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PROJECT REPORT SUBMITTED TO OSMANIA UNIVERSITY IN PARTIAL FULFILMENT FOR THE AWARD OF MASTER OF BUSINESS ADMINSTRATION (2007-2009) BY MOHAMMED.JAVEEDODDIN (088-07-195)
DEPARTMENT OF BUSINESS MANAGEMENT VATHSALYA COLLEGE OF BUSINESS MANAGEMENT AFFILIATED TO OSMANIA UNIVERSITY
I, Mohammed Javeedoddin, bearing Roll No 088-07-195 a student of Vathsalya College of Business Administration affiliated to Osmania University, pursuing Master of Business Administration here by declare that the Project Report title “MARKETING SURVEY OF LIFE INSURANCE FOR ICICI PRUDENTIAL LIFE INSURANCE” is an original Work carried out by me availing the guidance and services of my project guide by Mr. P.SRIKANTH & work under taken by me is not submitted to any other University or institutions for award of any degree/diploma/certificate or published any time report.
NAME OF STUDENT
SIGNATURE OF STUDENT
ACKNOWLEDGEMENT I would like to express my deep gratitude to our dynamic Principal Prof. Mr. A.S.Prasad VCBM for inspiring me and motivating me while doing the project. I would like to express my gratefulness to Mr. Satish Sir Head of the Department, Vathsalya College of Business Management, for his Cooperation and Encouragement. I would like to thank all the Faculty Members of Vathsalya College of Business Management for the rendering valuable suggestions and Extending support to complete my project. I extend my profound gratitude to Mr.P.SRIKANTH my Project Guide For Rendering the valuable suggestions and extending his support to Complete my Project successfully. I would like to thank Mr.VEDAKUMAR. Branch manager of Nalgonda. ICICI Prudential Life Insurance. Also thanks to Unit Manager Mr.WAJID ALI. I would like to thank all those who are they office Staff of the ICICI Prudential Life Insurance Nalgonda supported me directly & indirectly in Accomplishing the project successfully. Last but not least, thanks to all my friends and my family members to cooperate me in Accomplishing the project successfully.
CHAPTER I: INTRODUCTION OF LIFE INSURANCE CHAPTER II: IRDA CHAPTER III: COMPANY PROFILE CHAPTER IV: PRODUCTS CHAPTER V: CHARTS CHAPTER VI: CONCLUSION CHAPTER VII: QUESTIONNAIRE CHAPTER VIII: BIBLIOGRAPHY
INTRODUCTION OF LIFE INSURANCE
Objectives of the study: To know the pattern of investment in life insurance sector in different type of plans. To know the pattern of investment in life insurance sector on the basis of age, occupation and income. To analyze the opportunities and threats in life insurance sector. To analyze the strength and weakness of different plans lunched by ICICI Prudential Life Insurance Ltd.
EXECUTIVE SUMMARY This report consists of a detailed study about ICICI Prudential, organization’s functions, products’ descriptions and various charts that depict the performance of the organization. Based on the above study, the Strengths, Weaknesses, Opportunities and Threats are analyzed so as to arrive at a conclusion about the company. Considering the different aspects of the study, I have also given few logical and valid recommendations, which helped me to find out the pros and cons of ICICI Prudential. The report also comprises of the need, objectives and scope of the study. The objective was to study to know the pattern of investment in life insurance sector in different type of plans. By doing such a study, it certainly assisted me to know what exactly the purpose of the study was. Tables and charts are used so as to represent the gathered-information and statistics for a better understanding. To conclude, this is an epigrammatic report that gives an insight of ICICI Prulife. The topics are also arranged chapter-wise so as to give a clear picture for the reader. I hope this report will please the reader regarding the various aspects covered about this reputed organization in the insurance industry- ICICI PRUDENTIAL LIFE INSURANCE
INTRODUCTION TO LIFE INSURANCE
What is life Insurance? Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured's demise.
Origin of life insurance Life insurance was born in England when the first policy providing temporary cover for a period of 12 months was issued as easy as 1583 A.D. The Amicable Society started granting fluctuating sum on death since 1705 and a fix sum since 1757. With the development of mortality tables, the life assurance acquired a scientific character. The Equitable Society founded in 1762 was the first Society established on scientific basis. Origin of life insurance in India In India, after the failure of two British companies, the European and the Albert in 1870, which attempted writing business on Indian lives, first Indian life assurance society was formed in the same year called Bombay mutual assurance society ltd. It was followed by the oriental life assurance company limited in 1874,
Bharat in 1896 and empire of India in 1897. The idea of insurance was born out of a desire of the people to share loss of an individual by many. Originally it restricted to forms of other life insurance. It started with marine insurance, where the losses on account of perils of sea were shared by all who were engaged in trade. Reference to some forms of insurance is found in the codes of Hammurabi Manu. The Swadeshi movement of 1905 provided impetus to the formation of several companies such as the ‘Hindustan Cooperative, the United India’, the ‘Bombay Life’, the National’. Further in the wake of freedom movements number of companies such as the ‘New India’, the ‘Jupiter’ the Lakshmi’ emerged. The government began to exercise a certain measure of control on insurance business by passing the ‘insurance act’ in 1912. In order to control the investment of funds, expenditure and management, a comprehensive act was passed known as ‘the insurance act 1938’. To control the affairs, the office of controller of insurance was established. The act was extensively amended in 1950. Indian Insurance Market – History Insurance has a long history in India. Life Insurance in its current form was introduced in 1818 when Oriental Life Insurance Company began its operations in India. General Insurance was however a comparatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata. History of Insurance in India can be broadly bifurcated into three eras: a) Pre Nationalization b) Nationalization and c) Post Nationalization. Life Insurance was the first to be nationalized in 1956. Life Insurance Corporation of India was formed by consolidating the operations of various insurance companies. General Insurance followed suit and was nationalized in 1973. General Insurance Corporation of India was set up as the controlling body with New India, United India, National and Oriental as its subsidiaries. The process of opening up the insurance sector was initiated against the background of Economic Reform process which commenced from 1991. For this purpose Malhotra Committee was formed during this year who submitted their report in 1994 and Insurance
Regulatory Development Act (IRDA) was passed in 1999. Resultantly Indian Insurance was opened for private companies and Private Insurance Company effectively started operations from 2001.
