PROJECT REPORT

ON
GENERAL INSURANCE &
AGENT ACQUISITION
IN

SOM-LALIT INSTITUTE OF
BUSINESS MANAGMENT

SUBMITTED BY
UJJAWAL C SHELAT

1
 CONTENT

CHAPTER Topic No. PARTICULAR

No.
CHAPTER- 1 1 Preface
CHAPTER- 2 2 Acknowledgement
CHAPTER- 3 4 Executive Summary
CHAPTER- 4 5 Introduction
6 Introduction of Insurance sector
7 Introduction of History
8 Life Insurance The Time Line
9 About Industry
10 Multiple Distribution Channel
11 Multi Channel Approach
12 Organization Chart
13 Role of Insurance
14 IRDA
15 About Co.
16 ICICI Group
17 Current Scenario
18 The Opportunity
19 About us
20 Product Basket
21 Rewards
CHAPTER- 5 22 Training
23 Responsibilities
24 Market Share
25 Awards
26 About the promoters
27 Distribution
28 Product
29 Board of Directors
30 Management Team
31 Target & Task
32 Recruitment Strategies
33 Strategies Adopted
34 Procedure of Recruitment

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 35 Analysis of Performance Vs. Target
36 Limitations
CHAPTER- 6 37 Learning at Executive Training
38 Purpose of agency development
39 Tied agency
CHAPTER- 7 40 Agent the process
41 agency channel
42 Scenario of Ahmedabad City
CHAPTER- 8 43 Findings and Solutions
CHAPTER-9 44 Conclusion
45 Executive Summary
CHAPTER-10 46 Bibliography

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 PREFACE
India is on the threshold of being an open and liberated economy.
Globalization has changed the rules of competition, forcing Indian corporations
to expand beyond their traditional markets even as the face incursion of
foreign companies at home.

True learning is born out of experience and observation. There is a

large gap between theoretical knowledge and practical knowledge about
handling and managing a business. Only bookish knowledge cannot help me in
building up an effective administrator. So as a part of the syllabus of MBA
programmed, we all students are supposed to analyze the functional working
of any of the organization which gives us an opportunity to relate theoretical
knowledge with real corporate situations. A thorough and practical study,
knowledge and learning can only be useful to become more eligible and
competitive. It also helps to improve my analytical skill, communication skill
and knowledge.

This project is totally based on primary data and secondary data. Information
about Marketing and different organizational processes has been collected
from ICICI Lombard office.
In this project I have tried to analyze how to recruit agents in context of
general Insurance Industry and different organizational processes of ICICI
Lombard and sale policies of ICICI Lombard.

4
 Acknowledgement
“Project” words seem to be gigantic. It could not be completed on my own.
This is the proper time where I want to thank all of them who have directly or
indirectly help in carrying out the activities.

It’s my delight to use the opportunity for conveying my thanks to all, who
motivate and supported throughout the project duration.

I would like to say thanks to my company guide Mr. Parad Inamdar (Sales
Manager) for his constant support and his guidance, also I extent my gratitude
towards Mr. Abhishek Shah (Unit Sales Manager) for his constant effort for
making us better all the time, I would also like to thank all the staff of ICICI
LOMBARD, especially, Ajay Sir who was constantly inspiring us for incurring our
best performance, also to Rasesh Sir, Mr. Nikhil, and also to the security staff,
Mr.Yogesh Nayak, Prahlad Bhai & Sanjay Bhai.

It’s my pleasure to say thanks to Ms. Rubi Saiyyed our SIP co-coordinator &
respected Principal Dr. Jagdish Joshipura, without help of whom I can’t see the
project to be completed. It’s their constant support and timely advises that
helped me in carrying out the project successfully.

I am very much thankful to my friends and colleague, Shaishav Dabhi, Arjun

Toliya, Ashok Chauhan, Divya Patel & Pooja Nair who have given their
constant support and motivation to do the task.

I don’t want to miss the opportunity to be thankful of the Almighty God, who
rules the world, & my family who were always been helping hand for me.
Hearty thanks to you all.

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 EXECUTIVE SUMMARY
Insurance industry in India has undergone a sea change in terms of delivering
value added services to the rising consumerism in India. The insurers are
constantly adopting innovative distribution channels in alliance with other
financial counterparts. Also new custom-made products are introduced in the
market after through assessment of current requirements of customer needs.
Insurance companies have realized the need for higher returns on life
insurance product, introduced by many insurance companies, have made
returns transparent.

