Professional Documents
Culture Documents
Jayesh Bba
Jayesh Bba
On
Consumer Perception towards Services
Offered by ICICI Prudential Life
Insurance
Submitted in partial fulfillment for the award of degree of
Bachelor of Business Administration
(2021-2024)
Signature :
Name of the Faculty : Ms. Shalini Tyagi
Designation :
DECLARATION
This is to certify that I Jayesh Maddheshiya, student of Dr. K.N. Modi Institute of
Engineering & Technology studying in BBA 5th Semester, Roll No- 210922105033
has prepared a project report entitled “Consumer Perception towards Services Offered
by ICICI Prudential Life Insurance” for the partial fulfillment of degree of Bachelor
of Business Administration from Chaudhary Charan Singh University, Meerut.
I hereby declare that the project report submitted to the Chaudhary Charan Singh
University, Meerut is a record of an original work done by me under the guidance of Ms.
Shalini Tyagi (Assistant Professor, Department of Business Studies).
The matter presented in this project work has not been submitted by me for the award of
any Degree or diploma/ associateship/ fellowship and similar degree or any other
institute.
Signature of Candidate
Jayesh Maddheshiya
I am highly obliged to Mr. Jayesh Maddheshiya, my prime internal guide for her
invaluable support; guidance and knowledge that she has shared with me thereby aiding
me in making this project a success along with other employees who provided their
utmost working knowledge, which has broaden my area of interest and benefited mostly
in completing the project.
Lastly, I thank faculty and staff members of KNMIET, Modi Nagar which gave me an
opportunity regarding training purpose and helped me in building some experience in my
career.
Jayesh Maddheshiya
University Roll No- 210922105060
COMPANY CERTIFICATE
Signature :
Name of the Faculty : Ms. Shalini Tyagi
Designation :
EXECUTIVE SUMMARY
The main purpose of the study is to identify the Consumer Perception towards Services Offered
by ICICI Prudential Life Insurance which will help the company to make its marketing strategy.
The study will help the company to make strategies and new products/plans and emphasize on
their weaker areas. Also, the brand Image of various other companies will be known which will
help the company to identify its competitors and find where their competitor stands out in the
mind of the consumer. Most of the people have invested in Life Insurance and need more
emphasis on more Returns and Transparency in the Insurance Industry.
INDEX
5.1) Findings
5.2) Conclusion
5.3) Suggestion
BIBLIOGRAPHY/ REFERENCES 62-64 Pages
Some insurance policies cover groups of people, ranging from a few to thousands of
individuals. These policies usually are issued to employers for the benefit of their employees or
to unions, professional associations, or other membership organizations for the benefit of their
members. Among the most common policies of this nature are group life and health plans.
Insurance carriers also underwrite a variety of specialized types of insurance, such as real-estate
title insurance, employee surety and fidelity bonding, and medical malpractice insurance.
In addition to individual carrier-sponsored Internet sites, several “lead-generating” sites have
emerged. These sites allow potential customers to input information about their insurance policy
needs. For a fee, the sites forward customer information to a number of insurance companies,
which review the information and, if they decide to take on the policy, contact the customer with
an offer. This practice gives consumers the freedom to accept the best rate.
The insurance industry also includes a number of independent organizations that provide a wide
array of insurance-related services to carriers and their clients. One such service is the
processing of claims forms for medical practitioners. Other services include loss prevention
and risk management. Also, insurance companies sometimes hire independent claims adjusters to
investigate accidents and claims for property damage and to assign a dollar estimate to the claim.
Now in India there are totally 28 players including 14 Life and 14 General Insurance Companies.
And Life Insurance is one of the most common forms of insurance.
ICICI Prudential Life Insurance Company is an emerging star in the Private players with the
competition being Global in nature
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDAI 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.
The other decisions taken simultaneously to provide the supporting systems to the insurance
sector and the life insurance companies were the launch of the IRDAI’s online service for issue
and renewal of licenses to agents.
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,
which are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDAI has put in a
framework of globally compatible regulations. In the private sector 12 life insurance
and 6 general insurance companies have been registered.
IRDAI ENABLERS:
In the new market set up, the IRDAI’s role is that of an enabler. The new insurers will conduct
insurance business in India according to the healthy norms prescribed the IRDAI. Regulations
for all insurance intermediaries will specify sales-norms. Guidelines for the code of conduct for
the surveyors and loss assessors will help all concerned. Efficiency will be promoted in the
conduct of insurance business. Professional organizations connected with insurance business will
be regulated. The role of IRDAI, besides regulating the market, it also to develop it. The IRDAI
has the task to promote fair competition in hindrance to monopolistic insurance market. In such a
fast- developing scenario, the prospects appear to be brighter for both insurers and the customers.
1.2) INTRODUCTION TO THE COMPANY
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's
foremost financial services companies and Prudential plc - a leading international financial
services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 42.72
billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. It began its
operations in December 2001 after receiving approval from Insurance Regulatory Development
Authority (IRDA).
The Company issued its first policy on 12 December 2000. ICICI Prudential Life Insurance is a
joint venture between the ICICI Group and Prudential plc, of the UK. ICICI started off its
operations in 1955 with providing finance for industrial development, and since then it has
diversified into housing finance, consumer finance, mutual funds to be a Virtual Universal Bank
and its latest venture Life Insurance.
ICICI Prudential is the first life insurer in India to receive a National Insurer Financial Strength
rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted
as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg
survey of 'Most Trusted Brands'. As it grows, its distribution, product range and customer base, it
continues to tirelessly uphold its commitment to deliver world class financial solutions to
customers all over India.
FOREIGN PARTNER:
Established in 1848, Prudential plc. Of U.K. has grown to be the largest life insurance and
mutual fund Company in U.K. Prudential plc. Has had its presence in Asia for the past 75 years
catering to over 1 million customers across 11 Asian countries. Prudential is the largest life
insurance company in the United Kingdom (Source: S&P's UK Life Financial Digest, 1998).
ICICI and Prudential came together in 1993 to provide mutual fund products in India and today
are the largest private sector mutual fund company in India.
