22753103 minor project report on icici pru life insurance-

8/8/2019 22753103 Minor Project Report on Icici Pru Life Insurance-WWW.SELUR.TK

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MINOR PROJECT REPORT

ON

ICICI PRU LIFE INSURANCE

BACHELOR OF BUSINESS

ADMINISTRATION

By

Amit Kataria


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Acknowledgement

I would like to thanks Dr. Ajay Pratap Singh (project guide) for his

extensive guidance, cooperation and support.

Finally, I wish to express my gratitude to all those who have in one way

or other helped me in the successful completion of my project report.


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VIVEK KUMAR


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EXECUTIVE SUMMARY

This project is based on the Business environment of the ICICI

PRUDENTIAL life insurance Company ltd.

Further, in this Project

Chapter 1 includes the introduction of the company wherein I told

about the Objectives of the study and profile of the ICICI Prudential.

Chapter 2 includes review of literature wherein I have discussed

about various sources of data collection.

Chapter 3 shows the Situation Review

Chapter 4 includes the Findings & suggestions.

Chapter 5 Bibliography.


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TABLE OF CONTENTS

Declaration

Acknowledgement

Executive Summary

Chapter-1 Problem & Purpose:

1.1 Profile of the Company

- Overview of ICICI PRUDENTIAL

- Vision & Values

- Promoters

- Fact Sheet

-

Sales Distribution

- Brand Values

- Achievements


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- Products

1.2Overview of Industry

1.3Objectives of the study

1.4 Scope of the study

Chapter-2 Review of literature

2.1 Customer satisfaction

2.2Data Collection

Chapter-3 Situation Review

3.1Swot analysis

Chapter-4 Interpretation of data

Chapter-5 Conclusion and Suggestions


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Chapter-6 Bibliography

COMPANY PROFILE

About ICICI BANK:


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ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion(US$ 100 billion) at March 31, 2009 and profit after tax of Rs. 41.58 billion for theyear ended March 31, 2009. ICICI Bank is second amongst all the companieslisted on the Indian stock exchanges in terms of free float market capitalisation*.The Bank has a network of about 1,308 branches and 3,950 ATMs in India andpresence in 18 countries. ICICI Bank offers a wide range of banking productsand financial services to corporate and retail customers through a variety ofdelivery channels and through its specialised subsidiaries and affiliates in theareas of investment banking, life and non -life insurance, venture capital andasset management. The Bank currently has subsidiaries in the United Kingdom,Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong,Sri Lanka, Qatar and Dubai International Finance Centre and representativeoffices in United Arab Emirates, China, South Africa, Bangladesh, Thailand,Malaysia and Indonesia. Our UK subsidiary has established branches in Belgiumand Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and

the National Stock Exchange of India Limited and its American Depositary

Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).


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ICICI Prudential Life Insurance

Overview

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank -one of India's foremost financial services companies-and Prudential plc - aleading international financial services group headquartered in the United

Kingdom. Total capital infusion stands at Rs. 42.72 billion, with ICICI Bankholding a stake of 74% and Prudential plc holding 26%.

We began our operations in December 2000 after receiving approval fromInsurance Regulatory Development Authority (IRDA). Today, our nation-wideteam comprises of over 2000 branches (inclusive of 1,095 micro-offices), over261,000 advisors; and 24 bancassurance partners.

ICICI Prudential is the first life insurer in India to receive a National Insurer

Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row,ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, byThe Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'.As we grow our distribution, product range and customer base, we continue totirelessly uphold our commitment to deliver world-class financial solutions tocustomers all over India.


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The ICICI Prudential Edge


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The ICICI Prudential edge comes from our commitment to our customers, in all

that we do - be it product development, distribution, the sales process or

servicing. Here's a peek into what makes us leaders.

1. Our products have been developed after a clear and thorough understandingof customers' needs. It is this research that helps us develop Education plansthat offer the ideal way to truly guarantee your child's education, Retirementsolutions that are a hedge against inflation and yet promise a fixed income afteryou retire, or Health insurance that arms you with the funds you might need torecover from a dreaded disease.

2. Having the right products is the first step, but it's equally important toensure that our customers can access them easily and quickly. To thisend, ICICI Prudential has an advisor base across the length and breadthof the country, and also partners with leading banks, corporate agentsand brokers to distribute our products .

