Summer Training for the partial fulfillment of MBA Program.

Completed training under: Ms.Divya Singh Manager - Priority Circle ICICI Prudential Head Office Jaipur (Raj)
2

Report Submitted to: Mrs. Meera Mathur Placement Coordinator FMS, MLSU Udaipur (Raj)

Report submitted by: -Ramesh Kumar Meena Roll No. 36 S/o Mr. R.S Meena

Awards & Recognitions

Prudence Customer Centricity Award 2004 & 2005
Prudential Corporation Asia

Silver Effie for Effectiveness of the ‘Retire from Work not life’ advertising campaign
Effies 2003

Superbrand 2003-04

3 Report submitted by: -Ramesh Kumar Meena Roll No. 36 S/o Mr. R.S Meena

R.India's Most Customer Responsive Insurance Company Avaya GlobalConnect . 36 S/o Mr.Economic Times Customer Organisation with Innovative HR Practices Indira Group of Institutes Asia-Pacific H R Congress Awards for HR Excellence 4 Report submitted by: -Ramesh Kumar Meena Roll No.S Meena Organisation with Innovative HR Practices .

S Meena 4 5 6 8 10 12 15 20 24 34 39 46 52 54 57 58 64 . Executive Summary Acknowledgement Insurance Introduction Common types of Insurance The global insurance industry The determinants of insurance needs Insurance Research and Development Authority Facts of insurance industry Life insurance market in India About Income Tax About ICICI Prudential Products and Services snapshot ICICI Prudential Priority Circle ICICI control structure Portfolio Management Nature of Job as a Trainee Annexure 5 Report submitted by: -Ramesh Kumar Meena Roll No. R. 36 S/o Mr.TABLE OF CONTENTS Page No.

36 S/o Mr. After coming of the IRDA that is Insurance Regulatory Development Authority.S Meena is based on trust and relationship building. This was the scenario before a regulatory authority was introduced. R. a leading international financial services group headquarted at United Kingdom. Earlier there was only Life Insurance Corporation of India (LIC) who was taking the burden of insuring people from certain and uncertain risk. and in a span of 4 years it has grown in a tremendous pace and is still growing. .. There are number of products to satisfy customers needs and gives products according to their needs. many private players attacked the market. which deals with high net worth individuals. ICICI is one of them. a premier financial powerhouse and Prudential plc. There were 14 new players introduced which reported to IRDA including LIC. The managers here appoint financial advisors after a tough selection process.Bibliography 65 EXECUTIVE SUMMARY Insurance is a system to alleviate financial losses by transferring risk of loss from one entity to another. This business 6 Report submitted by: -Ramesh Kumar Meena Roll No.1 private insurance player in the market and has huge potentials to grow further. ICICI started its journey in 2001. These advisors are then trained and after getting an IRDA license start soliciting insurance. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. ICICI priority circle is an executive branch of ICICI Prudential. Today it is no.

R. for his valuable guidance. My last but not the least thanks are due to my parents for their constant support and strongest motivation. which has been a source of inspiration for me at every step of my life RameshKumarMeena 7 Report submitted by: -Ramesh Kumar Meena Roll No. My first and foremost note of thanks is due to our institute director for creating such a congenial environment to be able to complete the project territories effectively.ACKNOWLEDGEMENT Many of the ideas that lead us to design and develop the “Recruitment and Training to Financial advisor Insurance Sale” resulted from a distillation of the experience and opinions of many people. constant supervision and motivation during the project period. It would be prudent to commence this report with a sincere tribute to all those who have played an indispensable role in the accomplishment of this work by providing whenever and wherever their able guidance was required. Manager ICICI Prudential Priority Circle. 36 S/o Mr. I would sincerely like to thank my project guide ‘Ms.Divya Singh’.S Meena .

The agreement between the two by which the risk is transferred is called the "policy": this is a legal contract that sets out exactly the terms and conditions of the coverage. called premiums.000. The entity that is transferring the risk — which may be an individual or association of any type. The essence of the contract of insurance.INSURANCE INTRODUCTION MEANING OF INSURANCE Insurance or assurance is device for indemnifying or guaranteeing an individual against loss. and profit. R. 36 S/o Mr. Payment for an individual loss. divided among many. called a policy. The entity accepting the risk is called the "insurer". they acquire insurance coverage in the form of a homeowner's policy. let us assume that a couple buys a home costing Rs. For example. Knowing that the loss of their home would bring them financial ruin. does not fall heavily upon the actual loser. The fee paid by the insured to the insurer for assuming the risk is called the "premium".S Meena .100. This is usually determined by the insurer to fund estimated future claims paid. Reimbursement is made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts. administrative costs. That policy will pay them the cost of replacing or repairing their home in the event of a 8 Report submitted by: -Ramesh Kumar Meena Roll No. including a government or government agency — is called the "insured".

and rate making. the decisions regarding necessary prices for such risks.catastrophe. The underwriter is responsible for guarding against adverse selection. In preventing adverse selection. R.S Meena . Risk of loss has been transferred from the homeowners to the insurance company. which surround the individual or property. By investing premium payments in a wide range of revenue-producing projects. 36 S/o Mr. the determination of which risks the insurer can take on. and they rank among the nation's largest institutional investors. 9 Report submitted by: -Ramesh Kumar Meena Roll No. and moral hazards in relation to applicants. The insurance company charges them a premium of Rs.1. jeopardizing the well being of the insured.000 a year. insurance companies have become major suppliers of capital. psychological. The amount of the premium is determined by the operation of the law of averages as calculated by actuaries. The major operations of an insurance company are underwriting. the underwriter must consider physical. wherein there is excessive coverage of high-risk candidates in proportion to the coverage of low risk candidates. Physical hazards include those dangers.

There are two type of basic policies. 36 S/o Mr. has developed into a variety of policy plans. which pay the insured a yearly income after a certain age.  In “term life.. life insurance companies began to allow early payouts to terminally ill patients.” the fixed premiums are invested in a portfolio (with earning reinvested).” coverage is for a specified time period (e. Today what are most offered to market by various companies are  In a “whole life” policy.g. fixed premiums are paid throughout the insured's lifetime. such plans do not build up value during the term. R. originally conceived to protect a man's family when his death left them without income.S Meena .  Under “universal life. In the 1990s. have also been developed. augmented by compound interest. the benefit is paid even if the insured had terminated the policy. 10 Report submitted by: -Ramesh Kumar Meena Roll No. 5–10 years). Annuity policies. this accumulated amount. and the death benefit is based on the performance of the investment.” the insured can vary the amount and timing of the premiums.  With “variable life. the funds compound to create the death benefit. Term Policy & Endowment Policy.COMMON TYPES OF INSURANCE Life insurance. is paid to a beneficiary in a lump sum upon the insured's death.

