Ashish Jha Final Report

A PROJECT REPORT ON

“Target Marketing for the Position of Advisor”

Submitted For the Partial Fulfillment of POST GRADUATE DIPLOMA IN MANAGEMENT 2008-10

Submitted To

Submitted By:

Prof. P.K.Agarwal Director

Ashish Kumar Jha Roll no: M08023

IIMT PROFESSIONAL COLLEGE IIMT Nagar, Ganga Nagar, Mawana Road, Meerut-250001 Ph:-91-121-2620284, 2620287, FAX: 91-121-2649606, 2621006 Email :[email protected] ; Web Site:www.iimtindia.net 1

Acknowledgement My sincere thanks to Dr.P K Agarwal of IIMT Professional College, Meerut for his support and encouragement in execution of my training and preparation of my report. This project would have been difficult to complete, but by the invaluable contribution from some important person. Let me take this opportunity to thank them. But firstly, I like to thank ICICI Prudential for giving me such a challenging project to work upon. I hope this challenge has brought the best out of me. It was an exhilarating experience to be attached with a company that is a market leader in insurance sector in India. I express my deep sense to gratitude to AMIT SHEKAR for providing me great opportunity to complete my project and training . It was dynamic experience which enabled me to get introduction of real situation. Which I shall be facing during my work in corporate world.

Ashish kumar

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CHAPTER NO.

PARTICULARS

PAGE NO.

INTRODUCTION TO THE STUDY

Chapter – 1

Chapter-2

•

Executive Summary

•

Company Profile

•

History of the Company

PRODUCT PROFILE

2-34

35-48

OBJECTIVE OF THE STUDY

Chapter – 3 Chapter –4 Chapter – 5

RESEARCH METHODOLGY DATA ANALYSIS & INTERPRETATION

49-56

57-70

FINDINGS, IMITATIONS 71-76 RECOMMENDATIONS & CONCLUSION BIBLIOGRAPHY

77

ANNEXURE 84-86 Qestionnaire

Contents

EXECUTIVE SUMMARY 3

ICICI Prudential Life Insurance is one of the largest Insurance networks in the country, and 2nd Life Insurance Company in India. The ICICI Group has been in existence since 1955 when ICICI Ltd., was created. ICICI Prudential started in 2002 as subsidiary of ICICI Ltd., Today ICICI Life Insurance has a customer base of 4 million with total assets exceeding Rs.1, 00,000 Cr. making it the 2nd largest life insurance company in the country, next only to LIC. The Insurance sector, after the opening up, provides greater opportunities. Several global players have emerged and the market has changed significantly. In the changed scenario, the expectation is that the low Insurance premium as a percentage of GDP prevailing in India will improve and will offer better opportunities to the insurance players. Life Insurance sector is one of the key areas where enormous business potential exists. In India currently the life insurance premium as a percentage of GDP is 1.3 per cent against 5.2 per cent in the US, but in the liberalized scenario, the life insurance premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998- 99 to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009-10. Corporate non-life premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in 200910 and personal line non-life from Rs 4 billion to Rs 51 billion. In the life Insurance segment the Life Insurance Corporation of India (LIC) is the major player. The LIC has 2050 branches. It is constituted in to seven Zones. Currently there are 5, 60,000 LIC agents in India. General Insurance is another segment, which has been growing at a faster pace.

INTRODUCTION 4

Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current. With a large population and the untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20% annually. Together with banking services, it adds about 7 percent to the countries GDP. In spite of all this growth statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without life insurance cover and the health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation “Malhotra Committee” was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many changes. The liberalization of the industry the insurance industry has never looked back and today stand as one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management –which is the need to mange uncertainty on account of exposure to loss, injury, disadvantage or destruction. Insurance is the method of spreading and transfer of risk. The fortunate many who are 5

exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect the assets but only compensates the economic or financial loss. In insurance the insured makes payment called “premiums” to an insurer, and in return is able to claim a payment from the insurer if the insured suffers a defined type of loss. This relationship is usually drawn up in a formal legal contract. Insurance companies also earn investment profits, because they have the use of the premium money from the time they receive it until the time they need it to pay claims. This money is called the float. When the investments of float are successful they may earn large profits, even if the insurance company pays out in claims every penny received as premiums. In fact, most insurance companies pay out more money than they receive in premiums. The excess amount that they pay to policyholders is the cost of float. An insurance company will profit if they invest the money at a greater return than their cost of float. An insurance contract or policy will set out in detail the exact circumstances under which a benefit payment will be made and the amount of the premiums. Classification of insurance The insurance industry in India can broadly classified in two parts. They are. 1) Life insurance. 2) Non-life (general) insurance.

1) Life insurance: Life insurance can be defined as “life insurance provides a sum of money if the person who is insured dies while the policy is in effect”.

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In 1818 British introduced to India, with the establishment of the oriental life insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay mutual life assurance society was set up in 1870.the life insurance act, 1912 was the first statuary measure to regulate the life insurance business in India. In 1983, the earlier legislation was consolidated and amended by the insurance act, 1938, with comprehensive provisions for detailed effective control over insurance. The union government had opened the insurance sector for private participation in 1999, also allowing the private companies to have foreign equity up to 26%. Following the opening up of the insurance sector, 12 private sector companies have entered the life insurance business. Benefits of life insurance Life insurance encourages saving and forces thrift. It is superior to a traditional savings vehicle. It helps to achieve the purpose of life assured. It can be enchased and facilitates quick borrowing. It provides valuable tax relief. Thus insurance is found to be very useful in the lives of the person both in short term and long term. Marketing is a basic that, it can`t be considered a separate function. It is whole business seen from the point of view of its final result,that is the consumer point of view.

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Marketing is to convert social needs into profitable opportunity. The 21 st century is the era of advertising and sale production; marketing is to convert social needs into profitable opportunity. As it is said marketing thinking starts with human needs and wants.

‘

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Industrial Credit and Investment Corporation of India Limited Company :- ICICI Founded :- 1955 Founder :- Mr. N. vaghul Country of origin: - India Location :- Mumbai Industry :- Financial Products :- financial Website :- www.icici.com The (ICICI) Industrial Credit and Investment Corporation of India Limited incorporated in 1955 at the initiative of the World Bank. The Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami ICICILimited.

Mudaliar

elected as the

first Chairman of

ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from international markets

Now here are the important dates which has special roles to build up the company of ICICI 1955: ICICI founded

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1956:

ICICI declared its first dividend of 3.5%

1958:

Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd

1969:

The first two regional offices in Calcutta and Madras set up.

1972:

The second entity in India to set up merchant banking services.

1982: ICICI became the first ever Indian borrower to raise European Currency Units. 1986:

ICICI became the first Indian institution to receive ADB Loans.

