Summer Training Project Report

ON

MARKETING STRATEGIES OF
ICICI PRUDENTIAL LIFE INSURANCE

IN THE PARTIAL FULFILLMENT OF THE DEGREE

OF
MASTETR OF BUSINESS ADMINISTRATION OF
MDU, ROHTAK

(Session 2015-17)

Submitted by:
CHITRANJAN KUMAR

Submitted to:
Controller of Examinations
MDU, Rohtak

RAWAL INSTITUTE OF MANAGEMENT,

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FARIDABAD

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 DECALARATION

I CHITRANJAN KUMAR Roll no. 15-mba-1011, M.B.A, final Year (3rd

semester) of RAWAL INSTITUTE OF MANAGEMENT, FARIDABAD
Hereby declare that the summer Training report entitled MARKETING
STRATEGIES OF ICICI PRUDENTIAL LIFE INSURANCE. is an
original work and the same has not been submitted to any other institute for
the award of any other degree. A seminar presentation of the Training Report
was made on AUGUST 12th, 2016 and the suggestions as approved by the
Faculty were duly incorporated.

Presentation Incharge Signature of Candidate

Ms.Meenakshi Chitranjan Kumar

(MBA Faculty) Roll No: 15-MBA-1011

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 GUIDE CERTIFICATE

On the moving wheels of life, occasion come, but comes

rarely in life. A occasion come to write a project report. I am
also thankful to Mr. ____________________, Project Guide,
MBA for his assistance and cooperation for her valuable
guidance. I am also thankful to all the persons in the
marketing department.

CHITRANJAN KUMAR

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 ACKNOWLEDGEMENT
Like every good thing comes to an end, so was our project of Marketing Strategies of
ICICI.

First and foremost, we express our profound sense of gratitude to our faculty guide
Ms.Meenakshi at RIM, Faridabad for giving us the opportunity to handle the project
under their guidance. Their practical insight, meaningful suggestions and valuable
guidance helped in completing the project with a professional approach

Further, we are also grateful to all the respondents for their continuous and timely
responses through the questionnaires which helped us in compiling my report with ease
and on time.

(CHITRANJAN KUMAR)

Ms.Meenakshi
(LECTURER)

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 CONTENTS
Introduction .
Objective..
Literature Review
Research Methodology
Result and Analysis
Conclusion ..
Questionnaire ..
Bibliography

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 INTRODUCTION

Life insurance is a form of insurance that pays monetary proceeds upon the death of
the insured covered in the policy. Essentially, a life insurance policy is a contract
between the named insured and the insurance company wherein the insurance
company agrees to pay an agreed upon sum of money to the insured's named
beneficiary so long as the insured's premiums are current.

With a large population and the untapped market area of this population insurance
happens to be a very big opportunity in India. Today it stands as a business growing
at the rate of 15-20% annually. Together with banking services, it adds about 7
percent to the countries GDP. In spite of all this growth statistics of the penetration
of the insurance in the country is very poor. Nearly 80% of Indian populations are
without life insurance cover and the health insurance. This is an indicator that
growth potential for the insurance sector is immense in India.

It was due to this immense growth that the regulations were introduced in the
insurance sector and in continuation Malhotra Committee was constituted by the
government in 1993 to examine the various aspects of the industry. The key element
of the reform process was participation of overseas insurance companies with 26%
capital. Creating a more competitive financial system suitable for the requirements
of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many changes. The
liberalization of the industry the insurance industry has never looked back and

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today stand as one of the most competitive and exploring industry in India. The
entry of the private players and the increased use of the new distribution are in the
limelight today. The use of new distribution techniques and the IT tools has
increased the scope of the industry in the longer run.

Insurance is the business of providing protection against financial aspects of risk,

such as those to property, life health and legal liability. It is one method of a greater
concept known as risk management which is the need to mange uncertainty on
account of exposure to loss, injury, disadvantage or destruction.

Insurance is the method of spreading and transfer of risk. The fortunate many who
are exposed to some or similar risk shares loss of the unfortunate. Insurance does
not protect the assets but only compensates the economic or financial loss.

In insurance the insured makes payment called premiums to an insurer, and in

return is able to claim a payment from the insurer if the insured suffers a defined
type of loss. This relationship is usually drawn up in a formal legal contract.

Insurance companies also earn investment profits, because they have the use of the
premium money from the time they receive it until the time they need it to pay
claims. This money is called the float. When the investments of float are successful
they may earn large profits, even if the insurance company pays out in claims every
penny received as premiums. In fact, most insurance companies pay out more
money than they receive in premiums. The excess amount that they pay to
policyholders is the cost of float. An insurance company will profit if they invest the
money at a greater return than their cost of float.

An insurance contract or policy will set out in detail the exact circumstances under
which a benefit payment will be made and the amount of the premiums.

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Classification of insurance

The insurance industry in India can broadly classified in two parts. They are.

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:

Life insurance can be defined as life insurance provides a sum of money if the
person who is insured dies while the policy is in effect.

In 1818 British introduced to India, with the establishment of the oriental life
insurance company in Calcutta. The first Indian owned Life Insurance Company;
the Bombay mutual life assurance society was set up in 1870.the life insurance act,
1912 was the first statuary measure to regulate the life insurance business in India.
In 1983, the earlier legislation was consolidated and amended by the insurance act,
1938, with comprehensive provisions for detailed effective control over insurance.
The union government had opened the insurance sector for private participation in
1999, also allowing the private companies to have foreign equity up to 26%.
Following the opening up of the insurance sector, 12 private sector companies have
entered the life insurance business.

Benefits of life insurance

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

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It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

Thus insurance is found to be very useful in the lives of the person both in short
term and long term.

Fundamental principles of life insurance contract;

1) Principle of almost good faith:

A positive duty to voluntary disclose, accurately and fully, all facts, material to the
risk being proposed whether requested or not.

