.17.2.5 Benefits & Support Provided

The benefits have already been mentioned very often in the previous section but it's necessary to look into them as a comprehensive criterion. The main benefits & supports than an advisor would be availing of are the distinct ICICI Prudential life advantages:

2.17.2.6 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.

2.17.2.7 Successful Team

Being at ICICI gives the opportunity to be a part of India's best team of life insurance advisors. The company is numerous union among the private players in the industry & has won numerous recognition & awards that give it the international edge.

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2.17.2.8 Attractive remuneration

ICICI often 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 one's earnings & the added incentives just help as advisor to get more than what he / she expects.

2.17.2.9 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 entrepreneurs in the most unexpected manner.

2.17.2.10. World Class Team

The company leverages on the international linkages that it has got to provide the best timing available in the industry at the present. The company aims to impart the necessary skills & competencies to all even if there is 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.

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2.17.2.11. Career Agency System

ICICI's commitment to Career Agency System imparts supports 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 factor is the opportunity & the option of a management career option for the successful performers.

2.18. 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.

2.19. Extensive Product Portfolio

The company has got more than four hundred policies for the customers. This consists of the unique individuals, groups & rider policies. The extensive, diversified and comprehensive range provides the competitive edge that no other advisor would be having in the market.

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2.20. Sales & Marketing Support

The company has got unique sales & marketing tools to help & support the advisors at every stage of the career. The sales, promotions & marketing collaterals that the company posses help to achieve just that.

2.21. 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.

2.22. Support provided by the Unit Manager

Field visits for the incumbents Training on products & selling skills Regular business reviews to monitor the progress The UM act both as a coach & mentor The UM recognizes the high performers Helps in becoming financially independent

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2.23. Put 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

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3. ICICI Prudential Life Insurance

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 company to begin operation in December 2000 after receiving approval from Insurance Regulatory Authority of India (IRDA). ICICI Prudentials equity base stands at Rs. 2100 corer with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the past six years, ICICI Prudential has retained its position as the NO 1 Private life insurer in the country, with a wide range of flexible product that meant the needs of the Indian customer at every step in life. ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch rating. The AAA rating is the highest credit rating and is a clear assurance of ICICI Prudentials ability to meet its obligation to customers at the time of maturity or claims.

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 it grows its distribution, product range and customer base, it continues to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India.

3.1. ABOUT THE PROMOTERS

3.1.1. ICICI Bank

ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with over 50 years presence in financial services and with assets of over Rs 3446.58 bn (USD 79 billion) as on March 31st 2007. The Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, private 32

33 equity and asset management. ICICI Bank is a leading player in the retail banking market and services its large customer base through a network of over 950 branches and extension counters, 3300 ATMs, call centers and internet banking (www.icicibank.com) to ensure that customers have access to its services at all times.

3.2. VISION AND MISSION 3.2.1 Vision

To be the dominant life, pension and life player built on world class people and services. This they hope to achieve through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise. The success of the organization will be founded on its strong focus on values and clarity of purpose. These include:

Understanding the needs of customers and offering them superior products and service

Building long lasting relationships with their partners Providing an enabling environment to foster growth and learning for their

employees They believe that they can play a significant role in redefining and reshaping the sector. Given the quality of their parentage and the commitment of their team, they feel that there will be no limits to their growth. Sponsors ICICI Ltd was established in 1955 by 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. Since inception, ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI has financed all major sectors of the economy, covering 6,848 companies and 16,851 projects. In the fiscal year 2000-2001, ICICI had disbursed a total of Rs 319.65 billion.

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3.2.2 VALUES
Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success. Customer First Boundary less Integrity Passion Ownership Own the customer and deliver the value. Never say its not my Job. Be honest and fair in what you say and do. Boundless energy and enthusiasm. If it is to be, it is up to me.

