Report on Summer Training

“A RESEARCH ON THE INVESTMENT IN LIFE INSURANCE BEFORE AND AFTER THE LIBRELIZATION”
in

Submitted In Partial Fulfillment Of the Requirement of Master Degree in Business Administration

(2009 – 2011)
SUBMITTED TO Mrs. Deepti Goyal SUBMITTED BY Aman deep MBA 3rd SEMESTER

ACKNOWLEDGEMENT “No man is indispensable but there are certain mortal without whom the quality work suffers their
guidance becomes important in acquiring quality results”. I would like to express my gratitude to all those who gave me the possibilities to complete this thesis.I want to thank SENIOR AGENCY MANAGER, ICICI PRUDENTIAL LIFE for giving me permission to INSURANCE, SRI Ganganager, MR. SAURABH GOYAL Company Guide. I would like to thank “Mrs DEEPTI GOYAL” for supporting me during this project and providing me an opportunity to learn outside the class room. It was a truly wonderful learning experience. I would like to dedicate this project to my parents. Without their help and constant support this project would not have been possible. Lastly I would like to thank all the respondents who offered their opinions and suggestions through the survey that was conducted by me in Sri Ganganager.

commence this thesis in the first instance, to do the necessary research work and for being my

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Submitted By: - AMAN DEEP

PREFACE
The liberalization of the Indian insurance sector has been the subject of much heated debate for some years. The policy makers where in the catch 22 situation wherein for one they wanted competition, development and growth of this insurance sector which is extremely essential for channeling the investments in to the infrastructure sector. At the other end the policy makers had the fears that the insurance premium, which are substantial, would seep out of the country; and wanted to have a cautious approach of opening for foreign participation in the sector. As one of the rare occurrences the entire debate was put on the back burner and the IRDA saw the day of the light thanks to the maturing polity emerging consensus among factions of different political parties. Though some changes and some restrictive clauses as regards to the foreign participation were included the IRDA has opened the doors for the private entry into insurance. Whether the insurer is old or new, private or public, expanding the market will present multitude of challenges and opportunities. But the key issues, possible trends, opportunities and challenges that insurance sector will have still remains under the realms of the possibilities and speculation. What is the likely impact of opening up India’s insurance sector? The large scale of operations, public sector bureaucracies and cumbersome procedures hampers nationalized insurers. Therefore, potential private entrants expect to score in the areas of customer service, speed and flexibility. They point out that their entry will mean better products and choice for the consumer. The critics counter that the benefit will be slim, because new players will concentrate on affluent, urban customers as foreign banks did until recently. This seems to be a logical strategy. Start-up costs-such as those of setting up a conventional distribution network-are large and high-end niches offer better returns. However, the middle-market segment too has great potential. Since insurance is a volumes game. Therefore, private insurers would be best served by a middle-market approach, targeting customer segments that are currently untapped

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Submitted By: - AMAN DEEP

DECLARATION
I AMAN DEEP DOING MBA BATCH 2009-11 of “SAS INSTITUTE OF IT AND RESEARCH, MOHALI” hereby declare that the summer training report entitled “INSURANCE SECTOR” IN ICICI PRU. LIFE INSURANCE is an original word and the same has not been submitted to any other institute for the award of any other degree.

Signature of candidate AMAN DEEP

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Submitted By: - AMAN DEEP

INDEX 1. INTRODUCTION TO THE PROJECT 2. INDUSTRY PROFILE COMPANEY PROFILE ORGANISATION PRODUCT PROFILE FINANCIAL POSITION 3. REVIEW OF LITERATURE 4. RESEARCH METHODOLOGY OBJECTIVES SAMPLE SIZE SAMPLING TECHNIQUES DATA COLLECTION ANALYSIS AND INTERPRETATION 5. FINDING / RECOMMENDATION 6. CONCLUSION

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Submitted By: - AMAN DEEP

AMAN DEEP .INTRODUCTION TO THE PROJECT ~6~ Submitted By: .