3. Robust risk management and underwriting practices form the core of our

business. With clear guidelines in place, we ensure equitable costing of

risks, and thereby ensure a smooth and hassle-free claims process.

4. Entrusted with helping our customers meet their long-term goals, weadopt an investment philosophy that aims to achieve risk adjusted returns

over the long-term.

5. Last but definitely not the least, our 28,000 plus strong team is given theopportunity to learn and grow, every day in a multitude of ways. Webelieve this keeps them engaged and enthusiastic, so that they can

deliver on our promise to cover you, at every step in life.


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Vision & Values

vision:-


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To be the dominant Life, Health and Pensions player built on trust by world-class

people and service.

This we hope to achieve by:

Understanding the needs of customers and offering them superior productsand service

Leveraging technology to service customers quickly, efficiently andconveniently

Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders

Providing an enabling environment to foster growth and learning for our

employees

And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to 5core values -- Integrity, Customer First, Boundaryless, Ownership and Passion.Each of the values describe what the company stands for, the qualities of ourpeople and the way we work.

We do believe that we are on the threshold of an exciting new opportunity, wherewe can play a significant role in redefining and reshaping the sector. Given thequality of our parentage and the commitment of our team, there are no limits toour growth.

Our values:-

Every member of the ICICI Prudential team is committed to 5 core values:

Integrity, Customer First, Boundaryless, Ownership, and Passion. These values

shine forth in all we do, and have become the keystones of our success .


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About the Promoters

ICICI Bank

ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the


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second largest bank in the country, with consolidated total assets of $1 1 2.6billion as of June 30 , 2008. ICICI Banks subsidiaries include Indias leadingprivate sector insurance companies and among its largest securities brokeragefirms, mutual funds and private equity firms. ICICI Banks presence currentlyspans 19 countries, including India.

Established in London in 1848, Prudential plc, through its businesses in the UK,Europe, US, Asia and the Middle East, provides retail financial services productsand services to more than 21 million customers, policyholder and unit holdersand manages over 256 billion of funds worldwide (as of June 30, 2008). In Asia,Prudential is the leading Europe-based life insurer with life operations in China,Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest assetmanagement companies in terms of overall assets sourced in Asia ex-japan, with34.3 billion funds under management (as of June 30, 2009) and operations in

ten markets including China, Hong Kong, India, Japan, Korea, Malaysia,Singapore, Taiwan, Vietnam and United Arab Emirates.

Prudential Plc

Established in London in 1848, Prudential plc, through its businesses in the UK

and Europe, the US and Asia, provides retail financial services products and

services to more than 16 million customers, policyholders and unit holdersworldwide. As of June 30, 2004, the company had over US$300 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 24 life and mutual fund operations in twelve countries - China, Hong Kong,

India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan,

Thailand and Vietnam.


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Fact Sheet

The Company


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ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank,a premier financial powerhouse, and Prudential plc, a leading internationalfinancial services group headquartered in the United Kingdom. ICICI Prudentialwas amongst the first private sector insurance companies to begin operations inDecember 2000 after receiving approval from Insurance Regulatory

Development Authority (IRDA).

ICICI Prudential Life's capital stands at Rs. 42.72 billion (as of June 30, 2009)with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. Forthe quarter ended June 30, 2009, the company garnered Retail Weighted NewBusiness Premium of Rs. 1,174 crores as against Rs 810 crores for the quarterended June 30, 2008, thereby posting a growth of 45% and has underwrittenover 6 lakh policies over this period. The company has assets held over Rs.30,600 crore as on August 31, 2009.

ICICI Prudential Life is also the only private life insurer in India to receive aNational Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. TheAAA (Ind) rating is the highest rating, and is a clear assurance of ICICIPrudential's ability to meet its obligations to customers at the time of maturity orclaims.

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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SALES DISTRIBUTION


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Tied Agency

Tied Agency is the largest distribution channel of ICICI Prudential, comprising alarge advisor force that targets various customer segments. The strength of tiedagency lies in an aggressive strategy of expanding and procuring qualitybusiness. With focus on sales & people development, tied agency has emergedas a robust, predictable and sustainable business model.

