SUMMER TRAINING

PROJECT REPORT
ON
ANALYSIS OF CUSTOMER AWARENESS ABOUT ICICI
PRUDENTIAL LIFE INSURANCE

SUBMITTED TO:

RAJASTHAN TECHNICAL UNIVERSITY

IN PARTIAL FULFILMENT OF REQUIREMENT FOR

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

VIPIN KOCHAR
MBA III SEM
(2007-2009)

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 ACKNOWLEDGEMENT

Achieving a milestone for any person is extremely difficult. However, there are motivations
which come across the curvaceous path like twinkling stars in the sky and make our task much
easier. It becomes my humble and foremost duty to acknowledge all of them.

I am deeply indebted to and express my sincere appreciation and gratitude to Mr. Lokesh
Jain of ICICI Prudential Life Insurance Co. Ltd. for providing his valuable guidance and
encouragement throughout the summer training for keeping my morale up and making it possible
to complete and submit this project of mine in time. In addition to allowing me to study the
insurance sector and give the financial advice to the people for investment in ICICI Pru. he
provided me many indepth detail enlightened me in the preparation of the study report.

It would be unfair on my part if I do not thank my heartfull thanks for their unstinting help
without which this work could never have been accomplished. They made me realize the
importance of a team, team work and also the leadership skills. I am grateful to all of them for
standing with me and supporting me in this project.

Words cannot adequately express my sense of gratitude and indebtedness to Global Institute
of Technology for giving me an opportunity to get the knowledge about insurance sector during
summer training.

VIPIN KOCHAR
MBA ( III-SEM )

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 EXECUTIVE SUMMARY

The only operation that drives the basic survival of any industry or organization is sales.
There is not a single business or job that exists on this earth which does not have to sell a product
or service. The efficiency of this process marks the success of the firm, which optimally utilizes
this function in its business processes.

I have done my summer training in the same sector with the No.1 Private Life Insurance
Company ICICI Life Prudent Insurance Company. It was listed in Insurance Regulatory
Development Authority (IRDA) in December 2000. ICICI Life Prudent works as a career agency
which gives part times and full time job to people. It offers a wide spectrum of services & product.

As my work was focused in that area only to meet with the people and understanding the
needs of the customer, understanding the concepts of insurance, how it sells, what are the benefits
of investment in insurance sector and how strongly we present it in front of the customer as per the
need analysis of the customer. I also tried to explore the new ideas to generate sales in the new
horizon of part time and full time job opportunity.

My branch office of ICICI Life Prudent Insurance Company, where I did my summer
internship is situated at Jawahar Nagar, Sri Ganga Nagar (Rajasthan) 335001.

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 PREFACE

Practical training forms an integral component of any professional course. The theoretical
studies provide pools of knowledge to a manager whereas the practical applications make him agile
and component. If theoretical knowledge teaches him the principles and policies the practical
exposes tells him how to use these principles.

In the insurance Industry, there are two channel of distribution – Alternate Distribution and
Tide Agency.

My project is the customer awareness about the ICICI Prudential Life Insurance. It means
that how many customers are interested in taking ICICI policies and what perception they have
about it.

In this project, I have to make some sort of cold calling, get the appointment with them,
convince them and tell them about the benefits of ICICI Pru. products. The queries, which are
asked by the client, should be solved by the discussion with the company guide.

ICICI Prudential Life Insurance is concentrating on the agency recruitment. It has around 2
lac force of advisors and it is planning to extend it 5 lac in the next coming years. With the
feedback that we gathered from customers about their investment behavior in the insurance sector
especially in ICICI Pru.we tried to provide some fruitful that would necessarily of utmost important
for the organization.

We hope that the suggestion provide by us would prove to be useful source of information
for the ICICI Prudential and would facilitate its growth.

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 CONTENTS

1. INTRODUCTION TO INSURANCE
2. INSURANCE IN INDIA
3. ICICI PRUDENTIAL LIFE INSURANCE
4. ABOUT THE PROMOTERS
5. VISION AND MISSION
6. OUR VALUES
7. SWOT ANALYSIS OF ICICI PRUDENTIAL
8. OBJECTIVE OF STUDY
9. RECRUITMENT PROCESS OF ICICI PRUDENTIAL
10. METHODOLOGY
11. FINDINGS AND ANALYSIS
12. DATA ANALYSIS
13. FUTURE POSSIBILITIES
14. LIMITATIONS OF THE STUDY
15. RECOMMENDATIONS
16. CONCLUSION
17. BIBILIOGRAPHY

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 INTRODUCTION TO INSURANCE

What is Life Insurance?

Life insurance is a guarantee that your family will receive financial support, even in your
absence. Put simply, life insurance provides your family with a sum of money should something
happen to you. It thus permanently protects your family from financial crises. In addition to serving
as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you
to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life
insurance also triples up as an ideal tax-saving scheme. To know more, read the Key Benefits of
Life Insurance Key Benefits of Life Insurance Life insurance, especially tailored to meet financial
needs.

All the human beings on the earth know that they will die in future but they don`t want to die.
They want to fulfill all the dreams, which they had thought, but there are times when all these
dreams can`t come true.

Death is inevitable and yet we live our lives obvious to reality that may strike-when we
have no idea. And when it happens, all the dreams come crashing down.

In the words of D S Hansell “Insurance may be defined as a social device providing

financial compensation for the effects of misfortune, the payment being made from the
accumulated contributions of all the parties participating in the scheme”

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 INSURANCE IN INDIA

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

A brief history of the Insurance sector:

The business of life insurance in India in its existing from started in India in the year1818
with the establishment of the Oriental Life Insurance Company in Calcutta.