2) Principle of insurable interest:

Relationships with the subject matter (a person) which is recognized in law and
gives legal right to insure that person.

2) Non-life (general) Insurance:

Triton insurance co. ltd was the first general insurance company to be established in
India in 1850, whose shares were mainly held by the British. The first general
insurance company to be set up by an Indian was Indian mercantile insurance co.
Ltd., which was stabilized in 1907 . there emerged many a player on the Indian
scene thereafter.

The general insurance business was nationalized after the promulgation of General
Insurance Corporation (GIC) OF India undertook the post-nationalization general
insurance business.

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CONCEPTUAL BACKGROUND

Satisfaction is defined as . . .

A persons feeling of pleasure or disappointment resulting from comparing a

products perceived performance (or outcome) in relation to his or her
expectations.

Customer Satisfaction can be defined as supplying or gratifying all wants or

wishes, fulfilling conditions or desires, or the state of the mind anything that makes
a customer feel pleased or contented.

Consumer Behavior:

Consumer behavior is defined as the behavior that consumers display in searching

for, purchasing, using, evaluating and disposing of products and services that they
expect will satisfy their needs.

The study of the processes involved when individuals or groups select, purchase, use,
or dispose of products, services ideas, or experiences to satisfy needs and desires

Customer value: The ratio between the customerss perceived benefits (economic,
functional and psychological) and the resources (momentary, time, effort,
psychological) used to obtain those benefits.

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Customer satisfaction: Customer satisfaction is the individuals perception of the
performance of the product or service in relation to his or her expectations.

Motivation: The processes that account for an individuals intensity, direction, and
persistence of effort toward attaining a goal.

Personality : Personality can be described ad the psychological characteristics that

both determine and reflect how person responds to his or her environment.

Perception is defined as the process by which an individual selects, organizes, and

interprets stimuli into a meaningful and coherent picture of the world.

Consumer learning is the process by which individuals acquire the purchase and
consumption knowledge and experience they apply to future related behavior.

THE CONSUMER ADOPTION PROCESS

The consumer adoption process is the process by which customers learn about new
products, try them, and adopt or reject them. Today many marketers are targeting
heavy users and early adopters of new products recognizing that specific media can
reach both groups and tend to be opinion leaders. The consumer adoption process is
influenced by many factors beyond the marketers control, including consumers and
organizations willingness to try new products, personal influences and the
characteristics of the new products or innovations

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STAGES OF ADOPTION PROCESS

An innovation refers to any good, service, or idea. That is perceived by someone as

new. The idea may have long history, but it is an innovation to the person who sees it
as new. Innovation takes time to spread through the special system. The consumer
adoption process focuses on the mental process through which an individual passes
from first hearing about an innovation to final adoption. Adopters of new products
have moved through the following five stages.

AWARENESS: The consumer becomes aware of the innovation but lacks

information about it.

INTEREST: The consumer is stimulated to see the information about the

innovation.

EVALUATION: The Consumer considers whether to try the innovation or not.

TRIAL: The consumer tries the innovation to improve his estimate of its value.

ADOPTION: The consumer decides to make full and regular use of the innovation.

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 OBJECTIVE OF THE STUDY

For every problem there is a research. As all the researches are based on some and
my study is also based upon some objective and these are as follows.

1. To get the knowledge about the product of ICICI Prudential life insurance
company ltd.

2. To study the effect of marketing strategy of ICICI Prudential life insurance

on the behavior of consumer.

3. To find out whether people were really aware of the concept of life insurance.

4. To understand the expectation of consumer from ICICI Prudential life

insurance product s.

5. To come out with conclusion and suggestions based on the analysis and the
Interpretation of data.

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 LITERATURE REVIEW

1. INDUSTRY PROFILE

1.1 Insurance in India

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

1.2 A Brief history of the Insurance Sector

The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.

Some of the important milestones in the life insurance in India are;

1912: The Indian Life Assurance

For over 50 years, life insurance in India was defined and driven by only one
company- the Life Insurance Corporation of India (LIC). With the Insurance
Regulatory and Development Authority (IRDA) Bill 1999 paving the way for entry
of private companies into both life and general sectors there was bound to be new-
found excitement- and new success stories. Today, just three years since their entry,

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their cumulative share has crossed 13% (source: IRDA), far exceeding expectations.
Clearly insurance is on a growth path.

The percentage of premium income to GDP which was just 2.3% in 2000-01 rose to
3.3% in 2002-03; and life insurance has emerged as the dominant contributor to this
growth.

The industry presented a huge opportunity. Life insurance penetration, for instance,
was at an abysmal 22% of the insurable population. However, private players have
had to rise to many challenges. They were faced with attitudinal barriers towards
the category and the perception that insurance was only a tax saving tool. Insurance
per se had lost it basic rationale: protection. It wasnt surprising then that its
potential lay frozen and unexploited.

The challenge for private insurance players was to change the established category
driver and get customers to evaluate life insurance as an investment-cum-protection
tool.

PREMIUM UNDERWRITTEN BY LIFE INSURERS

The life insurance industry recorded a premium income of Rs.82854.80 crore during
the financial year 2005-06 as against Rs.66653.75 crore in the previous financial
year, recording a growth of 24.31 per cent. The contribution of first year premium,
single premium and renewal premium to the total premium was Rs.15881.33 crore
(19.16 per cent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36
percent), respectively. In the year2000-01, when the industry was opened up to the
private players, the life insurance premium was Rs.34,898.48 crore which
constituted of Rs. 6996.95 crore of first year premium, Rs. 25191.07 crore of renewal
premium and Rs. 2740.45 crore of single premium. Post opening up, single premium

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had declined from Rs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in
2002-03 with the withdrawal of the guaranteed return policies. Though it went up
marginally in 2003-04 to Rs.5936.50 crore (4.62 per cent growth) 2004-05, however,
witnessed a significant shift with the single premium income rising to Rs. 10336.30
crore showing 74.11 per cent growth over 2003-04.

