Section-A

Industry and Company Profile

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INTRODUCTION

The basic human trait is to be averse to the idea of taking risks. There is always an urge to minimize the risks and take protection against possible future. The risk includes fire, the perits of sea, death, accidents and burglary. Any risk may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance, Insurance, whether life or non-life, provides people with a reasonable degree of security and assurance that they will be protected in the event of calamity of failure of any sort. There are number of forces driving the service sector today. Five environmental variables that effect all industries - customers, competitors, government technology and globalization are forcing rapid changes in the service sector. In addition, there are four factors in how quality is perceived, cost control, customer services and the new definitions of the customer. Insurance is one of the leading service sector in our country. Services are relatively intangible, produce and consumed simultaneously and often less produced and consumed simultaneously and often less standardized than goods. There unique characteristics of services present special challenge and strategic marketing opportunities to the service marketers. The real competition between the service marketers was set after globalization of the Indian Economy. The service marketing organization has to meet the expectation of the customers. When it comes to organizational level, it is the financial Advisors (Agents) of the insurance company who are the actual service marketers. In this report an attempt has been made to discuss the key issues which are concerned with agency recruitment and consumer behaviour pertaining to life insurance.

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History of insurance

Insurance in modern era originated in the Mediterranean

during the

13th Century. The earliest record of insurance have been found in Babylonia Greece and Rome. Marine Insurance is the oldest form of insurance followed by life insurance and fire insurance. Life insurance activity in its modern form started in India in 1818 to provide for English Widows when Oriental life insurance company was incorporated at Calcutta followed by Bombay life insurance company in 1823 and triton Insurance company for general insurance in 1850. Insurance regulation formally began in India through the passing of two Acts, the Life Insurance companies Act of 1912 and the Provident Fund Act of 1912. However the first comprehensive legislation was introduced with the Insurance Act of 1938 and an amendment in 1950 that provided state control over insurance business in the country. After independence, the business of insurance, grew at a faster pace as competitions amonst the Indian companies intensified. The decision of nationalization of life insurance business took place in 1956 when 245 indian and foriegn insurance provident societies were first merged and then nationalized. It paved the way towards the establishment of life insurance, to raise the much needed funds for rapid industrialization and self service. General Insurance followed suit and in 1968, the Insurance Act was amended to allow for social control over the general insurance Business (Nationalization) Act 1972 was promulgated. The insurance sector was once agian thrown open to the private sector in December 1999 followed by the establishment of IRDA (Insurance Regulatory and development Authority) in April 2000. The Indian Insurance industry was dominated by two states insurance i.e., the Life Insurance Corporation in Life Insurance and the General

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Insurance Corporation in General insurance before 2000 which were created after the nationalization of the Life and Non-Life sectors in 1956 and 1972 respectively. In Dec'99, the IRDA Act was passed which limited foreign investors to a 26% cap on equity participation, and minimum capital requirement of $20 million. At present, more than 12 private players are in the market and some are still in the pipeline. The advent of the new kids poses to LIC to somewhat extent, for which LIC will have to change its current policies regarding marketing and product management.

THE NEED OF INSURANCE
Life Insurance has come a long way from the earlier days when it was originally conceived as a risk covering medium for short period of time, covering temporary risk situations, such as sea voyages. As Life insurance became more established, it was realized what a useful tool it was for a number of situations, including—

a.

TEMPORARY NEEDS/THREATS
The original purpose of life insurance remains an important element,

namely providing for replacement of income on death etc .

b.

REGULAR SAVINGS
Providing for one's family and oneself, as a medium to long term

exercise (through a series of regular payments of premiums). This has become more relevent in recent times as people seek independence for their family.

c.

INVESTMENT
Put simply, the building up of saving while safeguarding it from the

ravages of inflation. Unlike regular saving products, investment products are

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where the individual makes a one off payment. 5 . Different life insurance policies may vary by frequency and amount of payments. RETIREMENT Provision for later become increasingly necessary. one needs to pay more in annual premium than its cost to insure oneself. others will insurance on regular basis. the level premium eventually becomes less than the amount it takes to insure policy taker. In the early years of the policy. It is typically more expensive than Term Life insurance. which will provide periodical payments in one's old age. his or her family or other beneficiary will receive a large lump sum payment which compensates loss of income caused by the death of the policy holder thereafter or pension benefits. One can buy a suitable insurance policy. when there is low risk. but premiums do not increase with the insurance in the age after one buy's. especially in a changing cultural and social environment.traditionally lump sum investments. as one a higher risk at an older age. term of coverage. What is Whole life insurance ? Whole Life insurance also called Permanent life Insurance. LIFE INSURANCE TAXANOMY What is life insurance ? Life insurance is a contract between a person and an insurance company by which a person pays in a certain agreed-upon amount regularly so that upon that person's death. is bought for the remainder of the policy holder's life. some policies have fixed payments amount that never changes. and the amount and method of final payment of beneficiary. d.

however long that may be. Level : In which the benefit stays the same over a period of 6 . However many policies requires that the policy holder should present evidence of insurability at renewal to qualify for lower rates. should the policy. : Where the benefit Increases over time. There are three types of term life insurance. Some policies can be renewed when you reach the end of the term.holder be fortunate enough to survi ve. However. these are called participating policies. the policy becomes worthless and all the money paid in is lost. ten or twenty years. 2) 3) Decreasing : Increasing Where the benefit decreases over time. The premium rate increase at each renewal date. Whole life Insurance may also be used to build equity and something offer additional investment options in general. the term of coverage.Most of the policies are guranteed to cover one for the reminder of his or her life. What is Term Life insurance ? Term Life insurance is bought for a specific period of time. often five. 1) time. One benefit of buying term life insurance is that it is typically less expensive than whole Life insurance.

Royal Sundaram Alliance. IFFCO-Tokyo Marine. 100 Crore (with a foreign capital not exceeding 26% of the equity) can apply for license to enter market.Reliance. Bajaj Allianz. SBI Life.New York. Many private players that have entered the market have form joint venture with foreign insurers. License have been issued to both Indian and foreign player . Max India.INDUSTRY PROFILE THE ENTRY OF PRIVATE PLAYERS The first move for the liberalization came with the Malhotra Committee Report in 1993 which recommended the privatization of insurance. ICICI Prudential and HDFC-Standard Life have issued their life policiesthe first from the private sector after 45 years. Currently in life insurance segments there are 12 private and one public company. IRDA Act passed in November 1999 had set ball rolling for the entry of private players in domestic sector. TATA AIG. OM Kotak Mahindra are some of the entrants into the newly liberalized Indian Insurance market. Birla Sunlife. IMPACT OF LIBERALIZATION The introduction of private players in the industry has added to the colours in the dull industry. HDFC. ICICI Prudential. The Indian Insurance sector has finally opened up and it is with much anticipation that new players are awaiting their share of market. AVIVA Life Insurance. Any company with the minimum capital of Rs. setting of an insurance regulatory authority and restructuring the government monopoly LIC and GIC and its subsidiaries. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LIC.Since the advent of the 7 .Standard Life.

Though LIC still holds the 75% of the insurance sector but the upcoming natures of these private players are enough to give more competition to LIC in the near future.90 1.96 4. As a result LIC down the years have seen the declining phase in its career.79 1. The new players have improved the service quality of the insurance.96 1.3 7.71 .93 .73 4. NAME OF THE PLAYER LIC ICICI PRUDENTIAL BAJAJ ALLIANZ BIRLA SUNLIFE SBI LIFE HDFC STANDARD TATA AIG MAX NEW YORK AVIVA OM KOTAK MAHINDRA ING VYASA AMP SANMAR METLIFE MARKET SHARE (%) 71.38 .The following companies has the rest of the market share of the insurance industry.private players in the market the industry has seen new and innovative steps taken by the players in this sector.36 .57 .13 3.31 8 . LIC market share has decreased from 95% (2002-03) to 81 %( 2004-05).The market share was distributed among the private players.

Long term funds for infrastructure development will be available to the country. When world over insurance market has been opened up. 2. heralding a new era of insurance in India. Globalization is the new economic reality. India cannot remain in isolation. 4. It will enhance the saving rate. The customer will get quicker services. India stands to gain with the following major advantages.80 70 60 50 40 30 20 10 0 ICICI LIC HDFC TATA AIG OM KOTAK NAME OF MAX NEW ING VYASA METLIFE BAJAJ BIRLA SBI LIFE AVIVA AMP Advantages of Liberalization Liberalization commitment of the country to help in disciplining future economic policies will include the insurance reforms. which is here to stay. History has shown that it is difficult to prosper in isolation. 9 . With the opening of the insurance industry. 1. 3. Globalization will provide opportunities to the customer for the better production with more reasonable and affordable pricing.