DEFINITION OF INSURANCE
Insurance is a contractual type financial intermediary that offers the public protection
against the financial costs associated with the loss of li9fe, health, or property in exchange for
premiums.

An agreement that guarantees the payment of a stated amount of monetary benefits upon the
death of the insured.

Risk insurance intended as protection against the financial consequences of the death of the
insured person, which takes the form of payment of previously agreed lump sum or pension to a
beneficiary, if the insured person dies during the term of insurance. In the case of pure life
insurance, without any endowment insurance component, no payments are due if the insured person
survives the term of insurance.

Insurance is that which provides protection against the economics loss caused by the death
of the person insured.

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Need for Life Insurance?

Today, there is no shortage of investment options for a person to choose from. Modern day
investments include gold, property, fixed income instruments, mutual funds and of course, life
insurance.Life insurance is a unique investment that helps you to meet your dual needs - saving for
life's important goals, and protecting your assets.

Asset Protection
From an investor's point of view, an investment can play two roles - asset appreciation or
asset protection. While most financial instruments have the underlying benefit of asset appreciation,
life insurance is unique in that it gives the customer the reassurance of asset protection, along with
a strong element of asset appreciation. The core benefit of life insurance is that the financial
interests of one’s family remain protected from circumstances such as loss of income due to critical
illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt
wealth creation proposition.

Goal based savings

Each of us has some goals in life for which we need to save. For a young, newly married
couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning
for the education or marriage of their children. As one grows older, planning for one's retirement
will begin take precedence. Clearly, as your life stage and therefore your financial goals change, the
instrument in which you invest should offer corresponding benefits pertinent to the new life stage.
Life insurance is the only investment option that offers specific products tailor-made for different
life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer
at that particular life stage, and hence ensures that the financial goals of that life stage are met.

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Human Life Value

Beyond all doubt, your life is invaluable. Yet, there is a certain worth that can be
attributed to the financial support you offer your parents, spouse or children. This worth is
referred to as Human Life Value (HLV). In the future, if your family does not have the
protective blanket of your presence, they will no longer be able to enjoy the benefits of the
income you earned. Put simply, Human Life Value is the present value of your future
earnings.

As a thumb rule, if you are 30 years of age, you should insure yourself for an amount
approximately 8 times your annual income. At 35, your investment should be close to 6
times your income. Of course, the exact amount of your investment should be determined
by the number of people who depend on you, your existing investments and your life stage.
For example, if you are 30 years of age and have two children and parents to provide for,
the amount you invest should be reflective of your requirements

Life Stage Profiler

All through your life, several significant events the birth of your child, moving to a
larger home, his or her education and wedding, buying a new car, retiring from work will
occur at various stages and demand your financial commitment. If you plan in advance for
these events, you will quite naturally be prepared when they occur. Life insurance is an
effective tool that assists you to plan for your future such that you are financially equipped
to meet all your goals.

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Which important goals should you plan for in advance?

 Your family's protection - so that your loved ones are secure should an unfortunate
event happen to you. Life insurance can guarantee that your family receives a lump sum that
safely tides them over any financial crises that might occur in your absence.

 Child's education: As parent, your primary responsibility is to guarantee your children's

future. Our Education Insurance plans ensure your child receives money at key stages of his
or her education even in your absence.

 Savings: Savings plans allow you to steadily save towards a pre-decided goal in a secure
manner. These plans provide you with a host of benefits. You can choose the premium, the
underlying fund in which you want to invest your money, the ratio between protection and
investment as per your requirements.

 Retirement: Retirement plans help you secure guaranteed income for your retired life.
During the Accumulation phase, you systematically save while you are working. When you
retire, the Payout stage of the plan begins. You then purchase an annuity, which will serve
as a steady stream of income, for the rest of your life.

 Health: An integral part for financial planning is protecting oneself against any medical
emergencies as well. Hence, a very prudent decision would be to choose a combination of
plans that look after your finances and offer you a protective health cover to ensure your
financial planning is in track despite any major illnesses.

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 ICICI Prudential Life Insurance

The company ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank, a premier financial powerhouse, and Prudential Plc, a leading international financial services
group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance company to begin operation in December 2000 after receiving approval from Insurance
Regulatory Authority of India (IRDA). ICICI Prudential’s equity base stands at Rs. 2100 corer with
ICICI Bank and Prudential plc holding 74% and 26% stake respectively.

For the past six years, ICICI Prudential has retained its position as the NO 1 Private life
insurer in the country, with a wide range of flexible product that meant the needs of the Indian
customer at every step in life. ICICI Prudential is also the only private life insurer in India to
receive a National Insurer Financial Strength rating of AAA (ind) from Fitch rating. The AAA
rating is the highest credit rating and is a clear assurance of ICICI Prudential’s ability to meet its
obligation to customers at the time of maturity or claims.

For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private
Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'.
As it grows its distribution, product range and customer base, it continues to tirelessly uphold our
commitment to deliver world-class financial solutions to customers all over India.

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 ABOUT THE PROMOTERS

ICICI Bank
ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with
over 50 years presence in financial services and with assets of over Rs 3446.58 bn (USD 79 billion)
as on March 31st 2007. The 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 in the areas of investment banking, life and non-life insurance, private equity and asset
management. ICICI Bank is a leading player in the retail banking market and services its large
customer base through a network of over 950 branches and extension counters, 3300 ATMs, call
centers and internet banking (www.icicibank.com) to ensure that customers have access to its
services at all times.

