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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.
Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current. With a large population and the untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20% annually. Together with banking services, it adds about 7 percent to the countries GDP. In spite of all this growth statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without life insurance cover and the health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation “Malhotra Committee” was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many changes. The liberalization of the industry the insurance industry has never looked back and today stand as one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run. Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management –which is the need to mange uncertainty on account of exposure to loss, injury, disadvantage or destruction.
Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.
Insurance is the method of spreading and transfer of risk. The fortunate many who are exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect the assets but only compensates the economic or financial loss. In insurance the insured makes payment called “premiums” to an insurer, and in return is able to claim a payment from the insurer if the insured suffers a defined type of loss. This relationship is usually drawn up in a formal legal contract. Insurance companies also earn investment profits, because they have the use of the premium money from the time they receive it until the time they need it to pay claims. This money is called the float. When the investments of float are successful they may earn large profits, even if the insurance company pays out in claims every penny received as premiums. In fact, most insurance companies pay out more money than they receive in premiums. The excess amount that they pay to policyholders is the cost of float. An insurance company will profit if they invest the money at a greater return than their cost of float. An insurance contract or policy will set out in detail the exact circumstances under which a benefit payment will be made and the amount of the premiums. Classification of insurance The insurance industry in India can broadly classified in two parts. They are. 1) Life insurance. 2) Non-life (general) insurance.
1) Life insurance: Life insurance can be defined as “life insurance provides a sum of money if the person who is insured dies while the policy is in effect”. In 1818 British introduced to India, with the establishment of the oriental life insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay mutual life assurance society was set up in 1870.the life insurance act, 1912 was the first statuary measure to regulate the life insurance business in India. In 1983, the earlier legislation was
Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.
consolidated and amended by the insurance act, 1938, with comprehensive provisions for detailed effective control over insurance. The union government had opened the insurance sector for private participation in 1999, also allowing the private companies to have foreign equity up to 26%. Following the opening up of the insurance sector, 12 private sector companies have entered the life insurance business. Benefits of life insurance Life insurance encourages saving and forces thrift. It is superior to a traditional savings vehicle. It helps to achieve the purpose of life assured. It can be enchased and facilitates quick borrowing. It provides valuable tax relief. Thus insurance is found to be very useful in the lives of the person both in short term and long term. Fundamental principles of life insurance contract; 1) Principle of almost good faith: “A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk being proposed whether requested or not”. 2) Principle of insurable interest: “Relationships with the subject matter (a person) which is recognized in law and gives legal right to insure that person”. 2) Non-life (general) Insurance: Triton insurance co. ltd was the first general insurance company to be established in India in 1850, whose shares were mainly held by the British. The first general insurance company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in 1907 . there emerged many a player on the Indian scene thereafter. The general insurance business was nationalized after the promulgation of General Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance
Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.
business. CONCEPTUAL BACKGROUND • Satisfaction is defined as . . .
“A person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.” Customer Satisfaction can be defined as supplying or gratifying all wants or wishes, fulfilling conditions or desires, or the state of the mind anything that makes a customer feel pleased or contented. Consumer Behavior: Consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services ideas, or experiences to satisfy needs and desires Customer value: The ratio between the customers’s perceived benefits (economic, functional and psychological) and the resources (momentary, time, effort, psychological) used to obtain those benefits. Customer satisfaction: Customer satisfaction is the individual’s perception of the performance of the product or service in relation to his or her expectations. Motivation: The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal. Personality can be described ad the psychological characteristics that both determine and reflect how person responds to his or her environment.
Visvesvaraya Technological University, ‘Jnana Sangama’ PG Centre, Belgaum.
THE CONSUMER ADOPTION PROCESS The consumer adoption process is the process by which customers learn about new products. Innovation takes time to spread through the special system. personal influences and the characteristics of the new products or innovations STAGES OF ADOPTION PROCESS An innovation refers to any good. Consumer learning is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior. and interprets stimuli into a meaningful and coherent picture of the world. including consumers and organizations willingness to try new products. Visvesvaraya Technological University. -6- . 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. organizes. That is perceived by someone as new. ‘Jnana Sangama’ PG Centre. Adopters of new products have moved through the following five stages. The consumer adoption process is influenced by many factors beyond the marketer’s control. The idea may have long history. service. try them. and adopt or reject them. The consumer adoption process focuses on the mental process through which an individual passes from first hearing about an innovation to final adoption. Belgaum. but it is an innovation to the person who sees it as new.Perception is defined as the process by which an individual selects. or idea.
As all the researches are based on some and my study is also based upon some objective and these are as follows. OBJECTIVE OF THE STUDY For every problem there is a research. 3. 4. ADOPTION: The consumer decides to make full and regular use of the innovation. -7- .1. AWARENESS: The consumer becomes aware of the innovation but lacks information about it. To understand the insurance business and products of ICICI Prudential life insurance co ltd. 5. Belgaum. 1. Visvesvaraya Technological University. STATEMENT OF THE PROBLEM “Study of consumer behavior & customer satisfaction towards ICICI Prudential Life Insurance Products”. INTEREST: The consumer is stimulated to see the information about the innovation. 2. EVALUATION: The Consumer considers whether to try the innovation or not. TRIAL: The consumer tries the innovation to improve his estimate of its value. ‘Jnana Sangama’ PG Centre.
To find out whether people were really aware of life insurance. a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current RESEARCH METHODOLOGY Research in common parlance refers to a search for knowledge. The word research has been derived from French word Researcher means to search. One can also define research as a scientific and systematic search for pertinent information on a specific topic. -8- . 5. Essentially. 6. To find out the people’s perception about life insurance. 3.2. This study is very useful as the financial market become more sophisticated and complex. ‘Jnana Sangama’ PG Centre. Belgaum. SIGNIFICANCE OF THE STUDY The project is concerned with the “STUDY ON CONSUMER BEHAVIOR AND CUSTOMER SATISFACTION AT ICICI PRUDENTIAL LIFE INSURANCE. To come out with conclusion and suggestions based on the analysis and the Interpretation of data. 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. 4. To find out what respondents expect from life insurance. To find out how people think about private life insurance. To understand Consumer buying behavior 7. Visvesvaraya Technological University.
measurement and analysis of data. The design used for carrying out this research is Descriptive. ‘Jnana Sangama’ PG Centre. whether created or already generated. -9- . When research is done. some new out come.As time and costs are the major limitation that the researcher faces. RESEARCH DESIGN: Research Design is the conceptual structure within which research is conducted.FRANCIES RUMMER defined “Research: It is a careful inquiry or examination to discover new information or relationship and to expand or verify existing knowledge. DATA TYPE: In this research the type of data collection is • • Primary data Secondary data DATA SOURCE: The sources of collection of secondary data are: • • • • • Questionnaire Books Websites Magazine Brochure SAMPLING PLAN: It is very difficult to collect information from every member of a population . Visvesvaraya Technological University. so that the problem (created or generated) to be solved. Belgaum. It constitutes the blueprint for collection. Research is the solution of the problem.
