INTRODUCTION OF BANCASSURANCE

Bancassurance symbolizes the convergence of banking and insurance. It involves distribution of insurance products through a bank’s branch network. The bancassurance, with the potential to redefine the ways in which insurance products are sold, has developed into tremendous success story in Europe. However, it is gradually gaining ground in India. The growth story of the banking sector for the obvious reasons of a zooming economy, expanding middle class and the vast branch network, is unlikely to be matched by any banking industry across the emerging market economics. However the growth prospects have also led to intense competition in the Indian banking industry. The problem with the bank is that most of them operate on similar business models where products and prices among competitors are close substitutes. One of the biggest challenges that the managers of the bank confront is attracting customers and sustaining growth. Traditional bases for differentiation, such as product features or cost, are becoming less tangible. Therefore a bank’s management is forced to look out for new ways to attract new customers and simultaneously retain the existing ones, besides boosting their bottom line. With the interest income coming under pressure, banks are expanding fee-based income activities such as marketing of insurance policies and mutual funds, wealth management for High Net Worth Individuals (HNWIs) and equity trading. These are indeed proving to be more profitable for banks than basic activities like lending and borrowing. Bancassurance and selling of mutual funds are the most tapped business opportunities by the bankers today. The Indian bancassurance industry has revealed its true potential only after liberalization. With the opening up of the insurance sector and so many players entering the Indian insurance industry, the insurance companies are compelled to come up with innovative products, create more consumer awareness about their products and offer them at a competitive price. The Indian insurance market provides untapped potential of about 30 crore lives with insurable interest outside the insurance cover. Besides life insurance, the increasing levels of income and consequent 1

expansion in assets provide a huge scope for general insurance. To reach such a huge untapped market, insurance companies need a wide and trustworthy network. While the old giants such as Life Insurance Corporation of India and other government owned general insurance companies have a good network, maintaining and managing such network, is definitely a daunting task for the new entrants. Even the old sectors biggies are now looking to supplement their distribution channels in response to the competitive forces prevailing in the Indian insurance market. It is an established fact that insurance is a business of faith and solicitation. In India, banks continue to command the highest trust among all the financial sector players as out of the total pool of financial savings of households, the largest share goes to bank deposits. In addition, a huge network of 69417 bank branches comprising 30,776 rural branches, 15370 semi-urban branches and 23,271 urban and metropolitan branches is virtually impossible to replicate and will be indispensable in penetrating novel segments such as rural markets. As such, bancassurance, as a business proposition, has the potential for generating synergic benefits both for bankers as well as insurers. While it boosts the bank’s bottom lines, it also leads to a significant lowering of distribution costs for insurance, besides opening new horizons for further expansion and growth. Bancassurance addresses the twin objectives of portfolio diversification by retail customers and synergic integration of marketing management of banks and insurance companies. If taken in a right spirit and implemented properly, this can be a win-win situation for all the participants, viz. banks, insurers and the customers.

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Incentives To Banks
Bancassurance means a major gain for the banks. While it is a source of additional income for them, it also helps them in enhancing employee productivity with additional business. Distribution of insurance products through banking channels helps them to add more customers while providing additional services to the existing ones. For a common man, his banker is still the best financial consultant and this trust provides a unique advantage to the banks in distribution of insurance products as well as other investment instruments such as mutual funds or even unit-linked insurance plans as a combination of insurance and mutual fund products. A bank providing a whole range of financial services definitely stands a better chance to attract more customers and increase revenue. Cost reduction as a corollary to the rise in the number of policies sold per employee is an obvious benefit that the banks derive from enhanced customer access fostered by the bancassurance.

Incentives To Insurance Companies
For insurers, the biggest benefit is the huge and trusted banking network without any administrative hassles for maintaining such network. Insurance not being an off-theshelf product requires personal counseling and persuasion. Hence, distribution poses a major challenge for the insurance companies. Further, the vast untapped insurable interests spread all over the country makes the traditional channels of the insurance distribution uneconomical. The increasing competition has made it impossible for the insurers to enjoy the flexibility of incurring heavy distribution expenses and passing them to the customer in the form of high premiums. As such, the far and wide reach of the banking network provides the most obvious and economical distribution alternative. In addition, insurers also get the benefit of customer database like customers’ financial standing, spending habits, investment and purchasing capability, which can be used to customize products and sell accordingly. Since the banks already have an established relationship with their customers, conversion ratio of leads to sales is also likely to be high. Further, service aspect can also be tackled easily.

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Advantages To Customers
Retail saving choice is becoming increasingly complex at the international level and India is no exception. There is a growing need for better instruments and diversified avenues of investment with minimal transaction costs, which are usually associated with diversification The benefits of the convergence of banking and insurance are expected to reach the customers in the form of decreased prices and a sound insurance products. Globally, insurance products are major internments for savings and this likely to be the case in India too as insurance penetration gathers momentum. Bancassurance benefits the customers by providing comprehensive financial advisory services such as banking, personal loans mutual funds etc. So, when banks turn into financial supermalls, customers stand to benefits the most .Enhanced convenience to the customers in paying premiums and getting other facilities at his familiar and friendly place of course an added advantage.

Bancassurance Models
There are various models, (refer box) used independently or in combinations, through which bancassurance operates internationally:

• Strategic Alliance Model: It involves a simple ‘marketing tip’ between a bank and
the insurance company where the banker assists the insurer in the distribution of insurance products for some commission. Except for marketing the products, no other insurance functions are carried out by the bank. • Integrative Model: Under the integrative model, branch bankers themselves directly sell insurance products. Banks may also enter into joint ventures with insurance companies to offer bancassurance products. This requires the bank staff to have a thorough knowledge of all the insurance products. • Specialist Model: In this model, specialized personnel who are generally employees or representatives of the insurance company itself, distribute the products. Bankers utilize their database to identify prospects who are then contacted by the insurance professional. 4

• Full Integration Model: This arrangement entails a full integration of banking and insurance services. The bank sells insurance products under its brand, acts as a provider of financial solutions as per the customer’s needs. The bank controls sales and the insurance providers, including claims settlement. Under such an arrangement, the bank has an additional core activity almost similar to that of an insurance company. • Financial Planning Model: This offers every customer a complete financial planning package that attends to his or her entire financial concerns. This process is considered beneficial to the customer, the bank as well as the insurer. This is generally considered as an extremely useful way to reach a large number of customers.