Banc assurance and Alliances

ICICI Prudential was a pioneer in offering life insurance solutions through banks

and alliances. Within a short span of two years, and with nearly a large numberof partners, B & A has emerged as a vital component of the companys sales anddistribution strategy, contributing to approximately one third of companys totalbusiness. The business philosophy at B&A is to leverage distribution synergieswith our partners and add value to its customers as well as the partners.Flexibility, adaptation and experimenting with new ideas are the hallmarks of thischannel.

Brand Values

Market Research reveals that the values people associate with ICICI Prudentialare, indeed, those that the company hopes to project: lifelong protection andvalue for money. The core value is protecting your loved ones, throughout lifes

ups and downs. It is a powerful proposition; one, which ICICI Prudential, is takinginto the market place.


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Achievements

Beginning operations in December 2000, ICICI Prudentials success has beenmeteoric, becoming the number one private life insurer within months of launch.Today, it has one of the largest distribution networks amongst private life insurersin India, with branches in 54 cities. The total number of policies issued stands atmore than 780,000 with a total sum assured in excess of Rs.160 billion.


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ICICI Prudential closed the financial year ended march 31, 2004 with a totalreceived premium income of Rs. 9.9 billion; up 135% last years total premiumincome of Rs.4.20 billion. New business premium income shows a 106% growthat Rs. 7.5 billion, driven mainly by the companys range of unique unit-linkedpolicies and pension plans. The companys retail market share amongst private

companies stood at 36%, making it clear leader in the segment. To add to itsachievements, in the year 2003/04 it was adjudged Most Trusted Private LifeInsurer (Economic Times Most Trusted Brand Survey by ACNeilsen ORG-MARG). It was also conferred the Outlook Money-Best Life Insurer award for thesecond year running. The company is also proud to have won Silver at EFFIES2003 for its Retire from work, not life campaign. Notably, ICICI Prudential wasalso 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, ICICIPrudential has embraced the SIX SIGMA approach to quality, an exercise that

begins and ends with the customer from capturing his voice to measuring andresponding to his experiences. This initiative is currently helping the companyimprove processes, turnaround times and customer satisfaction levels. AnotherNovel introduction is the ICICI Prudential Lifestyle Rewards Club, Indias firstrewards programme for Life Advisors; it allows ICICI Prudential Advisors toredeem points for items ranging from kitchenware to gold, white goods, and eveninternational holidays.


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PRODUCT/SERVICES PROFILE

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 canbe enhanced with up to 4 riders, to create a customized solution for eachpolicyholder.


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Savings & Wealth Creation Solutions

Save'n'Protect is a traditional endowment savings plan that offers lifeprotectionalong with adequate returns.

CashBak is an anticipated endowment policy ideal for meeting milestoneexpenses like a child's marriage, expenses for a child's higher education or

purchase of an asset. It is available for terms of 15 and 20 years.

LifeTime Gold is a unit-linked plan that offers customers the flexibility andcontrol to customize the policy to meet the changing needs at different lifestages. It offers 7 fund options - Preserver, Protector, Balancer, Flexi BalancedMultiplier, R.I.C.H and Flexi Growth.

LifeStage RP is unit linked plan that provides you with an option of lifecycle-based portfolio strategy that continuously re-distributes your money acrossvarious asset classes based on your life stage. This will help you achieve theright Asset Allocation to meet your desired financial goals.

LifeLink Superis a single premium unit linked insurance plan which combineslife insurance cover with the opportunity to stay invested in the stock market.

Premier Life Gold is a limited premium paying plan specially structured for

long-term wealth creation.

InvestShield Life New is a unit linked plan that provides premium guaranteeon the invested premiums and ensures that the customer receives only the

benefits of fund appreciation without any of the risks of depreciation.

InvestShield Cashbak is a unit linked plan that provides premium guaranteeon the invested premiums along with flexible liquidity options.


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LifeStage Assure a unit linked insurance plan that provide upto 450 % of firstyear premium guarantee on maturity, with the additional advantage of a lifecyclebased portfolio strategy that allocates the investors money across various assetclasses based on his life stage and risk appetite.

Protection Solutions

LifeGuard is a protection plan, which offers life cover at low cost. It is availablein 3 options - level term assurance, level term assurance with return of premium

& single premium.