Insurance Market- Present: The insurance sector was opened up for private participation four years ago. For years now, the private players are active in the liberalized environment. The insurance market have witnessed dynamic changes which includes presence of a fairly large number of insurers both life and non-life segment. Most of the private insurance companies have formed joint venture partnering well recognized foreign players across the globe. There are now 29 insurance companies operating in the Indian market – 14 private life insurers, nine private non-life insurers and six public sector companies. With many more joint ventures in the offing, the insurance industry in India today stands at a crossroads as competition intensifies and companies prepare survival strategies in a de-tariff scenario. There is pressure from both within the country and outside on the Government to increase the foreign direct investment (FDI) limit from the current 26% to 49%, which would help JV partners to bring in funds for expansion. There are opportunities in the pensions sector where regulations are being framed. Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has issued the first license for a standalone health company in the country as many more players wait to enter. The health insurance sector has tremendous growth potential, and as it matures and new players enter, product innovation and enhancement will increase. The deepening of the health database over time will also allow players to develop and price products for larger segments of society
Year 1912 1928
Milestones in the life insurance business in India The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India
Types of Life Insurance
Life insurance may be divided into two basic classes – temporary and permanent or following subclasses - term, universal, whole life, variable, variable universal and endowment life insurance. Temporary (Term) Term life insurance or 'term assurance' provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else. (See Theory of Decreasing Responsibility and buy term and invest the difference.) The three key factors to be considered in term insurance are: face amount (protection or death benefit), premium to be paid (cost to the insured), and length of coverage (term). Various (U.S.) insurance companies sell term insurance with many different combinations of these three parameters. The face amount can remain constant or decline. The term can be for one or more years. The premium can remain level or
increase. A common type of term is called annual renewable term. It is a one year policy but the insurance company guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the insured and with a premium set for the insured's age at that time. Another common type of term insurance is mortgage insurance, which is usually a level premium, declining face value policy. The face amount is intended to equal the amount of the mortgage on the policy owner’s residence so the mortgage will be paid if the insured dies. A policy holder insures his life for a specified term. If he dies before that specified term is up, his estate or named beneficiary(ies) receive(s) a payout. If he does not die before the term is up, he receives nothing. In the past these policies would almost always exclude suicide. However, after a number of court judgments against the industry, payouts do occur on death by suicide (presumably except for in the unlikely case that it can be shown that the suicide was just to benefit from the policy). Generally, if an insured person commits suicide within the first two policy years, the insurer will return the premiums paid. However, a death benefit will usually be paid if the suicide occurs after the two year period. Permanent Permanent life insurance is life insurance that remains in force (in-line) until the policy matures (pays out), unless the owner fails to pay the premium when due (the policy expires OR policies lapse). The policy cannot be canceled by the insurer for any reason except fraud in the application, and that cancellation must occur within a period of time defined by law (usually two years). Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time. This means that a policy with a million dollars face value can be relatively expensive to a 70 year old. The owner can access the money in the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and receiving the surrender value.
The three basic types of permanent insurance are whole life, universal life, and endowment. Whole life coverage: Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits; guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy. The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Riders are available that can allow one to increase the death benefit by paying additional premium. The death benefit can also be increased through the use of policy dividends. Dividends cannot be guaranteed and may be higher or lower than historical rates over time. Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equal if policies are kept in force until average life expectancy. Cash value can be accessed at any time through policy "loans". Since these loans decrease the death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only. If the dividend option: Paid up additions is elected, dividend cash values will purchase additional death benefit which will increase the death benefit of the policy to the named beneficiary.
Universal life coverage Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. There are several types of universal life insurance policies which include "interest sensitive" (also known as "traditional fixed universal life insurance"), variable universal life insurance, and equity indexed universal life insurance.
A universal life insurance policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. This rate may have a guaranteed minimum (for fixed ULs) or no minimum (for variable ULs). Mortality charges and administrative costs are then charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any. With all life insurance, there are basically two functions that make it work. There's a mortality function and a cash function. The mortality function would be the classical notion of pooling risk where the premiums paid by everybody else would cover the death benefit for the one or two who will die for a given period of time. The cash function inherent in all life insurance says that if a person is to reach age 95 to 100 (the age varies depending on state and company), then the policy matures and endows the face value of the policy.
Interest-Sensitive Universal Life Insurance An interest sensitive UL policy was the first attempt at creating a flexible premium life insurance policy and was created in the 1980s. Interest-sensitive UL policies guarantee, to some extent, the death proceeds, but not the cash function - thus the flexible premiums and interest returns. If interest rates are high, then the investment returns help reduce the required premiums needed to keep the policy in force. If interest rates are low, then the customer would have to pay additional premiums in order to keep the policy in force. When interest rates are above the minimum required or minimum guaranteed interest rate, then the customer has the flexibility to pay less as investment returns cover the remainder to keep the policy in force.