Prudential Plc.
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe,
the US and Asia, provides retail financial services products and services to more than 20 million
customers, policyholder and unit holders and manages over £251 billion of funds worldwide (as of
31 December 2006). In Asia, Prudential is the leading European life insurance company with life
operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand, and Vietnam. Prudential is the second largest retail fund manager for
Asian sourced assets ex-Japan as at June 2006. Its fund management business has expanded into a
total of ten markets: China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan,
Vietnam and United Arab Emirates.

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 VISION AND MISSION

Vision
To be the dominant life, pension and life player built on world class
people and services.

This they hope to achieve through their commitment to excellence, focus on service, speed
and innovation, and leveraging our technological expertise.The success of the organisation will be
founded on its strong focus on values and clarity of purpose. These include:

 Understanding the needs of customers and offering them superior products and service
 Building long lasting relationships with their partners
 Providing an enabling environment to foster growth and learning for their employees

They believe that they can play a significant role in redefining and reshaping the sector.
Given the quality of their parentage and the commitment of their team, they feel that there will be
no limits to their growth. Sponsors ICICI Ltd was established in 1955 by the World Bank, the
Government of India and the Indian Industry, to promote industrial development of India by
providing project and corporate finance to Indian industry. Since inception, ICICI has grown from
a development bank to a financial conglomerate and has become one of the largest public financial
institutions in India. ICICI has financed all major sectors of the economy, covering 6,848
companies and 16,851 projects. In the fiscal year 2000-2001, ICICI had disbursed a total of Rs
319.65 billion.

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 OUR VALUES

Every member of the ICICI Prudential team is committed to 5 core values: Integrity,
Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do, and
have become the keystones of our success.

Customer First Own the customer and deliver the value.

Boundary less Never say its not my Job.
Integrity Be honest and fair in what you say and do.
Passion Boundless energy and enthusiasm.
Ownership If it is to be, it is upto me.

Board of Directors:

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

Mr. K.V. Kamath, Chairman

Mr. Barry Stowe
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. HT Phong
Mr. M.P. Modi
Mr. R Narayanan
Mr. Keki Dadiseth
Ms. Shikha Sharma, Managing Director
Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director

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

Ms. Shikha Sharma, Managing Director and CEO

Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Ms. Anita Pai, EVP – Customer Service & Technology
Mr. Azim Mithani, Chief Actuary
Mr. Puneet Nanda, Chief Investments Officer
Mr. Binayak Dutta, Chief – Sales and distribution

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 SWOT ANALYSIS OF ICICI PRUDENTIAL

STRENGTHS WEAKNESS

 Strong Tie Up  Low Customer Awareness

 Brand Equity  Less Promotion
 Strong Network  Untouched Rural Population
 Huge Customer Database
 Strong Financial Base

OPPURTUNITIES THREATS

 Competitors.
 Large uninsured Population
 Customer’s belief in LIC
 Network Building
 Faster Turnover of Employees
 Targeting the Rural Segment

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 Distribution and Channel Development

ICICI Prudential has one of the largest distribution networks amongst private life insurers in
India. As of January 31, 2007 the company has over 580 offices across the country and over
234000 advisors.

The company has over 22 bancassurnace partners, having tie-ups with ICICI Bank, Federal
Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank,
Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank and 9 Bank of
India sponsored Regional Rural Banks (RRBs). It has also tied up with NGOs MFIs and corporate
for the distribution of rural policies

Our Core Competency

The ICICI Prudential edge comes from our commitment to our customers, in all that we do -
be it product development, distribution, the sales process or servicing. Here's a peek into what
makes us leaders.

1) Our products have been developed after a clear and thorough understanding of customers'
needs. It is this research that helps us develop Education plans that offer the ideal way to
truly guarantee your child's education, Retirement solutions that are a hedge against
inflation and yet promise a fixed income after you retire, or Health insurance that arms you
with the funds you might need to recover from a dreaded disease.

2) Having the right products is the first step, but it's equally important to ensure that our
customers can access them easily and quickly. To this end, ICICI Prudential has an advisor
base across the length and breadth of the country, and also partners with leading banks,
corporate agents and brokers to distribute our products

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 3) Robust risk management and underwriting practices form the core of our business. With
clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth
and hassle-free claims process.

4) Entrusted with helping our customers meet their long-term goals, we adopt an investment
philosophy that aims to achieve risk adjusted returns over the long-term.

5) Last but definitely not the least, our 25,000 plus strong team is given the opportunity to
learn and grow, every day in a multitude of ways. We believe this keeps them engaged and
enthusiastic, so that they can deliver on our promise to cover you, at every step in life.

Competitor of ICICI Prudent Life Insurance

1) Life Insurance Corporation Of India

2) Bajaj Allianz Life Insurance Company Limited

3) Birla Sun Life Insurance Company Limited

4) HDFC Standard Life Insurance Company Limited

5) ING Vysya Life Insurance Company Private Limited

6) Max New York Life Insurance Company Limited233a

7) Met Life India Insurance Company Private Limited

8) Kotak Mahindra Old Mutual Life Insurance Limited

9) SBI Life Insurance Company Limited

10) Tata AIG Life Insurance Company Limited

11) Aviva Life Insurance Company India Private Limited

12) Reliance Life Insurance Company India Private Limited

13) Sahara India Life Insurance Company Limited

14) Shriram Life Insurance Company Limited

15) Bharti AXA Life Insurance Company Limited

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Insurance Plans - At a glance

Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A brief
detail of both segments ULIPs have gained high acceptance due to attractive features they offer.
These include:

Flexibility

 Flexibility to choose Sum Assured.