Today insurance companies are getting larger share of their collection through
tied agency channel of distribution. The LIC has channel well developed and of
wide reach. The mentality of most of the people in India is that they are ready
to buy insurance from a person whom they know, who is also doing the
business for quite a time, who can give advise in financial planning, and also
collect the premium from them. This shows the importance of tied agency
channel. There is still a wide scope for private life insurers in selection of
agencies. The rural India is almost out of the private life insurer’s functional
area, though they are slowly, firmly and aggressively making their presence
felt.

The large part of the mobilization of the rupee by life insurers comes from
government employees. This is because of the fact that government gives tax
benefits if employees invest in life insurance. This is clearly reflected in the
study conducted about life time plan among the employees.

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ICICI Lombard General Insurance Company is a 74:26 joint venture between
ICICI Bank Ltd. & the $ 26 billion Canadian based company Fairfax Financial
Holdings Limited.

ICICI Bank is India’s second largest bank; while Fairfax Financial Holdings is a
diversified financial corporate engaged in general insurance, reinsurance,
insurance claims management and investment management.

Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of

the Canada’s oldest property and casualty insurer.

ICICI Lombard General Insurance Company received regulatory approvals to

commence general insurance business in August 2001

7
 INTRODUCTION

CONTENTS:

✓ INTRODUCTION OF INSURANCE SECTOR

✓ CURRENT SENARIO
✓ MAIN INSURERS New Idea of
insurance
✓ IRDA

8
 INTRODUTION TO INSURANCE
SECTOR

We face a lot of risks in our daily lives. Some of these lead to financial losses.
Insurance is a way of protecting against these financial losses. For a payment
(premium), an insurance company will take the responsibility of compensating
your financial losses.

Insurance other than ‘Life Insurance’ falls under the category of General
Insurance. General Insurance comprises of insurance of property against fire,
burglary etc.

Private Sector Market Share:

9
Take a look at these statements:

▪ You carry loan on your dream home than it is much important to

protect that house from any natural or manmade calamities by
insuring it on that home.
▪ You are securing it against the uncertainty which includes risk in it.
▪ You are carrying huge risk if you are driving car without insurance.
▪ Even your family and kids may be exposed to any risk factor which
may affect their future life and your savings too if you are not
having medical policy
▪ Medical policies are also useful for tax benefit.

If you identify any of the above need as a saving boon for you then, you shall
clearly understand the need of General insurance acts as a buffer against
uncertainty. Moreover, it can be used as tax benefit u/s 80-D. Some portion of
your policy premium is eligible for tax rebate under section 80D.

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1. What is non-life insurance and why do you need it?
Whether it is your home, your health or your business, everything is
exposed to any danger in these times. Non-life insurances you for calamities
like these at a minimal amount.

2. In what manner is a non-life claim settled?

The following steps are carried out:
➢ The claim is filed by the person suffering the loss
➢ A preliminary survey is conducted
➢ The final survey report is submitted on receipt of all your documents
➢ The claim payment is released

3. Tax implications of taking an insurance cover

A percentage of the amount that you invested mediclaim policy is
allowed, depending upon your total premium, as a tax rebate under section 88
against provisions of the income-tax liability, subject to provision of the
income-tax Act. Presently, there is a 12.36%service tax is applicable on general
insurance premium.

4. How much insurance should you have?

Insurance companies often conduct a thorough personal finance review and
use the concept of Human Life Value to ascertain the correct amount of
insurance you should have. “Human life value” is the net present value of
your potential future earning for the rest of your working life span. This is
typically a factor of your annual income.

11
5. In what manner do you evaluate the policies?
Decide the type of policy you want after asking some basic questions.
▪ What are the returns offered by the policy?
▪ What is your risk profile?
▪ Can you sustain payment of the premium amount?
▪ Is there flexibility in premium payment?
▪ How good is the surrender value of the policy?
Once you decide on these, you will be able to select better.

What is insurance?
“Insurance is a financial service for the saving of the public and providing them
with risk coverage”

Thus in insurance,

The Risk

The Insured the Insurer

General definition: “insurance is a plan by which large number of people

associate and transfer to the shoulders of all risks that attach to individuals.”—
JOHN MAGEE

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Fundamental definition: “insurance is accumulated contributions of all parties
participating in the schemes”--- D. S. HANSELL.

Contractual definition: “insurance is a contract in which a sum of money is paid

to the assured as consideration of insurer’s incurring the risk of paying a large
sum upon a given contingency”--- JUSTICE TINDAL.

