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on Consumer Behaviour
And Customer Satisfaction ICICI Prudential Life Insurance Service
A.JAGAN Reg. No. 40908631017 Of KARPAGA VINAYAGA COLLEGE OF ENGINEERING AND TECHNOLOGY Submitted to the FACULTY OF MANAGEMENT STUDIES In partial fulfillment of the requirements For the award of the degree Of MASTER OF BUSINESS ADMINISTRATION ANNA UNIVERSITY CHENNAI – 600 025
KARPAGAVINAYAGAC OLLEGE OF ENGINEERING AND TECHNOLOGY
DEPARTMENT OF MANAGEMENT STUDIES
G.S.T. Road, Chinna Kolambakkam, Palayanoor Post, Madhuranthagam (T.K.), Kancheepuram – 603 308. Phone : 044 27565486, 27598232
BONAFIDE CERTIFICATE This is to certify that the project report entitled as “A STUDY OF CUSTOMER SATISFACTION” is a bonafide work done by MR.A.JAGAN of Reg.No.40908631017, who carried out study under my supervision certified further that to the best of my knowledge the work reported here in doesn’t from part of any other summer training report on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidates.
Prof. C.V.Rajagopalan Mr.N.Elanchaezhian Head of the Department Guide in charge
DECLARATION BY THE STUDENT
This is to state that the training report titled “A
Consumer Behaviour and Customer Satisfaction at ICICI Prudential Life Insurance Service in Tiruvarur Dist”is
based on the original work carried out by me towards the partial fulfillment of requirement for the M.B.A program of the Anna University Chennai. This report has not been submitted to any other University for the award of any Degree or Diploma.
Date: Place: A.JAGAN
I give my deepest thanks to the Lord Almighty for giving me all the wisdom, the knowledge and strength to carry out this project in a successful manner.
I am immensely thankful and profoundly grateful to Smt. MEENAKSHI ANNAMALAI,DIRECTOR, KVCET, for having me this amply opportunity to do this professional course in this campus. I express my sincere gratitude and thanks to Professor. T.RANGARAJULU, PRINCIPAL, KVCET, for facilitating to conduct research study. I am deeply indebted to Professor. C.V.RAJAGOPALAN, HEAD OF THE DEPARTMENT OF MANAGEMENT STUDIES, KVCET, Whose timely suggestion and encouragement helped and me to complete this project successfully. I express my sincere and profound thanks to my project guide Mr.N.Elanchaezian, whose guidance, induced information, timely suggestions and encouragement help me to complete this project successfully. It is my great respect to express my heartiest gratitude to Mr.D. RAMANKUMAR, manager. A Study on Consumer Behaviour and Customer Satisfaction at ICICI Prudential Life Insurance Service in Tiruvarur Dist ., for having devoted much of their precious time in giving me valuable guidance and explaining the details parting to my project work. I am thankful to all my MBA faculty members, my mother Mrs.S.Sandhiya, my sister S.Harini and all my friends for helping and encouraging me during the period of my project.
Tiruvarur .614101. Final year MBA student of Karpaga vinayaga college of engineering & Technology.07.JAGAN .2009 under my supervision at District Branch office .2009 to 24.RAMAN KUMAR Branch Manager ICICI Bank Limited Tiruvarur Dist… _____________________________________________________________________________________ CERTIFICATE This is to certify that Mr.RAMANKUMAR Branch Manager .06. ICICI Bank . A. has successfully completed his 3 week project work on “ A Study on Consumer Behaviour and Customer Satisfaction at ICICI Prudential Life Insurance Service in Tiruvarur Dist ” from 25.D. Chennai600119. Date: Place: D.
1 . 1 TITLE INTRODUCTION 1. COMPANY PROFILE 3. INDUSTRY PROFILE PAGE NO.OBJECTIVE OF THE STUDY 3.CONTENTS CHAPTER NO. SIGNIFICANCE OF THE STUDY 24 25-40 4 FINDINGS AND RECOMMENDATION BIBLIOGRAPHY ANNEXURE 41-42 43 . PRODUCT /SERVICE PROFILE 2 3 REVIEW OF LITERATURE RESEARCH METHODOLOGY 1.23 2.STATEMENT OF THE PROBLEM 2.
4.LIST OF TABLES S. 6. 5. 3. 18 20 22 24 26 28 LIST OF FIGURES S. 4. TITLE Table showing Age group of respondents Table showing Qualification of respondents Table showing Benefits of choosing the product Table showing Disadvantages in insurance plans Table showing Investment avenues Chi . 2.NO 1. 19 21 23 25 29 INTRODUCTION . 5.Square Test PAGE NO. TITLE Age group of respondents Qualification of respondents Benefits of choosing the product Disadvantages in insurance plans Investment avenues PAGE NO.NO 1. 3. 2.
This is an indicator that growth potential for the insurance sector is immense in India. The liberalization of the industry the insurance industry has never looked back and today stand as one of the most competitive and exploring industry in India. Nearly 80% of Indian populations are without life insurance cover and the health insurance. it adds about 7 percent to the countries GDP. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation the government in 1993 to examine the various aspects of the industry constituted “Malhotra Committee”. The use of new distribution techniques and the IT tools has increased the scope of the industry in the . Since then the insurance industry has gone through many changes. With a large population and the untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20% annually. a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current. The entry of the private players and the increased use of the new distribution are in the limelight today. Together with banking services. Essentially.Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. In spite of all this growth statistics of the penetration of the insurance in the country is very poor. Creating a more competitive financial system suitable for the requirements of the economy was the main idea behind this reform. The key element of the reform process was participation of overseas insurance companies with 26% capital.