Tabulating refers to bringing together similar data and compiling them in an accurate and meaningful manner. coding and tabulating. 1. The data collected by questionnaire was analyzed. interpreted with the help of table. Various steps required for this purpose were editing.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. Visvesvaraya Technological University. INDUSTRY PROFILE 1. The individuals were selected in the random manner to form sample and data were collected from them for the research study. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. bar chart and pie chart.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. Belgaum.A sample of 100 was taken the sample size of 100 individuals were selected on the basis of convenient sampling technique. 1. 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. -10- . ‘Jnana Sangama’ PG Centre. Some of the important milestones in the life insurance in India are.
74) 2065306. 2740.16 crore (68.07 crore in the year 2001-02 to Rs.50 crore (4.75 crore in the previous financial year. Clearly insurance is on a growth path. They were faced with attitudinal barriers towards the category and the perception that insurance was only a tax saving tool.the Life Insurance Corporation of India (LIC).48 crore which constituted of Rs. ‘Jnana Sangama’ PG Centre. The percentage of premium income to GDP which was just 2.10336. when the industry was opened up to the private players.36 percent). single premium had declined from Rs.47 per cent). and Rs. Though it went up marginally in 2003-04 to Rs.14 crore in 2002-03 with the withdrawal of the guaranteed return policies. Post opening up.1912: The Indian Life Assurance For over 50 years. was at an abysmal 22% of the insurable population.34 (127. recording a growth of 24. 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.58 (152. for instance.11 per cent growth over 2003-04.898.66653.95 crore of first year premium.3% in 2000-01 rose to 3.30 crore showing 74.80 crore during the financial year 2005-06 as against Rs.34. Insurance per se had lost it basic rationale: protection.30 crore (12. Belgaum.33 crore (19. life insurance in India was defined and driven by only one company. respectively. In the year2000-01.05) 556457.07 crore of renewal premium and Rs.34) 244070.5936. private players have had to rise to many challenges.9.62 per cent growth) 2004-05.56637. It wasn’t surprising then that its potential lay frozen and unexploited. however. 25191. Today. lakh) Insurer LIC* Private Sector 2004-05 2005-06 First year premium including Single premium 1734761. and life insurance has emerged as the dominant contributor to this growth. witnessed a significant shift with the single premium income rising to Rs. The contribution of first year premium. Rs.5674. (Rs.15881. 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. -11- . 194. 10336. single premium and renewal premium to the total premium was Rs.31 per cent. The industry presented a huge opportunity. far exceeding expectations. just three years since their entry.and new success stories.99) Visvesvaraya Technological University.16 per cent).3% in 2002-03. their cumulative share has crossed 13% (source: IRDA). PREMIUM UNDERWRITTEN BY LIFE INSURERS The life insurance industry recorded a premium income of Rs. However.74 (6. Rs.36 (19. 6996. the life insurance premium was Rs.45 crore of single premium. Life insurance penetration.82854.
they were treated as substandard lives and extra premium was charged.10 (20.83) 6665375. with the establishment of the Oriental Life Insurance company in Calcutta. and then general insurance was nationalized in the year 1972.48 (218.3 Brief Review of Scenario – Insurance Insurance in India started without any Regulation in Nineteenth century.75) Total Premium LIC Private Sector Total 6353342.63) 312032.31) 5447422.68) 2621763.12) 4686543.32 (14.65) 8285479.85) 1.47) 67962.62 (17.63 (178. ♦ 1818 The British introduce to India.01 (20. A few British companies dominated the market mostly in large urban centers.95) 216293.70 (15. In 1999. It was story of a typical colonial era.80 (24.Total 1978832. Visvesvaraya Technological University. ‘Jnana Sangama’ PG Centre. -12- . there were gross irregularities in the functioning of Life insurance was nationalized in the year 1956.70 (32.26) 5663716.91) 7512728.98 (18.49) Renewal Premium LIC Private Sector Total 4618580.25) 772750. Indian lives were not insured. Third.96 (19.82 (147. Insurance was nationalized mainly on 3 counts First. Second. even if they were insured. the private insurance companies were allowed back again into insurance sector with maximum cap of 26 percent foreign holding.33 (18. Belgaum.05 (343.
♦ 1938 The insurance act. ♦ 1956 Government sets up LIC ♦ 1972 Non life insurance nationalized. insurers start settling non-life claims in the cashless mode. Belgaum. set up to draw up a blue print for insurance sector reforms. ♦ 1956 Life insurance nationalized.♦ 1850 Non life insurance debuts. ‘Jnana Sangama’ PG Centre. as TPAs enter the scene. 1. Visvesvaraya Technological University. ♦ 1993 Malhotra committee. ♦ 1994 Malhotra Committee recommends re-entry of private players. headed by former RBI governor R. replaces earlier act.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. ♦ 2002 Banks were allowed to sell insurance plans.N. -13- .Malhotra. government takes over 245 Indian and foreign insurers and provident societies. ♦ 1997 Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up. which forms the basis for most current insurance laws. ♦ 2000 IRDA starts giving licensed to private insurers ♦ 2001 ICICI Prudential Life Insurance came into the market to sell a policy. 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. ♦ 1912 The Indian life assurance companies’ act enacted to regulate the life insurance business. GIC set up. autonomy ot PSU insurers. ♦ 1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer ♦ 1907 Indian mercantile Insurance is the first Indian non-life insurer. with Triton Insurance Company.