(Rs. lakh)

Insurer 2006-07 2008-09

First year premium including Single

premium

LIC* 1734761.74 2065306.36

(6.34) (19.05)

Private Sector 244070.58 556457.34

(152.74) (127.99)

Total 1978832.32 2621763.70

(14.68) (32.49)

Renewal Premium

LIC 4618580.96 5447422.62

(19.47) (17.95)

Private Sector 67962.05 216293.48

(343.12) (218.26)

Total 4686543.01 5663716.10

(20.75) (20.85)

Total Premium

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 LIC 6353342.70 7512728.98

(15.63) (18.25)

Private Sector 312032.63 772750.82

(178.83) (147.65)

Total 6665375.33 8285479.80

1.3 Brief Review of Scenario Insurance

Insurance in India started without any Regulation in Nineteenth century.

It was story of a typical colonial era. A few British companies dominated

the market mostly in large urban centers.

Insurance was nationalized mainly on 3 counts First, Indian lives were not insured.
Second, even if they were insured, they were treated as substandard lives and extra
premium was charged. Third, there were gross irregularities in the functioning of
Life insurance was nationalized in the year 1956, and then general insurance was
nationalized in the year 1972. In 1999, the private insurance companies were
allowed back again into insurance sector with maximum cap of 26 percent foreign
holding.

1818 The British introduce to India, with the establishment of the Oriental Life
Insurance company in Calcutta.

1850 Non life insurance debuts, with Triton Insurance Company.

1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer

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1907 Indian mercantile Insurance is the first Indian non-life insurer.

1912 The Indian life assurance companies act enacted to regulate the life insurance
business.

1938 The insurance act, which forms the basis for most current insurance laws,
replaces earlier act.

1956 Life insurance nationalized, government takes over 245 Indian and foreign
insurers and provident societies.

1956 Government sets up LIC

1972 Non life insurance nationalized, GIC set up.

1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up to

draw up a blue print for insurance sector reforms.

1994 Malhotra Committee recommends re-entry of private players, autonomy ot

PSU insurers.

1997 Insurance regulator IRDA (Insurance Regulatory and Development Authority)

set up.

2000 IRDA starts giving licensed to private insurers

2001 ICICI Prudential Life Insurance came into the market to sell a policy.

2002 Banks were allowed to sell insurance plans, as TPAs enter the scene, insurers
start settling non-life claims in the cashless mode.

1.4 The Insurance Regulatory and Development Authority (IRDA):

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Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body
in April 2000 has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies were the launch of
the IRDAs online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that
the insurance companies would have a trained workforce of insurance agents in
place to sell their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life insurance
and 6 general insurance companies have been registered.

With the demographic changes and changing life styles, the demand for insurance
cover has also evolved taking into consideration the needs of prospective
policyholder for packaged products. There have been innovations in the types of
products developed by the insurers, which are relevant to the people of different age
groups, and suit their requirements. Continued innovations in product development
has resulted in a wide range of flexible products to meet the requirements for cover

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at different stages of life -today a variety of products are available ranging from
traditional to Unit linked providing protection towards child, endowment, capital
guarantee, pension and group solutions. A number of new products have been
introduced in the life segment with guaranteed additions, which were subsequently
withdrawn/toned down; single premium mode has been popularized; unit linked
products; and add-on/riders including accidental death; dismemberment, critical
illness, fixed term assurance risk cover, group hospital and surgical treatment,
hospital cash benefits, etc. Comprehensive packaged products have been
popularized with features of endowment, money back, whole life, single premium,
regular premium, rebate in premium for higher sum assured, premium mode
rebate, etc., together with riders to the base products.

1.5 Historical Perspective

Prior to 1956 -242 companies operating

1956 -Nationalization- LIC monopoly player -Government control

2001 -Opened up sector

1.6 Contribution to Indian Economy

Life Insurance is the only sector which garners long term savings.

Spread of financial services in rural areas and amongst socially less privileged.

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Long term funds for infrastructure.

Strong positive correlation between development of capital markets and

insurance/pension structure.

Employment generation.

1.7 Insurance Industry prior to de-regulation

Prior to deregulation in 2000, market was a public monopoly.

Public Monopoly

- 2000 Offices

- Over 800,000 agents

Distribution through tied agents only

Sales approach primarily on a tax savings platform

Traditional style product offering : Endowment and money back plans

Inadequate and inflexible products

Pensions: Small part of product offer

Limited focus on customer needs

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1.8 Improving Service Standards

Pre Deregulation Limited Distribution

Channel Access Service Points Use of IT

Advisors Branch Network Limited use of IT

Post Deregulation Service through Distribution

Multi Channel Access Multiple Service Use of IT

Points

Advisors Call Centers Shorter time around time

Brokers & Corporate Email Claims

agents
Website -23- Policy Issuance
Bancassurance
Branch Network
2. COMPANY PROFILE

ICICI Prudential Life Insurance Company Limited (the Company) a joint venture

between ICICI Bank Limited and Prudential plc of UK was incorporated on July

20, 2000 as a company under the Companies Act, 1956 (the Act). The Company

is licensed by the Insurance Regulatory and Development Authority (IRDA) for

carrying life insurance business in India.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial
services group headquartered in the United Kingdom (UK). The company brings
together the local market expertise and financial strength of ICICI Bank and
Prudentials International life insurance experience. The company was granted a
certificate of Registration by the IRDA on November 24, 2000 and eighteen days
later, issued its first policy on December 12. ICICI Prudential was amongst the first
private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA).

From its early days, ICICI Prudential seemed to have the wherewithal for a large-
scale business. By March 31, 2002, a little over a year since its launch, the company
had issued 100,000 policies translating into premium income of approximately Rs.
1,200 million on a sum assured of over Rs.23 billion. When the company began its
operations, the need was to build a brand that was relatable to, symbolized trust and
was easily recognized and understood. It launched a corporate campaign ICICI
Prudential also made using the theme of Sindoor to epitomize protection, trust,
togetherness and all that is Indian; endearing itself to the masses. The success of the

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campaign, the calling card of the company saw the brand awareness scores almost
at par with its 40 year old competitor. The theme of protection was also extended to
subsequent product and category specific campaigns from child plans to retirement
solutions which highlight how the company will be with its customers at every step
of life.