This money is called the float. injury. The excess amount that they pay to policyholders is the cost of float. even if the insurance company pays out in claims every penny received as premiums. Insurance does not protect the assets but only compensates the economic or financial loss. An insurance company will profit if they invest the money at a greater return than their cost of float. disadvantage or destruction. life health and legal liability. This relationship is usually drawn up in a formal legal contract. Insurance is the method of spreading and transfer of risk. Insurance is the business of providing protection against financial aspects of risk. because they have the use of the premium money from the time they receive it until the time they need it to pay claims. It is one method of a greater concept known as risk management –which is the need to mange uncertainty on account of exposure to loss. In fact. In insurance the insured makes payment called “premiums” to an insurer. such as those to property. and in return is able to claim a payment from the insurer if the insured suffers a defined type of loss. . When the investments of float are successful they may earn large profits. An insurance contract or policy will set out in detail the exact circumstances under which a benefit payment will be made and the amount of the premiums. most insurance companies pay out more money than they receive in premiums. Insurance companies also earn investment profits.longer run. The fortunate many who are exposed to some or similar risk shares loss of the unfortunate.
with the establishment of the oriental life insurance company in Calcutta. The union government had opened the insurance sector for private participation in 1999. 2) Non-life (general) insurance. The first Indian owned Life Insurance Company. In 1818 British introduced to India. also allowing the private companies to have foreign equity up to 26%. 1938.Classification of insurance The insurance industry in India can broadly be classified in two parts. It helps to achieve the purpose of life assured. 1912 was the first statuary measure to regulate the life insurance business in India. They are. 1) Life insurance: Life insurance can be defined as “life insurance provides a sum of money if the person who is insured dies while the policy is in effect”. the Bombay mutual life assurance society was set up in 1870. Benefits of life insurance Life insurance encourages saving and forces thrift. It provides valuable tax relief. In 1983. 12 private sector companies have entered the life insurance business. the earlier legislation was consolidated and amended by the insurance act. Thus insurance is found to be very useful in the lives of the person both in short term and long term. . Following the opening up of the insurance sector. It is superior to a traditional savings vehicle.the life insurance act. with comprehensive provisions for detailed effective control over insurance. 1) Life insurance. It can be enchased and facilitates quick borrowing.
“A person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations. as the behavior that consumers display in searching for. 2) Non-life (general) Insurance: Triton insurance co. whose shares were mainly held by the British. all facts. material to the risk being proposed whether requested or not”. 2) Principle of insurable interest: “Relationships with the subject matter (a person) which is recognized in law and gives legal right to insure that person”. using. Consumer Behavior: Consumer behavior is defined. fulfilling conditions or desires. The first general insurance company to be set up by an Indian was Indian mercantile insurance co. accurately and fully. Ltd. .” Customer Satisfaction can be defined as supplying or gratifying all wants or wishes. CONCEPTUAL BACKGROUND Satisfaction is defined as . which was stabilized in 1907. or the state of the mind anything that makes a customer feel pleased or contented. ltd was the first general insurance company to be established in India in 1850. The general insurance business was nationalized after the promulgation of General Insurance Corporation (GIC) OF India undertook the postnationalization general insurance business. . There emerged many a player on the Indian scene thereafter.. evaluating and disposing of products and .Fundamental principles of life insurance contract. purchasing. 1) Principle of almost good faith: “A positive duty to voluntary disclose.
Personality can be described ad the psychological characteristics that both determine and reflect how person responds to his or her environment.services that they expect will satisfy their needs. Motivation: The processes that account for an individual’s intensity. use. or experiences to satisfy needs and desires Customer value: The ratio between the customers’s perceived benefits (economic. direction. functional and psychological) and the resources (momentary. services ideas. The study of the processes involved when individuals or groups select. effort. psychological) used to obtain those benefits. . or dispose of products. Consumer learning is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior. purchase. organizes. time. Customer satisfaction: Customer satisfaction is the individual’s perception of the performance of the product or service in relation to his or her expectations. Perception is defined as the process by which an individual selects. and persistence of effort toward attaining a goal. and interprets stimuli into a meaningful and coherent picture of the world.
INDUSTRY PROFILE 1.1 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. life insurance in India was defined and driven by only one company. With the Insurance Regulatory and Development Authority (IRDA) Bill 1999 paving the way for entry of private companies into both life and general sectors there was bound to be newfound excitement. Today.2 A Brief history of the Insurance Sector The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.3% in 2002-03. was at an abysmal 22% of the insurable population. The industry presented a huge opportunity.the Life Insurance Corporation of India (LIC).and new success stories. .1. 1912: The Indian Life Assurance For over 50 years. for instance. Clearly insurance is on a growth path. Life insurance penetration. just three years since their entry. Some of the important milestones in the life insurance in India are. The percentage of premium income to GDP. Tracing the developments in the Indian insurance sector reveals the 360degree turn witnessed over a period of almost two centuries. and life insurance has emerged as the dominant contributor to this growth. However. far exceeding expectations. 1. their cumulative share has crossed 13% (source: IRDA). which was just 2.3% in 2000-01 rose to 3.