Equity-Indexed Universal Life Insurance Equity-Indexed Universal Life Insurance or "EIUL" for short is a fixed universal life insurance policy that was created in the mid 1990s to address concerns about market volatility and provide an alternative to the low interest rates being offered by interest-sensitive UL policies.
CHAPTER II REGULATORY BODY (IRDA)
Composition of Authority: As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament)
specify the composition of Authority The Authority is a ten member team consisting of (a) (b) (c) a Chairman; five whole-time members; four part-time members,
(all appointed by the Government of India)
Powers and functions of IRDA Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. 1. Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include, • • issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; • • • • • specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents specifying the code of conduct for surveyors and loss assessors; promoting efficiency in the conduct of insurance business; promoting and regulating professional organizations connected with the insurance and re-insurance business; levying fees and other charges for carrying out the purposes of this Act;
calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business;
control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);
specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries;
• • • • • • •
regulating investment of funds by insurance companies; regulating maintenance of margin of solvency; adjudication of disputes between insurers and intermediaries or insurance intermediaries; supervising the functioning of the Tariff Advisory Committee; specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f); specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and exercising such other powers as may be prescribed
Mission of IRDA To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.
TAX BENEFITS OF LIFE INSURANCE
Tax Benefits on Insurance Life insurance and retirement plans are effective ways to save taxes when doing your year end tax planning. To assist you in tax planning, the tax breaks that are available under our various insurance and pension policies are described below:
1. Our life insurance plans are eligible for tax deduction under Sec. 80C. 2. Our Pension plans are eligible for a tax deduction under Sec. 80CCC. 3. Our health insurance plans/riders are eligible for tax deduction under Sec. 80D. 4. The proceeds or withdrawals of our life insurance policies are exempt under Sec 10(10D), subject to norms prescribed in that section.
Tax Rates for Individuals financial year 2008- 09 a. Tax rates
Tax rate for Individuals for Assessment year 2009-10 is as follows: General (non-senior and non-women) Nil 10% 10% Senior Citizens Nil Nil Nil
Income Range Upto Rs. 150,000 Rs. 150,001 to Rs. 180,000 Rs. 180,001 to Rs.
Women Nil Nil 10%
225,000 Rs. 225,001 to Rs. 300,000 Rs. 300,000 to Rs. 500,000 Above Rs. 500,000
10% 20% 30%
10% 20% 30%
10% 20% 30%
No change in Surcharge and Education Cess which remain at 10% (where the total income is more than Rs.10 Lakhs) and Education Cess @ 3%
b. Increase in limits for deduction under Section 80D
At present premia paid under the policies on the health of the self, spouse, dependent children and dependent parents eligible for a deduction up to Rs.15,000/- per annum. For senior citizens, the limit is Rs.20,000/-
The following amendments have been proposed under Section 80D:
A deduction of Rs.15,000/- only for self, spouse and dependent children Additional deduction of Rs. 15,000 for parent or parents
The condition of dependency of parent has been removed. In other words, even if the parent is independent, the individual can pay the premia and claim the deduction. This would help, for example, a wife to pay premia on a policy taken on the health of her father or mother who is independent
CHAPTER III COMPANY PROFILE
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 37.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 954 branches in addition to 1,015 micro-offices, over 296,000 advisors; and 21 bank assurance partners. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (India) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India. PROFILE OF THE ORGANIZATION: ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 37.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. They began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 954 branches in addition to 1,015 micro-offices, over 296,000 advisors; and 21 assurance partners ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row,
ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India. The ICICI Prudential edge comes from our commitment to our customers, in all that we do - be it product development, distribution, the sales process or servicing. Here's a peek into what makes us leaders.
1. Our products have been developed after a clear and thorough understanding of customers' needs. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the funds you might need to recover from a dreaded disease 2. Having the right products is the first step, but it's equally important to ensure that our customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products. 3. Robust risk management and underwriting practices form the core of our business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process 4. Entrusted with helping our customers meet their long-term goals, we adopt an investment philosophy that aims to achieve risk adjusted returns over the longterm
5. Last but definitely not the least, our 28,000 plus strong team is given the opportunity to learn and grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life. ICICI PRULIFE: The Vision and the Core Values To be the dominant Life, Health and Pensions player built on trust by worldclass people and service.
The pre-defined goals are achieved by ICICI Prulife…. • • • • • Understanding the needs of customers and offering them superior products and service. Leveraging technology to service customers quickly, efficiently and conveniently. Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders. Providing an enabling environment to foster growth and learning for our employees. And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5 core values- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describes what the company stands for, the qualities of our people and the way we work. We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.
Every member of the ICICI Prudential team is committed to 5 core values: • • • • • Integrity Customer First Boundary less Ownership and Passion.
Social responsibilities of ICICI Prudential • • • • • • Spread life insurance much widely to the rural areas with extra benefits. Support the socially and economically backward classes. Maximize mobilization of people’s savings. Ensure prompt investment of funds. Conduct business with utmost economy. Act as trustee of the insured public.
