You are on page 1of 84


(Submitted in Partial Fulfillment for the Award of Degree Master of Business Administration) (M.B.A) Submitted by: Sandeep Sharma

Institute Of Management Studies (Kurukshetra University, Kurukshetra)

I express my sincere gratitude to ICICI Prudential Life Insurance and its entire staff for giving me this wonderful opportunity to work and get to know more about the Insurance industry and Insurance Agency Development.

With deep sense of gratitude I express my indebtedness to my mentor and guide

Mr. Satnam Singh (UM), ICICI Prudential Life Insurance, Panipat. He has
been a great source of inspiration. I thank him for his keen interest and valuable guidance. He was also kind to discuss the problems faced during the course of this project. I take this opportunity to thank Mr. Satnam Singh, (UM) who gave me this opportunity to do my project at this Organization.

(Sandeep Sharma)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Acknowledgement Executive Summary Project Objective Introduction Introduction to Study Undertaken Statement of objective Research Methodology Analysis And Interpretation Conclusion & Finding Recommendation Limitation Annexure Bibliography


ICICI Prudential Life Insurance co. ltd is the #1 private life insurers in the world. The project was undertaken to study the dynamics of insurance agency development and need of life insurance in human life. The study of ICICI Prudential life group is undertaken to understand the services provided by ICICI Prudential to their customers as well as the insurance advisors recruitment process adopted by ICICI Prudential Life Insurance Company. The project was studied to know how ICICI Prudential life is promoting their insurance advisors in the field helping them to bring more and more business by the means of handsome commission structure, renewal

commissions, rewards, trophies and certificate, honoring them in front of other insurance advisors. ICICI Prudential also provides other future prospects to their advisors. This all not only increases the efficiency of the winners but also of those who have under performed. Through this process ICICI Prudential also win customers by strong commitment to life insurance advisors.


Insurance is the outcome of man's search for security and for finding out ways and means of ameliorating the evil consequence of sudden calamities. Insurance is a co-operative venture whereby risks and many shares lose. The modern setup of industrialization has rendered man and his property most vunerable to different types of risks and uncertainties. Death, unemployment and sickness are constantly staring the face of man and also his properties are exposed to risks, which may arise, from fire, water, accident, wind-storm, earth quakes and floods etc. The total annual losses to humanity from untimely death and to businessman from risks are too much to be calculated. Thus, arise the need of insurance in a planned way whereby the above risks are minimized as explained above with the growth of industrialization and rapid increase in the number of situations in which the human life and property get exposed to risks. Thus, the effective solution of reducing the burden of these risks has been devised by shifting these risks to agencies or persons calling to share them are known as insurance. Insurance is a 4 billion business in India and yet its spread in the country is relatively thin. Insurance as a concept has not been able to make headway in India. Presently LIC enjoys a monopoly in life insurance business while GIC enjoys it in general insurance business. There have been very little option before the consumer to decide the insurer. A successful or IRA BILL has cleared the way of private operators in collaboration with their overseas partner. It is likely to bring in a more professional and focused approach. Moreover the foreign players

would bring sophisticated techniques with then. It is very important that trained professional who are able to communicate specific features of the policy should sell the policy.

Definition General Definition

In the words of John Magee, "Insurance is a plan by which large number of people associated themselves and transfer to the shareholders of all, risk that attach to individuals." Fundamental Definition: In the words of D.S. Hansell, "Insurance may be defined as a social devices providing financial compensation for the efforts of misfortune, the payment being made from the accumulated contributions of all parties participating in the scheme."

Characteristics of Insurance
Sharing of risks Cooperative devices Evaluation of risks Payment on happening of a special event The amount of payment depends on the nature of losses incurred

Opening Up Of Insurance Sector

Indian History: Time to turn the clock back-and open up insurance For two years, around 30 foreign insurance have eagerly explored the nationalized Indian Insurance market, preparing to leap in when private

participation is allowed. But it seems that they have an endless wait before the sector is opened up. That's ironical: in 1947, many of these insurance were firmly established here. BAT subsidiary eagle star, for example, opened offices in Calcutta in 1894. By 1921, it was doing business with Brooke Bond and Birlas. Prudential first Asia office was opened in India in 1923. Fifty years ago, India has busting, if somewhat chaotic, entirely private insurance industry. The year after independence, 209 life insurance companies were doing business worth Rs. 712.76 crores. General insurance had its turn in 1972, when 107 insurers were amalgamated into four companies headquartered in the four metros, with GIC as a holding company. Nationalization has brought some benefits. Today 48% of LIC new business is rural. Net premium in general insurance grew from Rs. 222 crores in1973 to Rs. 5,956 crores in 1995-1996. Marketplace in 21st Century An in depth analysis of demographic factor that will effect the life health insurance industry in the next century, has uncovered trends that show increasing diversity that adds to challenges and opportunities. Coning & Company, which did the study, said that success in the marketing of products would come to those insurers that become creative in capturing a wider range of customers by using multiple distribution channels. The diversity uncovered by the coming study includes the aging population, increasing household income inequality and social fragmentation.

Challenges/opportunities The study, "21st century demographic for the life health industry, "delineates the following and opportunities: Population around the world is aging; number of people in his old age is growing continuously. As the population ages products such as annuities, IRAS and defined contribution retirement plans have enormous growth potential. The changing composition of households from traditional family units to single households also presents untapped market with real needs of life health and retirement products. Growing income inequality means that insurance should find ways to markets their services cost-effectively to all economic sector, particularly middle class. Insurance must recognize that small business now make up a growing portion of the world economy, presenting a huge opportunity for growth in this market. Governments Role Governments are keen to reduce the dependency on the state via private pension provision. They have a choice between using compulsion and incentives. Most of the governments choose the latter method. Tax relief is granted to the pensions plans and is extremely generous, reflecting the value that the govt. and the society at a large place on the provision or retirement benefit. Tax treatment of the benefit varies by countries. In India, the proceeds of the gratuity and provident fund are tax free in the hands as tax free lump sum and remainder as taxable income. Benefit due on withdrawal from schemes are generally taxed unless they are transferred to another scheme.