industrial output and recurring balance of payment crises in the state dominated paradigm. after the implementation of the financial sector liberalization programs. in mid twentieth were framed such that all allocation decision was to be made by government or its agencies. The financial liberalization literature developed in the 1970s and the 1980s stressed the costs of ‘financial repression’ particularly interest rate and exchange rate controls which restricted the growth of financial intermediaries and the real rate of economic growth. which emphasized the importance of financial market development as a source of realizing higher economic growth by increasing the productivity of capital or lowering of intermediation costs or by enhancing saving rate. Indian government initiated a comprehensive market-oriented program. Insurance sector was opened for the private participation with the enactment of the IRDA act 1999. the government restricted the foreign partnership through the FDI route to 26% of the paid up equity of the insurance company. ~7~ Submitted By: . These findings were buttressed by the emergence of endogenous growth literature. Abstract of the work:The project is to know the growth of insurance sector after liberalization. at the core of which was a phased deregulation of financial sector. We study the company’s policies. The broad indicators of financial development showed an upward trend in the 1990s. The state dominated development paradigm has sifted sharply towards more market determined strategy of development in recent years due to the relatively low growth rate of incomes. its market share and products effectiveness in the market. In 1991.THE PROJECT IS TO CONDUCT A RESEARCH ON THE INVESTMENT IN LIFE INSURANCE BEFORE AND AFTER THE LIBRELIZATION. The change in development paradigm has also led to a change in the perception of the role of financial system in development. including India. Major part of that saving was invested in life insurance.AMAN DEEP . Introduction The development strategies of many developing countries. People increased their investment in life insurance and ICICI Prudential got the major part of that investment. along with reforms of trade and industrial policies. While permitting foreign partnership in the venture set up by the sector. After liberalization there is increase in household income. We meet the advisors of the other companies and make market survey for collecting data. After liberalization household income of people increased in India. We got training and attend seminar to know about the products of the company.

After liberalization share of investment in insurance sector increased.AMAN DEEP . ~8~ Submitted By: . The purpose of the project is to study the consumer behavior towards life insurance. The major purpose of the project are as follows: To know the effects of liberalization on insurance sector.  To know the consumer satisfaction towards different companies.  To study the consumer behavior towards different insurance companies. After liberalization earning of people increased and people had more money for saving and investment. After liberalization there is increase in household income and saving of people.Purpose of the project The purpose of the project is to know the project is to know the growth of the insurance sector in India and role of private companies in that growth.

next only to China. V. The overall direction of liberalisation has since remained the same.5% will double the average income in a decade. or contentious issues such as reforming labor laws and reducing agricultural subsidies. The fruits of liberalisation reached their peak in 2007. when India recorded its highest GDP growth rate of 9%. at 10 percent a year". and inflation-controlling measures. Prime Minister Rajiv Gandhi initiated some reforms. In 1991. ~9~ Submitted By: . As of 2009. after the International Monetary Fund (IMF) had bailed out the bankrupt state. India adhered to socialist policies. With this. After Independence in 1947. irrespective of the ruling party. Narasimha Rao and his finance minister Manmohan Singh started breakthrough reforms.Economic liberalization in India The economic liberalization in India refers to ongoing economic reforms in India that started in 1991.AMAN DEEP . In the 1980s. although no party has yet tried to take on powerful lobbies such as the trade unions and farmers. The new neo-liberal policies included opening for international trade and investment. and more reforms would speed up the pace. An Organisation for Economic Co-operation and Development (OECD) report states that the average growth rate 7. Indian government coalitions have been advised to continue liberalisation. India became the second fastest growing major economy in the world. Today India is mainly characterized as a market economy. India grows at slower pace than China. deregulation. which has been liberalising its economy since 1978. tax reforms. about 300 million people—equivalent to the entire population of the United States— have escaped extreme poverty. McKinsey states that removing main obstacles "would free India’s economy to grow as fast as China’s. initiation of privatization. the government of P. The main objective of the government was to transform the economic system from socialism to capitalism so that to achieve high economic growth and industrialize the nation for the well-being of Indian citizens.

AMAN DEEP . Together with banking services. MILESTONE’S IN THE LIFE INSURANCE BUSINESS IN INDIA YEAR 1912 1928 MILESTONES IN THE LIFE INSURANCE BUSINESS IN INDIA The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 5 crore from the Government of India. Insurance Regulatory and Development Authority (IRDA) Act. 1938 1956 ~ 10 ~ Submitted By: . LIC formed by an Act of Parliament. 1938.LIFE INSURANCE Introduction The Insurance sector in India governed by Insurance Act. Today it stands as a business growing at the rate of 15-20 per cent annually. viz. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. the Life Insurance Corporation Act.In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. 1972. with a capital contribution of Rs. 1956. This is an indicator that growth potential for the insurance sector is immense in India. it adds about 7 per cent to the country’s GDP . 1999 and other related Acts. LIC Act. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. 1956 and General Insurance Business (Nationalisation) Act.