The 7- S’s in ICICI Prudential The 7- S model is an outcome of an extensive research by the famous management consultancy firm, McKinsey & Co. (USA). This framework helps to establish a direct and meaningful relationship between the efficiency and the very setup of the organization. Shared Values: This variable is the central core of the model and is interconnected with all the other variables. This implies that it is the linchpin of the managerial excellence. Shared values refer to a set of values and aspirations that go beyond the conventional formal statement of corporate objectives. These represent the fundamental values around which a business is built. They lay down the foundation of the organization’s management philosophy and give rise to a particular culture. ICICI Prudential is an organization that values and safeguards basic principles and core ethics that ranges from Equal prospects, Responsibility to society, Appreciating values, Openness, Integrity and Total team work. Strategy: A strategy is a long-term plan chosen deliberately and consciously after a thorough analysis of the internal and external environment of the organization. It refers to the plan formulated in response to or in anticipation of changes in environment. It seeks to improve the company’s competitive position. It is designed to provide guidance and direction to the operations of the organization. It is true that organizations, which continuously carry out strategic planning and strategic management; tend to outperform those, which do not. ICICI Prudential, inspire of being incepted in a competitive environment at Mumbai, has achieved the best monthly sales volume throughout the periods.
Structure: The structure is the skeleton of the whole organizational edifice. It is built by dividing the total task into smaller groups and creating coordination among the groups. It prescribes the formal relationships among various positions and activities. ICICI Prudential has designed its organization to comprise of departments such as Finance & Administration, Sales, Service and IT. F&A and IT departments have their functions to spread over the others in the structure. System: System refers to all the rules, regulations and procedures; both formal and informal that compliments the organization structure. It consists of planning and control systems, capital budgeting systems, cost accounting procedures, training and development systems, performance evaluation systems etc. Systems reflect the logic and experience of the past The training and development systems, performance evaluation systems and other systems in the organization meet the best in the industry. Styles: The style of an organization becomes evident from the pattern of actions taken by top management over a period of time and the reporting relationship. It is reflected in the traditions, norms, rituals and actions of an organization. ICICI Prudential follows an entrepreneurial, innovative and centralized style of management. Staff: Staffing refers to selecting people for specific organizational positions and developing in them, the competence for effective performance. The human resources shall be managed in such a way to generate a belief amongst them that they are the real performers. ICICI Prudential does concentrate in managing the people in the organization. The compensation packages and the career development prospects are meeting the best in the industry
Skill: The dominant skills or the distinctive competence of an organization is a major factor driving to success. What is required is the ability to identify and utilize effectively the distinctive skills. Learning new skills and sharpening the existing skills is equally important. ICICI Prudential does have a distinctive and somewhat unique marketing skill. The group as a whole itself is well known in the marketing of quality products and services. The expertise and allied knowledge is applied towards the future plans of diversification of the organization. ICICI Prudential Life has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 954 branches in addition to 1,015 micro-offices and an advisor base of over 296,000 (as on April 30, 2008). The company has 21 bank assurance partners having tie-ups with ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Sham Rao Vitthal Co-Op Bank, Jargons Peoples Co-op Bank, Ernakulam District Co-op Bank, Idukki District Co-op Bank, Ratnagiri Sindhudurg Gramin Bank, Solapur Gramin Bank, Wainganga Kshetriya Gramin Bank, Aryawart Gramin Bank, Jharkhand Gramin Bank, Narmada Malwa Gramin Bank, Baitarani Gramya Bank, Ratnagiri District Central Co-op Bank, Seva Vikas Co-op Bank, Sangli Urban Co-Operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Co-Operative Bank, The Haryana State Co-Operative Bank and Imphal Urban Cooperative Bank Ltd.
CHAPTER IV PRODUCTS
Products Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to create a customized solution for each policyholder. Savings & Wealth Creation Solutions • Save'n'Protect is a traditional endowment savings plan that offers life
protection along with adequate returns • Cash back is an anticipated endowment policy ideal for meeting milestone expenses like a child's marriage, expenses for a child's higher education or purchase of an asset. It is available for terms of 15 and 20 years. • Life Time Gold & Life Time Plus is unit-linked plans that offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 6 fund options - Preserver, Protector, Balancer, Maximiser, Flexi Growth and Flexi Balanced. • Life Link Super is a single premium unit linked insurance plan which combines life insurance cover with the opportunity to stay invested in the stock market. • Premier Life Gold is a limited premium paying plan specially structured for long-term wealth creation. • Invest Shield Life New is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation.
Invest Shield Cash back is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options.
Life Stage RP is a unique and powerful wealth creation insurance solution, which combines the benefits of automatic asset allocation and quarterly rebalancing along with increased protection.
• Lifeguard is a protection plan, which offers life cover at low cost. It is available in 3 options - level term assurance, level term assurance with return of premium & single premium. • Home Assure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and costeffective manner.
Education insurance plans
Education insurance under the SmartKid brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child's life. SmartKid plans are also available in unit-linked form both single premium and regular premium.
Forever Life is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually. Life Time Super Pension is a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price, joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5, 10 and 15 years & for life thereafter, joint life, last survivor annuity without return of purchase price) at the time of retirement.
Life Link Super Pension is a single premium unit linked pension plan. Immediate Annuity is a single premium annuity product that guarantees income for life at the time of retirement. It offers the benefit of 5 payout options.
Premier Life Pension is a unique and convenient retirement solution with a limited premium paying term of three or five years, to suit professionals and businessmen, especially those who require more flexibility and customization while planning their finances.