PRINCIPLES OF INSURANCE
▪ Principle of utmost good faith

▪ Disclosure of all facts

▪ Principle of Indemnity
▪ Loss indemnified
▪ Not to earn profit

▪ Doctrine of Subrogation
▪ Hold negligent person responsible for the loss
▪ Prevent the insured from collecting twice

▪ Principle of Causa Proxima

▪ Cause of loss must be direct and insured

▪ Principle of Insurable Interest

▪ Direct benefit to insured from the asset insured

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Why do you need insurance cover?

Insurance provides a protection to the customers from certain and uncertain

risks. Certain risk involves events like death, retirement, pension, education,
marriage, etc. uncertain risk includes events like theft, accidents, fire and
earthquake risks.

In general insurance fire, accidents, medical claim and because of that if

third party damages occur than it also covered in it. General insurance is only
for unexpected or uncertain risks. Now there are more than 14 companies
under it. Government is more giving priority on medical policies as now
medical expenses are more expensive and for that tax benefits also available
for this kind of policies.

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 About company

ICICI Lombard General Insurance Company Limited is 74:26 joint ventures

between ICICI Bank Limited and the Canada based $26 billion Fairfax Financial

15
Holdings Limited. ICICI Bank is India's second largest bank; while Fairfax
Financial Holdings is a diversified financial corporate engaged in general
insurance, reinsurance, insurance claims management and investment
management.

Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is

one of Canada's oldest property and casualty insurers. ICICI Lombard General
Insurance Company received regulatory approvals to commence general
insurance business in August 2001. Also ICICI Lombard is No. 1 insurance
company as far as private sector is concerned. Its core competency is in highest
and fastest claim settlement which attracts most of the customers. As far as
insurance sector is concerned all the insurance companies are under common
General Insurance Company limited same as Life Insurance Corporation. There
is cut throat competition in the market as there as more than PSU as well as
private sector player in the field of insurance. Also still on 0.68% in penetrated,
so there are lots of opportunities for companies to grow and perform well with
its core competencies. Its still long way to go, because there is need of
customized insurance that will really be a boon for customer, still we can see
that there is lack of decentralization as underwriter approval are to be taken
each and everywhere. But ignoring that we can say that insurance sector is
booming like anything. And ICICI Lombard is a key player in private sector
which is capturing huge part of market. It is following various marketing

16
Strategies and huge advertisement campaign that always keeps aware to the
people about its existence and its products.

Thus there is still long way to go, also various foreign companies are yet to
come, as they seek lots of business opportunities as there is so much yet to be
explored in India.

17
(ICICI GROUP)

18
ICICI LOMBARD CORE VALUES
 INTEGRITY
 HUMANITY
 POSITIVITY
 SENSIVITY
 PASSION

Why ICICI Lombard

India's number one private general insurance company

First general insurance company in India to be ISO 9001:2000 certified
Assigned the iAAA rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128-bit encryption in case of
online data exchange
First company to provide digitally signed documents through an online
interface
Achieved financial breakeven in first full year of operations
Achieved underwriting breakeven in second year of operations

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Adjudged as the 'General Insurance Company of the Year' at the 11th
Asia Insurance Industry Awards 2007
Awarded the NDTV Profit Business Leadership Awards 2007 in the
General Insurance category on July 27, 2007
Adjudged as the most Customer Responsive Company in the Insurance
category at the Economic alConnect Customer Responsiveness Award
2006
Awarded the Best Housing Insurance in the Smart Living Awards by 360
degrees, a Times of India Group subsidiary, in Nov 2006
Awarded the Gold Shield for "Excellence in Financial Reporting" by the
ICAI (Institute of Chartered Accountants of India) for the year ended
March 31, 2006
Adjudged amongst the top three in the Insurance Website of the Year
category at the 9th Asia Insurance Industry Awards function held in
Singapore during September, 2005

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 About ICICI Lombard

 Young Company - August 2001

 Largest private sector Insurer
 Largest Capitalization in private sector
 Financial & Underwriting Breakeven in 1st & 2nd year


Pan India presence – Over 227 branches, 176 locations, and 5349 full
time employees on 30 June’07

ICICI Lombard awarded the NDTV Profit Business Leadership Award 2007
& Avaya Global Customer Responsiveness Award

International operations – UK since May’06

organizational Structure
ICICI Lombard’s organizational structure is designed to be flexible and
responsive with the ability to evolve and re-orient towards market
opportunities, while maintaining the required degree of risk management and
controls.
There are four principal groups:

Wholesale Business,

Banassurance & Retail Business,

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Rural and Agricultural Business &

Shared Services.