R. however. Title insurance is aimed at protecting purchasers of real estate from loss by reason of defective title. carry only partial insurance.Fire insurance usually includes damage from lightning. tornado. except in special cases. Marine insurance protects shipping companies against the loss of a ship or its cargo. 11 Report submitted by: -Ramesh Kumar Meena Roll No. or fidelity insurance.S Meena . 36 S/o Mr. In recent years. the insurance industry has broadened to guard against almost any conceivable risk. other insurance against the elements includes hail. whereby automobile accident victims receive compensation without having to initiate a liability lawsuit. a pianist's fingers. goods in transit. or an outdoor event against loss from rain on a specified day. and a number of states have instituted so-called no-fault insurance plans. flood. Credit insurance safeguards businesses against loss from the failure of customers to meet their obligations. as well as many other items. In many states liability insurance is compulsory. express and parcel-post packages. and even bridges and tunnels. companies like Lloyd's will insure a dancer's legs. is designed to protect an employer against dishonesty or default on the part of an employee. truck cargoes. many car owners. Bonding. and drought. Automobile insurance includes not only insurance against fire and theft but also compensation for damage to the car and for personal injury to the victim of an accident (liability insurance). and socalled inland marine insurance covers a vast miscellany of items. including tourist baggage.

According to Sigma (2001) the largest insurance sectors are to be found in the U. and 334.3 percent from the non-life sector. Germany.S Meena Over the last few years. Between 1984 and 2001. it must be remembered that the insurance industry’s primary function is to supply individuals and businesses with coverage against specified contingencies. France and Italy. R. the global insurance industry grew at an overall rate of 483. Insurance companies.8 percent from the life insurance sector. followed by the UK. and indirectly through higher levels of risk transfer and financial intermediation. has grown in economic importance.6 percent (roughly comprising of 664. like other financial services. managing. Expanding further on this issue. 12 Report submitted by: -Ramesh Kumar Meena Roll No. Furthermore. during the last four decades the global insurance sector has on average outpaced global economic growth. 36 S/o Mr. which together generates more than fifty percent of global premium income. This is through direct contributions to gross domestic product (GDP) via increased levels of employment within the sector. engage in underwriting. and financing risks.S. therefore. with insurance companies being significant institutional investors. In recent decades. and Japan. .THE GLOBAL INSURANCE INDUSTRY The insurance industry forms an integral part of the global financial market. the insurance sector.

growth in the global non-life insurance market has significantly slowed down and has only grown in line with general economic growth (Sigma. which has continued to grow at a fast rate. with growth rates often reaching double-digit figures. OECD countries accounted for 95. reduced capital market yields and low interest rates. Sigma (2002a) estimates this to be in the region of 5.50 percent of non-life insurance premium volume in 1994 and 2001. and 91. developments. Measured in total premiums. a more recent development since the early nineties has been the ability of the emerging markets to strengthen their global market share in the life insurance segment. is reflected 2001).52 percent and 93.S Meena . This is in contrast to the life insurance sector.4 percent worldwide since 2000. 2001). R. respectively. Outside of the OECD. 13 Report submitted by: -Ramesh Kumar Meena Roll No. Furthermore.19 percent and 92. all of which has put insurers under some pressure (Sigma. 36 S/o Mr. emerging markets still have some way to go before matching the relative sizes and importance that the insurance industry has in industrialized countries. in growing insurance and Also. markets (Sigma. Nevertheless. insurance markets within the OECD countries have faced falling premium income. 2002a).99 percent of the life insurance business. the density despite and these growing importance of the insurance industry in emerging insurance penetration of the non-OECD insurance markets 1996.

R. Research efforts have.S Meena . To further explore exactly how these factors influence insurance demand. thereby positively influencing economic growth. However. they are each considered in turn below. 36 S/o Mr. it is important to highlight that the relative importance of an insurance market within a country is likely to depend upon economic development. policymakers are able to aid financial development. Economic factors First. an overwhelming positive relationship between financial development and economic growth is evident and that a well-developed financial sector contributes to economic growth. economic. and social factors.THE DETERMINANTS OF INSURANCE DEMAND The theoretical and empirical research to date has suggested that. moved onto understanding the factors that encourage the development of financial institutions. on a single country-by-country basis. Ward and Zurbruegg (2000) have shown that differences in the causal relationship between insurance market development and economic growth are apparent. By identifying the determinants that encourage insurance demand. therefore. These determinants that have been empirically tested can be grouped under three broad subheadings. political / legal. on average. since with a greater rate of economic growth the consumption of insurance products 14 Report submitted by: -Ramesh Kumar Meena Roll No.

(2000) extend these findings when analyzing motor vehicle and liability insurance in OECD countries. These results are also confirmed by the more recent cross-country based studies of Beenstock et al.S Meena . Fisher (1973). and Browne and Kim (1993). (1988) indicate a positive relationship exists between national income in industrialized countries and spending on property-liability insurance. The World Bank confirms these findings and states that non-life insurance can be regarded as a normal good implying that insurance demand rises as income increases 15 Report submitted by: -Ramesh Kumar Meena Roll No. Esho et al.1984-1998. Fortune (1973). early findings highlighted that the demand for life insurance is positively correlated with income. 36 S/o Mr. and Lewis (1989). (1986). Browne et al. R. but also that income has a more pronounced effect on motor vehicle insurance. Again.should increase. Truett and Truett (1990). (2003) also test the impact of national income on property and casualty insurance by analyzing data from developed and developing nations between. researches made by Yaari (1965). they detect a strong positive relationship between national income and non-life insurance demand. than on general liability insurance consumption. and do not only show that a positive and statistically significant relationship can be found between premium density and income. Indeed. Ward and Zurbruegg (2002) also extend these findings further When analyzing the impact of national income on non-life insurance demand. Beenstock. Hakansson (1969).

(Lester. 36 S/o Mr. In fact Hofstede (1995) points out that the level of insurance within an economy depends on the national culture and the willingness of individuals to use insurance as a means of dealing with risk. Schlesinger (1981) reveals that an optimal insurance decision is directly related to the level of risk aversion of the insured person and shows. September 2002). This is in line with the work by Outreville (1996).S Meena . Using education and the uncertainty avoidance index to approximate the level of risk aversion Esho et al (2003) confirm that risk aversion has a significant impact on non-life insurance demand. (2002) highlight that the demand for insurance is in the main unaffected by cultural factors. It is not surprising that Douglas and Wildavsky (1982) show that the demand for life insurance in a country may be affected by the unique culture of the country to the extent that culture affects the degree of risk aversion. R. following Pratt (1964) and Szipiro (1985). that the more risk adverse an individual is the higher the amount insured. Moreover. However. Social factors Despite these findings. in the case of property casualty insurance Esho et al. which emphasizes that education promotes an understanding of risk and hence aids insurance demand. insurance penetration in some countries differs from the international Insurance can also be seen as a product that is valued subjectively by its consumer. average. 16 Report submitted by: -Ramesh Kumar Meena Roll No.

four part-time members. to regulate. After this the private players started entering the market. R. Insurance Regulatory and Development Authority (IRDA. 36 S/o Mr. which was constituted by an act of parliament) specify the composition of Authority The Authority is a ten member team consisting of (a) (b) (c) A Chairman.INSURANCE REGULATORY DEVELOPMENT AUTHORITY (IRDA) Prior to 1999 the there were only two players in the market  Life insurance corporation of India (LIC)  General insurance corporation (GIC) Then to protect the interests of the policyholders. five whole-time members. namely: Life Insurers: 17 Report submitted by: -Ramesh Kumar Meena Roll No. promote and ensure orderly growth of the insurance industry.S Meena . IRDA was set up. (all appointed by the Government of India) Insurance Industry in the year 2000-2001 had 16 new entrants. Composition of Authority under IRDA Act. 1999 As per the section 4 of IRDA Act' 1999.