6. Unlike west. Global competitors will help in building expertise with their global practice. 12. Lead to increase in employment.5. Insurance covers are expensive and returns are low. Turn over of the agent is high. in India. 10. 8. They are only intended to find customer. 10 . which makes the development in this area mandatory. It will secure for India larger inflow of foreign capital need to sustain our GDP growth. 11. products and prices. The world class technology will be available in the market bringing about tremendous improvement in servicing. Choice of price will be available to the customers. Impression about LIC is that they are not meant for the market requirements. The choice available to the insuring public is inadequate in terms of services. requirement leading to 9. The opening up will enable the country to save more and invest more for the development in infrastructure. These are the areas of weakness. insurance is sold as the instrument of saving. 7. which may act as opportunities for new players who may work to offer policies to the customer with the value additions at a competitive premium with much improved servicing. 13. With new insurance intermediaries and more distribution channels the market is bound to develop by leaps and bounds. Insurance awareness is therefore low unit linked insurance products are not available. In the next few years it is established that the Indian insurance sector will develop a better understanding of consumer more satisfaction of consumers. About 18% of the policies are sold as death risk consideration. Social and rural obligations will also be served as IRDA has come out with clear regulation in this regard.

Not only there is a reduction in the premiums of life insurance products have long overdue since Indian mortality rate has decreased three folds in the last 50 years. further insurers have to institute proper claims management progress in order to extract efficiencies. How many Indians are aware that LIC has more than 60 products and GIC has more than 180 products. Currently. this needs to be viewed in the light of some recent issues that have been raised regarding as to what constitutes the rural market. A very exclusive approach in view is unlikely to provide meaningful numbers. However. It being the 5th largest economy in the world in terms of Purchasing power Parity (PPP) has a GDP growth rate of over 6% per year on an average for the last decade. A higher percentage of business is in the rural market. There is also scope to increase the yield one life insurance policies (Presently 6%) with proper risk management in place. insurance is bought for the purpose of tax-benefits. At present life insurance business in the country is taxed at 11 . Insurance even more than banking is a volume game. Even the first portfolio vote that is considered profitable. In the total population. private insurers will be best served by middle market approach. the insured population is estimated to be about 80 million.WHY INSURANCE IN INDIA India is having population of 1 Billion with a middle class population estimated up to 300 million. cross subsidizes the other departments. It is been debated that insurance business does not produce profit in the first five years cross subsidization is a feature of Indian market. The share of rural new business insurance total new business is 55% in terms of policies and 47% in terms of sum assured. Tariff reduction is likely to reduce profits. targeting the customer segments that are presently unexploited. The saving rate is estimated to be about 26% of the GDP. Therefore.

Yet more than fourth of India's Insurance population has no life insurance cover. 12% for Korea. 35% for other European and American 12% for Korea.12. Japan has 31% European Union 25% South Africa 2. Gross premium collected is about 2% of GDP and is growing between 15-20 percent per annum. rising literacy rates and insurance of the service sector. 12 very less. it has been 4 times faster than that of its GDP. Canada 1. India has also the highest number of Insurance policies in the world. Among the emerging economics. The demand for Insurance is likely to increase with rising per capita incomes. $ 1000 for Republic of korea. Per capita insurance premium in India 1999 was only $ 8 while it was $ 4800 for Japan. $ 887 for Singapore. Insurance is a Rs. 9% for UK and less than 2% in india in 1999. The government is soon to present a new model of taxing life insurance companies at international rates. India is one the least insured countries. After Korean and Taiwanese insurance sectors were liberalized.3%. The Insurance premium as a percentage of GDP was 14% for Japan. 400 billion business in India and together with banking services adds above 7% to India's GDP. Thus insurance will have a very crucial role in the growth of the country's economy. While the per capita insurance premium in developed countries is very high.3.5% of the profit in financial year. Market penetration is low and the potential to exploit is high. The penetration of life insurance is very low in India. but the potential for further growth is phenomenal. it is quite low in India.%.7% . 9% for India in 1999. Similarly the Insurance premium as a percentage of GDP was 52% for UK. The share of India in world market in terms of Gross Insurance Premium is again and for India it is only 0. 13% for south Africa. $ 823 for Hong Kong and $ 144 for Malaysia. Thus following points conclude about the need to promote Insurance in India: • Only 23% of the insurance population has been extended cover. the korean market has grown 3 times faster and in Taiwan.

with the nationalization of insurance industry. Together with banking services.In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. was its counterpart in the casualty sector. score low on customer service front. Existing insurance company. THE LIFE INSURANCE SCENARIO IN INDIA With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. Since then the insurance industry has gone through many sea changes. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run. This is an indicator that growth potential for the insurance sector is immense in India. • • Huge middle class of approximately 300 million. Today it stands as a business growing at the rate of 15-20 per cent annually. the state-run Life Insurance Corporation of India (LIC) has held the monopoly in country's life insurance sector. Lack of comprehensive social system benefit and welfare means that demand for pension products is high. The entry of the private players and the increased use of the new distribution are in the limelight today. General Insurance Corporation of India (GIC). Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform.since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. Over the time. The competition LIC started facing from these companies were threatening to the existence of LIC. 13 . Since 1956. The key element of the reform process was Participation of overseas insurance companies with 26% capital.• • Insurance premium per capita is very low. with its four subsidiaries. it adds about 7 percent to the country’s GDP .

With a huge unionized. the premium rates charged by LIC are among the highest in the world. LIC run the risk of high fixed cost. it has every little to take pride in and there lies the potential for players to challenge this behemoth. The foreign player. will be in advantageous position. rigid workforce mostly in the clerical category. The share of life insurance in gross financial saving of household sector shows a steady increase from 10. and its track record in customer service can at best be called shabby. which will be the deciding factor for productivity in the competitive scenario. aggressive marketing and better consumer care. the real market lies in rural India. 14 . It has around $ 40 billion as its financial sector. with the state-of-the-art technology under the belt. Even though the public insurance companies still dominate the market. innovative bundling of insurance with other financial services. can test the unconventional distribution channels like brokers. on the qualitative side. the truth is that its technology is outdated. it has created an enviable brand name. although foreign players may be tempted to keep their operations in big cities for the ' cream layer' of the society. the banking distribution system etc. 80% of LIC's business is procured by 20% of its ill-trained agent force. The new players. While boasting full-scale automation of its operation. Although the market was opened to primary entry some five years ago. the fruits of competition are already visible in terms of wide range of products. It has agents and branches in every nook and corner of the vast country. As is typical with monopolies. with the domestic partner's string band value. particularly among the rural population of the country. which accounts for the lion's share of LIC's present business.9% in 2001-02.6% in 1998-99 to 13.taking advantages of its monopoly and virtual prerogative in establishing premiums. LIC has evolved into a monolith. However. the real competition has started only in the last two years as it took a while for private entrants to establish themselves.

First Banking food insurance. which is more appropriate indicator than total premium.48% over previous year. In 2003-04. LIBERALIZATION OF INSURANCE SECTOR Perhaps of all the most critical regulation is the 26% equity Capital for foreign insurers.this regulation bring in issues regarding management control and one of the resons for Joint venture breaking up Cubb-Kotak. In fact. the first year premium (including single premium). which already in other world markets. Banks and financial companies will emerge as attractive distribution channels for this insurance trend will be led by two factors. All State-Dabur.96% in 2003-04 and in 2004-05 market share of private player has reached around 18% of total share. we believe that alliance related to distribution rather than to products and technology will prove most valuable. LibertyDabur. In 2002-03 the life segment grew at the rate of 11. In fact we believe that alliance related to distribution rather than to produce or techonlogy will prove most valuable in the long run. The stages where brand strength will be competitive advantage and sketch their world accordingly. Manu Life-UTI are some of the broken up alliances.66% in 2002-03 to 12. In this short period the private players in life sector have perfomed admirably.35% in 2001-02 to 5. New entrants should be well advised to look ahead to the stage where brand strength will be a competitive advantage and sketch their alliances accordingly. in life insurance segment. fund management and other financial services companies are being to increase their profitablitiy and 15 . grew at 10. The share of private insurers in the first year premium (including single premium) business has steadily increased from 1.Life insurance business in India have been growing at a respectable rate.27%.

The bill was passed regarding this in 1998. the IRDA is also entrusted with the task of developing the market that calls for generating insurance awareness in the country. The insurance returns committee under chairmanship of R. IRDA drafted the rules of the game. Further. Some Indian entrants like ICICI. 1993 report suggeted reforms in the insurance sector including improving the functioning of LIC. creating better incentives for Agents and intermediaries. Keeping prices affordable but also insisting on some mandatory products. Besides.provide maximum value to their customers. and customer bases. Therefore.R. In other market notably Europe. Malhotra in its April.N. it now performs referee's role of ensuring that the players play by the rules. This means ensuring proper disclosure.D. The committee submitted its report on 7-01-1994 to Union Finance Minister. they are themselves looking for a range of products to distribute. and most important making sure that consumers get paid by insurers. liberalizing and developing a strengthening the regulatory system. It has evolved 16 .A. this has resulted in bank assurance. ensuring the solvency of insurer is a very important function of regluatory authority. HDFC and reliance hope to ride their existing network About I.Finanlly Insurance Regulatory and Development Authority (IRDA) gained statutory status in April 2000. Growth of insurance business entails better education and production to customers. GIC. IRDA's basic function is to protect consumer interest. selected the players who would enter the market and us here them. Bank entering into the insurance business in India to bank hope to maximize expensive existing network by selling a range of products more of a loss alliance between insurance and bank than a formal ownship. Having achieved all this. IRDA has evolved a set of operational guidelines to deal with maintaining the solvency of insurers.

