An over view of ICICI Prudential Insurance Co.

Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

Rajendran Pradeep Kumar | FS09-20

AN OVERVIEW OF ICICI
MFS -
101
PRUDENTIAL LIFE INSURANCE
COMPANY

Page | 0
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

Contents:
1. Introduction
2. Definition................................................................................ 01
3. Functions of insurance............................................................ 01
4. Sources of income................................................................... 02
5. Fundamentals of insurance..................................................... 03
6. Nature of insurance contracts................................................. 04
7. Risk.......................................................................................... 04
8. Overview of the industry......................................................... 06
9. Insurance sector reforms........................................................ 08
10.Potentiality of insurance in Indian market.............................. 10
11.ICICI Prudential Life Insurance – Profile of the organisation... 11
12.Company vision........................................................................ 12
13.Board of directors.................................................................... 13
14.Products insurance solutions for individuals........................... 14
15.Insurance Plans........................................................................ 16
16.Customer service and operations............................................. 22
17.Training at ICICI Prudential...................................................... 24
18.Career orientation program.................................................... 25
19.Awards..................................................................................... 26
20.Problems of the organisation.................................................. 26
21.Recommendations................................................................... 27
22.Bibliography............................................................................ 28

Page | 1
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

Introduction
The entire effort of human life is to proceed from uncertainty to certainty. The rigmarole of
life proceeds with first acquiring the wherewithal to earn a living and then striving for its
betterment and ensuring that the comfort and pleasure derived from a physical commodity or
a human being continues. It is at the latter stage that the mechanism of Insurance comes in
play.

The concept of insurance is in essence related to the protection of the economic value of
assets. Every asset whether physical or in form of a human being has a value. The asset is
built up in the expectation that, either through the income generated there from or some other
output, some needs of the individual would be met. For example, in the case of an industry its
production is sold and income generated. In the case of a vehicle, it provides comfort and
convenience in transportation.

1ST Insurance in India started from 1817.Basically it is divided into two types such as
General insurance & Life insurance. After freedom there are 245 companies in India who
provide life insurance. In 1956 finance minister ‘C.D.Deshmukh’ seize all those companies.
There is only one life insurance company from1956-2000 that is ‘LIC of India’. In 1993 the
finance secretary ‘R.N.Malhotra’ introduce IRDA(Insurance Regulatory Development
Authority) act. After that private life insurance companies came into existence. HDFC is the
1st private insurance company in India. After that ICICI prudential Life insurance corporation
started its operation. From 2001-2008 ICICI place the 1st position among all private insurance
company. Now days there are 12 private life insurance companies.

As compare to past now a days insurance companies provides not only life cover plan but
also provides investment plan. In recent trend there are two type of plan provided by the Life
insurance company such as:

 Traditional Plan
 ULIP (Unit Linked Insurance Plan)

Traditional Plan consisting of a long maturity period where as ULIP consists of both
insurance and investment having shorter maturity period.

Page | 0
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

Fundamental definition:
In the words of ‘D.S. Hansell’, “Insurance accumulated contributions of all parties
participating in the scheme.”

Contractual definition:
In the words of ‘Justice Tindall’, “Insurance is a contract in which a sum of money is paid to
the assured as consideration of insurer’s incurring the risk of paying a large sum upon a given
contingency.”

Characteristics of insurance:
♦Sharing of risks

♦Cooperative device

♦Evaluation of risk

♦Payment on happening of a special event

♦The amount of payment depends on the nature of losses incurred.

♦The success of insurance business depends on the large number of people insured against
similar risk.

♦Insurance is a plan, which spreads the risk and losses of few people among a large number
of people.

♦The insurance is a plan in which the insured transfers his risk on the insurer.

♦Insurance is a legal contract which is based upon certain principles of insurance which
includes utmost good faith, insurable interest, contribution, indemnity, causes proximal,
subrogation, etc.

♦The scope of insurance is much wider and extensive.

Functions of insurance:
Primary functions:

1. Provide protection: - Insurance cannot check the happening of the risk, but can provide for
the losses of risk.

Page | 1
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

2. Collective bearing of risk: - Insurance is a device to share the financial losses of few
among many others.

3. Assessment of risk: - Insurance determines the probable volume of risk by evaluating

various factors that give rise to risk.

4. Provide certainty: - Insurance is a device, which helps to change from uncertainty to

certainty.

Secondary functions:

1. Prevention of losses: - Insurance cautions businessman and individuals to adopt suitable

device to prevent unfortunate consequences of risk by observing safety instructions.

2. Small capital to cover large risks: - Insurance relives the businessman from security
investment, by paying small amount of insurance against larger risks and uncertainty.

3. Contributes towards development of larger industries.

Other Function:

Means of savings and investment: Insurance companies are business houses. The product
they sell is financial protection. To succeed and survive, they must cover their costs, which
include payments to cover the losses of policyholders, as well as sales and administrative
expenses, taxes and dividends.

Sources of income
Insurance companies have two sources of income for covering these costs:

Premiums and Investment income. The premiums are collected on a regular basis and
invested in Government Bonds, Gilt, stocks, mutual funds, real estates and other conservative
avenues. However, investment income depends on market conditions, interest rates, economy
etc. and varies from year to year. Because of the uncertainty associated with the investment
income, insurance companies must generate enough income from premiums to cover the bulk
of their expenses.

The risk becomes insurable if the following requirements are complied with:

♦The insured must suffer financial loss if the risk operates.

♦The loss must be measurable in money,

♦The object of the insurance contract must be legal.

♦The insurer should have sufficient knowledge about the risks he accepts.