30 crore showing 74.15881. when the industry was opened up to the private players. 25191. 898.14 crore in 2002-03 with the withdrawal of the guaranteed return policies. Rs.80 crore during the financial year 2005-06 as against Rs.31 per cent. and Rs.56637. PREMIUM UNDERWRITTEN BY LIFE INSURERS The life insurance industry recorded a premium income of Rs.50 crore (4.07 crore in the year 2001-02 to Rs.48 crore which constituted of Rs. respectively. 10336. 2740.5674.47 per cent).private players have had to rise to many challenges. 6996.9. Insurance per se had lost it basic rationale: protection.62 per cent growth) 2004-05. the life insurance premium was Rs.16 crore (68. witnessed a significant shift with the single premium income rising to Rs. 194.11 per cent growth over 2003-04. Though it went up marginally in 2003-04 to Rs.82854. Rs. single premium and renewal premium to the total premium was Rs. recording a growth of 24.95 crore of first year premium. In the year2000-01.30 crore (12.5936. single premium had declined from Rs. The contribution of first year premium.16 per cent).33 crore (19. It was’t surprising then that its potential lay frozen and unexploited.36 percent). however. They were faced with attitudinal barriers towards the category and the perception that insurance was only a tax saving tool. .66653.75 crore in the previous financial year.07 crore of renewal premium and Rs.10336. Post opening up.45 crore of single premium.34. The challenge for private insurance players was to change the established category driver and get customers to evaluate life insurance as an investment-cum-protection tool.
70 (32.75) Total Premium LIC 6353342.(Rs.95) 216293.65) 8285479.10 (20.91) 7512728.05) 556457.98 (18.05 (343.80 (24.34 (127.12) 4686543.85) .99) 2621763.58 (152.83) Total 6665375.01 (20.36 (19.33 (18.70 (15.96 (19.47) Private Sector Total 67962.68) Renewal Premium 4618580.63) Private Sector 312032.74) 1978832.63 (178.62 (17.26) 5663716.49) LIC 5447422.74 (6.82 (147.34) 244070.31) 2005-06 LIC* Private Sector Total 2065306.48 (218. lakh) Insurer 2004-05 First year premium including Single premium 1734761.32 (14.25) 772750.
Insurance was nationalized mainly on 3 counts First. they were treated as substandard lives and extra premium was charged. replaces earlier act. and then general insurance was nationalized in the year 1972. Second. 1956 Government sets up LIC 1972 Non life insurance nationalized. Third.3 Brief Review of Scenario – Insurance Insurance in India started without any Regulation in Nineteenth century. 1956 Life insurance nationalized. A few British companies dominated the market mostly in large urban centers. It was story of a typical colonial era.1. with Triton Insurance Company. 1850 Non life insurance debuts. In 1999. GIC set up. 1938 The insurance act. Indian lives were not insured. 1818 The British introduce to India. government takes over 245 Indian and foreign insurers and provident societies. there were gross irregularities in the functioning of Life insurance was nationalized in the year 1956. even if they were insured. headed by former RBI governor . 1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer 1907 Indian mercantile Insurance is the first Indian non-life insurer. which forms the basis for most current insurance laws. with the establishment of the Oriental Life Insurance Company in Calcutta. 1912 The Indian life assurance companies’ act enacted to regulate the life insurance business. 1993 Malhotra committee. the private insurance companies were allowed back again into insurance sector with maximum cap of 26 percent foreign holding.
The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products.N. 1997 Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up. set up to draw up a blue print for insurance sector reforms. which are expected to be introduced by early next year. 2000 IRDA starts giving licensed to private insurers 2001 ICICI Prudential Life Insurance came into the market to sell a policy. 1. insurers start settling non-life claims in the cashless mode. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDA’s online service for issue and renewal of licenses to agents.4 The Insurance Regulatory and Development Authority (IRDA): Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. autonomy to PSU insurers.R. 2002 Banks were allowed to sell insurance plans. 1994 Malhotra Committee recommends re-entry of private players. In the private sector 12 life insurance and 6 general insurance companies have been registered . as TPAs enter the scene.Malhotra.
COMPANY PROFILE ICICI Prudential Life Insurance Company Limited (‘the Company’) a joint venture Between ICICI Bank Limited and Prudential plc of UK was incorporated on July 20. the company had issued 100. The Company Is licensed by the Insurance Regulatory and Development Authority (‘IRDA’) for carrying life insurance business in India. 2002.2. 1. 1956 (‘the Act’). symbolized trust and was easily recognized and understood. the need was to build a brand that was relatable to. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. a little over a year since its launch. a premier financial powerhouse and prudential plc. It launched a corporate campaign ICICI Prudential also made using the . From its early days. The company was granted a certificate of Registration by the IRDA on November 24. 2000 as a company under the Companies Act.200 million on a sum assured of over Rs. 2000 and eighteen days later. ICICI Prudential seemed to have the wherewithal for a large-scale business. a leading international financial services group headquartered in the United Kingdom (UK).23 billion. By March 31. When the company began its operations. issued its first policy on December 12. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). The company brings together the local market expertise and financial strength of ICICI Bank and Prudential’s International life insurance experience.000 policies translating into premium income of approximately Rs.