 The Wholesale Business Group

Focuses on large corporations and also on small and medium
enterprises, state and central governments and government enterprises.
Key products include Fire, Marine, Engineering, Liability policies and
Group schemes for employees and large scale state level health and
personal accident schemes

The Bancassurance and Retail Business Group

Delivers products through multiple channels including bancassurance,
agents, feet-on-street, telesales and the internet. The key products
include Motor, Travel, Health and Home insurance.

The Rural and Agricultural Business Group

It is responsible for reaching out to rural customers with relevant
products such as Weather insurance, Health and Personal Accident
covers.

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Shared Services
It provides support services to the business verticals.
These services include Finance & Accounts, Administration, Technology,
Operations, Reinsurance, Customer service, Human resources, Legal and
Marketing communications.

Key Products

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24
ICICI LOMBARD - Awards & Reputation’s

ICICI Lombard awarded the ‘General Insurance company of the year’

• ICICI Lombard has been awarded as the 'General Insurance Company of

the Year' at the 11th Asia Insurance Industry Awards 2007 held in
Singapore on November 5, 2007. ICICI Lombard becomes the first Indian
insurance company to win this prestigious award.

It was ICICI Lombard’s innovation that caught the eyes of the judging
panel. The innovations credited to ICICI Lombard include introduction of
biometric smart cards to rural customers for availing health insurance,
pioneering weather insurance along with the World Bank for farmers in
India and introducing online insurance for the customers.

• With more than 700 nominations received across 15 award categories

from various regions, the submissions of the short-listed candidates
were thoroughly scrutinized by the eminent judges. Audited by KPMG,
the distinguished panel of 20 judges comprised of regulators, industry
leaders, practitioners and association heads.

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Financial Highlights
Financial 2006-07 2005-06
Year
Figures in nos.
No. of policies 3,136,393 1,461,039
sold
No. of claims 642,777 243,951
handled
No. of 4,770 2,283
employees
No. of offices 220 154
Rs. in Million
Gross Written 30,035 15,920
Premium
Net Written 14, 508 7,339
Premium
Net Earned 10,667 5,277
Premium
Profit before 801 545
Tax
Profit after 684 503
Tax
Share Capital 3,357 2,450
Net Worth 9,427 3,729
Investments 17,105 9,065
Total asset 29,540 16,391
Ratios in %
Claim Ratio 76% 74%
Commission (13%) (17%)
Ratio
Expense Ratio 34% 41%
Combined 97% 97%
Rati

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 Overview of Operations

o
 Only General Insurance company having an ISO certification
 Product delivery – automated
o Web (remote access, anytime, anywhere)
o ILPOS (Point of Sale)
 Number of policies issued
: 3.2 million p.a.
 Total claims initiated
: 11,87,430
 Servicing 300 of top 1000 corporate customers,
 4 million retail customers and 100 million rural customers
 customer service
o 24x 7 call centre, branch contacts
o Loss assessment and approval decentralized for faster delivery

27
28
About Competitor

The general insurance industry grew 12 per cent till February in 2007-08 with
robust performance by private players including Reliance General, which
continues to be the fastest growing insurer. So Reliance General Insurance
Company is the main competitor in this sector as far the privet players are
concerned.

The 14 non-life insurers collected Rs 25,470 crore in premium till February in

FY'08, against Rs 24,998 crore collected in the last fiscal, according to the
industry data.

During the period, the four public sector non-life insurance companies
collected Rs 15,280 crore, as against Rs 14,686 crore in the same period last
fiscal. From this data we can say that public sector companies have greater
market share but because of cut throat competition in the sector they are not
growing as per industry rate.

The private players increased their business from Rs 7,981 crore to Rs 10,190
crore during the period. The growth in privet sector is much higher than
industry average

In percentage terms, while the public sector could increase their premiums by
just 4 per cent, nine private sector players clocked premium growth of 28 per
cent.

Private sector players' market share has grown to about 40 per cent in FY'08 so
far as compared to the public sector's 60 per cent share.

Reliance General Insurance continues to be the fastest growing insurer with a

premium collection of Rs 1,810 crore in this fiscal so far against Rs 803 crore in
the same period last year.

During the period, market leader New India Assurance premium collection
grew by six per cent to Rs 4,760 crore.

In the private sector space, the largest player - ICICI Lombard - collected nearly

29
12 per cent higher premium at Rs 3,143 crore. But still ICICI Lombard is
managed is No.1 position in spite of high competition.

In future also there are more upcoming players in this industry so competition
might increase further and because of D-Tariff the insurance might get chipper
further. New players like Apollo General insurance company and Future Group
are already started their products in General insurance field.