Consumer protection norms. Ensuring the rural and health insurance are developed. 17 . Liberty-Dabur. Manu Life-UTI are some of the broken. All State-Dabur. the critical aspects of IRDA in governing insurance sector are. of agents and brokers are required to check their indulgence in activities such as Perhaps of all the most critical regulation is the 26% equity Capital for foreign Insurers. solvency norms etc. Fixing of license fee. This regulation bring in issues regarding management control and one of the reasons for joint venture breaking up Cubb-Kotak.guidelines on the entry and functions of such intermediaries.       Regulate covering investment.  The number and role of Private sector operates including-Roman area intermediaries. Licensing fraudulent practices. and misappropriation of funds. Product range. Thus. Accounting practices. rebating.

2004. 18 . Delhi. the Stock Exchange. ABOUT ICICI ICICI Bank is India’’s second-largest bank with total assets of about Rs. 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). as well as 7 bencassurance tie-ups Today the company is the number -I private life insurer in the country. 13780 crore and premium income in excess of Rs. ICICI Bank posted a net profit of Rs. ICICI Prudential's equity base stands at Rs.000 advisors.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake repectively. Kolkata and Vadodara. In the year ended March 31. 9. 2005. Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). for a total sum assured of over Rs. a premier financial powerhouse and prudential plc. ICICI Bank’’s equity shares are listed in India on stock exchanges at Chennai. The company has a network of about 56. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking.1. asset management and information technology. life and non-life insurance. a leading international financial services group headquartered in the United Kingdom. venture capital.112.024 crore and a network of about 450 branches and offices and about 1750 ATMs.637 crore for the year ended March 31.000 policies.COMPANY PROFILE ABOUT ICICI PRUDENTIAL ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. 980 crore. the company had issued over 615.

the company had over US$300 billion in funds under management. Riding on the success of this relationship. Korea. known for their professionalism. excellent quality of service and long term commitment to the customers. investment management and general insurance. In Asia. The two companies bring together two of the strongest financial service brands in Asia. banking. and Prudential plc has 26%. mutual funds. 2004. to form ICICI Prudential Life Insurance. Hong Kong. Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries . ICICI Bank has 74% stake in the company. Malaysia. PARTNERS ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management Company. with a commitment to provide leading-edge life insurance solutions. the US and Asia. the two companies jointed hands once more in 2000. It is being hoped to achieve by : 19 . VISION The vision is to make ICICI prudential the dominant Life and Pension player built on trust by world-class people and service. Singapore. pensions. As of June 30. Prudential has brought to market an integrated range of financial services products that now includes life assurance. India.ABOUT PRUDENTIAL Established in London in 1848. Taiwan. Prudential plc. the Philippines. which has today emerged as one of the leading mutual funds in India. provides retail financial services products and services to more than 16 million customers.China. Japan. Indonesia. through its businesses in the UK and Europe. Thailand and Vietnam. policyholder and unit holders worldwide.

efficiently and conveniently  Developing and implementing superior risk management and investment startegies to offer sustainable and stable returns to the polcyholders. building transparency in all the dealings. Integrity. the qualities of the work force and the way of work. Ownership and Passion.  Providing an enabling environment to foster growth and learning for our employees. Understanding the needs of customers and offering them . Boundary less. 20 . superior products and service  Leveraging technology to service customers quickly. Each of the values describe what the company stands for. The success of the company will be founded in its unflinching commitment to 5 core values viz. Customer First.  And above all.

ORGANIZATION CHART ICICI PRU (Branch Manager) Tide Agency Bank Assurance Sales Manager Regional Sales Manager Unit Manager Financial Services Consultant (FSC) Advisors Customer Services Representative (CSR) 21 .

Aurangabad.Human Resources) Mr. Ajmar.Coimbatore. Chandra Kochhar Mr. R.V. K. (Chief. Rajagopalan. Bangalore. Jalandhar. Hubli. (Chief .MANAGEMENT BOARD OF DIRECTORS The ICICI Prundential Life Insurance Company Limited Board companies reputed people from the finance industry from India and aboard. Dipan Bhattacharya . Indore. Lalita D. Kamath. Sandeep Batra (Chief Financial Officer & Company Secretary) Mr.investments) Mr. Bhopal. Shikha Sharma (Managing Director) Mr. Goa.Service and operarions) Mr. Gupte Mrs. Anita Pai. 22 . Guntur.P. Calicut. Chandigarh. V. Allahabad. Shikha Sharma (Managing Director) Management Team Ms. Modi Mr. Narayanan Ms. Mr.Mistra. Jamnagar. (Appointed Actuary) Mr. Jameshedpur.Chief Information Technology) DISTRIBUTION ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. Shubhro J. Hyderabad. Mark Norbom Mrs. Dehradun. Puneet Nanda. Jaipur. Gurgaon. Ameritsar. These are: Agra. Ahmedabad. Chennai. Kalpana Morparia Mrs. Kevin Holmgren Mr. M.(Chief. Bhudhaneshwar. (Chairman) Mr. Bhatinda. having command operations in 74 cities and towns in India.

Udaipur. Kottayam. South Indian Bank. 23 . Mangalore. Madurai. Vijayawada and Vizag. Patiala. Trichy. Mumbai. Vashi. Kota. It has also tied up with organizaions like Dhan for distribution of Salaam Zindagi. Thane. Lucknow. Kolhapur.000 insurance advisors to interface with and advise customers. Federal Bank. Surat. Vadodra. Kolkata. Kanpur. Raipur. Ludhiana. Thrissur. Kochi. Noida. Bank of India. Pune. having agreements with ICICI Bank. The company has seven banacassurance tie-ups. Rajkot.Jodhpur. further. Ranchi. Meerut. Karnal.and some Co-operative banks. Nasik. Nagpur. Lord Krishna Bank. ICICI Prudential has recruited and trained over 60. a policy for the socially and economically underprivileged sections of society. Trivandrum. New Delhi. it Leverages its state-of-the-art IT infrastructure to provide superior quality of service to customer.

Plus the power of liquidity. Secure Plus An insurance plan that gives added protection savings and multiple options. all in one! Cash Plus An insurance plan that gives added protection saving. Life Time II A complete market.PRODUCTS OF ICICI PRUDENTIAL SAVING PLAN ICICI Prundential offers a variety of policies that give you the benefits of protection and the opportunity to save for important assets or events. like a home. throughout a lifetime. Save 'n' Project A traditional endowment savings plan that offers both high returns and protection. a car or wedding.linked insurance plan that adapts itself to your changing protection and investment needs. 24 . multiple. CashBak An endowment savings plan that allows you to get back substantial survival benefits without having to wait till the maturity date. options.

. Level term Assurance .Single premium On death the entire sum assured will be paid. No Survival or maturity benefits. SmartKid is designed to 25 . Level Term Assurance without return of premium On death the entire sum assured will be paid. all the premiums paid will be returned. life is full of uncertainties and even the bes-laid plans can go wrong.a set of pure protection plans. Choose from amongst three different product structures to insure your life and provide total security to your family. you will always strive to ensure a hassle-free. No survival or maturity benefits . successful life for your child. whatever the uncertainties. On maturity. at a very affordable cost. Here's how you can give child a 100% safe and assured tommorrow. However. Level Term Assurance with return of premium On death the entire sum assured will be paid.PROTECTION PLAN Life Guard ICICI Prudential Life Insurance offers Life Guard. EDUCATION PLAN Smart Kid Education Guaranteed As a responsible parent. You can also enhance the above two policies by adding Accident & Disablity benefit Rider and Waiver of Premium Rider (WOP).

3. You can also an Accident Benefit Rider to a Smart Kid Regular premium policy and a Waiver of premium Rider 26 .s educational career and also ensures his or her all. Policy benefits continue: The educational benefits of the policy continue. Even in your absence. to your child. for a nominal additional amount.round development. Smart Kid regular premium Smart Kid unit-linked regular premium Smart kid unit-linked single premium All these plans offer you : Guaranteed Financial Benefits : Regular Payments at critical stages in your child's life. I Development Allowance : Smart Kid guarantees regular income to secure your child. All Smart Kid plans can be enhanced with the accident & Disability Benefit Rider and Income Benefit Rider. like Board examinations. ensuring that your child can realize his or her dreams without any hassles. in the unfortunate event of the death of parent. 1. The Income Benefit Rider takes care of this through an annual payment of 10% of the sum assured. taking all possiblities into account. Graduation and Postgraduation. Total peace of mind Sum Assured is paid immediately : Ensurers that your loved ones stay financially secure. till the maturity of the policy.provide flexibility and safeguard your child's future education and lifestyle. All future premiums are waived : Ensuring that your family is not financially burdened in your absence. 2.

