project report on icici

A SUMMER TRAINING PROJECT

REPORT ON

“

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE AWARD OF THE

DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION Session (2011-13)

Submitted to: Submitted By

PROF. SHWETA BATRA PRITESH KUMAR

( HOD Of Management Department) MBA: 3rd sem

ROLL NO: 111290051

\\Forte Institute of Technology, Meerut

A

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SUMMER TRAINING PROJECT REPORTON

“MARKETING SURVEY AND CHANNEL

DEVELOPMENT”

ICICI PRUDENTIAL LIFE INSURANCE LTD. ”

SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF Master of Business Administration

(Mahmaya Technical University Noida)

ACADEMIC SESSION: 2011 – 2013

UNDER THE GUIDANCE OF: SUBMITTED BY:

Ms. PARUL UPPAL MOH Azhar Khan [H.O.D. of Management] MBA 3rd Sem

GYAN BHARTI INSTITUTE OF TECHNOLOGY PARTAPUR

BYPASS MEERUT

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ACKNOWLEDGEMENT

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ACKNOWLEDGEMENT

Presenting a Project report of this type is an arduous task, demanding a lot of time. I

cannot in full measure appreciate and acknowledgement the kindness shown and help

extended by various persons in this endeavor. I will remember all of them with gratitude.

I must, however, especially Render & My special sincere thanks towards project guide

Mr. ___________________ (Unit Manager) giving me a chance to take this research for

his valuable guidance, which helped me on all those points, which I needed to include in,

with full intensity.

My sincere thanks are also due to Pro. Parul Uppal, HOD of Management I can’t for

their sign if help extended for the successful completion of the project. I highly the help I

got from them in providing me and a lot of information regarding the functioning of this

organization.

I am always be holder to my God, for always being with me and showing me the right

ways, my family, for always doing favors to me and my friends and colleagues

consistently helped with encouragement and criticism throughout the research work, for

always lifting my sights to higher vision, raising my personality beyond normal limitation

and for realizing me my strengths and potential, as I did not always welcome her

exhortation, “try again; you can do better.” But this research owes a great deal to it – and

so do I.

Ankit Dutt

( MBA III SEM )

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DECLARATION

My self Ankit dutt Student of MBA III SEM here by declared that the

Project report entitled ‘ ANALYSIS OF MARKETING SURVEY AND

CHANNEL DEVELOPMENT ” ICICI PRUDENTIAL LIFE

INSURANCE LTD. is completed and submitted to Prof.Parul Dutt, HOD

of Management (Gyan Bharti Institute of Technology, Meerut is my original work.

The imperial finding in this report is based on the data collected by me. I have not

submitted this project report any other University for the purpose of compliance

of any requirement of any Examination or Degree.

Ankit Dutt

MBA III SEM

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PREFACE

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 2009-

10 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.

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CONTENTS

1. Preface

2. Introduction

3. Statement of the problem

4. Objective of the study

5. Significance of the study

6. Research methodology

7. Industry profile

8. Company profile

9. product/services profile

10. Data analysis and interpretation

11. Findings

12. Recommendations to company:

13. Appendix

14. Questionnaire

15. Bibliography

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INTRODUCTION

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.

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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

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.

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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”.

In 1818 British introduced to India, with the establishment of the oriental life insurance

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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.

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Fundamental principles of life insurance contract;

1) Principle of almost good faith:

“A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk

being proposed whether requested or not”.

2) Principle of insurable interest:

“Relationships with the subject matter (a person) which is recognized in law and gives

legal right to insure that person”.

2) Non-life (general) Insurance:

Triton insurance co. ltd was the first general insurance company to be established in India

in 1850, whose shares were mainly held by the British. The first general insurance

company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was

stabilized in 1907 . there emerged many a player on the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of General

Insurance Corporation (GIC) OF India undertook the post-nationalization general

insurance business.

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CONCEPTUAL BACKGROUND

Satisfaction is defined as . . .

“A person’s feeling of pleasure or disappointment resulting from comparing a product’s

perceived performance (or outcome) in relation to his or her expectations.”