3.3. Board of Directors:

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Mr. K.V. Kamath, Chairman Mr. Barry Stowe Mrs. Kalpana Morparia Mrs. Chanda Kochhar Mr. HT Phong Mr. M.P. Modi Mr. R Narayanan Mr. Keki Dadiseth Ms. Shikha Sharma, Managing Director Mr. N. S. Kannan, Executive Director Mr. Bhargav Dasgupta, Executive Director

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The ICICI Prudential Life Insurance Company Limited Management team comprises reputed people from the finance industry both from India and abroad. Ms. Shikha Sharma, Managing Director and CEO Mr. N. S. Kannan, Executive Director Mr. Bhargav Dasgupta, Executive Director Ms. Anita Pai, EVP Customer Service & Technology Mr. Azim Mithani, Chief Actuary Mr. Puneet Nanda, Chief Investments Officer Mr. Binayak Dutta, Chief Sales and distribution

3.4. Competitors of ICICI Prudent Life Insurance

1) Life Insurance Corporation Of India 2) Bajaj Allianz Life Insurance Company Limited 3) Birla Sun Life Insurance Company Limited 4) HDFC Standard Life Insurance Company Limited 5) ING Vysya Life Insurance Company Private Limited 6) Max New York Life Insurance Company Limited233a 7) Met Life India Insurance Company Private Limited 8) Kotak Mahindra Old Mutual Life Insurance Limited 9) SBI Life Insurance Company Limited 10)Tata AIG Life Insurance Company Limited 11)Aviva Life Insurance Company India Private Limited

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36 12)Reliance Life Insurance Company India Private Limited 13)Sahara India Life Insurance Company Limited 14)Shriram Life Insurance Company Limited 15) Bharti AXA Life Insurance Company Limited

3.5. Distribution and Channel Development

ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. As of January 31, 2007 the company has over 580 offices across the country and over 234000 advisors. The company has over 22 bancassurnace partners, having tie-ups with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank and 9 Bank of India sponsored Regional Rural Banks (RRBs). It has also tied up with NGOs MFIs and corporate for the distribution of rural policies

3.6. Core Competency

The ICICI Prudential edge comes from our commitment to our customers, in all that we do be it product development, distribution, the sales process or servicing. Here's a peek into what makes us leaders. 1) Our products have been developed after a clear and thorough understanding of customers' needs. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health

36

37 insurance that arms you with the funds you might need to recover from a dreaded disease. 2) Having the right products is the first step, but it's equally important to 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 25,000 plus strong team is given the opportunity to learn and grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life.

3.7. Insurance Plans - At a glance

Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A brief detail of both segments ULIPs have gained high acceptance due to attractive features they offer. These include:

3.7.1. Flexibility
Flexibility to choose Sum Assured. Flexibility to choose premium amount. Option to change level of Premium /Sum Assured even after the plan has started. Flexibility to change asset allocation by switching between funds

3.7.2. Transparency

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38 Charges in the plan & net amount invested are known to the customer Convenience of tracking ones investment performance on a daily basis.

3.7.3. Liquidity
Option to withdraw money after few years (comfort required in case of exigency) Low minimum tenure. Partial / Systematic withdrawal allowed

3.7.4. Fund Options

A choice of funds (ranging from equity, debt, cash or a combination) Option to choose your fund mix based on desired asset allocation

3.8. Traditional Plans

These are the oldest types of plans available. These plans cater to customers with a low risk appetite. Some of the common features of traditional plans are:

3.8.1. Steady Investment

Major chunk of investible funds are in debt instruments Steady and almost assured returns over the long term

3.8.2. Features
Death benefit is Sum Assured + guaranteed & vested bonus Helps in asset creation as they are for a long tenure

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39 Premium to Sum Assured ratios are fixed for each plan and age.

3.9. Products and Services

3.9.1. Products

Insurance solution for individual ICICI Prudential Life Insurance offers a rage of innovative customer-centric products that meet the needs of customer at every life stages. Its product s can be enhanced with up to 5 riders, to create a customized solution for each policyholder.

3.9.2. Saving Solutions

3.9.2.1.

Secure Plus: is a transparent and feature packed savings plan that offers

3 levels of protection.

3.9.2.2. Cash Plus : is a transparent , feature- packed savings plan that

level of protection along with adequate returns.

offers 3

3.9.2.3.

Saves Protect: is a traditional endowment saving plan that offers life

protection along with adequate returns.

3.9.2.4.
asset.

Cash Bank: is an anticipated endowment policy ideal for meeting milestone

expenses like a childs marriage, expenses for a Childs higher education of purchase of an

3.9.2.5.

Life Time & Life TimeII: offer customers his flexibility and control to

customize the policy to meet the changing needs at different life stages. Each offer 4 fund 4 fund option? Preserver, Preserver Protector, Balancer and maxmiser. 39

40

3.9.2.6.