Collaboration of Indian Companies with Foreign Companies

S.No partnership Indian Companies Foreign

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

Kotak Mahindra Tata Group Sundram Finance Sanmar Group Spic ILFS Alpic Finance 20th Century Vysya Bank Cholmandalam SBI HDFC ICICI Hindustan Times IDBI Max India

Chubb AIG Winterthur GIO of Australia Metlife Cigna Allianz Canada Life ING Axa Alliance Capital Standard Life prudential plc Commercial union Principal New Yark Life

PHILISOPHY To provide protection to individuals at various life stages: Young individuals, Married Couples with Children's, Matured Couples. To provide solutions in various categories. Life Insurance Health Protection Whole-Life Plans Child Solutions Retirement Planning


ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential Plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Bank has 74% stake in the company, and Prudential plc has 26%. 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 YOU. Riding on the success of this relationship, the two companies joined hands once more in 2000, to form ICICI Prudential Life Insurance, with a commitment to provide leading-edge life insurance solutions. ICICI Prudential has recruited and trained over 60,000 insurance advisors to interface with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers. The company has network with 12 bancassurance tie-ups, having agreements with ICICI Bank, as well as some corporate agents. It has also tied up with organisations like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society. Today the company is the No.1 private life insurer in the country.

To be the dominant Life and pension player Built on trust by the world class people And services

1. Integrity Walk the talk: live the values Stand up honestly and fearlessly for what I truly care about Customer first Own the customer: deliver the promise Listen actively, stretch continually to add values to customers and channel partners 2. Boundary less Never say its my job go beyond the call of duty Experiment believe anything is possible 3. Ownership Own mistake. Learn from failure Confront hard facts, pursue goals relentlessly 4. Passion Winning instincts-transmit boundless energy and enthusiasm to drive results Demonstrate speed for competitive advantage

Progress so far
No. 1 private life insurer in the country Equity based stands at Rs. 925 crore The company issued nearly 4,50,000 policies in a year, taking a total policy to cover 7,80,000 Total sum assured since inception has risen to16,000 crore The companys total income received premium income in FY04 was Rs. 989 crore, up 135% from last year ICICI Prudential has emerged as the leading private life insurer, closing the year 31, 2004 with retail market share amongst private life insurer of36% Over 60,000 insurance advisors Over 150 years of experience in life insurance business Leading international financial services company in UK Around US $276 Billions funds under management, and more than 16,000,000 customers worldwide Market share of 23% in the total pension market between all life insurer and 725-market share among private insurer Largest distribution network among private players 67 branches across 45 locations


COMMENCEMENT OF OPERATION: 19TH DECEMBER 2000 FIELD OF OPERATION: LIFE HOME ADDRESS: ICICI PRUDENTIAL LIFE INSURANCE COMPANY ICICI PRULIFE TOWERS, 1089, Appasaheb Marathe Marg, Prabhadevi, MUMBAI- 400025 CEO OF THE COMPANY: Ms. SHIKHA SHARMA MANAGEMENT: Board of Directors Mr. K.V. Kamath, Chairman Mr. Mark Norbom Mrs. Lalita D. Gupte Mrs. Kalpana Morparia Mrs. Chanda Kochhar Mr. Kevin Holmgren Mr. M.P. Modi Mr. R Narayanan Ms. Shikha Sharma, Managing Director Management Team

Ms. Shikha Sharma, Managing Director Mr. Sandeep Batra, Chief Financial Officer & Company Secretary

Mr. Shubhro J. Mitra, Chief - Human Resources Mr. Puneet Nanda, Head - Investments Ms. Anita Pai, Chief - Operations & Underwriting Mr. V. Rajagopalan, Appointed Actuary Mr. Shridhar Sethuram, Chief - Sales & Marketing Mr. Anil Tikoo, Head - Information Technology


ICICI Prudential Life Insurance Company Limited (ICICI Pru)

- leading private life insurance company of India.




Incorporated on July 20, 2000 it is a 74:26, joint venture between ICICI and Prudential plc of U.K. In November 2000, ICICI Prudential Life Insurance was granted Certification of Registration for carrying out life insurance business by the Insurance Regulatory & Development Authority of India. The Company issued its first policy on December 12, 2000.

Year of review 2003-2004:

ICICI Prudential has consolidated its position as the leading private life insurer in India. ICICI Prudential's annualized premium grew more than three fold over the previous year. Continuing with its 'Customer First' philosophy, ICICI Prudential has significantly expanded its presence to 29 operational Branches (2001-2002: 16), with the Advisor. Force growing to over 18,000. Its has also strengthened its Alternate Distribution channels, i.e. Banc assurance, Corporate Agents and Direct Marketing, making purchase of insurance more accessible. Banc assurance and Direct Marketing channels have contributed to over 18% of the Annualized Premium. ICICI Prudential was amongst the first to identify the emerging opportunity in the Pension segment and launched two linked pension products- Lifetime Pension and Life Link Pension, which have been well received in the market

ICICI Bank, Federal Bank, Bank of India, South Indian Bank, Lord Krishna Bank, Goa State Co-operative Bank, Indoor Paraspar Sahakari Bank, Manipal State Co-operative Bank, Jalgaon People's Co-operative Bank, Shamrao Vithal Co-operative Bank, Punjab & Maharashtra Co-operative Bank.