Their latest venture ICICI Prudential Life plans to take care of the insurance needs at 26 various
stages of life Prudential plc, one of the UK's leading financial service providers, issued life
insurance policies in Poland prior to World War II through Prudential Assurance Company
Limited and its subsidiary "Przezomosc", a now defunct Polish company in which Prudential
Assurance acquired a controlling interest in 1927.
Pizezomosc continued to issue life policies in Poland until 31 December 1936, and Prudential
Assurance issued life policies in Poland from 1 January 1933 to 31 December 1936. With effect
from 1 January 1937 both companies ceased to accept new life business and the administration of
the two portfolios was combined.
Based on notes of surviving records that existed in Prudential Assurance's London office there
were 4,623 policies in force in Poland at the outbreak of World War II in 1939. Over 33% of
these policies have been settled since the early 1950s despite significant gaps in our records, due
in no small part to their destruction in Poland under Nazi Occupation. The assets of Prudential's
Polish Business were seized by the Nazi occupying authorities, following the invasion of Poland
in 1939. Unlike some major European insurers Prudential did not trade in Nazi occupied Europe.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier
financial powerhouse and prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance 27 companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).
ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. Its Assets Under Management (AUM) at June 30, 2022
were `2,300.72 billion. In FY2015 ICICI Prudential Life became the first private life insurer to
attain assets under management of `1 trillion.
ICICI Prudential Life is also the first insurance company in India to be listed on National Stock
Exchange (NSE) and Bombay Stock Exchange (BSE). For the past seven years, ICICI Prudential
has retained its position as the No.1 private life insurer in the country, with a wide range of
flexible products that meet the needs of the Indian customer at every step in life.
The ICICI Prudential edge comes from its commitment to its customers, in all that it does - be it
product development, distribution, the sales process or servicing. Here's a peek into what makes
it leader.
The products have been developed after a clear and thorough understanding of customers' needs.
It is this research that helped it develop Education plans that offer the ideal way to truly
guarantee child's education, Retirement solutions that are a hedge against inflation and yet
promise a fixed
income after retirement, or Health insurance that arms one with the funds that one might need to
recover from a dreaded disease.
Having the right products is the first step, but it's equally important to ensure that its customers
can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the
length and breadth of the country, and it partners with leading banks, corporate agents and
brokers to distribute its products.
Robust risk management and underwriting practices form the core of its business. With clear
guidelines in place, it ensures equitable costing of risks, and thereby ensure a smooth and hassle-
free claims process.
Entrusted with helping its customers meet their long-term goals, it adopts an investment
philosophy that aims to achieve risk adjusted returns over the long-term.
Last but not the least, its strong team is given the opportunity to learn and grow, every day in a
multitude of ways. it believes that this keeps them engaged and enthusiastic, so that they can
deliver on their promise to cover customers, at every step-in life.
To build an enduring institution that serves the protection and long-term saving needs of
customers with sensitivity.
Our core values are Customer First, Humility, Passion, Integrity, and Boundarylessness. Values
guide our actions and define the way we work. We encourage all our colleagues to exemplify
and role model the Values.
ICICI Prudential was amongst the first private sector insurance companies to begin operations in
in the fiscal year 2001 after receiving approval from Insurance Regulatory Development
Authority (IRDA).
On a retail weighted received premium basis (RWRP), it has consistently been amongst the top
companies in the Indian life insurance sector. Its Assets Under Management (AUM) at June 30,
2022 were `2,300.72 billion.
ICICI Prudential Life operates on the core philosophy of customer-centricity. It offers long-term
savings and protection products to meet the different life stage requirements of its customers. It
has developed and implemented various initiatives to provide cost-effective products, superior
quality services, consistent fund performance and a hassle-free claim settlement experience to its
customers.
In FY2015, ICICI Prudential Life became the first private life insurer to attain assets under
management of `1 trillion. ICICI Prudential Life is also the first insurance company in India to be
listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
ICICI Prudential Life is also the only private life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest
rating and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at
the time of maturity or claims.
For the past seven years, ICICI Prudential Life has retained its leadership position in the life
insurance industry with a wide range of flexible products that meet the needs of the Indian
customer at every step in life.
Year Particulars
SALES DISTRIBUTION
TIED AGENCY:
Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large advisor
force that targets various customer segments. The strength of tied agency lies in an aggressive
strategy of expanding and procuring quality business. With focus on sales & people
development, tied agency has emerged as a robust, predictable and sustainable business model.
BANK ASSURANCE AND ALLIANCES:
ICICI Prudential was a pioneer in offering life insurance solutions through banks and alliances.
Within a short span of two years, and with nearly a large number of partners, B & A has emerged
as a vital component of the company’s sales and distribution strategy, contributing to
approximately one third of company’s total business.
The business philosophy at B&A is to leverage distribution synergies with our partners and add
value to its customers as well as the partners. Flexibility, adaptation and experimenting with new
ideas are the hallmarks of this channel.
ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life) is promoted by ICICI
Bank Limited and Prudential Corporation Holdings Limited.
ICICI BANK
ICICI Bank is a leading private sector bank in India. The Bank’s total assets stood at ₹ 17,526.37
billion (US$ 231.2 billion) at March 31, 2022 and profit after tax of ₹ 233.39 billion (US$ 3.1
billion) for the year ended March 31, 2022. ICICI Bank currently has a network of 5,418
Branches and 13,626 ATMs across India.
CSR has been a long-standing commitment at the ICICI Group and forms an integral part of the
Company’s activities. The Group’s contribution to social sector development includes several
pioneering interventions and is implemented through the involvement of stakeholders within the
Company, the Group and the broader community.
The Company’s CSR activities are primarily focused in the areas of education, health, skill
development and sustainable livelihood, financial inclusion, capacity building for CSR and other
activities as the Company may choose to support in fulfilling its CSR objectives.
The Company supports programs and initiatives keeping “protection” as the core proposition and
cornerstone of all its CSR initiatives since “protection” is core to the Company’s business. The
CSR policy of the Company sets the framework guiding the Company’s CSR activities.