 Flexibility to choose premium amount.
 Option to change level of Premium /Sum Assured even after the plan has started.
 Flexibility to change asset allocation by switching between funds

Transparency

 Charges in the plan & net amount invested are known to the customer
 Convenience of tracking one’s investment performance on a daily basis.

Liquidity

 Option to withdraw money after few years (comfort required in case of exigency)
 Low minimum tenure.
 Partial / Systematic withdrawal allowed

Fund Options

 A choice of funds (ranging from equity, debt, cash or a combination)

 Option to choose your fund mix based on desired asset allocation

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Traditional Plans

These are the oldest types of plans available. These plans cater to customers with a low risk
appetite. Some of the common features of traditional plans are:

Steady Investment

 Major chunk of investible funds are in debt instruments

 Steady and almost assured returns over the long term

Features

 Death benefit is Sum Assured + guaranteed & vested bonus

 Helps in asset creation as they are for a long tenure
 Premium to Sum Assured ratios are fixed for each plan and age.

Our Products and Services

Products

Insurance solution for individual ICICI Prudential Life Insurance offers a rage of innovative
customer-centric products that meet the needs of customer at every life stages. Its product s can be
enhanced with up to 5 riders, to create a customized solution for each policyholder.

Saving Solutions

 Secure Plus: is a transparent and feature – packed savings plan that offers 3 levels of
protection.
 Cash Plus : is a transparent , feature- packed savings plan that offers 3 level of
protection along with adequate returns.

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  Saves ‘Protect: is a traditional endowment saving plan that offers life protection along
with adequate returns.
 Cash Bank: is an anticipated endowment policy ideal for meeting milestone expenses
like a child’s marriage, expenses for a Childs higher education of purchase of an asset.
 Life Time & Life TimeII: offer customers his flexibility and control to customize the
policy to meet the changing needs at different life stages. Each offer 4 fund 4 fund
option? Preserver, Preserver Protector, Balancer and maximiser.
 Golden Years: is a limited premium paying retirement solution that offer tax benefits up
to Rs 100000 u/s 80C with Flexibility in both the accumulation and payout stages.

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

Health Assure: Is a regular premium plan which provides long term cover against 6 critical
illnesses by providing by policyholder with financial assistance, irrespective of the actual
medical expensed.

Health assure Plan : is regular premium plan which provides long term cover against 6
illnesses by providing financial assistance , irrespective of actual medical expenses ,as
well as an equivalent life insurance cover.

Crisis Cover

Diabetes Care

Hospital care

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Group Insurance Solution

ICICI Prudential also offers Group insurance solutions for companies seeking to enhance benefits
to their employees.

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

 Life Link II: is a single premium market linked Insurance plan which combines life
insurance cover with the opportunity to stay invested in the stock market.

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

 Invest Shield: life is a marked linked plan that provides capital grantee on the invested
premium and declared bonus interest along with flexible liquidity options.

 Invest Shield Gold: is a marked linked plan that provides capital grantee on the
invested premium and declared bonus interest along with limited premium payment
terms.

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Protection Solutions

Life Guard: is a protection plan, which offers life cover at very low cost. It is available in three
options? Level term assurance, level term assurance with return of premium and single premium.

 Home Assure: is a mortgage reducing term assurance plan designed specially to the
help the customers cover their home loans in a simple and cost-effective manner.

Child Plans

 Smart Kid education Plans: provides guaranteed educational benefits to a child along
with life insurance cover for the parent who purchase the policy. The policy is designed
to provide money at important milestones in the child’s life. Smart kid plans are also
available in unit-link form? Both single premium and regular premium.
 Smart Kid Unit Linked Regular Premium
 Smart Kid Unit Linked Single Premium

Retirement Solutions

 Forever Life: is a retirement product targeted at individuals in their thirties.

 Secure Plus Pension: is a flexible pension plan that allows one to select between three
levels of cover.

Market-Linked Products

 Life Time Super Pension : is a regular premium market-linked pension plan.

 Life Time super: is a regular premium market linked plan.
 Life time Plus
 Smart Kid New Unit Linked Regular Premium

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  Smart Kid New Unit Linked Single Premium
 Life Stage Regular Premium
 Invest Shield Pension :is a regular premium pension plan with a capital guarantee on
the ingestible premium and declared bonuses
 ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible deigned
contribution superannuation scheme to provide a retirement kitty for each member of
the group. Employees have the option of choosing from various annuity options or
opting for a partial commutation of the annuity at the time of retirement.
 ICIC Pru Group Term Plan: ICICI Pru’s flexible group term solution helps to
provide affordable cover to members of a group. The cover could be uniform or based
on designation/rank or a multiple of salary. The benefit under the policy is to paid to the
beneficiary nominated by the member on the his/her death.

Flexible Rider Options

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

 Accident & disability benefit: If death occurs as the result of an accident during the
term of policy, the beneficiary receives an additional amount equal to the rider sum
assured under the policy. If the death occurs while traveling in an authorized mass
transport vehicle, the beneficiary will be entitled to twice the sum assured as additional
benefit.
 Accident Benefit: This rider option pays the sum assured under the rider on the death
due to accident.
 Critical Illness Benefit: protects the insured against financial loss in the event of 9
specified critical illness prior of death.
 Income Benefit: this rider pays a 10% of the sum assured to the nominees every year,
till maturity, in the event of the death of the life assured. It is available on the Smart
Kid, Secure Plus and Cash Plus.