Customer Satisfaction can be defined as supplying or gratifying all wants or wishes,

fulfilling conditions or desires, or the state of the mind anything that makes a customer

feel pleased or contented.

Consumer Behavior:

Consumer behavior is defined as the behavior that consumers display in searching for,

purchasing, using, evaluating and disposing of products and services that they expect will

satisfy their needs.

The study of the processes involved when individuals or groups select, purchase, use, or

dispose of products, services ideas, or experiences to satisfy needs and desires

Customer value: The ratio between the customers’s perceived benefits (economic,

functional and psychological) and the resources (momentary, time, effort, psychological)

used to obtain those benefits.

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Customer satisfaction: Customer satisfaction is the individual’s perception of the

performance of the product or service in relation to his or her expectations.

Motivation: The processes that account for an individual’s intensity, direction, and

persistence of effort toward attaining a goal.

Personality can be described ad the psychological characteristics that both determine

and reflect how person responds to his or her environment.

Perception is defined as the process by which an individual selects,

organizes, and interprets stimuli into a meaningful and coherent picture of

the world.

Consumer learning is the process by which individuals acquire the purchase and

consumption knowledge and experience they apply to future related behavior.

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THE CONSUMER ADOPTION PROCESS

The consumer adoption process is the process by which customers learn about new

products, try them, and adopt or reject them. Today many marketers are targeting heavy

users and early adopters of new products recognizing that specific media can reach both

groups and tend to be opinion leaders. The consumer adoption process is influenced by

many factors beyond the marketer’s control, including consumers and organizations

willingness to try new products, personal influences and the characteristics of the new

products or innovations

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STAGES OF ADOPTION PROCESS

An innovation refers to any good, service, or idea. That is perceived by someone as new.

The idea may have long history, but it is an innovation to the person who sees it as new.

Innovation takes time to spread through the special system. The consumer adoption

process focuses on the mental process through which an individual passes from first

hearing about an innovation to final adoption. Adopters of new products have moved

through the following five stages.

1. AWARENESS: The consumer becomes aware of the innovation but lacks

information about it.

2. INTEREST: The consumer is stimulated to see the information about the

innovation.

3. EVALUATION: The Consumer considers whether to try the innovation or not.

4. TRIAL: The consumer tries the innovation to improve his estimate of its value.

5. ADOPTION: The consumer decides to make full and regular use of the

innovation.

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STATEMENT OF THE PROBLEM

“Study of consumer behavior & customer satisfaction towards ICICI Prudential Life

Insurance Products”.

OBJECTIVE OF THE STUDY

For every problem there is a research. As all the researches are based on some

and my study is also based upon some objective and these are as follows.

1. To understand the insurance business and products of ICICI Prudential life

insurance co ltd.

2. To find out the people’s perception about life insurance.

3. To find out whether people were really aware of life insurance.

4. To find out how people think about private life insurance.

5. To find out what respondents expect from life insurance.

6. To understand Consumer buying behavior

7. To come out with conclusion and suggestions based on the analysis

and the Interpretation of data.

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SIGNIFICANCE OF THE STUDY

The project is concerned with the “STUDY ON CONSUMER BEHAVIOR

AND CUSTOMER SATISFACTION AT ICICI PRUDENTIAL LIFE

INSURANCE. This study is very useful as the financial market become more

sophisticated and complex, investor needs a financial intermediary who

provides the required knowledge and professional expertise on successful

investing and 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

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RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. One can also

define research as a scientific and systematic search for pertinent information on

a specific topic.

The word research has been derived from French word Researcher means to

search.

FRANCIES RUMMER defined “Research: It is a careful inquiry or examination

to discover new information or relationship and to expand or verify existing

knowledge.

Research is the solution of the problem, whether created or already generated.

When research is done, some new out come, so that the problem (created or

generated) to be solved.

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RESEARCH DESIGN:

Research Design is the conceptual structure within which research is conducted.

It constitutes the blueprint for collection, measurement and analysis of data. The

design used for carrying out this research is

Descriptive.