With the authorized capital of the company standing at Rs. creating a distribution network and deploying resources that would further its goal. 500 million. to offer customers the most flexible life insurance policies in the country. ICICI Prudential increased its capital base by Rs. ‘the calling card of the company’ saw the brand awareness scores almost at par with its 40-year-old competitor. The success of the campaign. ICICI Prudential continues to have the highest capital base amongst all life insurers in the country. pioneering market-linked products and pension plans. The theme of protection was also extended to subsequent product and category specific campaigns –from child plans to retirement solutions –which highlight how the company will be with its customers at every step of life. The challenge ICICI Prudential now faces is to retain its top-notch position and continues to deliver the finest life insurance and pension solutions to its ever-growing customer base. developing products. From day one. For the year ended March 31. togetherness and all that is Indian. The company has a network of over 72. 888 crore. trust.theme of ‘Sindoor’ to epitomize protection. The sum assured in force stands at Rs.45. its ninth capital hike. In February 2004. It swiftly revised and added to its initial range of products.000 advisors. Apart from ramping up thoroughly training its advisors.2. bringing the total paid –up equity capital to Rs. 6.750 million. 2006. 412 crore of weighted new business premium and wrote 837. endearing itself to the masses. the company garnered Rs. as well as 9 bancasurance partners and over 200 corporate agent .963 policies. 1185 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. the company has unflinchingly focused on being massmarket player. the company has twelve ‘Bancasurance’ partners –the largest in the country. ICICI Prudential’s equity base stands at Rs. 12 billion.
.20 billion. 2004 with a total received premium income of Rs. ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. making it clear leader in the segment.4. it has one of the largest distribution networks amongst private life insurers in India. ICICI Prudential closed the financial year ended march 31.and broker tie-ups.9 billion. with a wide range of flexible products that meet the needs of the Indian customer at every step in life. It was also conferred the ‘Outlook Money-Best Life Insurer’ award for the second year running.000 with a total sum assured in excess of Rs. For the past five years. driven mainly by the company’s range of unique unit-linked policies and pension plans.5 billion. in the year 2003/04 it was adjudged Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand Survey’ by AC Nielsen ORG-MARG). ICICI Prudential has retained its position as the No. and is a clear assurance of ICICI Prudential’s ability to meet its obligations to customers at the time of maturity or claims. 9. To add to its achievements. ICICI Prudential’s success has been meteoric. The total number of policies issued stands at more than 780.160 billion. Beginning operations in December 2000. 7. New business premium income shows a 106% growth at Rs. Today. up 135% last years total premium income of Rs. The company’s retail market share amongst private companies stood at 36%. with branches in 54 cities. The AAA rating is the highest credit rating. The company is also proud to have won Silver at EFFIES 2003 for its ‘Retire from work. becoming the number one private life insurer within months of launch.1 private insurer in the country.
Within six months. . direct marketing and corporate agents. it has also tied up with NGOs. The company has 9 bank partnerships for distribution. as well as over 200 corporate agents and brokers. South Indian Bank. This has been the driving force behind its multi-channel distribution strategy. Federal Bank. and Jammu in the north to Trivandrum in the south. and some co-operative banks. it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers. having agreements with ICICI Bank. MFIs and corporate for the distribution of rural policies. ‘Retire from work. which includes advisors. ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. ICICI Prudential was also short-listed to the final round for its ‘Sindoor campaign in EFFIES 2002. Notably. not life’. having commenced operations in 132 cities and towns in India. The Company’s penetration of the retirement market was driven by the focused approach towards creating awareness through sustained campaign. great strides in the retirement solutions and pensions market.not life’ campaign. Bank of India.000 insurance advisors to interface with and advise customers. Lord Krishna Bank. thus reducing dependency on any one channel. ICICI Prudential’s success is rooted in its philosophy to always offer the customer a choice. the campaign rewarded ICICI Prudential with an increased share of 23% of the total pensions market and 78% amongst private players. banks. stretching from Bhuj in the west to Guwahati in the east. In fact. ICICI Prudential has recruited and trained more than 72. Further. ICICI Prudential was the first life insurer to invest in multiple channels and offer the customer choice and access.
As of December 31. The aim was to encourage people to view insurance not as a compulsory tax saving instrument. but as a means to lead a worry-free. policy holder and unit holders world wide. Prudential has brought to market an integrated range of financial services products that now includes life assurance. Hong Kong. India. provides retail financial services products and services to more than 16 million customers. the communications task was to build credibility. Singapore. 2005. mutual funds.PRUDENTIAL plc. through its business in the UK and Europe. the US and Asia. At the time of launching operations. investment management and general insurance. Brand-building in a complex category like life insurance is an uphill and multi-faceted task. the company had over US$ 400 billion in funds under management. the Philippines. Thailand and Vietnam. Korea. In Asia. banking. Malaysia. Promotion: ICICI Prudential is a case study in how advertising and marketing can play a vital role in re-shaping an industry. It has demonstrated how an industry where the customer was nothing more than a policy number has changed to one where ‘customer preference’ rules the roost. secure life and in the . so as to give the customer the confidence that it was ‘a company that could be trusted to invest funds with’. Japan. Established in London in 1848. pensions. Indonesia. Prudential is the leading European life insurance company with a vast network of 23 life and mutual fund operations in twelve countries –China. Taiwan.