Page | 2
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

Fundamentals of Insurance

The fundamental Principles of the Insurance are as follows:

♦Insurable Interest: Insurable interest means the legal right to insure. Insurable Interest is a
must and only then the insurance contract is enforceable at law. This principle differentiates a
Contract of insurance from wager. Lack of insurable interest renders the contract null and
void. For Insurable Interest to exist there must be Property, Rights, Interest, Life or Liability;
this must be insured and the Insured should have a legally recognizable relationship thereto.
The Insured should be benefited by the safety of the property or is prejudiced by its loss.
Insurable Interest may arise in the following manner:

1. Ownership: Absolute ownership entitles the owner to insure the property. This is the
commonest method whereby Insurable Interest arises.

2. Partial Interest is also insurable e.g. a mortgagee. A creditor can also insure the life of his
debtor but only to the extent of his loan.

3. Administrators and executors i.e. officials appointed by a court of law to take care of a
property may also insure the property.

4. Relationship does not automatically constitute insurable interest. The only relationship
recognized by law for this purpose is the one between a husband and wife.

5. An employer can insure his employee under a Personal Accident Policy as he has
insurable interest in them.

♦Proximate cause: Generally, the claims are payable under insurance policies if they arise
out of events which are proximately caused by the insured perils. In other words, the
proximate cause of the event has to be peril covered by the policy, so as to constitute a valid
claim.

♦Contribution: An insured may have several insurance on the same subject matter. If he
recovers his loss under all these insurance, he will obviously make a profit out of loss. This
will be an infringement of the principle of indemnity. Common Law has, therefore, evolved
the doctrine of contribution whereby the insured is prevented from recovering more than his
loss, despite his having several insurance on the subject matter.

♦Subrogation: The principle of indemnity seeks to prevent the insured from making profit
out of loss. However, it may so happen that that the insured may recover his loss under his
policy and he may also have rights against third parties. If, after the insurance claim is settled,
the insured is allowed to enforce his rights against third parties and to retain whatever
damages he receives from them, he will certainly make a profit and the principle of indemnity
will be infringed.Common Law has therefore, evolved the doctrine of subrogation as
corollary to the principle of indemnity. Subrogation may be defined as the transfer of rights

Page | 3
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

and remedies of the insured to the insurers who have indemnified the insured in respect of the
loss. The Common Law right of subrogation is implied an all contracts on indemnity, as it
arises only after payment of loss.

♦Utmost Good Faith: In all General Insurance contracts we know that a property or interest
or liability or life is offered for insurance and the insured has to take decisions on the
acceptance of the proposal. If he decides to accept the proposal a premium commensurate
with the risk has to be charged. To enable him to take necessary decision in this regard, the
insurer must have certain facts about the risk offered. These facts influence the judgment of
the insurer in deciding about the acceptance or otherwise of the risk and the rate of premium
to be charged, if accepted. Such facts are known as material facts.

Nature of Insurance Contracts

When the insured pays the premium and the insurers accept the risks, the contract of
insurance is concluded. The policy issued by the insurers is the evidence of the contract. The
contract of insurance, like any other contract, for example a contract for the sale of goods, is
subject to the general law of contract as embodied in the

Indian Contract Act, 1872

According to this Act, a contract must have certain essential features in order to make it
legally valid and enforceable. The following are the essential elements:

a) Offer and acceptance: Usually, the offer is made by the proposer, and acceptance made by
the insurer.

b) Consideration: This means that the contract must involve some mutual benefit to the
parties. The premium is the consideration from the insured and the promise to indemnity is
the consideration from the insurers.

c) Agreement between the parties: Both the parties should agree to the same thing in the same
sense.

d) Capacity of the parties: Both the parties to the contract must legally competent to enter into
the contract. For example, minors cannot enter into insurance contracts.

e) Legality: The object of the contract must be legal and the contract should not violate any
legal requirements. E.g. no insurance can be had for smuggled goods.

Risk
Reasonable or not, risks are inescapable in business. Every business venture is something of a
gamble, because the possibility of loss is as real as the prospects for profits. And even though

Page | 4
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

managers do everything possible to ensure that their business succeed, they cannot guard
against every conceivable form of risk.

Pure Risk versus Speculative Risk

♦Pure Risk: Events representing the kind of risk that no business can predict or escape,
known as Pure Risk, it is the threat of a loss without the possibility of gain. In other words, a
disaster such as avalanche or fire is costly for the business it strikes, but the fact that no
disaster occurs contributes nothing to a firm's profit.

♦Speculative Risk: It is the type of risk that offers the prospect of making profit - and
prompts people to go into business in the first place. Every business accepts the possibility of
losing money in order to make money.

Approaches to Risk Management

Risk Management is the process of reducing the threat of loss due to uncontrollable events.
Steps in selecting a risk management approach:

♦To identify all the things those can possibly go wrong. ·

♦To consider the probability that an event will occur.

Techniques of Risk Management are:

1. Avoiding the Risk: When a company avoids risk, it eliminates the possibility that a
particular event will occur. To avoid the possibility of a suit, for example, not to produce any
products -which would, of course, eliminate both the threats of a lawsuit and the opportunity
to profit. With rare exceptions, avoiding risk entirely is extremely difficult.

2. Reducing Risk: A more practical approach is to reduce the risk by taking precautions.
Risk reduction is an important element in most companies' approach to risk management.
Typical precautions include putting safety locks on doors to prevent robberies, installing
overhead sprinklers to minimize fire damage, and periodic checking motor vehicles to
prevent accidents.