Health Solutions • Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, 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. • Cancer Care plus: is a wellness plan that includes all the benefits of Cancer Care and also provides an additional benefit of free periodical cancer screenings. • Diabetes Care: Diabetes Care is a unique critical illness product specially developed for individuals with Type 2 diabetes and pre-diabetes. It makes payments on diagnosis on any of 6 diabetes related critical illnesses, and also
offers a coordinated care approach to managing the condition. Diabetes Care Plus also offers life cover. • • Diabetes Care Plus: is a unique insurance policy that provides an additional benefit of life cover for Type 2 diabetics and pre-diabetics Hospital Care: is a fixed benefit plan covering various stages of treatment hospitalization, ICU, procedures & recuperating allowance. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage up to 20 years. • Crisis Cover: is a 360-degree product that will provide long-term coverage against 35 critical illnesses, total and permanent disability, and death. Group Insurance Solutions ICICI Prudential Life also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees . • Group Gratuity Plan: ICICI Prudential Life's group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. • Group Superannuation Plan: ICICI Prudential Life offers both defined contribution (DC) and defined benefit (DB) superannuation schemes to optimize returns for the members of the trust and rationalize the cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. • Group Immediate Annuities: In addition to the annuities offered to existing superannuation customers, we offer immediate annuities to superannuation funds not managed by us. • Group Term Plan: ICICI Prudential Life's flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.
Flexible Rider Options ICICI Prudential Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer. • Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. If an accident results in total and permanent disability, 10% of rider sum assured will be paid each year, from the end of the 1st year after the disability date for the remainder of the base policy term or 10 years, whichever is lesser. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit. • Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death. • Waiver of Premium: In case of total and permanent disability due to an accident, the future premiums continue to be paid by the company till the time of maturity. This rider is available with SmartKid, Life Time Plus, Life Time Super and Life Time Super Pension. • Income benefit rider: In case of death of the life assured during the term of the policy, 10% of the sum assured is paid annually to the nominee on each policy anniversary till the maturity of the ride.
About the Promoters ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the second largest bank in the country, with consolidated total assets of $121 billion as of March 31, 2008. ICICI Bank’s subsidiaries include India’s leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Bank’s presence currently spans 19 countries, including India. Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, US, Asia and the Middle East, provides retail financial services products and services to more than 20 million customers, policyholder and unit holders and manages over £267 billion of funds worldwide (as of December 31, 2007). In Asia, Prudential is the leading European life insurance company with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest retail fund managers for Asian sourced assets ex-Japan. Its fund management business has expanded into a total of ten markets: China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates. Its fund management business has expanded into a total of ten markets: China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.
Methodology means the procedure followed to collect the date or predicated purpose. For the project titled “Analysis of potential of life insurance sector for private players and financial strategy adopted by ICICI prudential Life Insurance Company Limited” I required mainly two types of date. I have collected these data as an integral part of this study/project. 1) 2) Behavior of investor to investment in life insurance sector. Retails of the different life insurance plans of life insurance companies.
For any type of data there are mainly two types are available. A) Primary Data and B) Secondary Data. Each Type of data has its own importance. 1) Primary Data are the data that art collected for the first time. Thought the primary data has lots of limitations viz. Expensive, time, consuming difficult to collect etc; when secondary data is not available or sufficient to fulfill the purpose, primary data is essential to be collected primary data may be collected, through questionnaire personal interview, seminar, debate etc. 2) Whereas, the secondary data are the data those are already collected and / or published for other purpose. When secondary data is available and sufficient two fulfill the purpose of the analyst, secondary data should be used. Secondary data is easy to collect and less expensive but it may be difficult to analyze, as it might have been collected for some other purpose. 1) Hence to know the investor’s behavior to invest in life insurance. I have conducted survey based on questionnaire. For that I have taken sample of 100 people randomly. This survey is mainly focused on age. Occupation and income wise investment in life insurance sector. It also includes the investors’ attitudes to invest in private insurance companies. 2) Different plans of life insurance company:- to analyze the ICICI Prudential life insurances plans it requires the comparison with other private players and LIC’s different plans. For such kind of data mainly secondary information is gathered from the Internet and website as will as the available brochure published by insurance companies.
CHAPTER V TABLES AND CHARTS
Analysis and interpretation of Potential of life insurance sector
Form the survey of the investors in life insurance I got following data. Which I had tabulated according to the age, Occupation and income group. On the
base of those derail tried to analyze the investment pattern of the investor with different characteristics.
Table 1: Age wise Age 31-30 31-40 41-50 51 & above Total Traditional 10 7 5 Nill 22 Life Stage R.P 13 12 4 Nill 29 children Plan 3 22 5 Nill 30 Pension Plan 3 2 4 2 11 Hospital Care 7 1 Nill 8 Total 36 44 18 2 100
Table 2: Occupation wise Traditional Life S.R.P Service Business Professional Others Total 4 4 12 2 22 2 9 6 12 29
Smart kid 3 14 9 4 30
Pension Plan 1 2 3 5 11
Hospital care 1 2 2 3 8
Total 11 31 32 26 100
Occupation wise investment in deferent plan, four types of deferent Occupation peoples investments showing in this table a total of Hundred members peoples taking to obviation
Table 3: Income wise Income Trational Life Stage Children Pension Hospital Total
R.P Up to 0.60 0.60-0.90 0.90-1.50 1.5-3.00 3.00-5.00 Nill 6 8 8 22 2 10 13 4 29
Plan Nill 6 17 6 1 30
Plan 1 3 5 2 11
Care 2 Nill 3 3 8 5 25 46 23 1 100
Following Table Shows the Various Percentage of Investment in Different Types of Plan.