1994: ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up. 1997:

SCICI merged with ICICI Ltd. Mr. K.V. Kamath appointed the Managing

Director and CEO of ICICI Ltd

1998: The name The Industrial Credit and Investment Corporation of India Ltd changed to ICICI Ltd. 2001: ICICI Bank became the first commercial bank from India to list its stock on NYSE

ICICI Group offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized group companies, subsidiaries and affiliates in the areas of personal banking, investment

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banking, life and general insurance, venture capital and asset management. With a strong customer focus, the ICICI Group Companies have maintained and enhanced  Life insurance ( icici prudential)  General insurance (icici Lombard)  Banking  Mutual fund  Home finance

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ICICI LOMARD ICICI Lombard General Insurance Company. It is joint venture with the Canada based Fairfax Financial Holdings, which

is the largest private sector general insurance

company. It has a comprehensive product portfolio catering to all corporate and retail insurance needs and is present in over 300 locations across the country. ICICI Lombard General Insurance has achieved a market share of 27.2% among private sector general insurance companies and an overall market share of 11.2% during fiscal 2009. The gross return premium grew by 2.2% from Rs. 33.45 billion in fiscal 2008 to 34.20 billion in fiscal 2009.

.ICICI Prudential Life Insurance Company.

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IT is a 74:26 joint venture with prudential plc (UK). It is the largest private sector life insurance company offering a comprehensive suite of life, health and pensions products. It is also the pioneer in launching innovative health care products like Diabetes Care Active and health Saver. The company operates on a multi-channel platform and has distribution strength of over 2, 76,000 financial advisors operating from more than 2000 branches spread across 1800 locations across the country. In addition to the agency force, it also has tie-ups with various banks, corporate agents and brokers. In fiscal 2009, ICICI Prudential attained a market share of 10.9% based on retail weighted premium and garnered a total premium of Rs 153.56 billion registering a growth of 13% and held assets of Rs. 327.88 billion as on March 31, 2009

The Company was founded on 30 May 1848 in Hatton Garden in London as The Prudential Mutual Assurance Investment and Loan Association providing loans to professional and working people. In 1854 the Company began selling the relatively new concept of industrial branch insurance policies to the working class population for premiums as low as one penny through agents acting as door to door salesmen. The army 13

of premium collection agents was for many many years identified with the Prudential as the "Man from the Pru It moved to its traditional home at Holborn Bars in 1879 and converted to a limited company in 1881. The building was designed by Alfred Waterhouse, and is built of terracotta manufactured by Gibbs and Canning Limited of Tamworth (c.1878) – two of the same driving forces behind the Natural History Museum in London. The Company was first listed on the London Stock Exchange in 1924. In 1997 the Company acquired Scottish Amicable, a business originally founded in 1826 in Glasgow as the West of Scotland Life Insurance Company, for $1.75bn.In June 2000 the Company was first listed on the New York Stock Exchange to help focus on the US market. Found

:- 1848

Head quarter

:- London, uk

Key person

:- Harvey McGrath, (chairman)

:- Mark tracker, (Ceo)

INDUSTRY

:- Financial

Products

:- Life insurance

Revenue

:- £18,993 million (2008)

Operating income:-

14

£(2,074) million (2008)

Net income

:-

£(391) million (2008)

Employees

:-

28,000 (2008)[1]

Website

:-

http://www.prudential.co.uk

Management Team

Chairman of Board of Directors Harvey McGrath Group Chief Executive Mark Tucker Group Finance Director Tidjane Thiam President

& Chief Executive Officer for Jackson National Life Clark Manning

Chief Executive of M&G Michael McLintock Chief Executive of Prudential Corporation Asia Barry Stowe

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Chief Executive of UK & European Insurance Operations Nick Prettejohn

COMPANY PROFILE ICICI Prudential Life Insurance Company Limited (‘the Company’) a joint venture between ICICI Bank Limited and Prudential plc of UK was incorporated on July 20, 2000 as a company under the Companies Act, 1956 (‘the Act’). The Company is licensed by the Insurance Regulatory and Development Authority (‘IRDA’) for carrying life insurance business in India. 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 (UK). The company brings together the local market expertise and financial strength of ICICI Bank and Prudential’s International life insurance experience. The company was granted a certificate of 16

Registration by the IRDA on November 24, 2000 and eighteen days later, issued its first policy on December 12. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential is the largest private insurance company and second largest insurance in India after LIC. 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 companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential Life's capital stands at Rs. 37.72 billion (as on March, 2008) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the year ended March 31, 2008, the company garnered Retail New Business Weighted premium of Rs. 6,684 crores, registering a growth of 68% over the last year and has underwritten nearly 3 million retail policies during the period. The company has assets held over Rs. 30,000 crore as on April 30, 2008. 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.

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Since the liberalization of Indian Insurance sector, ICICI Prudential Life Insurance has been one of the earliest private players. Since the time, ICICI Pru Life has been the leader in terms of market share as indicated by the IRDA (Insurance Regulatory and Development Authority, the regulator for Indian Insurance Industry) at its website. Arguably the most innovative Indian Life insurer in terms of customer services and products, ICICI Prudential has one of the largest distribution and servicing network with over 2,000 proprietary offices & customer touch points across India. The 30,000 employee strong organization has one of the largest agency distributions in the industry.

With a growing product range to match the complex needs of the demanding customers in a growing economy, the organization also has a history of successful.During 2007-08, the organization's focus on rural business has proved its complex project execution capability and strong partnerships for customer servicing. In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK Healthcare to settle insurance claims of its users.From its early days, ICICI Prudential seemed to have the wherewithal for a large-scale business. By March 31, 2002, a little over a year since its launch, the company had issued 100,000 policies translating into premium income of approximately Rs. 1,200 million on a sum assured of over Rs.23 billion. When the company began its operations, the need was to build a brand that was relatable to, symbolized trust and was easily recognized and understood. It launched a corporate campaign ICICI Prudential also made using the theme of ‘Sindoor’ to epitomize protection, trust, togetherness and all that is Indian; endearing itself to the masses. The success of the campaign, ‘the calling card of the company’ saw the brand awareness scores almost at par with its 40 year old competitor. 18

The theme of protection was also extended to subsequent product and category specific campaigns –from child plans to retirement solutions –which highlight how the company will be with its customers at every step of life. From day one, the company has unflinchingly focused on being mass-market player, developing products, creating a distribution network and deploying resources that would further its goal. Apart from ramping up thoroughly training its advisors, the company has twelve ‘Bancasurance’ partners –the largest in the country. It swiftly revised and added to its initial range of products, pioneering market-linked products and pension plans, to offer customers the most flexible life insurance policies in the country.

In February 2004, ICICI Prudential increased its capital base by Rs. 500 million, its ninth capital hike, bringing the total paid –up equity capital to Rs. 6,750 million. With the authorized capital of the company standing at Rs. 12 billion, ICICI Prudential continues to have the highest capital base amongst all life insurers in the country. The challenge ICICI Prudential now faces is to retain its top-notch position and continue to deliver the finest life insurance and pension solutions to its ever-growing customer base. ICICI Prudential’s equity base stands at Rs. 1185 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the year ended March 31, 2006, the company garnered Rs.2, 412 crore of weighted new business premium and wrote 837,963 policies. The sum assured in force stands at Rs.45, 888 crore. The company has a network of over 72,000 advisors; as well as 9 bancasurance partners and over 200 corporate agent and broker tie-ups. ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA rating is the highest

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credit 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 five years, ICICI Prudential has retained its position as the No.1 private insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. Beginning operations in December 2000, ICICI Prudential’s success has been meteoric, becoming the number one private life insurer within months of launch. Today, it has one of the largest distribution networks amongst private life insurers in India, with branches in 54 cities. The total number of policies issued stands at more than 780,000 with a total sum assured in excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total received premium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20 billion. New business premium income shows a 106% growth at Rs. 7.5 billion, driven mainly by the company’s range of unique unit-linked policies and pension plans. The company’s retail market share amongst private companies stood at 36%, making it clear leader in the segment. To add to its achievements, in the year 2003/04 it was adjudged Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand Survey’ by AC Nielsen ORG-MARG). It was also conferred the ‘Outlook Money-Best Life Insurer’ award for the second year running. The company is also proud to have won Silver at EFFIES 2003 for its ‘Retire from work, not life’ campaign. Notably, ICICI Prudential was also short-listed to the final round for its ‘Sindoor campaign in EFFIES 2002.