3. Assuming risk: Many companies draw on current revenues or set aside a "Contingency
Fund" to cover unexpected losses. Setting aside money on regular basis could be cheaper than
purchasing insurance. Moreover, the company can earn interest on the reserved cash. Such
assumption of risk is also called self-insurance or risk retention.

4. Transferring the risk: Most companies still rely on outside insurance firms for financial
protection against catastrophic losses. In buying insurance, companies transfer the risk of loss
to an insurance firm, which agrees to pay for certain types of losses. In exchange, the
insurance firm collects a fee known as a premium.

Page | 5
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

Insurable and Uninsurable Risks:

Insurable risks: An insurable risk - one that an insurable company will cover - Generally
meets the following requirements. The peril insured against must not be under the control of
the Insured. This means, of course that insurer do not pay for losses that are intentionally
caused by an insured, caused at the Insured's direction, or caused with the insured's collusion.
For example, a fire insurance policy excludes loss caused by the Insured’s own arson. It does,
however, include loss caused by an employee's arson. Losses must be calculable, and the cost
of insuring must be economically feasible. To operate profitably, insurance companies must
have data on the frequency of losses caused by a given peril. If this information covers a long
period of time and is based on a large number of cases, Insurance companies can usually
predict quite accurately how many losses will occur in the future. For example, the insurance
companies to fix up the rate of premium of Personal Accident Insurance may use the
information of the number of people who will die each year in India in accidents. The peril
must be unlikely to affect all insured simultaneously. Unless an insurance company spreads
its coverage over large geographic areas or a broad population base or different classes of
Insurance, a single disaster might force it to pay out all its policies at once. The possible loss
must be financially serious to the Insured. An Insurance company could not afford the
paperwork involved in handling numerous small claims of a few Rupees each. As a result,
many policies have a clause specifying that the insurance company will pay only that part of
a loss greater than an amount - the deductible or excess - stated in the policy. The excess
represents small losses that the Insured has to absorb.

OVERVIEW OF THE INDUSTRY

Origin of life insurance

Life Assurance 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 assurance in India

In India, after 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.

Page | 6
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

Originally it restricted to forms other than life assurance. 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 (Manav
Dharma Shastra). The word `Yogakshema’ is used in the Rig Veda suggesting that some
form of community insurance was practiced by the Aryans in India over 3000 years ago. In
India during Buddhist period burial societies existed which were mutual in their character and
used to help a family by building a house, protecting the widow, marrying the girls.

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 movement 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. For controlling investment of funds, expenditure and
management, a comprehensive Act was passed known as `The Insurance Act 1938’. For
controlling the affairs, the office of Controller of Insurance was established. The act was
extensively amended in 1950.

In the year 1955, approximately 170 Insurance Offices and 80 Provident Fund Societies had
been registered for transacting Life Assurance business in India. There were, however, no full
guarantees to the policyholders. The concept of trusteeship was lacking. Many insurance
companies went into liquidation. There were malpractices in insurance business. For
achieving the following purposes it was felt necessary to nationalize the insurance business in
India.

(i) To provide security to the policyholders.

(ii) To utilize the funds for nation-building activities.

(iii) To avoid cut throat competition.

(iv) To abolish mal-practices.

(v) To spread the insurance message to the rural areas.

The first step in this direction was taken by the Government of India by issuing the Life
Insurance (the Emergency provisions) Ordinance, 1956 on 19th January, 1956. The then
Finance Minister, Shri C. D. Deshmukh mentioned the purpose of nationalisation as reaching
the goal of socialistic pattern of society, rendering genuine service to the people in the rural
area. The Life Insurance Corporation Act (Act XXXI of 1956) was passed by the Parliament
in June 1956 which came in force on 1st July 1956. The Life Insurance Corporation of India
came into existence on 1st September 1956.

Page | 7
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

Insurance Sector Reforms

Having looked at the insurance sector, let us look at the efforts made by the government to
make the industry more dynamic and customer friendly. To begin with, the Malhotra
committee was set up with the objective of suggesting changes that would achieve the much
required dynamism.

The Malhotra Committee Report

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N.
Malhotra, was formed to evaluate the Indian insurance industry and recommend its future
direction. In 1994, the committee submitted the report and gave the following
recommendations:

Structure:

♦Government stake in the insurance Companies to be brought down to 50%.

♦Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent-corporations.

♦All the insurance companies should be given greater freedom to operate.

Market Regulations

♦Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the
industry.

♦No Company should deal in both Life and General Insurance through a single entity.

♦Foreign companies may be allowed to enter the industry in collaboration with the domestic
companies.

♦Postal Life Insurance should be allowed to operate in the rural market.

♦Only one State Level Life Insurance Company should be allowed to operate in each state.

Regulatory Body

♦The Insurance Act should be changed.

♦An Insurance Regulatory body should be set up.

♦Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.

Page | 8
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

Investments

♦Mandatory Investments of LIC Life Fund in government securities to be reduced from 75%
to 50%.

♦GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time).

Customer Service

♦LIC should pay interest on delays in payments beyond 30 days.

♦Insurance companies must be encouraged to set up unit linked pension plans.

♦Computerization of operations and updating of technology to be carried out in the insurance

industry.

Overall, the committee strongly felt that in order to improve the customer services and
increase the coverage of the insurance industry should be opened up to competition. But at
the same time, the committee felt the need to exercise caution as any failure on the part of
new players could ruin the public confidence in the industry. Hence, it was decided to allow
competition in a limited way by stipulating the minimum capital requirement of Rs.1 bn. This
amount is not very high for foreign firms, as it translates to only about US$25 million.
Further, to date it is unclear whether equity should be payable in one go or should be brought
in as installments. Also, the foreign equity participation was to be restricted to only 40%.The
committee

felt the need to provide greater autonomy to insurance companies in order to improve their
performance and enable them to act as independent companies with economic motives. For
this purpose, it had proposed setting up an independent regulatory body.