Conflicts in Bancassurance
Bancassurance, though beneficial to the bankers, insurers and customers, yet, entails certain potential areas of conflict which must be carefully monitored and addressed suitably.

Competing Products
In India, insurance is perceived more as a ‘saving product’ rather than as a ‘risk management product’. This makes an insurer’s products to compete directly with the deposit products of banks. In such situation, bankers may not find it in their interest to hard sell insurance products.

Conflicting Interests
Another potential source of conflict arises in a situation where an insurance company is promoted by an international bank which may also have a non-insurance business interest in India. This may cause strategic withholding of customer information by the domestic banking partner of the bancassurance.

Staff Reluctance
For banks, especially the public sector banks, it is very important to manage any staff unrest due to additional work on account of bancassurance. Lack of knowledge about nitty-gritty of an insurance product could also be another deterrent. 5

home loan and accident insurance can be handled by bank branches. procedures.. Clearly defining and categorizing products is also important. After all for a banker. However.up. while a standard term product or simple products like auto insurance. Functional Incongruities Although banking and insurance are both financial services. it is expected that the convergence would not be very easy. Developing appropriate human resource policies to groom the staff to undertake the addition responsibility is equally important to make the venture successful. yet they are quite different in terms of systems. who will do the branding? Will the insurance company prefer to place persons at the bank 6 .e. a complex unit-linked life insurance product is better sold through brokers or agents. Such difficulties in the convergence of banking and insurance may be resolved by a high degree of functional co-ordination with suitable institutional mechanism and business models.Identity Predicament Developing and promoting brand equity of bancassurance while retaining the unique identity of the bank is also a matter of conflict. o There needs to be clarity on the operational activities of the bancassurance i. it cannot become a substitute of the regular business of the bank. for instance. the potential areas of conflict can be tackled to make the bancassurance successful. Making Bancassurance a Success Given the diverse skills brought together by bankers and insurers to a bancassurance tie. bancassurance is primarily a source of additional income and obviously. Maintaining an arm’s length relation between a bank’s regular and insurance business is another difficult issue. culture and business ethos. The following points need to be considered for successful implementation of bancassurance: o The tie-ups must aim at developing innovative products and services rather than depending upon the traditional methods.

extensive and high-quality training. defined process for introducing insurance products. a high degree of solicitation. or will the bank branch train and put up its own people. effective tracing system for reporting on agents’ time and results of bank referrals. This is the single most important issue that will automatically take care of the rest of the things. their business is bound to stabilize and flourish. A summary of the guidelines are given below: RBI Guidelines The Government of India notification dated August3. defined process for introducing insurance products. o Another point is handling of the customers. o Even though banks are in personal contact with their clients. the Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority (IRDA) respectively. efficient service delivery mechanism. simple yet complete product offerings. The bancassurance being the combination of two sectors comes under the purview of both the regulators. Success of bancassurance also depends to a great extent on customer’s response to the services offered by the bancassurance. specifying ‘Insurance’ as a permissible form of business that could be undertaken by banks under Section 6(1) (o) 7 . Each of the regulators has given out detailed guidelines for banks getting into insurance business. This can be addressed through proper training along with necessary grooming to manage staff anxiety and unrest. simple yet complete needs. With an increase in the customer awareness level. o Making strategies consistent with bank’s vision. their remuneration.branch. i. etc. are the essential requirements for a successful bancassurance activity. If they appreciate the better services offered by the bancassurance companies. The Regulatory Stance in India The Indian banking and insurance sectors are regulated by two different regulators. quality administration. knowledge about targeted customer needs. they are demanding greater convenience in financial services.e. proactive marketing and skills are required to sell the insurance products. etc. 2000.

However. allowed banks to undertake insurance business subject to the prior approval of the RBI. subject to the following condition:  The bank should comply with the IRDA regulations for acting as ‘composite corporate agent’ or making referral arrangement with insurance companies. banks need not obtain prior approval of the RBI for engaging in insurance agency business or referral arrangement without any risk participation. Thereafter.  The bank desirous of entering into referral arrangement. The RBI grants permission to the banks on case-to-case basis keeping in view all relevant factors. Although banks are not allowed to undertake insurance business departmentally. may be permitted to set up a joint venture company for undertaking insurance business with risk participation. yet some of them. 1949. should also enter into an agreement with the insurance company concerned for allowing use of its premises and making use of the existing infrastructure of the bank. subject to safeguards. the bank may sign a longer-term contact with the approval of Government of India in respect of a public sector bank. satisfying specified criteria. besides complying with IRDA regulations.  The bank should not adopt any restrictive practice of forcing its customers to go in only for a particular insurance company in respect of assets financed by the bank. The agreement should be for a period not exceeding three years at the first instance and the bank should have the discretion to renegotiate the terms depending on its satisfaction with the service or replace it by another agreement after the initial period. 8 .of the Banking Regulation Act. including the banks positions with regard to the level of non-performing assets. It also ensures that risks involved in insurance business do not contaminated by any risks which may arise from the insurance business by maintaining an ‘arms length’ relationship between the bank and insurance outfit.

 Risks. more than one bank may be allowed to participate in the equity of insurance joint venture subject to the prescribed eligibility criteria. or any other direction of GOI/IRDA. Eligibility criteria (to be reckoned as per the latest audited balance sheet): • The net worth of the bank should not be less than Rs. Setting up a joint venture company for insurance business with risk participation Banks which satisfy the eligibility criteria are be permitted to set up a joint venture company for undertaking insurance business with risk participation. In cases where a foreign partner contributes 26% of the equity with the approval of IRDA/Foreign Investment Promotion Board (FIPB). housing finance businesses. • The level of non-performing assets should be reasonable. As the participation by a bank’s customer in insurance products is purely on a voluntary basis. On a selective basis. 9 .500 Cr. etc) is not normally allowed to join the insurance company on risk participation basis. all publicity material distributed by the bank in a prominent way. The maximum equity contribution allowed by a bank in the joint venture is normally 50% of the paid up capital of the bancassurance company. pending disinvestment of equity within the prescribed period in compliance with Section 66A of the Insurance Act as amended by the IRDA Act.l999. a subsidiary of a bank (undertaking merchant banking. if any. Further. There should be no ‘linkage’ either direct or indirect between the provisions of banking services offered by the bank to its customers and use of the insurance products. leasing finance. involved in insurance agency/referral arrangement should not get transferred to the business of the bank. for disinvestment of equity in excess of 06% of the paid-up capital. it should be stated so in. mutual hind. securities. • The Capital Adequacy Ratio (CAR) of the bank should not be less than 10%. the RBI may permit a higher equity contribution by a promoter bank initially.