create the differentiator for brand ICICI Prudential. Brand Values: Market Research reveals that the values people associate with ICICI Prudential are. The campaign featured a significant competitive advantage.process. CUSTOMER SERVICE AND OPERATIONS The Operations department oils the work processes between the customer and the company to ensure consistent and quality service to the customer. indeed. throughout life’s ups and downs. the company attached a creative of a bitten apple to Mumbai’s ubiquitous lunchboxes. and showcased products from different segments. is taking into the market place. the Operations department interfaces betweenthe . The advertising idea was encapsulated in the symbol of protection –the ‘Sindoor’. It is a powerful proposition. The Company recently tied up with the Forbes Six Sigma rated Dabbawalla organization in Mumbai for a direct marketing exercise. The brand proposition for all the campaigns was reflected in the line: ‘Suraksha: Zindagi ke har kadam par’. This campaign contributed extensively to raising brand awareness and creating a distinctive identity for the company. It worked wonderfully with Mumbai’s office-goers and one that translated into substantial business for the company. To streamline the operations. one. the sound financial backing and credentials of ICICI Prudential. which ICICI Prudential. In a Unique effort to create awareness about a tax saving product. those that the company hopes to project: lifelong protection and value for money. The core value is protecting your loved ones.
The Vision at Customer Service is to deliver ‘World Class Service’ at every opportunity.clients and the agents. Customer Care and Query Resolution Unit are all committed to providing effective solutions to over lakhs of customers across the country. Outbound Call Centre. the branches and the underwriters. Information Technology The Information Technology function at ICICI Prudential is committed to enable business through the use of technology. It is segmented into 4 groups to enable highest levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in designing better product offerings to endusers. and network services to the whole organization. This team works as an in house R&D Solution Group. software. IT Infrastructure group is responsible for providing hardware. scalable and highly available platform for deployment of business application. This group runs the 'Digital Nervous System' of the Enterprise at the highest levels of efficiency and provide robust. the Solutions Group. Units such as the 9 to 9 contact centres. and manages work. . exploring new technological initiatives and also caters to information needs of corporate functions in the organization.Web that provides real-time information to customers and is responsible for customer relationship management. IT Architecture & Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole.
The Direct marketing team was set up to generate high quality leads for profitable business. consumer research. . media planning & buying and Public Relations. that helps develop and nurture ICICI Prudential's corporate identity while effectively communicating its varied product offerings to the customer. Finance Finance function in ICICI Prudential is committed to create an infrastructure that is aligned to shareholder expectations. This includes driving the budgeting process. Channel marketing provides support to the sales force by streamlining the design and development of collaterals and sales tools across distribution channels. channel support. Finance basically comprises of four functions. . funds management. The Accounts function includes preparation and maintenance of financial records. providing strategic inputs for decision-making and management reporting and analysis. Internal audit provides assurance to the management over the organizations' control framework and include process. The Brand and Communications team is in charge of advertising.brand and media management. and expense processing and treasury operations. This includes reviewing compliance requirements and supporting the ethical framework of ICICI Pru life. Compliance ensures that every action is within the regulatory framework. The team achieves this through target database acquisition and communicating customized product information through e-mailers.Marketing The Marketing function at ICICI Pru covers an array of activities . Corporate Planning and MIS provide feedback on business strategies. direct marketing and corporate communications. telemarketing and innovative direct mailers.
e. Stages in Policy Issuance 1) Proposal A Proposal Stage is the First stage before the policy is issued at COPS. the application form is received by COPS. but it is pending for issuance due to further clarifications required from the customer. 4) Issuance Issuance means a policy that is issued to the Customer by Central Ops.Human Resource The people strategy of ICICI Prudential is “To build a committed team with a culture of innovation. 2) Login A proposal. At this stage. It is then sent back to the Advisor for completion. compensation system and a segmented training architecture enable it to deliver value to the organization. which is complete i. HR is now committed to building capability through state of the art processes.. A robust performance management system. is called a Login 3) Reject An Application gets rejected at the Branch Ops level due to necessary details not filled in the form or necessary documents not submitted are a Reject. duly filled with all necessary documents attached to it & accepted by the Branch ops. With its initial focus on operational excellence to deliver benefits and services to staff members. The Human Resource Function at ICICI Prudential drives the people strategy of the business. . learning and growth.
Protection plans.2. It has thus built a flexible portfolio of products that can be customized to cater to varying needs of people at each stage. but without customer-friendly. ICICI Prudential has launched a handful of products that are analyzed below: ICICI Prudential's life insurance products may be loosely categorized under three forms: pure life insurance products without an investment angle to them. innovative products. standard products such as money-back and endowment policies. A strong brand certainly boosts sale. Advisors can offer a complete range of products – Savings plans. and. a product that is a mix of a cumulative investment scheme and an insurance product. ICICI Prudential’s product range has been developed on the understanding that different people have their own sets of needs at various stages of their lives. and thus ensures protection in every step of life. Child plans. even the best brand would not last long. and Retirement plans – and tailor a flexible solution to meet customers’ changing needs at every stage of life. Single Premium Bond: The Single Premium Bond is the name of a policy that combines the features of an investment in a cumulative deposit scheme with that of an insurance product.4 PRODUCT/SERVICES PROFILE ICICI Prudential’s ultimate promise is financial security. Market-linked plans. In fact. Policyholders are required to pay a one-time premium based on a target sum . pioneering the concept of ‘riders’ and soon after introduce comprehensive market-linked and retirement plans. ICICI Prudential was the first to un-bundle product benefits. finally. The company’s philosophy has been to help customers understand their financial needs and work closely with them to customize a product that would meet.