From day one, the company has unflinchingly focused on being mass-market player,
developing products, creating a distribution network and deploying resources that
would further its goal. Apart from ramping up thoroughly training its advisors, the
company has twelve Bancasurance partners the largest in the country. It swiftly
revised and added to its initial range of products, pioneering market-linked
products and pension plans, to offer customers the most flexible life insurance
policies in the country. In February 2004, ICICI Prudential increased its capital
base by Rs. 500 million, its ninth capital hike, bringing the total paid up equity
capital to Rs. 6,750 million. With the authorized capital of the company standing at
Rs. 12 billion, ICICI Prudential continues to have the highest capital base amongst
all life insurers in the country. The challenge ICICI Prudential now faces is to retain
its top-notch position and continue to deliver the finest life insurance and pension
solutions to its ever-growing customer base.

ICICI Prudentials equity base stands at Rs. 1185 crore with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the year ended March
31, 2006, the company garnered Rs.2, 412 crore of weighted new business premium
and wrote 837,963 policies. The sum assured in force stands at Rs.45, 888 crore. The
company has a network of over 72,000 advisors; as well as 9 bancasurance partners
and over 200 corporate agent and broker tie-ups.

ICICI Prudential is also the only private life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA rating
is the highest credit rating, and is a clear assurance of ICICI Prudentials ability to
meet its obligations to customers at the time of maturity or claims.

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For the past five years, ICICI Prudential has retained its position as the No.1
private insurer in the country, with a wide range of flexible products that meet the
needs of the Indian customer at every step in life.

Beginning operations in December 2000, ICICI Prudentials success has been

meteoric, becoming the number one private life insurer within months of launch.
Today, it has one of the largest distribution networks amongst private life insurers
in India, with branches in 54 cities. The total number of policies issued stands at
more than 780,000 with a total sum assured in excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total
received premium income of Rs. 9.9 billion; up 135% last years total premium
income of Rs.4.20 billion. New business premium income shows a 106% growth at
Rs. 7.5 billion, driven mainly by the companys range of unique unit-linked policies
and pension plans. The companys retail market share amongst private companies
stood at 36%, making it clear leader in the segment. To add to its achievements, in
the year 2003/04 it was adjudged Most Trusted Private Life Insurer (Economic
Times Most Trusted Brand Survey by AC Nielsen ORG-MARG). It was also
conferred the Outlook Money-Best Life Insurer award for the second year
running. The company is also proud to have won Silver at EFFIES 2003 for its
Retire from work, not life campaign. Notably, ICICI Prudential was also short-
listed to the final round for its Sindoor campaign in EFFIES 2002.

ICICI Prudentials success is rooted in its philosophy to always offer the customer a
choice. This has been the driving force behind its multi-channel distribution
strategy, which includes advisors, banks, direct marketing and corporate agents. In
fact, ICICI Prudential was the first life insurer to invest in multiple channels and
offer the customer choice and access; thus reducing dependency on any one channel,
great strides in the retirement solutions and pensions market.

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The Companys penetration of the retirement market was driven by the focused
approach towards creating awareness through sustained campaign; Retire from
work, not life. Within six months, the campaign rewarded ICICI Prudential with
an increased share of 23% of the total pensions market and 78% amongst private
players. ICICI Prudential has one of the largest distribution networks amongst
private life insurers in India, having commenced operations in 132 cities and towns
in India, stretching from Bhuj in the west to Guwahati in the east, and Jammu in
the north to Trivandrum in the south.

The company has 9 bank partnerships for distribution, having agreements with
ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank,
and some co-operative banks, as well as over 200 corporate agents and brokers, it
has also tied up with NGOs, MFIs and corporates for the distribution of rural
policies.

ICICI Prudential has recruited and trained more than 72,000 insurance advisors to
interface with and advise customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers.

ABOUT THE PROMOTERS

ICICI Bank (NYSE:IBN) is Indias second largest bank with an asset base of
Rs.2513.89 billion as on March 31, 2006. 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 a customer base of more than 17 million customers through a
multi channel access network which includes over 620 branches and extension
counters, 2200 ATMs, call centers and internet banking (www.icicibank.com)

PRUDENTIAL plc, Established in London in 1848, through its business in the UK

and Europe, the US and Asia, provides retail financial services products and services
to more than 16 million customers, policy holder and unit holders world wide. As of

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December 31, 2005, the company had over US$ 400 billion in funds under
management. Prudential has brought to market an integrated range of financial
services products that now includes life assurance, pensions, mutual funds, banking,
investment management and general insurance. In Asia, Prudential is the leading
European life insurance company with a vast network of 23 life and mutual fund
operations in twelve countries China, Hong Kong, India, Indonesia, Japan, Korea,
Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

Achievements

Beginning operations in December 2000, ICICI Prudentials success has been

meteoric, becoming the number one private life insurer within months of launch.
Today, it has one of the largest distribution networks amongst private life insurers
in India, with branches in 54 cities. The total number of policies issued stands at
more than 780,000 with a total sum assured in excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total
received premium income of Rs. 9.9 billion; up 135% last years total premium
income of Rs.4.20 billion. New business premium income shows a 106% growth at
Rs. 7.5 billion, driven mainly by the companys range of unique unit-linked policies
and pension plans. The companys retail market share amongst private companies
stood at 36%, making it clear leader in the segment. To add to its achievements, in
the year 2003/04 it was adjudged Most Trusted Private Life Insurer (Economic
Times Most Trusted Brand Survey by ACNeilsen ORG-MARG). It was also
conferred the Outlook Money-Best Life Insurer award for the second year
running. The company is also proud to have won Silver at EFFIES 2003 for its
Retire from work, not life campaign. Notably, ICICI Prudential was also short-
listed to the final round for its Sindoor campaign in EFFIES 2002.