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ICICI Prudential’s success is rooted in its philosophy to always offer the customer a choice. This has been the driving force behind its multi-channel distribution strategy, which includes advisors, banks, direct marketing and corporate agents. In fact, ICICI Prudential was the first life insurer to invest in multiple channels and offer the customer choice and access; thus reducing dependency on any one channel, great strides in the retirement solutions and pensions market. The Company’s penetration of the retirement market was driven by the focused approach towards creating awareness through sustained campaign; ‘Retire from work, not life’. Within six months, the campaign rewarded ICICI Prudential with an increased share of 23% of the total pensions market and 78% amongst private players. ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 132 cities and towns in India, stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north to Trivandrum in the south.

The company has 9 bank partnerships for distribution, having agreements with ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some co-operative banks, as well as over 200 corporate agents and brokers, it has also tied up with NGOs, MFIs and corporates for the distribution of rural policies. ICICI Prudential has recruited and trained more than 72,000 insurance advisors to interface with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers. About the Promoters ICICI Bank (NYSE:IBN) is India’s second largest bank with an asset base of Rs.2513.89 billion as on March 31, 2006. ICICI Bank provides a broad spectrum of financial services to individuals and companies. This includes mortgages, car and personal loans, credit and debit cards, corporate and agricultural finance. The Bank 21

services a growing a customer base of more than 17 million customers through a multi channel access network which includes over 620 branches and extension counters, 2200 ATMs, call centers and internet banking (www.icicibank.com) PRUDENTIAL plc, Established in London in 1848, through its business in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policy holder and unit holders world wide. As of December 31, 2005, the company had over US$ 400 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is the leading European life insurance company with a vast network of 23 life and mutual fund operations in twelve countries –China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Achievements Beginning operations in December 2000, ICICI Prudential’s success has been meteoric, becoming the number one private life insurer within months of launch. Today, it has one of the largest distribution networks amongst private life insurers in India, with branches in 54 cities. The total number of policies issued stands at more than 780,000 with a total sum assured in excess of Rs.160 billion. ICICI Prudential closed the financial year ended march 31, 2004 with a total received premium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20 billion. New business premium income shows a 106% growth at Rs. 7.5 billion, driven mainly by the company’s range of unique unit-linked policies and pension plans. The

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company’s retail market share amongst private companies stood at 36%, making it clear leader in the segment. To add to its achievements, in the year 2003/04 it was adjudged Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand Survey’ by ACNeilsen ORG-MARG). It was also conferred the ‘Outlook Money-Best Life Insurer’ award for the second year running. The company is also proud to have won Silver at EFFIES 2003 for its ‘Retire from work, not life’ campaign. Notably, ICICI Prudential was also short-listed to the final round for its ‘Sindoor campaign in EFFIES 2002.

In Keeping with its belief that a happy customer is the best endorsement, ICICI Prudential has embraced the ‘SIX SIGMA’ approach to quality, an exercise that begins and ends with the customer from capturing his voice to measuring and responding to his experiences. This initiative is currently helping the company improve processes, turnaround times and customer satisfaction levels. Another Novel introduction is the ICICI Prudential Lifestyle Rewards Club, India’s first rewards programme for Life Advisors; it allows ICICI Prudential Advisors to redeem points for items ranging from kitchenware to gold, white goods, and even international holidays. Promotion ICICI Prudential is a case study in how advertising and marketing can play a vital role in re-shaping an industry. It has demonstrated how an industry where the customer was nothing more than a policy number has changed to one where ‘customer preference’ rules the roost. Brand-building in a complex category like life insurance is an uphill and multi-faceted task. At the time of launching operations, the communications task was to build 23

credibility, so as to give the customer the confidence that it was ‘a company that could be trusted to invest funds with’. The aim was to encourage people to view insurance not as a compulsory tax saving instrument, but as a means to lead a worry-free, secure life and in the process, create the differentiator for brand ICICI Prudential. The brand proposition for all the campaigns was reflected in the line: ‘Suraksha: Zindagi ke har kadam par’. The campaign featured a significant competitive advantage, the sound financial backing and credentials of ICICI Prudential, and showcased products from different segments. The advertising idea was encapsulated in the symbol of protection –the ‘Sindoor’.

This campaign contributed extensively to raising brand awareness and creating a distinctive identity for the company. The Company recently tied up with the Forbes Six Sigma rated Dabbawalla organization in Mumbai for a direct marketing exercise. In a Unique effort to create awareness about a tax saving product, the company attached a creative of a bitten apple to Mumbai’s ubiquitous lunchboxes. It worked wonderfully with Mumbai’s office-goers and one that translated into substantial business for the company. Brand Values Market Research reveals that the values people associate with ICICI Prudential are, indeed, those that the company hopes to project: lifelong protection and value for money. The core value is protecting your loved ones, throughout life’s ups and downs. It is a powerful proposition; one, which ICICI Prudential, is taking into the market place. DISTRIBUTION SYSTEM Tied Agency 24

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. Bancassurance 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. CUSTOMER SERVICE AND OPERATIONS The Operations department oils the work processes between the customer and the company to ensure consistent and quality service to the customer. To streamline the operations, the Operations department interfaces between the clients and the agents, the branches and the underwriters, and manages work processes. The Vision at Customer Service is to deliver ‘World Class Service’ at every opportunity. Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query Resolution Unit are all committed to providing effective solutions to over lakhs of customers across the country. Information Technology

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The Information Technology function at ICICI Prudential is committed to enable business through the use of technology. It is segmented into 4 groups to enable highest levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in designing better product offerings to end-users, the Solutions Group- Web that provides real-time information to customers and is responsible for customer relationship management, IT Architecture & Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. This team works as an in house R&D Solution Group, exploring new technological initiatives and also caters to information needs of corporate functions in the organization. IT Infrastructure group is responsible for providing hardware, software, network services to the whole organization. This group runs the 'Digital Nervous System' of the Enterprise at the highest levels of efficiency and provide robust, scalable and highly available platform for deployment of business application. Marketing The Marketing function at ICICI Pru covers an array of activities - brand and media management, channel support, direct marketing and corporate communications. The Brand and Communications team is in charge of advertising, consumer research, media planning & buying and Public Relations; that helps develop and nurture ICICI Prudential's corporate identity while effectively communicating its varied product offerings to the customer. Channel marketing provides support to the sales force by streamlining the design and development of collaterals and sales tools across distribution channels. The Direct marketing team was set up to generate high quality leads for profitable business. The team achieves this through target database acquisition and communicating customized product information through e-mailers, telemarketing and innovative direct mailers. 26