together with riders to the base products. Comprehensive packaged products have been popularized with features of endowment. and suit their requirements. critical illness. Continued innovations in product development has resulted in a wide range of flexible products to meet the requirements for cover at different stages of life -today a variety of products are available ranging from traditional to Unit linked providing protection towards child. Belgaum. In the private sector 12 life insurance and 6 general insurance companies have been registered. whole life. With the demographic changes and changing life styles. group hospital and surgical treatment. dismemberment. -14- . etc. single premium mode has been popularized. rebate in premium for higher sum assured. hospital cash benefits. money back. regular premium. 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. endowment. etc. and add-on/riders including accidental death. capital guarantee. 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. pension and group solutions.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. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. ‘Jnana Sangama’ PG Centre. single premium. unit linked products. which were subsequently withdrawn/toned down. Visvesvaraya Technological University. which are relevant to the people of different age groups. premium mode rebate. fixed term assurance risk cover. which are expected to be introduced by early next year.. A number of new products have been introduced in the life segment with guaranteed additions.
-15- . Belgaum.1. 1. Employment generation. ‘Jnana Sangama’ PG Centre. market was a public monopoly.6 Contribution to Indian Economy Life Insurance is the only sector which garners long term savings.LIC monopoly player -Government control -Opened up sector 1.7 Insurance Industry prior to de-regulation Prior to deregulation in 2000.5 Historical Perspective ⇒ Prior to 1956 ⇒ 1956 ⇒ 2001 -242 companies operating -Nationalization. Visvesvaraya Technological University. Spread of financial services in rural areas and amongst socially less privileged. Strong positive correlation between development of capital markets and insurance/pension structure. Long term funds for infrastructure.
Corporate agents ⇒ Claims ⇒ Website ⇒ Bancassurance ⇒ Policy Issuance ⇒ Branch Network -16- Multi Channel Access .2000 Offices . ‘Jnana Sangama’ PG Centre.000 agents Distribution through tied agents only Sales approach primarily on a tax savings platform Traditional style product offering : Endowment and money back plans Inadequate and inflexible products Pensions: Small part of product offer Limited focus on customer needs 1.8 Improving Service Standards ⇐ Pre Deregulation – Limited Distribution Channel Access ⇒ Advisors Service Points ⇒ Branch Network Use of IT ⇒ Limited use of IT ⇒ Post Deregulation – Service through Distribution Multiple Service Use of IT Points ⇒ Advisors ⇒ Call Centers ⇒ Shorter time around time ⇒ Brokers & ⇒ Email Visvesvaraya Technological University. Public Monopoly . Belgaum.Over 800.
-17- . From its early days. 2000 and eighteen days later. 1956 (‘the Act’). symbolized trust and was easily recognized and understood. a premier financial powerhouse and prudential plc. a leading international financial services group headquartered in the United Kingdom (UK). It launched a corporate campaign ICICI Prudential also made using the theme Visvesvaraya Technological University. Belgaum. a little over a year since its launch. When the company began its operations. 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). the company had issued 100.2. By March 31. the need was to build a brand that was relatable to.23 billion. The Company is licensed by the Insurance Regulatory and Development Authority (‘IRDA’) for carrying life insurance business in India. 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 20.000 policies translating into premium income of approximately Rs. 1. The company was granted a certificate of Registration by the IRDA on November 24. ‘Jnana Sangama’ PG Centre. 2000 as a company under the Companies Act. The company brings together the local market expertise and financial strength of ICICI Bank and Prudential’s International life insurance experience. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. 2002. ICICI Prudential seemed to have the wherewithal for a large-scale business. issued its first policy on December 12.200 million on a sum assured of over Rs.
the company garnered Rs. With the authorized capital of the company standing at Rs. the company has unflinchingly focused on being mass-market player. creating a distribution network and deploying resources that would further its goal. Apart from ramping up thoroughly training its advisors. pioneering market-linked products and pension plans. as well as 9 bancasurance partners and over 200 corporate agent and broker tie-ups. -18- . The company has a network of over 72. to offer customers the most flexible life insurance policies in the country. The sum assured in force stands at Rs. The success of the campaign. ‘Jnana Sangama’ PG Centre.45. ICICI Prudential continues to have the highest capital base amongst all life insurers in the country.000 advisors.of ‘Sindoor’ to epitomize protection. 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. Visvesvaraya Technological University. togetherness and all that is Indian. 888 crore. 2006. the company has twelve ‘Bancasurance’ partners –the largest in the country.963 policies.750 million. For the year ended March 31. bringing the total paid –up equity capital to Rs. 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. and is a clear assurance of ICICI Prudential’s ability to meet its obligations to customers at the time of maturity or claims. endearing itself to the masses. developing products. 412 crore of weighted new business premium and wrote 837. 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. 1185 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. its ninth capital hike. trust. ICICI Prudential’s equity base stands at Rs. 6. The AAA rating is the highest credit rating. From day one. In February 2004. Belgaum. ‘the calling card of the company’ saw the brand awareness scores almost at par with its 40 year old competitor. ICICI Prudential increased its capital base by Rs. 12 billion.2. It swiftly revised and added to its initial range of products. 500 million.
The Company’s penetration of the retirement market was driven by the focused approach towards creating awareness through sustained campaign. thus reducing dependency on any one channel. with branches in 54 cities. not life’ campaign. ICICI Prudential was the first life insurer to invest in multiple channels and offer the customer choice and access. This has been the driving force behind its multi-channel distribution strategy. ICICI Prudential’s success is rooted in its philosophy to always offer the customer a choice. in the year 2003/04 it was adjudged Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand Survey’ by AC Nielsen ORG-MARG). Notably.20 billion.5 billion. New business premium income shows a 106% growth at Rs. -19- . 2004 with a total received premium income of Rs. with a wide range of flexible products that meet the needs of the Indian customer at every step in life. 7.For the past five years. The company’s retail market share amongst private companies stood at 36%.4. banks. making it clear leader in the segment. ICICI Prudential has retained its position as the No. Belgaum. It was also conferred the ‘Outlook Money-Best Life Insurer’ award for the second year running. ICICI Prudential’s success has been meteoric. it has one of the largest distribution networks amongst private life insurers in India. Visvesvaraya Technological University. ‘Retire from work. great strides in the retirement solutions and pensions market. The total number of policies issued stands at more than 780. up 135% last years total premium income of Rs.000 with a total sum assured in excess of Rs. ‘Jnana Sangama’ PG Centre. direct marketing and corporate agents. 9. ICICI Prudential was also short-listed to the final round for its ‘Sindoor campaign in EFFIES 2002.9 billion. Today. The company is also proud to have won Silver at EFFIES 2003 for its ‘Retire from work. ICICI Prudential closed the financial year ended march 31. To add to its achievements. Beginning operations in December 2000. In fact. which includes advisors. not life’. driven mainly by the company’s range of unique unit-linked policies and pension plans.1 private insurer in the country. becoming the number one private life insurer within months of launch.160 billion.