Traditional Total Percentage 22 22%
Life Stage R.P 29 29%
Children Plan 30 30%
Pension Plan 11 11%
Hospital Care 8 8%
Total 100 100%
plan wise total investmet Traditional Life RP Children plan pension plan Health care
From the above graph we can say that people generally prefer to invest in mainly two types of plan, Life Stage and child plan as 60% of total investment is invested in these plans.
From the below table we can say that according to age how investor invests in different types of plan. Table showing percentage wise investment by different’ age people Table 4:Age wise percentage Age 21-30 31-40 41-50 50 & Above Traditional 27.77% 15.90% 27.77% 0 Age Wise Percentage Life Stage Child plan R.P 36.11% 8.33% 27.27% 50.00% 22.22% 27.77% 0 0 Pension Plan 8.33% 4.54% 22.22% 100% Hospital Care 19.44% 2.27% 0.00% 0 Total 100% 100% 100% 100%
Investor in age group of 41-50 yrs starts to think about pension plan and 31-40 yrs age group interested in child plan as they become mature investors. As they settle down in the life and may also get increment in their income, think for more tax savings too. Thus they find pension plan suitable for investment. As they become more conscious about their child investment in child plan also increases.
Table 5: Occupation wise Traditional Service Business Profession Others 36.36% 12.90% 37.5% 7.69% Life Stage R.P 18.18% 29.03% 18.75% 46.15% Smart Kid 27.27% 45.16% 28.12% 15.38 Pension Plan 9.09% 6.45% 9.37% 19.23% Hospital Care 9.09% 6.45% 6.25% 11.53%
Above table shows the percentage of Investment in the different plans, Business people preferring to invest in child plan, other occupation people preferring to invest in life Stage RP, Service peoples preferring to invest in Traditional plans and child plan. Professional peoples prefer to invest in Traditional plan and child plan also life Stage RP.
Table 6: Income wise percentages Income 01-0.6 06-0.9 0.9-1.5 1.5-3 L 3.00-5 Traditional 0.% 24% 17.39% 34.78% 0% Income Percentage Life Stage Pension Smart Kid R.P Plan 40% 0% 20% 40% 24% 12% 28.26% 36.95 10.86% 17.39% 26.08% 8.69% 0% 100% 0% Hospital Care 40% 0% 6.52% 13.04 0% Total 100% 100% 100% 100% 100%
This table shows income wise investment of people in different plans. Up to 60000/- income peoples preferred to invest in Life Stage RP plan and also Hospital Care after preferring to pension plan. 60000/- to 90000/-income peoples preferred to invest in Life Stage RP and Traditional and Child plan. 90000/- to 1.5lack income peoples first preferring to child plan and Life Stage RP after Traditional plan. 1.5Lack to 3 lacks income peoples first preferring to Traditional plan after Smart Child plan also preferring to Life Stage RP.Above 3 lack to 5 lacks income peoples preferring to child plan.
Age wise investment in plans Traditional Life RP Child Plan Pension Heath
0 21-30 31-40 ages 41-50 50 & Above
Age wise investment in different plans, 21to 30 years peoples preferred to invest in Life Stage RP and Traditional plan also Health care. 31 to 40 years peoples preferred to invest in children plan, Life Stage RP & Traditional plan. 41 to 50 years peoples equally prefferred invest in all plans. Above 51 years prefferred to invest in pension plans.
Age w ise investm ent in Traditional plan 21-30 31-40 41-50 50 & Above
Above chart shows the percentage of investment Traditional plan. The figure shows that the age group of 21-30 were interested in traditional plans.
Age wise investment in Pension plans
21-30 18% 27% 31-40 41-50 50 & Above
Above chart shows percentage of investment pension plan by Age wise the most preference gives 41-50 years peoples.
Age wise investment in Child plan
21-30 31-40 41-50 0% 17% 50 & Above 10%
Above chart shows the investment of Age wise in child plan, 31-40 years peoples preferred to invest in child plan above 73%.
Age w ise investm ent in Health plans 21-30 31-40 41-50 0% 50 & Above
In age wise investment in health care plans 21-30 years peoples preferred to invest in this plan.
Below figure explain about Income wise investment in different plans. Up to 60000/- income peoples preferred in LIFE STAGE RP plan and Traditional plan. 60000/-to 90000/- income peoples preferred to invest in LIFE STAGE RP, second preference both Traditional and child plan. 90000/-to 1.5lacks income peoples CHILDRENS PLAN, LIFE STAGE RP and TRADITIONAL PLAN, PENSION PLAN last preference given to HEALTH CARE.
Income wise investment in Different Plans
Traditional 18 16 14 12 10 8 6 4 2 0 up to .60 lac .60 to .90 lac .90 to 1.5 lac income 1.5 to 3 lac 3 to 5.0 lac Life RP Children Pension Hospital
1.5Lacks to 3 Lacks income peoples given first preference to invest in TRADITIONAL, second preference given to CHILD PLAN, third & fourth preference given to LIFE STAGE RP and HEALTH CARE last preference to PENSION PLAN.
Income wise investment in Different Plans
Traditional 9 8 7 6 5 4 3 2 1 0 up to .60 lac .60 to .90 lac .90 to 1.5 lac income 1.5 to 3 lac 3 to 5.0 lac
Income wise in Traditional plan 60000/- to 90000/- income peoples and 90000/- to 3 Lacks income between peoples preferred to invest in Traditional plan this plan is risk coverage plan, people who feel that without their support the family may collapse. Because this plan is use to as risk coverage plan.