The CSR committee is the governing body that articulates the scope of CSR activities and
ensures compliance with the CSR policy.
In March 2019, ICICI Prudential Life Insurance geared up for a CSR initiative with a
campaign named "Suna Kya? Body Ka Alarm" (transl. Listen to your body) in association
with Times Spotlight. This initiative is urging Indian people to pay attention to their body
signs and encourages them to be prepared financially. The company has also partnered
with SRL diagnostics for discounted health check-up packages.
In March 2020, ICICI Prudential Life Insurance partnered with Times of India for
conducting the Mission Healthy India Survey 2020 to find out if people were paying
attention to the signs their body gives that can help them catch the onset of a critical
illness early. This awareness initiative from the company urges people to take good care
of their health and be financially prepared against any uncertainty.
MANAGEMENT PROFILE
BOARD OF DIRECTORS
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the
finance industry both from India and abroad.
Mr. M. S. Ramachandran
(Chairman, Independent Director)
Mr. R. K.
Nair (Independent Director)
Mr. N. S. Kannan
(Managing Director & CEO)
MANAGEMENT
Mr. N. S. Kannan
(Managing Director & Chief Executive Officer)
Life insurance plans from ICICI Prudential Life helps you secure your family’s financial future
and also fulfil their dreams and aspirations. So, wait no more. Sabse Pehle choose from our wide
range of plans to lead a worry-free life now and forever.
#SabsePehleLifeInsurance
RETIREMENT PLANS
Insurance sector also contributes in sustaining and promoting the financial market and support
the development of the national economy. Prior to year 2000, Life Insurance Corporation of
India (LIC) has monopoly over Life Insurance industry in India. LIC was nationalized in 1956.
The structure of Indian insurance has transformed during past two decades from a monolithic to
a highly competitive. Globalization and Liberalization created competitive environment in the
country by allowing private insurance players having alliance with foreign insurance experts in
the life insurance market in India.
The Insurance Regulatory and Development Authority Act 1999 (IRDA Act) was passed by
parliament of India to regulate and promote insurance market in India. At present there are
twenty four players (one public and twenty three private) in life insurance market performing
their operations in Indian insurance market and offering different type of products to the
customers.
Due to the advancement of the information technology, Consumers are now more aware of the
options available in services market and the service provider. Due to rising consumer awareness
and entry of private life insurance companies in Indian life insurance market, customers’
expectation and perception of quality of services from the life insurance companies have also
changed. It is not easy for any player to survive in the market for long-term without fulfilling the
expectations of the customers. Under this situation insurance companies are now trying to
change their focus from product orientation to customer orientation. In today’s cut-throat
competition service quality play an important role to attract and retain customers. Quality has
become a strategic tool in obtaining efficiency in operations and improved performance in
business. Quality has a positive impact on profitability, market share, and return on investment,
customer satisfaction, and future purchase intentions (Rust and Oliver, 1994).
Information technology have empowered the globe is providing quick and access to information
and services to customers in all companies including insurance. Insurance companies have
realized that competition can be well managed by differentiating the quality of service which in
turn helps in establishing and sustaining satisfying relationships with policyholders.
According to Kotler (2000) “service delivery is the major driving force to business sustainability.
This is due to the fact that customers derive their perceptions of service quality on the levels of
satisfaction they experience with a particular business Customers will give business high marks
for its service when it meet or exceed their service desires” With a greater choice and an
increasing awareness, there is a continuous increase in the customers’ expectations and they
demand better quality service. Therefore, to sustain in the market, service quality becomes a
most critical component of competitiveness for Life Insurance companies.
CONSUMER PERCEPTION
Customer awareness or perception as a concept is of universal concern for all economies of the
world. In the context of a booming Indian economy and unprecedented growth being witnessed
by Insurance industry - especially life insurance -, it would be interesting to examine this concept
in depth. Perception is defined as “the process by which an individual receives, selects,
organizes, and interprets information to create a meaningful picture of the world”.
Perception is the process by which an individual select, organizes and interprets information to
create a meaningful picture of the world. Individuals act and react on the basis of their
perceptions, not on the basis of objective reality. Hence, for a marketer to know the customers’
perception is more important than their knowledge of objective reality with high life insurance
businesses offering comparable rules.
Product variation is tough in progressively reasonable market. Therefore, insurance businesses in
India are now moving from a manufactured goods centered method to a purchaser centered
strategy. The effort is on increasing consumer fulfillment by improved purchaser preservation,
loyalty and profitability. Through online insurance people no information more about the policy
and they can avoids spending more time for it, which indulges them for not seeking the help of
intermediaries.
Competition between the Life Insurance Corporation of India and the private sector insurers
continues to intensify. While innovative products have been underpinning private insurers’
premium growth, the threat of losing market share has also led to more aggressive pushes by LIC
to stay competitive such as to develop new distribution channels like bancassurance. As a result,
though LIC lost significant market share to private companies in the post-liberalization period, it
still retains a commanding position in the life insurance segment.
While, most of the product innovations came from the private players initially, LIC joined the
race soon in order to protect its turf. While LIC still dominates in segments like endowments and
moneyback policies, private insurers have already wrested a significant share of the annuity and
pension products market. Such intense competition has resulted in faster premium growth as well
as deeper penetration for the entire market.
At the same time, the profile of Indian customer is also evolving. Customers are more actively
managing their financial assets and are increasingly looking to integrated financial solutions that
can offer stability of returns along with more comprehensive protection. Insurance has emerged
as an attractive and stable investment alternative that offers total protection for life, health as
well as wealth. These factors have contributed to changes in demand for insurance products.
While traditional life insurance products like individual insurance, whole life insurance and term
life insurance continue to remain popular to this day, new products such as single premium,
investment-linked, retirement products, variable life and annuity products are on a growth
trajectory.
What consumers think about a product and what it actually is affects their actions. Individuals
make decisions and take actions based on what they perceive to be reality is very important to
marketers to understand the whole notion of perception and is related concepts, so they can more
readily determine what factors influence consumers to buy. The companies are trying to trigger
growth in rural areas. They are identifying the fact that rural people are now in the better position
with disposable income.