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HomeAssure is a mortgage reducing term assurance plan designed specifically

to help customers cover their home loans in a simple and cost-effective manner.

Education Solutions

SmartKid New ULRP provides guaranteed educational benefits to a childalong with life insurance cover for the parent who purchases the policy. Thepolicy is designed to provide money at important milestones in the child's life.SmartKid plans are also available in traditional form.

Retirement Solutions

ForeverLife is a traditional retirement product that offers guaranteed returnsforthe first 4 years and then declares bonuses annually.

LifeTime Super Pension is a regular premium unit linked pension plan that

helps one accumulate over the long term and offers 5 annuity options (lifeannuity, life annuity with return of purchase price, joint life last survivor annuitywith return of purchase price, life annuity guaranteed for 5, 10 and 15 years & forlife thereafter, joint life, last survivor annuity without return of purchase price) atthe time of retirement.

LifeStage Pension is a regular premium unit linked pension plan thatprovides you with a unique lifecycle-based strategy that continuously re-distributes your money across various asset classes based on your life stage,

eventually providing you with a customized retirement solution.

LifeLink Super Pension is a single premium unit linked pension plan.

Immediate Annuity is a single premium annuity product that guarantees


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income for life at the time of retirement. It offers the benefit of 5 payout options.

PremierLife Pension is a unique and convenient retirement solution with alimited premium paying term of three or five years, to suit professionals and

businessmen, especially those who require more flexibility and customizationwhile planning their finances.

Health Solutions

Health Assure Plus: Health Assure is a regular premium plan which provides

long term cover against 6 critical illnesses by providing policyholder with financial


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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.

Cancer Care Plus: is a wellness plan that includes all the benefits of CancerCare and also provides an additional benefit of free periodical cancer screenings.

Diabetes Care: Diabetes Care is a unique critical illness product speciallydeveloped for individuals with Type 2 diabetes and pre-diabetes. It makespayments on diagnosis on any of 6 diabetes related critical illnesses, and alsooffers a coordinated care approach to managing the condition. Diabetes CarePlus also offers life cover.

Diabetes Care Plus: is a unique insurance policy that provides an additionalbenefit of life cover for Type 2 diabetics and pre-diabetics

Hospital Care: is a fixed benefit plan covering various stages of treatment -hospitalisation, ICU, procedures & recuperating allowance. It covers a range ofmedical conditions (900 surgeries) and has a long term guaranteed coverageupto 20 years.

Crisis Cover : is a 360-degree product that will provide long-term coverageagainst 35 critical illnesses, total and permanent disability, and death.

MediAssure is a health insurance policy that provides assured insurability tillage 75 years, assured coverage for accepted pre-existing illnesses after 2 years

and an assured price for 3 years.


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Group Insurance Solutions

ICICI Prudential Life also offers Group Insurance Solutions for companies

seeking to enhance benefits to their employees.

Group Gratuity Plan:ICICI Prudential Life's group gratuity plan helpsemployers fund their statutory gratuity obligation in a scientific manner and also

avail of tax benefits as applicable to approved gratuity funds.


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Overview of the Industry

The insurance industry provides protection against financial losses resulting from

a variety of perils. By purchasing insurance policies, individuals and businessescan receive reimbursement for losses due to car accidents, theft of property, andfire and storm damage; medical expenses; and loss of income due to disability ordeath.


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The insurance industry consists mainly of insurance carriers (or insurers) andinsurance agencies and brokerages. In general, insurance carriers are largecompanies that provide insurance and assume the risks covered by the policy.Insurance agencies and brokerages sell insurance policies for the carriers. Whilesome of these establishments are directly affiliated with a particular insurer and

sell only that carriers policies, many are independent and are thus free to marketthe policies of a variety of insurance carriers. In addition to supporting these twoprimary components, the insurance industry includes establishments that provideother insurance-related services, such as claims adjustment or third-partyadministration of insurance and pension funds.