United India. Life Insurance was introduced in 1818 when Oriental Life Insurance Company began its operations in India. For one. History of Insurance in India can be broadly bifurcated into three eras: a) Pre Nationalization b) Nationalization and c) Post Nationalization.  Provides loan to tie over a temporary difficult phase and is also acceptable as security for a commercial loan. Whether it is a general accident policy. an insurance policy helps you to scope with uncertainty and insecurity. a medic aim policy or a pension policy. Ever thought about why you should take an insurance policy. it is:  Superior to an ordinary savings plan as it provides full protection against risk of death. If that's not all. (Married Women's Property Act).  Hedges risk against uncertainty. General Insurance was however a comparatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata. the society will benefit as catastrophic losses are spread globally.  Offers tax relief to policyholders. wherein the saved money can be easily withdrawn. For a policy taken under the MWP Act 1874. Life Insurance was the first to be nationalized in 1956.Why Insurance? Insurance is the protection of life and assets against unforeseen circumstance. National and Oriental as its subsidiaries.history Insurance has a long history in India. it helps you to hedge risks against unforeseen circumstances and save more. Life Insurance Corporation of India was formed by consolidating the operations of various insurance companies. General Insurance Corporation of India was set up as the controlling body with New India.  Encourages and forces compulsory savings unlike other saving instruments.AMAN DEEP . Based on the concept of sharing of losses. General Insurance followed suit and was nationalized in 1973. Indian insurance market. The process of opening up the insurance sector was initiated against the background of Economic Reform process which commenced ~ 11 ~ Submitted By: . a trust is created for wife and children as beneficiaries.

registration has been granted to two companies each to underwrite premium in life and non-life segments and to one in the health segment. Table-1 life and non-life insurance companies in India 2000 Public Sector Life insurers General insurers 1 4 2007 Private Sector 17 12 29 Companies Public Sector 1 4 3 8 Total 18 16 3 37 Specialized Institutions 1* Total 6 During 2007-08(up to Dec. Resultantly Indian Insurance was opened for private companies and Private Insurance Company effectively started operations from 2001. the number of participants in the industry has gone up from six insurers in the year 2000 to 37 insurers operating in the life. non-life and reinsurance segments up to February 2007.AMAN DEEP . Since opening up.from 1991.2007). For this purpose Malhotra Committee was formed during this year who submitted their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Given below is the list of all the insurance companies operating in India ~ 12 ~ Submitted By: .

LIFE INSURANCE COMPANIES Public Sector 1. 16. 8. 14. Ltd. MetLife Insurance Company Ltd. Ltd. 2. Kotak Mahindra Old Mutual Life Ins. Bharti AXA Life Insurance Co. Bajaj Allianz Life Insurance Company Ltd. 12. 9. HDFC Standard Life Insurance Co. Birla Sun-Life Insurance Company Ltd. 7. Max New York Life Insurance Co. 4. GENERAL INSURANCE COMPANIES ~ 13 ~ Submitted By: . Ltd. 15. Ltd. Ltd. 6. Ltd. Ltd. IDBI Fortis Life Insurance Co. Pvt. Sahara India Life Insurance Co. ICICI Prudential Life Insurance Co. Ltd. ING Vysya Life Insurance Company Ltd. Reliance Life Insurance Co. SBI Life Insurance Company Limited 10. 13. Aviva Life Insurance Co. TATA AIG Life Insurance Co. Ltd. Ltd. Ltd. 17. 11. Life Insurance Corporation of India Private Players 1.AMAN DEEP . Ltd. 5. 3. Shriram Life Insurance Co. Future Generali India Life Insurance Co. Co.

Universal Sompo General Insurance Co. Ltd. Bajaj Allianz General Insurance Co.Public Sector 1. REINSURER 1. ltd. 7. 3. TATA AIG General Insurance Co. Ltd. National Insurance Company Limited 3. 8. Ltd. Ltd. 12. Ltd. Ltd. Future Generali India Insurance Co. Private Players 1. ltd. Cholamandalam General Insurance Co. 5. New India Assurance Company Limited 2. 10. Apollo DKV Insurance Co. Reliance General Insurance Co. Ltd.AMAN DEEP . 4. Export Credit Guarantee Corporation 6. Ltd.Agriculture Insurance Company of India Ltd. ICICI Lombard General Insurance Co. General Insurance Corporation of India Growth of life insurance:~ 14 ~ Submitted By: . Star Health & Allied Insurance Co. The Oriental Insurance Co. Ltd. Ltd. 5. 9. 2. IFFCO-Tokio General Insurance Co. Royal Sundaram Alliance Insurance Co. United India Insurance Co. 11. Ltd. 4.HDFC Chubb General Insurance Co. Ltd. 6.