ICICI Bank (NYSE:IBN) is India's second-largest bank with total assets of about Rs.125,229 crore and a network of over 450 branches and offices and about 1790 ATMs. ICICI 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 specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is the only Indian company to be rated above the country rating by the international rating agency Moody's and the only Indian company to be awarded an investment grade international credit rating. The Bank enjoys the highest AAA (or equivalent) rating from all leading Indian rating agencies. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI was formed in 1955 at the initiative of the World Bank, the Government of

India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long -term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single equity. EQUITY SHAREHOLDINGS ICICI Bank's equity shares are listed in India on stock exchanges at Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

Prudential plc
Established in 1848, Prudential plc is a leading international financial services company in the UK, with around US$250 billion funds under management, and more than 16 million customers worldwide. Prudential has championed customer-centric products and services, supported by over 60,000 staff and agents across the region

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. M&G was acquired by Prudential in 1999 and is the Group's UK and European fund manager, responsible for managing over 112 billion of funds (as at 31 March 2004). Launched by Prudential in 1998, Egg is an innovative financial services company, with over 2.5 million customers with a market share of nearly 5% of UK credit card balances. In Asia, Prudential is UK's largest life insurance company with a vast network of 23 life & fund management operations in 12 countries serving 4 million customers- China, Hong Kong, India, Japan, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand & Vietnam. In the US, Prudential owns Jackson National Life, a leading life ins. company & has more than 1.5 million policies and contracts in force. Commitment & Aim According to them- our commitment to the shareholders who own Prudential is to maximise the value over time of their investment. We do this by investing for the long term to develop and bring out the best in our people and our businesses to produce superior products and services, and hence superior financial returns. Our aim is to deliver top quartile performance among our international peer group in terms of total shareholder returns. At Prudential our aim is lasting relationships with our customers and policyholders, through products and services that offer value for money and security. We also seek to enhance our Company's reputation, built over 150 years, for integrity and for acting responsibly within society.

ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 74 cities and towns in India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Anand, Aurangabad, Bangalore, Bareilly, Bharuch, Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun, Durgapur, Faridabad, Goa, Guntur, Guwhati, Gurgaon, Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mehsana, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Saharanpur, Salem, Shimla, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vapi, Vashi,

Vijayawada and Vizag. The company has seven banc assurance tie-ups, having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some co-operative banks, as well as over 150 corporate agents and brokers. It has also tied up with NGOs, MFIs and corporates for the distribution of rural policies and organizations like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers.

ICICI Bank is Indias second-largest bank with total assets of about Rs.112, 024 crore and a network of about 450 branches and offices and about 1750 ATMs. It 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 and affiliates in the areas of investment banking, life and non-life insurance, venture capital, asset management and information technology. ICICI Bank posted a net profit of Rs.1,637 crore for the year ended March 31, 2004.ICICI Banks equity shares are listed in India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policyholder and unit holders worldwide. As of June 30, 2004, 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 the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

Established in 1848, prudential plc is a leading international financial services company in the UK, with around US$250 billion funds under management and more than 16 million customers worldwide. 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 22 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923, Prudential has championed customer-centric products and services, supported by over 60,000 staff and agents across the region.


Protection Plans Saving Plans Investment Plans Children Plans Health Plans Rural Plans

Group Plans Retirement Solutions Keyman Insurances Riders

Some famous products offered by ICICI Prulife

Savenprotect ICICI Prudential life insurance co. ltd., Indias no. 1 private life insurance company, offers you savenprotect-an ideal plan for those who want to accumulate funds on regular basis while enjoying insurance protection. Life Guard Level term assurance under this plan, in case of death of the life assured during the term, the Sum Assured will be paid to the beneficiary. There are no maturity benefits. Hence on survival till maturity, the policy will terminate. You will need to pay the regular annual premium, for the term choosen. You will be provided with life cover equal to the Sum Assured. INVESTSHIELD LIFE You have already set out your financial goals for the future. However, lifes uncertainties make cause you to change them over a period of time. While the need to protect your family and your capital in your priority, you also want to earn enough on your investment, so as to meet your wealth creation requirement.

At ICICI Prudential, we constantly strive to understand your needs and provide solutions that help you plan your future better. In keeping with that endeavour, we present INVESTSHIELD LIFE, a regular premium unit linked plan with capital guarantee. INVESTSHIELD PENSION When it comes to retirement, you think you will manage just fine. Are you making enough investments and savings towards that end? Ordinary savings can get frittered away due to unforeseen expenses. Besides, even when you retired, you would still like to continue doing the things you have always enjoyed such as eating out, taking a holyday, buying gifts for loved ones, pursuing your hobby, taking your grand children on outings, etc. after all, you would like to retire from work, not life. SMART KID To bring your dreams to life, you need an investment that is designed to provide adequate money for key educational milestones in your childs life, No matter what happens. Thats why, we now present SMART KID REGULAR premium plan. This is a regular premium; traditional plan with two options to receive guaranteed educational benefits, no matter what the uncertainties in your life.

HEALTH ASSURE PLAN A long-term critical illness plan-health assure covers you for a long term. It guarantees to pay the benefits amount on diagnosis of the specified critical illness. This is a comprehensive critical illness plan, which can take care of direct medical expenses as well as other indirect expenses, arising during the treatment. On diagnosis of a specified critical illness, you can claim the benefits under this plan through a simple claim procedure. CANCER CARE CANCER CARE plan keeps you financially prepared, so that you can focus on getting better without worrying about the money. Through its extensive coverage of both early and advanced cancer, the plan provides the necessary financial resources so that you get the best possible medical treatment as early as possible, and maximize your chances of survival.


Recruitment of qualify & Persuasive insurance advisors Further guidance Team support Smart Research work Promotional opportunities Recruitment of Life Insurance Advisors ICICI Prudential is registered with the insurance regulatory & development authority under the insurance act, 1938 (4 of 1938) (hereinafter referred to as theact) as a life insurer, and accordingly is engaged in the business of life insurance. ICICI Prudential is desirous of appointing the insurance advisors as its insurance advisor for soliciting and procuring life insurance business for and on behalf of ICICI Prudential, and to provide various services to the customers and policyholders. The insurance advisors holds /shall obtain an insurance license (as defined in the agreement hereinafter) to act as an insurance agent as provided by section 42 of the insurance act, 1938 and is desirous of being appointed as an insurance advisor of ICICI Prudential.




Who can be a Life Insurance Advisor

Businessman House Wife VRS Optee General Insurance Agent Teacher/Lecturer Bond/Mutual fund/Postal Agent Income Tax Officer/Advisor Accountant/ Share Broker

Legal Advisor/Political Agent Students etc.

Why to become an ICICI Prudential Life Insurance Advisor?

Work from home or office No prior selling skills required Personals skills are enhanced by world class training Foreign trips, Star Club Memberships, Consumer goods, Gold coins, Reward items

What advisors get from ICICI Prudential Life?