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In Keeping with its belief that a happy customer is the best endorsement, ICICI
Prudential has embraced the SIX SIGMA approach to quality, an exercise that
begins and ends with the customer from capturing his voice to measuring and
responding to his experiences. This initiative is currently helping the company
improve processes, turnaround times and customer satisfaction levels. Another
Novel introduction is the ICICI Prudential Lifestyle Rewards Club, Indias first
rewards programme for Life Advisors; it allows ICICI Prudential Advisors to
redeem points for items ranging from kitchenware to gold, white goods, and even
international holidays.

Promotion

ICICI Prudential is a case study in how advertising and marketing can play a vital
role in re-shaping an industry. It has demonstrated how an industry where the
customer was nothing more than a policy number has changed to one where
customer preference rules the roost.

Brand-building in a complex category like life insurance is an uphill and multi-

faceted task. At the time of launching operations, the communications task was to
build credibility, so as to give the customer the confidence that it was a company
that could be trusted to invest funds with. The aim was to encourage people to view
insurance not as a compulsory tax saving instrument, but as a means to lead a
worry-free, secure life and in the process, create the differentiator for brand ICICI
Prudential.

The brand proposition for all the campaigns was reflected in the line: Suraksha:
Zindagi ke har kadam par. The campaign featured a significant competitive
advantage, the sound financial backing and credentials of ICICI Prudential, and
showcased products from different segments. The advertising idea was encapsulated
in the symbol of protection the Sindoor. This campaign contributed extensively to
raising brand awareness and creating a distinctive identity for the company.

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The Company recently tied up with the Forbes Six Sigma rated Dabbawalla
organization in Mumbai for a direct marketing exercise. In a Unique effort to create
awareness about a tax saving product, the company attached a creative of a bitten
apple to Mumbais ubiquitous lunchboxes. It worked wonderfully with Mumbais
office-goers and one that translated into substantial business for the company.

Brand Values

Market Research reveals that the values people associate with ICICI Prudential are,
indeed, those that the company hopes to project: lifelong protection and value for
money. The core value is protecting your loved ones, throughout lifes ups and
downs. It is a powerful proposition; one, which ICICI Prudential, is taking into the
market place.

DISTRIBUTION SYSTEM

Tied Agency

Tied Agency is the largest distribution channel of ICICI Prudential, comprising a

large advisor force that targets various customer segments. The strength of tied
agency lies in an aggressive strategy of expanding and procuring quality business.
With focus on sales & people development, tied agency has emerged as a robust,
predictable and sustainable business model.

Bancassurance and Alliances

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ICICI Prudential was a pioneer in offering life insurance solutions through banks
and alliances. Within a short span of two years, and with nearly a large number of
partners,

B & A has emerged as a vital component of the companys sales and distribution
strategy, contributing to approximately one third of companys total business.

The business philosophy at B&A is to leverage distribution synergies with our

partners

and add value to its customers as well as the partners. Flexibility, adaptation and
experimenting with new ideas are the hallmarks of this channel.

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

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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. 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.

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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.

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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.

Bancassurance

One of the most significant advances in the financial services sector over the past
couple of years has been the growth of Bancassurance which, in simplest terms,
means the distribution of insurance products through a banks distribution
channels. In other words, Bancassurance is a service which can fulfill both banking
and insurance needs at the same time.

Bancassurance as a concept first began in India with the opening up of the

insurance industry to private sector participation in December 1999 which saw the
entry of 20 new players - with 12 in the life insurance sector and 8 in the non-life
sector. Bancassurance has also seen significant rise in other Asian markets. For
example, Bancassurance accounted for 24% of new life insurance sales by
weighted premium income in Singapore in 2002. This is a significant increase on
the equivalent 2001 statistic of 15% and is as a result of growth in significant bank-
centric Bancassurance operations.

Although the concept of Bancassurance looks simple enough, it is far from that in
real life practice. Legislative differences, consumer behavior, impact of history and
culture, product complexity, employee work culture and many such other factors
have contributed to significant differences in results across countries. For example,

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in France and Spain 60% to 80% of life insurance products are sold through bank
branches compared to 10% in UK and USA.

Bancassurance Models

Globally we have 4 kinds of Bancassurance business models:

Distribution alliance between the insurance company and the bank

JV between the two

Merger between bank and insurer

Bank builds or buys own insurance products

Most of the Bancassurance operations in India fall into the first model, which in a
way is quite a prudent decision. The Indian Bancassurance scene as of now looks as
promising as perilous, being a vast, unexplored and uncharted expanse. As banks
are quite risk averse, it is but natural for them to withhold from making any long
term commitment, which would be quite costly if the Bancassurance business runs
into trouble. In terms of the present regulatory framework, one bank can tie-up
with only one life and one non-life insurer, while insurers have the choice to tie-up
with any number of banks. We also have examples of joint ventures between the
bank and insurer such as SBI Life and ICICI Prudential.

Stages in Policy Issuance

1) Proposal

A Proposal Stage is the First stage before the policy is issued at COPS. At this stage,
the application form is received by COPS, but it is pending for issuance due to
further clarifications required from the customer.

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2) Login

A proposal which is complete i.e., duly filled with all necessary documents attached
to it & accepted by the Branch ops, is called a Login

3) Reject

An Application gets rejected at the Branch Ops level due to necessary details not
filled in the form or necessary documents not submitted is a Reject. It is then sent
back to the Advisor for completion.

4) Issuance

Issuance means a policy that is issued to the Customer by Central Ops.

5) Decline Status

When a customer refuses to take a policy post login but before Issuance is called a
Decline

6) Cancellation

When the cheque given by the customer bounces, it amounts to cancellation of the
policy.

