ORGANIGZATION STUDY

Presentation – Sketch

India Economy & Industry

India Life Insurance Industry
ICICI Prudential Life Insurance Market
Introduction
Standing
Growth
Recognitions and awards
Need of the hour
SWOT Analysis
Suggestions
ONE OF THE FASTEST GROWING ECNOMIES

12.00% China

India
10.00%
Singapore

8.00% Hong Kong

Malaysia
6.00%
Korea

4.00% US

UK
2.00%
Japan

0.00%
CONTRIBUTION TO INDIAN ECONOMY

(i) Life Insurance is the only sector which garners

long term savings

(ii) Spread of financial services in rural areas and

amongst socially less privileged

(iii) Long term funds for infrastructure

(iv) Strong positive correlation between

development of capital markets and insurance/
pension sector

(v) Employment generation

 India life Insurance: An overview

POPULATION : 1.12 Bn
COUNTRY
LIFE INSURANCE PENETRATION: 4.1%
Pre 2000: Public monopoly
INDUSTRY Market deregulated in 2000
ICICI entered in 2000 through partnership with
Prudential Plc, UK

Distribution through agency only; 2000 offices, 0.8 mn

PRE agents
LIBERALIZATION ‘Push' sales approach: Tax saving objective
Traditional product offerings
Pensions: Small part of savings
Players in the insurance industry

Public sector life insurance company:

 Life Insurance Corporation of India – a state owned leviathan
having a majority market share in the country

Private sector life insurance companies:

 ICICI Prudential Life Insurance Company

 Birla Sun Life Insurance Company
 OK Kotak Mahindra Life Insurance Company
 Max New York Life Insurance Company
 Aviva Life Insurance Company
 Metlife Insurance Company
 SBI Life Insurance Company
 ING Vyaysya Life Insurance Company
 HDFC Standard Life Insurance Company
Why insurance???

PRIMARY REASON
•Life is full of uncertainties
• Provides the much required RISK COVER
• Serves as a financial buffer in the wake of any un-favorable and un-foreseen
circumstances
• Ensures that near and dear ones are not left in financial doldrums due to any
exigency
• The risk cover that insurance provides has no parallels in the financial world

SECONDARY REASON
•Money back plans provides an element of liquidity by returning a portion of
the sum assured at regular intervals. This is in addition to the risk cover
• Unit linked plans invest a percentage of the premiums in market securities
and provide returns. This combines market linked returns along with risk cover
 INTRODUCTION TO ICICI PRUDENTIAL

Pre 2000: Public monopoly

Market deregulated in 2000
ICICI entered in 2000 through partnership with Prudential Plc, UK
Vision
Our vision is to make ICICI Prudential Life Insurance Company the
dominant new insurer in the life insurance industry. This is to achieve
through our commitment to excellence, focus on service, speed and
innovation, and leveraging our technological expertise.

Mission
Building transparency in all our dealings can play a significant role
in redefining and reshaping the sector. Given the quality of their
parentage and the commitment of their team, they feel that there will
be no limits to their growth
Values

 Integrity
 Customer First
 Boundary less
 Ownership
 Passion

ICICI Prudential is currently the No. 1 private life insurer in the country.
For the financial year ended March 31, 2009, the company garnered
Rs1584 corer of new business premium for a total sum assured of
Rs13, 780 corers and wrote nearly 615,000 policies.

ICICI Prudential was the first life insurer in India to receive a National
Insurer Financial Strength rating of AAA (India) from Fitch ratings.
 Premier Life Plan offered by ICICI Pru. Life Insurance Co .

 Unit linked insurance plan

Minimum contribution is Rs.60,000 per annum

 Death benefit is higher of the sum assured or the value in the accumulation
account whichever is higher

Partial withdrawals are possible after 3 years premiums are paid.