DATA TYPE: In this research the type of data collection is

Primary data

Secondary data

DATA SOURCE: The sources of collection of secondary data are:

Questionnaire

Books

Websites

Magazine

Brochure

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SAMPLING PLAN:

It is very difficult to collect information from every member of a population .As

time and costs are the major limitation that the researcher faces.

A sample of 100 was taken the sample size of 100 individuals were selected on

the basis of convenient sampling technique. The individuals were selected in the

random manner to form sample and data were collected from them for the

research study.

ANALYSIS AND INTERPRETATION:

Data collection through questionnaire and personnel interview resulted in

availability of the desired information but these were useless until there were

analyzed. Various steps required for this purpose were editing, coding and

tabulating. Tabulating refers to bringing together similar data and compiling them

in an accurate and meaningful manner. The data collected by questionnaire was

analyzed, interpreted with the help of table, bar chart and pie chart.

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1. INDUSTRY PROFILE

1.1 Insurance in India

The insurance sector in India has come a full circle from being an open competitive

market to nationalization and back to a liberalized market again. Tracing the

developments in the Indian insurance sector reveals the 360 degree turn witnessed over a

period of almost two centuries.

1.2 A Brief history of the Insurance Sector

The business of life insurance in India in its existing form started in India in the year

1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance in India are;

1912: The Indian Life Assurance

For over 50 years, life insurance in India was defined and driven by only one company-

the Life Insurance Corporation of India (LIC). With the Insurance Regulatory and

Development Authority (IRDA) Bill 1999 paving the way for entry of private companies

into both life and general sectors there was bound to be new-found excitement- and new

success stories. Today, just three years since their entry, their cumulative share has

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crossed 13% (source: IRDA), far exceeding expectations. Clearly insurance is on a

growth path.

The percentage of premium income to GDP which was just 2.3% in 2000-01 rose to 3.3%

in 2002-03; and life insurance has emerged as the dominant contributor to this growth.

The industry presented a huge opportunity. Life insurance penetration, for instance, was

at an abysmal 22% of the insurable population. However, private players have had to rise

to many challenges. They were faced with attitudinal barriers towards the category and

the perception that insurance was only a tax saving tool. Insurance per se had lost it basic

rationale: protection. It wasn’t surprising then that its potential lay frozen and

unexploited. The challenge for private insurance players was to change the established

category driver and get customers to evaluate life insurance as an investment-cum-

protection tool.

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PREMIUM UNDERWRITTEN BY LIFE INSURERS

The life insurance industry recorded a premium income of Rs.82854.80 crore during

the financial year 2005-06 as against Rs.66653.75 crore in the previous financial year,

recording a growth of 24.31 per cent. The contribution of first year premium, single

premium and renewal premium to the total premium was Rs.15881.33 crore (19.16 per

cent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36 percent),

respectively. In the year2000-01, when the industry was opened up to the private

players, the life insurance premium was Rs.34,898.48 crore which constituted of Rs.

6996.95 crore of first year premium, Rs. 25191.07 crore of renewal premium and Rs.

2740.45 crore of single premium. Post opening up, single premium had declined from

Rs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in 2002-03 with the

withdrawal of the guaranteed return policies. Though it went up marginally in 2003-04 to

Rs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a significant shift

with the single premium income rising to Rs. 10336.30 crore showing 74.11 per cent

growth over 2003-04.

(Rs. lakh)

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Insurer

2010-11 2011-12

First year premium including Single

premium

LIC* 1734761.74 2065306.36

(6.34) (19.05)

Private Sector 244070.58 556457.34

(152.74) (127.99)

Total 1978832.32 2621763.70

(14.68) (32.49)

Renewal Premium

LIC 4618580.96 5447422.62

(19.47) (17.95)

Private Sector 67962.05 216293.48

(343.12) (218.26)

Total 4686543.01 5663716.10

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(20.75) (20.85)

Total Premium

LIC 6353342.70 7512728.98

(15.63) (18.25)

Private Sector 312032.63 772750.82

(178.83) (147.65)

Total 6665375.33 8285479.80

(18.91) (24.31)

1.3 Brief Review of Scenario – Insurance

Insurance in India started without any Regulation in Nineteenth century.