7) Lapse

A policy for which the Customer fails to pay subsequent premiums is a Lapsed
Policy.

8) Freelook

Post issuance of the policy, the policyholder has the option to turn down the policy
within 15 days from the date of issuance. This period of 15 days is called Freelook
Period.

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9) Surrender: When a customer wants to discontinue with the policy.

The joint strengths

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

2.4 PRODUCT/SERVICES PROFILE

ICICI Prudentials ultimate promise is financial security. A strong brand certainly

boosts sale, but without customer-friendly, innovative products, even the best brand
would not last long.

ICICI Prudentials product range has been developed on the understanding that
different people have their own sets of needs at various stages of their lives. It has
thus built a flexible portfolio of products that can be customized to cater to varying
needs of people at each stage, and thus ensure protection in every step of life. The
companys philosophy has been to help customers understand their financial needs
and work closely with them to customize a product that would meet. Advisors can
offer a complete range of products Savings plans, Child plans, Market-linked
plans, Protection plans, and Retirement plans and tailor a flexible solution to meet
customers changing needs at every stage of life. In fact, ICICI Prudential was the
first to un-bundle product benefits, pioneering the concept of riders and soon after
introduce comprehensive market-linked and retirement plans.

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ICICI Prudential has launched a handful of products that are analyzed below:

ICICI Prudential's life insurance products may be loosely categorized under three
forms: pure life insurance products without an investment angle to them; a product
that is a mix of a cumulative investment scheme and an insurance product; and,
finally, standard products such as money-back and endowment policies.

Single Premium Bond: The Single Premium Bond is the name of a policy that
combines the features of an investment in a cumulative deposit scheme with that of
an insurance product.

Policy-holders are required to pay a one-time premium based on a target sum

assured. At maturity, the policy-holder gets the sum assured and guaranteed
additions that work out to a compound return of 4.5 per cent the sum assured.

The insurance part of the package comes in the form of death benefits that are paid
in the case of the demise of the policy-holder. The size of the death benefit is linked
to the number of years left for the policy to expire. On maturity date, the maturity
value is also paid in addition to the death benefits that would have been paid earlier.

Life Guard policies: The company offers two pure life insurance products that have
an umbrella name, Life Guard. One of them involves a one-time premium for which
there are no maturity benefits. The other requires regular premium payments that
are returned at the end of the policy. Life Guard offers absolutely no investment-
related return and is suitable for individuals looking for an unadulterated insurance
package.

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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 5 riders, to create a customized solution for each policyholder.

SAVINGS SOLUTIONS

Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of
protection.

Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of

protection as well as liquidity options.

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

CashBak is an anticipated endowment policy ideal for meeting milestone expenses

like a childs marriage, expenses for a childs higher education or purchase of an
asset.

LifeTime and LifeTime II offer customers the flexibility and control to customize
the policy to meet the changing needs at different life stages. Each offer 4 fund
options Preserver, Protector, Balancer and Maximiser.

LifeLink Super is a single premium Unit Linked Insurance Plan which combines life
insurance cover with the opportunity to stay invested in the stock market.

Premier Life is a limited premium paying plan that offers customers life insurance
cover till age of 75.

InvestShield Life is a Unit Linked plan that provides capital guarantee on the
invested premiums and declared bonus interest.

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InvestShield Cash is a Unit Linked plan that provides capital guarantee on the
invested premiums and declares bonus interest along with flexible liquidity options.

InvestShield Gold is a Unit Linked plan that provides capital guarantee on the
invested premiums and declares bonus interest along with limited premium
payment terms.

PROTECTION SOLUTIONS

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

HomeAssure is a mortgage reducing term assurance plan designed specifically to

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

Child Plans

SmartKid education plans provide guaranteed educational benefits to a child along

with life insurance cover for the parent who purchases the policy. The policy is
designed to provide money at important milestones in the childs life. SmartKid
plans are also available in unit-linked form both single premium and regular
premium.

Retirement Solutions

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

SecurePlus Pension is a flexible pension plan that allows one to select between 3
levels of cover.

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Market-linked retirement products

LifeTime Pension II is a regular premium market-linked pension plan.

LifeLink Pension II is single premium market linked pension plan.

InvestShield Pension is a regular premium pension plan with a capital guarantee on

the investible premium and declared bonuses

Golden Years: is a limited premium paying retirement solution that offers tax
benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and
payout stages.

HEALTH SOLUTIONS

Health Assure and Health Assure Plus: Health Assure is a regular premium plan
which provides long term cover against 6 critical illnesses by providing policy holder
with financial assistance, irrespective of the actual medical expenses. Health Assure
Plus offers the added advantage of an equivalent life insurance cover

Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as
well as at different stages in the treatment of various cancer conditions.

Group Insurance Solutions

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

ICICI Pru Group Gratuity Plan: ICICI Prus 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.

-41-
 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 Prus 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.

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

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

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

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Income Benefit: This rider pays the 10% of the sum assured to the nominee every
year, till maturity, in the event of the death of the life assured. It is available in
SmartKid, SecurePlus, and CashPlus.

Waiver of Premium: In case of total and permanent disability due to an accident,

the premiums are waived till maturity. This rider is available with SecurePlus and
CashPlus.

-43-
 RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific
topic.

The word research has been derived from French word Researcher means to search.

FRANCIES RUMMER defined Research: It is a careful inquiry or examination to

discover new information or relationship and to expand or verify existing
knowledge.

Research is the solution of the problem, whether created or already generated.

When research is done, some new out come, so that the problem (created or
generated) to be solved.

RESEARCH DESIGN:

Research Design is the conceptual structure within which research is conducted. It

constitutes the blueprint for collection, measurement and analysis of data. The
design used for carrying out this research is Descriptive.

SOURCES OF DATA COLLECTION

Primary data : Primary data is collected from personal visits of the field. It is
gained through observation and interviewing the target market concerned.