2002. This was causing difficulty in the implementation of bancassurance in the country. if any. This is to ensure that only well educated and professional bank officers carry out the financial advisory process.50 cr. The corporate agents can only receive commission without any profit-sharing arrangement. including cooperative banks and regional rural banks. whichever is lower. only 50 hours of training is required. actuaries and those possessing Certified Associate ship of Indian Institute of Bankers (CAIIB). may become corporate agents only for one insurance company. IRDA Guidelines IRDA prescribes that each bank that sells insurance must have a chief insurance executive to handle all the insurance activities. Such participation is treated as an investment and should be without any contingent liability for the bank. 10 .• The bank should have had net profit for the last three consecutive years: • The track record of the performance of the subsidiaries. only 50 hours of training is required. However. in the insurance company for providing infrastructure and service support. for certified accountants. The corporate agents can only receive commission without any profit-sharing arrangement. Banks which are not eligible as joint venture participants as above. The eligibility criteria for these banks are the same as mentioned earlier. This is to ensure that only well educated and professional bank officers carry out the financial advisory process. of the concerned bank should be satisfactory. Prior to the passage of the Insurance (Amendment) Act. Institute of Bankers (CAIIB). Commercial banks. who will be selling Insurance products on behalf of the corporate agent. all the directors of a company wishing to take up a corporate agency (such as a bank) were technically required to undertake 100 hours of agency training and pass an examination. are required to undergo training of 100 hours. Now. only the designated persons within the corporate agency. are allowed to make investments up to 10% of the net-worth of the bank or Rs.

• The Chief Insurance Executive and the specified persons are to be the whole-time employees of the corporate agent (bank) and certification to sell insurance products.IRDA guidelines for insurers appointing corporate agents prescribe that: • Decision to appoint a corporate agent is to be taken by the corporate office of the insurer. A specially designated officer is to be made responsible for ensuring compliance from the corporate agent. It also provides an avenue to the banks to get a feel of the insurance market which may come handy while entering the insurance sector on a comparatively larger scale through a joint venture. it is good source of revenue without much regulatory hurdles. • The corporate agent should normally be a company whose principal business would be other than the distribution of insurance products. a bank does not share risk in the insurance business and hence. • All the sales support material used by the corporate agent should be approved by the insurer. By becoming a corporate agent. yet banks can sufficiently supplement their income with the commission. 11 . The guidelines have made the corporate agency form of bancassurance very attractive for banks. Though profit-sharing is not permitted. • The corporate agent should not appoint any sub-agent. • The corporate agents do not have authority to underwrite the business or settle any claim.

e.  To know the features of the insurance products and services of ICICI: The project also aims at studying the features of products and services of ICICI. the characteristics of those products.OBJECTIVES OF THE STUDY The main objectives of this project are as follows:  To carry out an intricate study of the bancassurance services provided by ICICI Bank: the project aims at studying the various insurance products and services of ICICI. 12 . the project studies the consumer behavior relating to bancassurance services of ICICI.  To analyze the consumer behavior: finally. i.

In random sampling which items get selected in the sample is just a matter of chance-personal bias of the investigation does not influence the selection. Sample Size This refers to the number of items to be selected from universe to constitute a sample. It is necessary for the researcher to know not only the research methods/ techniques but also the methodology. I have used the method of “Random Sampling”. It may be understood as a science of how research is done scientifically. Under it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. In this project. 13 . reliability and flexibility. Sample size for the ICICI BANK -50 GENERAL CUSTOMERS OF ICICI IN NORTH DELHI Method of Sampling Random Sampling Random sampling refers to that sampling technique in which each and every unit of population has an equal opportunity of being selected in the sample. which fulfills the requirements of efficiency.RESEARCH METHODOLOGY Meaning Research Methodology is a way to systematically solve the research problem. An optimum sample is one.

this first hand information is the primary data. Market Reviews and Reports etc also provide information as secondary data. If you want to get some statistical information about payment of wages of workers of a factory you as an investigator can visit the workers’ colony. and get the information by contacting every worker. There are various methods for collecting Primary Data. Articles. Government Publications. I have also used questionnaire as the main method for collecting data. researcher or trained investigators. Report of Committees and Commissions. The questionnaire is managed by the enumerator. 14 . The most popular and common tool is questionnaire/interview schedule to collect the data. Articles. some of them are: • Direct Personal Interview • Indirect Personal Interview • Information from Correspondents • Mailed Questionnaire • Questionnaires filled by Enumerators Secondary Data Secondary Data is collected through other sources. printed magazines and newspapers help one to collect the required data by reading a piece of news or article in newspapers I collected the data for my project report.Mode of Data Collection Primary Data: Primary Data is original and first hand information.

is very small i.LIMITATIONS OF STUDY The Main Limitations Of The Study Are As Follows: • The most important limitation is that the sample size. • The area of the analysis is also limited because this analysis is based on these questionnaires have been answered only by the people of west Delhi. 50 only. • Sometimes the people do not provide exact information required • All the customers were not ready to corporate to fill the Questionnaire. 15 . which is taken for the study.e.

Our UK subsidiary has established branches in Belgium. and was its wholly-owned subsidiary. The Bank has a network of about 955 branches and 3. venture capital and asset management. 2007. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. the Government of India and representatives of Indian industry.00 billion (US$ 96 billion) at December 31. ICICI Bank’s acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001. Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates. Hong Kong. and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. branches in Unites States. China. ICICI Bank’s equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).687 ATMs in India and presence in 18 countries. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. ICICI Bank is second amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalization.08 billion for the nine months ended December 31. an Indian financial institution. South Africa. Bahrain. 3. Bangladesh. 2007 and profit after tax of Rs. ICICI was formed in 1955 at the initiative of the World Bank. The Bank currently has subsidiaries in the United Kingdom.767. History ICICI Bank was originally promoted in 1994 by ICICI Limited. In the 1 990s. ICICI transformed its business from a 16 . ICICIs shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998. Sri Lanka. life and nonlife insurance. Malaysia and Indonesia. Russia and Canada. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking.ICICI BANK ICICI Bank is India’s second-largest bank with total assets of Rs. Singapore. 30. Thailand.