The industry and analysts find that there is lack of clarity in the following areas:-

♦Though coverage of rural areas was to be made compulsory, it raises the question as to who
would subsidies the rural policies as they would be difficult to service and hence costs will go
up.

♦There is some confusion with respect to investments. Where the funds should be invested?
Currently 70% of the funds with LIC & GIC are invested in Government securities. Would
new entrants be allowed to invest in GOI securities?

♦The report also does not enumerate exit options available to the new entrants. In the event of
failure, there should be an arrangement made whereby the other Companies pool in to bail the
customers, who in all probability would be middle class individuals.

Page | 9
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

Potentiality of Insurance in Indian Market

Marketing inefficiency of general insurers has kept society in dark even when so many
personal as well as commercial lines of insurance covers are available for them. Insurers have
failed to identify the need of the individual risk factors and thereafter selecting proper market
segments and developing demand of these needs by adopting proper marketing mix. There is
great scope of commercial line of insurance as we are developing at a very fast rate but the
potentiality and scope of personal lines of insurance is vast as this area is still under-tapped.
Product designing and pricing is also simple and growth of this portfolio is guaranteed in this
country which has a base of over 100 crore population, where there are about 25 crore
dwellings, 20 crore schools, colleges and educational institutions and about 5 crore small and
big shops. But despite this the Indian insurers share in personal line of business is very low or
negligible.

There are enormous growth opportunities to Indian as well as foreign insurers because of
such a huge base of population there is ample scope to introduce the new line of covers as per
the changing needs and to increase the per capita share of the insurance.

By encouraging risk transfer by investing small portion of the savings of the individuals.By
opening up the sector far more opportunities has came up in insurance and reinsurance
market. After privatization of this sector presence of the foreign players has also increased.
Therefore the insurers, in time to come, will have to change their attitude from selling of the
product to marketing of the protection needs of the insured and for this is required is:

♦ Effective product planning

♦ Suitable pricing

♦ Efficient promotion and physical distribution.

♦ Proper physical evidence and good and well trained sales force.

Page | 10
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

PROFILE OF THE ORGANISATION:

ICICI Prudential Life Insurance

ICICI Prudential Life Insurance is a joint venture between the ICICI Group and Prudential
PLC, of the UK. ICICI started off its operations in 1955 with providing finance for industrial
development, and since then it has diversified into housing finance, consumer finance, mutual
funds to being a Virtual Universal Bank and its latest venture Life Insurance.

ICICI Bank:

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 about US$ 95 billion as of March 31,
2009. 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

Foreign Partner:

Established in 1848, Prudential PLC. of U.K. has grown to be the largest life insurance and
mutual fund company in U.K. Prudential PLC. has had its presence in Asia for the past 75
years catering to over 1 million customers across 11 Asian countries.Prudential is the largest
life insurance company in the United Kingdom (Source: S&P's UK Life Financial Digest,
1998).

ICICI and Prudential came together in 1993 to provide mutual fund products in India and
today are the largest private sector mutual fund company in India. Their latest venture ICICI
Prudential Life plans to take care of the insurance needs at various stages of life.

ICICI Prudential Life Insurance was established in 2000 with a commitment to expand and
reshape the life insurance industry in India. The company was amongst the first private sector
insurance companies to begin operations after receiving approval from Insurance Regulatory
Development Authority (IRDA), and in the time since, has taken several steps towards its
realizing its goal.

Page | 11
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

The jo int s tre ng ths

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

complementing each others

Brand strength Reputation

Insurance
expertise
Infrastructure

Customer base PRUDENTIAL Product

ICICI
Market Innovators Distribution

Local knowledge Operations

Ab
out The Partners

ICICI Bank (NYSE:IBN) is India’s second largest bank with an asset base of Rs. 106812
crore. ICICI Bank provides a broad spectrum of financial services to individuals and
companies. This includes mortgages, car and personal loans, credit and debit cards, corporate
and agricultural finance. The Bank services a growing customer base of more than 7 million
customer accounts and 5 million bondholders accounts through a multi-channel access
network. This includes about 450 branches and extension counters, 1675 ATMs, call centres
and Internet banking (www.icicibank.com). 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.

Established in 1848, Prudential plc is a leading international financial services company in

the UK, with some 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.

Company Vision

To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class
people and service.

This is what ICICI Prudential hope to achieve by

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

Page | 12
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

•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 faster growth and learning for ICICI Prudential
employees

•And above all, building transparency in all ICICI Prudential 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.

Board of Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from
the finance industry both from India and abroad.

Ms. Chanda D. Kochhar, Chairperson

Mr. N. S. Kannan, Director

Mr. K. Ramkumar, Director

Mr. Barry Stowe, Director

Mr. Adrian O’Connor, Director

Mr. Keki Dadiseth, Independent Director

Prof. Marti G. Subrahmanyam, Independent Director

Ms. Rama Bijapurkar, Independent Director

Mr. Vinod Kumar Dhall, Independent Direct

Mr. V. Vaidyanathan, Managing Director & CEO

Page | 13
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

Management Team

The ICICI Prudential Life Insurance Company Limited Management team comprises reputed
people from the finance industry both from India and abroad.

Mr.V.Vaidyanathan, Managing Director & CEO

Ms. Anita Pai, Executive Vice President - Customer Service, Technology & Marketing

Dr. Avijit Chatterjee, Appointed Actuary

Mr. Puneet Nanda, Executive Vice President

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 13 products can be enhanced with up to 4
riders, to create a customized solution for each policyholder.