The low rate finance availability has also increased the affordability of purchasing the insurance
products by the rural people. Marketer should understand the price sensitivity of a consumer in a
rural area. The buying behavior of the rural consumers in India is influenced by several factors,
such as socio-economic conditions, cultural environment, literacy level, occupation,
geographical location, extensive efforts on the part of sellers, exposure to the media, etc.
The Indian insurance industry continued to face various problems such as low penetration and
low premium to GDP ratio. Growth was also hampered by the existing customer perception that
life insurance was a tax saving tool. In present Indian market, the investment habits of Indian
consumers are changing very frequently.
The consumer’s perception towards Life Insurance Policies is positive. It developed a positive
mind sets for their investment pattern, in insurance policies. Still some actions are needed for
developing insurance market. Insurance industry has to go ahead.
CHAPTER 2
LITERATURE
REVIEW
2) REVIEW OF LITERATURE
Seth (2020) states that insurance industries in India are using social media in marketing
operations only, to tell their customers about the launch of a new product or any milestone
achieved. The research has been conducted by keeping in mind the situation of the COVID-19
pandemic and this further can be extended on a larger level by studying more social media
channels.
Also, demographic factors influence the behavior while making a buying decision of an
insurance policy. Yadav, (2019)
Samarasinghe et al. (2018) in their study attempted to explore determinant of service quality of
Life Insurance Business. Analysis of the Study revealed that employee of Insurance company
communication styles; behavior and financial strength pay more consideration in purchasing life
insurance policy. The intangible factors which were not considered by SERVQUAL scale
developed by Parasuraman and Colleagues to test service quality have influenced here the
customers to satisfy with life insurance policies.
Consumer behavior and satisfaction are feebly correlated in the case of motor insurance; says
Das (2017), it would be imperative to research whether this holds in the case of the life insurance
industry or not.
Pragati and Monica made evaluation of financial performance of selected private general
insurance companies in India using earning and profitability parameters of CARAMEL model.
Claim incurred ratio, expense ratio, combined ratio, underwriting result ratio and investment
income ratio have been calculated and one-way canvased. The results of the study suggest that
private general insurance companies should focus more on the reduction of expenses and
increase investment income. (Monica, 2017)
It has been observed by Delafrooz (2017)) that increased use of social media to sell causes the
increased use of social media by consumers.
Mangayarkarasi (2015) in her study conducted that there was enhanced concentrate on the client
and personal firms centered lots of attention on extensively coaching their agents for his or her
purpose. Before easing, distribution was entirely through individual agents. When the gap up the
arena for personal participation, several new channels of distribution have opened.
Makhulo (2014) says that social media has changed the way people communicate and share
information globally. Social media is being used for communication, transaction, and
relationship building in insurance companies. Increased use of social media is also helpful
in gaining a
competitive advantage against competitors in terms of higher brand awareness and building a
brand image.
Prakash and Sugumaran (2014) assessed the perceptions and expectations of customers in
SERVQUAL parameters with reference to Life Insurance Companies in Chennai, India. The
study concluded the expectation levels of customers on the factor’s communications;
competence, reliability, security and courtesy are significantly higher.
Anjor et al (2014) evaluated the impact of service quality and customer satisfaction by using
model of SERVQUAL with five dimensions (Parsuraman et al 1988) from the five cities of Uttar
Pradesh and concluded that “the expectations are higher than perception in terms of service
quality in insurance sector”.
Shamsher Singh et al. (2014) studied the customer’s perceptions towards Service Quality of Life
insurance companies in Delhi NCR Region.
The findings of study show four major factors which influence customer perception of service
quality namely, tangibility, responsiveness, assurance, convenience, and empathy. Study found
that expect age of respondents the demographic factors had no significant impact on the
customer perceptions of service quality.
Kuldeep Chaudhary et al. (2014) examined the expected and perceived service quality in Life
Insurance Corporation of India. The results showed that there exists a significant negative gap in
service quality expected and perceived by the customers of the Life Insurance Companies.
Dr. Ashfaque Ahmed (2013) in his study “perception of life insurance policies in rural India”
reveled that there is low level of awareness and understanding of life insurance products. There
are various factors that influence consumer thinking when they are planning to invest in
insurance scheme. Most of the customers show their interest in life insurance having higher risk
coverage and also for good return with safety. The roles played in perception of life insurance
policies in rural market by members of the family varies with knowledge parameters as well as
with the typed of products and sometimes with the company name also. While several
psychological variables are useful in obtaining into consumer’s perception towards buying life
insurance policies in rural areas. The insurance company name also plays an important role in
purchasing.
Pramod Kumar Singhal and Assitha Gupta (2013) in the study ‘Assessment of Service Quality in
Insurance Sector – A Case Study of Private Companies of Haryana State, assessed service
quality
in insurance sector using SERVQUAL scale, the study concluded that the people have a negative
impression towards the private insurance companies.
S.Pushpalatha P. Hima Jagathi (2013) are discussed that rural market is vibrant and holds
tremendous potential for growth of insurance schemes with easy premium. The marketing
challenge lies in creating insurance awareness and the identified agents for promoting life
insurance. The preferential factors for opting insurance can be identified as tax planning and risk
cover in spite of various factors like financial compensation, maximum return and financial
safety.
There is a major demand for traditional policies than newly emerged plans such as ULIPS and
children plans. Agent’s behavior along with brand image made the respondents to choose an
insurance company and to select an appropriate plan.
Ramanathan, K.V. (2011) research has resulted in the development of a reliable and valid
instrument for assessing customer perceived service quality, awareness level, and satisfaction
level of customers towards life insurance industry. Here, service quality needs to be measured
using a six dimensional hierarchal structure consisting of assurance, competence, personalized
financial planning, corporate image, tangibles and technology dimensions.
Epetimehin M Festus (2011) discussed about importance of marketing segmentation as a tool for
improving customer satisfaction and retention in insurance service delivery. This paper
suggested that in spite of egalitarian approach that underpins the marketing of insurance, market
segmentation may be used to better serve the needs of their customer.