Finance Finance function in ICICI Prudential is committed to create an infrastructure that is aligned to shareholder expectations. Finance basically comprises of four functions. . Corporate Planning and MIS provide feedback on business strategies. This includes driving the budgeting process, providing strategic inputs for decision-making and management reporting and analysis. The Accounts function includes preparation and maintenance of financial records, funds management, and expense processing and treasury operations. Compliance ensures that every action is within the regulatory framework. This includes reviewing compliance requirements and supporting the ethical framework of ICICI Pru life. Internal audit provides assurance to the management over the organizations' control framework and includes process risk management, information security assessment and business continuity assessment. Human Resource The people strategy of ICICI Prudential is “To build a committed team with a culture of innovation, learning and growth. The Human Resource Function at ICICI Prudential drives the people strategy of the business. With its initial focus on operational excellence to deliver benefits and services to staff members, HR is now committed to building capability through state of the art processes. A robust performance management system, compensation system and a segmented training architecture enable it to deliver value to the organization. Business Excellence The Business Excellence function is committed to building a quality mindset across the organization. ICICI Prudential is the first organization in the Insurance Industry that has adopted the Six Sigma Methodology for process efficiency and measurement. The team 27

is also driving the Malcolm Baldrige framework across the organization, an intervention that examines management of key inputs for Business Excellence. Bancassurance One of the most significant advances in the financial services sector over the past couple of years has been the growth of Bancassurance – which, in simplest terms, means the distribution of insurance products through a bank’s distribution channels. In other words, Bancassurance is a service which can fulfill both banking and insurance needs at the same time. Bancassurance as a concept first began in India with the opening up of the insurance industry to private sector participation in December 1999 which saw the entry of 20 new players - with 12 in the life insurance sector and 8 in the non-life sector.

Bancassurance has also seen significant rise in other Asian markets. For example, Bancassurance accounted for 24% of new life insurance sales by ‘weighted’ premium income in Singapore in 2002. This is a significant increase on the equivalent 2001 statistic of 15% and is as a result of growth in significant bank-centric Bancassurance operations. Although the concept of Bancassurance looks simple enough, it is far from that in real life practice. Legislative differences, consumer behavior, impact of history and culture, product complexity, employee work culture and many such other factors have contributed to significant differences in results across countries. For example, in France and Spain 60% to 80% of life insurance products are sold through bank branches compared to 10% in UK and USA. Bancassurance Models Globally we have 4 kinds of Bancassurance business models: • 28

Distribution alliance between the insurance company and the bank

•

JV between the two

•

Merger between bank and insurer

•

Bank builds or buys own insurance products

Most of the Bancassurance operations in India fall into the first model, which in a way is quite a prudent decision. The Indian Bancassurance scene as of now looks as promising as perilous, being a vast, unexplored and uncharted expanse. As banks are quite risk averse, it is but natural for them to withhold from making any long term commitment, which would be quite costly if the Bancassurance business runs into trouble. In terms of the present regulatory framework, one bank can tie-up with only one life and one non-life insurer, while insurers have the choice to tie-up with any number of banks.

Stages in Policy Issuance 1) Proposal A Proposal Stage is the First stage before the policy is issued at COPS. At this stage, the application form is received by COPS, but it is pending for issuance due to further clarifications required from the customer. 2) Login A proposal which is complete i.e., duly filled with all necessary documents attached to it & accepted by the Branch ops, is called a Login 3) Reject An Application gets rejected at the Branch Ops level due to necessary details not filled in the form or necessary documents not submitted is a Reject. It is then sent back to the Advisor for completion. 4) Issuance Issuance means a policy that is issued to the Customer by Central Ops. 5) Decline Status 29

When a customer refuses to take a policy post login but before Issuance is called a Decline 6) Cancellation When the cheque given by the customer bounces, it amounts to cancellation of the policy. 7) Lapse A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy. 8) Freelook Post issuance of the policy, the policyholder has the option to turn down the policy within 15 days from the date of issuance. This period of 15 days is called Freelook Period. 9) Surrender: When a customer wants to discontinue with the policy.

Joint Venture ICICI Prudential is a joint venture between ICICI Bank and Prudential plc engaged in the business of life insurance in India.

30

Thejointstrengths Apowerful joint venture partnershipwith eachcarryinga set of complementingeach others

strengths

Brandstrength

Reputation

Infrastructure

Insurance expertise

Customer base

ICICI

PRUDENTIAL

Product

Market Innovators

Distribution

Local knowledge

Operations

Product of joint venture, of icici and prudential life insurance company Founded

:- K. V. Kamath

Products

:- Life insurance

Jingle

:- Jeetey Raho

Date of innovation :- 22 Dec 2000

Need for Life Insurance Today, there is no shortage of investment options for a person to choose from. Modern

day

investments

include

gold,

property,

fixed

income

instruments, mutual funds and of course, life insurance. Given the 31

plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets.

Asset Protection From an investor's point of view, an investment can play two roles asset appreciation or asset protection.

Core benefit The core benefit of life insurance is that the financial interests of one’s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.

Management Profile Board of Directors:-

32

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad.

Mr. K.V. Kamath, Chairman Ms. Chanda Kochhar, Director Mr. Barry Stowe, Director Mr. H.T. Phong, Director Prof. Marti G. Subrahmanyam, Director Mr. Mahesh Prasad Modi, Director Ms. Rama Bijapurkar, Director Mr. Keki Dadiseth, Director Ms. Shikha Sharma, Managing Director Mr. N.S. Kannan, Executive Director Mr. Bhargav Dasgupta, Executive Director

Management Team The ICICI Prudential Life Insurance Company Limited Management team comprises reputed people from the finance industry both from India and abroad. 33

Ms. Shikha Sharma, Managing Director & CEO Mr. N. S. Kannan, Executive Director Mr. Bhargav Dasgupta, Executive Director Ms. Anita Pai, Executive Vice President – Customer Service & Technology Dr. Avijit Chatterjee, Appointed Actuary

ICICI Prudential offers a wide range of insurance plans to suit the various needs of individuals. The insurance plans by the company are enlisted: Life Insurance Plans: • • • •

Education Insurance Plans Premium Guarantee plans Wealth Creation Plans Protection Plans

Retirement Solutions: 34

• • •

Forever Life Lifeline Super Pension Lifetime Super Pension

Health Product Suite: • • • • • • •

Crisis Cover Cancer Care Plus Cancer Care Hospital Care Diabetes Care Plus Diabetes Care Health Assure Plus

Tax Planning

All Life Insurance plans Sec 88

All Retirement plans – sec 80 CCC (1)

PRODUCT/SERVICES PROFILE ICICI Prudential’s ultimate promise is financial security. A strong brand certainly boosts sale, but without customer-friendly, innovative products, even the best brand would not last long. ICICI Prudential’s product range has been developed on the understanding that different people have their own sets of needs at various stages of their lives. It has thus built a flexible portfolio of products that can be customized to cater to varying needs of people at each stage, and thus ensure protection in every step of life. The company’s philosophy

35

has been to help customers understand their financial needs and work closely with them to customize a product that would meet. Advisors can offer a complete range of products –Savings plans, Child plans, Market-linked plans, Protection plans, and Retirement plans – and tailor a flexible solution to meet customers’ changing needs at every stage of life. In fact, ICICI Prudential was the first to un-bundle product benefits, pioneering the concept of ‘riders’ and soon after introduce comprehensive market-linked and retirement plans. ICICI Prudential has launched a handful of products that are analyzed below: ICICI Prudential's life insurance products may be loosely categorized under three forms: pure life insurance products without an investment angle to them; a product that is a mix of a cumulative investment scheme and an insurance product; and, finally, standard products such as money-back and endowment policies. Single Premium Bond: The Single Premium Bond is the name of a policy that combines the features of an investment in a cumulative deposit scheme with that of an insurance product.