Reg.2001 31.2000 24. Name of the Company 18 Report submitted by: -Ramesh Kumar Meena Roll No. No 1 2 3 4 5 6 7 8 9 10 Reg.2001 02.01.2000 10.S Meena . SBI ING Bajaj Life Insurance Life Life Company Insurance Insurance Limited . Kotak Mahindra Old Mutual Life Insurance Limited Birla Sun Life Insurance Company Ltd.08.S.2000 15.2001 12. ICICI Prudential Life Insurance Company Ltd.2001 30. 101 104 105 107 109 110 111 114 116 117 Date of 23. No.2001 : Name of the Company HDFC Standard Life Insurance Number Reg. Company Ltd. 36 S/o Mr. Vysya Allianz Company Private Limited Company Limited Metlife India Insurance Company. No. General Insurers S.03.11.08. Date of Reg.01.02. Ltd. Tata AIG Life Insurance Company Ltd.10.2001 06. R.08. Max New York Life Insurance Co.11.2001 03.

namely 19 Report submitted by: -Ramesh Kumar Meena Roll No. Yr: 2001-2002: (From 1st Jan 2001 to Dec.2000 23. R.12. so far has 5 new entrants. 2002) Insurance Industry in this year.10.08.01. 36 S/o Mr.1 2 3 4 5 6 102 103 106 108 113 115 23.05.2000 04.S Meena . Ltd TATA AIG General Insurance Company Ltd.2001 Royal Reliance Sundaram General Alliance Insurance Insurance Company Limited Company Limited. IFFCO Tokio General Insurance Co. Bajaj Allianz General Insurance Company Limited ICICI Lombard General Insurance Company Limited.2001 02.2000 22.10.2001 03.

2002 27. 20 Report submitted by: -Ramesh Kumar Meena Roll No. Registration Date Number 1 2.08.2002 14.Life Insurers: S. 36 S/o Mr. Ltd.2002 AMP Sanmar Life Insurance Company Limited. Registratio n Number 1 2 121 122 03. 3.No. 123 124 125 15. of Name of the Company S.2002 27.07. India Pvt.S Meena .No.08. HDFC-Chubb Insurance Co. Ltd.01. General Insurers : of Name of the Company Cholamandalam Export Credit General Guarantee General Date Reg. Aviva Life Insurance Co. Corporation Ltd. R.05.2002 Registration Insurance Company Ltd.

Yr: 2005-2006: (From 1st Jan 2006 till Date) Insurance Industry in this year.02. Ltd. R. 10 crore people have a capacity to pay Rs 7000 per annum . Of Players 21 Report submitted by: -Ramesh Kumar Meena Roll No.No Registration Date Number 1 127 Reg.2004 Sahara India Insurance Co. so far has 1 new entrants.2 Crores which makes it one of the hottest destination for any company  While 5 crore people have a capacity to pay an annual premium of Rs 10000 per annum. and another 15 crore people have a capacity to pay Rs 3500 per annum No. of Name of the Company FACTS OF LIFE INSURANCE INDUSTRY Life insurance premium accounts for 72% of the total premium collection in India as against the global average of 59%. namely Life Insurers: S. 36 S/o Mr. Market Potential  The size of the Insurance market is 31. 06.S Meena .

 Before nationalization of Insurance in 1956.S Meena . 36 S/o Mr. R. there were 254 life Insurers and 106 general insurers to serve the population of 36 crores in India  UK has more than 500 insurance companies to serve a population of 6 crores  USA has over 2200 insurance companies to serve a population of 26 Crores  Even Japan has 90 Insurance Companies to serve its population of 12 Crores Emerging Trends  The Non life market was the size of Rs 10000 crores last year with a potential of growing up to at least Rs 45000 Crores provided it develops the way it is expected to develop.5% which could be traced to the prevailing economic recession  The per capita insurance premium in India is just US $ 8 which is less then even Malaysia which is US $144 Current trends and strategies 22 Report submitted by: -Ramesh Kumar Meena Roll No.  As on date the total insured losses arising out of unfortunate incident of Sept 11 in WTC is on date $42-43 Billion The Industry  The growth rate of the insurance sector is about 10% which is expected to go up to 12%  Before opening up the growth rate was 14% which means there is a dip of 4.

So far insurance has been widely understood by the market as another tax saving oriented investment option  There are several products becoming available in the market that are suited to the life style of the people.  There is a lot of scope for tailor made products depending upon the need of the customer.  Insurers are trying to distinguish their products but only time and experience will tell. 23 Report submitted by: -Ramesh Kumar Meena Roll No.  Distribution and servicing are becoming more technology intensive and closely regulated. Current trends and strategies  New distribution channels are evolving and public will have greater choice even in the matter of point of purchase. Growth of the pension market today: groups as well as individual.  The realization that insurance is basically about protection. 36 S/o Mr. R.S Meena .  Emerging health insurance market with third party administrators (TPAs) trying to make a place for them selves as and when the regulations are in place  New types of products –Unit linked single premiumbecoming popular. Emerging trends  People are slowly moving from purely savings oriented products to products that offer higher degree of life cover.

and the benefit goes on to the consumer by charging a lower premium rate  Half of insurance policies sold in Europe is through banks Insurance and IT Key areas where differentiation is considered critical for the future of the insurance companies include the following:  Product Development  Back Office  Customer Service  Distribution 24 Report submitted by: -Ramesh Kumar Meena Roll No.Bank Assurance  Insurance products distributed through the bank counters all over the country can bring vast improvement in the insurance coverage in the quickest possible time  Banks today are the most credible agencies (However Banks also do have to go for Bankers’ Blanket Insurance!!!)  The public has immense faith in them  Regulators keep a tight vigil over them  Millions of bank staff are highly educated and trained  Banks can accept lower commissions. R.S Meena . 36 S/o Mr.

25 Report submitted by: -Ramesh Kumar Meena Roll No. 36 S/o Mr. In line with the economic reforms that were ushered in India in early nineties. the Government of India. The objective was to improve the penetration of insurance as a percentage of GDP. R. the Government set up a Committee on Reforms (popularly called the Malhotra Committee) in April 1993 to suggest reforms in the insurance sector. The first Indian life insurance company was the Oriental Life Insurance Company.LIFE INSURANCE MARKET IN INDIA Many may not be aware that the life insurance industry of India is as old as it is in any other part of the world. A number of players (over 250 in life and about 100 in non-life) mainly with regional focus flourished all across the country. The insurance business of the country was then brought under two public sector companies.S Meena . Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). nationalised the industry in two phases in 1956 (life) and in 1972 (non-life). which was started in India in 1818 at Kolkata. The Committee recommended throwing open the sector to private players to usher in competition and bring more choice to the consumer. which remains low in India even compared to some developing countries in Asia. However. concerned by the unethical standards adopted by some players against the consumers.