-20- .2513. This includes mortgages. MFIs and corporates for the distribution of rural policies. South Indian Bank. and Jammu in the north to Trivandrum in the south.000 insurance advisors to interface with and advise customers. Established in London in 1848. through its business in the UK and Europe.com) PRUDENTIAL plc. 2006. The company has 9 bank partnerships for distribution. Belgaum. corporate and agricultural finance. it has also tied up with NGOs.89 billion as on March 31.Within six months. Federal Bank. Bank of India. having commenced operations in 132 cities and towns in India. call centers and internet banking (www. About the Promoters ICICI Bank (NYSE:IBN) is India’s second largest bank with an asset base of Rs. the US and Asia. provides retail financial services products and services to more than 16 million customers. 2005. credit and debit cards. policy holder and unit holders world wide. 2200 ATMs. Further. Lord Krishna Bank. Prudential has brought to market an integrated range of financial services products that now includes life Visvesvaraya Technological University. car and personal loans. ICICI Bank provides a broad spectrum of financial services to individuals and companies. stretching from Bhuj in the west to Guwahati in the east. ‘Jnana Sangama’ PG Centre.icicibank. it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers. having agreements with ICICI Bank. As of December 31. ICICI Prudential has recruited and trained more than 72. the campaign rewarded ICICI Prudential with an increased share of 23% of the total pensions market and 78% amongst private players. as well as over 200 corporate agents and brokers. and some cooperative banks. 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. ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. the company had over US$ 400 billion in funds under management.
turnaround times and customer satisfaction levels. 2004 with a total received premium income of Rs. the Philippines. in the year 2003/04 it was adjudged Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand Survey’ by ACNeilsen ORG-MARG). pensions. driven mainly by the company’s range of unique unit-linked policies and pension plans.000 with a total sum assured in excess of Rs. Another Novel introduction is the ICICI Prudential Lifestyle Visvesvaraya Technological University. 7. Prudential is the leading European life insurance company with a vast network of 23 life and mutual fund operations in twelve countries –China. Achievements Beginning operations in December 2000. ICICI Prudential was also short-listed to the final round for its ‘Sindoor campaign in EFFIES 2002. ICICI Prudential closed the financial year ended march 31. mutual funds. The total number of policies issued stands at more than 780. making it clear leader in the segment. Indonesia. Today.assurance.160 billion. 9. Japan. This initiative is currently helping the company improve processes. investment management and general insurance. up 135% last years total premium income of Rs. not life’ campaign. Thailand and Vietnam. banking. Singapore. To add to its achievements. The company’s retail market share amongst private companies stood at 36%.20 billion. The company is also proud to have won Silver at EFFIES 2003 for its ‘Retire from work. Notably. ‘Jnana Sangama’ PG Centre. Taiwan. -21- . In Keeping with its belief that a happy customer is the best endorsement. In Asia. an exercise that begins and ends with the customer from capturing his voice to measuring and responding to his experiences. Malaysia. New business premium income shows a 106% growth at Rs. it has one of the largest distribution networks amongst private life insurers in India. Belgaum. with branches in 54 cities. ICICI Prudential has embraced the ‘SIX SIGMA’ approach to quality. India.4. Hong Kong.9 billion. It was also conferred the ‘Outlook Money-Best Life Insurer’ award for the second year running. ICICI Prudential’s success has been meteoric. becoming the number one private life insurer within months of launch. Korea.5 billion.
and showcased products from different segments. This campaign contributed extensively to raising brand awareness and creating a distinctive identity for the company. Belgaum. create the differentiator for brand ICICI Prudential. ‘Jnana Sangama’ PG Centre. secure life and in the process. The advertising idea was encapsulated in the symbol of protection –the ‘Sindoor’. The Company recently tied up with the Forbes Six Sigma rated Dabbawalla organization in Mumbai for a direct marketing exercise. India’s first rewards programme for Life Advisors. The campaign featured a significant competitive advantage. but as a means to lead a worry-free. the company attached a creative of a bitten apple to Mumbai’s ubiquitous lunchboxes. The aim was to encourage people to view insurance not as a compulsory tax saving instrument. -22- . Brand-building in a complex category like life insurance is an uphill and multi-faceted task. 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. The brand proposition for all the campaigns was reflected in the line: ‘Suraksha: Zindagi ke har kadam par’. In a Unique effort to create awareness about a tax saving product.Rewards Club. so as to give the customer the confidence that it was ‘a company that could be trusted to invest funds with’. Visvesvaraya Technological University. At the time of launching operations. the sound financial backing and credentials of ICICI Prudential. white goods. it allows ICICI Prudential Advisors to redeem points for items ranging from kitchenware to gold. and even international holidays. the communications task was to build credibility. Promotion ICICI Prudential is a case study in how advertising and marketing can play a vital role in re-shaping an industry. It worked wonderfully with Mumbai’s office-goers and one that translated into substantial business for the company.