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 Waiver of Premium: in case of total and permanent disability due to an accident, the
premiums are waived till maturity. This rider is available with Secure Plus and Cash
Plus.

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 OBJECTIVE OF STUDY

Summer Training Program

Is an opportunity to satiate your curiosity. There you are expected to actively participate and
take ownership for the internship, and to experience the professional environment, thus making the
internship meaningful to the company one works with and to oneself in one’s career prospects.

In 45 days of Summer Training Program I understand company’s products, learn how to

work under organizational pressure, also increase my financial and marketing skills and how to
manage time.

Main Objective :

1. To Understand Investment Needs and Options.

2. To Provoke People to Invest In Insurance Sector (Especially for ICICI Prudential

Life Insurance Company).

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My Role

My role in ICICI Prudential Life Insurance is work as a project trainee for the 7 weeks. In that I
have to do:

1) Meet with the people to make them aware of insurance and tax saving.

2) Work as a financial consultant .

Who are targeted clients?

 Young professionals

 Businessmen

 Students

 Retired persons

 Housewives

 Brokers

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Eligibility Criteria to take IRDA exam:

 For rural 10th pass

 For urban 12th pass

Apart from this there are 5 conditions, out of them a person has to satisfy 3 conditions to eligible to
give IRDA exam. These conditions are as follows

 Age above 25 years

 Married

 Graduate

 Living in same city for more than 5 years

 Household income above 2 lakhs

Process to become an advisor:

 Filled up a form and submit it with fee of Rs. 1000

 Clear IRDA exam

 After exam advisor get code with in 10 days

 Get 100 hours product training.

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RECRUITMENT PROCESS OF ICICI PRUDENTIAL

Finding prospects

Convincing the person

Filling the recruitment form

Taking registration fee

18 days IRDA classes Training session

IRDA exam

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 Growth Path for Advisors

National Sales Manager

Regional Sales Manager

Area Sales Manager

Partner Sales Manager

Senior Agency Manager Assistant Sales Manager

Agency Manager

Pinnacle Unit Manager Trainer

Advisor

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 METHODOLOGY

1) How to sale career agency?

To sell career agency first I need to contact to my clients. For that first I have to have proper
data base of contact with me. I got a book from office named ‘My Market Hundred’. In this
book first I filled my data base which I got from various sources. Some of the sources are as
follow:

 Personal references: I collected information from our relatives, friends and

friends to friends about the potential clients.
 Directory: It is also one of the good sources of data collection. I collected numbers
of CA’s, brokers from the directory.
 Other sources: there are so many other sources from where we collected data like
internet sites, yellow pages, mobile connection shops, newspapers etc.
 Clients: Apart from above sources I collected data from my clients. Whenever I met
to client I always ask for two references whether he/she is agreed to purchase agency
or not.

After getting data base I did contact to my targeted clients. For that I have to go through
from a process:

• Tele calling

• Direct marketing

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1. Tele calling: When I called up that person I have to take care of the limitations of
company as well as I was supposed to take care of my client time. Before calling to client I
had to make a telephone script which have certain steps, which are following:

 On call first I greet to my client and confirm that a person with whom I am talking is
my client or not.
 Then I give my introduction to that person and tell him/her about the company and
take permission to speak about product.
 After getting permission, first I create interest by asking question and greet his/her
 Then I tell them the purpose of the call. I tell them about the career agency and also
tell them what the benefits are; they will get to buy this agency.
 After telling it if my client is interested I get an appointment and confirm the time
and place of the meeting.
 In last I appreciate that person and I close my call.

2. Direct marketing: After getting appointment I meet that person and I tell him/her about
company & agency in details and try to convince and clear his/her doubt. In that meeting I
tell certain things to my client which create interest in his/her about the job. These things are
as follows:

a) Why they choose insurance industry as a career?

Insurance industry is the only industry which is growing in high rate. In present it’s growing
at the rate of 140%. Insurance industry is booming industry because right now insurance
field has covered only 8-9% of total population of india means still more than 90%
population yet to cover that means insurance sector has huge market to cover and if a person
choose it to make career that means he/she has an opportunity to grow.

Another reason for choosing insurance industry is its major player. If you will see top 10
indian businessmen they all have their different business but only one business in common
among them that is INSURANCE AGENCY. They all are dealing with insurance business.

32
For example:

1. Bajaj Allianz Life Insurance Company Limited

2. Birla Sun Life Insurance Company Limited

3. HDFC Standard Life Insurance Company Limited

4. Kotak Mahindra Old Mutual Life Insurance Limited

5. SBI Life Insurance Company Limited

6. Tata AIG Life Insurance Company Limited

7. Aviva Life Insurance Company India Private Limited

8. Reliance Life Insurance Company India Private Limited

9. Sahara India Life Insurance Company Limited

10. Bharti AXA Life Insurance Company Limited

There are many other reasons which make insurance industry booming:
 Insurance is the best possible way for family protection.

 The terms of life are hard. The terms of insurance are easy.

 There are tax benefits, both in income tax & capital gains.

 Insurance enhances the existing standards living.

 Insurance help people lice financially solvent lives.

b) Why they choose ICICI Prudent?