Savings Solutions:

ICICI Pru Save n Protect is a traditional endowment savings plan that offers life protection
along with adequate returns.

ICICI Pru CashBak is an anticipated endowment policy ideal for meeting milestone
expenses like a child's marriage, expenses for a child's higher education or purchase of an
asset.

Protection Solutions:

ICICI Pru LifeGuard is a protection plan, which offers life covers at very low cost. It is
available in 3 options - level term assurance, level term assurance with return of premium and
single premium.

Child Solutions:

ICICI Pru SmartKid: 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.

Market-linked Solutions:

ICICI Pru LifeLink: is a single premium Market Linked Insurance Plan which combines
life insurance cover with the opportunity to stay invested in the stock market. .

Page | 14
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

Retirement Solutions:

ICICI Pru ForeverLife: is a retirement product targeted at individuals in their thirties.

Market-linked retirement productsICICI Pru

LifeTime Pension: is a regular premium market-linked pensionplan

ICICI Pru LifeLink: Pension is a single premium market-linked pension plan.

Single Premium Solutions:

ICICI Pru AssureInvest is a single premium savings product with life cover for terms of 5,
7 or 10 years.

ICICI Pru ReAssure is a retirement product for senior citizens who are on the verge of
retirement or have just retired.

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

Group Insurance Solutions:

ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance
benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru''s group gratuity plan helps employers fund
their statutory gratuity obligation in a scientific manner. The plan can also be customized to
structure schemes that can provide benefits beyond the statutory obligations.

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution
superannuation scheme to provide a retirement kitty for each member of the group.
Employees have the option of choosing from various annuity options or opting for a partial
commutation of the annuity at the time of retirement.

ICICI Pru Group Term Plan: ICICI Pru''s flexible group term solution helps provide
affordable cover to members of a group. The cover could be uniform or based on
designation/rank or a multiple of salary. The benefit under the policy is paid to the
beneficiary nominated by the member on his/her death.

Flexible Rider Options:

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

Page | 15
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

1.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 sum assured under
the policy. If the death occurs while traveling in an authorized mass transport vehicle, the
beneficiary will be entitled to twice the sum assured as additional benefit.

2. Accident benefit: This rider option pays the sum assured under the rider on death due to
accident.

3.Critical Illness Benefit: protects the insured against financial loss in the event of 9
specified critical illnesses. Benefits are payable to the insured for medical expenses prior to
death.

4.Major Surgical Assistance Benefit: provides financial support in the event of medical
emergencies, ensuring that benefits are payable to the life assured for medical expenses
incurred for surgical procedures. Cover is offered against 43 different surgical procedures.

Insurance Plans

Savings Plans:

Most endowment policies are a good way of saving for the future. A policy can be designed
to make your savings grow and have them available to you at the end of a fixed number of
years. Or, a policy could provide you with an income every three or four years. You can
browse through these policies to find one that best suits your needs:

•SmartKid - a superior way to guarantee your child’s future no matter what the uncertainty.

•LifeTime - a complete market-linked insurance plan that adapts itself to your changing
protection and investment needs, throughout a lifetime.

•Save'n' Protect - a traditional endowment savings plan that offers both high returns and
protection.

•CashBak - an endowment savings plan that allows you to get back substantial survival
benefits without having to wait till the maturity date.

Depending on your particular needs, Savings Plans could allow you to do one or more of the
following:

•Plan For Tangibles: buy that fashionable car, that huge refrigerator, etc.

•Plan For A Cosy Nest: by facilitating the purchase of that home you have always dreamt of.

Page | 16
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

•Plan For Milestones: ensure a good education for your children, children's wedding, etc.

•Save on Deferred Taxes: because the interest income and maturity benefits of the Policy are
tax exempt.

•Lifestyle Planning: maintain your lifestyle - even if your income was to reduce in the future.

•Legacy Creation: buy property; invest in shares, bonds, etc. for your children or
grandchildren

•Attain Greater Heights: ensure that your children's education continues undisrupted.

Protection Plans

We all hope to live a full life till a ripe old age... to ensure our children's sustenance and
healthy growth. But what if a sudden disability or illness strikes? Besides the grief and the
pain, such an event also completely disrupts life for all the people who are financially
dependent on us. Our life insurance policies offer a comprehensive range of protection
benefits:

•Lifeguard - A low cost-high protection plan that offers protection over a specified period.

•Riders - Additional benefits that one can add on to the policy. The rider can be opted for at
the time of taking the basic policy. Additional premium is charged for each rider.

An insurance policy can be tailor made to provide protection to you and your loved ones. If
something were to happen to you, it can help:

•Safeguard Your Better Half: ensure life's continuity for your loved one.

•Dear and Near Ones: ensure continuity of lifestyle for your dependents.

•Attain Greater Heights: ensure your children's education continues undisrupted.

Unforeseen circumstances: bear the cost of fighting an illness, disability, etc.

Retirement Plans

Most of you picture yourselves enjoying the fruits of labor after retirement, going on your
dream vacation, or helping your children's career take wing. But do you realize that financing
all this will most likely depend partly on your personal savings? Because personal savings
and investments represent a significant source of retirement income for many people, you can
never save too much.

Currently, you are at a stage where you are juggling many roles, as nurturing parents, dutiful
caregivers to elders, supportive life partners, while trying to maintain a career. It is too easy

Page | 17
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management

to get carried away handling and solving the day-to-day problems to not look into your
retirement needs. It may also seem too far away to be of concern. But a look at the issues
below will make the need for some strategic planning at this stage amply clear.