THE RATEWAR: A bruising rate war in non-life insurance is set to eat into the
industry’s growth and imperil balance sheets of insurers. In the scramble to get
new clients and retain the existing ones, companies are offering to cut old
tariff rates by up to 75%. While discounts are squeezing margins at one end,
the increase in rates by re-insurers is pushing up costs for insurers.

Existing Players: (Government non life players)

Oriental Insurance Company Limited

New India Assurance Company Limited
National Insurance Company Limited
United India insurance Company Limited

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Non life insurers (Private Players)

Baja Allianz General Insurance Company Limited

IFFCO- Tokyo General Insurance Company Limited
National Insurance Company Limited
New India Assurance Company Limited
Oriental insurance Company Limited
Reliance General Insurance Company Limited
Royal Sundaram Insurance Company Limited
Tata AIG General Insurance Company Limited
United India Insurance Company Limited
HDFC Chubb General Insurance Company Ltd.

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32
S.W.O.T. ANALYSIS OF ICICI Lombard
GIC Ltd.

Strength
Assigned the iAAA rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128-bit encryption in case of
online data exchange
First company to provide digitally signed documents through an online
interface

Weakness
 Have to take underwriters approval for every process
 Less agent payout that is (10 %to15%)

33
Opportunity
 95% 2-wheelers are not insured
 Beneficial in business sector because of corporate growth
 Low market share in insurance sector
 There is lots of innovation to be done
 Customized insurance solution
 Getting Fleet owners

Threats
 There will be too many competitors in future
 Because of d-tariff margin may further shrink
 Threat of new entries
 Threat of substitute products
 Government Policies
 PSU Companies

34
35
 OBJECTIVES OF MY SIP TRAINING IN ICICI
LOMBARD
As far as my objective of doing my SIP in ICICI Lombard was concerned, I was
always keen to know how the Insurance Company actually works, how the
funda of minimizing loss due to risk is works, also I was eager to know
Corporate Culture, and ICICI Lombard is much reputed firm as far as Insurance
Sector is concerned.

My basic objective was to apply my theoretical knowledge into practical

aspects; it was time to convert the 1year MBA programme into reality. As it
was time take the real corporate experience for my future career is concerned.

Other than this I was also interested to know how the Agent Acquisition helps
the company to generate business for them. What are the criteria of making
agents, what is process of making the Agent, how to attract an agent and
convince him for doing business with the company. Also I wanted to explore
the convincing skill which is very much important criteria as far as my
marketing career is concerned.

Thus with the blend of constant support of our company guide and my hard
work I think I was quite successful in achieving my objective. I acquired
valuable knowledge of marketing skills, and also I came across to the various
product line knowledge of ICICI Lombard and also how to survive in cut-throat
competition.

My study and research under the topic Agent Acquisition is very wide topic,
but still I managed to take the crux of the study, as the greatest limitation of
the study is the time duration of my SIP which was for 2months.

Now I shall discuss the details of my study under the topic I have chosen as
Agent Acquisition. I would like to start for the beginning of the topic. The
knowledge I acquired during my SIP is shown below.

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 SCOPE
Purpose of Making of agents

Expansion of business has always proved as a sign of profit, same is in the

business of insurance. Agency development means recruitment of educated,
aware individuals with marketing flair, an elite group. In short companies are
recruiting an advisor who comes with a handsome business; in return they get
commission, incentives, and other benefits also.

The targeted segments are:

 LIC Agents
 R.T.O agents
 Stock Brokers
 Tax consultants/CA
 Fleet Truck Owners
 Education consultants
 Financial service executives (Savings account etc.)
 Tour & Traveler
 Global consultant
 Auto Dealers
 Used car dealers
 Overseas consultant
 Earth movers
 Contractors
 Labour Union leader

37
And there are many other upcoming segments in which agent acquisition is
proving to be boon for the company for generating more and more business.

Tied agency channel

An Agent
Today’s insurance agent has to know which product will appeal to the
customer, and also know his competitor’s products in the same space to be an
effective salesman who can sell his company’s product, and himself to the
customer. To the average customer, every new company is the same.
Perception about the public sector companies are also cemented in his mind.

The new companies are looking for educated, aware individuals with marketing
flair, an elite group.

Role of agents
The insurance agent is the interface between the customer and the insurance
company. The agents should be able to accomplish the following to improve
service.

 Assessing and analyzing the client’s risk profile

 Finding the best products available in the market
 Negotiating the best deal available
 Continuity of service throughout the period of insurance
 Claims advisory service

38
In tied agency thus an agent has important role to play. It becomes his duty to
give the customer best service. Once that is done a customer is satisfied and
this in longer period is bound to bring in more business.