ICICI Prudent Life Insurance is the No. 1 company in private sector. LIC is on the top
among all players after it ICICI Prudent is on 2nd number. LIC has 67% business of total
market of insurance industry and private sector has remaining 33% business. Out of this
33% business, ICICI Prudent has 30% business, rest 15 players have only 70% business and

33
 it makes it number 1 private sector company. ICICI Prudent has a vision to lead insurance
business till 2010.
ICICI Prudent has a various products for its customer rather its only company in the market
which insured diabetic patients.

ICICI Prudent is only company which gives an opportunity to its advisor to promote on unit
manager. If a advisor works efficiently and achieves target then company promote him/her
and give on roll job.

c) What are the benefits they will get to join ICICI?

ICICI providing so many benefits to its advisors rather its only company in the market
which giving many benefits for one thing means if you achieve your target, you will not get
only one benefits but you will get other benefits to grow. Benefits which company
providing to its advisor are as follows:
 Up to 35% commission on premium.
 ‘ZERO’ balance account in ICICI bank
 MDRT (Million dollar round table) eligibility
 ICICI Prudent debut star club for new comers
 Ongoing contests
 Sales conventions in exotic locales
 Grand perks program
 Off roll to on roll job with the package of 1.75 lac
 Membership of president, star international, star national club.
 Quick start, sprint, racer contest
 Gifts, movie tickets, vouchers, etc

2) Work as a financial consultant:

• I was a financial consultant in ICICI Prudent. In that I had to collect data of 30-40 people
regarding their investment and report it to Mr. Lokesh Jain. I learnt so many things to work

34
as a financial consultant. I got such a great exposure to work in ICICI. I had much responsibility
and too much stressed on this post because I had to guide the people for making their investments
in insurance policy especially in ICICI Pru’s policies.

35
 FINDINGS AND ANALYSIS

There were about 12 questions in the questionnaire on the basis of which the findings were
done and the analysis was made. The responses to the questions in the questionnaire are
presented in the form of statistical tools such as pie charts and bar charts. There were 40
people being interviewed from different income groups and age groups.

1. Tell us about your personal details:

Name :
Date of Birth :
Occupation :
Age :
Address :
Contact no. :
Family Details :

2. Top priorities of your investment?

Health Child Education Retirement
Protection Wealth

3. What portion of your savings you invest?

4. List your five prominent investment objectives?

5. How and where do you invest and currently invested in?

6. Do you have a life insurance policy? If yes, then of which company\companies?

Yes
No

36
7. Do you see insurance policies as insurance or a security option?
Insurance .
Security option.

8. Which of following are your criteria/criterion to select a particular insurance company and a
scheme?
Security Time span
Market name Return
All of the above

9. Rank the following life insurance companies in the decreasing order of preference :
Max New York Life Insurance
HDFC Standard Life Insurance
ICICI Prudential
Birla Sun Life
TATA AIG
OM Kotak
Aviva

10. Do you think that private life insurance companies are as safe as LIC for taking a policy?
Yes
No

11. Would you like to invest in ICICI Pru. Life Insurance Company? Why or why not?
Yes
No

12. ICICI Pru. Life Insurance Company is quite a famous company because:
Of its customers service
Of its policies
Of parent companies
Of its marketing and advertising strategies

37
 All of the above.

DATA ANALYSIS

The prime motives of investment by the investors as derived by the research

are:

• Relaxation in tax: generally all people invest to reap the tax benefits under section 88.

• Life insurance cover: nothing is eternal and life is unexpected so everyone wants to save
for future and left some amount for his or her beloved ones after his or her sudden demise.

• Fulfillment of future expenses (children education, higher studies, their marriage etc):
in the whole life of an individual there are a number of expenses but the earning is not ever
lasting. So to meet the future requirements as children education, marriage etc he’ll have to
secure his fund today because what is the present value of money is not going to retain in
the future.

• Retirement planning: retirement is the phase which can never be excluded from the life, so
better if a person plan it earlier. If the current expenses of a person are Rs 30,000 per month
then after 20 years he’ll require Rs 80,000 to maintain the same life style. So a person
should invest today in those avenues which will meet his future needs as well as secure his
retirement, so that at that time he can enjoy his life without tension.

• Other family obligations; it includes daily expenses, occasional expenses like on festivals
etc, visits and tours etc.

• Medical emergencies: "health is wealth” so a person plans his medical expenses earlier so
that in life these sudden expenses do not create hurdle. Also some time the medical
emergencies are so sudden and big that arrangement of funds at that point of time can
become a nuisance for the person.

38
• To make money by money: for some people it’s all about money and they are crazy to
increase their wealth so they take risk and invest in the field where returns as well as risk
are maximum.

39
Factors on which investment depends:

Return: The investor is very keen about his returns. So he’ll select only those sectors for
investment where he sees growth opportunities and good returns on his investment with minimum
risk.

Inflation: It is the second most important factor which a investor look up to before investment.
Because it not only reduces the value of your money but also sometimes prove your investment
nothing but vague.

It can become clearer from the below illustration:

Impact of inflation on monthly expenses (inflation rate 5%)
1. If the monthly expenses today are Rs 30,000 then after
• 5 years it will be Rs 38,288.
• 15 years it will be Rs 62,368.
• 20 years it will be Rs 79, 599.

2. Impact of inflation on money (inflation rate 5%)

Value of Rs 1 lakh after:
• 5 years will be Rs 78,355
• 15 years will be Rs 48,102
• 20 years will be Rs 37,689

Risk: it is the most important factor because according to the class of investors, risk averse goes for
minimum risk portfolio and risk takers go for maximum risk portfolios. The risk neutrals stay
between the two and don’t take risk at all.

