2022-23

An integrated EADR report

On

ICICI PRUDENTIAL LIFE INSURANCE

By

Name of the student - Akshata jagannath bhoge

Roll no. 20220142020

Submitted to-

Savitribai Phule Pune Univercity

In Partial Fulfillment Of The Requirment For The Award Of the Degree Of

Master Of Business Administration (MBA) Through

Suryadatta Institute of Management and Mass communication

Or Suryadatta Institute of Business Management and technology

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 DECLARATION

I the undersigned hereby declare that the project report on ICICI Prudential life insurance
which is been submitted as an integrated project of MBA Sem I to Suryadatta Group of
Institutes is an authentic record of my genuine work done under the guidance of Professors of
EnterpriseAnalysis Desk Research, and Selling & Negotiations Skills Lab.

I assert the statements made and conclusions drawn are an outcome of my research work.I

further certify that

I. The work contained in the report is original and has been done by me under the general
supervision of the faculty members.
II. I have followed the report guidelines provided by the institute in writing.
III. I certify that this report is my own work, based on my study and/or research. I have
acknowledged all material and sources used in its preparation, whether they be books,
articles, reports, lecture notes, and any other kind of document, electronic orpersonal
communication.

Date: 04/01/2023 Name and Signature of student

Akshata jagannath bhoge

Place : Pune MBA, Semester I

ACKNOWLEDGEMENT

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We would like to express my profound gratitude to Dr.Pratiksha Wable
for their contributions
to the completion of our project.
We would like to express my special thanks to our mentor Prof. Vivek
Swami for his time and
efforts he provided throughout. Your useful advice and suggestions
were really helpful to us
during the project’s completion. In this aspect, we are eternally grateful
to you

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 INTRODUCTION AND BREIF INDUSTRY PROFILING

What is Insurance?
Insurance implies the protection from financial loss. It is one of the
forms of risk management, mainly used to hedge against the risk of an
unforeseen loss.

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Insurance is represented in the form of policy. It is a contract in which
an individual or a business seeks financial protection from a firm as a
reimbursement from the insurance company for the loss (big or small)
caused to their property.

For the insurance transaction to take place, the insurer and the insured
enter into a legal contract, called insurance policy. The policy provides
financial security from future uncertainties.

History of Insurance
In India, the history of insurance finds its roots in the mentions of the
writings of Manu (Manusmrithi), Kautilya (Arthasastra), and
Yagnavalkya (Dharmasastra).The writings suggest pooling of resources
that could be re-distributed in times of calamities like epidemics,
floods, fire, famine, etc.

Ancient Indian history has preserved the earliest traces of insurance as

in the marine trade loans and carriers’ contracts. In all, the insurance
sector in India has taken its shape inspired by the other countries,
especially, from England.

Establishment – Insurance Industry

The advent of the life insurance business in India was introduced in
1818 with the establishment of the Oriental Life Insurance Company in
Calcutta. However, the company failed in 1834. The Madras Equitable
had begun transacting life insurance business in the Madras Presidency

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in 1829.The enactment of the British Insurance Act took place in 1870.
Besides, in the last thirty years of the nineteenth century, the Bombay
Mutual (1871), Oriental (1874), and Empire of India (1897) were set up
in the Bombay Residency.

However, this period was particularly dominated by the foreign

insurance companies like Albert Life Assurance, Liverpool and London
Globe Insurance, and Royal Insurance.The Indian Life Assurance
Companies Act of 1912 was the first statutory entity to regulate the life
insurance business in the country. The government of India began
publishing the returns of the Insurance Companies in India in 1914.The
Indian Insurance Companies Act was enacted in 1928 in order to enable
the government to collect statistical data about both life and non life
businesses carried out in India by the Indian as well as foreign insurers
including the provident insurance societies.

In 1938, the earlier legislation was consolidated and amended by the

Insurance Act of 1938 with a view to protect the interest of the
insurance public.

The Insurance Amendment Act of 1950 abolished Principal Agencies.

Moreover, there were a large number of insurance companies and the
level of competition was high as well. Amid allegations of unfair trade
practices, the government of India therefore decided to nationalize the
insurance business.

General Insurance in India

The history of general insurance dates back to the Industrial Revolution
in the west and the consequent growth of sea-faring trade and
commerce in the 17th century. It came to India as a legacy of the British

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occupationGeneral Insurance in India has its roots in the establishment
of the Triton Insurance Company Ltd. in 1850 in Calcutta by the British.

In 1907, the Indian Mercantile Insurance Ltd. was established. It was

the first company to transact all the classes of general insurance
business.

In 1957, the General Insurance Council was formed. It is a wing of the

Insurance Association of India. The council framed a code of conduct
for ensuring fair and sound business practices.The amendment of the
Insurance Act took place in 1968 to regulate investments and set
minimum solvency margins.