Today, thanks to a healthier lifestyle and advances in medicine, the average Indian lives
longer. This makes the challenge of accumulating enough money for retirement even more
difficult, since it may have to last longer. Also, with the falling interest rate scenario and the
rising costs of medical expenses retirement means monetary uncertainty for most of us. More
so, because there is also the ever-persistent evil of inflation, which erodes your purchasing
power. The graph below illustrates how much Rupees will 10,000/- amount to after some
years:

Inflation erodes your purchasing power

8000
7000
6000
5000 Inflation rate
4000 at 10%
3000 Inflation rate
at 5%
2000
1000
0
5yr 10yr 20yr 30yr

Therefore, the message is simple - no matter whether you are 30 or 50, you should start
planning early to have a healthy retirement kitty. (See graph below for an illustration)

200
150
100
50 Saving

0
A B

Page | 18
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management
As can be seen the cost of delaying is high. Situation A is when you are saving Rs 10000
annually from the age of 25 to 34 years and Situation B is when you save the same annual
amount from the age of 35 to 59 years. As can be seen in the example, even after investing
your money for a 2.5 times longer duration, the maturity value in the second case is much
lesser (the figures are based on a hypothetical interest rate of 10%). The longer your money is
allowed to grow at a compounded rate, the more dramatic will the difference be eventually.

Therefore, the message is simple - Put Time on Your Side and Start Early.

ICICI Prudential Life Insurance believes in the philosophy of providing meaningful and
comprehensive insurance solutions to plan your retirement. Our insurance solutions are the
most optimal tools to plan your retirement because they give you Safety, Liquidity, Tax
benefits, Health cover and Life protection and thus ensure that you are comprehensively
covered.

ICICI Prudential offers flexible products for planning your retirement:

ForeverLife - A deferred annuity plan that helps you save for retirement while providing you
life insurance protection.

LifeLink Pension - A single premium plan which allows you to park a lump sum amount for
a secure future.

LifeTime Pension - A plan which gives you the twin benefit of market-linked annuity and
life insurance cover.

ReAssure - A plan that helps you invest your money prudently and safely and offers you the
benefit of a regular income while providing you life insurance protection.Depending on your
particular needs, our Retirement Solutions could allow you to do one or more of the
following:

Maintaining the Same Living Standard Post-retirement:

Get your retirement monies to earn you the benefit of a regular income while providing life
insurance protection. So now you can really enjoy even your post-retirement days.

Provide for a Lifetime of Pension:

Annuities can play a valuable role in retirement saving. A deferred annuity allows you to
accumulate money for retirement on a tax-deferred basis. You are also in control of when you
want to begin receiving payments. An annuity gives you a fixed income for life.

Protect Your Better Half:

If you are married, it is preferable that your retirement plan includes your spouse. The "Joint
Life Last Survivor" annuity option in ICICI Forever Life pays benefits as long as either one
of you is living.

Page | 19
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management
Investment Plans:

Often you may have some investible funds lying idle - a bonus or maybe a windfall. You can
either secure your family through insurance or invest it for growth. The need for insurance is
crucial but you also want to see your money grow through market investments. But in volatile
market conditions how do you secure both? Relax, because now you can hedge your
investments with safer investment vehicles that provide you with a diversified portfolio.

ICICI Prudential Life Insurance presents a package of Investment Solutions, which provide
you high returns, while guaranteeing complete peace of mind. This follows from our
understanding that life has many facets and they are manifested through its various needs.
Therefore our philosophy is to provide you with comprehensive insurance solutions that cater
to your dual needs of earning potentially high returns as well as stay insured for life. Thus we
offer you a unique package of Investment Solutions that combine the best of insurance and
investment.

ICICI Prudential offers flexible solutions for planning your investment.

LifeLink - an investment plan that gives you the flexibility of choosing your investment
options while keeping you insured for life.

Assure Invest - a single premium endowment plan that gives you potentially high returns
coupled with insurance protection.

Depending on your particular needs, Investment Plans could allow you to do one or more of
the following:

Plan for Tangibles: buy that fashionable car, that huge refrigerator, etc.

Earn Market-linked Returns: earn market-related returns while your family remains
protected, even in volatile market conditions.

Save on Deferred Taxes: because the interest income and maturity benefits of the Policy are
tax exempt.

Lifestyle Planning: maintain your lifestyle - even if your income was to reduce in the future.

Legacy Creation: buy property; invest in shares, bonds, etc. for your children or
grandchildren

Group Insurance Solutions

Employee care - the defining edge

In this new age of rapid developments and just-in-time methodologies, one big challenge that
organizations face is to establish and maintain a competitive edge over others. Today's

Page | 20
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management
cutting-edge product or service becomes tomorrow's undifferentiated commodity. In an era of
competitive parity, the only asset that makes a decisive difference between corporate success
and failure is the quality of human capital.

Investment in one’s employees is an investment in the future:

Employees are a company’s human capital. Not only do companies care for them, but also
provide an environment that fosters a deep and lasting sense of belonging. Employees
determine the present and decide the future of a company.

Employee benefits have proven to be an excellent tool to optimize the retention of talent and
improve an organization’s bottom line. The quality of an organization’s employee benefits
establishes and maintains a company's image as a caring employer. Optimum care of
employees is a long-term investment that results in a sustained competitive advantage for an
organization in the times to come.

ICICI Pru Group Insurance Solutions Advantage

•An integrated basket of flexible group insurance solutions that offer incomparable flexible
benefits.