It was story of a typical colonial era. A few British companies dominated

the market mostly in large urban centers.

Insurance was nationalized mainly on 3 counts First, Indian lives were not insured.

Second, even if they were insured, they were treated as substandard lives and extra

premium was charged. Third, there were gross irregularities in the functioning of Life

insurance was nationalized in the year 1956, and then general insurance was

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nationalized in the year 1972. In 1999, the private insurance companies were allowed

back again into insurance sector with maximum cap of 26 percent foreign holding.

1818 The British introduce to India, with the establishment of the Oriental Life

Insurance company in Calcutta.

1850 Non life insurance debuts, with Triton Insurance Company.

1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer

1907 Indian mercantile Insurance is the first Indian non-life insurer.

1912 The Indian life assurance companies’ act enacted to regulate the life

insurance business.

1938 The insurance act, which forms the basis for most current insurance laws,

replaces earlier act.

1956 Life insurance nationalized, government takes over 245 Indian and foreign

insurers and provident societies.

1956 Government sets up LIC

1972 Non life insurance nationalized, GIC set up.

1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up

to draw up a blue print for insurance sector reforms.

1994 Malhotra Committee recommends re-entry of private players, autonomy ot

PSU insurers.

1997 Insurance regulator IRDA (Insurance Regulatory and Development

Authority) set up.

2000 IRDA starts giving licensed to private insurers

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2001 ICICI Prudential Life Insurance came into the market to sell a policy.

2002 Banks were allowed to sell insurance plans, as TPAs enter the scene,

insurers start settling non-life claims in the cashless mode.

1.4 The Insurance Regulatory and Development Authority (IRDA):

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory body in

April 2000 has fastidiously stuck to its schedule of framing regulations and registering

the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies were the launch of the

IRDA’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the

insurance companies would have a trained workforce of insurance agents in place to sell

their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of

globally compatible regulations. In the private sector 12 life insurance and 6 general

insurance companies have been registered.

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With the demographic changes and changing life styles, the demand for insurance cover

has also evolved taking into consideration the needs of prospective policyholder for

packaged products. There have been innovations in the types of products developed by the

insurers, which are relevant to the people of different age groups, and suit their

requirements. Continued innovations in product development has resulted in a wide range

of flexible products to meet the requirements for cover at different stages of life -today a

variety of products are available ranging from traditional to Unit linked providing

protection towards child, endowment, capital guarantee, pension and group solutions. A

number of new products have been introduced in the life segment with guaranteed

additions, which were subsequently withdrawn/toned down; single premium mode has

been popularized; unit linked products; and add-on/riders including accidental

death; dismemberment, critical illness, fixed term assurance risk cover, group hospital

and surgical treatment, hospital cash benefits, etc. Comprehensive packaged products

have been popularized with features of endowment, money back, whole life, single

premium, regular premium, rebate in premium for higher sum assured, premium mode

rebate, etc., together with riders to the base products.

1.5 Historical Perspective

Prior to 1956 -242 companies operating

1956 -Nationalization- LIC monopoly player -Government control

2001 -Opened up sector

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1.6 Contribution to Indian Economy

Life Insurance is the only sector which garners long term savings.

Spread of financial services in rural areas and amongst socially less privileged.

Long term funds for infrastructure.

Strong positive correlation between development of capital markets and

insurance/pension structure.

Employment generation.

1.7 Insurance Industry prior to de-regulation

Prior to deregulation in 2000, market was a public monopoly.

Public Monopoly

- 2000 Offices

- Over 800,000 agents

Distribution through tied agents only

Sales approach primarily on a tax savings platform

Traditional style product offering : Endowment and money back plans

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Inadequate and inflexible products

Pensions: Small part of product offer

Limited focus on customer needs

1.8 Improving Service Standards

Pre Deregulation – Limited Distribution

Channel Access Service Points Use of IT

Advisors Branch

Network

Limited use of IT

Post Deregulation – Service through Distribution

Multi Channel Access Multiple Service

Points

Use of IT

Advisors

Brokers &

Corporate agents

Call Centers

Email

Website

Shorter time

around time

Claims

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Bancassurance Branch

Network

Policy Issuance

2. 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 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).