the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries. 17 . and the move towards universal banking. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities. In October 2001. greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transactionbanking services. we care about all your needs. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry. with ICICI Bank. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations. seamless access to ICICI’s strong corporate relationships built up over five decades. In 1999. ICICI Personal Financial Services Limited and ICICI Capital Services Limited. both directly and through a number of subsidiaries and affiliates like ICICI Bank. higher market share in various business segments. The merger would enhance value for ICICI shareholders through the merged entity’s access to low-cost deposits. by the High Court of Gujarat at Ahmadabad in March 2002.development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002. particularly fee-based services. Consequent to the merger. and access to the vast talent pool of ICICI and its subsidiaries. the ICICI group’s financing and banking operations. and by the High Court of Judicature at Mumbai and the Reserve Bank of India iii April 2002. entry into new business segments. both wholesale and retail. Along with Deposit products and Loan offerings. At ICICI Bank. ICICI Bank assists you to manage your finances by providing various investment options ranging from ICICI Bank Tax Saving Bonds to Equity Investments through Initial Public Offers and Investment in Pure Gold. and would create the optimal legal structure for the ICICI group’s universal banking strategy. have been integrated in a single entity.

With the offering of various insurance products. The uniqueness of bancassuranee is its simplicity & affordability and is one of the best of its kind in the country. And now ICICI BANK has been successful in providing customers a superior product at competitive rates. where the customers have a variety of products to choose from. Bancassurance provided by ICICI are as follows:  ICICI Lombard General Insurance Company  ICICI Prudential Life Insurance Company 18 .ICICI BANK and BANCASSURANCE ICICI BANK has always believed in giving high quality financial services to its customers. The bank is thus now offering structured insurance inline with the customer requirements. the Bank is moving closer towards its goal of emerging as a financial supermarket.

Lombard Canada Ltd. reinsurance. is one of Canada’s oldest property and casualty insurers.ICICI Lombard General Insurance Company ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI Bank (Limited and the Canada based $ 26 billion Fairfax Financial Holdings Limited. diversified books of business and strong capital positions. ICICI LOMBARD Our Bancassurance philosophy The Company has set up a dedicated SBU to cater to bancassurance business managed by dedicated teams for each bank partner across all locations to ensure highest levels of service to the channel and their customers and to provide complete support and value addition to the bank partners. a group company of Fairfax Financial Holdings Limited. ICICI Bank is India’s second largest bank.M. 19 . insurance claims management and investment management. Fairfax Fairfax Financial Holding Limited is a financial services holding company whose corporate objective is to achieve a high rate of return on invested capital and build longterm shareholder value. ICICI Lombard General Insurance Company received regulatory approvals to commence general insurance business in August 2001. reinsurance. It has received an A. Lombard Canada Ltd. has achieved a reputation for providing solid underwriting performance.rating from A. insurance claims management and investment management. Best Company and claims paying ability received an A+ rating from Duff& Phelps Credit Rating Co. general insurance. while Fairfax Financial Holdings is a diversified financial corporate engaged in general insurance. It provides services in the area of financial services. Fairfax Group is also one of the shareholders of ICICI Bank Ltd.

it has more than 3.We are the only company with a dedicated bancassurance distribution channel. RURAL 1. Each branch has access to Centurion Banks technologies to offer unparallel services to customers. PERSONAL A. BUSINESS 3. It offers a wide spectrum of banking products and financial services to corporate and retail customers through a variety of delivery channels.800 ATMs. NRI 4. ABN Amro: ABN Amro Bank (India) has 81 year long experience in the Indian business scenario. HEALTH INSURANCE B. ICICI Bank: ICICI Bank has a network of about 470 branches and extension counters and over 1. Our key bancassurance partners include ICICI Bank. As an international bank. We completely respect the partner’s brand and business model and believe that the customer is “owned” by the partner.500 branches in over 70 nations across the globe. MOTOR INSURANCE 20 . Centurion Bank: Centurion Bank has an extensive network of branches across India. HOME INSURANCE C. direct sales teams and marketing offices across India. It ranks among the top 10 banks in the world in size and strength. ABN Amro Bank and Centurion Bank. The Bank will distribute personal and business covers of ICICI Lombard through its branches. RANGE OF PRODUCTS OFFERED BY ICICI LOMBARD 1. PERSONAL 2.

Bypass Surgery. Health Insurance (popularly known as Mediclaim) offers protection in case of unexpected medical emergencies. Heart Attack. 5099 u/s 80D. Stroke. The first of its kind. cost of medicines and drugs) and enables optimum tax savings of up to Rs. Major Organ Transplant. Paralysis. permanent total disablement (PTD) and loss due to terrorism. the health insurance policy takes care of the hospitalization.A. c) Family Floater Plan A single policy that secures the hospitalization expenses of your entire family d) Personal Accident Insurance A Policy that covers personal accident. In case of a sudden illness or accident. Kidney Failure. Each plan offers something unique (in addition to the usual mediclaim policies) to suit your specific needs: Health Plans a) Critical Care Lump-sum benefit on diagnosis of Critical Illness/Major Medical Illnesses and Procedures. e) Critical Care Insurance Critical Care protects you or your spouse against loss of income on diagnosis of any of the 9 major medical illnesses and procedures. it offers a lump sum benefit on diagnosis of Cancer. Heart Valve Replacement Surgery or Multiple 21 . HEALTH INSURANCE ICICI Lombard presents a completely new look to the Mediclaim concept. We offer a range of innovative policies to choose from. Personal Accident and Permanent Total Disablement (PTD) b) Health Advantage Plus Insurance A unique policy that covers hospitalization and Outpatient Department Expenses (including Dental treatment. medical and other costs incurred.

Burglary cover (only for contents): The contents of your home are also covered against loss due to burglary or an attempted burglary. It also covers loss of jewellery. silver articles and precious stones kept under lock and key. injuries and damages. You can choose to buy insurance for only the building (structure) of your home. up to 25% of the total content sum insured or Rs. whichever is lower. the nominee (mentioned in the policy) is compensated with the Sum Insured (opted at the time of policy issuance). Our Home Insurance Plan ensures you peace of mind by protecting the structure and the contents of your home. or only the contents (belongings) or both. B. Critical Care Insurance also provides cover against accidental death and permanent total disablement (PTD). The policy covers the losses to the structure and contents of your home due to any natural and manmade calamities. f) Accidental Death Cover In case of death of the insured due to an accident within the policy period. HOME INSURANCE Home Insurance Introduction — It is imperative that you secure your home from natural and man-made catastrophes. third party liability.Sclerosis. C. damage. 22 . Two Wheeler Insurance A composite policy that protects you against unfortunate accidents. 1 Lac. MOTOR INSURANCE Car Insurance A comprehensive policy that not only covers you against third party but also against accidents. injury and much more.