•Sound investment management that focuses on safety, stability and profitability of the
portfolio.

•Personalized financial planning for your employee that takes care of his/her changing
financial needs at every stage of life.

•Quality service initiatives and transparency across all operations, promising superlative
operational efficiency.

Group Gratuity Plan:

A plan that helps employers funds their statutory gratuity obligation in a scientific manner.

Group Term Assurance: A plan that helps provides affordable cover to members of a group.

Group Superannuation Plan: A flexible Defined Contribution Superannuation scheme that

provides for a retirement kitty for each member of the group.

Page | 21
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management
Contact Information

ICICI Prudential Life Insurance Company Limited,

Registered Office,

1089, ICICI Prudential Towers,

Appasaheb Marg, PrabhaDevi,

Mumbai - 400 051.

CUSTOMER SERVICE AND OPERATIONS

The Operations department oils the work processes between the customer and the company
to ensure consistent and quality service to the customer. To streamline the operations, the
Operations department interfaces between the clients and the agents, the branches and the
underwriters, and manages work processes.

The Vision at Customer Service is to deliver ‘World Class Service’ at every opportunity.
Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query
Resolution Unit are all committed to providing effective solutions to over lakhs of customers
across the country.

Information Technology

The Information Technology function at ICICI Prudential is committed to enable business

through the use of technology. It is segmented into 4 groups to enable highest levels of
delivery to the customers: Life Asia Solutions Group that provides flexibility in designing
better product offerings to end-users, the Solutions Group- Web that provides real-time
information to customers and is responsible for customer relationship management, IT
Architecture & Corporate Solutions Group is in charge of developing and maintaining a
blueprint for the IT architecture for the enterprise as a whole. This team works as an in house
R&D Solution Group, exploring new technological initiatives and also caters to information
needs of corporate functions in the organization. IT Infrastructure group is responsible for
providing hardware, software, network services to the whole organization. This group runs
the 'Digital Nervous System' of the Enterprise at the highest levels of efficiency and provide
robust, scalable and highly available platform for deployment of business application.

Marketing

The Marketing function at ICICI Pru covers an array of activities - brand and media
management, channel support, direct marketing and corporate communications. The Brand
and Communications team is in charge of advertising, consumer research, media planning &
buying and Public Relations; that helps develop and nurture ICICI Prudential's corporate
identity while effectively communicating its varied product offerings to the customer.

Page | 22
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management
Channel marketing provides support to the sales force by streamlining the design and
development of collaterals and sales tools across distribution channels.

The Direct marketing team was set up to generate high quality leads for profitable business.
The team achieves this through target database acquisition and communicating customized
product information through e-mailers, telemarketing and innovative direct mailers.

Finance

Finance function in ICICI Prudential is committed to create an infrastructure that is aligned to

shareholder expectations. Finance basically comprises of four functions. . Corporate Planning
and MIS provide feedback on business strategies. This includes driving the budgeting
process, providing strategic inputs for decision-making and management reporting and
analysis. The Accounts function includes preparation and maintenance of financial records,
funds management, and expense processing and treasury operations. Compliance ensures that
every action is within the regulatory framework. This includes reviewing compliance
requirements and supporting the ethical framework of ICICI Pru life. Internal audit provides
assurance to the management over the organizations' control framework and includes process
risk management, information security assessment and business continuity assessment.

Human Resource

The people strategy of ICICI Prudential is “To build a committed team with a culture of
innovation, learning and growth. The Human Resource Function at ICICI Prudential drives
the people strategy of the business. With its initial focus on operational excellence to deliver
benefits and services to staff members, HR is now committed to building capability through
state of the art processes. A robust performance management system, compensation system
and a segmented training architecture enable it to deliver value to the organization.

Business Excellence

The Business Excellence function is committed to building a quality mindset across the
organization. ICICI Prudential is the first organization in the Insurance Industry that has
adopted the Six Sigma Methodology for process efficiency and measurement. The team is
also driving the Malcolm Baldrige framework across the organization, an intervention that
examines management of key inputs for Business Excellence

TRAINING AT ICICI PRUDENTIAL

Page | 23
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management
One of the objectives of the present study is to understand the objectives of training programs
for advisors in insurance industry in general and then to make a study of the training program
conducted in ICICI Prudential.

Training objectives in insurance sector

In insurance sector, the need to be well trained assumes gigantic proportions. A unique
feature as regards insurance is that it is not merely sufficient to have a properly trained
workforce; there is a need to spread the message of insurance among the populace. The
above, to a great extent, depend on the knowledge ability of the distribution personnel on
account of the interface that they are required to maintain with all the prospects. The best of
advertisements and other forms of spreading message would be no substitute for a job well
done by the intermediary.

The advisor/ agent are the public face of the insurance company and make the most enduring
impact on the customer. The prospective policyholders today need professional inputs from
intermediaries whom they can trust and respect. Therefore, the undeclared objective behind
training the advisors is their professionalization, making them capable of ‘good’ selling and
thus ultimately benefitting the customer. Need analysis, features and benefits, objection
handling and closing skills are the key components of quality insurance sales training.

The opening up of the sector has given a boost to the training industry. Acute shortage of
trained and expert professionals has spurred the corporate houses to adopt the strategy of
tying up with educational institutions and overcome the dearth of skilled insurance
professionals in this highly competitive market. A case in point is ICICI Prudential. The
company has joined hands with some training/ educational institutions to start customized
courses.