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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.

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

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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

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

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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.

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.

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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 Companay

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. 4,793 crores (as of June 30, 2012) with ICICI

Bank and Prudential plc holding 74% and 26% stake respectively. For the period April 1,

-37-

2012 to June 30, 2012, the company has garnered total premium of Rs 2,385 crores and

has underwritten over 13 million policies since inception. The company has assets held

over Rs. 70,000 crores as on June 30, 2012.

ICICI Prudential Life Insurance has maintained its focus on offering a wide range of

flexible products that meet the needs of the Indian customer at every step in life.

-38-

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

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

-39-

http://www.icicibank.com/

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

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.

-40-

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.

-41-

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

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.

-42-

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.

-43-

DISTRIBUTION SYSTEM

Tied Agency

Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large

advisor force that targets various customer segments. The strength of tied agency lies in

an aggressive strategy of expanding and procuring quality business. With focus on sales

& people development, tied agency has emerged as a robust, predictable and sustainable

business model.

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.

-44-

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

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

-45-

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.

-46-

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.

-47-

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

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.

Banc assurance 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 Banc assurance operations.

-48-

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:

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. We also have

-49-

examples of joint ventures between the bank and insurer such as SBI Life and ICICI

Prudential.

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.

-50-

4) Issuance

Issuance means a policy that is issued to the Customer by Central Ops.

5) Decline Status

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.

-51-

-52-

2.4 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

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:

-53-

PRODUCT TYPE

-54-

-55-

Brochures Download Centre

-56-

Online Pay Process

-57-

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.

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

-58-

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

-59-

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.

-60-

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.

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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.

-62-

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

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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 customized to structure schemes that can provide benefits beyond the

statutory obligations.

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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 <

2. Accident Benefit: This rider option pays the sum assured under the rider

on death due to accident.

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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.

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.

DATA ANALYSIS AND INTERPRETATION

1. Age of the respondents

PARTICTULARS NO.OF.RESPONDENT PERCENTAGE

Less than 25 11 11%

25 - 35 40 40%

35 - 45 20 20%

Above 45 29 29%

TOTAL 100 100

-66-

0

20

40

60

80

100

Lessthan 25

25 - 35 35 - 45 Above45

TOTAL

Age of the Respondents

NO.OF.RESPONDENT PERCENTAGE

-67-

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 11% of the respondents are less than 25 years old.b) 40% of the respondents are between 25 and 35 years of age.c) 20% of the respondents are between 35 and 45 years of age.d) 29% of the respondents are more than 45 years of age.

2. Qualification of the respondents.

PARTICUALR

NO.OF.RESPONDENT

PERCENTAGE

Graduate 52 52%

Post Graduate 29 29%

Diploma 8 8%

Other discipline 11 11%

TOTAL 100 100%

-68-

0

20

40

60

80

100

NO.OF.RESPONDENT

PERCENTAGE

Qualification of the Respondents

Graduate Post Graduate Diploma

Other discipline TOTAL

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ANALYSIS:


a) 52% of the respondents were graduateb) 29% of the respondents were post graduatec) 8% of the respondents were diplomad) 10% of the respondents were other discipline

3) Occupation of the respondents

PARTICULARS

NO.OF.RESPONDENT

PERCENTAGE

Business man 34 34%

Professionals 18 18%

Job holders 37 37%

Others 11 11%

TOTAL 100 100%

-70-

0

20

40

60

80

100

NO.OF.RESPONDENT

Occupation of the Respondents

Business man Professionals Job holders

Others TOTAL

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ANALYSIS:


a) 34% of the respondents are businessmen.b) 18% of the respondents are professionals.c) 37% of the respondents are job holders.d) 11% of the respondents are background.

4) Average annual income of respondents.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Up to 1 lakh 33 33%

1 lakh - 3 lakh 43 43%

3 lakh - 5 lakh 20 20%

5 lakh & above 4 4%

TOTAL 100 100%

-72-

0

20

40

60

80

100

NO.OF.RESPONDENT

Average annual income of respondents.