Forever Life 27 . ICICI Prudential presents Retirement Solutions that combine the best of insurance and investment. and invest in generate potentially higher returns.(WOP) to Smart Kid unit-linked regular premium policy. to Life Link Pension II A single premium linked pension plan that gives you the freedom to choose the amount of premium. market. These solutions are developed to ensure your peace of mind for the years to come. RETIREMENT PLAN Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier generations. and invest in market-linked funds. stretching into a couple of decades.linked funds. to generate potentially higher returns Secure Plus pension A regular premium pension plan that gives you the flexiblity to choose between 3 levels of sum assured for the same level of total annual contribution. this increase will mean a longer retirement life. For you. One can choose from amongst 4 retirement plans: Life Time Pension II A regular premium linked pension plan that gives you the freedom to choose the amount of premium.

absolutely free. In the event of an unfortunate death. Life Annuity guaranted for 5. the beneficiary will recieve higher of the value of units or the intial death benefit. GROUP SOLUTIONS In an era of competitative parity. based on your investment objective and risk appetite. 4. Life Annuity Life Annuity with return of purchase price. 15 years Joint Life. Withdrawal Benefit : One can make petial withdrawals from the accumulated value of the policy after completion of one policy year. 3. The quality of an 28 . less any withdrawals. the only asset that makes a decisive difference between corporate success and failure is the quality of human capital.A regular premium pension plan that helps you save for your retirement while providing you with life insurance protection. 5. 10. If at a later stage your financial priorities change. you can switch the various fund options. Last Survivor with returns of purchase price. Employee benefits have proven to be an excellent tool to optimize the retention of talent and improve an organisation's bottomline. without the market risk compromising on the protection of your family! Death Benefit: The Sum Assured under the products has 2 options. 2. either 500% of the intial premium or 105% of the intial premium. Last Survivor without returns of purchase price. INVESTMENT PLAN Life Link II is a unique plan that combines the security of a life insurance policy with the opportunity of enjoying high returns on your investments. 4 times a year. Joint Life. Choose from 5 Annuity options at the time of investing 1. Flexibility : Choose from four fund options.

Quality service initiatives and transparency across all operations.organisation's employee benefits establishes and maintains a company's image as a caring employer. Group Gratuity Plan: Helps employees fund their statutory gratuity obligation in a flexible and hassle. Group Term Assurance : Helps provide affordable cover to members of a group. with a minimum group size of 25 persons. The benefit under the policy is paid on the event of the member's death to the beneficiary nominated by the member. and can be extended to all employees between the ages of 18 and 65 years. Personalised financial planning for your employee that takes care of his/her changing financial needs at every stage of life. 29 . stability and profitability of the portfolio. Optimum care of employees is a long-term investment that results in a sustained competitive advantage for a organisation in the times to come. Group Term Assurance ICICI Pru's flexible group term solution helps provide affordable cover to members of a group. promising superlative operational efficiency. ICICI Pru Group Solutions Advantage An integrated basket of employee benefit soluations that offer incomparable flexible benefits. Sound investment management that focuses on safety. The cover could be uniform or based on designation/rank or a multiple of salary.free manner. Group Superannuation Plan: A flexible scheme (defined benefit and defined contribution) to provide a retirement kitty for each member of the group. It is a one-year renewable policy where one master policy covers all proposed employees comprising the group.

Premium is viewed as expense in the year of payment.to meet the diverse financial goals. Highlights include : Greater convenience for the employees with relaxed underwriting and medical requirements. Value and regular a business 30 . "Free Cover Limits" with simplified underwriting depending upon the number of employees in the group and the level of cover chosen. Wider choice of investments with Market Linked Plans . Employers can avail of the tax benefits as applicable to approved grautity funds. We offer 4 investment options (Short-term debt. Group Gratuity Plan ICICI Pru's group gratuity plan helps employers fund their gratuity obligation in a scientific manner. the sum assured will be paid to the beneficiary of the employee.New members can join the group and outgoing members can leave the group at any point during the policy term. Transparency through Daily Disclosure of Unit disclosure of the portfolio of each of the investment option. Guaranteed benefit: On death during the term of the contract (While in service). Highlights include. Choice of additional Coverage in form an Accident and Disablity Benefit Rider and Critical illnes cover. Flexibility through switching and contribution redirection option to enable reshutffling of portfolio. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. debt and balanced and capital gurantee plan) where investments will be made in accordance with the fund objectives.

easier access to information and regular statements. The employer and employee can avail of tax benefits applicable to an approved superannuation trust. Contribution towards past service liability is allowed as deduction as per the Income tax reules. 350000 is exempt from Income tax under Sec 10(10).33% of salary bill in a financial year is allowed a deduction for the purpose of compution of profit gains of business. The scheme will provide for a retirement 31 . Actuarial Services to provide a scientific estimation of the gratuity liability. Complete end to end solution in the legal and regulatory appoval process for scheme set up or transfer. Group Superannution plan ICICI Pru's Superannuation Scheme (for both Defined Benfit and Defind Contribution funds) offers substantial benefits to both employers and employees. Low explicit charge structure with the conditions for exit specified upfront. Gratuity received up to Rs. Employee Benefits The contribution made by the employer is not included in the value of taxable perquisites in hands of the customer.Greater value to the empoyee by packaging life insurance cover with the gratuity. Enhanced service levels through faster claim settlement. Employer Benefits Annual contribution up to 8. with mininmal amount of underwriting.

debt.to meet the diverse financial goals. We offer 4 investment options (Short-term debt. 1. 32 . Low and Affordable Premiums Life Cover. Rural Plan ICICI PruLife Rural Products are designed to meet the needs of the rural consumers.  Complete Superannuation package with our annuity options and open market option.fund for each participating employee. 2. balanced. An employee would be able to choose from various annuity options or opt for partial commutation of the annuity at retirement. Complete end to end solution in the legal and regulatory approval process for scheme set up or transfer. Enhanced service levels through faster claim settlement. Low explicit charge structure with conditions for exit specified upfront.  Transparency through Daily disclosure or Unit Value and regular disclosure of the portfolio of each of the investment option. growth and capital guarantee Plan) where investments will be made in accordance with the fund objectives.  Each member/employer can excercise greater control over investment by choosing one or more of the investment options.  Flexibility through switching and contribution redirection option to enable reshuffling of portfolio. easier access to information and regular statement. High Lights include :  Wider choice of investments with Market Linked plans . These products offer the following features.

Saving Option Hassle free procedure.000 • Premium / Year Rs. 10.Endowment Plan. • Sum Assured Rs. • Premium Mode Half Yearly / Yearly • Term 5. 4. ICICI Prudential offers 2 specially designed rural plans.10. ICICI Pru Suraksha . 507-553 (SA : Rs.Endowment Plan • • • Life Cover and Savings Regular Premiums Age at entry 18-45 Yrs. 5.Regular Premium ICICI Pru Suraksha is a regular premium policy with the following features: Individual policy Only Life cover 33 .3.000 -20.15 Yrs.000) • Maturity / Death benefit Sum Assured ICICI Pru suraksha.Regular Premium ICICI Pru Mitr. ICICI Pru Mitr .

namely: Major organ transplants.20. Sum Assured Single Premium/ Year Rs. at a nominal cost. Age Independent premium Age to entry 18-45 Years.000 Death Benefit : Sum Assured RIDERS ICICI prudential gives you the freedom to form your very own comprehensive insurance policy by adding the rider benefits to the basic life insurance policy. Major Surgery of the aorta. Paralysis.000 . Critical illness Benefit Rider This rider provides protection against 9 criticla illnesses. Add from the following list of benefit to increase the scope of your policy. 50—200 Maturity/ Death benefit : Rs. 5. Valve replacement surgery. Heart attack.Term . Complete renal failure. 34 . CAGS ( Bypass) and Cancer. Stroke.3 & 5 Yrs.

Benefits paid on contracting the illness • Accelerated benefits (Available with Save n' Protect and Cashbak) : If the policyholder is diagnosed with any of the specified illnesses. The life cover along with all the riders is then terminated. he/she is paid the rider Sum Assured and the rider terminates. Premium paid. Intermediate procedures . However. Major Procedures . However. the policy value accumulation continues till the end of the term or death. These surgical procedures are divided into 3 categroies and the extent of assistance provided depends on the type of procedure. under this rider are eligible for tax benefits under Section 80D. and Group Term Plan) : If the policyholder is diagnosed with any of the specified illness.50% of the rider sum assured is paid. the base policy continues till maturity. Major Surgical Assistance Rider This rider provides assistance to the policyholder against 43 surgical procedures. Life Forever Life. 35 . However. The policy along with all the riders (to the extent of the Rider Sum Assured) is then terminated. • Time II. whichever is earlier. Life Time. then the policyholder is paid the entire sum assured under the rider. The policyholder will have to continue paying his premiums for the remainder of the policy. Standalone benefits (available with Premier Life. Cashplus and SecurePlus Pension) : If the policyholder is diagnosed with any of the specified illnesses.30% of the rider sum assured is paid. then the policyholder is paid the entire sum assured under the rider. the remainder of the base policy continues till the end of the term. • Accelerated benefits (Available with SecurePlus.