Insurance carriers assume the risk associated with annuities and insurancepolicies and assign premiums to be paid for the policies. In the policy, the carrierstates the length and conditions of the agreement, exactly which losses it willprovide compensation for, and how much will be awarded. The premium charged

for the policy is based primarily on the amount to be awarded in case of loss, aswell as the likelihood that the insurance carrier will actually have to pay. In orderto be able to compensate policyholders for their losses, insurance companiesinvest the money they receive in premiums, building up a portfolio of financialassets and income -producing real estate which can then be used to pay off anyfuture claims that may be brought. There are two basic types of insurancecarriers: direct and reinsurance. Direct carriers are responsible for the initialunderwriting of insurance policies and annuities, while reinsurance carriersassume all or part of the risk associated with the existing insurance policiesoriginally underwritten by other insurance carriers.

Direct insurance carriers offer a variety of insurance policies. Life insuranceprovides financial protection to beneficiariesusually spouses and dependentchildrenupon the death of the insured. Disability insurance supplies a presetincome to an insured person who is unable to work due to injury or illness, andhealth insurance pays the expenses resulting from accidents and illness. Anannuity (a contract or a group of contracts that furnishes a periodic income atregular intervals for a specified period) provides a steady income duringretirement for the remainder of ones life. Property-casualty insurance protectsagainst loss or damage to property resulting from hazards such as fire, theft, andnatural disasters. Liability insurance shields policyholders from financial

responsibility for injuries to others or for damage to other peoples property. Mostpolicies, such as automobile and homeowners insurance, combine bothproperty-casualty and liability coverage. Companies that underwrite this kind ofinsurance are called property-casualty carriers.

Some insurance policies cover groups of people, ranging from a few to


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thousands of individuals. These policies usually are issued to employers for thebenefit of their employees or to unions, professional associations, or othermembership organizations for the benefit of their members. Among the mostcommon policies of this nature are group life and health plans. Insurance carriers


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also underwrite a variety of specialized types of insurance, such as real-estate

title insurance, employee surety and fidelity bonding, and medical malpractice

insurance.

In addition to individual carrier-sponsored Internet sites, several lead-generatingsites have emerged. These sites allow potential customers to input informationabout their insurance policy needs. For a fee, the sites forward customerinformation to a number of insurance companies, which review the informationand, if they decide to take on the policy, contact the customer with an offer. Thispractice gives consumers the freedom to accept the best rate.

The insurance industry also includes a number of independent organizations thatprovide a wide array of insurance-related services to carriers and their clients.One such service is the processing of claims forms for medical practitioners.Other services include loss prevention and risk management. Also, insurancecompanies sometimes hire independent claims adjusters to investigate accidentsand claims for property damage and to assign a dollar estimate to the claim.


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The Insurance Regulatory and Development Authority (IRDA)

Reforms in the Insurance sector were initiated with the passage of the IRDA Billin Parliament in December 1999. The IRDA since its incorporation as a statutorybody in April 2000 has fastidiously stuck to its schedule of framing regulationsand registering the private sector insurance companies.


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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 IRDAs online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured thatthe insurance companies would have a trained workforce of insurance agents inplace to sell their products, which are expected to be introduced by early nextyear.

Since being set up as an independent statutory body the IRDA has put in aframework of globally compatible regulations. In the private sector 12 life

insurance and 6 general insurance companies have been registered.


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OBJECTIVE OF THE STUDY

This study is based upon some objectives and these are as follows.

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

life insurance co.


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

Interpretation of data.


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SCOPE 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


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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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REVIEW OF LITERATURE


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Customer Satisfaction

What is customer satisfaction?

Custo0mer satisfaction refers to how satisfied customers are with the products orservices they receive from a particular agency. The level of satisfaction isdetermined not only by the quality and type of customer experience but also bythe customers expectations.

A customer may be defined as someone who:

has a direct relationship with, or is directly affected by your agency and

receives or relies on one or more of your agencys services or products.

Customers in human services are commonly referred to as service users,

consumers or clients. They can be individuals or groups.

An organisation with a strong customer service culture places the customer at

the centre of service design, planning and service delivery. Customer centric

organisations will:

determine the customers expectations when they plan

listen to the customer as they design

focus on the delivery of customer service activities.

Why is it important?


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There are a number of reasons why customer satisfaction is important in

Insurance Sector:

Meeting the needs of the customer is the underlying rationale for the

existence of community service organizations. Customers have a right toquality services that deliver outcomes.

Organizations that strive beyond minimum standards and exceed theexpectations of their customers are likely to be leaders in their sector.

Customers are recognized as key partners in shaping service development

and assessing quality of service delivery.