 Flexibility to choose the premium paying term – 3 year, 5 year, 7 year or 10 year
 Minimum sum assured is Rs.1,00,000. The multiple can be a minimum of 1 and a
maximum of 25

This plan offers the following investment options maxi miser, protector, balancer
and preserver

Minimum top up is Rs.5,000

GROWTH AND STANDING
 AWARDS AND RECOGNISITONS

ICICI Pru Life ranked as the Most Trusted Pvt Life Insurance
brand in the Brand Equity "Most Trusted Brands 2009" survey

ICICI Prudential Life won a Gold award for

AboutULIPS.com and Health Saver campaign,
innovation award for www.taxguru08-09.com
and a silver award for its Insurance yoga
campaign at the ICICI Group Marketing
Excellence award
ICICI Prudential Life won the ICICI Group
Marketing Excellence Award 2008 in three key
categories for its marketing initiatives

ICICI Prudential Life’s website, www.iciciprulife.com was

awarded the best website among private life insurers at
the Web 18 and Frost & Sullivan Genius of the Web
Awards 2007 for commendable work in the online.
RECOGNITIONS

• ICICI Prudential Life was recognized as the most trusted brand amongst
private life insurers in the Economic Times-Most Trusted Brand survey 2008

• IMM Award for Excellence. Institute of Marketing & Management

• Organization with Innovative HR Practices. Indira Group of Institutes

• Organization with Innovative HR Practices. Asia-Pacific H R Congress

Awards for HR Excellence
 SWOT Analysis
STRENGHTS

• Brand equity of ICICI Bank.

• ICICI Prudential is India’s No.1Pvt insurance company in terms of
market share. Since 2001.
• Wide spread distribution network has helped to increase its
operation.
• Two million policies, which is the highest ever done by Pvt Insurance
company in Asia is a very short span of time 4yrs from its
establishment.
• All categories can access its products.
• High quality service delivered by the company.
WEAKNESS

•The products offered are little expensive compare to

LIC.
• The products offered are can not be affordable by
lower income group.
• Lengthy pre-offer formalities.
• Huge employee turnover.
• The operation of the company is limited to major cities
and towns.
OPPORTUNITIES

•India’s tapped market is 4.6%, availability of untapped

potential market is huge.
• Company can extent its operations to rural and sub urban
areas by developing a required products.
• Creating a awareness program will helps to know the
need of individuals.
• Strong business ethics will help to tap the market.
• Analyzing competitors weakness, and make use of it.
• Innovation of new products based on changing life styles.
• Recruiting more local expertise
 THREATS

• Increasing number of private players in the insurance market.

• Create ample choices, frequent and easy mobility for the employees.
• Stiff competition from LIC and other private players.
• Restrictions and inter reference by IRDA.
• Fluctuations in the tax tariff have direct impact on the insurance.
• Challenges from new companies entering in to market, like
Bharati Axa
SUGGESTIONS

 Due to the instance competition in the life of insurance

market, the life insurance company’s have to adopt better
strategies to attract more customers.
 Keeping the cost, quality and return on investment intact is
necessary to tackle the competition.
 Life insurance products are taken mainly by middle and higher
income groups. Hence they should regard as main targeted
income groups. Life insurance products which has suitable for
lower income groups should also be released so that the market
shares increases.
 Communication and coordination should be more effective.
 Optimizing of machine, men-hours and money
CONCLUTIONS

A number of factors like age, terms , sum assured, maturity

benefit, death benefit, withdrawal benefit, flexibility to increase the
contribution, surrender value, automatic premium payment,
additional credit, switching between funds, administrative
charges, top ups riders are taken in to consideration before
reaching a conclusion about the insurance policy.

Insurance is a unique feature i.e. risk cover for life. By the entry of
private insurance players in the market there are new products,
which also take care for the investment. Long term policies are
better than medium and short term policies. For better future
arrangements. Private life insurance companies are doing well in
the Indian market by providing innovative products and better
services to the customers
Thank you…..

Venkatesha
Murthy. N
Reg no: 08JPCM6067