SecurePlus Pension. • In case the policyholder dies in a land surface. • Plus. SecurePlus. which helps in providing that extra money and takes care of sudden financial set back that occurs after a tragic disablity. 10% of the rider sum assured is paid for the next 10 years. Lifetime II. Premier Life. Benefits payable in case of permanent disablity due to an accident. Accident And Disability Benefit Rider • • Benefit payable on death due to an accident . Secure Plus. LifeGuard. Cashbak. Life Time II. Premiums paid under this rider are eligible for tax benefits under section 80D. Forever Life. Life Time Pension II. • Accident & Disability Benefit rider is available with Save n' Protect. Liftime Pension II. This benefit is payable on more than one occasion when the life assured undergoes surgery. In case of Lifetime II. Life 36 . Life Time. Cash Plus and Secure Plus Pension. • If the policyholder survives and accident but becomes permanently disabled then the premium for the basic plan is completely waived off to extent of the rider sum assured. Smart kid Child Plans. mass public transport system wherein the policyholder was travelling as a fare-paying passanger. ROP. CashPlus. If the policyholder dies due to an accident. Major Surgical Assistance rider is available with Save n' Protect. 100% of the rider sum assured is paid in addition to the basic sum assured. Cashbak. Life Time.20% of the rider sum assured is paid.Minor procedures . However the total benefit payable in case of all the procedures is restricted to a maximum of 50% of the sum assured. Cashplus. LifeGuard WROP and Group Term Plan. SecurePlus. then 200% of the rider sum assured is paid. Forever Life.

37 .Guard ROP and Life Guard WROP. Lifetime II. Smartkid regular premium. all future premiums for both the base policy and rider(s) will be waived till the end of the term of the rider or death of the life assured. 10% of the rider sum assured is paid annually to the benefit. CashPlus. Life Time Pension II and SecuredPlus Pension. Premiums paid under this rider are eligible for tax Waivor Of Premium Rider (Wop) One total and permanent disability due to an accident. Income Benefit benefits under Section 88. Cashbak. and Secure Plus Section 88. on each policy anniversary till maturity of the rider. if earlier. Pension. SecurePlus and CashPlus. 100% of the rider sum assured is paid in addition to the basic sum assured. rider is available with SmartKid Child Plans. Accident Benefit rider is available with Save n' Protect. • Waiver of Premium rider is available with SecurePlus. Life Guard ROP. Premium paid under rider are eligible for tax benefit under Section 88. ForeverLife. SmartKid Unit-Linked regular premium II. CashPlus. SecurePlus. Premium paid under this rider are eligible for tax benefits under Income Benefit Rider In case of death of the life assured during the term of the policy. Accident Benefit Rider If the Policyholder dies due to an accident. the waiver of Premium benefit is not available. Life Guard WROP.

• Sections 88. SecurePlus . all in one! 38 .oriented policies are designed to make your savings grow and have them available to you at the end of a fixed number of years or through the term of the plan. to secure funds for your children's education. Premiums paid under this rider are eligible for tax benefits under NRI PLANS Being away from India doesn't mean you have to compromise the safety and security of your loved ones.whetheer it's to buy a house in India or fund your entrepreneurial vision. Saving Plans Endowment policies are a good way of putting aside your saving today for a future goal.an insurance plan that gives added protection savings and multiple options. • • • Investment Plans Saving Plans Retirement Plans Investment Plans You can hedge your investments with investment like Lifelink II vehicles that provide you with a diversified portfolio. So. Our saving. whether its your dream to retire in your hometown. your savings from your time overseas can be easily channelised to meet your family's needs. In fact. ICICI Prudential has a range of solutions that can be customized to meet yours needs.now and in the future. or to build assets.

to generate potentially higher returns. LifeTime Pension II : A regular premium linked deferred pension plan that gives you the freedom to choose the amount of premium.going on a dream vacation or helping our child's career take wing. LifeTime II. and invest in market. Our retirement plans are designed to help you systematically save. to generate potentially higher returns. ForeverLife : A regular premium deferred pension that helps you save for your retirement while providing you with life insurance protection. so that you can enjoy all the things you have dreamed of when you retire.CashPlus : an insurance plan that gives added protection savings. multiple options. Save n' Protect . throughout a lifetime. Retirement Plans Many of us picture ourselves enjoying the fruits of labour after retirement . Plus the power of liquidity.a complete market-linked insurance plan that adapts itself to your changing protection and investment needs.a traditional endowment savings plan that offers both high returns and protection.an endowment saving plan that allows you to get back substantial survival benefits without having to wait till the maturity date. Financing all this will depend on our personal saving and investments. SecurePlus Pension : A regular premium deferred pension plan that gives you the flexibility to choose between 3 levels of sum assured for the same level of total annual contribution. LifeLink Pension II : A single premium linked deferred pension plan that gives you the freedom to choose the amount of premium. 39 . so its important to save for the future form today. and invest in market-linked funds. Cashbak.linked funds.

you want to ensure a hassle. taking all possibilities into account. All premiums paid for securing a keyman life insurance policy are treated as business expenditure u/s 37 (1).linked Single Premium Regular Premium SmartKid • • Keyman Plan A keyman is an individual who directly affects the profitability and the continutiy of a business and whose absence may have an adverse effect on the health and continuity of the business. successful life for your child. The aim is to indemnify the company of these losses 40 .Child Plans As a responsible parent. the company of can be protected. The objective of the keyman insurance is to provide the company with money so that the financial losses of and to allow business continuity. life is full of uncertainties and even the best-laid plans can go wrong. SmartKid Child Plans has a bouquet of three products which can help you secure your child's Education. LifeTime II. However.free. in absence of the keyman. Keyman insurance is a insurance policy taken by the company on the life of such a key person. Save n' Protect and Lifeguard plans are available for the purpose of keyman insurance. SmartKid Education Plans are designed to provide flexibility and to safeguard your child's future education and lifestyle. SecurePlus. • Unit-linked Regular Premium Unit.

is a differed penalty. the penatly will be realized in due time.THE ACTUAL PROCESS The most important responsibility of a Unit Manager is to achieve sales growth. one that simply this.AGENCY RECRUITMENT RECRUITMENT . courteous serves. 41 . Nonetheless. new Advisors usually account for a relatively small proportion of the organization's total production. During the year of appointment. The most promissing means achieving profitable production growth lies in Unit Manager's sales organization's Capacity to give policy owners good counsel and prompt. However. It is what staying in business requires for an ICICI Prudential Manager. steady growth in production. the development needs of sales organization call for successfull recruiting. The induction of a sufficient quantity of high potential advisor results in substantial. It's a necessity. or for inadquate recuriting. Consequently.the penalty for not recruiting. In turn retention and productivity of advisor in your organization depends largely on the quality and quantity of your recruiting efforts. The Unit Managers numbers one job is to achieve consistent production increases. The most promising means of successfully getting this job done is to induct a sufficient number of quality advisors each year. The best guarantee of having that capacity comes from retaining large numbers of productive Advisor. Part of this growth is accomplished by improving the productivity of existing agency member.to give them value for premium paid. This points to a particularly significant fact. bringing sufficient numbers of high quality new producers (agents or advisors) in to your sales organization each year is an absolute must.

the company or the client. It follow five concerns which must be constant in Unit Manager's annual planning. growing agency. To attain success might be achieved in either area without total or real benefits to the agnecy. ADVISOR ROLE 42 . the first three concerns searching.This is why manager who move to the top of ICICI Prudential honor roll and stay there are always found to be manpower-focused. must be considered together. They are eternal . Five Persistent Concerns An ICICI prudential Manager is fully committed in building a high perfoming. There is nothing short term or temporary about the challenge connected with these recruiting concerns. They are constant. They are: • • • • • The SEARCH for talent The EVALUATION of potential advisors The ATTRACTION of advisors The RETENTION of advisors The PRODUCTIVITY of advisors Any manager who attains satisfying results in these five areas will enjoy • • • • • Satisfying sales results Outstanding persitency of business Superior policy owner service capabilities An enviable reputation as a ICICI Prudential agency builder A momentum wich comes from the synergistic benefit of success Obviously. the retention and productivity of advisor. Let's consider some important philosophies related to recruiting. evaluating and attractingare vital. The other two concerns. Before we move to the " how to" of recruiting.