71 8.48 14.77 1.5 3165. presents a huge untapped potential for players in the insurance industry. with about 200 million middle class households.5 935. India.54 0.9 1193.04 6. So far in the private sector.12 2.70 4.5 5.1 1611.04 9. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors with the per capita income in India expected to grow at over 6% for the next 10 years and with improvement in awareness levels. R. which has put in place regulations in line with global norms.13 0. the demand for insurance is expected to grow at an attractive rate in India.36 INSURANCE DENSITY (Per Capita premiums in USD) 3028.S Meena .9 By any yardstick. 36 S/o Mr. 12 life insurance companies and 9 general insurance companies have been registered COUNTRIES INSURANCE PENETRATION (Premiums as a % of United Kingdom Japan United States South Africa Australia South Korea India China Malaysia Indonesia Brazil GDP) 12. IRDA was set up as an independent regulatory authority.5 85.0 12.4 392.Reforms were initiated with the passage of Insurance Regulatory and Development Authority (IRDA) Bill in 1999.09 1.4 4. 26 Report submitted by: -Ramesh Kumar Meena Roll No.6 7.

R. Allianz.1003 billion by 2008 (a compounded annual growth of 16.218 billion in 1998 to Rs. Standard Life. Some of the key names are AIG. The Monitor Group has estimated that the life insurance market will grow from Rs. 36 S/o Mr. The scope for expansion is still unlimited as virtually all the players are concentrating on large cities and towns - 27 Report submitted by: -Ramesh Kumar Meena Roll No. The entry of new players has rejuvenated the erstwhile monopoly player LIC. Sun Life Canada and Old Mutual. New York Life. Prudential.  Market Expansion: There has been an overall expansion in the market.5%) WINDS OF CHANGE Reforms have marked the entry of many of the global insurance majors into the Indian market in the form of joint ventures with Indian companies.An independent consulting company.S Meena . This has been possible due to improved awareness levels thanks to the large number of advertising campaigns launched by all the players. which has responded to the competition in an admirable fashion by launching new products and improving service standards The following are the key winds of change brought about by privatization.

Customers have tremendous choice from a large variety of products from pure term (risk) insurance to unit-linked investment products. Advice and need based selling is emerging through much better trained sales force and advisors. More customers are buying products and services based on their true needs and not just traditional money-back policies. Customers are offered unbundled products with a variety of benefits as riders from which they can choose.  Customer Service: Not unexpectedly. mainly from the stable of their international partners. R.S Meena . However. 36 S/o Mr. health products. settlement of 28 Report submitted by: -Ramesh Kumar Meena Roll No.except by LIC to an extent there was no significant attempt to tap the rural markets  New Product Offerings: There has been a plethora of new and innovative products offered by the new players.g. There is improvement in response and turnaround times in specific areas such as delivery of first policy receipt. final maturity payment. there are still some key new products yet to be introduced . premium notice. which is not considered very appropriate for long-term protection and savings. this was one area that witnessed the most significant change with the entry of new players.e. policy document. There is an attempt to bring in international best practices in service and operational efficiency through use of latest technologies.

the internet and direct marketing.claims etc. However. While agents continue to be the predominant distribution channel. brokers. there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels  Channels of Distribution: Till two years back. the only mode of distribution of life insurance products was through Agents.S Meena . the wide spread of bank branch network in India could lead to bank assurance emerging as a significant distribution mechanism. today a number of innovative alternative channels are being offered to consumers. R. Some of them are bank assurance. 29 Report submitted by: -Ramesh Kumar Meena Roll No. Though it is too early to predict. 36 S/o Mr.

4 % of TOTAL POLICIES (In Million) % of TOTAL POLICIES 94.9 0.8 0.5 0.3 0.05 0.0 100 30 Report submitted by: -Ramesh Kumar Meena Roll No.08 0.0 100 9. 36 S/o Mr. R.06 0.05 0.08 0.S Meena .5 1.8 3.22 10.LIFE INSURANCE INDUSTRY IN INDIA FY 2005 – 2006 COMPANY PREMIUM (Rs.5 2.8 2.14 0. Million) LIC ICICI Prudential Birla Sunlife Tata AIG HDFC Standard Bajaj Allianz Max New York Others Total 59187 2464 988 792 760 582 526 1386 66683 88.2 1.9 0.8 0.7 1.2 1.8 0.1 0.

In the insurance industry where large amounts of capital are required. appointed agents. 36 S/o Mr. but margins and profitability will suffer severely. One may achieve sales turnover. Still. but is debatable whether there are any significant differences. improved customer service standards and revamped/expanded their distribution networks.S Meena . More or less all players (including the market leader LIC) have aggressively recruited and trained advisors. in a market where it is difficult to distinguish oneself sufficiently on service or any other parameter to be able to charge a premium. While there is room for a few scale 31 Report submitted by: -Ramesh Kumar Meena Roll No. launched new products. it will lead to unmitigated price competition to the detriment of all players. If at all there was any major difference between players it was only in time lag in launching of services. each company is trying to be ‘everything to everybody’ Our argument is that the strategy of being everything to everybody is risky.STRATEGIC ALTERNATIVES If one analyses the history of growth of the insurance industry since reforms. Every player would like the customers to believe that its service standards are the best or that its agents are the most informed and ethical. it is marked by all-round growth of all players. In other words. Some players justify the above strategy on the basis that the Indian market is huge and it can accommodate everybody. this is risky. R.

which has been placing particular focus on investment-related products since its launch in India. While each company has to choose its own unique positioning based on its unique strengths. returns on the its company deliver investment-linked products and thereby carve for itself a leadership position in this segment. Through insurance its superior fund can management better capabilities. In the insurance industry too. it is possible to achieve a unique position by focusing on certain category of products. 32 Report submitted by: -Ramesh Kumar Meena Roll No. 36 S/o Mr. It is a sensible strategy for those companies who have distinctive advantages or strengths in offering certain products and services.S Meena . Variety-based Positioning This type of positioning is based on varieties in products and services rather than customer segments. One such example is Birla Sunlife Insurance. R. Needless to say the positioning choices discussed here are not mutually exclusive and can be overlapping.players with a finger in every pie. it is profitable for other players to focus on different segments to survive and thrive in a multi-firm open environment. the below-mentioned generic positioning alternatives appear worth considering.