Golden Years: is a limited premium paying retirement solution that offer tax

benefits up to Rs 100000 u/s 80C with Flexibility in both the accumulation and payout stages.

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

3.9.2.7.

Health Assure: Is a regular premium plan which provides long term cover

against 6 critical illnesses by providing by policyholder with financial assistance, irrespective of the actual medical expensed.

3.9.2.8. Health assure Plan : is regular premium plan which provides long term
cover against 6 illnesses by providing financial assistance , irrespective of actual medical expenses ,as well as an equivalent life insurance cover.

3.10. Group Insurance Solution

ICICI Prudential also offers Group insurance solutions for companies seeking to enhance benefits to their employees.

3.10.1.

ICICI Pru Group Gratuity Plan: ICICI Prus group gravity plan helps

employers fund their statutory gravity obligation in a scientific manner. The plan can also be customized to structure schemas that can provide benefits beyond the statutory obligations.

3.10.2.

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.

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3.10.3.

Premier Life:

is a limited premium paying plan that offers customers life

insurance cover till the age of 75.

3.10.4. Invest Shield: life is a marked linked plan that provides capital grantee
on the invested premium and declared bonus interest along with flexible liquidity options.

3.10.5.

Invest Shield Gold: is a marked linked plan that provides capital grantee on

the invested premium and declared bonus interest along with limited premium payment terms.

3.11. Protection Solutions

3.11.1. Life Guard: is a protection plan, which offers life cover at very low cost. It
is available in three options? Level term assurance, level term assurance with return of premium and single premium.

3.11.2.

Home Assure: is a mortgage reducing term assurance plan designed specially to

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

3.12. Child Plans

3.12.1.

Smart Kid education Plans: provides 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 childs life. Smart kid plans are also available in unit-link form? Both single premium and regular premium.

3.12.2. Smart Kid Unit Linked Regular Premium

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3.12.3. Smart Kid Unit Linked Single Premium

3.13. Retirement Solutions

3.13.1.
thirties.

Forever Life: is a retirement product targeted at individuals in their

3.13.2.

Secure Plus Pension: is a flexible pension plan that allows one to select

between three levels of cover.

3.14. Market-Linked Products Life Time Super Pension: is a regular premium market-linked

3.14.1.
pension plan.

3.14.2.

Life Time super: is a regular premium market linked plan.

3.14.3. Life time Plus

3.14.4. Smart Kid New Unit Linked Regular Premium 3.14.5. Smart Kid New Unit Linked Single Premium 3.14.6. Life Stage Regular Premium

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3.14.7.

Invest Shield Pension :is a regular premium pension plan with a

capital guarantee on the ingestible premium and declared bonuses

3.14.8. ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible
deigned 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.

3.14.9. ICICI Pru Group Term Plan: ICICI Prus flexible group term solution
helps to 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 to paid to the beneficiary nominated by the member on the his/her death.

3.15. Flexible Rider Options

ICICI Pru Life offer flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer.

3.15.1.

Accident & disability benefit: If death occurs as the result of an

accident during the term of 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.

3.15.2.

Accident Benefit: This rider option pays the sum assured under the

rider on the death due to accident.

3.15.3. Critical Illness Benefit:

the event of 9 specified critical illness prior of death.

protects the insured against financial loss in

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3.15.4.

Income Benefit: this rider pays a 10% of the sum assured to the nominees every

year, till maturity, in the event of the death of the life assured. It is available on the Smart Kid, Secure Plus and Cash Plus.

3.15.5.
Cash Plus.

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 Secure Plus and

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4. RESEARCH METHODOLOGY
"Marketing Research" is a key to evolution of successful marketing strategy and programmes". It is an important tool to study buyer behavior, changes in consumer life style and consumption patterns, brand loyalty and forecast market changes. Research is also used to study competition and analysis the competitor product positioning.

4.1. PROCESS OF MRKETING RESEARCH

PROBLEM FORMULATION

DETERMINATION OF RESEARCH OBJECTIVE PLANNING AND CONDUCT FORMAL INVESTIGATION

COLLECTION OF PRIMARY DATA

DATA PROCESSING ANALYSIS AND INTERPRETATION

REPORT WRITING

FOLLOW UP

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4.1.1. PROBLEM DEFINATION

This is the starting point in the marketing research exercise. There are several marketing issues that may require examination, and invariably, energy decisions make perceive his information need as being important. how can be estimate market penetration Where is the potential advisor.