Work full time or part time. Flexible career. Attractive payments and benefits. Be your own boss. bonus & incentives. Earn commission. 43 . SUPPORT REQUIRED TO MAKE A SUCCESSFUL ADVISOR       High quality management support. To provide ongoing financial advice to his/her clients:  Identify future clients  Making appointments  Conduct financial review meetings with clients  Close sale  Get referrals  Provide service to clients. No start-up capital required.  Follows internal sales and reporting system. Extensive training. BENEFITS TO ADVISOR        To be part of a world-class sales team. Superior products. Strong reputation. Unlimited earning potential. Exellent customer service.

FLOW CHART SHOWING HOW TO GET POTENTIAL ADVISOR SEARCH (Where to look for) ATTRACT (How to attract towards life insurance) EVALUATE (How to evaluate) PRODUCTIVITY RETENTION 44 .

45 years Smart appearance and should health Good market High I Q and common sense 45 .25 . Build a weekly recruiting success formula Recruiting Success Formula This strategy will help to keep focused on recruiting enough of the right kind each year. The Number is an indicative and can be developed by the recruiter.COMPANY'S GUIDELINES AGENCY RECRUITMENT     Pru.  ICICI Pru.    Thread of TO UNIT MANAGERS FOR Philosophy of high standards Atmosphere of Success Attraction Power Decide on the profile of the Constant need of advisors at ICICI profile of the advisor Constant need to advisors at Thread of Discontent (TOD) Success determined by past performance. Recruiting success formula 25 contants 8 for interview 2 selected Before moving to search it is important to know the profile of the advisor. The general profile would be :    Age .

Just like prospecive for sales. judging.        Personal observation Present Advisor recommendation.     Ability to work under pressure Prior sales experience Integrity and character Money motivation Drive and ambition STRATEGIES ADVISORS Your search INVOLVED IN SEARCHING POTENTIAL for prospective advisors must be continuous and systematic. For this we followed prospecting. Client referrals College campuses Seminars Newspaper advertisement Direct Mail THE METHOD ADOPTED Following method was adopted by us for the purpose of recruiting Financial Advisors to the company : • The first activity that was being done was to find/ develop a market for the purpose of getting Financial Advisors. scanning 46 . you must search among several sources on a regular basis sources are broadly classified as primary source and secondary source.prospecting is looking.

Those who turn to appointment were given a presentation by us. My colleagues. There were separate categories like my relatives. To make the prospect familiar with the company's profile. 3. etc. My friends. To make the prospect understand the requirement on the part of Financial Advisors. 47 . • A self indicative booklet. • We began with the people we know which constituted our Natural Market. neighbours. The appointment venue was the company's meeting room. To make the prospect aware of earning and carrier growth prospects associated with the company. Location and Contact Numbers in respective column. THE PRESENTATION The aim of presentation was : 1. 4. Once we have done with the filling of my Market 100 we proceeded by making Telephonic Calls and making Appointments. My neighbours. friends. 2.people in our surrounding who can join as Financial Advisors and can be of any worth to the company. "My Market-100" was being filled by us as per instructions mentioned in it. It consisted of relatives. A prospect is a person who possess the essential requirements to become Finanacial Advisors. coworkers and anyone whom we know or are familiar with. To motivate the prospects to join the company as Financial Advisors. This helped us in identifying our Natural Market and it served as a ready reference. Under the above mention categories we filled Name.

Section-B The Research Profile WHY THIS RESEARCH WAS UNDERTAKEN 48 .

SBI Life. he felt the need of acknowledging the awareness and perception level of customers in the same geographical area.A new functional department was formed last year at the company's head office in U.P.P. region. Dabur Aviva. 2) The perception of people about life insurance in different regions of India is not the same because some regard it merely as a tool to tax rebate while others percieve it as an investment plan. For example : 1) The market share of I -Pru on a national level in 32% and this may not be the case with U. by the name Channel Development.L.P.P.AIG. HDFC Standard Life. THE PROBLEM BEING FACED 49 . OM Kotak Mahndra.P. Birla Sunlife. Bajaj Allianz.C. The other point was to know the standing of ICICI PRU in the U. PROBLEM ENVIRONMENT The environment under study is Lucknow . TATA. Since. etc. The other players or competitors playing in the same market are .I. the department was new in U. region because it was felt that all the data available was the result of analysis on a national basis which may not be true for the U.

Increase its agent force by recruiting potencial advisors. They intend to solve the persisting problems by knowing the reasons/ causes to the above problems and planning strategics in various functional units so as to integrate the various management functions in a much better and cordinated way- The company expects the following by solving the problem : 1) 2) Give a tough competition to LIC and other private players.The main problems faced by the company under the above mentioned environment are as follows 1) A tough competition with LIC who was enjoying a monopoly until the advent of private players in the Market. Market share slightly gone down from in the last financial year. 3) Returns are varying. 50 . 4) Difficulties and complexities in the recruitment procedure. 2) Poor number of agent force in comparison to LIC. 5) Qualifying ratio of the IRDA examination has gone due to the centralization of the insurance industry. WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE PROBLEM The expectations of the company are high from this project.

51 . 4) Redesigning its old products and developing new to meet the needs and pocket of the customers. 5) To provide a better and healthy working environment which can attract and retain competent and potential professionals.3) Expand the productivity and customer base through its competent agent force and gaining maximum of customer's satisfaction.

Section-C

Research Methodology

RESEARCH PROBLEM

52

How to define a research problem was undoubtedly a Herculean Task. However it was a task that required effective guidance to aviod the perplexity encountered in a research/ project operation. Our term followed the usual approach by posing questions to ourselves (on behalf of company) and setting techniques for throwing light on question in consecutive steps. Initially we began with-

"What is the perception and awareness of people about life insurance ?"
This problem was later recognized as comprising of no. of ambiguities such as: Whose perception is being referred to ? What period of time, the perception is being talked about? What is the environment, which is being considered? Rethinking, discussions and rephrasing by our team placed the problem on a still better operational basis after no. of steps —

"What is the customer's perception and awareness level about life insurance in Lucknow for various players in the market including ICICI Prudential ?" In Such a fashion, the ambiguities were resolved. Thinking and rethinking resulted in a more specific problem so that it might be realistic one in terms of available data and resourse and is also analytically meaningful. The outcomes were not only meaningful from an operational point of view but were equally capable of paving the way for solving the problem itself.

53

RESEARCH OBJECTIVE & SUB OBJECTIVES

The purpose of our project was to discover answers/solutions to questions/Problems through the application of scientific procedures. Our main aim was to find out the truth which was hidden . The objective was to search and hunt for the solution to our research problem so that the company might use the same in overcoming its weaknesses (if any) and assist the company in planning future startegies.

OBJECTIVE"Expanding the Lucknow". customer base for ICICI Pru in

RELATED SUB- OBJECTIVES
Besides attaining the above objective efficiently, a no. of related subobjectives were also involved,viz. (1) (2) (3) level. (4) potential. Analyzing competitor's business seeking approach and earning Acknowledging Brand Awareness of I- Pru. The purpose of insurance (life). Analyzing competitors work environments and their satisfaction

54

RESEARCH DESIGN

For an project purpose, we selected, "Descriptive Research Design" to describe the characteristics of a particular individual, or of a group (In our case, customers and competitors). Our aim was to obtain complete and accurate information, which required a carefully planned procedure to be, used such a design provided enough provisions for protection against bias and to maximize reliability. The design was rigid and focused attention on the following points : 1. 2. 3. 4. 5. 6. Formulation of objective of study Designing method of data collection. Selecting the sample Collecting the data Processing and analyzing the data Reporting the findings

Form amongst the alternative research design, we made the above choice since the problem was clearly defined and we were specific on what we want to measure. The requirements were adequate methods for measurement and clear-cut definition of " population" under study. Descriptive Research Design was the best among alternatives for our study.

RESEARCH INSTRUMENT USED

55

so as to analyze the demand of customers. We adopted sample survey because it was not possible to examine every item in the population. instruments used were sample surveys. which is the true representative of the population under study.For our research purpose. Customer Survey. CUSTOMER SURVEY The objective of conducting this survey is to acknowledge brand awareness of I-pru. (1) (2) Insurance Market Survey/ Competitors Survey. extensive literature survey and Internet surfing. their working environment and satisfaction level with their respected companies. The idea was to gain enough insight into the insurance phenomenon and analyze the charactersitics of population under study. INSURANCE MARKET SURVEY This phase of our study refers to collection of data from Insurance Agents of our competitors (Who are in a better personal contact with Customers). SAMPLING TECHNIQUE USED & SAMPLE SIZE 56 . The sample survey was further divided into two phases viz. It was possible to obtain sufficiently accurate results by studying only a part of total population. to analyze exactly why they are interested in investing in other insurance companies so that the company may recognize its weaknesses and improve upon them.

technique gave each item an equal probability of being Sample Size Phase (1) A random sample of 175 items was decided to get the required information from the customer. trade journals. viz. monthly performance reports were analyzed. the same technique was adopted to collect information from 100 Insurance Advisors (Agents) in Lucknow working in different Private life insurance Cos. While deciding about the method of data collection to be used. This selected. magazines and newspapers inserts. Phase (2) For Insurance market survey. FIELD WORK DONE The task of data collection began just after research problem has been defined and research design chalked out. and also LIC. company's website was surfed. primary and secondary. competitors brochures were collected and consulted. The group (team) was divided into 4 parts of 2 each to survey ten different branches of LIC and head branches of other competitors/players. 57 . We collected primary data during the course of our study by performing surveys of competitiors and customers. Regarding secondary data. The sample comprised items of all profiles in a well-defined ratio. publication of various association connected with the business and industry. Customer's survey data was done one the individual basis information was collected through schedules and direct interviews.Simple Random Sampling technique was used to collect data from the population. we kept in mind two types of data.