Selvavinayagam, K. and Mathivanan, R. (2010) article has revealed that the competitive climate
in the Indian insurance market has changed dramatically over the last few years. At the same
time, changes have been taking place in the government regulations and technology. The
expectations of policyholders are also changing. The existing insurance companies have to
introduce many new products in the market, which have competitive advantage over the products
of life insurance companies.
Yusuf et al. (2009) found that the attitudes of Nigerians towards Insurance institution and
services were mostly negative because of their poor quality services rendered to the customers.
Senthilet al., (2009) concluded in their article, “Critical success factors of agents in Life
Insurance Services” that agents are the real success of Life Insurance products. The study
focused on the identification of critical success factors of the agents, the impact of factors on
their performance, and the discriminated success factors among the agents of public and private
sector players. The
study concluded that the important critical success factors of agents are service diversity, service
quality, trust, communication, and customization.
All the above mentioned factors have a significant and positive impact on their performance. The
important discriminated factors among the agents of public and private players are the
customization and service quality. The agents of public players are far better in the above factors
compared to their counterparts (i.e. agents of private sector players).
Praveen Sahu, Gaurav Jaiswal and Vijay Kumar Panday (2009) in their article, “A Study of
Buying Behavior of Consumers towards Life Insurance Company”, Prestige institute of
Management and Research, Gwalior, revealed that in present Indian market, the investment
habits of Indian consumers are changing very frequently. The individuals have their own
perception towards various types of investment plans.
Vijaykumar A. (2007) in his article entitled "Globalization of Indian Insurance sector-issues and
challenges" found that the success of the insurance industry will primarily depend upon meeting
the rising expectations of the consumers who will be the king in the liberalized insurance market
in future.
Namasivayam et al., (2006), examined the socioeconomic factors that are responsible for
purchase of life insurance policies and the preference of the policyholders towards various types
of policies of LIC. From the analysis, the study concluded that factors such as age, educational
level and sex of the policyholders are insignificant, but income level, occupation and family size
are significant factors.
According to Lovelock et al (2006) if a firm wants to retain customer, they are needed to provide
better quality of services to their customers through quality improvement programs and should
continuously enhance benefits desired by customers. At the same time, productivity
improvement efforts reduce the cost. The customers are satisfied with the firm if the services
deliver by organizations are better than their competitors.
Sharma (2005) performed a study on ‘Insurance perspective in Eastern-up’ with the objective of
probing into the reasons or the factors behind the purchase of the insurance product. It was found
that according to 93.86% of respondents’ insurance policies are considered indispensable for risk
protection.
Raman and Gayatri (2004) have observed the customers’ awareness towards new insurance
companies. They found that 53% of the respondents belong to the age group below 30, 24% to
the
age group 31-40, 2% belong to the age group of 41-50 and the rest of the respondents belong to
the group of ‘above 50’.
They also observed that a large percentage of the insured respondents (32%) are professional,
and 56% of the respondents are married. It is also found that 52% of the respondents have taken
a policy to cover risk and 44% of them to avoid tax and the remaining to invest their surplus
amount
A study conducted by Patil (2003) revealed that the insurance coverage of agricultural groups
and agricultural labor is very low. The performance of children-related policies such as Jeevan
Kishore, Jeevan Balya, etc., is very poor except the children money back policy, which has also
not been contributing significantly. The demonstration of product features by the agents is not
satisfactory.
Bhave Ashis (2002) in his study revealed that to keep existing customer is costly than to win new
ones. Major attributes of customer satisfaction are product quality, product packaging, keeping
delivery commitments, price, responsiveness and ability to resolve complaints and reject report
and overall communication, accessibility and attitude.
Zeithmalet al., (2000) revealed that, due to the heavy competition, service quality has become an
important tool to measure the service quality and recognized as a key factor to popular area of
academic investigation and has been in maintaining sustainable competitive advantage and
satisfying relationships with customers.
Augustyn and Ho (1998) concluded the SERVQUAL model was the most useful tool for
defining customer satisfaction.
Keaveney (1995) classified customers’ reasons for switching service providers into eight general
categories, such as pricing, inconvenience, core service failure, failed service encounters,
response to failed service, competition, ethical problems and involuntary switching.
Lehtinen and Lehtinen (1991) again included three components-” interactive, physical, and
corporate qualities”.
According to Carman (1990), “the items used to measure service quality should reflect the
specific service setting under investigation, and that it is necessary in this regard to modify some
of the items and add or delete items as required”.
A. Parsuraman, Leonard L. Berry, and Valarie A. Zeithaml, (1988) in their research explained
about development of 22-item instrument in the measurement of service quality perceptions of
customers in service and retail firms, which was known as “SERVQUAL”.
In exploratory research based on the focus groups the authors identified 10 determinants of
service quality that included tangibles, reliability, responsiveness, access, competence, courtesy,
credibility, security, communication, and understanding the customer and later on they find that
some dimensions are overlapping so they reduced into five dimensions namely tangibles,
reliability, responsiveness, assurance and empathy.
The authors proposed that SERVQUAL scale can use in vast range of service and retail firms to
measure the customer expectations and perceptions of service quality as it had a variety of
potential applications.
The definitions of service quality imply the identification and satisfaction of customer needs and
requirements. “The service quality can be defined as the difference between predicted or
expected service and perceived service. In the services marketing literature, service quality has
been reported as a second order construct, being composed of several first-order variables”
(Parasuraman, 1985).
A satisfied insurance customer is not necessarily a loyal one, according to the first world
Insurance Report, a groundbreaking international study of over 10,000 insurance customers,
insurers and distributors released by Capgemini, one of the World’s foremost providers of
consulting, Technology and outsourcing services and the European financial Management and
Marketing Association (FEMA) today (www.capgemini.com/world insurance report).
CHAPTER 3
RESEARCH
METHODOLOGY
3) RESEARCH METHODOLOGY
Every project work is based on certain methodology, which is a way to systematically solve the
problem or attain its objectives. It is a very important guideline and lead to completion of any
project work through observation, data collection and data analysis.