Up to 1 lakh

1 lakh - 3 lakh

3 lakh - 5 lakh

5 lakh & above

TOTAL

5) Family size of respondents


Below 5 members 50 50%

5 - 10 members 32 32%

Above 10 members 28 28%

TOTAL 100 100%

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ANALYSIS:


a) 33% of the respondents have an average annual income up to 1 lakh

b) 43% of the respondents have an average annual income from 1 lakh to 3 lakh

c) 20% of the respondents have an average annual income from 3 lakh to 5 lakh

d) 4% of the respondents have an average annual income above 5 lakh

FAMILY SIZE

50%

32%

28%

below 5 members

5- 10 member

above 10 member

-74-

ANANLYSIS:


a) 50% of the respondents are below 5 members.b) 32% of the respondents are between 5 to 10 members.c) 28% of the respondents are above 10 members.

6) According to life insurance is.

PARTICULARS

NO.OF.RESPONDENT

PERCENTAGE

Risk Coverage 10 10%

Tax Savings 3 3%

Good return 4 4%

Security 3 3%

All the above 80 80%

TOTAL 100

-75-

0

20

40

60

80

100

NO.OF.RESPONDENT

Life Insurance is

Risk Coverage Tax Savings Good return

Security All the above TOTAL

-76-

ANALYSIS:


a) 10% of the respondents say risk coverage.b) 3% of the respondents say tax savings.c) 4% of the respondents say good returns.d) 3% of the respondents say financial security.e) 80% of the respondents say all of the above.

7) Awareness of ICICI Prudential life insurance


Yes 17 17%

No 83 83%

TOTAL 100 100%

-77-

]

-78-

0

20

40

60

80

100

NO.OF.RESPONDENT

Awareness of ICICI Pru

Yes No TOTAL

ANALYSIS:


a) 83% of the respondents say that they are aware of ICICI Prudential life insurance co.

b) 17% of the say that they are unaware of ICICI Prudential life insurance co

8) Awareness regarding insurance.


Yes 2 2%

No 98 98%

TOTAL 100 100%

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010203040506070

8090

100

Yes No TOTAL

INSURANCE AWARENESS

NO.OF.RESPONDENT

PERCENTAGE

-80-

ANALYSIS:From the survey it was found that amongst 100 respondents

a) 98% of the respondents say that they are aware of insurance.b) Only 2% are unaware of insurance.

9) % of respondents who are under different plans of ICICI Prudential life

insurance co.


Invest gain plan 41 41%

Unit gain plan 36 36%

Child gain plan 8 8%

Whole life plan 15 15%

Pension plan No No

TOTAL 100 100%

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INSURANCE PLANS OF ICICI PRUDENTIAL

41%

36%

8%

15%

Invest gain plan Unit gain planChild gain planWhole life planPension plan

-82-

ANALYSIS:


a) 41% of the respondents are under invest gain planb) 36% of the respondents are under unit gain planc) 8% of the respondents are child gain pland) 15% of the respondents are whole life plan

e) No body under pension plan

10) % of respondents benefits of choosing the particular products


Risk coverage 60 60%

Additional benefit 20 20%

Maturity date 12 12%

Sum Assured 8 8%

TOTAL 100 100%

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0

10

2030

4050

6070

80

90100

1 2

Benefits of Particular Products

Risk coverage

Additional benefit

Maturity date

Sum Assured

TOTAL

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ANALYSIS:a) 36% of the respondents say that a benefit of choosing the particular

Product is for Safety of life.b) 20% of the respondents say that a benefit of choosing the particular

products is for additional benefit to familyc) 12% of the respondents say that a benefit of choosing the particular

products is for maturity date d) 8% of the respondents say that a benefit of choosing the particular

products is for sum assured

11) % of disadvantages in insurance plan

PARTICUALRS NO.OF.RESPONDENT PERCENTAGE

Liquidity 35 35%

Lapsation 20 20%

Unable to decide premium 19 19%

High risk coverage 14 14%

Fixed Term 12 12%

TOTAL 100 100%

-85-

0

20

40

60

80

100

NO.OF.RESPONDENT

Disadvantages in Insurance Plans

Liquidity Lapsation

Unable to decide premium High risk coverage

Fixed Term TOTAL

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ANALYSIS:From the survey it was found that amongst 100 respondents

a) 35% of the respondents say that disadvantages in insurance plan are liquidity.