No.1 private life insurance company 1st private life insurance company to have more than 10 lac customers Strong brand recognition World class products and services Career progression within the company Unlimited earning potential


Handsome Commissions Renewal Commissions Identification License to Sell insurance products Zero Balance account in concerned bank Growth Opportunities Participations in contests Company infrastructure facilities Team support

Payments & Benefits-Commission Structure

Year 1 Number of policies sold Average premium Rs. Total premium earned Rs. Average commission including bonuses estimate @22.5% Earning from new business Rs. 50 16000 800000 180000 180000 Year 2 75 16000 1200000 270000 270000 Year 3 100 16000 1600000 360000 360000

Commission on renewal premium @6% For year 2, 3 & 3% after that Earning from renewal business Rs. Total earning Rs. 180000


72000 48000

48000 318000

120000 480000

* Depending on the product mix commission can go upto 35% in the 1 st year, 7.5% in the 2nd & 3rd year & 5% 4th year onwards.

Some of Our High Performers Get.

Year 1 Number of policies sold Average premium Rs. Total premium earned Rs. Average commission including bonuses estimate @22.5% Earning from new business Rs. Commission on renewal premium @6% Earning from renewal business Rs. Total earning Rs. 450000 100 20000 2000000 450000 450000

Year 2 150 20000 3000000 675000 675000 120000 120000 795000

Year 3 200 20000 4000000 900000 900000 180000 120000 300000 1200000

* Depending on the product mix commission can go upto 35% in the 1 st year, 7.5% in the 2nd & 3rd year & 5% 4th year onwards.

ICICI PRU Star Club Benefits No. of Points

With Spouse

people Platinum Star 25 1500 Diamond Star 25 1000 Gold Star 50 750 Lapel pins Letter Silver Star 50 600 heads Bronze Star 75 500 Visiting cards for Total participants 225 all Plus free accidental insurance for all of Rs. 10 lakhs

Career opportunities for ICICI Prulifes Advisors

Agency champion Through this program we take your business to the next level by giving you

the opportunity to increase your reach and earnings potentials. Presenting the opportunities to become our agency champion. Pinnacle Program Pinnacle program is a meticulously designed program for career progression of Advisor as UNIT MANAGER. A full time career resulting in increased monetary benefits and better growth prospects. Subsequently you have the opportunity where you get promoted to a agency manager with an earning potential of Rs. 10 lacs p.a. with an eligibility for ICICI Prustar membership, overses conventions. Management development programs and others such additional benefits. FAST TRACK PINNACLE PROGRAM A Full Time Career As A Unit Manager Growth within ICICI Prudential Greater earning potential Personal Development Perfomance Criteria Age 25-45 years At least 6 months in system 30 issuances within 6 months

Tiger team A team handpicked with an aim to stave off competition with earnestness, excellence and exuberance. The tiger team is a select cadre of performers

belonging to the different levels, leading upto the management level in the organizations. Assimilating to the strength of its members, tiger team explores the scope for enhanced learning and development from within and without, giving you the dual advantage of career progression and self development. Currently the organization has enrolled more than 65 aggressive Tiger Trainers (on rolls) and 307 part time mobile tigers.

MDRT ProgramAnother big program named as MILLION DOLLAR ROUND TABLE is also there under which high performers get an opportunity to go abroad on the behalf of the company. They represent their organization among the international players.

Support and training

At ICICI Prudential Life Insurance Co. Ltd., training is an intrinsic element of our support system for our new advisors. Below are details of a few of our training initiatives:

Foundation program: Independent of your work experience, the foundation program will perfect your knowledge about the insurance industry; equip you

with excellent selling skills along with a comprehensive knowledge about our products. Instant recognition: Your achievements in the first three months of business will be well acknowledged with our SPRINT and RACE awards. These are trophies accompanied by a certificate and point rewards given to you for getting off to a flying start. Business development clinic: After one month of the field experience, this programme will give practical insights on objection handling and generate ideas to get new customers and big premium policies. Advance training programs: Once you are accustomed to the life insurance industry, the company will continuously upgrade your capabilities and knowledge through sophisticated training programs on financial products and markets. These advanced selling skills seminars will assist you in planning for high net worth customers and building your business through relationship management.



Unless the context otherwise requires

i. Act means the Insurance Act, 1938 and includes any amendment thereto or enactment thereunder; ii. Agent or Insurance Agent means an agent licensed under Section 42 of the Insurance Act 1938 (as amended) and appointed by the Company and shall have the meaning set out in Regulations framed by the Insurance Regulatory and Development Authority from time to time; iii. Authority or the IRDA means the Insurance Regulatory and Development Authority constituted under section 3 of the IRDA Act 1999; iv. Company means ICICI PRULIFE Insurance Company Limited; v. Insurance Advisor means and includes an Agent. 2. CODE OF CONDUCT: Every person who is appointed as Insurance Advisor by the Company and who holds a licence under Section 42 of the Act, shall adhere to the model code of conduct as specified below:I. EVERY INSURANCE ADVISOR SHALL;

(a) Identify himself and ICICI PRULIFE Insurance Company Limited, of whom he is an insurance agent to all the prospects; (b) Disclose his licence to the prospect if so demanded; (c) Disseminate the requisite information in respect of insurance products offered for sale by his insurer and take into account the needs of the prospect while recommending a specific insurance plan;

(d) Disclose the scales of commission in respect of the insurance product offered for sale, if asked by the prospect; (e) Indicate the premium to be charged by the insurer for the insurance product offered for sale; (f) Explain to the prospect the nature of information required in the proposal form by the insurer, and also the importance of disclosure of material information in the purchase of an insurance contract and shall never persuade or encourage any prospect not to divulge or disclose any information which is relevant to the insurer for the purpose of underwriter; (g) Bring to the notice of the insurer any adverse habits or income inconsistency of the prospect, in the form of a report (called Insurance Agents Confidential Report) along with every proposal submitted to the insurer, and any material fact that may adversely affect the underwriting decision of the insurer as regards acceptance of the proposal, by making all reasonable enquiries about the prospect; (h) Obtain the requisite documents at the time of filing the proposal form with the insurer; and other documents subsequently asked for by the insurer for completion of the proposal; (i) Inform promptly the prospect about the acceptance or rejection of the proposal by the insurer; (j) Advise every individual policyholder to effect nomination or assignment or change of address or exercise of options, as the case may be, and offer necessary assistance in this behalf, wherever necessary;