Research refers to a search of knowledge. It is a scientific and systematic search for pertinent information on a specific topic. The main aim of the project was to find out the market share of ICICI and its customers with respect to Jaipur (Rajasthan). The opinions of the customers were taken by visiting various places and information was collected from the customers.

4.1.2. RESEARCH OBJECTIVE :

Objectives of research are: promoting the concept of insurance from ICICI Prudential as a business opportunity. is to determine the various improvements that can be done in ICICI Prudential's products and satisfaction level of the advisors so as to improve the market share of the company.

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4.2. DURATION OF THE PROJECT

It Is an opportunity to satiate your curiosity. There you are expected to actively participate and take ownership for the internship, and to experience the professional environment, thus making the internship meaningful to the company one works with and to oneself in ones career prospects. In 45 days of Summer Training Program I understand companys products, learn how to work under organizational pressure, also increase my financial and marketing skills and how to manage time.

My Role
My role in ICICI Prudential Life Insurance is work as a project trainee for the 7 weeks. In that I have to do: 1) Meet with the people to make them aware of insurance and tax saving. 2) I have done 5 policies and earn 8000 Rs.

Who are targeted clients? Young professionals Businessmen Students 47

48 Retired persons Housewives Brokers

4.3.

OBJECTIVE OF THE STUDY

The market research was done with primary objective of promoting the concept of insurance from ICICI Prudential as a business opportunity and is to determine the various improvements that can be done in ICICI Prudential's products and satisfaction level of the advisors so as to improve the market share of the company. Major objectives of my survey were:

4.3.1. To know the consumer perception about the ICICI Prudential Life Insurance Company and know the positive and negative aspects of organization. 4.3.2. To know what is own image of organization in the market. 4.3.3. To give suitable suggestions. 4.3.4. To know awareness of consumer about ICICI Prudential Life Insurance Company. 4.3.5. To find satisfaction o consumer with ICICI Prudential Life Insurance Company. The insurance sector in India has experienced a 360-degree journey over a period of more than a hundred years. Its transition from an open competitive sector to Nationalization and then back to liberalized market characterizes then phenomenon. The insurance sector was brought under the government wrap with in then years of independence. Since then, till the re-opening of the sector in the 1990's, the stated-owned companies functioned under the deluge of bureaucracy

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and inefficiency but still had millions of policy holders, as there were no alternatives. During this period, any suggestion regarding the opening up of the sector was met with harsh criticism and agitation from insurance employees unions. The Congress government (1991-1996) that introduced reforms in various sector of the economy could not bring about a change in the insurance sector and it was left to the BJP led coalition to instate the present liberal structure, despite criticism from some of its left support groups. The argument behind opening up of the sector was consumer-centric, which claimed that opening up insurance would give better product and service to consumer. The opponents of privatization argue that in a poor country like India insurance need to have social objective

4.4. RESEARCH DESIGN:

A Specific framework used for data collection of scientifically conducted project is known research design.

4.4.1. EXPLORATORY RESEARCH

Exploratory research is done to know why and how certain phenomenon occurs, how consumer evaluates quality, tangible features, and replacement policy warranty. That's why I use this research design in my market research.

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4.5. Sampling method: -

For research purpose of project researcher selected the probability sampling. The population for our project was very large; it was not possible to meet every one so researcher select simple random sampling. Researcher had covered the Jaipur city.

4.5.1. Sample size: As considering the coverage of researcher takes the sample size as about 50 consumers and divided this sample in equal strength to give same weight age for all area.

4.5.2. AREAS COVERED

Any study that is conducted has a scope. The scope here signifies the geographical limits within which the study will be carried discrepancies in the study due to a large number of extraneous variables in the area. The market survey was conducted on all the insurance companies in Jaipur The study was under ICICI jaipur. The geographical scope of my study was limited to the area of jaipur territory where by different area were covered. Mansrovar Jagatpura Pratap Nagar

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51 Vaishali

4.6. AWARENESS AND MARKETING

For the awareness program we done meetings, seminars, gave presentations, ad campaigns and pamphlets distribution.