It is possible to achieve profitable positioning by focusing and excelling in only pension products. The needs of HNIs would be quite different from those of a general consumer and would require an entirely different marketing 33 Report submitted by: -Ramesh Kumar Meena Roll No. This can be done successfully if a company has unique strengths to service a group of customer needs better than others. An example would be a life insurance company that focuses only on High Net-worth Individuals (HNIs).Then there is the entire category of pension products which is widely touted to have immense growth potential in India due to imminent pension reforms.S Meena . However. 36 S/o Mr. R. The insurance needs of customers vary significantly for different groups of customers. The insurance needs of young family with small children will be quite different from that of a family in which the incomeearner is close to retirement. in India most of the life insurance companies have a wide variety of products tailored for different customer needs and there is no company focusing on a particular customer need. Needs-based Positioning This is the most commonly understood positioning and is based on the differing needs of different groups of consumers.

for example). R. Paroled.S Meena . 34 Report submitted by: -Ramesh Kumar Meena Roll No. to the promotion methods employed. That is different groups of customers may be accessible in different ways even though they may have similar needs. distribution. income levels and distribution (seasonality. 36 S/o Mr.mix right from the type of products offered and the way they are distributed. Rural market can be a highly profitable position if one is able to carefully plan and tailor an entire set of low-cost activities of advertising. to successfully exploit the potential. The rural market for life insurance is very different from the urban market in terms of needs. Contrary to common perception it is a big opportunity as emphasized repeatedly by such eminent strategists like C. no other player has paid any attention or focus on the rural sector. Access is typically a function of customer geography or customer scale.K. and product design etc. Access-based Positioning Positioning of customers can also be done by the way they are accessible. So far except for LIC. There is excellent opportunity in the insurance industry to employ access-based positioning by targeting the rural insurance sector. penetration of media and so on.

000 instead of Rs. R.00.1. STANDARD DEDUCTION Effective financial year 2005-06.000  Education Cess of 2% chargeable on Income Tax and Surcharge. 35 Report submitted by: -Ramesh Kumar Meena Roll No. TAX RATES Income Tax Rate Up to Rs100000 Nil Rs100001 – 10% on income above Rs100000/= 150000 RS150001250000 Rs2500011000000 Rs1000001 above  For women Rs5000 + 20% 30% 30% on on on income income income Surcharge Nil Nil above Nil above Nil above 10% on tax Rs150000/= Rs25000 + Rs250000/= & Rs25000 + Rs250000/= employee tax rates starts only from Rs. benefit of standard deduction on salary income withdrawn.S Meena .1. 36 S/o Mr.25.ABOUT INCOME TAX Given below is the proposed Income Tax Ready Reckoner for income/tax rebates available for the year 2005-06.

S Meena . 36 S/o Mr.DEDUCTION FROM TOTAL INCOME 36 Report submitted by: -Ramesh Kumar Meena Roll No. R.

House loan principal repayment. VPF. ULIP.000/= 100% Certificate handicapped a Govt hospital 37 Report submitted by: -Ramesh Kumar Meena Roll No. 36 S/o Mr.000 100% Premium Receipt other schemes PF. 80D 80DD Medical Premium Medical for dependent Insurance Rs10. Infrastructure Bonds Tuition equivalent /= of private ------------------------Through Salary Through Salary Deposit Challan/ Passbook Copy Certificates Copy Certificates Deposit Challan Previous NSC’s Deposit Challan Interest certificate ----------Copy of Bonds 100% Premium Receipt from year of of insurance companies. R. fees. PPF.S Meena . NSC.00. CTD NSC-interest Accrued.000/= Treatment Rs50.Section Description Maximum Amount of Rate Proof required Deduc 80C tion LIC Pension plan or Rs1.

Address of the rented residential property 3. Name and address of the landlord 2. 36 S/o Mr.S Meena .000/= 100% Certificate from disability Interest on loan taken Rs40000/= for higher education a Govt hospital Certificate given by the lender HRA REBATE Least of the following is allowed as a deduction from total income  Actual HRA received  50% of Basic (40% in case of non-metro city)  Excess of rent paid over 10% of basic Proof Required Copies of monthly rent receipts with the following details without which HRA rebate will not be allowed 1. R. Rent amount 5. Signature of the landlord on revenue stamp 38 Report submitted by: -Ramesh Kumar Meena Roll No.80U 80 E Permanent physical Rs50. Month/ Duration 4.

R.S Meena . rented and the own. In case of joint property the first joint owner must be the employee and an undertaking has to be given by the employee in Joint Property Declaration attached  No deduction is available for purchase of plots or for a property where construction has not yet been completed/possession not yet taken IMPORTANT NOTE  Both HRA rebate and loss on house property can not be availed if both the properties.LOSS on HOUSE PROPERTY to be claimed in Form 12C Following supports/proofs are mandatory for claiming loss on house property  Interest Certificate for the financial Year 2005-2006  Copy of Possession Letter/ Sale Deed  Joint Property declaration if loan is in joint names  In case house is rented/let out. copy of the lease deed is required  The property for which the deduction is being sought must be in the name of the employee. 39 Report submitted by: -Ramesh Kumar Meena Roll No. are in the same town  Loss on house property can not be claimed for a vacant house located in the same city where the office is located  Loss on house property can not be claimed without taking possession of the property. 36 S/o Mr.

R. 40 Report submitted by: -Ramesh Kumar Meena Roll No. 5000/. Loss on house property can be claimed only for a residential house property (not a plot) TAX REBATE Effective financial year 2006-07 benefit u/s 88 for tax rebate and u/s 88C for tax rebate Rs.for women employees have been withdrawn. 36 S/o Mr.S Meena .

a leading international financial services group headquartered in the United Kingdom.ABOUT ICICI PRUDENTIAL ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank.113 crore and wrote nearly 6. ICICI Prudential has retained its position as the No. ICICI Prudential's equity base stands at Rs. the company garnered Rs 1. 41 Report submitted by: -Ramesh Kumar Meena Roll No. 15. as well as 19 banc assurance and 200 corporate agent tie-ups. 2006. R. a premier financial powerhouse and Prudential plc.626 crore of new business premium for a total sum assured of Rs 64. with a wide range of flexible products that meet the needs of the Indian customer at every step in life. 20. In the financial year ended Sep 30. The company has a network of about 1.000 advisors.58.85 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. 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). For the past four years.437 policies. 36 S/o Mr. 1 private life insurer in the country.S Meena .

Each of the values describes what the company stands for. The success of the company will be founded in its unflinching commitment to 5 core values -. where we can play a significant role in redefining and reshaping the sector. efficiently and conveniently  Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders  Providing an enabling environment to foster growth and learning for our employees  And above all. This we hope to achieve by:  Understanding the needs of customers and offering them superior products and service  Leveraging technology to service customers quickly. Ownership and Passion.Integrity.Our vision: To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service. 36 S/o Mr.S Meena . the qualities of our people and the way we work. 42 Report submitted by: -Ramesh Kumar Meena Roll No. We do believe that we are on the threshold of an exciting new opportunity. Boundary less. building transparency in all our dealings. Customer First. R. there are no limits to our growth. Given the quality of our parentage and the commitment of our team.