Policy-holders are required to pay a one-time premium based on a target sum assured. At maturity, the policy-holder gets the sum assured and guaranteed additions that work out to a compound return of 4.5 per cent the sum assured. The insurance part of the package comes in the form of death benefits that are paid in the case of the demise of the policy-holder. The size of the death benefit is linked to the number of years left for the policy to expire. On maturity date, the maturity value is also paid in addition to the death benefits that would have been paid earlier.

36

Life Guard policies: The company offers two pure life insurance products that have an umbrella name, Life Guard. One of them involves a one-time premium for which there are no maturity benefits. The other requires regular premium payments that are returned at the end of the policy. Life Guard offers absolutely no investment-related return and is suitable for individuals looking for an unadulterated insurance package. Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 5 riders, to create a customized solution for each policyholder. Savings Solutions •

Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of protection.

•

Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options.

•

Save ‘n’ Protect is a traditional endowment savings plan that offers life protection along with adequate returns

•

CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child’s marriage, expenses for a child’s higher education or purchase of an asset.

•

LifeTime and LifeTime II offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 4 fund options –Preserver, Protector, Balancer and Maximiser.

•

LifeLink Super is a single premium Unit Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market.

37

•

Premier Life is a limited premium paying plan that offers customers life insurance cover till age of 75.

•

InvestShield Life is a Unit Linked plan that provides capital guarantee on the invested premiums and declared bonus interest.

•

InvestShield Cash is a Unit Linked plan that provides capital guarantee on the invested premiums and declares bonus interest along with flexible liquidity options.

•

InvestShield Gold is a Unit Linked plan that provides capital guarantee on the invested premiums and declares bonus interest along with limited premium payment terms.

Protection Solutions •

LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 options –level term assurance with return of premium and single premium.

•

HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.

Child Plans •

SmartKid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child’s life.

SmartKid plans are also available in unit-linked form – both single premium and regular premium.

38

Retirement Solutions •

ForeverLife is a retirement product targeted at individuals in their thirties.

•

SecurePlus Pension is a flexible pension plan that allows one to select between 3 levels of cover.

•

Market-linked retirement products

• •

LifeTime Pension II is a regular premium market-linked pension plan.

•

LifeLink Pension II is single premium market linked pension plan.

•

InvestShield Pension is a regular premium pension plan with a capital guarantee on the investible premium and declared bonuses

•

Golden Years: is a limited premium paying retirement solution that offers tax benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and payout stages.

Health Solutions •

Health Assure and Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policy holder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover

Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be

39

customized to structure schemes that can provide benefits beyond the statutory obligations. ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death. Flexible Rider Options ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer. 1. Accident and disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit. 2. Accident Benefit: This rider option pays the sum assured under the rider on death due to accident. 3. Critical Illness Benefit: Protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death

4.Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available in SmartKid, SecurePlus, and CashPlus. 40

5.Waiver of Premium: In case of total and permanent disability due to an accident, the premiums are waived till maturity. This rider is available with SecurePlus and CashPlus.

Equity Indices

30-Jun-09 29-May-09 % Change 14,494 14,625 -0.9 S&P CNX NIFTY (50) 4,291 4,449 -3.6 INDIA BSE MIDCAP 5,076 5,057 0.4 CNX MIDCAP INDEX 5,427 5,359 1.3

Market Overview BSE SENSEX

41

Global Indices DOW JONES INDUSTRIALS HANG SENG FTSE 100 NIKKEI 225 STOCK AVERAGE

42

30-Jun- 29-May% 09 09 Change 8,447

8,500

-0.6

18,379 4,249

18,171 4,418

1.1 -3.8

9,958

9,523

4.6

Benchmark Returns BSE 100 CRISIL Bond Index

1Y 3Y 5Y 7.70 12.05 24.21 11.20% 6.90% 5.34%

GDP Growth 5 Year CAGR 8.80%

FY 08 9.00%

9M FY 09 6.70%

The above data show that the in the recession time when the larger company are in problem , but this company stay in good position and very soon he able to came out himself from himself this crisis . In month of the June, when our country was running in the deflation the icici prudential face only a bit the change in their average growth , which is very less in compare to the all sector .

43

HIERARCHY OF THE COMPANY Five scope branch

One hub branch

Five hub branch

A regional office

Three regional

44

One divisional office

COMPARATIVE STUDY 1) LIFE TIME VS LIC BIMA PLUS ON THE BASIS OF AGE: LIFE TIME0-60YEARS BIMA PLUS12-55 YEARS

ON THE BASIS OF TERM: LIFE TIMEMinimum premium payment term of three years. BIMA PLUS10 YEARS

ON THE BASIS OF SUM ASSURED: LIFE TIMEChoose your sum assured; subject to a minimum sum assure of Rs 1 lakh. BIMA PLUSMaximum limit up to Rs 12 lakh.

ON THE BASIS OF SURVIVAL BENEFIT: 45

LIFE TIMEValue of unit three years onward. BIMA PLUSBid value of the funds units along with maturity bonus at 5% of sum assured.

ON THE BASIS OF DEATH BENEFIT: LIFE TIMEHigher of sum assured of value of units. BIMA PLUSDeath during the first six month-30% of SA+value of units, next six months-60% of SA+value of units. Death after first year-SA+value of units.

ON THE BASIS OF WITHDRAWAL BENBEFIT: LIFE TIMEPartial or complete withdrawal is available from three years onwards. BIMA PLUSPremature withdrawal allowed after one year.

ON THE BASIS OF CONTRIBUTION: LIFE TIMEMinimum Rs 18000 per annum. BIMA PLUSNot specified.

ON THE BASIS OF INVESTMENT OPTION: LIFE TIMEMaximiser, balancer, protector and preserver. BIMA PLUSBalanced, secured and risk. 46

2)LIFE TIME VS MAX NEW YORK LIFE MAKER ON THE BASIS OF AGE: LIFE TIME0-60 YEARS. LIFE MAKER12-60 YEARS.

ON THE BASIS OF TERM: LIFE TIMEMinimum premium payment term of three years. LIFE MAKER10-58 YEARS.

ON THE BASIS OF SUM ASSURED: LIFE TIMEChoose your sum assured subject to a minimum sum assured of Rs1lakh. LIFE MAKERChoice of 2 insurance covers.

ON THE BASIS OF SURVIVAL BENEFIT: LIFE TIMEValue of units three years onwards. LIFE MAKER47

Value of units.

ON THE BASIS OF WITHDRAWAL BENEFIT: LIFE TIMEComplete or partial withdrawals are available after three years. LIFE MAKERPartial withdrawals are available from the third year and complete withdrawals are available from first year onwards itself, subject to surrender penalties.