Income wise investment in Different Plans
Life RP 14 12 10 8 6 4 2 0 up to .60 lac .60 to .90 lac .90 to 1.5 lac 1.5 to 3 lac 3 to 5.0 lac
The above chart explain the investment of income wise in LIFE STAGE RP 60000/- to 1.5 lacks income peoples preferred to chose this plans. Beacuse peoples believe after crossing 50 years they need money so they invest in LIFE STAGE RP.
Income wise investment in Different Plans
Children 18 16 14 12 10 8 6 4 2 0 up to .60 lac .60 to .90 lac .90 to 1.5 lac 1.5 to 3 lac 3 to 5.0 lac
This chart show the income wise investment in CHILDERN PLAN 60000/- to 1.5 lacks income earning peoples preferred to invest in this plan. People who marry early those are not interested this plan. 31-40 years peoples preferred to invest this plan
Income wise investment in Different Plans
0 up to .60 lac .60 to .90 lac .90 to 1.5 lac income 1.5 to 3 lac 3 to 5.0 lac
These charts explain investment of income wise pension plan. All income groups equally preferring to take pension plan up to 1 Lack income peoples preferring to this plan in pension plan people take care interest when they worry about future after retirement. Maturity period mostly after 30 years, so people preferred to this plan.
Income wise investment in Different Plans
Hospital 3.5 3 2.5 2 1.5 1 0.5 0 up to .60 lac .60 to .90 lac .90 to 1.5 lac income 1.5 to 3 lac 3 to 5.0 lac
This graph shows the income wise investment in HEALTH CARE. Up to 60000/- income 40% of people choosing this plan, 90000/- to 1 lacks income peoples up to 1Lack income people preferring 20% this plan.Beacuse this plan gives to advantages to policy holders and their family for all kinds of Medical expenses. Client can claim a single rupee for medical treatment, so people preferred this policy to face all kind of diseases.
Investment Philosophy & Strategy As a life insurance company, we know that our customers trust their monies with us for the long-term, and hope to use these funds to protect and achieve the dreams and aspirations of their families. With this in mind, our investment focus is to ensure long term Safety, Stability and Profitability of our customers’ funds. Our aim is to achieve superior returns for a given level of risk. In order to meet this objective, we have developed an investment framework that is based on a sound investment process coupled with a rigorous and sophisticated risk management strategy. Investment process Our investment management process relies on analytics & research to achieve positive risk-adjusted returns in each product category, be it for child plans, retirement solutions or other endowment-related funds. We clearly define an asset allocation strategy that matches the risk characteristics of the corresponding liability, or, put simply, – we ensure that the promise we have made to the customer will be met. The investment decision-making process has three tiers, each of which has varying degrees of discretion and considers detailed research in order to decide the best portfolio composition. The emphasis is to segregate the decision to buy scrip from the process of actually buying it, and thereby institutionalize decision-making. Our investment management team that has a cumulative experience of more than 50 years in various aspects of market like research, trading, risk management etc. The top management teams at ICICI Bank and Prudential Corporation Asia ably guide the investment team in making the strategic asset allocation and continuously monitor the performance of the investment team.
Investment decisions Debt investments target a mix of government and corporate bonds. The investment process is backed by intense research and analysis and comprises qualitative as well as quantitative measures. We make calls after carefully studying all the factors that influence interest rate direction, such as RBI policy and stance, inflation, growth of money supply, credit off-take, fiscal deficit, and global interest rate scenario and market sentiment. Detailed research reports obtained from credit rating agencies form the primary basis for investment decisions. In addition, the team’s assessment of economic cycle, industry health, its perception of management quality and demand and supply situation in stock of a particular entity influences the investment decision. The investments in equity are targeted at long-term capital appreciation. We are not bound by traditional pure value or growth driven strategy and continuously look where both co-exist. Portfolio diversification lies at the core of our investment strategy. We have a clearly articulated benchmark for each of our funds and have well-defined deviation limits vis-à-vis benchmark at both the sector and stock level. W e combine a top-down and bottom-up approach while choosing stocks for our investment, considering several factors like management quality, performance track record (in relation to the sector), dividend track record, transparency in disclosures, execution capabilities etc. Our equity portfolio has a large cap bias, as we believe that they offer higher risk adjusted returns. However we do invest in mid-caps provided they satisfy at least one of the criteria viz. presence in high growth industry, one of the industry segment leaders, niche player, offer a play on outsourcing opportunity or structural turnaround in performance. Thus the focus is on ensuring consistent, stable and better risk adjusted performance over long term for our policyholders.
Benchmarks To ensure that we maintain a strict discipline in managing policyholders’ funds, we have clearly articulated benchmarks for various unit-linked funds. In addition we also have strict deviation limits vis-à-vis benchmarks that ensure that we do not take undue exposure in any particular sector or stock. It is our endeavor to give better returns than the benchmark to policyholders for all the funds that we manage. In summary, our investment process is a function of extensive research and is based on data and reasoning, backed by superior risk control measures. This, we believe, would enable us to deliver to our customers safety, stability and returns on their investments with us. SWOT ANALYSIS Strengths • • • • • Flexible management system. Brand image, business experience and good products-cum-services. The agents are carefully chosen with good communication skills. Service quality which is the crux of their mission. Large network branches which helps customers to transact with the company
Weaknesses • • • High targets for financial advisors Employees are not highly qualified though Most of their expenditure is on advertising
Opportunities: 1) It is easy to minimize the cost in service industry, to reduce the
Cost service ensures the only knowledgeable person is deputed, who could minimize the administrative charges and mortality charges by optimum utilization of available human resource. 2) When competitive move is high. Differentiation is highly Preferred as ICICI
Prudential Life Insurance has different features viz. Partial withdrawal allowed. Deposition of extra money than premium for saving etc. in its plan. 3) As both of the partners of ICICI Prudential Life Insurance ltd.