3 per cent.41% in new business premium underwritten during the period April to November 2007. During the current year the life insurance has reported growth of 1.India is emerging as one of the two of the largest markets in the world for life insurance products.34898 crore in 2000-01 to Rs. ~ 15 ~ Submitted By: . at a mere 2. roughly at about 25 per cent and a low penetration. In the 11 months of fiscal year 2004-05. the other being China. the public sector Life Insurance Corporation (LIC) had the major share of the market with premium totaling Rs 134 billion. Private sector players recorded a spectacular growth of 129 per cent over the last year.4 per cent during the year. a high savings rate. which is a measure of new business secured. 75617 crore as compared to 9708 crore in 2000-01. underwritten by the life insurance during 2007-08 was Rs. Of this. 156041 crore in 2007-08. In the case of India. life insurance companies collected premium worth Rs 172 billion and the market grew by a whopping 32. The total premium underwritten by the industry has grown from Rs. The first year premium. the three key drivers of growth are a large insurable population. compared to LIC's growth of 18 per cent.AMAN DEEP .

AMAN DEEP .INDUSTRIAL PROFILE About the company ~ 16 ~ Submitted By: .

Total number of policies issued by the company in 2004 was 4. Mission of the company Mission of the company is to make the company dominant player in life insurance with their commitment to excellence.AMAN DEEP . speed and innovation and leveraging their technological expertise. 675 crore. focus on service. It also focused on Unit Linked Plans (ULIPs) to target new consumer segments.ICICI Prudential life insurance ICICI Prudential Life Insurance Company is the country's leading private life insurance company. The focus has now shifted to penetrating these locations for increasing market share.30.  Building long lasting relationships with our partners. It has a presence in 15 states through partnership arrangements and as of 2003-04. The company is also trying to get higher penetration in the High Net Worth segment. Vision of the company The vision of the company is to make ICICI Prudential dominant life and pension player built on trust by world class people and service. ~ 17 ~ Submitted By: . ICICI Prudential had begun ITS operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI has emerged as a key player. retirement solutions and child plans. As of September 2004. Company is expecting 16% market share at present. Objective of the company Objective of the company are as follows: Understanding the needs of the customers and offering them superior products and service. ICICI Prudential's equity base is Rs. It also has 15 key non-bank partners and 800 financial sales consultants.000 advisors. it had 90 branches in 60+ locations. With its combination of aggressive marketing through an agency force and the use of the banking channel. It is also the only life insurer in India to be assigned AAA (Ind) credit rating by Fitch rating. ICICI prudential is the only company which has 9 branches in Chandigarh.000 of 980 crore premium. Company had nearly 2. 680 offices and 23 bank partners.35. Initially. ICICI Bank and holds 74% and prudential plc holds 26% stake in ICICI Prudential. the company drove new business by opening branches in new locations. it sold 64. It took the initiative in launching nontraditional products such as life-stage products. The company has seven bank assurance partners and this is the largest contributor to non-agency business.764 policies in rural areas.

 Providing an enabling environment to foster growth and learning for our employees. ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001. ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services. ~ 18 ~ Submitted By: . In 1999. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. ICICI was formed in 1955 at the initiative of the World Bank. and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. 2005 and profit after tax of Rs. In the 1990s.1.67. the Government of India and representatives of Indian industry. About the parent company ICICI BANK ICICI Bank was originally promoted in 1994 by ICICI Limited. 2. both directly and through a number of subsidiaries and affiliates like ICICI Bank. The principal objective was to create a development financial institution for providing mediumterm and long-term project financing to Indian businesses. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.005 crore for the year ended March 31. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998. and was its wholly owned subsidiary. an Indian financial institution.659 crore at March 31.AMAN DEEP . ICICI Bank is India's second-largest bank with total assets of about Rs.