b) 20% of the respondents say that disadvantages in insurance plan are lapsation.

c) 19% of the respondents say that disadvantages in insurance plan is unable decide premium.

d) 14% of the respondents say that disadvantages in insurance plan are high risk coverage at high premium.

e) 12% of the respondents say that disadvantages in insurance plan is fixed term

12) % of respondents who want to invest in these different avenues.

PARTICUALRS NO.OF.RESPONDENT PERCENTAGE

Recurring Deposit 40 40%

Equity Fund 25 25%

Balanced Fund 10 10%

Mutual Fund 11 11%

Debt Fund 5 5%

Cash Fund 9 9%

TOTAL 100 100%

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INVESTMENT AVENUES

40%

25%

10%

11%

5%9%

R.D

Equity

Balanced fund

Mutual Fund

Debt Fund

Cash Fund

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ANALYSIS:

From the survey it was found amongst 100 respondents

a) 40% of respondents say that they want to invest in R.Db) 25% of respondents say that they want to invest in equity c) 10% of respondents say that they want to invest in balanced fundd) 11% of respondents say that they want to invest in mutual funde) 5% of respondents say that they want to invest in debt marketf) 9% of respondents say that they want to invest in cash

CONCLUSIONS

Unit – linked policies are a very valuable addition to the existing array of insurance

producers. But, when sold to a wrong prospect they loose their importance. The

companies should take proper care that well trained and professional agents market these

product.

In view of what was discussed above, I have made certain conclusions regarding the

buyer’s behavior and how a company should approach its prospect buyer.

The life insurance provides a range of wealth management services to its clients, but

it is not making proper efforts in advertising the Policy features and benefits to the

prospects.

As a part of my summer training project I was required to do an analytical study of

different responses by the people of different Age groups, Income groups and

Occupational classes. On the basis data collected I have drawn the following

conclusions:

Related to Age groups:

i. The dominant age group is the group 29-38. Though the Age group 39-48 also

has the same number of policyholders but if we see the number of people having

more than 4 policies we will say that people belonging to this age group have

more policies. I mean that the people belonging to this age group are more likely

to buy insurance.

ii. We observe a mixed trend in term of Preferred features of insurance

product. Almost every age group says that Security of money is the prime

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concern. It shows that company should try to convey the security feature more

strongly.

TRENDS SHOW THAT AS WE MOVE UP IN THE AGE GROUP

iii. PEOPLE HAVE MORE FAITH ON GOVERNMENT (LIC) . It means that

people with more age are more likely to take insurance from public sector.

iv. Family/Friends emerged as the major reference group to buy decisions. It

means that people look for familiar and personalize counseling at the time of

purchase.

v. The findings show that people are mostly unaware of insurance as an

investment product. The main reason of taking life insurance is Tax planning.

Investment comes at 3rd place.

Related to Income group:

i. AS THE INCOME GROWS PEOPLE USE TO BUY MORE POLICIES .

The data collected shows that people with higher income buy more insurance.

ii. People belonging to high-income group are more likely to buy from Private

companies. More than 50% people belonging to 5+ groups have policies from

private companies.

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iii. As the income group changes, the awareness level of people about insurance

increases. There is an upward trend in this.

iv. People use to take insurance as investment with the change in income group.

v. It means people belonging to high income group have more interest in ULIP.