1. ICICI Bank posted a net profit of Rs. to form ICICI Prudential Life Insurance. the two companies joined hands once more in 2000. ICICI Bank has 74% stake in the company. This includes mortgages. Riding on the success of this relationship. ICICI Bank is the only Indian company to be rated above the country rating 43 Report submitted by: -Ramesh Kumar Meena Roll No. which has today emerged as one of the leading mutual funds in India. R. with a commitment to provide leading-edge life insurance solutions. 865 crore for the year ended March 31. car and personal loans. This includes about 635 branches and extension counters. corporate and agricultural finance. known for their professionalism. 2823. call centres and Internet banking. The Bank services a growing customer base of more than 7 million customer accounts and 17 million bondholders’ accounts through a multi-channel access network. 2005. 36 S/o Mr. 2325 ATMs. ICICI Bank (NYSE:IBN) is India’s second largest bank with an asset base of Rs. ICICI Bank provides a broad spectrum of financial services to individuals and companies. and Prudential plc has 26%. excellent quality of service and long term commitment to YOU.S Meena . The two companies bring together two of the strongest financial service brands in Asia.Promoters ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management Company.72 billion. credit and debit cards.

000 staff and agents across the region. the Philippines. a leading international financial services group headquartered in the United Kingdom. banking. Hong Kong.by the international rating agency Moody’s and the only Indian company to be awarded an investment grade international credit rating. Prudential has championed customercentric products and services. mutual funds. The Bank enjoys the highest AAA (or equivalent) rating from all leading Indian rating agencies. Prudential plc is a leading international financial services company in the UK. Indonesia. Korea. investment management and general insurance. Fact sheet ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. Thailand and Vietnam. Prudential has brought to market an integrated range of financial services products that now includes life assurance.China. India. pensions. Malaysia. In Asia. Prudential is a UK’s largest life insurance company with a vast network of 22 life and mutual fund operations in twelve countries . Singapore. Taiwan.S Meena . Established in 1848. R. a premier financial powerhouse. supported by over 10. with around US$400 billion funds under management and more than 16 million customers worldwide. and prudential plc. 36 S/o Mr. ICICI Prudential was amongst the first private sector insurance companies to begin 44 Report submitted by: -Ramesh Kumar Meena Roll No. Japan. Since 1923.

Nasik. 12. Surat. Rourkela. Bhopal. Bareilly. Jalandhar. Jamshedpur. Rajkot.S Meena . Distribution ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. Thane. Ranchi. Raipur. Thrissur. Guntur. Trichy. Udaipur. Madurai. Jaipur. Goa. Gwalior. Aurangabad. Allahabad. Meerut. Jamnagar. Mumbai. Kota. Noida.58. These are: Agra. Vapi. the company garnered Rs 1. Mangalore. Dehradun. Ludhiana. Nagpur. In the period April-December 2005. Hubli. Varanasi. Jodhpur. Trivandrum. Bhubhaneshwar. Patiala. New Delhi. Kanpur. Calicut. Guwahati. Bangalore. Kolkata.1 private life insurer in the country. Salem. having commenced operations in 271 cities and towns in India. Vashi. Mysore. Lucknow.437 policies. Durgapur. Chandigarh. Bhatinda. Vadodara. Kochi. Hyderabad. Vijayawada and Vizag. Faridabad. Chennai. Coimbatore.200 crore of new business premium for a total sum assured of over Rs 64. Ahmedabad. Kottayam. Indore. 36 S/o Mr. Gurgaon.041 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. Karnal. Ajmer. R. Amritsar.operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).113 crore and wrote nearly 6. Today the company is the No. Pune. Kolhapur. 45 Report submitted by: -Ramesh Kumar Meena Roll No. ICICI Prudential’s equity base stands at Rs. Siliguri.

46 Report submitted by: -Ramesh Kumar Meena Roll No.024 crore and a network of about 635 branches and offices and about 2. having agreements with ICICI Bank.S Meena . Delhi. Kolkata and Vadodara. Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). It has also tied up with organizations like Dhan for distribution of Salaam Zindagi. Federal Bank.20. Bank of India. a policy for the socially and economically underprivileged sections of society. 2006.1. 36 S/o Mr. 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 specialized subsidiaries and affiliates in the areas of investment banking. ICICI Prudential has recruited and trained about 1.637 crore for the year ended March 31. life and non-life insurance. as well as over 200 corporate agents and brokers.325 ATMs. ABOUT THE PROMOTERS ICICI Bank is India's second-largest bank with total assets of about Rs. R.The company has seven bank assurance tie-ups. ICICI Bank posted a net profit of Rs. Further. venture capital. the Stock Exchange.000 insurance advisors to interface with and advise customers. Lord Krishna Bank and some cooperative banks.112. asset management and information technology. it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers. South Indian Bank. ICICI Bank's equity shares are listed in India on stock exchanges at Chennai.

Thailand and Vietnam. through its businesses in the UK and Europe. Singapore. 47 Report submitted by: -Ramesh Kumar Meena Roll No. Hong Kong.Established in London in 1848. the US and Asia. R.China. investment management and general insurance. the Philippines. As of June 30. Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries . In Asia. policyholder and unit holders worldwide. banking. Korea. provides retail financial services products and services to more than 16 million customers. Malaysia. Indonesia. Taiwan. mutual funds. Prudential plc. 2006. India. Prudential has brought to market an integrated range of financial services products that now includes life assurance. pensions. Japan. 36 S/o Mr. the company had over US $400 billion in funds under management.S Meena .

 Save n Protect is a traditional endowment savings plan that offers life protection along with adequate returns.  LifeTime & LifeTime II offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Its 20 products can be enhanced with up to 6 riders. Savings Solutions  SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of protection.  CashPlus is a transparent. Protector.S Meena . Each offer 4 fund options Preserver. 36 S/o Mr. to create a customized solution for each policyholder. 48 Report submitted by: -Ramesh Kumar Meena Roll No.PRODUCTS AND SERVICES SNAPSHOT Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative. Balancer and Maximiser. expenses for a child’s higher education or purchase of an asset. feature-packed savings plan that offers 3 levels of protection as well as liquidity options. R. customer-centric products that meet the needs of customers at every life stage.  LifeLink II is a single premium Market Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market.  CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child’s marriage.

Child Plans SmartKid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. R. Premier Life is a limited premium paying plan that offers customers life insurance cover till the age of 75. The policy is designed to provide money at important milestones in the child’s life. 36 S/o Mr. Protection Solutions LifeGuard is a protection plan.  InvestShield Life is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest.S Meena . level term assurance with return of premium and single premium. SmartKid plans are also available in unit-linked form both single premium and regular premium. 49 Report submitted by: -Ramesh Kumar Meena Roll No.  InvestShield Gold is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with limited premium payment terms.  InvestShield Cash is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with flexible liquidity options. It is available in 3 options level term assurance. which offers life cover at very low cost.