ANALYTICAL TOOLS USED The data. of categories or classes. 3) Classification on the basis of attributes like (Brand Awareness. 2) Coding of responses by assigning numerals or symbols so that the same can be put into a limited no. after collection. Satisfaction Level. Processing operations included the following 1) Editing of data collected to detect errors and omissions and to correct these when possible. The analysis tool used was Casual Analysis. In order to analysis the data collected. Analysis was categorized into Descriptive Analysis and Inferential Analysis (Statistical Analysis). This was essential for a scientific study and for insuring that we have all relevent data for making contemplated comparisons and analysis. 58 .) 4) Tabulation of classified data for comparison and various statistically computations. preferred Brands. This technique helped to draw inferences. need to be processed and analyzed in accordance with the outline laid for the purpose at the time of developing research plan. By analysis we mean the computation of certian indices or measures along with searching for patterns of relationship that exist among the data groups. we used scale construction technique. Purpose of life insurance etc) and on the basis of class interval (like age grand income etc.

Section-D Findings & Analysis Analysis 59 .

employees. 60 .The second group was businessmen followed by private service retired & self employed respectively.Grouping of customer according to their occupation 1 0 0 8 0 6 0 4 0 2 0 0 g o v t e m p lo y e e b u s in e s s m a n s e r v ic e r e t ir e d s e lf e m p lo y e d The customer’s survey was majorly conducted on govt.

Grouping of customer under different age group 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 b e lo w 2 0 -3 0 3 0 -4 0 4 0 -5 0 5 0 -6 0 6 0 -7 0 2 0 The maximum number of people surveyed belong to the age group 3040 next being age group 20-30 and 40-50 61 .

Grouping of customer according to their income 70 60 50 40 30 20 10 0 b e lo w 50 0 0 0 50 0 0 0 10 0 0 0 0 10 0 0 0 0 2 0 0 0 0 0 2 0 0 0 0 0 3 0 0 0 0 0 a b o ve 3 0 0 0 0 0 The income group 100000-200000 possessed the maximum frequency of 78 followed by the income group 50000100000 with frequency 45 62 .

Grouping of customer according to their qualification 2 3 5 5 3 7 i n te r m e d ia te g r a d u a te p o s t g r a d u a te d o c to r a te 1 0 5 b e lo w in te r m e d ia te The major population covered under the customer survey belonged to the graduate segment. 63 . Next group being of post graduates and then intermediates.

followed by the electronic media ads and news papers. 64 .Efforts of intensifying awareness m 8 0 6 0 4 0 2 0 0 h o a r d in g s e d ia a d s a g e n ts n e w s e v e n ts s p o n s o r s h ip b a n n e r s p a p e r s According to the customers . awareness can be intensified mainly by the agents .

Major purposes for taking a life insurance policy 2 2 1 2 0 4 7 5 8 3 0 in v e s tm e n t p r o te c t io n s a vin g ta x r e b a te r e tir e m c h i ld e n t fu tu r e The above graph shows that the major purpose behind purchasing an insurance policy is tax rebate followed by protection and saving. 65 .

The second in the race being I-pru and third HDFC SL.Brand Awareness of life insurance company among the customers 2 0 0 1 5 0 1 0 0 5 0 0 L IC I C I C I P B R I RU L HA D F C O ST T E R S H S U N The customer survey indicates that the brand awareness among people is maximum for LIC. FINDINGS 66 .

 LIC emerged to be the most soughted brand among the customers..BAJAJ Allianz. fourth. third. followed by quality of service (10%). as No. fifth and sixth place respectively.  In regards to the Qualification majority of the customers (75%) are graduate. 100% of the population was aware of LIC.  Quality was ranked.  Amount of premium emerged to be the prominent factor guiding the customer in policy purchase. The main purpose of taking life insurance policy was to seek protection against uncertain future and tax saving.94% customers also mentioned the name of other life insurance 67 .  In response to our survey work we found that the Agents are still the intitiator in consumers buying decision process. product Feature Brand and Price. New York Life. 9% purchase on advice and advertisment was only able to initiate and influence 6% of customers. Birla Sun life. It brings an image that the population surveyed was fairly educated  LIC emerged as the most popular brand. Nearly 73% of the customer considered the premium amount. SBI life was also mentioned by some respondents. Om Kotak Life at second. Birla Sun Life stood third and HDFC Life stood fourth in terms of brand awareness. followed by ICICI Prudential with 72. In life insurance sector-2. players like met life.35% brand awareness. Customer purchases policy on the recommedation of the Agents.1 parameter to what customer demands other parameters that customer demand in order of preference were service. Very few people took policies with the purpose of retirement benefits. HDFC Stan.LIC was ranked at first position followed by ICICI Prudential. 19% are post Graduate. Out of the total sample surveyed. Quality and service are the two major concerns that govern consumers buying behaviour and the customer seems not to do compromise on price for the sale of Quality and service. Child future investment .

6000.8%) .  Mojority of the customers (nearly 84%) had opinion that ICICI Prudential had market share between 5-15%.Met Life.4% preferred annual premium between Rs.5%) prefered to have annual premium deposite. SBI Life.  Majority of the customers (50. ANALYSIS 68 . service (12%).followed by Agents (22%). following it were quality (15%). like . New York Life. 32% believed advertising could increase makert share.  Very few people preferred Banner (12%) and Event Sponsorship (5. In response to another question focusing on the efforts needed to increase the market share of ICICI Prudential 76% emphasized on keeping a widely acceptable/affordable price. less than Rs. 36.companies which have recently entered the market.000. This concludes that the customers are well aware and rightly considered LIC as a market giants.  In response to the efforts required to increase awareness amongst people nearly 40% of the people preferred Media Ad. 6000 to 10.

Life Insurance Corporation still is on the leading side with both in no. This is how the private players dominate the new player with the state of the art technology under their belt are in advantageous position. enjoyes a vital customers patronage. The private companies in their 5 years of operation had continuously suffered by the established leadership and monopoly of LIC. the corporation was enjoying monopoly in the insurance sector until the advent of private players in the sector. organization. continuously threatening the private CUSTOMER 'PERCEPTION 69 . That can be understood under the following heads— AGE OF COMPANY Under the Life Insurance Companies Act. and its track record in customer service can at best be called "Shabby" . A number of factors are responsible for the performance differentiation between the companies. of policies said and in first premium income earned. GOVERNMENT ORGANIZATION When LIC came. the capital of the corporation. 1956.A Current Scenario indicate a failure to create a market for insurance products where 60% of I-Pru products were sold for tax benefit under section 88 of IT. 5 crores. Since then. Though the performance of new player is impressive. was provided by the central govt. the Life Insurance Corporation of India (LIC) was setup on Ist September 1956. which was Rs. LIC being a govt. As a typical with monopoly the premium rates charged by LIC are among the highest in the world. banked players in the market. which is expected to reverse in the coming years.