ON THE BASIS OF CONTRIBUTION: LIFE TIMEMinimum premium of Rs18000 per annum. LIFE MAKER-

Minimum premium of Rs15000 per annum.

ON THE BASIS OF INCREASE OR DECREASE OF DEATH BENEFIT: LIFE TIMEAvailable LIFE MAKERNot available

ON THE BASIS OF BONUS UNIT: LIFE TIMEAvailable LIFE MAKER48

Available in the last policy year.

3) LIFE TIME VS HDFC LINKED ON THE BASIS OF AGE: LIFE TIME0-60 YEARS LINKED18-60 YEARS

ON THE BASIS OF TERM: LIFE TIMEMinimum premium payment term of three years. LINKED10-30 YEARS

ON THE BASIS OF SUM ASSURED: LIFE TIMEChoose your sum assured, subject to a minimum sum assured of Rs1 lakh. LINKEDOnly 5-20 (age based) multiples are allowed as assured.

ON THE BASIS OF SURVIVAL BENEFIT: LIFE TIMEValue of units third year onwards. LINKED-

49

Value of units.

ON THE BASIS OF DEATH BENEFIT: LIFE TIMEHigher or sum assured or value of units. LINKEDHigher or sum assured or value of units.

ON THE BASIS OF WITHDRAWAL BENEFIT: LIFE TIMEPartial or complete withdrawals are available from third year onwards. LINKEDPartial withdrawals are available from third year onwards provided, that the value of units does not go below the sum assured.

ON THE BASIS OF CONTRIBUTION: LIFE TIMEMinimum Rs18000 per annum. LINKEDMinimum Rs10000 per annum.

ON THE BASIS OF INVESTMENT OPTION: LIFE TIMEMaximiser, balancer, protector and preserver. LINKED-

50

Five fund option-balancer, defensive managed safe managed, liquid and growth.

4) LIFE TIME PENSION-2 VS LIC JEEVAN NIDHI ON THE BASIS OF AGE: LIFE TIME PENSION-218-60 YEARS. JEEVAN NIDHI18-65 YEARS.

ON THE BASIS OF TERM: LIFE TIME PENSION-2Minimum term of 10 years. JEEVAN NIDHI5-35 years.

ON THE BASIS OF SUM ASSURED: LIFE TIME PENSION-2Default sum assured is zero, however, the policy holders can also opt for a sum assured. JEEVAN NIDHIMinimum of Rs50000 and multiples of Rs5000 thereafter.

ON THE BASIS OF SURVIVAL BENEFIT: 51

LIFE TIME PENSION-2Unit value to purchase an annuity. JEEVAN NIDHISum assured+gurantee additions+terminal bonus.

ON THE BASIS OF DEATH BENEFIT: LIFE TIME PENSION-2Value of units in case the sum assured is zero. In case a sum assured is chosen, it will be higher of the sum assured or value of units. JEEVAN NIDHISum assured+guarantee additions+simple reversion bonus+terminal bonus.

ON THE BASIS OF CONTRIBUTION: LIFE TIME PENSION-2Minimum Rs10000 per annum. JEEVAN NIDHIMinimum Rs3000 per annum.

ON THE BASIS OF INVESTMENT OPTION: LIFE TIME PENSION-2Protector pension, balancer pension, maximiser pension and pension preserver. JEEVAN NIDHI: Not available.

ON THE BASIS OF INCREASE OR DECREASE OF DEATH BENEFIT: LIFE TIME PENSION-2Not available. JEEVAN NIDHINot available. 52

Future Function Snapshot Company: ICICI Prudential Project: Total automation of HR processes IT Head / Project Lead: Anita Pai, Executive VP—Customer Service and Technology Operating in a highly competitive industry, ICICI Prudential wanted to move towards the goal of a paperless office by automating processes in different HR functions. This would improve process efficiencies and result in substantial cost reduction. With this aim, ICICI Prudential embarked on an exercise to develop a fully integrated HR system using highly customized core HRMS ERP software and non-core satellite applications. Accordingly, the firm designed a solution that had two major components: core HRMS and satellite applications. Core HRMS activities included customization on PeopleSoft HCM 9.0. Subsequently, non-core satellite .

53

Munger Branch Opening date: 21 July 2007

Sales manager (branch manager)

Amit shekar Employees :– 4 Agnies member

18 unit manager 1 manager business manager B.P :– Business partner 10 1 office C.P.A 3 stiff guard Turn over Target 5000000crore 50000000 40000000 30000000 20000000 10000000 0

54

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

The above data show the detail of 4 year achievement of the Munger.

Total percentage of Munger Branch In the life insurance sector Approx ICICI Prudential LIC Aviva Life Insurance Bajaj Allianz Other Co.

55

: - 25% : - 50% : - 5% : - 3% :- 17%

SWOT ANALYSIS

56

STRENGTHS

 ICICI Prudential is the largest private player in India, with a market share of around 36% amongst the private players  ICICI Prudential has deposited a paid up capital of Rs 925 crore with IRDA caution deposit, the highest among all the life insurance company in India where as LIC has deposited Rs 60 crore so far.  ICICI Prudential is the first life insurance company to offer ECS debit facility.  ICICI Prudential is the first company to introduce unit link life insurance and pension products. Presently the maximum numbers of ranges are under ULIP life insurance, investment as well as pension plan.  Products  Flexibility to switch your fund value at your own discretion four times a year viz. maximizer, protector, balancer, preserver.  Greater transparency-policy holder knows what is happening to his money and where the company has invested his money.  Liquidity options-you can make complete or partial withdrawals any time after 3 years.  Life insurance plans are eligible for deduction under sec 80.

57

WEAKNESSES:  Industry in nascent stage.  Rural areas still not covered.  Not very known among Indian population.  Lack of credibility among the people because ICICI being a private player.  Premiums are high as compared to its competitors.  Very few branches in the country.  Products:  The policy doesn’t have the surrender option before third year.  Plan does not offer any guarantee or assured return.  Product profile is not very comprehensive.  Mortality, management and administrative charges are sky scrapping as compared to its competitors.

OPPORTUNITIES  Liberalization of Indian economy.  As the industry is growing the whole market is virgin.  The whole private sector is opened to be trapped even though the competition is fierce from government owned insurance companies.  It’s a volume business that is even if the company has few good corporates the turnover cease to increase by manifold.  Products:  Preserver funds look good due to comfortable liquidity in the economy and there is little chance hike in short-term rate by RBI. 58

 Finance minister unveiled a budget favoring consumer spending, boosting demand and therefore higher economic growth.

THREATS  The government players will become aggressive thus growth is going to be tough.  Entry of other players is not ruled out.  Apprehension towards ICICI Prudential being a private life insurance company.  We expect the industry to rationalize in future that is mergers and acquisitions will happen, which will impact the industry and ICICI Prudential fortunes.  Products:  Past performance of these plans is not indicative of the future performance of the plan.  The sum invested in the funds is subject to market risks and there can be no assurance that the objective of plan will be achieved.  All benefits payable under the policy are subject to tax laws and other financial enactment, as they exist from time to time.