Therefore, to survive in the market and to rise, their ultimate aim must be to understand the of
perception of customers. Measuring level of perception among the customers is a key issue. This
brings out the areas where they have to improve their services in order to retain their customers.
This study deals to find out the Consumer Perception towards Services Offered by ICICI
Prudential Life Insurance.
To know the services provided by ICICI prudential Life Insurance and varied reasons of
availing life insurance plans.
To identify customers’ perceptions towards service quality of ICICI Prudential Life
Insurance Company.
To study the needs of Customers.
To examine the Awareness of Customers to Life Insurance (ICICI Prudential)
This study has a wider scope among the insurance sector. The study which focuses on various
aspects such as competitive position of ICICI, strengths and weaknesses of insurance covers,
customer’s perception, etc. also holds good for other companies in the life and non-life insurance
segment.
The outcome of the study, which are based on the above aspects can be utilized by the marketing
department of both life and non-life insurance companies.
The result of this research would help the company to have a better understanding about the
consumer’s perception towards life insurance.
The study helps the company by creating awareness about the consumers of different ages and
income levels.
The study also enables the company to focus the consumer’s preferences and expectations on the
product which they offer.
1. Primary data: These data are those which are composed for the initial point and so unique in
life. The primary data are the firsthand data. It is collected from customers and distributors of the
company through personal interviews, surveys, and questionnaire. The study technique of collect
data is based on the questioning of respondents.
They are asked diversity of questions concerning their performance, intention, approach,
consciousness, and motivation. In prepared data set, an official survey is ready thus the course is
straight. The survey intended for this scheme consists of questions base on a variety of parameter
which a relationship manager would think before advertising a joint fund. Each query is based on
unlike variables like asset decision, selling decisions, company policies, service issues etc.
2. Secondary data: The secondary method is the method in which data is already in existence. It
is also known as secondhand data. This study is to collect data regarding buying behavior of the
customers of the ICICI Prudential Life Insurance. The facts & data were taken from magazines,
annual report, and journals of company.
1. Primary data
2. Secondary data
1) PRIMARY DATA:
Questionnaire: Primary data was collected by preparing questionnaire for customers. The
questionnaire was filled through telephonic research.
2) SECONDARY DATA: The secondary data was obtained from books, articles in journals,
newspapers, magazines and other official sources and records. Various Websites. were also
searched to collect the relevant information like www.iciciprulife.com.
3.8) SAMPLING TECHNIQUE
Simple Random Sampling method has been used in the present study. Sample study helps the
researcher to know about the characteristics of universe. Sampling unit was Customers of ICICI
Prudential Life Insurance. A sample plan is an exact a map for obtain an example from a known
populace. Since, it is not feasible to study the entire population, hence researcher drew a sample.
To conduct this study sample size of 50 respondents were selected from Panipat Region through
the probability random sampling method.
The main statistical tools used for the analysis of data in this project are:
Pie Charts
Bar Diagrams
NO. OF
RESPONDENTS
Male
46%
54% Female
INTERPRETATION:
Out of 50 total Respondents who were part of the study conducted, 27 were found to be male and
23 were female. The Study was conducted keeping in mind the equivalency of both the genders.
Below 20
6% 14%
20-40
38%
40-60
42%
Above 60
INTERPRETATION
Out of total 50 Respondents, of which 27 were Male and 23 were Female, 7 respondents were
found to be below 20 years of age, 21 were found to be between 20-40 years of age, 19 were
found to be between 40-60 years of age and 3 respondents were found to be more than 60 years
of age.
NO.OF RESPONDENTS
16
16 14
14
11
12 9
10
8
6
4
2
0
Up to 12th Under-Graduate Post-Graduate Others
INTERPRETATION
Of total 50 Respondents, Educational Qualification of all were asked with respect to awareness
of insurance in their minds. We could see that 9 Respondents were 12 th pass-outs, 14 were
Under- Graduate, 11 were Post-Graduates and 16 Respondents responded as Others.
NO. OF RESPONDENTS
20 17
15 12
11
10
10
INTERPRETATION
Of total 50 Respondents, Occupation of all were questioned. We could see that 10 Respondents
were Students, 17 were Employed, 12 were Self-Employed and 11 Respondents responded as
Others.
ABOVE 10 LAKHS 4
BELOW 1 LAKH 2
0 5 10 15 20 25 30
INTERPRETATION
Of total 50 Respondents, Occupation of all were questioned to know the total disposable income.
We could see that 2 Respondents had their annual family income below 1 Lakh, 28 had their
annual family income between 1-5 Lakhs, 16 had their annual family income between 5-10
20-25%
15-20%
0 5 10 15 20
INTERPRETATION
Out of total 50 Respondents, Saving Capacity of Respondents were asked in respect of their
premium paying capacity out of total disposable income. We could see that 15 Respondents save
less than 15% of their total income, 19 save between 15-20% of their total income, 13 save
between 20-25% of their total income and 4 Respondents responded as More than 25%.
NO. OF RESPONDENTS
Advertisements
10%
Direct Selling Agents/Advisors
30%
16%
Friends and Relatives
Others
44%
INTERPRETATION
NO. OF RESPONDENTS
No
44%
Yes
56%
INTERPRETATION
Out of 50 total Respondents who were part of the study conducted, 28 were found to have Life
Insurance Policy and 22 didn’t have any Life Insurance Policy. Majority of the Respondents 56%
had Life Insurance Policy.
What is your main Concern while taking an Insurance Policy?
FREQUENCY
20
18
16
14
12
10
8
6
4
2
0
INTERPRETATION
From total 50 Respondents, Reasons for Availing Insurance were Questioned. 19 of them
responded as Tax Benefit, 4 gave reason as Security, 17 responded Investments/ Savings as their
main Concern and 10 Respondents responded as Returns.
15
13
9
6 7
FREQUENCY
Term plansTraditional plansULIP plansRetirement planOthers
INTERPRETATION
From total 50 Respondents, Their Favored Interest for different type of Insurance scheme were
Questioned in respect of knowing the most attractive Insurance Product. 13 of them responded as
Term Plans, 9 responded as Traditional Plans, 15 responded as ULIP Plans as their major
Interest, 6 responded as Retirement Plans and 7 Respondents responded as Others.