The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. a social sector group insurance policy targeted at the economically underprivileged sections of the society. Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. R. Market-linked retirement products  LifeTime Pension II is a regular premium market-linked pension plan  LifeLink Pension II is a single premium market-linked pension plan. ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner.S Meena .  SecurePlus Pension is a flexible pension plan that allows one to select between 3 levels of cover. ICICI Prudential also launched Salaam Zindagi. 50 Report submitted by: -Ramesh Kumar Meena Roll No.  InvestShield Pension is a regular premium pension plan with a capital guarantee on the investible premium and declared bonuses.Retirement Solutions  ForeverLife is a retirement product targeted at individuals in their thirties. 36 S/o Mr.

S Meena . The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.  Accident Benefit: This rider option pays the sum assured under the rider on death due to accident. the beneficiary receives an additional amount equal to the sum assured under the policy. The cover could be uniform or based on designation/rank or a multiple of salary.ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. which can be added to the basic policy at a marginal cost. ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps provide affordable cover to members of a group. 51 Report submitted by: -Ramesh Kumar Meena Roll No. depending on the specific needs of the customer. the beneficiary will be entitled to twice the sum assured as additional benefit.  Accident & disability benefit: If death occurs as the result of an accident during the term of the policy. 36 S/o Mr. Flexible Rider Options ICICI Pru Life offers flexible riders. R. If the death occurs while traveling in an authorized mass transport vehicle. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement.

in the event of the death of the life assured. 52 Report submitted by: -Ramesh Kumar Meena Roll No. Through Six sigma there has been a continuous focus on the customer.  Major Surgical Assistance Benefit: provides financial support in the event of medical emergencies. SecurePlus and CashPlus SERVICE STANDARDS Six sigma ICICI prudential realized early on that quality could be a significant differentiar with respect to the competition. Benefits are payable to the insured for medical expenses prior to death. which fits in ideally with a focus on the customer. Cover is offered against 43 surgical procedures. 36 S/o Mr. Hence it launched a six-sigma initiative as a quality measurement tool to understand and fulfill customer needs. till maturity. R.f.S Meena . set industry benchmarks and make its operations salable with a focus on customers and costs. which fits in ideally with ICICI Prudential’s customer centric approach. ensuring benefits are payable to the life assured for medical expenses incurred for surgical procedures.e. It is available on SmarKid. Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses.(This Rider has been withdrawn w. 1 s t May 2005)  Income Benefit: This rider pays the 10% of the sum assured to the nominee every year.

Debt investments target a judicious mix of credit and interest rate risk. Portfolio management is a function o extensive research and is based on data and reasoning. R.Investment philosophy Their investment philosophy aims to proactively achieve superior risk-adjusted returns on our funds under management. The focus is on ensuring long-term safety. Channel partners can manage their entire 53 Report submitted by: -Ramesh Kumar Meena Roll No. There is clearly articulated asset allocation strategy depending on risk characterstics of corresponding liability. Stability and profitability of portfolio. Information technology At ICICI Prudential. the strategic use of technology provides the consumer with value –added services. Initiatives have been taken to provide complete CRM solutions so that the consumer can access complete information on the policies online.S Meena . from accessing payment details to sending in the premium. There is a robust system which is employed as the backbone of the company. Investments in equity target long term appreciation and follow a value oriented investment style. 36 S/o Mr. The framework to achieve this objective is based on sound investment process and controls coupled with a rigorous and sophisticated risk management strategy.

Working on commission base 54 Report submitted by: -Ramesh Kumar Meena Roll No.tot.S Meena . visting card  Account opening at zero balance  In future chance of becoming mdrt. Recruitment of advisors  To be come an advisors one has to : Age should be more than 25 yrs.cot. 36 S/o Mr.  Working as an offroll in company  An e-mail . client diaries and premium calculators.i-card.a Telecalling & insurance sale  Collection of database from : Fill up “my market 100” Doctors Advocate Friends Telephone directory Training to advisors  After clearing irda exam all advisor will an code.business on the web through premium alerts. Family income more than 5 lac p. R. Married Graduate Residing in the same area for more than 5 years.

banks and call centre executives  An advisor force of more than 75.S Meena undisputed leadership by proactively achieving superior risk adjusted returns on its . R. 36 S/o Mr. One can now enhance the business with capital investment and yet earn high returns.  Tie ups with India’s leading banks like ICICI bank. ICICI prudential customers enjoy the privilege of approaching the company as per their convenience. brokers.000 agents . Bank of India. Step into the arena of private life insurance. The pleasant experience service The company maintains its 55 Report submitted by: -Ramesh Kumar Meena Roll No. Its vast reach across India places the company far ahead of its pears. federal bank and south Indian bank. one of the most dynamic industries today with Priority Circle of ICICI prudential life insurance company ltd. The vast reach  91 branches spread over 61 locations  A committed team of tied and corporate agents.ICICI PRUDENTIAL PRIORITY CIRCLE THE PRIORITY CIRCLE Priority circle is an opportunity to diversify the business and widen the gamut of services and solutions offered to the clients. the leader in today’s private life insurance industry.

The prime focus is on ensuring long term safety. It’s a partnership that results in unlimited growth opportunity with the company. From people and products to process at every stage of the policy. attractive returns and benefits. excellent back-end support. no supervisor. profitability. 36 S/o Mr. stability of the portfolio. THE BENEFIT A premium product portfolio that caters to a wide range of financial needs. round the clock customer service and extensive training for that edge over the competition THE ADVANTAGE No start up capital. Quality service at ICICI Pru is not an isolated function but a practice.funds. THE ADVISORS FORTE An advisor at ICICI Prudential is one of the main strengths of the company. conduct regular reviews to keep customers on track and last but not the least achieve targets. flexible working environment and an unlimited earning potential. provide tailor-made solutions to cater to their individual needs. THE ROLE To identify prospective customers. it is an experience for the customers so everyone’s a customer service associate including you.S Meena . 56 Report submitted by: -Ramesh Kumar Meena Roll No. R.

57 Report submitted by: -Ramesh Kumar Meena Roll No. the unique levels of Priority Circle begins.S Meena .ICICI PRUDENTIAL PRIORITY CIRCLE CONTROL STRUCTURE The control structure of ICICI Prudential Priority Circle goes like this: COUNTRY HEAD HIMALAYAS AND PENINSULA SALES HEAD ZONAL HEAD TERRITORY MANAGER MANAGER – PRIORITY CLIENTS As a whole till Zonal Head the levels are same in all sectors of ICICI but after that when comes the Territory Manager. R. 36 S/o Mr.

Under the Country Head come 2 regions: 1. Peninsula 2. Himalayas Under those come there respective Sales Head, Zonal Head, Territory Manager, Manager – Priority Clients. Management Team: Country Head (CEO) Himalayas Sales Head Zonal Head Territory Manager : : : : Mrs. Shikha Sharma. Mr. Chander Chalani. Mr. Vikas Seth. Mr. Anuj Pawara. : Miss Divya Singh.

Manager – Priority Clients

The MPC’s are not allowed to sell insurance directly, but they have to go through the advisors under them. The advisors under the MPC’s are the High Network

Individuals which bring business. They are selected by the MPC’s by completing certain formalities. The person has to pay Rs. 1000/- for becoming an Advisor. That person is given an 8 days intensive training in which he is also given product details.