A specialized cover for Goods-carrying Vehicles — be it Public or Private Carriers. LIABILITY INSURANCE F. FIRE INSURANCE Every business has a specific set of requirements. FIRE INSURANCE C. B.COMMERCIAL VEHICLES B. INDUSTRIAL INSURANCE E. Our range of business products is especially designed to meet your business needs across the commercial spectrum. It’s all about managing risk effectively.2. 23 . COMMERCIAL VEHICLES INSURANCE ICICI Lombard brings you Commercial Vehicle Insurance offering the most crucial cover of Third Party Liability (TPL). ICICI Lombard Commercial Vehicle insurance offers Third Party only cover for Goods-carrying Commercial vehicles. MARINE INSURANCE D. OTHERS A. BUSINESS Business Products The key to successful business is proper risk management. We offer products that match your personal and business needs and provide you a perfect protection cover A. This cover is applicable to Public and Private Carriers including Motorized Three Wheelers and Motorized Pedal Cycles. Our comprehensive commercial product line is aimed at businesses of all kinds and sizes. It is pivotal to get adequate insurance cover for your business to mitigate risk. You can now rest assured that your vehicle is covered and your business stays protected against liability due to accidental death or injury to third parties or passenger(s).

Know about our products • Fire and Special Perils Policy (Material Damage) • Consequential Loss (Fire) Insurance Policy • Industrial All Risk C. INDUSTRIAL INSURANCE Every business has a specific set of requirements. Know more about our products • Marine Import Transit Insurance Policy • Marine Export Transit Insurance Policy • Marine Inland Transit Insurance Policy • Marine Hull D. We offer products that match your business needs and provide you a perfect protection cover. LIABILITY INSURANCE Irrespective of the size of business. It is pivotal to get adequate insurance cover for your business to mitigate risk. it is pivotal to consider liability insurance. Our range of business products is especially designed to meet your business needs across the commercial spectrum. It is 24 . Know more about our products • Boiler and Pressure Plant Insurance Policy • Electronic Equipment Insurance Policy • Machinery Breakdown Insurance Policy • Erection All Risks • Machinery Loss of Profits Insurance Policy • Electronic Equipment Insurance Policy • Contractors All Risk Policy • Contractors Plant & Machinery E. MARINE INSURANCE ICICI Lombard offers comprehensive commercial product line aimed at businesses of all kinds and sizes.

NRI SERVICES A. Our range of business products is especially designed to meet your business needs across the commercial spectrum.public liability (third party injury or property damage) from industrial and non-industrial operations. ICICI Lombard offers wide array of liability products to suit your business needs. It is pivotal to get adequate insurance cover for your business to mitigate risk.prudent to cover your business against all kinds of liabilities -. HEALTH INSURANCE B. PARENTS OVERSEAS TRAVEL C. D&O liability and E&O liability. Know more about our product • Public Liability Insurance (Industrial Risks) Policy Public Liability Insurance (Non-Industrial Risks) Policy Product Liability Public Liability Act Only Workmen’s Compensation policy Director & Officer’s Liability Insurance • • • • • F. CAR INSURANCE E. 3. professional indemnity. HOME INSURANCE D. TWO-WHEELER INSURANCE 25 . Others Every business has a specific set of requirements. product liability.

RURAL At ICICI Lombard. Products we offer Health Insurance We provide protection to the health of the rural folk through three plans Family Health - Insurance. Tractor Insurance Tractors are one of the most precious assets to the rural folks. Our comprehensive package policy covers not just own damage but also third party liability and personal accident. Weather Insurance Weather Insurance is an insurance cover against losses incurred due to uncertainties in climatic conditions. 26 . Shop Insurance Shop Insurance is a comprehensive policy that covers both the structure and the contents of a shop and protects it against any financial loss in case of an unfortunate incident. It can be used to hedge any vulnerability of assets or any other damage incurred due to erratic and irregular weather. Poorna Suraksha Bima and Sampoorna Arogya Bima. Through our network channels. investing in rural markets is seen as a keen social responsibility. Through a multiple channel system we not only provide agricultural protection but also health. Home Insurance Our comprehensive policy protects much more than just the home. The protection provided to the rural class is specified and customized according to their needs.4. we ensure that the houses in the rural sector are insured against natural and other perils. motor and other covers.

having commenced operations in 74 cities and towns in India. as well as over 150 corporate agents and brokers. a policy for the socially and economically underprivileged sections of society. 2005.com. The company has seven bancassurance tie-ups.iciciprulife. ICICI Prudential has recruited and trained about 56. To know more about the company. 27 . South Indian Bank. please visit www. it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers.000 policies. 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). Federal Bank. Lord Krishna Bank and some cooperative banks. a leading international financial services group headquartered in the United Kingdom. In the financial year ended March 31. It has also tied up with NGOs. and Prudential plc. MFIs and corporate for the distribution of rural policies and organizations like Dhan for distribution of Salaam Zindagi.ICICI Prudential Life Insurance Company ABOUT US ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. Further. the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13. 1 private life insurer in the country. ICICI Prudential’s equity base stands at Rs. ICICI Prudential has retained its position as the No. having agreements with ICICI Bank. a premier financial powerhouse. Bank of India.000 insurance advisors to interface with and advise customers. with a wide range of flexible products that meet the needs of the Indian customer at every step in life. 925 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the past four years.780 crore and wrote nearly 615. DISTRIBUTION ICICI Prudential has one of the largest distribution networks amongst private life insurers in India.

contributing to approximately one third of company’s total business.FUNCTIONS ICICI Prudential offers exciting career opportunities for people from a variety of streams. Leave Encashment. Group The Group Business of ICICI Prudential has been in existence for over 2 years. Today. With focus on sales & people development. Mortgage Reducing Term Assurance (MRTA) & Informal Group Term covers. tied agency has emerged as a robust. 28 . 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. predictable and sustainable business model. Read on to find out more about how each of the functions contributes to our growing business. we are the Number 1 player among private life insurance companies in Group Business excluding Mortgage Reducing Term Assurance (MRTA) with a market share of 26 % (FY 2004-2005). Sales Distribution Tied Agency Tied Agency is the largest distribution channel of ICICI Prudential. Superannuation Term Insurance. Employee Deposit Linked Insurance (EDLI). Within a short span of two years. B & A has emerged as a vital component of the company’s sales and distribution strategy. We offer the entire gamut of products including Gratuity. adaptation and experimenting with new ideas are the hallmarks of this channel. Flexibility. 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. Bancassurance and Alliances ICICI Prudential was a pioneer in offering life insurance solutions through banks and alliances. and with nearly a large number of partners.