AMAN DEEP . and thereby maximizes returns to our shareholders over time. profitable businesses in each of these markets. 1. PRUDENTIAL PLC Prudential plc is an international financial services company. Our strategy is to build sustainable. which aims to help people enhance and protect their own and their dependants’ financial well-being by providing them with appropriate savings and protection products. ~ 19 ~ Submitted By: . ICICI Bank has a network of about 560 branches and extension counters and over 1.2005 (Rs.900 ATMs.637 crore in fiscal 2004).

customer-centric products that meet the needs of customers at every life stage. LifeLink Super:.With adequate returns. ~ 20 ~     Submitted By: .LifeTime Gold & LifeTime Plus are unitlinked plans that offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. expenses for a child's higher education or purchase of an asset. Its products can be enhanced with up to 4 riders. Save'n'Protect is a traditional endowment savings plan that offers life protection along CashBak:. LifeTime Gold & LifeTime Plus:. Savings & Wealth Creation Solutions  Save'n'Protect:. Maximiser. Premier Life Gold:.Premier Life Gold is a limited premium paying plan specially structured for long-term wealth creation. Flexi Growth and Flexi Balanced.AMAN DEEP .CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child's marriage.Preserver. to create a customized solution for each policyholder.LifeLink Super is a single premium unit linked insurance plan which combines life insurance cover with the opportunity to stay invested in the stock market. Balancer. It is available for terms of 15 and 20 years.PRODUCTS Major products of ICICI Prudential are as follows:Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative. Each offer 6 fund options . Protector.

HomeAssure:. which combines the benefits of automatic asset allocation and quarterly rebalancing along with increased protection. It is available in 3 options . SmartKid plans are also available in unit-linked form .LifeGuard is a protection plan.  Education insurance plans  Education insurance:.AMAN DEEP . LifeStage RP:.HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner. ~ 21 ~ Submitted By: . which offers life cover at low cost.educational insurance under the SmartKid brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. InvestShield Life New:.InvestShield Life New is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation. InvestShield Cashbak:.both single premium and regular premium. level term assurance with return of premium & single premium.LifeStage RP is a unique and powerful wealth creation insurance solution.level term assurance.InvestShield Cashbak is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options.   Protection Solutions  LifeGuard:. The policy is designed to provide money at important milestones in the child's life.

life annuity guaranteed for 5. joint life last survivor annuity with return of purchase price.AMAN DEEP .Retirement Solutions  ForeverLife:.Foreverlife is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually. Health Solutions ~ 22 ~ Submitted By: .this is a single premium annuity product that guarantees income for life at the time of retirement. LifeTime Super Pension:.    PremierLife Pension:-this is a unique and convenient retirement solution with a limited premium paying term of three or five years. especially those who require more flexibility and customization while planning their finances.this is a single premium unit linked pension plan. 10 and 15 years & for life thereafter. LifeLink Super Pension:. life annuity with return of purchase price.this is a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity. joint life. last survivor annuity without return of purchase price) at the time of retirement. Immediate Annuity:. to suit professionals and businessmen. It offers the benefit of 5 payout options.

and also offers a coordinated care approach to managing the condition. Crisis Cover:.Crisis Cover is a 360-degree product that will provide longterm coverage against 35 critical illnesses. irrespective of the actual medical expenses.Diabetes Care is a unique critical illness product specially developed for individuals with Type 2 diabetes and pre-diabetes.hospitalization. and death.cancer care plus is a wellness plan that includes all the benefits of Cancer Care and also provides an additional benefit of free periodical cancer screenings. total and permanent disability.    ~ 23 ~ Submitted By: . ICU.AMAN DEEP . Diabetes Care Plus also offers life cover. procedures & recuperating allowance.Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance. Cancer Care:. It makes payments on diagnosis on any of 6 diabetes related critical illnesses. Health Assure Plus offers the added advantage of an equivalent life insurance cover. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage up to 20 years.diabetes care plus is a unique insurance policy that provides an additional benefit of life cover for Type 2 diabetics and prediabetics Hospital Care:.hospital care is a fixed benefit plan covering various stages of treatment . Health Assure Plus:.  Diabetes Care:.  Cancer Care Plus:.cancer care is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. Diabetes Care Plus:.

GRASIM 18.SATAYAM 12. NAV is calculated on the basis of SENSEX.STATE BANK 11. RANBAXY LAB 7.WIPRO LTD 16. RELIANCE LTD 3.TATA MOTORS 15.BAJAJ AUTO LTD ~ 24 ~ Submitted By: .LARSEN & TOURBO 13. HIND LEVER 10.AMAN DEEP .ICICI Prudential invests the money of the customers on the basis of the NAV on that date. ICICI Prudential calculates NAV on the basis of sensitivity index of the following 29 companies:29 CONSTITUENT OF SENSITIVTY INDEX (SENSEX) ON DEC 2004 of ICICI PRUDENTIAL 1. ICICI BANK 4.HINDAL COMPANY 17. ITC 5.HDFC BANK 14. HDFC 8. ONGC 6. TATASTEEL 9. INFOSIS TECH 2.