(k) The Insurance Advisor may receive cheques or Demand Drafts from the policyholders towards payment of premium. However, in such a situation, he will ensure that the cheques received are not back dated and the cheque/ demand draft are deposited with the Company within the grace period. (l) The Insurance Advisor is not authorized and shall not be entitled anytime to collect premium from the policyholders in cash and shall be under obligation to disclose the prospect / policyholder that the payment towards premium charges shall be accepted by the Company by way of crossed cheques or demand drafts only. The Insurance Advisor further shall inform and encourage the policyholder to write his/her policy number on the back side of the instrument paying the premium charges. (m) Render necessary assistance to the policyholders or claimants or beneficiaries in complying with the requirements for settlement of claims by the insurer; (n) Every Insurance Advisor shall maintain strict confidentiality of the information received from any prospect and / or the Company in the course of business. Confidential information is elucidated as follows: (i) The Insurance Advisor agrees that the Confidential Information is to be considered confidential and proprietary to the Company and the Insurance Advisor shall hold the same in confidence, shall not use the Confidential Information other than for the purposes of its business with the Company, and shall disclose it only to its officers, directors, or

employees with a specific need to know. The Insurance Advisor shall not disclose, publish or otherwise reveal any of the Confidential Information received from the Company and/or the prospect to any other party whatsoever except with the specific prior written authorization of the Company. (ii) The Confidential Information furnished in tangible form shall not be duplicated by the Insurance Advisor except in the course of business. Upon the request of the Company, the Insurance Advisor shall return all Confidential Information received in written or tangible form, including copies, or reproductions or other media containing such Confidential Information, within ten (10) days of such request. At the Recipient's option, any documents or other media developed by the Insurance Advisor containing Confidential Information may be destroyed by the Insurance Advisor. The Insurance Advisor shall provide a written certificate to the Insurance Advisor regarding destruction within ten (10) days thereafter. (iii) The Insurance Advisor shall have no obligation under this with respect to Confidential Information which is or becomes publicly available. II. NO INSURANCE ADVISOR SHALL:

(a) Solicit or procure insurance business without holding a valid licence; (b) Induce or pursuade any prospect to omit any material information in the proposal form;

(c) Induce the prospect to submit wrong information in the proposal form or documents submitted to the insurer for acceptance of the proposal; (d) Behave in a discourteous manner with the prospect; (e) Interfere with any proposal introduced by any other insurance agent; (f) Offer different rates, advantages, terms and conditions other than those offered by his insurer; (g) Demand or receive a share of claim proceeds from the beneficiary under an insurance contract or offer any share payable out of the commission which may be received by the Insurance Advisor from the Company. ; (h) Force, pursuade or induce a policyholder to terminate any existing policy and to effect a new proposal from him; (i) Have, in case of a corporate agent, a portfolio of insurance business under which the premium is in excess of fifty percent of total premium procured, in any year, from one person (who is not an individual) or one organization or one group of organizations; (j) Become or remain a director of any insurance company; III. EVERY INSURANCE ADVISOR SHALL: With a view to conserve the insurance business already procured through him, make every attempt to ensure remittance of the premiums by the policyholders within the stipulated time, by giving notice to the policyholder orally and in writing; 3. ADVERTISEMENT AND PUBLICITY: Every Insurance Advisor shall, during the conduct of his agency business,

adhere to the provisions of the Insurance Regulatory and Development Authority (Insurance Advertisements and Disclosure) Regulations, 2000. In accordance with the advertisement regulations issued by the IRDA, the Insurance Advisor are required to obtain prior approval in writing, of the Company for issue of any advertisement. However in the following cases such prior written approval is not required: a. Advertisements developed by the Company and provided to the Insurance Advisors; b. Generic advertisements limited to information like the name, logo, address, and phone numbers etc of Insurance Advisors; and c. Advertisements that consist only of simple and correct statements describing the availability of lines of insurance, references of experience, service and qualifications; but making no reference to specific policies, benefits, costs or the Company.

4. OTHER INSURANCE AGENCIES: In accordance with the Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000, an insurance agent can act on behalf of only one life insurer and one general insurer at one time. Hence the Insurance Advisors are needed to ensure that the do not take up life insurance agency of any other life Insurer. He may however act as a general insurance agent for one general insurer, subject to his meeting the applicable regulatory requirements.

5. MINIMUM BUSINESS AND COMMISSIONS: As our consultant, the Insurance Advisor shall be entitled to receive Commission on the premium generated by the Insurance Advisor and the rates of Commission will be informed to the Insurance Advisor separately from time to time. While ensuring that the existing business continues, the Insurance Advisors are also required to bring in minimum new business for the Company, which will entitle the Insurance Advisor to a Net Effective Premium at such rates as may be determined by the Company from time to time. The minimum business to be procured by the Insurance Advisor during a business year will be determined by the Company on an annual basis. The business year would be a period of 12 months ending on 30th June every year and the first business year will be a period from the date of appointment upto the forthcoming 30th of June. The business targets for the first business year shall be pro-rated on the number of complete months from the date of appointment upto the end of the business year. Net Effective Premium: The Company would measure a consultants performance annually based on commission on account of new business procured adjusted to commission on reduced premiums and premiums not collected due to: i- lapses, ii- Cancellation of riders, iii- Cancellation of policies, iv- Surrenders,

v- Reduction of sum assured (including conversion to paid-up) with respect to policies/ business procured in the previous 2 business years. This measurement is termed as Net Effective Premium and the weightages for reduction in premiums or lapses of policies are in proportion to the reduction of premiums and are subject to change from time to time. 6. PAYMENT OF COMMISSION ON POLICIES ON OWN LIFE: In terms of Rule 16-B of the Insurance Rules, 1939, an agent shall not be entitled to commission on any policy taken out by him on his own life unless he has secured policies on six different lives excluding his own and he has also been an insurance agent continuously from the time of his soliciting or procuring the first policy on each of such six lives or proposing on the policy of his own life, whichever is earlier, till the time when the policies on those six lives and the policy on his own life have all been issued.