Service: The investors also analyze the customer service provided by the concerned company. If its
reputation and goodwill is strong in the industry then he’ll not think a lot but invest in that
company. The services provided by the company, their utilities and timeliness play key role in
attracting the investor.

40
Partner: the company in which the investor is going to invest also matters for him. This is because
on the basis of its goodwill, its earlier returns, growth, reputation, future prospects and customer
orientation the investor will decide whether to invest, his hard earned money in that company or
not.

Investment class categorization:

According to the survey of a sample of 40 people I found that 31.67% people were from Govt.
service class, 36.66% people were from business class and rest 31.67% constitutes professionals.

Table I

Category Govt. Service Business Professionals

%age of People 31.67 36.66 31.67

Chart: I
%age of People

Govt. Service
Business
Professionals

41
TOP PRIORITIES

TABLE – II
Priority % age
Health 45%
Protection 20%
Child Education 27%
Wealth 3%
Retirement 5%

CHART-II

50%

45%

40% 42
% age

Health
Protection
Child Education
Wealth
Retirement

43
PERCENTAGE OF PRIORITY AND AGE GROUP

TABLE - III
Age Group % age
27-60 45%
18-60 20%
28-60 27%
43-60 3%
45-60 5%

CHART-III

% age
50%

45%

40%

35%

30%

25% % age

20%

15%

10%

5%

0%
27-60 18-60 28-60 43-60 45-60

44
 % age

27-60
18-60
28-60
43-60
45-60

Do you have a life insurance policy? If yes, then of which company\companies?

CHART-IV

PEOPLE HAVING INSURANCE

POLICIES

26%

Yes
No
74%

45
CHART-V

% OF INSURED POPULATION IN VARIOUS

COMPANIES
ICICI
6% 6% LIC
6% 28%
3%
Max Newyork
HDFC
11%
TATA AIG
8% Birla sun life
32% AVIVA
Metlife

Out of the 60 insurable people interviewed nearly 74% people have taken insurance policy. Out of
this population being interviewed nearly 32% had LIC policy, 28 % had ICICI Prudential, followed
by HDFC (11 %), Max New York Life (8 %) , TATA AIG (3%), Birla Sun Life (6%), Aviva and
Metlife having 6% shares each in the interviewed population.

46
Do you see insurance policies as an insurance alternative or a security option?

Chart V

PURPOSE OF INSURANCE

32%
Insurance
Security Option
68%

Out of the 60 people interviewed 32 % people term/see insurance policy as a security option while
only 68 % see it as an investment option.

47
Rank the life insurance companies in the order of preference:

Chart: VI

FIRST PREFERENCE OF PEOPLE AMONG PVT. LIFE INSURANCE

COMPANIES

10%
ICICI Prudential
47% Max New york
HDFC
30%
AVIVA

13%

Out of 60 people interviewed, 47% had ICICI Prudential as their first preference for a pvt. Life
Insurance Company followed by HDFC Standard Life having 30% preference followed by Max
New York Life having 13 % market share and lastly Aviva Life insurance having 10% market
share.

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Do you think that private life insurance companies are as safe as LIC for taking
a policy?

Chart: VII

PERCEPTION OF PEOPLE ABOUT SAFETYNESS : LIC Vs

PVT. LIFE INSURANCE COMPANIES

Yes
38% Yes
No No
62%

Out of 60 people being interviewed, 62 % of people do not find private life insurance companies to
be safe for buying a life insurance policy whereas 38 % people find them safe for buying a life
insurance policy from a private life insurance company.

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ICICI Prudential Life Insurance Company is quite a famous company because:

Chart: VIII

FAMOUS REASONS OF ICICI Prudential

16%
40% POLICIES

20% PARENT COMPANIES

MKTG. AND ADV. STRATEGIES

All OF THE ABOVE

24%

Out of 60 people interviewed, 16% people perceive policies of ICICI Prudential Life Insurance
Company which make it a famous company while 20% think it is due to the parent companies,
24% take it as marketing and advertising strategies which appeal to the mass population while 40 %
think it is all due to the above mentioned reasons that ICICI Prudential Life Insurance Company is
a famous company.

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 Market Share of ICICI Prudential Life Insurance Company in Life Insurance
Companies In India

Table: IV

COMPANIES % OF SHARE
1. ICICI PRU 36.2
2. HDFC STANDARD LIFE 10.1
3. BIRLA SUNLIFE 13.8
4. TATA AIG 5
5. ALLIANZ BAJAJ 10.1
6. MAX NEW YORK LIFE 6.2
7. OM KOTAK 5.7
8. AVIVA 3.7
9. ING VYASA 3.5
10.STATE BANK OF INDIA LIFE 4.6
11. METLIFE 1.1

Chart: XI

1
ICICI PRU. LIFE INSURANCE SHARE OF
2
THE PIE
3
4
5
6
7
8
9
10
11
TOTAL MARKET SIZE: INR 205 BILLION

AWARENESS AND MARKETING

51
Phase III

For the awareness program we done meetings, seminars, gave presentations, ad campaigns
and pamphlets distribution.

Investment in Insurance sector

Agreed, insurance may not be the best place to invest your hard-earned money. But there
are sufficient reasons for one to believe that it can be a highly lucrative avenue to facilitate savings.
People often talk about yield on investment and tend to compare their values with those available
on various insurance schemes. This is particularly typical within the Indian sub-continent where
one conveniently forgets the element of risk covered by life insurance.