59

Research Methodology

60

Statement Of Problem: The research is carried on in a proper planned and systematic manner.  The research was particularly a telephonic research. We have to sell products to list of people which include their names and contact numbers given by ICICI.  During the telephonic we have to sell different products by explaining the benefits of a particular product, but. The minimum amount for selling a policy to a customer is equal to or more then Rs. 12000 only.  Age limit for selling a product/policies was 1 month to 60 yrs – this mean that a policy can be sold to person between the age of 1 month to 60 yrs and not anything exceeding or below it. Research Design: The research design of this project is exploratory. Though each research study has its own specific purpose but the research design of this project on ICICI is exploratory in nature as the objective is the development of the hypothesis rather than their testing. 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.

According to Clifford Woody,

61

“Research Methodology comprises of defining & redefining problems, collecting, organizing &evaluating data, making deductions &researching to conclusions.” Accordingly, the methodology used in the project is as follows:  Defining the objectives of the study  Framing of questionnaire keeping objectives in mind (considering the objectives)  Feedback from the employees  Analysis of feedback  Conclusion, findings and suggestions. Sampling Technique Used: This research has used convenience sampling technique. 1) Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient Selection of Sample Size: For the survey, a sample size of 50 has been taken into consideration. Sources of Data Collection: Research will be based on two sources: 1. Primary data 2. Secondary data

1) PRIMARY DATA: 62

Questionnaire: Primary data was collected by preparing questionnaire for customers. The questionnaire was filled through telephonic research.

2) SECONDARY DATA: Secondary data will consist of different literatures like books which are published, articles,

internet

,

the

company

manuals

and

websites

of

company-

www.iciciprulife.com. In order to reach relevant conclusion, research work needed to be designed in a proper way. This research methodology also includes: Familiarization with the concept of insurance and its various terms.  Thorough study of the information collected.  Conclusions based on findings. Statistical Tools Used The main statistical tools used for the collection and analyses of data in this project are:  Questionnaire  Pie Charts  Bar Diagrams

\

63

Limitations of study Due to the following unavoidable and uncontrollable factors the factors,the result might not be accurate. Some of the problems faced while conducting the survey are as follows: Time and cost constraints were also there.  Chances of some biasness could not be eliminated.  A Samples size of fifty has been use due to time limitations.  A majority of respondents show lack of cooperation and are biased towards their own opinions.

64

Data Analysis & Findings

65

Data Analysis Q1. Are you currently insured? Particulars

No. of Respondents

Percentage

Yes No Total

31 19 50

62% 38% 100%

No. of Respondents

19 Yes No 31

ANALYSIS: From the survey it was found that amongst 50 respondents a) 62% of the respondents are already insured. b) 38% of the respondents are not insured. 66

Q2. Are you satisfied with your current insurer?

Particulars

No. of Respondents

Percentage

Yes No Total

41 9 50

82% 18% 100%

No. of Respondents

9

Yes No

41

ANALYSIS: From the survey it was found that amongst 50 respondents a) 82% of the respondents are satisfied. b) 18% of the respondents are not satisfied. 67

Q3. Which one is your favored insurance company?

Particulars LIC ICICI HDFC Birla Sun Life Bajaj Allianz Others Total

No. of Respondents

Percentage

24 7 5 4 4 6 50

48% 14% 10% 8% 8% 12% 100%

0.6

Share in %

0.5 0.4 0.3 0.2 0.1 0 LIC

ICICI

HDFC

Birla Sun

Bajaj Allianz

Insurance companies

ANALYSIS: From the survey it was found that amongst 50 respondents

68

a) b) c) d) e) f)

48% of the respondents likes LIC. 14% of the respondents likes ICICI. 10% of the respondents likes HDFC. 8% of the respondents likes Birla Sun Life. 8% of the respondents likes Bajaj Allianz. 12% of the respondents likes other companies.

Others

Q4. Are you interested in the products offered by ICICI Prudential ?

Particulars

No. of Respondents

Percentage

Yes No Can’t Say Total

30 12 8 50

60% 24% 16% 100%

No. of Respondents

8

Yes No 12

30

Can't Say

ANALYSIS: From the survey it was found that amongst 50 respondents

69

a) 60% of the respondents are attracted towards ICICI products. b) 24% of the respondents are not attracted towards ICICI products. c) 16% of the respondents Can’t Say about it.

Q5. What is your main concern while taking an insurance policy ?

Particulars

No. of Respondents

Percentage

Tax Benefit Security Investments/Savings Total

20 16 14 50

40% 32% 28% 100%

No. of Respondents

25 20 15 Series1 20

10

16

14

5

ng s av i en t/S In ve st m

Se cu rit y

Ta x

Be ne fit

0

ANALYSIS: From the survey it was found that amongst 50 respondents a) 40% of the respondents are concerned about Tax Benefit. b) 32% of the respondents are concerned about their Security. c) 28% of the respondents are concerned about Investment/Savings. 70

Q6. Does this policy satisfy your financial needs? (Please rate on the scale of 1 to 5 with 1 being least satisfied) Rating

No. of Respondents

Percentage

1 2 3 4 5 Total

9 9 8 10 14 50

18% 18% 16% 20% 28% 100%

1 2 5

3

4

ANALYSIS: From the survey it was found that amongst 50 respondents

71

a) b) c) d) e)

18% of the respondents are Highly unsatisfied. 18% of the respondents are Unsatisfied. 16% of the respondents are Moderate. 20% of the respondents are Satisfied. 28% of the respondents are Highly satisfied.

1 2 3 4 5

Q7. Please express your opinion for the premiums paid for the above policy?

Particulars

No. of Respondents

Percentage

Very High High Moderate Low Very Low Total

14 11 13 8 4 50

28% 22% 26% 16% 8% 100%

No. of Respondents

4 8

14 Very High High Moderate Low Very Low

13

11

ANALYSIS: From the survey it was found that amongst 50 respondents

72

a) 28% of the respondents think that Premium is Very High. b) 22% of the respondents think that Premium is High. c) 23% of the respondents think that Premium is Moderate. d) 15% of the respondents think that Premium is Low. e) 12% of the respondents think that Premium is Very Low.

Q8. How do you come to know about this policy?

Particulars

No. of Respondents

Percentage

Advertisements Friends and Relatives Direct Selling Agents Others Total

10 12 21 7 50

20% 24% 42% 14% 100%

No. of Respondents

7

10 Advertisements Friends and Relatives Direct Selling Agents 12

Others

21

ANALYSIS: From the survey it was found that amongst 50 respondents

73

a) 20% of the respondents know about it from Advertisements. b) 24% of the respondents know about it from Friends and Relatives. c) 42% of the respondents know about it from Direct Selling Agents. d) 14% of the respondents know about it from Other Sources.

Q9. Are you satisfied with the incentives (tax benefits or Bonuses) associated with your policy? Rating

No. of Respondents

Percentage

Highly satisfied Satisfied Moderate Unsatisfied Highly Unsatisfied Total

9 12 10 11 8 50

18% 24% 20% 22% 16% 100%

No. of Respondents

8

9 Highly Satisfied Satisfied Moderate

11 12

Unsatisfied Highly Unsatisfied

10

ANALYSIS: From the survey it was found that amongst 50 respondents

74

a) b) c) d) e)

18% of the respondents are Highly Satisfied. 24% of the respondents are Satisfied. 20% of the respondents are Moderate. 22% of the respondents are Unsatisfied. 16% of the respondents are Highly Unsatisfied.