7. PAYMENT OF COMMISSION IN CASE OF DEATH: In the event of death of an Agent, the commission payable to him under the provisions of clause (b) and (c) of Section 44(1) of the Act, shall continue to be payable to his nominees, if any, or to his heirs for so long as the commission would have been paid to the Agent if he were alive. 8. PAYMENT OF COMMISSION IN CASE OF TERMINATION: Where the agency contract has been terminated for reasons other than fraud, the commission on renewal premium shall be paid in accordance with the

provisions of clauses (a), (b) & (c) of the proviso to Section 44(1) of the Act. 9. CHARGES: Every agent shall at the time of applying for Agency, pay a sum of Rs. 600/to the Company towards licensing and examination fees and franking charges. The said rates are subject to revision in accordance with the applicable rules and regulations. 10. PROHIBITION OF REBATE: Every agent shall observe and adhere to the provisions of Section 41 of the Insurance Act, 1938 reproduced hereunder and also bring the same to the notice of the prospect: Section 41 (1) No person shall allow or offer to allow either directly or indirectly, as an inducement to any person to take out or renew or continue, an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part commission payable or any rebate of the premium shown on the policy nor shall any person taking out or renewing or continuing a policy accept any rebate except such rebate as may be allowed in accordance with the published prospectuses or tables of the Insurer. (2) Any person making default in complying with the provisions of this Section shall be punishable with fine, which may extend to five hundred Rupees. 11. RURAL SECTOR OBLIGATIONS: The Insurance Advisor may be aware that under the Insurance Regulatory

and Development Authority (Obligations of Insurers to Rural or Social Sectors) Regulations, 2000, the Company is required to procure a minimum business from both the Rural and Social sectors. In view of this, we may request the Insurance Advisors from time to time to procure certain minimum business from these sectors. For the purposes of procuring insurance business from the Rural sector, the rural sector shall have the meaning as given in the Insurance Regulatory and Development Authority (Obligations of Insurers to Rural or Social Sectors) Regulations 2000 as amended from time to time. 12. SOCIAL SECTOR OBLIGATIONS: For the purposes of procuring insurance business from the social sector, the social sector shall have the meaning as given in the Insurance Regulatory and Development Authority (Obligations of Insurers to Rural or Social Sectors) Regulations 2000 as amended from time to time.

13. NO AUTHORITY TO COLLECT MONEYS: The Insurance Advisors not authorized to collect any money/premium in cash from the prospects and/ or policyholders under any circumstances. 14. NO AUTHORITY TO ACCEPT RISKS: The Insurance Advisors are not authorised to accept any risk for or on behalf of the Company. 15. NO AUTHORITY TO ISSUE RECEIPTS: The Insurance Advisors are not authorised to issue any type of receipt

whether on personal letterhead or on the Companys behalf to any person, in respect of monies collected by them. 16. GROUP INSURANCE BUSINESS: Unless specifically permitted, the Insurance Advisors are not authorised to procure Group Insurance business for the Company. 16(a.) The Insurance Advisor authorises the Head-Retail Sales to act as a group Organiser/Manager to arrange the group insurance on the life of Financial Consultant as and when eligible for the same. It is understood that the eligibility for the Group Insurance shall be on the basis of criteria to be decided by the Head-Retail Sales at his sole discretion from time to time. 17. DISQUALIFICATION OF AGENT: A Insurance Advisors licence is liable to be cancelled if the Financial Consultant suffers, at any time during the currency of the licence, from any of the disqualifications mentioned in sub-section (4) of Section 42 of the Act, and the Company may recover from him the licence and the identity card issued earlier along with all other documents, literatures, booklets, tables etc. that belong to the Company. The disqualifications mentioned in Sub-section (4) Of Section 42 of the Act are: a. That the person is a minor. b. That he is found to be of unsound mind by a Court of competent jurisdiction; c. That he is found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abatement of or attempt to commit any

such offence by a court of competent jurisdiction; Provided that where at least five years have elapsed since the completion of the sentence imposed on any person in respect of any such offence, the Authority shall ordinarily declare in respect of such person that his conviction shall cease to operate as a disqualification under this clause. d. That in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer, it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured; e. That he does not possess the requisite qualification and practical training for a period not exceeding12 months, as may be specified by the Regulations, made by the Authority in this behalf; f. That he has not passed such examination as may be specified by the Regulations made by the authority in this behalf; Provided that a person who had been issued a licence under Section 41(1) or 64UM(1) of the Act shall not be required to possess the requisite qualification, practical training and pass such examination as required by clauses (e) and (f); g. That he violates the code of conduct as may be specified by the Regulations made by the Authority. 18. OBLIGATIONS UNDER THE IRDA (PROTECTION OF POLICYHOLDERS INTERESTS) REGULATIONS, 2002:

The following are the points to be noted and adhered to by the Financial Consultants: 1. Regulation 3(2) - An insurer or its agent or other intermediary shall provide all material information in respect of a proposed cover to the prospect to enable the prospect to decide on the best cover that would be in his or her interest. 2. Regulation 3(3) - Where the prospect depends upon the advice of the insurer or his agent or an insurance intermediary, such a person must advise the prospect dispassionately 3. Regulation 3(5) - In the process of sale, the insurer or its agent or any intermediary shall act according to the code of conduct prescribed by: i) The Authority ii) The Councils that have been established under section 64C of the Act and iii) The recognized professional body or association of which the agent or intermediary or insurance intermediary is a member. 4. Regulation 4(6) - Proposals shall be processed by the insurer with speed and efficiency and all decisions thereof shall be communicated by it in writing within a reasonable period not exceeding 15 days from receipt of proposals by the insurer. In order to assist the Company adheres to the time limit of 15 days prescribed in this regulation, you are required to ensure that all communications received by you in writing from the customer is delivered

to the Company within 24 hours of receipt. 5. Regulation 6(2) - While acting under regulation 6(1) in forwarding the policy to the insured, the insurer shall inform by the letter forwarding the policy that he has a period of 15 days from the date of receipt of the policy document to review the terms and conditions of the policy and where the insured disagrees to any of those terms or conditions, he has the option to return the policy stating the reasons for his objection, when he shall be entitled to a refund of the premium paid, subject only to a deduction of a proportionate risk premium for the period on cover and the expenses incurred by the insurer on medical examination of the proposer and stamp duty charges. This regulation provides an option to the Policyholder to return the policy within 15 days of receiving it and getting a refund of the premium, less certain specified deductions. Please note that in all such cases, the Commission, NEP and all other benefits attached to such policy will be recalled by us. This will be done either by way of adjustment from future payments/benefits. Where such future payments are not available or are inadequate, you may be required to pay over the same to us within such time as we may specify then. 6. Regulation 11(4) - Any breaches of the obligations cast on an insurer or insurance agent or insurance intermediary in terms of these regulations may enable the Authority to initiate action against each or all of them, jointly or severally, under the Act and/or the Insurance Regulatory and