4.6.1. Investment in Insurance sector

Agreed, insurance may not be the best place to invest your hard-earned money. But there are sufficient reasons for one to believe that it can be a highly lucrative avenue to facilitate savings. People often talk about yield on investment and tend to compare their values with those available on various insurance schemes. This is particularly typical within the Indian sub-continent where one conveniently forgets the element of risk covered by life insurance. It is extremely unfair to compare the performance of insurance against other investments without considering the core features of insurance. The very essence of insurance is to protect your family from the uncertainty of your life. Hence it proves very logical to evaluate the costs involved towards this feature. Ask yourself this question When you pay insurance premium for your car, do you get anything if fortunately no mishap happens? This means that you spent the amount to secure a valuable property. Hence you must accept that out of the total amount paid by you for your life insurance, a certain amount is used for providing the risk cover and only the balance can be utilized as savings. In other words, the total premium you pay minus the amount evaluated as the cost of insurance must be considered as the amount invested to get the maturity amount. If you calculate the yield from returns, you will be in for a surprise. Secondly, we tend to think very unrealistically about our life. We often compare the results after say 10 years from an investment scheme, for instance PPF. And then we try to convince ourselves that PPF is providing a better yield than an insurance policy. For instance, if you invest Rs.10, 000/- in PPF after 1 year your money will grow to Rs.11100/- accruing a return of 11 percent. But what if your death occurs in the first year itself?

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52 The Rs.10,000/- can give you an insurance cover up to an approximate sum of Rs.12 lakhs (depending upon the plan, age, etc) and this amount shall become available to the nominee of the policyholder as against the mere paltry Rs.11,100/- that PPF shall pay. Now how do you compare the yield in such a situation? Is it 100 % or 1000 % or more?

4.6.2. Benefits of investing in ICICI Prudential Life Insurance Company: 4.6.2.1. Customer centric:
The company is customer centric understanding his expectations by keeping him as the center point. Listen actively Understand customer needs and deliver solutions Treat customer interest always supreme

4.6.2.2. Values of companies

Customer first. Boundary less Passion Integrity Ownership

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4.7. DATA COLLECTION

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.

4.7.1. SOURCE OF PRIMARY DATA

4.7.1.1. Natural Market Relatives Friends Neighbours 4.7.1.2. Survey

4.7.2. SOURCE OF SECONDARY DATA

4.7.2.1. 4.7.2.2. 4.7.2.3. Yellow pages Telecalling leads Database of different companies

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4.8. LIMITATIONS OF THE STUDY

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 and advisor as they are very fickle-minded 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 CA's who become advisors but these are only those one who; are doing jobs somewhere and not allowed the ones who are doing their practice. So, still this decision is very dicey.

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Sometimes, eve 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 from 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.

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4.9. REVIEW OF THE LITERATURE

The basic project is promotion the concept of insurance from ICICI prudential as a business opportunity. Because 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 advisor who can bring more business for the company. So the search of prospective advisor is done. methods used to determine the prospective advisors are: 4.9.1. Personal contacts 4.9.2. Sales blitz 4.9.3. Tele-calling For this, questionnaire is used which is filled by the prospective advisors. A sample size of 60 is taken out of data about 50 samples is being collected and analyzed. The prospective advisors are told about the company and the business opportunity wherein one can earn lots of money with flexible working hours. So one can adopt this as a part time business without any investment. The various

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4.10. ANALYSIS & INTERPRETATION

4.10.1. The prime motives of investment by the investors as derived by the research are:

4.10.1.1. Relaxation in tax: generally all people invest to reap the tax benefits under
section 88.

4.10.1.2. Life insurance cover: nothing is eternal and life is unexpected so everyone
wants to save for future and left some amount for his or her beloved ones after his or her sudden demise.

4.10.1.3. Fulfillment of future expenses (children education, higher studies, their marriage etc): in the whole life of an individual there are a number of expenses but the
earning is not ever lasting. So to meet the future requirements as children education, marriage etc hell have to secure his fund today because what is the present value of money is not going to retain in the future.

4.10.1.4. Retirement planning: retirement is the phase which can never be excluded
from the life, so better if a person plan it earlier. If the current expenses of a person are Rs 30,000 per month then after 20 years hell require Rs 80,000 to maintain the same life style. So a person should invest today in those avenues which will meet his future needs as well as secure his retirement, so that at that time he can enjoy his life without tension.

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4.10.1.5. Other family obligations; it includes daily expenses, occasional expenses like
on festivals etc, visits and tours etc.

4.10.1.6. Medical emergencies: "health is wealth so a person plans his medical

expenses earlier so that in life these sudden expenses do not create hurdle. Also some time the medical emergencies are so sudden and big that arrangement of funds at that point of time can become a nuisance for the person.