There is automatic shift from greater exposure to equity in youth. has designed products where there is automatic asset allocation depending on the life stage.CIPLA LTD 23.MARUTI ULIP products of ICICI Prudential life insurance:Among private insurance companies.AMAN DEEP . out of which Rs 20.HERO HONDA 24. they are gathering much more money from the investors. to greater exposure to fixed income products as one approaches retirement age.000 crore for the company as on December 31. 2007 for the 6 million customers. ULIPs are providing tough competition to mutual fund products.HIND PETRO 21.000 crore is in equity.GUJ AMB CEMENT 27. ICICI Pru. and its equity assets measure next only to UTI and Reliance Mutual Funds.TATA POWER 26.ACC 25. manages assets worth Rs 28. which has close to 50 ULIP products. Since insurance companies have existed far longer and have well spread-out infrastructure. Mr.RELIANCE 29. Puneet Nanda. ~ 25 ~ Submitted By: .BHARTI TELE LTD 20. its Executive VicePresident and Chief Investment Officer. ICICI Prudential Life Insurance has the largest fund under management in terms of equity exposure in markets.19.DR REDDY 28.BHEL 22.

Awards and recognitions AWARDS:- ICICI Prudential Life was awarded the INDY’s Award for Excellence in Mass Communication in the category of Most Creative Advertisement-Television India's Most Customer Responsive Insurance Company Avaya Global Connect .500 crore since the formation of the company in November 2000.ICICI Prudential has raised its capital base to Rs 3. 2007 ~ 26 ~ Submitted By: .AMAN DEEP .Economic Times Customer Responsiveness Awards.

MD & CEO. Shikha Sharma. Shikha Sharma. ICICI Prudential Life Insurance was adjudged as one of the 50 Most Powerful Women in Business by The Financial Express. MD & CEO. MD & CEO.Ms. Ms. ICICI Prudential Life Insurance was awarded the Outstanding Businesswoman of the Year at CNBC TV18's India Business Leader Awards 2007 ~ 27 ~ Submitted By: . ICICI Prudential Life Insurance was adjudged the Entrepreneur of the Year-Manager at the Ernst and Young Entrepreneur Awards 2007 Ms. Shikha Sharma.AMAN DEEP .

~ 28 ~ Submitted By: . instituted by Ad club.ICICI Prudential Life Insurance won the award for the Best Life Insurer-Runner up at the Outlook Money & NDTV Profit Awards 2007 ICICI Prudential Life’s. retirement solutions campaign for the year 2006-07 was awarded the Bronze Effy trophy in the services category.It also won the Brand Equity Bravery Award 2007.AMAN DEEP .

2004 and 2005 Prudence Customer Centricity Award 2004 & 2005 Prudential Corporation Asia Recognitation IMM Award for Excellence Institute of Marketing & Management Organization with Innovative HR Practices Indira Group of Institutes Organization with Innovative HR Practices Asia-Pacific H R Congress Awards for HR Excellence ~ 29 ~ Submitted By: .Innovation Award for launching Diabetes Care – Prudence Award 2006 People Award for excellence in training and people development .A C Nielsen Survey of Most Trusted Brands – 2003.AMAN DEEP .Prudence Award 2006 Most Trusted Private Life Insurer The Economic Times .

3% ~ 30 ~ Submitted By: .2% 1.7% 2.6% 0.market share of different companies are as follow:- Market Shares of Key Players LIC ICICI PRUDENTIAL BIRLA SUN LIFE BAJAJ ALLIANZ SBI LIFE TATA AIG MAX – NYL MET LIFE AVIVA OM KOTAK ING VYSYA AMP SANMAR 80% 6.2% 0.9% 0.8% 2. company estimated 16% market share in 2007-08.ICICI prudential is leading private life insurance company.3% 2.3% 0.8% 0.4% 0.AMAN DEEP .

AMAN DEEP .REASERCH METHODOLOGY ~ 31 ~ Submitted By: .

formulating hypothesis. The major secondary source was the earlier researches. Research design ~ 32 ~ Submitted By: . organizing & evaluating data. collecting. measurement and analysis of data. Canopies were installed at various locations.AMAN DEEP .Methodology is conceptual structure with in which research is conducted. Data was also collected from the advisors Secondary source In secondary source we collect data from the internet and get notes from the company. RESEARCH DESIGN The methodology adopted to achieve the project objective involved casual and descriptive research method. Research is an academic activity and the term is used in a technical sense. Primary source In primary source we collect data by puting questionnaire from different people in different places of Sri Ganganagar. Data collection For data collection we use primary as well as secondary source. SAMPLING The survey comprised of convenient sampling for preferred insurance companies. The information required for fulfilling the objective of the study was collected from various primary and secondary sources. According to CLIFFORD research comprises defining & refining problems. It constitutes the blue prints for collection. making deductions and reaching conclusions and at last carefully testing the conclusion to determine whether it fits the formulating hypothesis or not.