Development Authority Act, 1999. 19. VALIDITY OF LICENCE & RENEWAL THEREOF: The appointment as our Insurance Advisor is subject to your continuing to hold a valid insurance licence at all times. If your insurance licence is cancelled or expires and is not renewed in time, the appointment as Insurance Advisor shall ipso facto stand terminated on the cancellation or expiry of insurance licence as the case may be. As required under the aforesaid Regulations, before seeking renewal of the licence, the applicant would be required to undergo practical training from an approved training institution. It may be noted that once an appointment stand terminated as aforesaid, a renewal or re-issue of licence shall not automatically revive agency with the Company and the applicant shall have to submit a fresh application. In such an event re-appointment shall be at the discretion of the Company. 20. DIRECTORSHIPS: As required under the Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000 please note that the Insurance Advisors of the Company are not entitled to become or remain a director of any Insurance Company. 21. MISSELLING AND PENALTY: The Insurance Advisor shall fully understand the requirements of the prospect and then suggest a suitable product. The Insurance Advisor shall

not induce any prospect into accepting any product, which the prospect didnt initially need, only for the generation of business. In the event of the prospect rejecting the policy for the reason that the product was not what he had required, such sale shall be treated as a miss-sale and the Company Reserves the rights to penalise the Insurance Advisor by way of fine and/or Penal action, which shall not be less than the cost incurred by the Company on account of such sale. 22. TERMINATION OF THE AGENCY: The Company shall also be entitled at any time to terminate your agency, without thereby being liable for any compensation or damages, if in its sole opinion, (a) The performance of the Insurance Advisor has not been satisfactory; or (b) The Insurance Advisor has acted in breach of the code of conduct or any of the terms and conditions of appointment; or (c) Any information furnished by the Insurance Advisor in relation with the appointment is false; or (d) The Insurance Advisor has acted in a fraudulent manner and continuing the person as Insurance Advisor shall be prejudicial to the interest of the Company. 23. TERMINATION Notwithstanding anything herein before contained either party may terminate the agency by giving a notice of one month to the other party without assigning any reason thereto.

Any notice to be served hereunder shall be sufficiently served on the Company, if served by Registered Post at its said Registered Office or any other address as may be intimated by the Company to the Consultant in writing, and shall be sufficiently served on the Consultant if sent to him by Registered Post at his given address. Upon termination of agency the terminated Insurance Advisor shall forthwith surrender the identity Card as well as all other manuals, tables, rate books, literatures, product guides etc. of the Company that are in there possession, to the Company. Subject to the provisions of Section 44 of the Insurance Act 1938 and the rules of the Company in this regard as laid down from time to time, the terminated Insurance Advisor shall be entitled to receive commission and renewal commission on the business brought in by the Insurance Advisor prior to termination of the agency. In the event of the agency being terminated within a period of 24 months from the date of appointment, the Company shall be entitled to claim the entire costs incurred on the Insurance Advisor for training. The Company reserves the right to determine the extent of costs incurred as aforesaid. This appointment shall be subject to jurisdiction of Courts at Mumbai. As a matter of token of acceptance of the terms and conditions as detailed above, the proposed Insurance Advisor / Insurance Advisor is required to sign the original copy of the Terms and Conditions as having accepted and return the original copy to the terms and conditions to the Company. I SAY READ, UNDERSTOOD, AGREED AND CONFIRMED.

Name: Address: Date: In the presence of Witness: Signature:


Why we are talking about Bancassurance?

Is it our idea or we have learnt from somebody? Are we going to change the definition of ba? What is our objective in starting ba? Do we want to learn from the mistakes committed by established?

Definition of Bancassurance: Bancassurance: Ba is the selling of insurance products through

a banks distribution channels to banks customers. It is a French term bank Assurance, Bank Insurance, Assure Banking are used

interchangeably Universal Banking and One Stop Shop are further extension of Ba.

Banks distribution channels:

Branch network Tele banking Statement inserts ATMs I

Three Cutting Edge for banks:

Brand Loyalty Data Bank Face to face Contact

Banks advantage over Insurance:

Better hit ratio Lower costs per sales Access to middle income group Better processing technology More information knowledge of potential buyers of insurance

Objective of Banks:
Fee income which is risk free To reduce operating expenses Product diversification

Benefits to Insurers:
Sky is the limit Lesser Procurement Cost Known customer and therefore risk assessment is easier Increase in turnover Increase in Market Penetration Access to middle market segment

Benefits to customers:
Lower cost Refined, high Quality product Double Assurance Delivery at doorsteps Convenience in payment Easy & Automatic renewals

Options for Banks:

Subsidiary Mergers Acquisitions Joint Venture Working Relationships with one or many insurers Division with in bank

Options for insurers:


Joint Venture Working relationships with one or more banks Post assurance

Huge pool of skilled professionals Just needs to be relocated-no extra manpower required at any level A big arsenal of personal line products already lined up INo or little R & D effort required at the outset

No incentives for the people to go for insurance Tax Exemption for all ba products required Lack of goodwill by banks as well as insurance companies Tariffs-inflexible Ratings not based on sound actuarial principles

Banks enormous database Homogeneous groups can be churned out of the database to develop and market products Product Positioning

Experiment has already been done elsewhere and we know in advance about the highs & lows of ba

Required changes in approach, thinking & work culture on the part of everybody concerned Resistance to change due to any relocation Non-response from target customers

Develop ba only gradually

Europe & USA-banks were first allowed to distribute insurance products and later were allowed to carry risks Distributional one can yield substantial fee income, which is net and is free of any encumbrances that an insurer has to deal with.