indeed. ‘Jnana Sangama’ PG Centre. Flexibility. B & A has emerged as a vital component of the company’s sales and distribution strategy. adaptation and experimenting with new ideas are the hallmarks of this channel. With focus on sales & people development. predictable and sustainable business model. which ICICI Prudential. Within a short span of two years. DISTRIBUTION SYSTEM Tied Agency Tied Agency is the largest distribution channel of ICICI Prudential. contributing to approximately one third of company’s total business. comprising a large advisor force that targets various customer segments. those that the company hopes to project: lifelong protection and value for money. 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. tied agency has emerged as a robust. and with nearly a large number of partners. throughout life’s ups and downs.Brand Values Market Research reveals that the values people associate with ICICI Prudential are. -23- . is taking into the market place. Belgaum. Visvesvaraya Technological University. one. The core value is protecting your loved ones. Bancassurance and Alliances ICICI Prudential was a pioneer in offering life insurance solutions through banks and alliances. It is a powerful proposition. The strength of tied agency lies in an aggressive strategy of expanding and procuring quality business.
the Solutions Group. the branches and the underwriters. Visvesvaraya Technological University. Information Technology The Information Technology function at ICICI Prudential is committed to enable business through the use of technology. It is segmented into 4 groups to enable highest levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in designing better product offerings to end-users. network services to the whole organization. Customer Care and Query Resolution Unit are all committed to providing effective solutions to over lakhs of customers across the country. ‘Jnana Sangama’ PG Centre. IT Architecture & Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. software. This team works as an in house R&D Solution Group. and manages work processes. To streamline the operations. Outbound Call Centre. IT Infrastructure group is responsible for providing hardware. exploring new technological initiatives and also caters to information needs of corporate functions in the organization. -24- . Belgaum. The Vision at Customer Service is to deliver ‘World Class Service’ at every opportunity.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. This group runs the 'Digital Nervous System' of the Enterprise at the highest levels of efficiency and provide robust. Units such as the 9 to 9 contact centre.Web that provides real-time information to customers and is responsible for customer relationship management. the Operations department interfaces between the clients and the agents. scalable and highly available platform for deployment of business application.
channel support. 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. The Direct marketing team was set up to generate high quality leads for profitable business. The Brand and Communications team is in charge of advertising. This includes driving the budgeting process. providing strategic inputs for decision-making and management reporting and analysis. Compliance ensures that every action is within the regulatory framework. direct marketing and corporate communications. . telemarketing and innovative direct mailers.brand and media management. Finance Finance function in ICICI Prudential is committed to create an infrastructure that is aligned to shareholder expectations. information security assessment and business continuity assessment. The Accounts function includes preparation and maintenance of financial records. Belgaum. Finance basically comprises of four functions. The team achieves this through target database acquisition and communicating customized product information through e-mailers. Channel marketing provides support to the sales force by streamlining the design and development of collaterals and sales tools across distribution channels. Corporate Planning and MIS provide feedback on business strategies. Internal audit provides assurance to the management over the organizations' control framework and includes process risk management. consumer research. funds management.Marketing The Marketing function at ICICI Pru covers an array of activities . Human Resource Visvesvaraya Technological University. This includes reviewing compliance requirements and supporting the ethical framework of ICICI Pru life. and expense processing and treasury operations. -25- . ‘Jnana Sangama’ PG Centre.
Belgaum. compensation system and a segmented training architecture enable it to deliver value to the organization. The team is also driving the Malcolm Baldrige framework across the organization. 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. With its initial focus on operational excellence to deliver benefits and services to staff members. means the distribution of insurance products through a bank’s distribution channels. ‘Jnana Sangama’ PG Centre. For example. an intervention that examines management of key inputs for Business Excellence. HR is now committed to building capability through state of the art processes.The people strategy of ICICI Prudential is “To build a committed team with a culture of innovation. The Human Resource Function at ICICI Prudential drives the people strategy of the business. ICICI Prudential is the first organization in the Insurance Industry that has adopted the Six Sigma Methodology for process efficiency and measurement. Visvesvaraya Technological University. -26- . learning and growth. Bancassurance accounted for 24% of new life insurance sales by ‘weighted’ premium income in Singapore in 2002. A robust performance management system. 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.with 12 in the life insurance sector and 8 in the non-life sector. In other words. Bancassurance is a service which can fulfill both banking and insurance needs at the same time. Bancassurance has also seen significant rise in other Asian markets. Business Excellence The Business Excellence function is committed to building a quality mindset across the organization. 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 .
while insurers have the choice to tie-up with any number of banks. For example. Legislative differences. consumer behavior. 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. unexplored and uncharted expanse. -27- . one bank can tie-up with only one life and one non-life insurer. At this stage. the application form is received by COPS. In terms of the present regulatory framework.Although the concept of Bancassurance looks simple enough. in France and Spain 60% to 80% of life insurance products are sold through bank branches compared to 10% in UK and USA. it is but natural for them to withhold from making any long term commitment. it is far from that in real life practice. product complexity. employee work culture and many such other factors have contributed to significant differences in results across countries. which would be quite costly if the Bancassurance business runs into trouble. which in a way is quite a prudent decision. ‘Jnana Sangama’ PG Centre. Belgaum. 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. impact of history and culture. As banks are quite risk averse. being a vast. but it is pending for issuance due to further Visvesvaraya Technological University. The Indian Bancassurance scene as of now looks as promising as perilous.
2) Login A proposal which is complete i. -28- . ‘Jnana Sangama’ PG Centre. 8) Freelook Post issuance of the policy. This period of 15 days is called Freelook Period. it amounts to cancellation of the policy.clarifications required from the customer.e. Visvesvaraya Technological University. the policyholder has the option to turn down the policy within 15 days from the date of issuance.. Belgaum. 7) Lapse A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy. 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. duly filled with all necessary documents attached to it & accepted by the Branch ops. 5) Decline Status When a customer refuses to take a policy post login but before Issuance is called a Decline 6) Cancellation When the cheque given by the customer bounces. 9) Surrender: When a customer wants to discontinue with the policy.
T ej i tsr n t s h on te gh Ap w rfu jo t v n rep rtn rs ipw e c c rry ga s t o o e l in e tu a e h ith a h a in e f c m le e tin e c o e o p m n g a h th rs s n th tre g s B n s n th ra d tre g R p ta n e u tio In s c re fra tru tu C s m rb s u to e a e M rk t In o a rs a e n v to In u n e s ra c e p rtis xe e IC I IC P U E T L R D N IA P dc ro u t D trib tio is u n L c l k o le g oa nw de O e tio s p ra n 2. ‘Jnana Sangama’ PG Centre. Belgaum.4 PRODUCT/SERVICES PROFILE Visvesvaraya Technological University. -29- .