Outbound Call Centre. the branches and the underwriters. This team works as an in house R&D Solution Group. Units such as the 9 to 9 contact centre. IT Architecture & Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. It is segmented into 4 groups to enable highest levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in designing better product offerings to end-users. channel support. Marketing The Marketing function at ICICI Pru covers an array of activities . software. To streamline the operations. the Solutions Group. The 29 .brand and media management.Customer Service & Operations The Operations department oils the work processes between the customer and the company to ensure consistent and quality service to the customer. and manages work processes.Web that provides real-time information to customers and is responsible for customer relationship management. exploring new technological initiatives and also caters to information needs of corporate functions in the organization. the Operations department interfaces between the clients and the agents. direct marketing and corporate communications. network services to the whole organization. The Vision at Customer Service is to deliver ‘World Class Service at every opportunity. Customer Care and Query Resolution Unit are all committed to providing effective solutions to over lakhs of customers across the country. This group runs the Digital Nervous System of the Enterprise at the highest levels of efficiency and provide robust. rr Infrastructure group is responsible for providing hardware. IT The Information Technology function at ICICI Prudential is committed to enable business through the use of technology. scalable and highly available platform for deployment of business application.

This includes driving the budgeting process. Corporate Planning and MIS provide feedback on business strategies. The Accounts function includes preparation and maintenance of financial records. Internal audit provides assurance to the management over the organizations control framework and includes process risk management. telemarketing and innovative direct mailers. This includes reviewing compliance requirements and supporting the ethical framework of ICICI Prudential life. HR The people strategy of ICICI Prudential is “To build a committed team with a culture of innovation. consumer research.Brand and Communications team is in charge of advertising. Compliance ensures that every action is within the regulatory framework. learning and growth. Finance Finance function in ICICI Prudential is committed to create an infrastructure that is aligned to shareholder expectations. The Human Resource Function at ICICI Prudential drives the people strategy of the business. 30 . With its initial focus on operational excellence to deliver benefits and services to staff members. that helps develop and nurture ICICI Prudential’s corporate identity while effectively communicating its varied product offerings to the customer. providing strategic inputs for decision-making and management reporting and analysis. Channel marketing provides support to the sales force by streamlining the design and development of collaterals and sales tools across distribution channels. The team achieves this through target database acquisition and communicating customized product information through c-mailers. Finance basically comprises of four functions. funds management. The Direct marketing team was set up to generate high quality leads for profitable business. information security assessment and business continuity assessment. media planning & buying and Public Relations. HR is now committed to building capability through state of the art processes. and expense processing and treasury operations.

Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire.000 plus strong team is given the opportunity to learn and grow. 4.The ICICI Prudential Edge The ICICI Prudential edge comes from our commitment to our customers. Entrusted with helping our customers meet their long-term goals. Having the right products is the first step. and thereby ensure a smooth and hassle-free claims process. at every step in life. Here’s a peek into what makes us leaders. 3. we ensure equitable costing of risks. so that they can deliver on our promise to cover you. With clear guidelines in place. To this end. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child’s education. 1. Last but definitely not the least. 2. the sales process or servicing. 5. Our products have been developed after a clear and thorough understanding of customers’ needs. in all that we do . corporate agents and brokers to distribute our products. we adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term. but it’s equally important to ensure that our customers can access them easily and quickly. our 20. 31 . We believe this keeps them engaged and enthusiastic. every day in a multitude of ways. and also partners with leading banks. distribution. ICICI Prudential has an advisor base across the length and breadth of the country. Robust risk management and underwriting practices form the core of our business. or Health insurance that arms you with the funds you might need to recover from a dreaded disease.be it product development.

Under the education insurance plans platform. RETIREMENT PLANS 3. 32 . HEALTH PLANS 1. LIFE INSURANCE 2. Protection Plans A. A. Education Insurance Plans ICICI Prudential offers a wide portfolio of education insurance plans that are designed to provide peace of mind to you. as a parent. graduation and post-graduation . Please click on the product name to know more about the plans.Class X. ICICI Prudential plans can be categorized into the following three types: . ICICI Prudential brings the following products to you.to fund crucial commitments for the child’s future. Premium Guarantee plans D. Education Insurance Plans B. Importantly. Class XII. LIFE INSURANCE PLANS On the basis of which life stage you are in and the corresponding insurance needs. the child’s education continues unhampered. These plans ensure that money is made available at the crucial junctures in a child’s education . education insurance plans ensure that in the unfortunate event of the death of a parent.RANGE OF PRODUCTS OFFERED BY ICICI PRUDENTIAL 1. that your child’s education will be secure. Wealth Creation Plans C.

ICICI Prudential brings the following products to you: Plan Name Life Time Gold Life Link Super Premier Life Gold Life Time Plus Plan Type Unit Linked Unit Linked Unit Linked Unit Linked 33 — giving them an unmatched . Wealth creation plans also offer the customer more liquidity options as compared to traditional plans. As such. The most important benefit of ULIPs is the flexibility they give the customer in choosing the premium amount and also choosing the underlying fund in which this money is to be invested. Under the wealth creation platform. ULIPs are ideal for customers who want the protection of a life cover to be allied to the returns of market linked instrument combination of benefits. Wealth Creation Plans Wealth Creation Plans give the customer the dual benefit of protection along with the potentially higher returns of market-linked instruments.Plan Name Smart Kid New Unit-linked Regular Premium Smart Kid New Unit-linked Single Premium Smart Kid Regular Premium Plan Type Unit Linked Unit Linked Traditional B.

safeguard one’s family from the financial implications of unfortunate circumstances than one cannot foresee.Life Stage Unit Linked C. Premium Guarantee plans are the - ideal insurance-cum-investment option for customers who want to enjoy the potentially higher returns of a market linked instrument. ICICI Prudential brings to you the following products: Plan Name LifeGuard Save’n’Protect CashBak Home Assure Plan Type Traditional Traditional Traditional Traditional 34 Plan Type Unit Linked Unit Linked . Under the Protection Plans platform. Under the Premium Guarantee Plans platform. Protection Plans The sole objective of these plans. ICICI Prudential brings to you the following products: Plan Name Invest Shield Life New Invest Shield CashBak D. as their name indicates. but without taking any market risk. Premium Guarantee Plans The latest addition to the life insurance product portfolio of ICICI Prudential is the Premium Guarantee plan InvestShield Life New. is to serve the protection needs of the customer and by doing so.