Early Insurers
The general insurance business was nationalized with effect from 01st
January 1973 by passing the General Insurance Business
(Nationalization) Act in 1972.

107 insurers were amalgamated and grouped into four companies as

National Insurance Company Ltd., New India Assurance Company Ltd.,
Oriental Insurance Company Ltd., and United India Insurance Company
Ltd.The General Insurance Corporation of India was incorporated as a
company in 1971.

Malhotra Committee
In 1993, the government set up a committee under RN Malhotra
(former governor of the RBI) to propose recommendations to reform
the insurance sector in India.The objective of the committee was to
complement the reforms initiated in the financial sector.The committee
subsequently submitted its report in 1994, in which it recommended

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that the private sector be permitted to enter the insurance industry.The
report also stated that the private sector be permitted to enter the
insurance industry. It said that the foreign companies be allowed to
enter by floating Indian companies, preferably a joint venture with the
Indian partners.

Establishment of IRDA
As per the recommendations of the Malhotra Committee report in
1999, the IRDA (Insurance Regulatory and Development Authority) was
set up. It is an autonomous body responsible for the regulation and
development of the insurance industry in India. In April 2000, the IRDA
was incorporated as a statutory body.

The prime objectives of the IRDA includes the promotion of

competition in the insurance industry so as to enhance customer
satisfaction through an increase in consumer choices and lower
premiums.

The IRDA also ensures financial security of the insurance market.The

IRDA has the power to frame regulations under Section 114A of the
Insurance Act of 1938. Since 2000, it has framed various regulations
covering registration of companies for carrying on insurance business,
protection of policyholders’ interests, and so on.In December 2000, the
subsidiaries of the General Insurance Corporation of India were
restructured as independent companies. At the same time, the GIC was
converted into a national re-insurer.

Presently, there are 34 general insurance companies including the ECGC

and Agriculture Insurance Corporation of India and 24 life insurance
companies operating in India.Insurance is a colossal sector and is

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growing at a faster rate of 15-20%. Along with the banking services,
insurance contributes around 7% to the country’s GDP.

ENTERPRISE HISTORY AND BACKGROUND

ICICI Pru Life Company History
ICICI Prudential Life Insurance Company Limited was
incorporated on 20th July 2000 as a Public Limited Company.
The Company obtained the Certificate of Commencement of
Business on October 16 2000. The Holding Company is
registered with the Insurance Regulatory and Development
Authority of India (IRDAI) for carrying out the business of life

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insurance pursuant to the Registration Certificate dated
November 24 2000. ICICI Prudential is a joint venture between
ICICI Bank Limited and Prudential Corporation Holdings Limited.
It is one of the first private sector life insurance companies in
India and commenced operations in fiscal 2001. The Holding
Company carries on business of providing life insurance
pensions and health insurance products to individuals and
groups. Riders providing additional benefits are offered under
some of these products. The business is conducted in
participating non-participating and unit linked lines of
businesses. These products are distributed through individual
agents corporate agents banks brokers and the Holding
Company's proprietary sales force.In 2001-02 ICICI Prudential
Life Insurance crossed the mark of 1- lakh policies. During the
year 2004-05 the company crossed the mark of 1 million
policies. During the year 2007-08 the company crossed the
mark of 5 million policies. Also during the year its total
premium crossed Rs 10000 crore mark and the assets under
management crossed Rs 25000 crore mark. During the year
2009-10 the company established a wholly owned subsidiary
ICICI Prudential Pension Funds Management Company Limited
which is registered as a fund manager with the Pensions Fund
Regulatory and Development Authority of India for the
purposes of undertaking pension funds related business. During
the year ICICI Prudential Life Insurance turned profitable and

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registered profit of Rs 258 crore. During the year the company's
assets under management crossed Rs 50000 crores mark.
During the year 2011-12 the company announced maiden
dividend to the shareholders. During the year 2014-15 ICICI
Prudential Life became the first private life insurer to attain
assets under management of Rs 1 lakh crore.ICICI Prudential
Life Insurance Company's initial public offer (IPO) opened for
subscription on 19 September 2016 and closed on 21
September 2016. One its promoters ICICI Bank offered 18.13
crore shares in the price band from Rs 300 to Rs 334 per share
in the IPO. There was no fresh issue of shares from ICICI
Prudential Life Insurance Company. On 29 September 2016
ICICI Prudential Life was listed on the bourses and it became
the first pure play life insurance company in India to be listed
on the Indian stock exchanges. On 27 March 2017 ICICI
Prudential Life announced that the Insurance Regulatory and
Development Authority of India (IRDAI) has levied a penalty of
Rs 20 lakh on the company. Earlier the IRDAI had conducted an
onsite inspection of the company in December 2013 and
subsequently the insurance sector regulator raised certain
observations which were followed by a show-cause notice to
the company. On 28 July 2017 ICICI Prudential Life announced
that it has received an order from Insurance Regulatory and
Development Authority of India (IRDAI) directing it to take over
the assets and policyholders' liabilities of Sahara Life Insurance.