NO. OF RESPONDENTS
4
3
FREQUENCY 9
13
21
0 5 10 15 20 25
OthersBajaj AllianzHDFC Standard LifeICICI PrudentialLIC
INTERPRETATION
From total 50 Respondents, Their Favored Insurance Company was asked to determine the
perception of people regarding different Insurance Companies. 21 of them responded as LIC as
their major Interest, 13 responded as ICICI Prudential Life Insurance, 9 responded as HDFC
Standard Life, 3 responded as Bajaj Allianz and 4 Respondents responded as Others.
Are You Interested in the products offered by ICICI Prudential Life Insurance?
NO. OF RESPONDENTS
20%
46%
34%
INTERPRETATION
From total 50 Respondents, Their Interest regarding products of ICICI Prudential Life Insurance
was asked in respect of knowing the perception of consumers regarding the company. 23 of them
responded affirmatively regarding their interest in the products while 17 responded negatively.
Also. 10 respondents responded as Can’t Say.
13
17
FREQUENCY
11
0 2 4 6 8 10 12 14 16 18
TransparencyMore ReturnsLesser PremiumsLess Complicated Procedures
INTERPRETATION
From total 50 Respondents, their perception different Insurance Companies was asked in respect
of what areas the companies should work upon. 18% of the respondents responded as Less
Complicated Procedures, 22% responded as Fewer Premiums, 34% responded as More Returns
and 26% respondents emphasized on more transparency.
Do you think services have improved after allowing private players in the Insurance Sector?
NO. OF RESPONDENTS
26%
74%
Yes No
INTERPRETATION
From total 50 Respondents, their views regarding improvement in Insurance Industry was asked
in respect of entry of private players in the insurance sector. 37 of them responded affirmatively
regarding improvement in the Insurance Industry while 13 responded negatively.
CHAPTER 5
FINDINGS AND
CONCLUSION
5.1) FINDINGS
Most of the people save between 15-20% of their total disposable income out of which their
premium paying capacity can be assessed.
Majority of people get aware of the Insurance Policies through Direct Selling Agents/ Advisors.
Hence, this marketing channel should be optimally utilized.
Most of the people buy life insurance as just a tax benefit tool or as Investments/Savings while
only a few of the respondent take it as a Security. The reason for this is lack of knowledge of
insurance benefits among the people.
Majority of people are interested in ULIP Plans due to their higher Returns in the market. More
Risk, Greater Returns.
LIC is still the one of most favored Insurance Companies, however, its market share is declining
over the years due to entry of Private Players. A good Majority of people favors ICICI Prudential
Life Insurance and are interested in their products.
Most of the respondents want more Returns and Transparency in services and insurance Products
of the company.
Majority of the respondents feel that services in the Insurance Industry have improved after
allowing private players or companies in the Insurance Sector.
5.2) CONCLUSION
The majority of India is rural. This market cannot be ignored. In small market the credibility of
the Indian pattern goes along with. However, science the level of awareness is much lower than
in urban India, the distributing strategy has to be different. Distinct has to be formulated for cash
collection and medical facilities. In the absence of this, companies tend to offer simple and easy
to buy and sell policies in most centers. This market demands tailored dedicated insurance
products, for them, is a matter of secure saving for the future.
Mindsets are changing, but purchase pattern are not. The month of February and March still are
busiest at LIC. The traditional hook of tax incentives and savings will take a long time to change.
Private players need to step up their selling in terms of need and protection. The life insurance
industry is growing at 15 to 20 percent, and that there is enough space for all the players to thrive
– because there is so much thing as too much insurance.
As the market grows, more generic products will be put out, but there will be a differentiation in
individual products as compared to similar products in endowment policies, whole life and
pension plans. Currently, LIC dominates the endowment market. Private players are major
stakeholders in whole life insurance, pension plans and term insurance. They have made a
sizeable dent by capturing 40% of the market.
Efficient customer service channels differentiate private players from the traditional model.
Many companies provide better service today than they did two years ago. The customer gets
quicker turnaround of claims and access to faster processing. This is a welcome change for a
customer who was used to LIC previously.
Insurance companies are now providing information about their performance on a regular
interval to bring transparency in declaring.
Getting work done by the insurance advisor needs constant support of the manager. Since the
advisor are the people who bring business to the company, so lot of motivation, encouragement,
and support are required. One thing is very good at ICICI Prudential that this advisor gets lot of
recognition award apart from their commission. The infrastructure support is also fabulous which
help them to meet the clients demand.
With so much of competition profile of the person who has to recruit as an agent should be
fantastic. People, who had that drive, are independent, required flexible working hours, want to
be their own boss, who love to interact people, who was financial consultant or chartered
accountant etc.
5.3) SUGGESTIONS
The company must make efforts to remove the misconceptions that people have about private
insurance companies.
The company should devote sufficient time towards training and development of the advisors as
they are the main marketing channel for the company.
Simplify documents wherever necessary, without losing control.
Enhance post sales services in such areas as sending all renewal notice in time, expeditious
settlement of claims and refunds etc. customize products to cater to the needs of each
individual.
More returns should be provided on Insurance plans.
Transparency should be provided to customers with all documentation and terms and
conditions. No facts should be hidden.
Emphasize with the customer. Employees coming in contact with customers must show
courtesy and good behavior
BIBLIOGRAPHY/REFERENCES
WEBSITES
www.capgemini.com
www.groww.in
www.icicibank.com
www.iciciprulife.com
www.irdai.gov.in
www.licindia.com
www.lifeinsurancecouncil.org
www.prudentialplc.com
www.rbi.org
www.wikipedia.org
www.slideshare.net
www.economictimes.com
And., Brochures provided by ICICI Prudential Life Insurance
ARTICLES/RESEARCH PAPERS
Ahmed, A. (2013). Perception of life insurance policies in rural India. Kuwait Chapter of the Arabian Journal of
Business and Management Review, 2(6), 17.