Please click on the plans to know more about them and identify which plan is just right for you: Plan Name LifeStage Pension PreinierLife Pension LifeTime Super Pension LifeLink Super Pension Forever Life Immediate Annuity Plan Type Unit Linked Unit Linked Unit Linked Unit Linked Traditional Traditional 3. ICICI Prudential presents a wide array of products.2. These products have been designed to take into account the diverse set of needs that characterize individual customers. ICICI Prudential offers plans under the following major need categories: Hospitalization Plans • Hospital Care Critical Illness Plans • Crisis Cover • Health Assure Plus 35 . Retirement Solutions To cater to the needs of a customer looking for retirement planning. Health Product Suite Health Product Suite: Under Health Product Suite.

it is gradually gaining ground in India. is unlikely to 36 . with the potential to redefine the ways in which insurance products are sold. has developed into tremendous success story in Europe.Cancer Products • Cancer Care • Cancer Care Plus Diabetes Products • Diabetes Care • Diabetes Care Plus • Diabetes Assure Bancassurance symbolizes the convergence of banking and insurance. However. expanding middle class and the vast branch network. The bancassurance. The growth story of the banking sector for the obvious reasons of a zooming economy. It involves distribution of insurance products through a bank’s branch network.

One of the biggest challenges that the managers of the bank confront is attracting customers and sustaining growth. banks are expanding fee-based income activities such as marketing of insurance policies and mutual funds. besides boosting their bottom line. Bancassurance and selling of mutual funds are the most tapped business opportunities by the bankers today. The Indian insurance market provides untapped potential of about 30 crore lives with insurable interest outside the insurance cover. It is an established fact that insurance is a business of faith and solicitation. banks continue to command the highest trust 37 . These are indeed proving to be more profitable for banks than basic activities like lending and borrowing. create more consumer awareness about their products and offer them at a competitive price. Even the old sectors biggies are now looking to supplement their distribution channels in response to the competitive forces prevailing in the Indian insurance market.be matched by any banking industry across the emerging market economics. are becoming less tangible. The problem with the bank is that most of them operate on similar business models where products and prices among competitors are close substitutes. the insurance companies are compelled to come up with innovative products. Besides life insurance. To reach such a huge untapped market. Traditional bases for differentiation. maintaining and managing such network. In India. such as product features or cost. Therefore a bank’s management is forced to look out for new ways to attract new customers and simultaneously retain the existing ones. The Indian bancassurance industry has revealed its true potential only after liberalization. With the opening up of the insurance sector and so many players entering the Indian insurance industry. the increasing levels of income and consequent expansion in assets provide a huge scope for general insurance. wealth management for High Net Worth Individuals (HNWIs) and equity trading. While the old giants such as Life Insurance Corporation of India and other government owned general insurance companies have a good network. However the growth prospects have also led to intense competition in the Indian banking industry. With the interest income coming under pressure. is definitely a daunting task for the new entrants. insurance companies need a wide and trustworthy network.

Bancassurance addresses the twin objectives of portfolio diversification by retail customers and synergic integration of marketing management of banks and insurance companies. As such. While it boosts the bank’s bottom lines. If taken in a right spirit and implemented properly. In addition. It also shows what the customers of ICICI Bank feel about the services provided by their bank. it also leads to a significant lowering of distribution costs for insurance. besides opening new horizons for further expansion and growth. this can be a win-win situation for all the participants. This is the analyses & interpretation of the Questionnaire prepared by me. insurers and the customers. the largest share goes to bank deposits. banks. bancassurance. 15370 semi-urban branches and 23. as a business proposition. a huge network of 69417 bank branches comprising 30.271 urban and metropolitan branches is virtually impossible to replicate and will be indispensable in penetrating novel segments such as rural markets.776 rural branches. has the potential for generating synergic benefits both for bankers as well as insurers. 38 .among all the financial sector players as out of the total pool of financial savings of households. This represents the preferences of customers of ICICI Bank. viz.

000 to 5.000.000 + percenta e g Analysis: 38% of customer availing services from ICICI Bank are between the income level of 2.00.50.00.000+ 2.00.000 Above 5.000 and 24% are from income level between 1. Income Level of Customers Availing Services of ICICI Bank NUMBER OF RESPONDENTS Less Than 1.000 2.00. 39 .00. 50. 50.TABLE 1.000-5.and so on. 00.000 to 2.000 16% 1.000 + 5.50.00. 00.000 12 19 11 24% 38% 22% PERCENTAGE 8 40% 30% 20% 10% 0% -1.00.000 1.

TABLE 2. 40 . For how long Customers are been with ICICI Bank NUMBER OF RESPONDENTS Less Than 1 Year 1 — 2 Years 3 — 5 Years above 5 years 24 10 12 4 PERCENTAGE 48% 20% 24% 8% 50% 40% 30% 20% 10% 0% less than 1year 1-2 years 3-5 years above 5years percentage Analysis: 48% customers are availing services from the bank for less than 1year.and 8% are with the bank for above 5 years.

41 .Product of ICICI Bank preferred by customers NUMBER OF RESPONDENTS Personal Banking NRI Banking Corporate Banking Bancassurance Others 28 4 10 6 2 PERCENTAGE 56% 8% 20% 12% 4% 60% 50% 40% 30% 20% 10% 0% Pers l ona Corpora te O ther percenta e g Analysis: most preferred service of ICICI bank is personal banking segment.56% customer are happy with this service.TABLE 3.

42 . According to customers who provide better Insurance Services NUMBER OF RESPONDENTS Banks Insurance 30 20 PERCENTAGE 60% 40% 1 0% 2 1 0% 0 8% 0 6% 0 4% 0 2% 0 0 % B ks an In ran su ce Analysis: Respondent prefers bancassurance services provided by the ICICI bank rather than the insurance companies.TABLE 4.