LOSS CONTROL RISK MANAGEMENT IRDA has recommended every private insurance company to set up a loss control and risk management unit (which would be an external department of experts) to manage the losses and risk. Further the data may be fruitful in designing promotional advertising also positioning strategy in coming time period. Lucknow). organization. This is an advantage to I-Pru over the other private players.Pru was the first and only company in the private sector after LIC to have a RCU (Risk Control Unit) which checks the insurance of sub standard lives and helps to control losses. For Example : Acknowledging brand awareness of I-Pru will provide an aggregate/average position of co.The Indian customers since the decades have been suffering from an orthodox perception that the private companies would be profit oriented and not that the pru customers as a govt. The successful accomplishment of the sub subject also plays a major role in shaping company's marketing HR Policies in future. I. Both HDFC Standard life and I-pru entered the nearly in the same year yet. MARKETING BLITZ The marketing strategy by the LIC not being focused on risk product claim An advantages for the private player.trained sales force. I-pru get the advantage of the product promotion on a mass scale through Media advertising and well. 70 . among several competitors in a particular environment (i.e.

create and deliver want satisfying product and enjoy the best of customer's patronage in the chosen target markets. It proclaims that the entire business has to be seen from the point of view of the customer. Therefore. service man. couple. Any good company practicing marketing concept should always "think customer and act customer".Purpose of life insurance will provide the company with the need and requirement of existing and potential customers. student. In ICICI PRUNDENTIAL we have beifurcated the present human race in accordance with age i. In the end. the customers perceive insurance plans as a tool to tax rebate and savings and they are not much aware of other benefits. Thus. aggressive steps should be taken to make the people aware of such benefits through Agents and media ads so that they may understand human life value (HLV) and make use of such benefits. I came to the conclusion that the strategies we have followed would be more beneficial if same would be implemented in the rural areas. Morover. Analyzing competitor's work environment would be beneficial for the company by HR prospective since the company could now under cover its weakness/shortcomings and can provide a better and healthy job environment to the employees which can attract and retain competent and potential professional. to quench the needs and liabilities in due course of time certain measures are essential to implement so that he should not face the adversities. I insist that in ICICI Prudential. married. infant to old age literally infant. After solving the problem that has been undertaken I analyzed that the inhabitants of Lucknow have the same mind set up. This would help the company to recognize customer wants. we promote more gain by less investment through recruitment of advisors and then promoting the cream out 71 . The inhabitants of the rural areas were more than the inhabitants of urban areas but they are not aware of benefits of the policies.e. retired than old but the person cannot escape from his liabilities which is a regular process of nature.

This would act as an incentive and increase competition among the agents.of them to perform as unit managers. LIMITATIONS OF THE PRESENT STUDY 72 .

In case of insurance. people opt for pension schemes. The challenge here is to sell insurance as an investment option and to create importance of insurance in life.  Insurance is a subject matter of solicitation. From the surveys conducted.  Many people consider insurance as all about getting discount in tax. From making point of view. It is very much like selling a product top someone who hopes never to use it. the intangibility of the product is high.  Till very recently LIC was something that people used to consider synonymous with life insurance.The following challenges and limitation were found to be closely associated with the insurance industry. The outlook and the people's perception regarding insurance needs to be changed. It is the saving for the future.  Indians are very emotional when it comes to insurance. which had a very dull appearance. It is particularly true for life insurance. Which no one knows. It is a people's driven industry.  Insurance is assurance to uncertainties. With the recent entry of many player's in the field the idea now is to change people's perception and seep into their mind set sensitivety and rationality association ship. insurance is all about selling of trust. which is looked is upon in monetary terms. People don't see any immediate benefit out of it. a person is interested in the return that he would be getting on his investment in due course of time. which is a long-term promise. People should be made to realize that it is a great way of saving too. People should be made to realize that insurance is not a business to make quick money but an investment to secure future people in the developed countries take insurance as an investment. As there is not any social security for the aged to rely on. it 73 . Young parents look at insurance product for children's education and support for spouse after oneself. In an ordinary course of investment.

which needs the most delicate of all calculations. status. as it is a public sector Corporation. People are not sure about the future of private insurance players. the solution to this limitation is that insurance players need to differentiate themselves by making attractive and customized product which suit the specific requirement of the prospective policy buyers this can be done to a great extent by giving totally tailored policy according to a customized product which suit the specific requirement of the prospective policy buyers.  Apart from LIC which enjoys the biggest share in life insurance. the way it affected the consumer's purchasing behaviour would be instrumental in building the brand of an insurance company. Despite of IRDA control in regulation development of these companies people still prefer LIC when it comes to trust. Here the limitation is of having limited potential customers factor like age. This can be done to a great extent by giving totally tailored policy -according to a customer's requirement. which limit the potential customers. Anyone and everyone will not jump into insurance without first calculating the gain. dependent and commitment towards dependents are some crucial parameters.  Insurance is a topic. health. CONCLUSION 74 . The limitation here is how to win the trust over when so many companies are offering the same promise/product. earning.is clear that the large segment of society trust in LIC. Trust shall be the deciding factor for the success of private insurance LIC. education. For all the Private insurances. The recent entry of many privates in the field are facing the challege of how to protect themselves as being different when everyone has a single preposition: " saving a fragile things called life" . risks and the initial investment to be made. New India assurance in non life insurance. the only challenge is to break the jinx of LIC in life Insurance and GIT.

Every step of the company to increase its marketability should focus on building trust among the present and the future customer. fear of living too long and critical illness and disability. 6. 5. The key factors indentified were : 1. The private companies have not penetrated the rural market therefore they are not in position to compete in the well established rural market of LIC with that ease. 3. To improve quality of service and after sales service. fear of death. To increase its customer base by focusing on rural areas and middle-middle and lower middle segments of the society. Therefore what is most important is the 'trust'. it has been established by eminent economicsts thath by the year 2008 it can be loose its market share by 50%. The need is to make the customers aware of other benefits by making them understand human life value(HLV) and to look upon life insurance as an investment option. 2. Through LIC still enjoys a huge market share of about 81%. life insurance in India has traditionally been thought for tax benefits and as a tool against uncertainties. they should emphasize on the rural sector as well. 75 . However.e. It all has been possible because of the effective marketing strategies and products innovation by the private players. The needs for life insurance is to cover three contigencies i. In order to take a ride over LIC. 4. To develop promotion strategies to increase awareness about Life Insurance and the company among masses.Life Insurance is a long term promise between the company and the customer. From the present work on ' Agency recruitment and Perception and Awareness level of the customers for life insurance' it can be concluded that private companies have posed a challenge to the public sector. To expand and strengthen the companies reach outTo enlarge and improve the quality of existing sales force (Agent) To develop new products suited to specific requirements of the customers with added features.

This requires passing of necessary legislation in the parliament by the government. in which ICICI Pru leaving the rest market for remaining nine private companies. The Proposed hike in stake of foreign partners (FDI) in life insurance companies up to 49% will help the company to further expand and consolidate its position in India. BIBLIOGRAPHY 76 .The private sector has emerged very fast on the success charts. Since the IRDA Act caps foreign capital at 26% presently.

licindia.com www.Books : Research Methodology Principles and Practice of Insurance Quarterly Reviews C.com APPENDICES Questionaire 77 .com www.R.google. Azim Khan ICICI Prudential Websites : www.icicibank.iciciprulife. Kothari M.com www.

................ Which according to you is the best investment option available in the market: Banks  Insurance Post Office Share & Debentures Real Estate 6........ Graduate Post Graduate 3.....001 – 100000  200001 ............................................................................................ 78 ......300000  300001 & above Occupation : Pvt..............................000 50................... On whose recommendation do people normally invest:  Advertising Agent Word of mouth Any Other What people demand : (Give ranks in 1-4) 8......................... Mobile No......................................................... Age Group: below 20 21 .. Job Business  Defence 5......... .. 1..........................................30 61 & above Educational Qualification: Below Inter Inter Technical/Vocational 31-40 41-50 51-60 2...............20000 4................. Which Insurance Brands available in the Market are you aware of (Place  for as many you know)  LIC ICICI Prudential HDFC Standard Life Birla Sun Life  Om Kotak Allianz Bajaj  AVIVA Life Any Other 7.............. Tel No.....................Name:......................... Address:..... Service Self-employed 100001 ........................................................ Govt................................................ Annual Income: Below 50....:.......

18000 50001 . Which Brand is first sought by the customer: (Give ranks 1-8) S. What factors guide to purchase a policy: Amount of Premium Advertisement Quality of Service Aesthetics Advice Any other 12.a.S.NO.) is more prevalent: below 6000 18001 – 25000 100001 & above 6001-10000 25001 .No.50000 10001 . a) b) c) d) 9. a) b) c) d) e) f) g) h) BRANDS LIC ICICI Prudential Life Insurance HDFC Standard Life Birla Sun Life Om Kotak Life Allianz Bajaj AVIVA Life Any other (please specify) ORDER OF PREFERENCE 11. p. What usage premium in (Rs. PARAMETERS Service Product feature Price Brand ORDER OF PREFERENCE Purpose of Insurance : (Give ranks in 1-6)  Protection Investment Rank  Savings  Tax Saving Child Retirement  Future expenses 10. Are you or your family insured for future: 79 .100000 13.

............................... What efforts can be made to bring about more awareness amongst people: Media Ads Event Sponsorships 16... What efforts can be made to increase the Market Share of ICICI Prudential: Advertisement Work Force Price Quality  Service Date: Signature 80 ................................................................................. Nature of product offering of ICICI Prudential : Excellent Good Satisfactory  Not sastisfactory • if not satisfactory then why ........................... Banners Agents Newspaper inserts Satisfied  Moderately Satisfied What is the market share of ICICI Prudential according to you: Below 5%  20-25% 5-10% 10-20% 15-20% 17..Yes No • If yes then which company ............... 14. 15....................................................... • Are you satisfied with the service of the aforesaid company: Highly Sastisfied  Not Satisfied • What is the scope for improvement...........

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