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. Advisors can offer a complete range of products – Savings plans. The size of the death benefit is linked to the Visvesvaraya Technological University. innovative products. finally. 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. -30- . A strong brand certainly boosts sale. 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. Policy-holders are required to pay a one-time premium based on a target sum assured. Belgaum. the policy-holder gets the sum assured and guaranteed additions that work out to a compound return of 4. a product that is a mix of a cumulative investment scheme and an insurance product. pioneering the concept of ‘riders’ and soon after introduce comprehensive market-linked and retirement plans. standard products such as money-back and endowment policies. even the best brand would not last long. It has thus built a flexible portfolio of products that can be customized to cater to varying needs of people at each stage. but without customer-friendly. and. ‘Jnana Sangama’ PG Centre. Market-linked plans. and Retirement plans – and tailor a flexible solution to meet customers’ changing needs at every stage of life. 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. In fact. Protection plans. 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. and thus ensure protection in every step of life.5 per cent the sum assured. ICICI Prudential was the first to un-bundle product benefits. Child plans.ICICI Prudential’s ultimate promise is financial security. At maturity.
‘Jnana Sangama’ PG Centre. Belgaum. Life Guard. One of them involves a one-time premium for which there are no maturity benefits. to create a customized solution for each policyholder. • LifeTime and LifeTime II offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Visvesvaraya Technological University. Protector. On maturity date. Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative. Each offer 4 fund options –Preserver. expenses for a child’s higher education or purchase of an asset. feature-packed savings plan that offers 3 levels of protection as well as liquidity options. • Save ‘n’ Protect is a traditional endowment savings plan that offers life protection along with adequate returns • CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child’s marriage. Life Guard offers absolutely no investment-related return and is suitable for individuals looking for an unadulterated insurance package. customer-centric products that meet the needs of customers at every life stage. • Cash Plus is a transparent. The other requires regular premium payments that are returned at the end of the policy. Life Guard policies: The company offers two pure life insurance products that have an umbrella name. -31- .number of years left for the policy to expire. the maturity value is also paid in addition to the death benefits that would have been paid earlier. Savings Solutions • Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of protection. Balancer and Maximiser. Its products can be enhanced with up to 5 riders. • 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.
• HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner. -32- . Child Plans • SmartKid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. which offers life cover at very low cost. • InvestShield Life is a Unit Linked plan that provides capital guarantee on the invested premiums and declared bonus interest. Retirement Solutions Visvesvaraya Technological University. The policy is designed to provide money at important milestones in the child’s life.• Premier Life is a limited premium paying plan that offers customers life insurance cover till age of 75. It is available in 3 options –level term assurance with return of premium and single premium. • 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. • InvestShield Cash is a Unit Linked plan that provides capital guarantee on the invested premiums and declares bonus interest along with flexible liquidity options. Belgaum. Protection Solutions • LifeGuard is a protection plan. SmartKid plans are also available in unit-linked form – both single premium and regular premium. ‘Jnana Sangama’ PG Centre.
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. 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. LifeLink Pension II is single premium market linked pension plan. ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. Belgaum. -33- . Market-linked retirement products LifeTime Pension II is a regular premium market-linked pension plan. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. irrespective of the actual medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover • Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.000 u/s 80C. ‘Jnana Sangama’ PG Centre.• • • • • • • 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. with flexibility in both the accumulation and payout stages. Visvesvaraya Technological University.
Accident Benefit: This rider option pays the sum assured under the rider on death due to accident. Income Benefit: This rider pays the 10% of the sum assured to the nominee every year. Benefits are payable to the insured for medical expenses prior to death 4. 2. -34- . the beneficiary receives an additional amount equal to the rider sum assured under the policy. depending on the specific needs of the customer. Belgaum. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death. Accident and disability benefit: If death occurs as the result of an accident during the term of the policy. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. ‘Jnana Sangama’ PG Centre. 5. If the death occurs while traveling in an authorized mass transport vehicle. the premiums are waived till maturity. till maturity. SecurePlus. 1. This rider is available with SecurePlus and CashPlus. in the event of the death of the life assured. the beneficiary will be entitled to twice the sum assured as additional benefit. Waiver of Premium: In case of total and permanent disability due to an accident. 3. 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. Flexible Rider Options ICICI Pru Life offers flexible riders. Visvesvaraya Technological University.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. which can be added to the basic policy at a marginal cost. It is available in SmartKid. and CashPlus. Critical Illness Benefit: Protects the insured against financial loss in the event of 9 specified critical illnesses.
OF.DATA ANALYSIS AND INTERPRETATION 1. Belgaum.45 Above 45 TOTAL NO. ‘Jnana Sangama’ PG Centre. Age of the respondents PARTICTULARS Less than 25 25 .35 35 .RESPONDENT 11 40 20 29 100 PERCENTAGE 11% 40% 20% 29% 100 Visvesvaraya Technological University. -35- .
29% of the respondents are more than 45 years of age.35 35 . -36- . PARTICUALR Graduate Post Graduate Diploma Other discipline TOTAL NO.OF. 20% of the respondents are between 35 and 45 years of age.OF. 40% of the respondents are between 25 and 35 years of age.RESPONDENT 52 29 8 11 100 PERCENTAGE 52% 29% 8% 11% 100% Visvesvaraya Technological University.Age of the Respondents NO.45 than 25 Above 45 TOTAL PERCENTAGE ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) 11% of the respondents are less than 25 years old.RESPONDENT 100 80 60 40 20 0 Less 25 . ‘Jnana Sangama’ PG Centre. Belgaum. 2. Qualification of the respondents.
R ESPO D T N EN PER EN AG C T E Post G raduate T AL OT D iplom a ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) 52% of the respondents were graduate 29% of the respondents were post graduate 8% of the respondents were diploma 10% of the respondents were other discipline 3) Occupation of the respondents PARTICULARS Business man Professionals Job holders Others TOTAL NO. ‘Jnana Sangama’ PG Centre.OF. Belgaum. -37- .RESPONDENT 34 18 37 11 100 PERCENTAGE 34% 18% 37% 11% 100% Visvesvaraya Technological University.Q ualification of the Respondents Graduate Other discipline 100 80 60 40 20 0 N O.OF.