4.10.1.7. To make money by money: for some people its all about money and they are
crazy to increase their wealth so they take risk and invest in the field where returns as well as risk are maximum.

4.10.2. Factors on which investment depends: 4.10.2.1. Return: The investor is very keen about his returns. So hell select only those sectors
for investment where he sees growth opportunities and good returns on his investment with minimum risk.

4.10.2.2. Inflation: It is the second most important factor which a investor look up to before
investment. Because it not only reduces the value of your money but also sometimes prove your investment nothing but vague. It can become clearer from the below illustration: Impact of inflation on monthly expenses (inflation rate 5%) 4.10.2.2.1. 4.10.2.2.2. If the monthly expenses today are Rs 30,000 then after 5 years it will be Rs 38,288. 15 years it will be Rs 62,368. 20 years it will be Rs 79, 599. Impact of inflation on money (inflation rate 5%) Value of Rs 1 lakh after: 58

59 5 years will be Rs 78,355 15 years will be Rs 48,102 20 years will be Rs 37,689

4.10.2.3. Risk: it is the most important factor because according to the class of investors, risk
averse goes for minimum risk portfolio and risk takers go for maximum risk portfolios. The risk neutrals stay between the two and dont take risk at all.

4.10.2.4. Service: The investors also analyze the customer service provided by the concerned
company. If its reputation and goodwill is strong in the industry then hell not think a lot but invest in that company. The services provided by the company, their utilities and timeliness play key role in attracting the investor.

4.10.2.5. Partner: the company in which the investor is going to invest also matters for him.
This is because on the basis of its goodwill, its earlier returns, growth, reputation, future prospects and customer orientation the investor will decide whether to invest, his hard earned money in that company or not.

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CHART-I
Perception of Investors with respcetive to returns
21% 15%

64%

Safety of Principal Earning return above inflation rate Earning High returns

Safety of Principal Earning return above inflation rate Earning High returns

22 96 32

In the above table 22 surveyed investors gave more importance to safety of principal, 96 investors gave more importance to earning returns above inflation rate, 32 investors gave more importance to earning high returns. 15% of the surveyed investors had a primary motive of the safety of principal, 64% of the surveyed investors were more concerned about earning returns above inflation rate. 21% of the surveyed investors were more concerned about earning high returns. Nil Average Good 12 104 34

In the above table 12 investors were found with no knowledge about various investment schemes, 104 investors were found with average knowledge about various investment

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61 schemes, 34 investors were found with good knowledge about various investment schemes. In the above graph out of total surveyed investors 8% were found with nil investment knowledge, 69% were found with average investment knowledge, 23% were found with good investment knowledge.

CHART-II

Occupation Status of Various Investors

Doesn't affect 16%

Not Secured 19%

Secured 65%

Secured

Not Secured

Doesn't affect

Secured Not Secured Doesn't affect

98 28 24

In the above table out of the total surveyed investors 98 investors were found with job security, 28 investors were found with unsecured jobs & 24 investors were found in a no affect status. In the above graph 65% of the investors were in a state of secured jobs, 19% of the investors were in the state of unsecured jobs & 16% of the investors were in the state where this factor doesnt affect them.

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CHART-III

Family Status of Various Investors

None 13%

More than 2 1-2 dependents None 1-2 dependents 21% More than 2 66%

More than 2 1-2 dependents None

98 32 20

In the above table out of the total surveyed investors 98 investors were those who are having more than 2 dependents, 32 investors were those who are having 1-2 dependents, 20 investors were those who didnt had any dependent. In the above graph 66% investors were those who are having more than 2 dependents, 21% investors were those who are having 1-2 dependents & 13% investors are those who having no dependents.

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CHART-IV

Investor's approach in making an Investment decisions

Educated View 15%

Guess Work 37%

Friendly Advice 48%

Educated View

Friendly Advice

Guess Work

Educated View Friendly Advice Guess Work

22 73 55

In the above table out of the total surveyed investors 22 investors took educated view before investment, 73 took friendly advice before investment & 55 made guess work. In the above graph 48% took friendly advice, 15% took educated view & 37% made guess work.

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CHART-V

PEOPLE HAVING INSURANCE POLICIES

26% Yes No 74%

In the survey 74%people say that they have not insurance policies & 26% people say that they have insurance policies.