Q10. According to you, in what areas should the insurance companies work upon? Particulars

No. of Respondents

Percentage

Easy Procedures Fewer premiums More Returns Transparency Total

14 10 9 17 50

28% 20% 18% 34% 100%

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No. of Respondents

16 14 12 10 17

8

Series1

14

6

10

4

9

2 0 Easy Returns

Fewer premiums

More Returns Transperancy

ANALYSIS: From the survey it was found that amongst 50 respondents a) b) c) d) 75

28% of the respondents want Easy procedures. 20% of the respondents want Fewer premiums. 18% of the respondents want More returns. 34% of the respondents want Transparency.

Q11. Do You think that services have improved after allowing private players in insurance sector ? Particulars

No. of Respondents

Percentage

Yes No Total

40 10 50

80% 20% 100%

20% Yes No 80%

ANALYSIS: From the survey it was found that amongst 50 respondents a) 80% of the respondents think that services have improved. b)20% of the respondents think that services have not improved.  76

FINDINGS

Research finding On an analysis and evaluation of the data collected from the respondents the following findings were found. •

Before establishment of private concerns the share of LIC was 22% hence there is a wide scope for private concerns to enter in to market.

•

Total 100 respondents have been approached out of which 75 are the potential respondents who have shown interest for investment and finance plan

•

Above 20% of respondents are shown interest for investment and financial plan

•

About 33.33% of respondents are not interest to give their personal records.

•

About 12.67% of respondents have already been covered by other insurance companies.

•

About 10% of respondents have given invalid records.

•

About 10% of respondents are newly employed or trainees.

•

About 10% of respondents interested for investment plan after knowing ICICI PRUDENTIAL LIFE INSURANCE products.

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Implication in company Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI invested, in terms of work force, in terms of market share, in terms of no. of customers. All these positive stands of the company place at the number one position. On second aspect whatever amount of money ICICI Prudential save, can be used to increase the no. of policies, which will helpful to increase the market share of the company. Since the customers think about the companies in the industry, when they invest money in the life insurance industry. So it’s necessary to increase the market share of the company. There are some recommendations.

•

Open some more branches in semi urban and rural area. ICICI Prudential has almost its branches in urban area or metros. So in order to increase the no. of customer, ICICI Prudential should increase the approach towards potential customers. For that it has to increase the branches in the semi urban cities like C, D grade cities. And the rural marketing is the best option for ICICI Prudential to increase its base in the market

•

Improve customer services. In order to take the advantage of being industry leader in private sector, ICICI Prudential has to improve its customer services. According to my experience in the company, a good number of customers forget to pay their premium at time so it causes a big loss to the company. ICICI Prudential has already collaborated with the ICICI bank for its Bancassurance facility and then can include another feature in it. ICICI bank can offer a bank account with the life insurance policy in which an ATM card will be provided. This card will have all the information

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regarding the policy as like future premium payment dates, payment made, money value of the policy at that date, value of the unit linked plan and all other information what the customer want. This will help the customer to pay premium on time and save their losses. This will be mutually helpful for both sister companies, ICICI bank will get new account and ICICI prudential will be able to more efficient services to their customers. •

Bring some unit linked life insurance plans in the market. Being a market leader doesn’t ensure the leadership in the future. Since after increment in FDI from 26% to 49% all player will have the opportunity to capture the market share. So in order to maintain its position ICICI Prudential should

-Introduce some new market linked insurance plan, which will give a competitive advantage to the ICICI Prudential against its competitors. •

Trained the financial advisors more efficiently. In the changed scenario, more efficient training will be needed, so ICICI Prudential should provide good and efficient training to their financial advisors. Because they are the one who interact directly with the customers. So good training will give them the right way to deal with the potential customers.

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Limitation While working on the topic assigned to me for research work, I have chosen the way of random sampling. But while carrying out the work I have faced the following problems i.e. limitation to my studies:  In the month of June to August in when the temperature was high & due to frequent power cut in city some people were not ready to talk over the topic covered under Questionnaire.  Due to uneven social environment in Sadar, the area was not fully covered as planned. While involved in advisor recruitment process, sometime not got appointment from the persons due to their busy schedule

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SUGGESTIONS 1. More lucrative plan should be launched. 2. Company should also check the plans whether the plans are

going either in proper

manner or not. 3. Plans should not be so complicate that customer should be problem to understand. 4. There should be launch only appropriate not in large way. 5. Advertising must be done properly specially in rural area and should launch special plan. 6. Open branch also in rural area. 7. Special gift should be given to agent if work properly 8. Public welfare plan should be undertaken specially in rural area in order to highlight the company image before the government

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Conclusion The study of different aspects and functional marketing programs and visibility in and around the Munger, leads to number of conclusions, which can put in the following words . ICICI PRUDENTIAL got a better position and giving the rough competition to other insurance company. 1. Now almost customer likes it due to good service facility. 2. There are lots of plan available in this company 3. New plan 80(D) has got a significant position in the market. 4. Today Icici

pru become a most popular company among others insurance

company 5. ICICI Prudential Jeetey Raho is excellent

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BIBILOGRAPHY Reference books Concepts of marketing 1.

Marketing management

-- Philip kotler

2.

Marketing research

-- C.R.Kothari

3. Consumer behavior 4. Marketing management 6. Others sources  Internet www.icicipru.com www.icici.com www.prudential.co.uk

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-- Schiffman -- Ranjan sexena

ANNEXURE

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QUESTIONNAIRE Dear Sir/Madam, I am a student of IIMT Professional College, Meerut, conducting a marketing survey on “CONSUMER BEHAVIOUR AND CUSTOMER SATISFACTION of ICICI Prudential LIFE INSURANCE, IN MUNGER CITY”. I request you to fill this questionnaire & I assure that this data will be used only for study purpose & it will be kept confidential. Name Address

_________________________________ _________________________________ _________________________________ _________________________________

1.Age Less than 25 25 – 35

c. 35-45 d. 45 and above

2.Qualification Graduate Postgraduate

c. Diploma d. Other discipline

3.Occupation Business Professional

c. Job holder d. Other

4. What is your average annual income? Up to 1 lakh 1 lakh to 3 lakhs 3 lakhs to 5 lakhs 5 lakhs and more

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5.Your family size Below 5 members 5 – 10 members Above 10 members

6.According to you life insurance is, A tax saving plan A saving scheme with good return A financial security for the family Risk coverage All the above 7.Have you taken any life insurance product of ICICI Prudential Life insurance? YES

NO

If yes 8..Which are in these? Unit gain plan Invest gain plan Whole life plan Children plan Pension plan Others __________________ 9.. Are you aware of the benefits in your policy? Yes No If yes what are they? Sum assured Additional benefits Maturity date Risk coverage

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10.. According to you what are the disadvantages in an insurance plan? Lapsation Liquidity Fixed term Unable to decide your premium Unable to decide the sum assured High risk coverage at high premiums Other disadvantages 11. In which of the following would you like to invest? Equity fund Debt fund Balanced fund Cash fund Mutual fund Recurring deposits 12.

Any suggestion for ICICI Prudential Life Insurance ______________________________________________________ ______________________________________________________ Thank you for sparing your valuable time

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