On maturity date. Savings Solutions Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of protection. Life Guard offers absolutely no investment-related return and is suitable for individuals looking for an unadulterated insurance package. feature-packed savings plan that offers 3 levels of protection as well as liquidity options. to create a customized solution for each policyholder. Cash Plus is a transparent.assured. The insurance part of the package comes in the form of death benefits that are paid in the case of the demise of the policyholder. the maturity value is also paid in addition to the death benefits Life Guard policies: The company offers two pure life insurance products that have an umbrella name. Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative. Its products can be enhanced with up to 5 riders.5 per cent the sum assured. The other requires regular premium payments that are returned at the end of the policy. customercentric products that meet the needs of customers at every life stage. The size of the death benefit is linked to the number of years left for the policy to expire. Life Guard. One of them involves a one-time premium for which there are no maturity benefits. At maturity. expenses for a child’s higher . the policyholder gets the sum assured and guaranteed additions that work out to a compound return of 4. Save ‘n’ Protect is a traditional endowment savings plan that offers life protection along with adequate returns CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child’s marriage.
Each offers 4 fund options –Preserver. It is available in 3 options –level term assurance with return of premium and single premium. Invest Shield Life is a Unit Linked plan that provides capital guarantee on the invested premiums and declared bonus interest. Invest Shield Gold is a Unit Linked plan that provides capital guarantee on the invested premiums and declares bonus interest along with limited premium payment terms.education or purchase of an asset. Protection Solutions Lifeguard is a protection plan. Home Assure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner. Child Plans Smart Kid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the . invested Premier Life is a limited premium-paying plan that offers customers life insurance cover till age of 75. Balancer and Maxi miser. which combines life insurance cover with the opportunity to stay. Protector. Lifetime and Lifetime II offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Lifeline Super is a single premium Unit Linked Insurance Plan. Invest Shield Cash is a Unit Linked plan that provides capital guarantee on the invested premiums and declares bonus interest along with flexible liquidity options. which offers life covers at very low cost.
policy. with flexibility in both the accumulation and payout stages. Health Solutions Health Assure and Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policy holder with financial assistance.000 u/s 80C. . Health Assure Plus offers the added advantage of an equivalent life insurance cover 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. Market-linked retirement products Lifetime Pension II is a regular premium market-linked pension plan. The policy is designed to provide money at important milestones in the child’s life. Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. Invest Shield Pension is a regular premium pension plan with a capital guarantee on the investible premium and declared bonuses Golden Years: is a limited premium paying retirement solution that offers tax benefits up to Rs 100. Retirement Solutions Forever Life is a retirement product targeted at individuals in there thirties. Lifeline Pension II is single premium market linked pension plan. Smart Kid plans are also available in unit-linked form – both single premium and regular premium. Secure Plus Pension is a flexible pension plan that allows one. irrespective of the actual medical expenses.
Accident and disability benefit: If death occurs as the result of an accident during the term of the policy. If the death occurs while traveling in an authorized mass transport vehicle. Accident Benefit: This rider option pays the sum assured under the rider on death due to accident. ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps provide affordable cover to members of a group. Flexible Rider Options ICICI Pru Life offers flexible riders. the beneficiary receives an additional amount equal to the rider sum assured under the policy.ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The benefit under the policy is paid to the beneficiary nominated by the Member on his/her death. depending on the specific needs of the customer. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. the beneficiary will be entitled to twice the sum assured as additional benefit. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. The cover could be uniform or based on designation/rank or a multiple of salary. . which can be added to the basic policy at a marginal cost.
Random Sampling selected hundred Respondents and Questionnaire were Administered to them. and Cash Plus REVIEW OF LITERATURE To get better understanding of research study it is needless to say that one has to concentrate on the empirical evidence. In the year 2003 R. Mohamed Ibrahim conducted survey on market strategy of insurance policy in Trichy. Benefits are payable to the insured for medical expenses prior to death Income Benefit: This rider pays the 10% of the sum assured to the nominee every year. Fayasudeen conducted study on customer satisfaction of insurance service in Chennai city. 50 respondents were selected by random sampling and questionnaires were administered to them. Given below are the brief reviews of related researcher work. which have been conducted earlier in this regard. In the 2001 M.Critical Illness Benefit: Protects the insured against financial loss in the event of 9 specified critical illnesses. Majority of the respondents are satisfied with overall performance of the service provider. in the event of the death of the life assured. till maturity. These are the findings of the study. . J. They are highly interested to invest in finance plan. The Business people are using the insurance. The sample size is two hundred respondents’ data collected is of primary questionnaire method. The study shows that Businessmen are in the top for using insurance. The findings were that the advertisement given by the company is not adequate for researching all the potential customers. The study shows that 70% of respondents using insurance. So a careful study has been made by the researcher to review the various studies. In the year 2005. Secure Plus. It is available in Smart Kid. Kumar conducted the survey of insurance companies in Chennai. Respondents were not satisfied with of private company.
4. To find out the people’s perception about life insurance. 5. To understand Consumer buying behavior 7. As all the researches are based on some and my study is also based upon some objective and these are as follows. 6.RESEARCH METHODOLOGY STATEMENT OF THE PROBLEM “To study the awareness of insurance sector and in particular the Awareness of ICICI Prudential Life Insurance Co. To come out with conclusion and suggestions based on the analysis . 2. To understand the insurance business and products of ICICI Prudential life insurance co ltd. . 3. 1. among the people of Tiruvarur District” OBJECTIVE OF THE STUDY For every problem there is a research. To find out what respondents expect from life insurance. To find out whether people were really aware of life insurance. To find out how people think about private life insurance.