Viz. ICICI Bank and Prudential are well established financial institutions having solid base in the finance market, which may make them able to play their potential role in life insurance sector too. 4) IRDA also regulated well and has designed the systematic Procedure in this sector, which will also control private companies in the public interest. 5) 6) As there is no supplier other than customer. There is no barrier As the population of India is second largest in the world with
From the bargaining power of the supplier in the service industry. Increasing income and standard of loving, the potential of the life insurance Industry also increases with it.
Threats • • Employees dedication can become vulnerable because of the risk factor Since qualification is not a major criterion, knowledge about insurance is restricted
FINDINGS AND RECOMMENDATIONS
The project study report has the following findings: • • • • • • • • • • The organization functions on the decision taken by the unit level manager and zonal head As of date, ICICI Prulife has sold over 1.5 lakhs of insurance policies Due to the increasing concern of people towards their health/life, the life insurance business has good prospects Due to the increase in consumerism, new products are launched regularly Communicating to customer queries is not that remarkable Perks and incentives are not appreciatable Employees are given less importance than that of the targets set Punctuality is not an alarming factor at all in ICICI Prulife Flexibility at work is encouraged They are ranked no 1 in promotional ratings, but they also said ICICI PRUDENTIAL Life Insurance Co.Ltd.is a branded company and it does not want any promotional strategy often. • ICICI PRUDENTIAL Life Insurance Co.Ltd. Advertisements like Chintamani and Jeetey Raho have created great impacts on their future investments.
There are some recommendations for the ICICI Prudential Limited, which may help them to revise their different plans, which I have derived from the former comparison, are following. 1. First of all according to my survey only 37% people are interested in private life insurance companies, hence each private company should try to generate the public awareness and try to win the trust of the public. 2.While life insurance companies from their new plans they should consider the features of the other substitute financial product viz. NSC, KVP, IVP, PPF, Infrastructure bond etc. 3. While any life insurance company goes for the marketing it can consider the age, occupation and income to investor for assisting him for proper plan as per my analysis of Potential Life Insurance sector”. 4. The Child plan “Smart Kid” of ICICI Prudential Life Insurance is really different Product but company should also make available to average earning family wit low premium which may target high potential market i.e. parity of price. 5. ICICI Prudential Life Insurance should provide the facility to recover the premium direct from salary of the people as facilitated by LIC. 6. ICICI Prudential Life Insurance should also develop plan for handicap dependent, which has tax benefit under sec.80DD as the LIC has Jeevan Aadhar Plan.
7. ICICI Prudential Life Insurance should also provide facility of premium collection center, which can collect premium in cash as well as local bank cheques. 8. ICICI Prudential Life Insurance should open extension counter wherever they want to start or grow their business. 9. Various print media like broachers and posters should also be made local language, which could be easily understood and caught the eyes of each type of customer.
CONCLUSION From the analysis of my study as my project, I can conclude that Life Insurance sector is having really very high potential, Including for private players. This sector is also contributing in the growth of economy of the country, which directly leads to improvement in the standard of living of the people of India. Further ICICI Prudential Life Insurance Company Ltd. Is also fast growing organization. ICICI Prudential Life Insurance has substantial role of play among private players in Life Insurance Sectors. It can also improve its performance further by considering mention recommendations in this project.
ICICI Prudential Life Insurance having seven products, Plans of Insurance. The Study of Life Insurance Market shows the possession of ICICI Prudential Life Insurance, its accuping good position in Market. From this study of Market Survey people liking of ICICI Prudential Life Insurance plans which are more useful to customers.
CHAPTER VII QUESTIIONNAIRE
QUESTIONNAIRE 1. Name. __________________________________________________ 2. Address__________________________________________________ ____________________________________________________ 3. Telephone No.: (R)__________ 4. Do you invest in Insurance? Yes (O) __________ (M) ______________ No
5. Which type of company would you like to invest? Govt. Company Private Company, (ICICI PRU LIFE.) 6. Age Group: 21-30 Yrs. 31-40Yrs. 7. Occupation: Service Business 8. Income Group: Rs.60000&below Rs.60001-80000 Rs.80000 -1.5lac 9. Professional other (Pls.specify) ______________ Rs.1.5lac-3.0lac Rs.3.0lac-5.0lac Rs.5.0lac&above 41-50 Yrs. 51-60 Yrs. 61 and Above
In which type of plan you invest? Traditional Child plan Life Stage RP Pension Plan Health Care
10. Which portfolio strategy would you prefer? Fixed Life cycle based 11. In which found would you like to invest? Equity Debt 12. Reason for Investment in your choosing plan? _______________________________________________________
1. Principles of Marketing Philip Kotler & Amstrong 2. Marketing Research Philip Kotler & DD.Sharma 3. www.iciciprulife.com 4. www.icici.com 5. www.irda.com 6. IRDA book