General insurance agency: the process

Once the right profile is found and he/she is ready to take up the agency there
is a fixed process that has to be followed.

Documentation:

A form has to be filled by the person who intends to take up the agency. He
has to submit documents related to Address proof, Education proof, Pan Card
copy, Photo and Cancel cheque.

Training:

Once the form is filled up and necessary documents submitted according to

IRDA guidelines the individual has to undergo a 50 hours training. Thus an
individual undergoes a total 50 hours or two weeks training which is
compulsory and product training is given by company.

39
IRDA Exams and license:

Once the training has been imparted to the individual then to start working as
a general insurance agent than he needs an IRDA license which is given upon
clearing the IRDA exam taken by IRDA itself. This exam is written as well as
online. After clearing exam person gets the license. It is then that individual
become a General insurance agent and can start working.

Facilities provided by the company

 There is 100% management support to agents. For them agent service

desk is also available from there they can get solve any query and get
premium quotation.
 Company gives brochures, pamphlets and other material free of cost.
 In the initial time the unit Sales Manager or Unit Sales Manager also go
with the agent to reap the business and thus gives the practical
knowledge of marketing.
 At any point of time the unit managers are ready help their agents.

40
Returns to an agent

A life insurance advisor earns in form of commissions, bonus, and incentives.

This commission is counted as some percentage of the policy premium. This
commission varies with different policies of a company as well as the policy
terms. It’s high in the year of policy, then decreases and later becomes
constant. For example an advisor can reap 10 to 15 % of commission.
An agent gets the commission till the client pays the premium. According to
IRDA norms certain cap for commission has fixed on various policies.

Apart from regular commission the advisors also gets the gifts as per their
performance. But this is totally an individual life insurance companies’
discretion. Different companies may adopt different strategies for the advisors.

Recruitment strategies
In recruitment of the agents I have targeted the fleet owners who are the
transporter. They own more then 15 trucks with them so they are the initial
beneficial for acquiring the agency, as insurance on the goods carrying vehicle
is compulsory and also they are exposed to n number of risk as they are
constantly into to & fro on the highway road. The main benefit of targeting this
segment is that the owner is itself aware about the risk he is going to have.
And also he has a satisfaction that his property is insured and it would not
affect his financial position is case of any mishaps.

And the best part is that the agent himself can take 20% discount on his Own
Damage premium amount, which is know as OD discount. Still not over, he will
also get 10% payout of the business he gives to the company, so overall he will
be benefited by paying 30% on his own policy premium amount. And not only
will this but they also get No Claim Bonus (NCB) if there is no claim history in

41
Past. Also company is giving RED CARPET service which is only for the fleet
owners as they are considered to be the Gold / Platinum category of the agent.

The red carpet service is the extra benefits which includes many things which
are not rendered by any other competitors.

It includes following benefits:

 Free cashless service in the more than 2000 garages across the country.
 Access to the nearest garage at the highway
 No documents required at the time of surveying
 Free eye check up camp for the drivers
 Free driving training at advance level for the drivers
 Payment of 50% of claim amount at the time of service if claim is more
than 1lakh Rs.
 Settling claims in less than 21days.
 He can insure the vehicle more than 5years of age which no company in
private sector does.

Thus the red carpet service is proving to be win-win situation for both the
company and the agent himself as this is very much beneficial scheme for the
agent himself who is a fleet owner. And thus he is easily convinced however it
is still difficult to trace fleet owner as they are quite busy in their schedule
itself, so taking a prior appointment is difficult task to do.

Also I would like to introduce other specialty which helps agent as a back up
support.

42
 ➢ They can insure vehicles above the age of 5 years which generally
Reliance and Iffco tokio is not taking.

➢ We have agent desk department who is catering agent queries such like
policy, premium calculation if they have any problem regarding their
status and also their payout and claim problems.
➢ The retention team work as a back up support for the agent which deals
in renewing the old policy of the old customer. So the retention team
intimates the agent and inform about the nearest renewal date and
amount which the agent has to collect from his customer.