40% of the respondents are between 25 and 35 years of age.OF. 29% of the respondents are more than 45 years of age. 20% of the respondents are between 35 and 45 years of age.TABLE NO: 1 AGE OF THE RESPONDENTS: PARTICTULARS Less than 25 25 – 35 35 – 45 Above 45 TOTAL NO. .RESPOND ENT 11 40 20 29 100 PERCENTAGE 11% 40% 20% 29% 100% ANALYSIS: From the survey it was found that amongst 100 respondents 11% of the respondents are less than 25 years old.
GRAPH NO: 1 AGE OF THE RESPONDENTS .
OF.TABLE NO: 2 QUALIFICATION OF THE RESPONDENTS: PARTICUALR Graduate Post Graduate Diploma Other discipline TOTAL NO.RESPONDENT PERCENTAGE 52% 29% 8% 11% 100% 52 29 8 11 100 ANALYSIS: From the survey it was found that amongst 100 respondents 52% of the respondents were graduate 29% of the respondents were postgraduate 8% of the respondents were diploma 11% of the respondents were other discipline .
GRAPH NO: 2 QUALIFICATION OF THE RESPONDENTS: .
. 12%of the respondents are choosing for maturity date.RESPONDENT 60 20 12 8 100 PERCENTAGE 60% 20% 12% 8% 100% ANALYSIS 60% of the respondents are choosing for risk coverage.TABLE NO: 3 BENEFITS OF CHOOSING THE PARTICULAR PRODUCTS PARTICULARS Risk coverage Additional benefit Maturity date Sum Assured TOTAL NO. 8%of the respondents are choosing for sum assured.OF. 20%of the respondents are choosing for additional benefits.
GRAPH NO: 3 BENEFITS OF CHOOSING PARTICULAR PRODUCTS: .
19% of the respondents say that disadvantages in insurance plan is unable decide premium.OF. 14% of the respondents say that disadvantages in insurance plan are high-risk coverage at high premium.TABLE NO: 4 DISADVANTAGES IN INSURANCE PLANS PARTICUALRS Liquidity Lapsation Unable to decide premium High risk coverage Fixed Term TOTAL NO. 12% of the respondents say that disadvantages in insurance plan is fixed term . 20% of the respondents say that disadvantages in insurance plan are lapsation.RESPONDENT 35 20 19 14 12 100 PERCENTAGE 35% 20% 19% 14% 12% 100% ANALYSIS: From the survey it was found that amongst 100 respondents 35% of the respondents say that disadvantages in insurance plan are liquidity.
GRAPH NO: 4 DISADVANTAGES IN INSURANCE PLANS .
RESPONDENT 40 25 10 11 5 9 100 PERCENTAGE 40% 25% 10% 11% 5% 9% 100% ANALYSIS: From the survey it was found amongst 100 respondents 40% of respondents say that they want to invest in R.TABLE NO: 5 INVESTMENT AVENUES PARTICUALRS Recurring Deposit Equity Fund Balanced Fund Mutual Fund Debt Fund Cash Fund TOTAL NO.D 25% of respondents say that they want to invest in equity 10% of respondents say that they want to invest in balanced fund 11% of respondents say that they want to invest in mutual fund 5% of respondents say that they want to invest in debt market 9% of respondents say that they want to invest in cash .OF.
GRAPH NO: 5 INVESTMENT AVENUES: CHI-SQUARE TEST .
Sample: Sample size = 100 Hypothesis: Ho: There is no significance difference between occupation and income of respondents for using life insurance. H1: There is a significance difference between occupation and income of respondents for using life insurance.Aim: This test aims to find out whether there is any difference between occupation and income of respondents for using life insurance. TABLE OCCUPATION / INCOME Up to 1 lakh 1 lakh -3 lakh 3 lakhs -5 lakhs 5 lakhs &above TOTAL Business man Professionals Job holders Others TOTAL 11 6 11 5 33 13 8 19 3 43 8 3 7 2 20 2 1 0 1 4 34 18 37 11 100 .
8 1.6 0.0676 0.1199 0.2 14.8769 2.73 2.36 3.9929 0.44 0.4641 9.36 0.3136 (O-E)2/E 0.44 (O-E)2 1.74 3.2117 0.48 3. .89 1.4445 Table value = 16.919 Expected frequency 11.6060 8.16 2.48 0.0216 1.CONTENGENCY TABLE: Observed frequency 10 13 8 2 6 8 3 1 11 19 7 0 5 3 2 1 TOTAL CALCULATION: Degree of freedom 5% level of significant (c-1)(r-1) =(4-1)(4-1) Degree of freedom = 9 Calculated value = 14.7 6.44 2.63 4.1285 0.1965 0.0784 1.04 0.72 12.6001 0.5170 0.2 0.5481 0.21 15.1 0.4 1.6327 0.60 0.91 7.4 5.0181 0.2571 0.7127 14.94 7.1904 1.4445 INTERPRETATION: Since calculated is greater than table.1088 0.7338 0.