OF. 4) Average annual income of respondents.RESPONDENT 33 43 20 4 100 PERCENTAGE 33% 43% 20% 4% 100% Visvesvaraya Technological University. ‘Jnana Sangama’ PG Centre.3 lakh 3 lakh . 18% of the respondents are professionals. 37% of the respondents are job holders. 11% of the respondents are background. -38- . PARTICULARS Up to 1 lakh 1 lakh .OF.Occupation of the Respondents Business man Others 100 80 60 40 20 0 NO.5 lakh 5 lakh & above TOTAL NO. Belgaum.RESPONDENT Professionals TOTAL Job holders ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) 34% of the respondents are businessmen.
3 lakh 3 lakh .RESPONDENT 50 32 28 100 PERCENTAGE 50% 32% 28% 100% Visvesvaraya Technological University. Belgaum.OF.RESPONDENT ANALYSIS: From the survey it was found that amongst 100 respondents a) 33% of the respondents have an average annual income up to 1 lakh b) 43% of the respondents have an average annual income from 1 lakh to 3 lakh c) 20% of the respondents have an average annual income from 3 lakh to 5 lakh d) 4% of the respondents have an average annual income above 5 lakh 5) Family size of respondents PARTICULARS Below 5 members 5 .OF.10 members Above 10 members TOTAL NO. ‘Jnana Sangama’ PG Centre. 100 80 Up to 1 lakh 1 lakh .5 lakh 5 lakh & above TOTAL 60 40 20 0 NO. -39- .Average annual income of respondents.
RESPONDENT 10 3 4 3 80 100 PERCENTAGE 10% 3% 4% 3% 80% Visvesvaraya Technological University.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. -40- .OF. b) 32% of the respondents are between 5 to 10 members. c) 28% of the respondents are above 10 members. Belgaum.FAMILY SIZE 28% 50% below 5 members 5. 6) According to life insurance is. ‘Jnana Sangama’ PG Centre. PARTICULARS Risk Coverage Tax Savings Good return Security All the above TOTAL NO.
3% of the respondents say financial security. 3% of the respondents say tax savings.Life Insurance is Risk Coverage Security 100 80 60 40 20 0 NO. 80% of the respondents say all of the above. ‘Jnana Sangama’ PG Centre. 7) Awareness of ICICI Prudential life insurance PARTICULARS Yes No TOTAL NO. -41- . Belgaum.RESPONDENT Tax Savings All the above Good return TOTAL ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) e) 10% of the respondents say risk coverage. 4% of the respondents say good returns.RESPONDENT 17 83 100 PERCENTAGE 17% 83% 100% Visvesvaraya Technological University.OF.OF.
RESPONDENT 2 98 100 PERCENTAGE 2% 98% 100% Visvesvaraya Technological University. Belgaum.OF.RESPONDENT No TOTAL ANALYSIS: From the survey it was found that amongst 100 respondents a) 83% of the respondents say that they are aware of ICICI Prudential life insurance co. -42- . PARTICULARS Yes No TOTAL NO.Awareness of ICICI Pru Yes 100 80 60 40 20 0 NO. b) 17% of the say that they are unaware of ICICI Prudential life insurance co 8) Awareness regarding insurance.OF. ‘Jnana Sangama’ PG Centre.
9) % of respondents who are under different plans of ICICI Prudential life insurance co. Belgaum.RESPONDENT PERCENTAGE 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.RESPONDENT 41 36 8 15 No 100 PERCENTAGE 41% 36% 8% 15% No 100% Visvesvaraya Technological University.INSURANCE AWARENESS 100 90 80 70 60 50 40 30 20 10 0 NO. -43- .OF. PARTICULARS Invest gain plan Unit gain plan Child gain plan Whole life plan Pension plan TOTAL NO.OF. ‘Jnana Sangama’ PG Centre. b) Only 2% are unaware of insurance.
Belgaum.OF.INSURANCE PLANS OF ICICI PRUDENTIAL 15% 8% 41% Invest gain plan Unit gain plan Child gain plan Whole life plan Pension plan 36% ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) e) 41% of the respondents are under invest gain plan 36% of the respondents are under unit gain plan 8% of the respondents are child gain plan 15% of the respondents are whole life plan No body under pension plan 10) % of respondents benefits of choosing the particular products NO. -44- .RESPONDENT 60 20 12 8 100 PERCENTAGE 60% 20% 12% 8% 100% PARTICULARS Risk coverage Additional benefit Maturity date Sum Assured TOTAL Visvesvaraya Technological University. ‘Jnana Sangama’ PG Centre.
-45- . ‘Jnana Sangama’ PG Centre. 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 NO.Benefits of Particular Products 100 90 80 70 60 50 40 30 20 10 0 Risk coverage Additional benefit Maturity date Sum Assured TOTAL 1 2 ANALYSIS: a) 36% of the respondents say that a benefit of choosing the particular Product is for Safety of life.RESPONDENT 35 20 19 14 12 100 PERCENTAGE 35% 20% 19% 14% 12% 100% PARTICUALRS Liquidity Lapsation Unable to decide premium High risk coverage Fixed Term TOTAL Visvesvaraya Technological University. Belgaum.OF.
d) 14% of the respondents say that disadvantages in insurance plan are high risk coverage at high premium.R S O D N O F E P N E T L p tio a sa n H h risk co e g ig v ra e T T L OA L u ity iq id U a le to d cid p m m nb e e re iu F d T rm ixe e ANALYSIS: From the survey it was found that amongst 100 respondents a) 35% of the respondents say that disadvantages in insurance plan are liquidity.OF.RESPONDENT 40 25 10 11 5 9 100 PERCENTAGE 40% 25% 10% 11% 5% 9% 100% PARTICUALRS Recurring Deposit Equity Fund Balanced Fund Mutual Fund Debt Fund Cash Fund TOTAL Visvesvaraya Technological University. -46- . c) 19% of the respondents say that disadvantages in insurance plan is unable decide premium. NO. b) 20% of the respondents say that disadvantages in insurance plan are lapsation.O .D advan is tages in Insurance P lans 10 0 8 0 6 0 4 0 2 0 0 N . ‘Jnana Sangama’ PG Centre. Belgaum. 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.