It is extremely unfair to compare the performance of insurance against other investments

without considering the core features of insurance. The very essence of insurance is to protect your
family from the uncertainty of your life. Hence it proves very logical to evaluate the costs involved
towards this feature. Ask yourself this question

When you pay insurance premium for your car, do you get anything if fortunately no
mishap happens? This means that you spent the amount to secure a valuable property.

Hence you must accept that out of the total amount paid by you for your life insurance, a
certain amount is used for providing the risk cover and only the balance can be utilized as savings.
In other words, the total premium you pay minus the amount evaluated as the cost of insurance
must be considered as the amount invested to get the maturity amount. If you calculate the yield
from returns, you will be in for a surprise. Secondly, we tend to think very unrealistically about our
life.

52
 We often compare the results after say 10 years from an investment scheme, for instance
PPF. And then we try to convince

ourselves that PPF is providing a better yield than an insurance policy. For instance, if you invest
Rs.10, 000/- in PPF after 1 year your money will grow to Rs.11100/- accruing a return of 11
percent. But what if your death occurs in the first year itself? The Rs.10,000/- can give you an
insurance cover up to an approximate sum of Rs.12 lakhs (depending upon the plan, age, etc) and
this amount shall become available to the nominee of the policyholder as against the mere paltry
Rs.11,100/- that PPF shall pay.

Now how do you compare the yield in such a situation? Is it 100 % or 1000 % or more?

Benefits of investing in ICICI Prudential Life Insurance Company:

Customer centric:
• The company is customer centric understanding his expectations by keeping him as the
center point.
• Listen actively
• Understand customer needs and deliver solutions
• Treat customer interest always supreme

Values of companies
• Customer first.
• Boundary less
• Passion
• Integrity
• Ownership

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 FUTURE POSSIBILITIES

Job opportunities are likely to increase manifold. The number of people working in the
insurance sector in India is the roughly the same as in the UK with a population that is 1/ 7 India’s;
the US with a population 1/4th the size of India has nearly 4 times the number. The liberalization or
the insurance sector promises new jobs opportunities for those employed in the finance sector that
are equipped with degrees in finance. There will be demand for marketing specialists, finance
experts, human resource professionals, engineers from diverse streams like the petrochemical
and power sectors, systems professionals, statisticians and even medical professionals. There could
be a huge inflow of funds into the country. Given the industry’s huge requirement of start-up
capital, the initial year after opening up are bond to see a strong inflow of foreign capital.
Substantial shift in the distribution of insurance in India is likely to take place. Initially, insurance
is seemed as a complex product with a high advice and service component. Buyers prefer a face-to-
face interaction and place high premium on brand name and reliability.

Finally, some potential Indian entrant into insurance hope to ride their existing distribution
networks and customer bases.

For Example, financial organizations like, ICICI, HDFC, or Kotak Mahindra intend to
tap the thousands of customers who already buy their deposits, consumer loans or housing finance.
Other hopeful entrants anticipate specific alliances such as with hospitals to provide health
cover.

54
 LIMITATIONS OF THE STUDY

 The primary data used for present study is very time consuming.

 The primary data obtained consists of personal biases of the respondents and
even the non- response factor was observed.

 To obtain the secondary data which is sufficiently accurate and which exactly

 Fits the needs of study is difficult to find.

The data collected by using a questionnaire, involves uncertainty about the response given
by the respondent and hence the accuracy of the answers given is difficult to presume.

55
 RECOMMENDATIONS

As a management trainee in ICICI Prudential Life Insurance Company my experience was

one of the best learning experiences. The companies’ working was very ethical but I
personally have some suggestions and recommendations to enhance company’s performance:

• The company should go for more aggressive policies to capture the market.

• It should go for more publicity and ad campaigns in the rural and sub urban areas to
become a known brand name for them.

• The policy document should be provided in Hindi language and the language should be
easy to understand. Usage of difficult words should be avoided.

• The policy document should be provided to the clients so that they can go through the
document thoroughly.

• All the conditions and clauses (like the hidden charges) should be clearly mentioned in
the policy document and the client should be aware of these things.

56
 CONCLUSION

The research reveals the typical orthodox view of the Indian investors that still today they
preferably invest in government securities, gold and real estate. But the new generation of investors
is clearly not going to follow the trend. But they believe in themselves and knowing the market
trend started investing in riskier sectors to reap maximum benefit in short span of time. Through
market survey & meetings I also found that today most of the people like to invest in that field
which gives them maximum returns. The trend of investing in real estates &gold has gone. They
prefer in investing in insurance since it provides financial security along with good returns.

This sudden popularity of investment in shares and private sector can be attributed to the following
factors:

• Increase in working population, larger family incomes and consequent higher savings.
• Provision of tax incentives in respect of investment in specified channels.
• Increase in tendency of people to hedge against inflation.
• Availability of large and attractive investment alternatives.
• Increase in investment related publicity.
• Ability of investments to provide income and capital gains.

The main priorities of peoples are health, protection, child education, retirement and wealth and
most of investment of private sector in all the categories for good recovery of money.

57
 BIBILIOGRAPHY

Books referred:

• C.R.Kothari, Research Methodology, New Delhi: Wishwa Prakashan, Inc.2001, 2nd

Edition.

• V.K.Bhalla, Investment Management, New Delhi: S.Chand Publication, Inc.2007,

13th Edition.

• Philip Kotlar, Marketing Management, New Delhi, Pearson Education (P) Ltd.,
Indian Branch, 2004.

News Papers:

• Economic Times

• Business Standered

Websites :

• www.irdaindia.org

• www.icici.com

• www.wikipedia.com

• www.google.com

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