1000 0.4096 0.9929 0.47 5.2209 1.2085 .6896 1.0769 0.1849 0.44 (O-E)2 0.4000 0.2482 1.2 0.0183 0.73 2.4400 1.1369 2.4918 0.1202 0.1551 0.60 0.6327 0.1600 0.3456 0.0181 5.36 10.0911 0.1024 0.80 1.3136 0.32 3.64 3.1884 3.3200 0.44 1.9600 6.40 2.0193 0.16 2.0377 0.0256 2.16 22. Chi-square table 2: PARTICULARS Upto 1 lakh Graduates 17 Post-Graduate 10 Diploma 2 Other disciplines 4 TOTAL 33 1lakh3lakh 24 12 4 3 43 3lakh5lakh 9 7 2 2 20 5lakh&above TOTAL 2 0 0 2 4 52 29 8 11 100 Contingency table: O 17 24 9 2 10 12 7 0 2 4 2 0 4 3 2 2 TOTAL E 17.Hence null hypothesis rejected so there is significance difference between occupation and income of respondents.0400 2.57 12.1600 0.5309 13.4336 (O-E)2/E 1.63 4.08 9.
Null hypothesis is accepted.05 Degree of Freedom= (c-1) (r-1) = (4-1) (4-1) =9 Calculated Value = 13.2085 Table Value = 16. FINDINGS .CALCULATION: Level of Significance 5%=0.919 INTREPRETATION: Since calculated value is lesser than the table value. Therefore there is no significant relationship between qualification and salary.
ICICI Prudential has almost its branches in urban area or metros. ltd is the largest in terms of FDI invested. when they invest money in the life insurance industry. in terms of no. So in order to increase the no. D grade cities. On an analyse and evaluation of the data collected from the respondents the following findings were found. in terms of work force. Of customer. ICICI Prudential should increase the approach towards potential customers.FINDINGS: 1. . All these positive stand of the company place at the number one position. On second aspect whatever amount of money ICICI Prudential save. About 43% of the respondents have an average annual income RECOMMENDATIONS TO COMPANY: Since ICICI Prudential Life Insurance co. So it’s necessary to increase the market share of the company. can be used to increase the no. Of customers. in terms of market share. 2. Total 100 respondents have been approached out of which 40% of the respondents are between 25 to 35 years. 5. About 52% of the respondents are graduates. Since the customers think about the companies in the industry. About 37% of the respondents are jobholders. There are some recommendations. Open some more branches in semi urban and rural area. which will helpful to increase the market share of the company. For that it has to increase the branches in the semi urban cities like C. 4. Of policies. 3.
value of the unit linked plan and all other information what the customer want. ICICI Prudential has already collaborated with the ICICI bank for its Banc assurance facility and then can include another feature in it. Marketing management. Hall of Indian . payment made. ICICI bank can offer a bank account with the life insurance policy in which an ATM card will be provided. This card will have all the information regarding the policy as like future premium payment dates. money value of the policy at that date. Published by prentice. ICICI bank will get new account and ICICI prudential will be able to more efficient services to their customers BIBLIOGRAPHY PHILIP KOTLER. According to my experience in the company. This will help the customer to pay premium on time and save their losses. In order to take the advantage of being industry leader in private sector.And the rural marketing is the best option for ICICI Prudential to increase its base in the market Improve customer services. a good number of customers forget to pay their premium at time so it causes a big loss to the company. ICICI Prudential has to improve its customer services. This will be mutually helpful for both sister companies.
private Ltd. GUPTA.Schiffman..com www.R Research methodology. IRDA Journal ICICI Prudential Company magazines Newspaper and Business magazines WEBSITES www.Lobri for Whishwa prakash Eighth Edition -2004. Business statistics.in/indian insurance industry www. and INDIRU GUPTA. Published by V.2006.org _______________________________________________ . Marketing Management by Philip Kotler. Prentice-Hall India 8th Ed.google.irdaindia.iciciprulife. Pearson Education 2nd Ed Consumer Behavior by Leon G. sixth Edition .co. C.S. KOTHARI.S. publishing house.C. Tenth edition-2002.
Address 3. 5 lakhs and more 8. What is your average annual income? a. Qualification a. 35-45 d. Postgraduate 5. 45 and above _________________________________ _________________________________ _________________________________ _________________________________ 6. Business b. Above 10 members c. A saving scheme with good return c. All the above _______________________________________________ . Up to 1 lakh b. Name 2. Jobholder d. Other discipline c. A financial security for the family d._ “A study on consumer behaviour and customer satisfaction at icici prudential life insurance service in Tiruvarur District. 3 lakhs to 5 lakhs d. Age a. Risk coverage e. Diploma d. According to you life insurance is. A taxes saving plan b.occupation a. Your family size a. 1 lakh to 3 lakhs 7. a. Below 5 members b. 5 – 10 members c.” QUESTIONNAIRE 1. Professional c. Other c. Graduate b. 25 – 35 4. Less than 25 b.
Debt fund c. Recurring deposits 13. Sum assured c. According to you what are the disadvantages in an insurance plan? a. Equity fund b. Pension plan f.Have you taken any life insurance product of ICICI Prudential Life insurance? YES NO Which are in these? a. In which of the following would you like to invest? a. Mutual fund f. Unable to decide your premium e. Others __________________ 10. Unable to decide the sum assured f. Whole life plan If yes d. Cash fund e. Other disadvantages 12. Balanced fund d. Maturity date d. Risk coverage 11. Unit gains plan b. Lapsation b. Additional benefits b._ 9. Invest gain plans c. Any suggestion for ICICI Prudential Life Insurance ______________________________________________________ ______________________________________________________ Thank you for sparing your valuable time . Fixed term d. High risk coverage at high premiums g. Liquidity c. Children plan e. Are you aware of the benefits in your policy? Yes No If yes what are they? a.