Related to Occupation:

i. Private and self-employed persons have higher number of policies. The

persons who have private jobs have more income comparing to government

employees. If somehow we could know the type of policy a person already have

and then offering him some product which he do not have.

ii. People having government jobs are more aware of Insurance terms and

conditions. It shows the nature of buyer as government service people have

limited and fixed income so they plan their investment more analytically. So they

follow Central route to persuasion.

iii. AS MOST OF THE PERSONS BELONGING TO PRIVATE ARE 19-28

AGE GROUP, SO WE CAN ALSO SAY THAT WE SHOULD OFFER

ULIP PRODUCTS TO THEM.

iv. The persons belonging to Government job category take policies primarily

from LIC. The trend shows that private and self-employed people are more likely

to buy from Private companies.

After working on this project I got a clear picture of the life insurance industry. Apart

from this I got to know about ICICI Prudential. very closely. The market share is around

1.1% and they have a target of 3% in the coming year.

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With the fact that the Indian economy zooming ahead at a breath-taking GDP growth

rate of 8%, and expected to assume the primary dominance in the global economy

along with China by 2025, according to a Goldman Sachs forecast. Considering this

tremendous potential stuffed in the Indian economy, and coupled with the fact that

just 20% of the total Indian population is insured, which basically amounts to just

about 220 million Indians (assuming the Indian population is 1.1 billion at present).

Therefore there is a huge scope for growth in the insurance business in India.

With the purchasing power of the Indians masses shooting upwards, there is

nothing but a clear ‘yes’ to the question of whether the insurance biggies can make

it a time worthwhile in the Indian sub-continent.

From my entire findings I found out that people are not completely aware about ICICI

Prudential. As it is primarily a new company so people don’t have much faith in this

company. The company should try to reach the untapped rural market and semi-urban

for higher growth. We also know that LIC is no longer the only choice for the

customers but due to its brand equity it is still doing its business. A lot of value added

services is needed to be provided to have a growth.

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FINDINGS

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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RECOMMENDATIONS TO 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

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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

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.

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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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APPENDIX

QUESTIONNAIRE

Dear Sir/Madam,

I am a student of CERT, Meerut, conducting a marketing survey on “CONSUMER

BEHAVIOUR AND CUSTOMER SATISFACTION of ICICI Prudential LIFE

INSURANCE, IN Meerut, U.P.”. I request you to fill this questionnaire & I assure that

this data will be used only for study purpose & it will be kept confidential.

1. Name _________________________________

2. Address _________________________________

_________________________________

_________________________________

3. Age

a. Less than 25 c. 35-45

b. 25 – 35 d. 45 and above

4. Qualification

a. Graduate c. Diploma

b. Postgraduate d. Other discipline

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5. Occupation

a. Business c. Job holder

b. Professional d. Other

6. What is your average annual income?

a. Up to 1 lakh

b. 1 lakh to 3 lakhs

c. 3 lakhs to 5 lakhs

d. 5 lakhs and more

7. Your family size

a. Below 5 members

b. 5 – 10 members

c. Above 10 members

7. According to you life insurance is,

a. A tax saving plan

b. A saving scheme with good return

c. A financial security for the family

d. Risk coverage

e. All the above

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8. Have you taken any life insurance product of ICICI Prudential Life insurance?

YES NO

If yes

9. Which are in these?

a. Unit gain plan

b. Invest gain plan

c. Whole life plan

d. Children plan

e. Pension plan

f. Others __________________

10. 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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11. 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

12. In which of the following would you like to invest?

Equity fund

Debt fund

Balanced fund

Cash fund

Mutual fund

Recurring deposits

13. Any suggestion for ICICI Prudential Life Insurance

______________________________________________________

______________________________________________________

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Thank you for sparing your valuable time

Toll Free Help Line Namber

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BIBLIOGRAPHY

Marketing Management by Philip Kotler, Pearson Education 2nd ed.

Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8th ed.

IRDA Journal

ICICI Prudential Company magazines

Newspaper and Business magazines

WEBSITES

www.iciciprulife.com

www.google.co.in/indian insurance industry

www.irdaindia.org

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http://www.irdaindia.org/

http://www.google.co.in/indian%20insurance%20industry

http://www.iciciprulife.com/

project report on icici

Business

pays monetary

packed savings

gyan bharti

declares bonus

premier financial

private companies

largest distribution

icici prudentials