Procedure of Recruitment:

To achieve a goal successfully one need to sketch a perfect roadmap & also
adopt a strategy to the destination and also need to follow the path strictly.
My plan to achieve target is as follows:

a. Generating Database

In the very first step of recruiting agents is to prepare contact numbers’

list for that I have used natural market contacts, referral contacts and
also I have done cold calling for that. In cold calling I take name and
number of that person and also profile of that person.

b. Tele calling

Tele calling is one way of convincing customers by doing phone calls and
explaining whole procedure of becoming agents and their pay roll
structure and how ICICI providing service to agents. And if possible tele
callers may take appointment so that face to face conformations can be

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 Beneficial to understand the policy. This support was given by Divya
Patel & Pooja Nair who was on Agent Service Desk support.

c. Appointments

After Tele calling if customers are interested they give appointment for
meet. Both our self and customer conveniently decide the place for
meet.

d. Collecting documents and filling the forms

There are criteria for customer for becoming a. So, after fulfilling criteria
forms are filled and documents attached.

e. Submitted forms in company

After attaching documents and taking signature of customer forms are

submitted in the company. This is to be handover to the operations
department, as entry would be done in MIS after checking the details and
eligibility of the Agent from the document he has submitted, his signature is
verified, also his identity is cross checked, by the document itself or but
telephonic questioning if required.

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 Limitations

• Generating the Data base of the customers is a quite time consuming for
me.
• Appointments at improper timings. Set the time according to the
customer convenience.
• Getting Quality Customers who would really trust IPRU was very difficult
at initial phase. Aware them about the other company policy and
differentiate between IPRU and its competitors products.

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 Learning at Executive Training

 Improvement in my convincing skill.

 Time management.
 Leadership.
 Get the knowledge of corporate world.
 Working effectively and efficiently.
 Team work
 Working according to the company policies.
 Regular follow up the agents who are in pipeline.
 It is really important to know what the customer’s requirement is.
 How business & ethics work together
 Regular reporting with my company guide.
 Interacting with different type of agents
 Provide me an opportunity to apply the concepts learned in real –life
situations.
 It sensitizes us about nuances of work place by the time-bound projects
assigned by the company.
 It creates awareness about the strengths & weaknesses in the work
environment
 It provides a platform to develop a network while OJT (On-the-job-
Training), which would be useful in enhancing career prospectus.
 Know the day-to-day functions of the company.
 It provides a unique opportunity to get exposed to corporate culture,
professional experience & professional behavior & putting the
theoretical concepts learned in the classroom for developing managerial
skills.

 To gain a deeper understanding of the work culture, deadlines, pressure

etc. of an organization.

It gives a flavor of teamwork, organization culture, team dynamics, result

orientation, organizational pressures, complexities in achieving the desired
results etc.

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 It provides direct exposure to the execution & support functions of the
departments.
 It provides a good scope for developing necessary managerial skills &
positive attitude.

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 Looking forward in insurance market in 2010
The Indian non-life market has experienced significant changes that are likely
to influence the country’s development of its insurance market in the medium
to long term.
So far, the entry of a large number of Indian and foreign private companies has
led to greater choice in terms of products and services for Indian consumers. A
growing realization of the benefits and importance of sophisticated insurance
and reinsurance tools has broadened the pool of potential buyers of insurance.
Given this backdrop, the Indian insurance market has experienced
considerable growth since its liberalization in 2000. Over the next three years,
the Indian insurance market is. Likely to see its process of maturation
accelerate.

Regulatory drivers
Regulatory changes in the four areas discussed in the previous section –
products, market players, distribution and reinsurance – will drive change in
the Indian insurance market in the medium term. In some areas, such as
detariffication, the majority of reform has already taken place, although the
consequences are yet to be seen. In other areas, while the reform is promised,
it is difficult to anticipate when it will occur. As a result, there is a lot of
uncertainty in the Indian insurance market. The four main areas of change are
now considered in turn.

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 Detariffication

The process of detariffication, first begun in 1994, has gradually moved the
Indian market to a position where the overwhelming majority of insurance is
transacted without a tariff. As of
1 January 2007, tariff rates have been withdrawn from all lines of business
except for motor third-party (TP) liability. While hitherto, insurance
professionals had limited exposure to
Sophisticated technical pricing based on actuarial data analysis, in a detariffed
market, this is increasingly a necessity for businesses in order for them to
remain profitable.

Foreign ownership

As discussed earlier, foreign ownership is currently restricted to 26%, although

there are plans to increase this limit. The typical structure adopted by the
Indian government for the Phasing in of foreign-owned entities across other
industries (such as construction and pharma) has been as follows:

1. Phase I: Allow foreign entity to have 26% stake in joint

venture.
2. Phase II: Increase foreign entity maximum stake from 26% to 49%.
3. Phase III: Increase foreign entity maximum stake from 49% to 74%.
4. Phase IV: Allow 100% foreign-owned entity to operate in market.
In January 2007, the Indian government reiterated its claim to
Increase the cap from 26% to 49%

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In January 2007, the Indian government reiterated that it would introduce
legislation to hike the FDI cap in the insurance sector to 49%. No time limit has
been set for taking a decision on it although consultations with the industry
and stakeholders are underway. There is ample opposition from the left, but
analysts expect that this change will be made effective in. The next one to two
years. The effect of this change will be twofold. Firstly, it will increase the focus
of the existing Private insurers operating within the Indian market. As
discussed in the previous section, the private companies are increasingly
diverging on strategy as they are influenced by their foreign partners. It is likely
that increased foreign ownership will lead to differentiated strategy, more
niche players and a wider product range.