The process for measuring customer satisfaction and obtaining feedback onorganizational performance are valuable tools for quality and continuous serviceimprovement.


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Sources of Data Collection:Research will be based on two sources:

1. Primary data

2. Secondary data

1) PRIMARY DATA: Primary data was collected from the different theories

givenon the companys website- www.iciciprulife.com.

2) SECONDARY DATA: Secondary data will consist of different literatures

likebooks which are published, articles, internet and company manuals.


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SITUATION REVIEW

ICICI Prudential Life, introduced E-Portfolio statement for consumers. This firstof its kind service in the life insurance industry will provide consumers with acustomized e-statement with their complete investment details on a monthlybasis.

ICICI Prudential Life has always pioneered innovative initiatives towards

enhancing customer convenience. The E-Portfolio statement will provide the

customer a detailed summary of all his ULIP policies with the company. It will

also give the policyholder a fund wise break up of their investments in the


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companys equity and debt funds. Additionally, the statement will also advise thepolicyholder on the ideal asset allocation strategy for the consumer. This will not

just help the customer in keeping a track of their investments but also to follow anideal asset allocation strategy enabling him to derive the benefit of long terminvestment.

Customers can easily access their E-Portfolio statement by logging in on the

company website www.iciciprulife.com using their policy number and password.

The E-Portfolio statements will also be e-mailed to customers on a monthly basis

as a ready reckoner of their investments with the company.

The company is sensitive to the needs of the customers and realizes the

importance of innovative service offerings towards customer convenience and

satisfaction.

ICICI Prudential Life has a multi-channel distribution strategy to reachcustomers.The company has scaled up its customer touch-points andactively drives awareness and education campaigns amongst consumerstowards providing a seamless service delivery experience for customersacross the country.

SWOT ANALYSIS

STRENGTHS:

i. ICICI Prudential is the largest private player in India, with a

market share of around 36% amongst the private

players

ii. 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
http://www.iciciprulife.com/http://www.iciciprulife.com/


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deposited Rs 60 crore so far.

iii. ICICI Prudential is the first life insurance company to

offer ECS debit facility.

iv. 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.

v. Products


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iii. Not very known among Indian population.

iv. Lack of credibility among the people because ICICI

being a private player.

v. Premiums are high as compared to its competitors.

vi. Very few branches in the country.

vii. Products:

The policy doesnt have the surrender option

before third year.

Plan does not offer any guarantee or assured

return.

Product profile is not very comprehensive.


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Mortality, management and administrative charges

are sky scrapping as compared to its

competitors.

OPPORTUNITIES

i. Liberalization of Indian economy.

ii. As the industry is growing the whole market is virgin.

iii. The whole private sector is opened to be trapped even

though the competition is fierce from government owned

insurance companies.

iv. Its a volume business that is even if the company has

few good corporates the turnover cease to increase by

manifold.

v. Products:

Preserver funds look good due to comfortable liquidity

in the economy and there is little chance hike in short-

term rate by RBI.

Finance minister unveiled a budget favoring

consumer spending, boosting demand and therefore

higher economic growth.

THREATS


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i. The government players will become aggressive thus

growth is going to be tough.

ii. Entry of other players is not ruled out.

iii. Apprehension towards ICICI Prudential being a private

life insurance company.

iv. We expect the industry to rationalize in future that is

mergers and acquisitions will happen, which will impact

the industry and ICICI Prudential fortunes.

v. Products:


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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.


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CONCLUSION


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There are very tough competition among the private insurance companieson the level of new trend of advertising to lull a major part of Customers.

ICICI is not left behind in the present race of advertisement.

The entry of more Pvt. players in the Insurance Sector have expanded theproduct segment to meet the different level of the requirement of thecustomers. It has brought about greater choice to the customers.

ICICI has vast market and very firm grip on its traditional customers and

monopoly of life insurance products..

IRDA, is also playing very comprehensive role by regulating norms mandating to

private players in this sector, that increases the confidence level of the customers

to the private players.


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SUGGESTIONS 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 its


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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 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


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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.


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BIBLIOGRAPHY

ICICI Prudential Company magazines

Newspaper and Business magazines

Website

s www.iciciprulife.com

22753103 minor project report on icici pru life insurance-

Documents