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CHART-VI

% OF INSURED POPULATION IN VARIOUS COMPANIES

6% 6% 3% 11% 8% 32% 6% 28%

ICICI LIC Max Newyork HDFC TATA AIG Birla sun life AVIVA Metlife

Out of the 60 insurable people interviewed nearly 74% people have taken insurance policy. Out of this population being interviewed nearly 32% had LIC policy, 28 % had ICICI Prudential, followed by HDFC (11 %), Max New York Life (8 %) , TATA AIG (3%), Birla Sun Life (6%), Aviva and Metlife having 6% shares each in the interviewed population.

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Chart: VII

FIRST PREFERENCE OF PEOPLE AMONG PVT. LIFE INSURANCE COMPANIES

10% 47% 30% 13%

ICICI Prudential Max New york HDFC AVIVA

Out of 60 people interviewed, 47% had ICICI Prudential as their first preference for a pvt. Life Insurance Company followed by HDFC Standard Life having 30% preference followed by Max New York Life having 13 % market share and lastly Aviva Life insurance having 10% market share.

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Chart: VIII

PERCEPTION OF PEOPLE ABOUT SAFETYNESS : LIC Vs PVT. LIFE INSURANCE COMPANIES

Yes 38% No 62%

Yes No

Out of 60 people being interviewed, 62 % of people do not find private life insurance companies to be safe for buying a life insurance policy whereas 38 % people find them safe for buying a life insurance policy from a private life insurance company.

ICICI Prudential Life Insurance Company is quite a famous company because: it is all due to the above mentioned reasons that ICICI Prudential Life Insurance Company is a famous company.

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Market Share of ICICI Prudential Life Insurance Company in Life Insurance Companies In India

COMPANIES 1. ICICI PRU 2. HDFC STANDARD LIFE 3. BIRLA SUNLIFE 4. TATA AIG 5. ALLIANZ BAJAJ 6. MAX NEW YORK LIFE 7. OM KOTAK 8. AVIVA 9. ING VYASA 10.STATE BANK OF INDIA LIFE 11. METLIFE 12. AMP SAMNAR

% OF SHARE 36.2 9.4 14 6 8.7 6.2 5.7 3.7 3.5 4.1 1.1 1.2

ICICI PRU. LIFE INSURANCE SHARE OF THE PIE

1 2 3 4 5 6 7 8 9 10 11

TOTAL MARKET SIZE: INR 205 BILLION

4.11. SWOT ANALYSIS OF ICICI 4.11.1. INTRODUCTION OF THE COMPANY STRENGTH

Big Financial Support Goodwill of the company

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Best products and policies Best Advisor Team Manager / Unit Manager Assets in excess of Rs. 1,00,000 crores Largest Private Player in Insurance sector in India. Follow the six Sigma quality Standards Motivating Working Environment ICICI Prudential Life Insurance Company Limited is right now the market leader in Private Insurer segment.

4.11.2. WEAKNESS:
Unsatisfied customer. Operational Skill Dispute or conflict in hierarchy Low salary New Experience in Indian market The company right now has lesser number of agents (i.e. financial advisors) the LIC of India which affects their sales in comparison to LIC of India.

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4.11.3. OPPORTUNITY
Large growing market Information technology Globalization Growth rate Government Policies Some localized factor 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.

4.11.4. THREAT
Full of competition Not faith of public on private companies

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High accident rate Lower interest rate Other big brand names like BIRLA, TATA, HDFC, SBI AND AVIVA etc.

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STRENGTHS

WEAKNESS

Strong Tie Up Brand Equity Strong Network Huge Customer Database Strong Financial Base

Low Customer Awareness Less Promotion Untouched Rural Population

OPPURTUNITIES
Large Population Network Building uninsured

THREATS
Competitors. Customers belief in LIC Faster Turnover of Employees

4.12. CONCLUSION

The research reveals the typical orthodox view of the Indian investors that still today they preferably invest in government securities, gold and real estate. But the new generation of

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73 investors is clearly not going to follow the trend. But they believe in themselves and knowing the market trend started investing in riskier sectors to reap maximum benefit in short span of time. Through market survey & meetings I also found that today most of the people like to invest in that field which gives them maximum returns. The trend of investing in real estates &gold has gone. They prefer in investing in insurance since it provides financial security along with good returns. This sudden popularity of investment in shares and private sector can be attributed to the following factors: Increase in working population, larger family incomes and consequent higher savings. Provision of tax incentives in respect of investment in specified channels. Increase in tendency of people to hedge against inflation. Availability of large and attractive investment alternatives. Increase in investment related publicity. Ability of investments to provide income and capital gains.