58 Report submitted by: -Ramesh Kumar Meena Roll No. 36 S/o Mr. R.S Meena

After the training is over the person has to give an examination named as IC 33 taken by Insurance Regulatory and Development Authority. Once the person clears his examination a code is generated in his name. The person know becomes an Advisor and is ready to bring business.

59 Report submitted by: -Ramesh Kumar Meena Roll No. 36 S/o Mr. R.S Meena

PORTFOLIO MANAGEMENT
Portfolio Management is used to select a portfolio of new product development projects to achieve the following goals:  Maximize the profitability or value of the portfolio  Provide balance  Support the strategy of the enterprise Portfolio Management is the responsibility of the senior management team of an organization or business unit. This team, which might be called the Product Committee, meets regularly to manage the product pipeline and make decisions about the product portfolio. Often, this is the same group that conducts the stage-gate reviews in the organization. A logical starting point is to create a product strategy markets, customers, products, strategy approach, competitive emphasis, etc. The second step is to understand the budget or resources available to balance the portfolio against. Third, each project must be assessed for profitability (rewards), investment requirements (resources), risks, and other appropriate factors.

60 Report submitted by: -Ramesh Kumar Meena Roll No. 36 S/o Mr. R.S Meena

2006 Rs 12.Rs In Crs Assets held as on Oct 31.072 12.041 Crs Equity Debt Total 58% 42% 100% 6.970 5.107 Linked policy holders 9.935 12. 36 S/o Mr.041 61 Report submitted by: -Ramesh Kumar Meena Roll No.041 Assets held by : Other than Linked policy holders 2.S Meena . R.

Prior to joining ICICI Prudential. Jitendra Arora: AVP-Investments Jitendra Arora is a commerce graduate and has a PGDM from IIM Bangalore. Mumbai. Arun worked with a leading Indian fund house. He has 13 years of experience in the area of fund management. He has been with ICICI Prudential since 2001 in the areas of financial risk management and actuarial. Arun Srinivasan: AVP-Fixed Income Arun Srinivasan has a post graduate degree from MET. He has 9 years of experience in the area of equity analysis. 36 S/o Mr. he has worked in JP Morgan and ICICI Securities and Finance Co. trading and fund management.ICICI Prudential Investments Team Puneet Nanda: Chief Investment Officer Puneet is an engineer with a PGDM from IIM. Prior to joining ICICI Prudential. Prior to ICICI Prudential. Lucknow. Akalp Gupta: Analyst Akalp Gupta is an engineer with a post graduate degree from IIM Kozhikode. He has 3 year of experience as an equity analyst. He has 12 years of experience in the areas of treasury. he has worked with both Indian and foreign financial institutions 62 Report submitted by: -Ramesh Kumar Meena Roll No. He has 9 years of experience in the areas of treasury and trading. Prior to ICICI Prudential. Manish has been with a leading Indian asset management company Lakshmikanth Reddy: VP-Investments Lakshmikanth Reddy is an engineer with a PGDM from IIM Ahmedabad.S Meena . Prior to ICICI Prudential. Lakshmikanth has worked with leading foreign financial institutions. R. Ltd. Fund Management & Research Team Manish Kumar: Head -Equity Manish Kumar is an engineer with a PGDM from IIM Kolkata. He has been with ICICI Prudential since the inception of the company and has overall responsibility for managing the entire investment portfolio of the company.

The MPC scrutinizes the document. If the territory manager is satisfied. The prospect fills the document and brings it to the office.priority clients. After the first meet if the prospect is satisfied he is given a document called ‘market 100’ to explore his contacts which would help him grow his business. post which the advisor is ready to sell insurance and do financial consulting for his clients. The MPC job is to explain the course of action followed to join the business.S Meena . age proof and other documents and is ready to receive the training. The training is conducted by the lead trainer of the branch for about 9 days. R. After clearing the exam the IRDA license is given. The next step is to meet the territory manager who would judge the prospect whether he is capable to do the job or not. 63 Report submitted by: -Ramesh Kumar Meena Roll No. then the person fills other formalities like form. The database was provided to us which had the names of the selected people across Jaipur. following which an exam is held. They were invited to office for the first meet with the manager.NATURE OF JOB AS A TRAINEE At priority circle. 36 S/o Mr. nature of the job included recruitment of the channel members who were further assigned to solicitate insurance.

I also got the questionnaire filled up by the staff of some reputed firms like American Express. I also gave them consultation that they should switch over from the policies of certain companies to ICICI Prudential as it would very beneficial because ICICI Prudential has very flexible products. I myself appreciated there product named as LIFETIME which had a lock in period of 3 years and after that 64 Report submitted by: -Ramesh Kumar Meena Roll No. I took over individual clients from the database and sent them courier consisting of their present investment pattern and the imaginary pattern which I made for him which could be very beneficial for them. I designed the chart of their investments and had a detailed brain storming on their portfolios so that I could give them the best product in terms of saving tax and good returns. and a letter explaining him what he is doing right know and what he should.S Meena . all the brochure related to the product which I advised him. The job was to study their profile and investment plans through this questionnaire and manage their portfolios. I gave them consultation on the insurance products which included switching over from one product to other beneficial product or switching from one fund to other. and Virgin Atlantic. Glaxo Smithkline. R. 36 S/o Mr.

R. The following questionnaire was filled up by the client’s form which I got the information about their investment. 65 Report submitted by: -Ramesh Kumar Meena Roll No.S Meena . 36 S/o Mr.you can withdraw all your without interrupting your sum assured.

S Meena . 36 Report submitted by: -Ramesh Kumar Meena S/o Mr. How long have you been working with the specified company? What’s your Date of Birth? Are you Married: 66 If yes where is your spouse working Your annual salary 2 – 3 lacs Please help me in finding the right category: Roll No. R.

S Meena .How long have you been working with the specified company? What’s your Date of Birth? Are you Married: If yes where is your spouse working Please help me in finding the right category: Your annual salary 2 – 3 lacs 3 – 4 lacs 4 lacs and above Where have you invested your money to save tax: PPF NSC BONDS INSURANCE MUTUAL FUNDS Name: _______________________ ANNEXURE 1. 36 S/o Mr. Visiting Card 67 Report submitted by: -Ramesh Kumar Meena Roll No. R.

R. Prudential PLC Interim Report 2006 4. 36 S/o Mr. Divya Singh (MPC) her visiting card is attached below: 68 Report submitted by: -Ramesh Kumar Meena Roll No.2. Product Brochures enclosed 3.S Meena . ICICI Prudential Presentations I worked under Ms.

com 3. www.S Meena .BIBLIOGRAPHY 1.com 2. 36 S/o Mr. 69 Report submitted by: -Ramesh Kumar Meena Roll No. ICICI Prudential Product Brochures.indiainfoline. R.iciciprulife. 4. ICICI Prudential Presentations. www.

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