DATA SOURCE: The sources of collection of Primary data are:

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 Questionnaire
Interview method: Interview was conducted both personally and through
telephone.

Secondary data: Secondary data is collected through information which is

already published in some other sources.

DATA SOURCE: The sources of collection of secondary data are:

Books
Websites

Magazine

Brochure

SAMPLING PLAN:

It is very difficult to collect information from every member of a population .As time
and costs are the major limitation that the researcher faces.

SAMPLE AREA: East delhi

SAMPLE SIZE : 100

SAMPLE UNIT : 1

SAMPLING TECHNIQUE : Random Sampling Method.

ANALYSIS AND INTERPRETATION:

-45-
Data collection through questionnaire and personnel interview resulted in
availability of the desired information but these were useless until there were
analyzed. Various steps required for this purpose were editing, coding and
tabulating. Tabulating refers to bringing together similar data and compiling them
in an accurate and meaningful manner. The data collected by questionnaire was
analyzed, interpreted with the help of table, bar chart and pie chart.

-46-
 RESULT AND ANALYSIS
1. Age of the respondents

Less than 25 11 11%

25 - 35 40 40%

35 - 45 20 20%

Above 45 29 29%

TOTAL 100 100

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 11% of the respondents are less than 25 years old.

b) 40% of the respondents are between 25 and 35 years of age.
c) 20% of the respondents are between 35 and 45 years of age.
d) 29% of the respondents are more than 45 years of age.

-47-
 2. Qualification of the respondents.

PARTICULAR NO.OF.RESPONDENT PERCENTAGE

Graduate 52 52%

Post Graduate 29 29%

Diploma 8 8%

Other discipline 11 11%

TOTAL 100 100%

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 52% of the respondents were graduate

b) 29% of the respondents were post graduate
c) 8% of the respondents were diploma
d) 10% of the respondents were other discipline

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3. Occupation of the respondents

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Business man 34 34%

Professionals 18 18%

Job holders 37 37%

Others 11 11%

TOTAL 100 100%

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 ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 34% of the respondents are businessmen.

b) 18% of the respondents are professionals.
c) 37% of the respondents are job holders.
d) 11% of the respondents are background.

4. Average annual income of respondents.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Up to 1 lakh 33 33%

1 lakh - 3 lakh 43 43%

3 lakh - 5 lakh 20 20%

5 lakh & above 4 4%

TOTAL 100 100%

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 ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 33% of the respondents have an average annual income up to 1

lakh
b) 43% of the respondents have an average annual income from 1
lakh to 3 lakh
c) 20% of the respondents have an average annual income from 3
lakh to 5 lakh
d) 4% of the respondents have an average annual income above 5
lakh

5. Family size of respondents

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Below 5 members 50 50%

5 - 10 members 32 32%

Above 10 members 28 28%

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TOTAL 100 100%

ANANLYSIS:

From the survey it was found that amongst 100 respondents

a) 50% of the respondents are below 5 members.

b) 32% of the respondents are between 5 to 10 members.
c) 28% of the respondents are above 10 members.

6. Reason for buying an insurance policy?

PARTICULARS PERCENTAGE
NO.OF.RESPONDENT

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Risk Coverage 10 10%

Tax Savings 3 3%

Good return 4 4%

Security 3 3%

All the above 80 80%

TOTAL 100

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 10% of the respondents say risk coverage.

b) 3% of the respondents say tax savings.
c) 4% of the respondents say good returns.
d) 3% of the respondents say financial security.
e) 80% of the respondents say all of the above.

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 7. Awareness regarding insurance.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Yes 98 98%

No 02 2%

TOTAL 100 100%

ANALYSIS:
From the survey it was found that amongst 100 respondents

a) 98% of the respondents say that they are aware of insurance.

b) Only 2% are unaware of insurance.

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 8.Awareness of ICICI Prudential life insurance

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Yes 55 55%

No 45 45%

TOTAL 100 100%

Awareness of ICICI Pru

Yes No TOTAL

100

80

60

40

20

0
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 55% of the respondents say that they are aware of ICICI

Prudential life insurance co.
b) 45% of the say that they are unaware of ICICI Prudential life
insurance co

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9. Percentage of respondents who are under different plans of ICICI Prudential life
insurance co.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Invest gain plan 41 41%

Unit gain plan 36 36%

Child gain plan 8 8%

Whole life plan 15 15%

Pension plan No No

TOTAL 100 100%

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 INSURANCE PLANS OF ICICI PRUDENTIAL

15%

8% 41%
Invest gain plan
Unit gain plan
Child gain plan
Whole life plan
36% Pension plan

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 41% of the respondents are under invest gain plan

b) 36% of the respondents are under unit gain plan
c) 8% of the respondents are child gain plan
d) 15% of the respondents are whole life plan
e) No body under pension plan

10. % of respondents benefits of choosing the particular products

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Risk coverage 60 60%

Additional benefit 20 20%

Maturity date 12 12%

Sum Assured 8 8%

TOTAL 100 100%

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 ANALYSIS:
a) 36% of the respondents say that a benefit of choosing the particular
Product is for Safety of life.
b) 20% of the respondents say that a benefit of choosing the particular
products is for additional benefit to family
c) 12% of the respondents say that a benefit of choosing the particular
products is for maturity date
d) 8% of the respondents say that a benefit of choosing the particular
products is for sum assured

11. % of disadvantages in insurance plan

PARTICUALRS NO.OF.RESPONDENT PERCENTAGE

Liquidity 35 35%

Lapsation 20 20%

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Unable to decide 19 19%
premium

High risk coverage 14 14%

Fixed Term 12 12%

TOTAL 100 100%

ANALYSIS:
From the survey it was found that amongst 100 respondents

a) 35% of the respondents say that disadvantages in insurance

plan are liquidity.
b) 20% of the respondents say that disadvantages in insurance
plan are lapsation.
c) 19% of the respondents say that disadvantages in insurance
plan is unable decide premium.
d) 14% of the respondents say that disadvantages in insurance
plan are high risk coverage at high premium.
e) 12% of the respondents say that disadvantages in insurance
plan is fixed term

12. from where you get the information of ICICI prudential life insurance

-59-
 %
PARTICULARS NO.OF
RESPONDENTS
10
NEWSPAPER 15
20
MAGAZINES 20

25
TELEVISON 25
45
COLLEGUES,FRIEND 40

100
TOTAL 100

ANALYSIS:
From the survey it was found that amongst 100 respondents

f) 10% of the respondents say that they use newspaper

g) 20% of the respondents say that follow magazines
h) 25% of the respondents say that follow televison.
i) 45% of the respondents say that follow friends,collegues.