Secondly, it is expected to increase the supply of capacity in the market as new

investors will decide to enter the market. Indeed, a number of insurers have
commented that, as soon as foreign companies are allowed more than 26%
ownership, they would move as quickly as possible to participate in the
market.

Broker distribution
The broker channel was recognized in 2002; again, foreign capital providers
can take up to a 26% stake in an Indian brokerage operation. There is also no
indication at the time of writing as to whether the constraints placed on
Brokers, such as high set-up costs and activity restrictions will eventually be
removed. What remains clear, however, is the fact that in a detariffed market,
the broker has more opportunity to demonstrate value to both the customer
as well as the insurer. Value-added services can be in the form of consulting
regarding risk management responsibilities as well as more traditional
insurance-related roles.

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 Compulsory Sessions

In line with detariffication, there has been some progress in reducing the
compulsory session to the GIC from 20% to 15%.
The 20% compulsory cession has been reduced to 10% in 2007
However, a complete abolishment of the remaining 15% compulsory cession to
the GIC is unlikely to occur in the medium term. Although it would seem
natural to liberalise this position as the broader non-life market begins to open
up, the Indian government and Legislator reiterated their desire to retain
insurance premium in India in the central legislation of 2000, and there is no
reason to believe that this position has since changed. In addition, many local
companies are happy with the automatic reinsurance support that they receive
from the GIC.

The PSUs are pleased that they are able to cede 15% of their poorly performing
motor book on to their parent whereas the growing number of private insurers
are grateful for the additional capacity that they receive from the GIC’s de
facto proportional treaty coverage. While a further reduction to 10% is
expected in 2008, abolishing compulsory cessions
Altogether is not at the top of the legislator’s agenda.

Growth drivers

Overall, sales of both commercial and retail products are expected to benefit
from India’s surging economic output over the medium term. Economists
expect India’s output to grow by around 6% per annum over the next ten to 15
years, and the political and business environments are expected to stabilize
further.79 The combination of this economic growth, Increased stability and
the liberalization of the non-life sector is expected to provide premium growth
in the range of 10% to 15% per annum over the short to medium term.

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Personal lines insurance premium growth drivers:

Personal lines products are expected to develop quickly as Indians grow

wealthier although probably not of immediate interest to Lloyd’s underwriters,
a developing economy’s initial growth in insurance penetration is often driven
by personal lines products, especially motor cover as this tends to compulsory.
Indeed, India’s fast-developing private insurers expect retail products to
provide them with their main source of premium growth over the medium
term.

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 Conclusion
It was really a great experience to be associated with such a great corporate
company. Its was a great pleasure to work with reputed firm ICICI Lombard
which is No. 1 player as far as private company in insurance sector. Also I am
once again thankful to my company guide and staff of ICICI Lombard who really
worked hard as far as my training was in process. I have learned enormous
things during these 2 months, which will prove a solid platform as far as my
future career is concerned. It really enhanced my marketing skills, and also it
gave me solid motivation to face the critical situation, also I came across to the
various people and cultures which are in the corporate culture. I can say that
SIP was like net practice before playing any big game. It gave me ample of
knowledge regarding my study on Agent Acquisition.

I also got experience of hardcore selling as it was part of my SIP training. Thus
this 2months of SIP has pumped in lot of motivation and enthusiasm in me. It
also upgraded my confidence level and gave me boosting to face new
challenges and gave me path of not only surviving but also to grow in this
competitive work. I can say that my dedication and hard work towards my
decided task really gave me good result in the end.

I also learned to work in a team and how to cope up with team spirit. Positive
reinforcement was the most motivating factor which makes us to work in a
healthy atmosphere.

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 BIBLOGRAPHY

Address:-

ICICI Lombard General insurance co. LTD.

6th floor,
BBC Tower, Law Garden Road,
Near Mithakhali Six Road,
Ahmedabad.

WEBSITES

✓ www.ICICIbank.com

✓ www.icicilombard.com

✓ Search engine like: www.google.com

Magazine

✓ The Economic Times

✓ The business times

News paper

✓ The Times of India

✓ Gujarat samachar

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