Training Program for Advisors

Advisors are the people who are not the employees of the ICICI prudential, but works as
commission agents. Becoming an advisor is a part time job offer which can be taken up by
any person above the age of 18 years and who has passed 12th or higher secondary, wherein
the person can utilize his/her contacts for making a different high source of income. They can
be associated either full time or part time as per their requirements. There are unlimited
career paths and opportunities for income & growth for deserving candidates.

The training program is conducted at all the branches of the company. Each batch consists of
minimum of 12 – 17 candidates. The training program consists of following components:

CAREER ORIENTATION PROGRAM

ADVISOR INDUCTION PROGRAM ( AIP )

Page | 24
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management
REFRESHER TRAINING

I.R.D.A training of 50 hours duration (i.e., 7 hours per day for 7 days period) is mandatory.
The course comprises of different modules.

Test

The student has to undergo a test at the end of the program. On successful completion of the
test, the student will become an IRDA (Insurance Regulatory and Development Authority)
Certified Insurance Agent.

Incentive Schemes for Advisors

The advisors generally receive a premium of 12 % - 15% on the premium amount in the case
of life insurance products and in the case of health insurance products; they are paid
commission up to 35% of the premium amount. If the advisor achieves a target of Rs.30 lakhs
in a period of one year, he /she will become member of Million Dollar Round Table
(MDRT). The benefits derived from this membership is that the advisors would get one free
laptop , invitations to participate in National Conventions, family trips , international star
clubs membership and so on.

Apart from this, there is Grand Perk (GP) membership which would entitle them to various
benefits. The different kinds of GP membership are given below

Premium Amount Achieved(in lakhs) Type of Membership

1.5 SILVER

3.5 SILVER PLUS

10 GOLD

22 GOLD PREMIERE

40 PLATINUM

Awards
Page | 25
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management
 ICICI Prudential Life won the ICICI Group Marketing Excellence Award 2008 in
three key categories for its marketing initiatives

 ICICI Prudential Life was awarded the INDY’s Award for Excellence in Mass
Communication in the category of Most Creative Advertisement-Television

 India's Most Customer Responsive Insurance Company - Avaya Global Connect -

Economic Times Customer Responsiveness Awards, 2007

 Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was adjudged the
Entrepreneur of the Year-Manager at the Ernst and Young Entrepreneur Awards 2007

 Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was awarded the
Outstanding Businesswoman of the Year at CNBC TV18's India Business Leader
Awards 2007

 ICICI Prudential Life Insurance won the award for the Best Life Insurer-Runner up at
the Outlook Money & NDTV Profit Awards 2007

 ICICI Prudential Life’s, retirement solutions campaign for the year 2006-07 was
awarded the Bronze Effy trophy in the services category.It also won the Brand Equity
Bravery Award 2007, instituted by Ad club.

 ICICI Prudential Life’s website, www.iciciprulife.com was awarded the best website
among private life insurers at the Web 18 and Frost & Sullivan Genius of the Web
Awards 2007 for commendable work in the online.

PROBLEMS OF THE ORGANISATION:

Multiple players in the life insurance so, ICICI Prudential faces very tough competition from
other leaders in the industry. The ICICI Prudential needs to work hard in order to stay
competitive insurance market. Further, the ICICI Prudential should appoint professional
agent who should be able to provide customer with a comparison of multiple schemes and
also explain them in simple terms, so that customer able to make an informed decision.

S.W.O.T. ANALYSIS

Strengths

The biggest strength of this organization is the:

 Money power, which makes them ignorant about the gestation period.

 Brand image, Business experience, and Innovative products

 The agents are very selectively chosen have excellent communication skills.

Page | 26
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management
 Service quality, which is the crux of their mission.

 Large network branches which is helped to customer for the payment

Weaknesses

 High targets for financial advisors and for the sales departments.

 Many competitors in the market offer same product by the little difference in the
premium and offerings.

 Sustainable to risk associated with investments in money market.

 Try to catch middle-lower level people also.

Opportunity

 Huge market is literally untapped; out of estimated 320 millions insurable markets
only 20% of the population is insured.

 Health insurance and pension schemes, an estimated market potential of

approximately $15 billion.

 ICICI Prudential should give the insurance coverage both to the parent and child so
that their life could be covered in both cases. The customer doesn’t mind paying some
extra premium for that.

Threats

 Players like 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.

 Current Govt. policies do not encourage gross domestic savings. If the tax liability of
the service class rises, the customer will have little money to invest.

 LIC has woken up from sleep and is following competitive strategies. Its huge surplus
in Life Fund gives a capability to lodge Price war.

RECOMMENDATIONS

The insurance companies should now try to identify the gap between current level of
customer service and customer expectations. Some of the strategies being recommended are
as follows:

Page | 27
An over view of ICICI Prudential Insurance Co. Ltd
MFS – 101 Fundamentals of insurance
NALSAR University Of Law
Institute Of Insurance And Risk Management
 Product Differentiation: Offering a product that is distinctly different from other
products available in the market.

 Innovativeness: Identifying means of a delightful customer experience.

 Riders: These are additional offerings along with the main product.

 Flexibility: The companies should make their products flexible for the convenience of
their customer.

 Hassle Free Service: All bureaucracy in customer interactions should be eliminated.

 Proper Policy Documentation: Wrong interpretations/ non-awareness of policy

document by the customer may have serious implications in the long term and the
possibility of the same should be alleviated by the insurance companies.

BIBLIOGRAPHY

 Insurance Advisor’s Manuals and Study Material of ICICI Prudential.

 NIS Sparta Ltd. (New Delhi)

 Insurance Watch and other Magazines.

 Economic Times

 www.google.com

 www.icicipru.com

 www.bimaonline.com

 www.moneycontrol.com

 www.licindia.com

Page | 28