For conducting research respondent were categorized into two categories. One was life policy holders and another was non. A sample size of 100 was taken for conducting research. Respondent Segments Life policy holders  Old Customer :Taken insurance prior to liberalization only  Evolved Customer :Taken insurance both in pre and post liberalization  New Customer :Taken insurance in post liberalization only Non–policy holders (life) Table-3 RESPONDENT CATEGORY LIFE POLICY NON-POLICY TOTAL OLD CUTOMER 20 15 35 sampling plan EVOLVED CUSTOMER 25 15 40 NEW CUSTOMER 15 10 25 TOTAL 60 40 100 ~ 33 ~ Submitted By: .life policy holders.AMAN DEEP .

AMAN DEEP .DATA ANLYSIS ~ 34 ~ Submitted By: .

DO YOU THINK LIBERALIZATION HAVE A IMPACT ON YOUR LIFE? o YES o NO 3. WHAT IS THE IMPACT OF LIBERALISATION? o MORE NO OF PLAYERS IN MARKET o MORE COMPETITION 4. 1.AMAN DEEP . ARE YOU AWARE ABOUT LIBERALIZATION? o YES o NO 2. Proper techniques will be used for analyzing data.Data analysis:Data analysis should be done by comparing the data of pre liberalization and post liberalization. ARE YOU AWARE ABOUT LIFE INSURANCE? O YES O NO ~ 35 ~ Submitted By: .

AMAN DEEP . DO YOU THINK LIFE INSURANCE IS IMPORTANT? O YES O NO ~ 36 ~ Submitted By: .5.

6.AMAN DEEP . HOW MUCH YOU INVEST IN LIFE INSURANCE AS PERCENTAGE OF YOUR TOTAL EARNINGS? O 0-10% O 10-20% ~ 37 ~ Submitted By: .

O MORE THAN 20% O NONE 7.AMAN DEEP . WHICH INSURANCE COMPANY PROVIDES BEST SERVICES? O LIC ~ 38 ~ Submitted By: .

AMAN DEEP .O SBI LIFE INSURANCE O ICICI PRUDENTIAL LIFE INSURANCE O BAJAJ ALLIANZE O OTHERS ~ 39 ~ Submitted By: .

8.AMAN DEEP . WHAT IS THE IMPORTANCE OF LIFE INSURANCE? O INVESTMENT O FUTURE PROTECTION O TEX SAVING O ALL THE ABOVE ~ 40 ~ Submitted By: .

YOUR INVESTMENT IN LIFE INSURANCE IS MORE OR SAME AS COMPARED TO 4-5 YEARS AGO? O LESS O MORE ~ 41 ~ Submitted By: .AMAN DEEP .9.

AMAN DEEP .10. DO YOU KNOW THE FEATURS OF ULIP? O YES O NO O TO ANY EXTEND  IF YES THAN DO YOU THINK ULIP PROVIDES:  INVESTMENT OPPORTUNITY IN DEBT AND EQUITY  LIFE INSURANCE  LIFE INSURANCE+INVESTMENT ~ 42 ~ Submitted By: .

WHAT WAS YOUR INVESTMENT IN LIFE INSURANCE BEFORE LIBERALISATION? o LESS THAN 20000 o 20000-50000 o MORE THAN 50000 ~ 43 ~ Submitted By: .AMAN DEEP .11.

AMAN DEEP . HOW MUCH YOU ARE INVESTING IN LIFE INSURANC AFTER LIBERALISATION o LESS THAN 20000 o 20000-50000 o MORE THAN 50000 ~ 44 ~ Submitted By: .12.

IN WHICH COMPANY YOU INVEST AFTER LIBERALIZATION? o LIC o SBI LIFE INSURANCE ~ 45 ~ Submitted By: .13.AMAN DEEP .

o ICICI PRUDENTIAL LIFE INSURANCE o BAJAJ ALLIANZE o OTHERS Limitation of the project The major limitation of the project is that we are not able to reach each and every customer.AMAN DEEP . Advisors of the other companies are not interested in providing true fact ~ 46 ~ Submitted By: .

major limitations are as follows: We are not able to talk with every customer  We have just two months for project  People are not interested to answer the questions  People are not interested in providing true fact ~ 47 ~ Submitted By: .AMAN DEEP .and this is a broad project which needs a lot of time for study.