Primary objectives:1. Depth study of Insurance Agency Development

Secondary objective:1. To gain familiarity with the phenomena. 2. To see what the people feel about the products and services of ICICI Prudential.

Methods of Data Collection

Primary Data - Those data, which are collected for the first time and thus happen to be original in character. It can also be obtained through observations, direct communications or personal interviews.

Secondary Data -Those data, which have already been collected by someone else and which have already been passed through the statistical process. When the researcher utilizes secondary data, then he looks for the various sources from where he can obtain them. Materials can be collected from: Trade Journals. Newspapers

Business Magazines. Statistical documents.

When I want to understand what is happening today or try to decide what will happen tomorrow, I look back. Therefore, secondary data plays an important role in a complete research. The various data collection tools used in this research process is:-

Observation: - In this, the various suggestions of peoples and various consumers are being heard. It can be either the merits or demerits, said by the consumers relating to the product.

Interview schedule: - Here, I had personal contacts with all the people in the field as well in the office to know for more of the ICICI Prudential, its products and its services.

Methodological Assumptions
The methodology used is based on Primary & Secondary data. It is assumed that both methods is more suitable for my type of report. It is assumed that the staff has a good degree of knowledge about the information collected so far.



S Strength W Weakness O Opportunity T- Threat

ICICI Prudential is one of the most powerful, world class Life Insurance Co. gaining appreciation for their strong ethics, excellent performance,

professionalism and team work which led them to progress in todays challenging environment. Though with its excellence performance and every efforts has been made to present the most authentic and truly representative findings, but some deviations and hurdles in progress. So, with its strength and good quality, the company is having some weakness, and threats and opportunities. SWOT analysis is explained below:

ICICI Prudential is the largest private player in the insurance industry in India. Excellent services. Customization of products as per customers needs. Brand image.

Business Experience. Strong Financial Base. Innovative Products, Technology, Organization culture and climate. The company has a large network of branches, which is helpful to customer for the payment.

Lot of competitors are in the market offer same product offered by the difference in the premium and offering. Target only higher income group whereas other companies are trying to catch middle-class people. Higher premium as compared to other companies. Clients face problems to get insured due to large number of formalities. High targets for financial advisors and for the sales department.

Huge market is literally untapped. Out of estimated 320 million insurable markets only 20% of the population is insured. In a conservative society of India where people are most inclined towards risks free investment such as Bank FDs and saving rather

than equity and high risk investment insurance offers the best of both worlds The security with high returns. In the pension field where people want good life after their retirement. Indian people are more emotional towards their thats why children plans are selling like hot cakes. Health insurance and pension schemes as estimated market potential of approximately $15 dollars

Weak perception of private players in the mind of Indian people due to frequent financial scams. Large number of insurance players. Existing wrong business practices of companies like LIC first premium is paid by their agents where as IRDA suggests that even forms to be filled by the clients themselves. Players like Allianz Bajaj and Birla Sun Life with low premium for the similar plans. Entry of many other private companies with equally strong experience and financial strength of foreign partners making the competition difficult and saturating the urban markets.

LIC has woken up from sleep and is following competitive strategies. Its huge surplus in life fund gives a capability to lodge price war.

For the insurance sector Govt. set the authority that is IRDA which is undertaken to track record of all the companies and change the rules day by day more rigid, which is very difficult for the companies.


It is clear from the above study that insurance business is mushrooming in the country. Today there are number of insurance companies offering different insurance plans with different added advantages. LIC is leading company in the insurance business in India with a market share of 87% followed by ICICI Prudential with a market share of 5.4%. Today more and more private entrepreneurs are coming to deal in life insurance products. It is not an easy task for a company to stay stable and survive with rapidly growth in the tough competition. Hence a company dealing in life insurances products needs qualify and persuasive insurance advisors. Company must provide world-class training and promotional

opportunities to their advisors to better performance.


Universal insurance sector has now come to play an important role in the growth of insurance sector of every country as well as economic development of the country. ICICI Prudential provides wide range of financial services and products to the clients. On the basis of whole study, conclude the following findings: Though the period of commitment is very long, the investors do not much believe in private players. ICICI Prudential is having the largest market share i.e. 40% among all the private players. There is no life cover provided during the extension period of vesting age. The various challenges faced by the insurance industry are: a) Broadening the Benefits. b) Channels of Distribution. c) Expectation of the customers. d) Consumer Education. e) Catering the rural areas. f) Large no. of private companies. Not much emphasis is given to create awareness in the rural sector.


ICICI Prudential should provide the home services to its customers. ICICI Prudential should reduce its minimum policy payment in the first installment. To educate the client/customer, the interaction with the client should be improved by conducting seminar, client meetings and workshops. To increase the market share, ICICI Prudential should increase its branch network, especially in the rural areas.


ANNEXURE How Insurance Advisors Recruitment Is Done?


Sr. No. Teachers 1. 2. Entrepreneurs 3. Officials 4. 5. Freshers 6.

Names _ _ _ _ _ _

Address _ _ _ _ _ _

Contact _ _ _ _ _ _

Formalities of Insurance Advisors Recruitment

Form Fillings Insurance Advisor Application Form

Insurance Advisor Agreement Form Examination Test Form/Yellow Form

Documentary Age Proof (Certificate of matriculation) Address Proof (Voter-Id, Ration Card, Telephone Bill etc.) Education Proof (Highly Qualify Edu. Proof like 10+2 or Graduations Certificate) 7-Photographs Demand Draft

Frequently asked Questions in Examination Test

Insurance Basics Premium Calculations Age Calculations




Study Material of LIFE INSURANCE CORPORATION Used Material from INTERNET


Limitations of the Study

Limitations of the Study

This summer training will always remain one of the best experience of my life. But no study is complete in itself, however good it may be and every study has some limitations, some of the limitations which I have confronted are as follows: Time period for covering the project was short. It was not easy to convince the professionals. Companies were not ready to give address of their respective customers to conduct a survey.