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13.effection channel of distribution in icici pru life

NO.OF RESPONDENT %
PARTICULAR

ADVISOR 70 70

INTERNET 10 10

BANK 30 30

TOTAL 100 100

ANALYSIS

A.70% follow the distribution channel through advisor.

B.10% follow the distribution channel through internet

c.30% follow the distribution channel through bank.

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 FINDINGS

On an analysis and evaluation of the data collected from the respondents the
following findings were found.

Before establishment of private concerns the share of LIC was 45% hence there is a
wide scope for private concerns to enter in to market.

Total 100 respondents have been approached out of which 75 are the potential
respondents who have shown interest for investment and finance plan

Above 20% of respondents are shown interest for investment and financial
plan.
About 12.67% of respondents have already been covered by other insurance
companies.

About 70% follow the distribution channel through advisor

About 45% follow the word of mouth(friends,collegues) company will focus

on it.

About 10% of respondents interested for investment plan after knowing

ICICI PRUDENTIAL LIFE INSURANCE products.

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RECOMMENDATIONS TO COMPANY

Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI invested,
in terms of work force, in terms of market share, in terms of no. of customers. All
these positive stands of the company place at the number one position. On second
aspect whatever amount of money ICICI Prudential save, can be used to increase
the no. of policies, which will helpful to increase the market share of the company.
Since the customers think about the companies in the industry, when they invest
money in the life insurance industry. So its necessary to increase the market share
of the company. There are some recommendations.

Open some more branches in semi urban and rural area.

ICICI Prudential has almost its branches in urban area or metros. So in

order to increase the no. of customer, ICICI Prudential should increase the
approach towards potential customers. For that it has to increase the
branches in the semi urban cities like C, D grade cities. And the rural
marketing is the best option for ICICI Prudential to increase its base in the
market

Improve customer services.In order to take the advantage of being industry

leader in private sector, ICICI Prudential has to improve its customer
services. According to my experience in the company, a good number of
customers forget to pay their premium at time so it causes a big loss to the
company. ICICI Prudential has already collaborated with the ICICI bank
for its Bancassurance facility and then can include another feature in it.
ICICI bank can offer a bank account with the life insurance policy in which

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 an ATM card will be provided. This card will have all the information
regarding the policy as like future premium payment dates, payment made,
money value of the policy at that date, value of the unit linked plan and all
other information what the customer want. This will help the customer to
pay premium on time and save their losses. This will be mutually helpful for
both sister companies, ICICI bank will get new account and ICICI
prudential will be able to more efficient services to their customers.

Bring some unit linked life insurance plans in the market.Being a market
leader doesnt ensure the leadership in the future. Since after increment in
FDI from 26% to 49% all player will have the opportunity to capture the
market share. So in order to maintain its position ICICI Prudential should
introduce some new market linked insurance plan, which will give a
competitive advantage to the ICICI Prudential against its competitors.

Train the financial advisors more efficiently. In the changed scenario, more
efficient training will be needed, so ICICI Prudential should provide good
and efficient training to their financial advisors. Because they are the one
who interact directly with the customers. So good training will give them the
right way to deal with the potential customers.

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 QUESTIONNAIRE
Dear Sir/Madam,

I am a student of RIM,FARIDABAD conducting a marketing survey on

MARKETING STRATEGY of ICICI Prudential LIFE INSURANCE, In Delhi. I
request you to fill this questionnaire & I assure that this data will be used only for
study purpose & it will be kept confidential.

1. Name _________________________________

2. Address

3. Age

Less than 25 35-45

25 35 45 and above

4. Qualification

Graduate Diploma

Postgraduate Other discipline

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5. Occupation

Business

Job holder

Professional .

Other

6. What is your average annual income?

Up to 1 lakh

1 lakh to 3 lakhs

3 lakhs to 5 lakhs

5 lakhs and more

7. Your family size

Below 5 members

5 10 members

Above 10 members

8. According to you life insurance is,

A tax saving plan

A saving scheme with good return

A financial security for the family

Risk coverage

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All the above

9. Have you taken any life insurance product of ICICI Prudential Life insurance?

YES NO

10. If Yes, which are in these?

Unit gain plan

Invest gain plan

Whole life plan

Children plan

Pension plan

Others __________________

11. Are you aware of the benefits in your policy?

Yes No

If yes what are they?

Sum assured

Additional benefits

Maturity date

Risk coverage

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12. According to you what are the disadvantages in an insurance plan?

Lapsation

Liquidity

Fixed term

Unable to decide your premium

Unable to decide the sum assured

High risk coverage at high premiums

Other disadvantages

13. In which of the following would you like to invest?

Equity fund

Debt fund

Balanced fund

Cash fund

Mutual fund

Recurring deposits

14. Any suggestion for ICICI Prudential Life Insurance

______________________________________________________

*Thank you for sharing your valuable time*

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 BIBLIOGRAPHY

Marketing Management by Philip Kotler, Pearson Education 2nd ed.

Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8th ed.

Strategic Management by Tata Mc grew hills 5th edition

IRDA Journal

ICICI Prudential Company magazines

Newspaper and Business magazines

WEBSITES

www.iciciprulife.com

www.google.co.in/indian insurance industry

www.irdaindia.org

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