Anjor, P., Ali, S. H., Kumar, M., & Verma, V. K. (2014). Service quality assessment: A study of consumer
satisfaction in Indian insurance sector. IOSR Journal of Business and Management, 16(3), 34-41.
Augustyn, M., & Ho, S. K. (1998). Service quality and tourism. Journal of travel research, 37(1), 71-75.
Berry, L. L., Parasuraman, A., & Zeithaml, V. A. (1988). The service-quality puzzle. Business horizons,
31(5), 35-43.
Bishnoi, V. K., & Bishnoi, M. (2013). Service Quality of Life Insurance Companies. BVIMR Management Edge,
6(1).
Carman, J. M. (1990). Consumer perceptions of service quality: an assessment of T. Journal of retailing, 66(1),
33.
Donde, D. S., & Bhandarkar, S. A. (2014). A study on customer's preference towards life insurance. ZENITH
International Journal of Business Economics & Management Research, 4(4), 172-179.
Epetimehin, F. M. (2011). Market segmentation: A tool for improving customer satisfaction and retention in
insurance service delivery. Journal of Emerging Trends in Economics and Management Sciences, 2(1), 62-
67.
Keaveney, S. M. (1995). Customer switching behavior in service industries: An exploratory study. Journal of
marketing, 59(2), 71-82.
Kumar, N., Scheer, L., & Kotler, P. (2000). From market driven to market driving. European management
journal, 18(2), 129-142.
Kumar, R. M. G., Parthasarathy, A., & Jothimurugan, T. SERVQUAL in Life Insurance Service-A Study on LIC of
India in Tamil Nadu.
Kothari, C.R.(1996): Research Methodology: methods and techniques, Wishawa Publication, New Delhi.
Lehtinen, U., & Lehtinen, J. R. (1991). Two approaches to service quality dimensions. Service Industries Journal,
11(3), 287-303.
Lovelock C, Wirtz J and Chatterjee J, (2006) “Service Marketing” V Ed. Pearson Education,
Namasivayam, S., Kalra, M. K., Pottala, K. M., Waldrop, S. M., & Hudgins, P. A. (2006). Optimization of Z- axis
automatic exposure control for multidetector row CT evaluation of neck and comparison with fixed tube current
technique for image quality and radiation dose. American Journal of Neuroradiology, 27(10), 2221- 2225.
Nixon, J. M. (1998). Intorduction. Journal of Business & Finance Librarianship, 3(4), 69-103.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications
for future research. Journal of marketing, 49(4), 41-50.
Patil, K. S. (2003). Life Insurance Corporation of India, its products and their performance evaluation: A special
reference to Gulbarga District1. Finance India, 17(3), 1037.
Prakash, N., & Sugumaran, G. (2014). An Assesment of Perceptions and Expectations of Customer in Servqual
Parameters with Reference to Life Insurance Companies in Chennai, India.
Pushpalatha, S., & Jagathi, P. H. (2013). AN EMPIRICAL STUDY ON RURAL INSURANCE PRODUCTS AND
SERVICES WITH REFERENCE TO VISAKHAPATNAM DISTRICT, ANDHRA
PRADESH. International Journal of Retailing & Rural Business Perspectives, 2(2), 393.
Pushpalatha, S., & Jagathi, P. H. (2013). Quality management in banking services. International journal of applied
services marketing perspectives, 2(3), 516.
Raman, N., & Gayathri, C. (2004). A study on customers awareness towards new insurance companies. Indian
Journal of Marketing, 34(1).
Ramanathan, K. V. (2011). A Project on A Study on Policyholders Satisfaction with Special Reference to Life
Insurance Corporation of India. Thanjavur Division, Bharathidasan University.
Rust, R. T., & Oliver, R. W. (1994). The death of advertising. Journal of Advertising, 23(4), 71-77.
Sahu, P., Jaiswal, G., & Pandey, V. K. (2009). A study of buying behaviour of consumers towards life insurance
policies. Aima Journal of Management & Research, 3(3), 1-10.
Selvavinayagam, K., & Mathivanan, R. (2010). A study on policyholders preference and satisfaction of services
rendered by selected life insurance companies in Tamil Nadu, Namakal district. International Journal of
Marketing and Trade Policy, 2(1-2), 47-56.
Sharma, S. R. (2005). Insurance Perspective in Eastern UP-An Empirical Study. Indian Journal of Marketing,
35(8).
Singh, S., & Chaudhary, N. J. S. M. K. (2014). A study of customer perception towards service quality of life
insurance companies in Delhi NCR Region. Global Journal of Management and Business Research.
Singla, K. C. D. J., & Chaudhary, N. Examining Expected and Perceived Service Quality in Life Insurance
Corporation of India.
Zeithaml, V. A. (2000). Service quality, profitability, and the economic worth of customers: what we know and
what we need to learn. Journal of the academy of marketing science, 28(1), 67-85.
ANNEXURE
QUESTIONNAIRE
Dear respondent,
This questionnaire is aimed at understanding your perception about life insurance. Your response
will be dealt with strict confidentiality and it will be used only for academic purpose. Thank you
for spending your valuable time to fill this questionnaire.
1. Name:
a) Below 20
b) 20-40
c) 40-60
d) Above 60
a) Up to 12th
b) Under-Graduate
c) Post-graduate
d) Others
a) Student
b) Employed
c) Self-Employed
d) Others (Specify)………….
a) Below 1 Lakh
b) Between 1-5 Lakhs
c) Between 5-10 Lakhs
d) Above 10 Lakhs
7) What percentage of your family income do you usually save?
a) Advertisements
b) Direct Selling Agents/Advisors
c) Friends and Relatives
d) Others
a) Yes
b) No
a) Tax Benefit
b) Security
c) Investment/Savings
d) Return
a) Term plans
b) Traditional plans
c) ULIP plans
d) Retirement plan
e) Others (Specify)……….
13) Are You Interested in the products offered by ICICI Prudential Life Insurance?
a) Yes
b) No
c) Can’t Say
14) According to you, in what areas should insurance companies work upon?
15) Do you think services have improved after allowing private players in the Insurance Sector?
a) Yes
b) No