The main priorities of peoples are health, protection, child education, retirement and wealth and most of investment of private sector in all the categories for good recovery of money.

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4.13. RECOMMENDATIONS & SUGGESTIONS

As a management trainee in ICICI Prudential Life Insurance Company my experience was one of the best learning experiences. The companies working was very ethical but I personally have some suggestions and recommendations to enhance companys performance:

The company should go for more aggressive policies to capture the market. It should go for more publicity and ad campaigns in the rural and sub urban areas to become a known brand name for them. The policy document should be provided in Hindi language and the language should be easy to understand. Usage of difficult words should be avoided. The policy document should be provided to the clients so that they can go through the document thoroughly. All the conditions and clauses (like the hidden charges) should be clearly mentioned in the policy document and the client should be aware of these things.

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4.14. FUTURE POSSIBILITIES

Job opportunities are likely to increase manifold. The number of people working in the insurance sector in India is the roughly the same as in the UK with a population that is 1/ 7 Indias; the US with a population 1/4th the size of India has nearly 4 times the number. The liberalization or the insurance sector promises new jobs opportunities for those employed in the finance sector that are equipped with degrees in finance. There will be demand for marketing specialists, finance experts, human resource professionals, engineers from diverse streams like the petrochemical and power sectors, systems professionals, statisticians and even medical professionals. There could be a huge inflow of funds into the country. Given the industrys huge requirement of start-up capital, the initial year after opening up are bond to see a strong inflow of foreign capital. Substantial shift in the distribution of insurance in India is likely to take place. Initially, insurance is seemed as a complex product with a high advice and service component. Buyers prefer a face-to-face interaction and place high premium on brand name and reliability. Finally, some potential Indian entrant into insurance hope to ride their existing distribution networks and customer bases. For Example, financial organizations like, ICICI, HDFC, or Kotak Mahindra intend to tap the thousands of customers who already buy their deposits, consumer loans or housing finance. Other hopeful entrants anticipate specific alliances such as with hospitals to provide health cover.

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4.15. Questionnaire

There were about 12 questions in the questionnaire on the basis of which the findings were done and the analysis was made. The responses to the questions in the questionnaire are presented in the form of statistical tools such as pie charts and bar charts. There were 40 people being interviewed from different income groups and age groups. 1. Name Date of Birth : Occupation Age Designation Sex : : : : Tell us about your personal details: :

2.

Top priorities of your investment? Health Protection Child Education Wealth Retirement

3. 4. 5. 6.

What portion of your savings you invest? List your five prominent investment objectives? Where do you invest and currently invested in? Do you have a life insurance policy? If yes, then of which company\companies? Yes No

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77 7. Do you see insurance policies as insurance or a security option? Insurance . Security option. 8. Which of following are your criteria/criterion to select a particular insurance company and a scheme? Security Market name All of the above 9. Rank the following life insurance companies in the decreasing order of preference Max New York Life Insurance HDFC Standard Life Insurance ICICI Prudential Birla Sun Life TATA AIG OM Kotak Aviva 10. Do you think that private life insurance companies are as safe as LIC for taking a policy? Yes No 11. Would you like to invest in ICICI Pru? Life Insurance Company? Why or why not? Yes No 12. ICICI Pru. Life Insurance Company is quite a famous company because: Of its customers service Of its policies Of parent companies Of its marketing and advertising strategies Time span Return

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78 All of the above.

4.16. BIBILIOGRAPHY

4.16.1. Books referred:

C.R.Kothari, Research Methodology, New Delhi: Wishwa Prakashan, Inc.2001, 2nd Edition. V.K.Bhalla, Investment Management, New Delhi: S.Chand Publication, Inc.2007, 13th Edition. Philip Kotlar, Marketing Management, New Delhi, Pearson Education (P) Ltd., Indian Branch, 2004.

4.16.2. News Papers:

Economic Times Business Standard

4.16.3. Websites :
www.icici.com www.irdaindia.org www.wikipedia.com www.marketresearch.com

4.16.4. MAGZINES:
INDIA TODAY BUSINESS WORLD

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