Conclusions and recommendations Conclusion ~ 48 ~ Submitted By: .AMAN DEEP .

~ 49 ~ Submitted By: . However the success of insurance industry will primarily depends upon on meeting the rising expectation of the consumers. People are saving more in comparison with pre liberalization saving. Therefore coverage of insurance has to grow very fast. With the increase in the life expectancy of individuals and disintegration of joint family system each individuals now has arranged cover for himself and for his family. In private players ICICI Prudential hold maximum share in the market. Savings of Indian has gone up to 35% in 2007. Provide regular updates about investment Regular (monthly/weekly) updates should be provided to the customer about their fund value. People prefer ICICI Prudential for life insurance. After introducing ULIP in insurance sector people are investing more in life insurance. Recommendation Awareness about life insurance There is huge population in India which is unknown to life insurance. Indian insurance market offers tremendous opportunity to private player.In conclusion we can say that there is lot of potential for life insurance. In India only 10% of the market share has been taped by LIC and GIC and the balance 90% remains untapped. Provide better services Better & quicker services should be provided to customers. This vast potential can be tapped only by a large number insurance. Companies should provide more information about life insurance.AMAN DEEP . To serve the population of more than 100 crore Indians. either through mailers. Care should be taken that the receipts and policy papers reach the customer at the promised time. Focus on rural marketing Insurance companies are targeting urban insurance. ULIP provides both investment as well as life insurance. e-mail or sms. ICICI Prudential has vast opportunity in the market due to its brand name in the market. There is huge untapped market in rural areas. Companies should also focus on rural insurance. On the other hand per capita income is growing rapidly.

Annexture ~ 50 ~ Submitted By: .AMAN DEEP .

QUANTITATIVE METHODS-S.P.COM 2.GOV. WWW. IRDA ACT 2.IN 3.ICICIPRULIFE.BIBLIOGRAPHY Websites 1.SEBI. BUSINESS ENVIRONMENT.GOV.MONEYCONTROL. WWW.COM 5. WWW. FOREIGN TRADE POLICIES BOOKS BUSINESS RESEARCH MANAGMET.INCOMETAX. MARKETING RESEARCH.LIC.AMAN DEEP . WWW.COM REGULATION ACT 1.IN 4.GUPTA DOCUMENTS PROVIDED BY THE COMPANY ~ 51 ~ Submitted By: . WWW.

NO 3. INVESTMENT OPPORTUNITY IN DEBT AND EQUITY B. TAX SAVING D. WHAT WAS YOUR INVESTMENT IN LIFE INSURANCE BEFORE LIBERALISATION ~ 52 ~ Submitted By: . SBI LIFE INSURANCE D. ALL THE ABOVE 6. ICICI PRUDENTIAL LIFE INSURANCE C. DO YOU KNOW THE FEATURS OF ULIP A.YES B.NO IF YES THAN DO YOU THINK ULIP PROVIDES: A. FUTURE PROTECTION C. 10%-20% C. YES B. DO YOU THINK LIFE INSURANCE IS IMPORTANT OR NOT A. YES B. LIC B. HOW MUCH YOU INVEST IN LIFE INSURANCE AS PERCENTAGE OF YOUR TOTAL EARNINGS A. WHICH INSURANCE COMPANY PROVIDE BEST SERVICES A. ARE YOU AWARE ABOUT LIFE INSURANCE A.AMAN DEEP . LIFE INSURANCE+INVESTMENT 8. LIFE INSURANCE C. YOUR INVESTMENT IN LIFE INSURANCE IS MORE OR SAME AS COMPARED TO 4-5 YEARS AGO A. OTHERS 5. INVESTMENT B.QUESTIONNAIRE 1.LESS 7. 0-10 % B. MORE THAN 20% 4. MORE B. WHAT IS THE IMPORTANCE OF LIFE INSURANCE A.NO 2.

AMAN DEEP .BAJAJ ALLIANZE ~ 53 ~ Submitted By: .LIC B. MORE THAN 50000 AFTER 9. LESS THAN 20000 B.ICICI PRUDENTIAL C. LESS THAN 20000 B.IN WHICH COMPANY YOU INVEST AFTER LIBERALIZATION A.A. MORE THAN 50000 10. 20000-50000 C. HOW MUCH YOU ARE INVESTING IN LIFE INSURANC LIBERALISATION A. 20000-50000 C.

~ 54 ~ Submitted By: .AMAN DEEP .

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