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This is not a merger between the two companies but purely a
transfer of customers of Sahara Life Insurance to ICICI
Prudential Life. On 27 November 2017 ICICI Prudential Life
Insurance Company Limited (ICICI Pru Life) announced that it
has implemented the Electronic - National Automated Clearing
House (e-NACH) service of the National Payment Corporation of
India. ICICI Pru Life is the first life insurance company in India to
offer this service to its customers. The e-NACH mandate service
is a digital registration process wherein a customer issues a
mandate to the bank for his/her account to be debited at pre-
determined frequencies. e-NACH service is the most modern
and paperless form for making regular payments.The total
gross premium collected by the Company grew by 21.1% from
Rs 223.54 billion in FY2017 to Rs 270.69 billion in FY2018. The
Company's assets under management at 31 March 2018 was Rs
1395.32 billion as against Rs 1229.19 billion in the previous
year.The Value of New Business grew from Rs 6.66 billion in
FY2017 to Rs 12.86 billion in FY2018 representing an increase of
93.1%.ICICI Prudential Life Insurance was recognised and
awarded the 'Best Term Insurance Provider of the Year' by
Money Today Financial Awards 2017-18.The total premium
collected by the Company grew by 14.3% from Rs 270.69 billion
in FY2018 to Rs 309.30 billion in FY2019. The Company's assets
under management at 31 March 2019 were Rs 1604.10
billion.The Value of new business grew from Rs 12.86 billion in

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FY2018 to Rs 13.28 billion in FY2019 representing an increase of
3.3%.The Company reaches its customers through 508 offices in
446 locations as at 31 March 2019.The new business received
premium grew by 20.4% from Rs 102.52 billion in FY2019 to Rs
123.48 billion in FY2020.The retail renewal premium increased
by 2.2% from Rs 202.25 billion in FY2019 to Rs 206.64 billion in
FY2020. The Company's assets under management at 31 March
2020 were Rs 1529.68 billion.The Value of New Business (VNB)
grew from Rs 13.28 billion in FY2019 to Rs 16.05 billion in
FY2020 representing an increase of 20.9%.The new business
received premium grew by 5.5% from Rs 123.48 billion in
FY2020 to Rs 130.32 billion in FY2021.The retail renewal
premium increased by 6.3% from Rs 206.64 billion in FY2020 to
Rs 219.58 billion in FY2021. During the year 2020-21 the
Company's assets under management crossed Rs 2 trillion and
stood at Rs 2.14 trillion at 31 March 2021. The Value of New
Business grew from Rs 16.05 billion in FY2020 to Rs 16.21
billion in FY2021 representing an increase of 1.0%.The
Company reaches its customers through 517 offices in 449
locations as of 31 March 2021.The new business premium was
Rs 25.59 billion for the quarter ended 30 June 2021 a growth of
70.6% as compared to Rs 14.99 billion as at 30 June 2020.The
Value of New Business (VNB) for was Rs 3.58 billion for the
quarter ended 30 June 2021 a significant growth of 78.1% over
the first quarter of FY2021.The total assets under management

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of the Company was Rs 2231.71 billion at 30 June 2021 which
makes it one of the largest fund managers in India. The
Company had a debt-equity mix of 53%:47% at 30 June
2021.The new business premium was Rs 64.61 billion at the
end of first half of FY2022 a growth of 45.0% as compared to Rs
44.56 billion at the end of first half of FY2021.The total assets
under management of the Company was Rs 2370.87 billion at
30 September 2021 which makes it one of the largest fund
managers in India. The Company had a debt-equity mix of
52%:48% at 30 September 2021 and 97% of the debt
investments are in AAA rated and government bonds.The total
assets under management of the Company was Rs 2375.60
billion at 31 December 2021 which makes it one of the largest
fund managers in India. The Company had a debt-equity mix of
52:48% at 31 December 2021. 97.8% of the debt investments
are in AAA rated and Government Bonds.The Company reaches
its customers through 471 offices in 414 locations as of March
31 2022. The new business premium increased by 15.4% to Rs.
150.36 billion in FY2022. The Total Assets under Management
grew by 12% to reach Rs. 2404.92 billion as on March 31 2022.
The Company settled over 259803 mortality claims amounting
to a total of Rs. 52.75 billion in FY2022 with individual claim
settlement ratio of 97.82% and group claim settlement ratio of
97.74%. Additionally it has settled 319939 surrender claims

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from its retail business operations and 115981 from group
business amounting to a total of Rs. 202.86 billion.

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