13099560 Service Management

SERVICE MANAGEMENT

INSURANCE INDUSTRY

GROUP MEMBER

Vinod Parmar - 41 Ashok Manda - 28 Kartik Sangani - 52 Dhawal Parmar - 40

Flow of Presentation

Overview

LIC

ICICI Prudential

Conclusion

OVERVIEW

Insurance sector size is estimated at Rs.500 billion.

Annual growth rate of 15-20%

Only 400 million people can afford

20% have insurance

22 players

WHY INSURANCE ?

FUNCTION

provide protection against the possible chances of generating losses

eliminates worries and miseries of losses by destruction of property and death

provides capital to the society

7 P’s

Product Price Place Promotion People Process Physical Distribution

One of the World’s Largest Life Insurance Company

LIFE INSURANCE CORPORATION OF INDIA

Introduction

Mission and Vision

MissionEnsure & enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development.

Vision

A trans-nationally competitive financial conglomerate of significance to societies & PRIDE OF INDIA

Values Initiative and Innovation

• Integrity and Transparency

• Participation and Relationship

• Trustworthiness and Reliability

7 P’s of Marketing Mix PRODUCT

• PRICING • PLACE

• PROMOTION

• PEOPLE • PROCESS

• PHYSICAL DISTRIBUTION

AC Nielsen ORG-MARG Survey 2004 to 2007

(For the 4th consecutive year)

About Company

Joint Venture

First Private Insurance Company

First Company to get AAA Rating by Fitch

Most Trusted Private Life Insurer: Economic Times

Vision

Be dominant in Life, Health and Pension Player

Strategies

•Understanding needs of Customers

•Levering Technology

•Risk management and Investment Strategies

•Growth and Learning for Employees

•Transparency

• Traditional Plans

- Steady Investment

- Generally withdrawals are not allowed• Unit Linked Insurance Plan

- Flexibility

- Transparency

- Liquidity

- Fund options (funds from equity, debit , cash..)

Insurance plans

Insurance Plans

Education Insurance

PLAN TYPE PLAN NAME

1) Smart kid new regular Unit linked

2) Smart kid new single Unit linked

3) Smart kid regular Premium Traditional

PLAN TYPE PLAN NAME

1) Investshield Life New Unit Linked

2) Investshield Cash bank Unit linked

Premium Guarantee Plan

PLAN NAME PLANT TYPE

1) Life Guard Traditional

2) Save “n” Protect Traditional

3) Cash Bank Traditional

4) Home Assure Traditional

Protection Plan

Retirement PlansPLAN NAME PLANT TYPE

1) Life Link Super Pension Plans

Traditional

2) Lifetime Super Pension Plans

Traditional

PLAN NAME PLAN TYPE

1) Life Time Gold Unit Linked

2) Life Link Super Unit Linked

3) Premier Life Gold Unit Linked

4) Life Time Plus Unit Linked

5) Life Stage Unit Linked

PLAN NAME PLAN TYPE

1) Crisis Cover Unit Linked

2) Hospital Care Unit Linked

3) Diabetes Care/ Diabetes Care Plus Unit Linked

4) Cancer Care Unit Linked

5) Health Assure Plus Unit Linked

Health Care Plans

Health Care Plans

Summary of key achievements

Sustained private market leadership: 6 years in

a row

More than 6 million policies sold

Rs 284.09 bn (USD 7.2 bn) of assets held

Awarded most respected private life insurer

Fitch rating of ‘AAA (Ind)’

Total premiums of Rs 77.58 bn (USD 2.0 bn) in

9m-2008

Distribution & Scale

● Rural foray: Continue to expand to smaller towns to take advantage of potential market and increased affluence

● Expand advisor base with focus on efficiencies

● Leverage technology to match scale

Going forward

Profitability

Comprehensive & customer centric product portfolio

Thrust on pensions and health Continue to focus on innovation

Product

Disclosure Enhanced business and financial

reporting

Manage expenses through increased efficiency and economies of scale

Reasons for Success Strength of the ICICI Bank

brand behind it Started out with the

traditional endowment products

Started offering Ulip policies from Year 1 and was selling more policies

Endowment products had little transparency

Product innovation First to come up with health

products

Allowed customers to pay varying amounts depending on the stage of life

ICICI's upfront charges have always been lower

Competitors charged 50-60 per cent of the first year premium, ICICI charged 18-20 per cent

ICICI remains among the top advertisers

Big advantage of leverage of customer base of its parent.

Pension Plans

LIC

Jeevan Needhi

Features:- Regular Premium Retirement option from age

of 40 Years Joint Life Last Survivor

Annuity: 50% Annuity

ICICI Prudential

LifeLink Super Pension

Features:- Option of One time Permium Retirement option from age of

45 years Joint Life Last Survivor

Annuity: 100% Choice of Investment Switching option

Child Plans

Child Fortune Fund Life Insured: Child Death Benefit: Sum

Assured Maturity Benefit: Fund

Value paid in Lump sum

Smart Kid Unit Linked Life Insured: Parent Death Benefit: Sum

Assured + Policy Benefit Maturity Benefit: Fund

Value settlement options Riders Available: Income

Benefit, Accidental death and Benefit

Choice of Investment Funds

Conclusion

Thank You