43 .Terms and Conditions were properly communicated to customers NUMBER OF RESPONDENTS Yes No 40 10 PERCENTAGE 80% 20% Yes N o Analysis: 80% customers are agreed with the point that they are being provided proper information about the rules and regulation of the bank.TABLE 5.

TABLE 6. Bank employees are able to communicate the insurance policies in proper manner NUMBER OF RESPONDENTS Yes No 15 35 PERCENTAGE 30% 70% Y es No Analysis: 70% of the respondents are not satisfied with the way employees communicate the details about the insurance policy. 44 . According to customers of ICICI Bank.

45 .TABLE 7. Factors affecting selection of Insurance Products NUMBER OF RESPONDENTS Risk Coverage Premium Amount Maturity Value Surrender Value 12 12 16 10 PERCENTAGE 24% 24% 32% 20% 35% 30% 25% 20% 15% 10% 5% 0% Risk P ium Maturity S rem urrender coverag Am e ount V alue V alue P ercentag e Analysis: 32% respondents lay stress on the maturity value while selecting insurance policy while 24% respondents lay stress on risk coverage and premium amount.

According to customers which is the better Insurance product category provided by ICICI Prudential NUMBER OF RESPONDENTS Life Insurance Plans Retirement Plans Health Plans 22 11 18 PERCENTAGE 44% 22% 36% 50% 40% 30% 20% 10% 0% Life Ins nc R ura e etirem P ns ent la Pla ns H lth P ns ea la P enta e erc g Analysis: According to 44% respondents life insurance plans segment are the best product provided by ICICI among other insurance product. 46 .TABLE 8.

Customers have faced any kind of problem in meeting the Claims NUMBER OF RESPONDENTS Yes No 30 20 PERCENTAGE 60% 40% Y es No Analysis: 60% respondents have faced problems while settlement of claims while 40% hasn’t faced any such problems. 47 .TABLE 9.

TABLE 10. Customers point of view when asked that.e. i. Banks should continue providing the Insurance Services. are you in favor of Bancassurance NUMBER OF RESPONDENTS Yes No 30 20 PERCENTAGE 60% 40% 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % Y es No P ercen e tag 48 .

• The main feature of the bancassurance services of ICICI is that the terms and conditions of the product are properly communicated to the consumers.” • 80% of people have chosen ICICI’s products due to the trust upon the bank. basically. CONCLUSIONS • ICICI is catering. ICICI has a lot of transparency in its operations. 49 . On the whole ICICI has a diversified product range covering all strata of the market. it can be concluded that the various bancassurance services of ICICI has been successful.Analysis: 60% respondents are in favor of bancassuance services provided by the ICICI bank. Successful history of the bank captures the mind of consumers influencing the choice of their products. The large range of customers and a wide range of branches extended all over India are the main factors that help in tapping a large potential of the market. to all income groups though it is more towards the middle class customers. • In the last 2-3 years ICICI has made a significant place in the bancassurance sector by joining hands with LOMBARD & PRUDENTIAL. But. It has been rated as “one of the fastest growing bank in the private sectors. which impresses most of the customers and thus helps to retain the customers.

Most consumers think that ICICI has fulfilled the promises made by the bank at the start of the policy and most go with the notion that they would continue their trust with ICICI • • • 60% respondents are in favor of bancassuance services provided by the ICICI bank.• 58% of the sample says that they have faith in the company but 42% say the opposite which shows that though the bank has grown a lot but it has not been able 2 fully satisfy its customers. ICICI can tap this potential by providing more benefits the bank can attract a number of customers to reap the benefits of its bancassurance services. 50 . ICICI hasn’t been successful in cross-selling its products because a large number of the sample is using only one category of product of ICICI. • 60% respondents have faced problems while settlements of claims while 40% haven’t faced any such problems. • 32% respondents lay stress on the maturity value while selecting insurance policy while 24% respondents lay stress on risk coverage and premium amount • 70% of the respondents are not satisfied with the way bank employees communicate the details about the insurance policy. Each customer has the potential for two products because in addition to the product of ICICI they are using product of some other bank.

51 .

e. ICICI should thus continue operating with the same transparency. o ICICI hasn’t been able to attract new customers in the market. The bank should concentrate more on creating new customers & retaining them for long time o As personal banking is one of the most preferable product by the customers i. o 60% respondents have faced problems with settlement of claims. it should also concentrate on making its other services better so that customers will avail those services also. Hence. so ICICI should make the claim procedure simple and quick. o ICICI has been largely successful in maintaining customers but the customers in the “more than 3 years” category constitutes very small percentage of the sample. o 70% of the respondents are not satisfied with the way bank employees communicate the details about the insurance policy.RECOMMENDATIONS o ICICI has retained a lot of customers due to the transparency it has in its operations. Probably. As well as it has not been able to sell its existing customers to a large extent. ICICI should follow the strategy of customer satisfaction by designing those products which are required by the customers. this is why ICICI has a relatively good market share amongst all public banks. ICICI should concentrate on cross-selling of its products. so bank should properly train their employees about the insurance policies. 52 . 56%. o Lastly.

Which product of ICICI Bank have you used? Personal Banking Bancassurance Others NRI Banking Corporate Banking 4.50.00.OUESTIONNAIRE 1.000 2.00. According to you who provide better Insurance Services? Banks Insurance Companies 5. Were the Terms and Conditions properly communicated to you? Yes No 53 .000 1.000 <5. How long have you been with ICICI Bank? > 1 Year 3-5Year 1-3 Years <5Years 3. What is your Income Level? >1.000 2.00.

e. then do you that the Bank employee is able to communicate the Insurance Policies in a proper manner? Yes No 7. i. If you are a customer of ICICI Bank. Which according to you is the better Insurance product category provided by ICICI Prudential? Life Insurance Plans Retirement Plans Health Plans 9. Do you face any kind of problem in meeting the Claims? Yes No 10. What are the factors that affect your selection of Insurance Products? Risk Coverage Maturity Value Premium Amount Surrender Value 8.6. Are you in favor of Bancassurance? Yes No 54 . Do you have think Banks should continue in providing the Insurance Services.

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TaTa McGraw Hill.com 56 . New Delhi.C.com • www.google.  Beri. Marketing Reasaerch.icicilombard.17th Edition.com • www. New Delhi. Law and Practice” Sultan Chand & Sons.BIBLIOGRAPHY BOOKS:  Sundharam & Varshney “Banking Theory.iciciprulife. G. 2006. (2003). WEBSITES: • www.wikipedia.com • www.