• • 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.INVESTMENT AVENUES 9% 40% R. Belgaum. ‘Jnana Sangama’ PG Centre.D Equity Balanced fund Mutual Fund 10% 25% Debt Fund Cash Fund 5% 11% ANALYSIS: From the survey it was found amongst 100 respondents a) b) c) d) e) f) 40% of respondents say that they want to invest in R. -47- .D 25% of respondents say that they want to invest in equity 10% of respondents say that they want to invest in balanced fund 11% of respondents say that they want to invest in mutual fund 5% of respondents say that they want to invest in debt market 9% of respondents say that they want to invest in cash FINDINGS On an analysis and evaluation of the data collected from the respondents the following findings were found.
All these positive stands of the company place at the number one position. About 10% of respondents have given invalid records. ltd is the largest in terms of FDI invested. About 10% of respondents interested for investment plan after knowing ICICI PRUDENTIAL LIFE INSURANCE products. ‘Jnana Sangama’ PG Centre. So in order to increase the no. RECOMMENDATIONS TO COMPANY: Since ICICI Prudential Life Insurance co.67% of respondents have already been covered by other insurance companies. About 12. D grade cities. of customer. ICICI Prudential has almost its branches in urban area or metros. • Open some more branches in semi urban and rural area. -48- . Since the customers think about the companies in the industry. in terms of no.• • • • • • Above 20% of respondents are shown interest for investment and financial plan About 33. can be used to increase the no. Belgaum. On second aspect whatever amount of money ICICI Prudential save. ICICI Prudential should increase the approach towards potential customers. of customers. when they invest money in the life insurance industry. which will helpful to increase the market share of the company. And the rural marketing is the best option for ICICI Prudential to increase its base in the market Visvesvaraya Technological University. About 10% of respondents are newly employed or trainees. So it’s necessary to increase the market share of the company. For that it has to increase the branches in the semi urban cities like C.33% of respondents are not interest to give their personal records. of policies. in terms of market share. There are some recommendations. in terms of work force.
‘Jnana Sangama’ PG Centre. In order to take the advantage of being industry leader in private sector. ICICI bank can offer a bank account with the life insurance policy in which an ATM card will be provided. Because they are the one who interact directly with the customers. Since after increment in FDI from 26% to 49% all player will have the opportunity to capture the market share. This will be mutually helpful for both sister companies. a good number of customers forget to pay their premium at time so it causes a big loss to the company. Being a market leader doesn’t ensure the leadership in the future. money value of the policy at that date. -49- . In the changed scenario.• Improve customer services. According to my experience in the company. This will help the customer to pay premium on time and save their losses. which will give a competitive advantage to the ICICI Prudential against its competitors. ICICI bank will get new account and ICICI prudential will be able to more efficient services to their customers. more efficient training will be needed. So good training will give them the right way to deal with the potential customers. ICICI Prudential has already collaborated with the ICICI bank for its Bancassurance facility and then can include another feature in it. Belgaum. So in order to maintain its position ICICI Prudential should -Introduce some new market linked insurance plan. payment made. Visvesvaraya Technological University. ICICI Prudential has to improve its customer services. value of the unit linked plan and all other information what the customer want. • Bring some unit linked life insurance plans in the market. so ICICI Prudential should provide good and efficient training to their financial advisors. • Trained the financial advisors more efficiently. This card will have all the information regarding the policy as like future premium payment dates.
IN Bangalore CITY”. _________________________________ Address _________________________________ _________________________________ _________________________________ -50- . conducting a marketing survey on “CONSUMER BEHAVIOUR AND CUSTOMER SATISFACTION of ICICI Prudential LIFE INSURANCE.QUESTIONNAIRE Dear Sir/Madam. Belgaum. Name 2. 3. 1. I request you to fill this questionnaire & I assure that this data will be used only for study purpose & it will be kept confidential. ‘Jnana Sangama’ PG Centre. Age Visvesvaraya Technological University. I am a student of Visvesvarya Technological University Belgaum.
a. A financial security for the family d. Belgaum. 25 – 35 4. Risk coverage e. Qualification a. Postgraduate 5. Your family size a. 35-45 d. -51- . According to you life insurance is. c. Graduate b. Less than 25 b. Unit gain plan Visvesvaraya Technological University. If yes 9. Which are in these? a. 45 and above c. ‘Jnana Sangama’ PG Centre. a. b. Above 10 members 7. Below 5 members b. Other discipline c. A saving scheme with good return c. Up to 1 lakh 1 lakh to 3 lakhs 3 lakhs to 5 lakhs 5 lakhs and more 7. c. 5 – 10 members c. d. Job holder d. Occupation Business b. Other What is your average annual income? a. Professional 6. A tax saving plan b. Diploma d. All the above Have you taken any life insurance product of ICICI Prudential Life insurance? YES NO 8. a.
e. ‘Jnana Sangama’ PG Centre. f. In which of the following would you like to invest? Equity fund Debt fund Balanced fund Cash fund Mutual fund Recurring deposits 13. 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.b. 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. Any suggestion for ICICI Prudential Life Insurance ______________________________________________________ ______________________________________________________ Thank you for sparing your valuable time Visvesvaraya Technological University. Invest gain plan Whole life plan Children plan Pension plan Others __________________ 10. Belgaum. d. c. -52- .
Consumer Behavior by Leon G. -53- . • IRDA Journal • ICICI Prudential Company magazines • Newspaper and Business magazines WEBSITES • www.Schiffman.com Visvesvaraya Technological University. ‘Jnana Sangama’ PG Centre. Prentice-Hall India 8th ed. Pearson Education 2nd ed. Belgaum.BIBLIOGRAPHY • • Marketing Management by Philip Kotler.iciciprulife.
Belgaum.org Visvesvaraya Technological University.irdaindia. ‘Jnana Sangama’ PG Centre.in/indian insurance industry www.co.• • www.google. -54- .