agency development -icici pru

8/6/2019 Agency Development -ICICI Pru.

1/79

AGENCY DEVELOPMENT OF ICICIPRUDENTIAL LIFE INSURANCE COMPANY

OFICICIPRUDENTIALLIFE INSURANCE CO. LTD.,

VIDEOCON TOWER, NEW DELHI


2/79

ACKNOWLEDGEMENT

There is always a sense of gratitude which one express to other for the helpful so

needy services they render during all phases of life. I would like to express my gratitude

towards all those who have been helpful to me in getting this mighty task of training to a

successful end.

First of all, I consider it a pleasant duty to express my heart felt appreciation,

gratitude and indebtedness to my guide for his keen interest, invaluable pain taking &

excellent guidance, patience, endurance, encouragement & thoughtful advice throughout

the project work duration.

I would also like to be thankful to Mr. Gitesh Mishra Unit Manager (ICICI

Prudential Life Insurance, Videocon Tower, New Delhi, who has given me the right

way to prepare my project report.

I would take this opportunity to thank all my family members for their helps &

suggestions during the course of project work. I am also thankful to all my friends who

gave me constant & continuous inspiration to complete this project.

SAURABH SAXENAMBA-III SEMESTER


3/79

CONTENTS

1. SYNOPSIS

2. COMPANY PROFILE

3. INTRODUCTION

4. INSURANCE MARKETING

5. RESEARCH METHODOLOGY

6 OBJECTIVE OF THE STUDY

7. DATA ANALYSIS

8. INTERPRETATION

9. CONCLUSION

10. SUGGESTIONS

11. LIMITATIONS

12. QUESTIONNAIRE


4/79

13. BIBLIOGRAPHY

14. APPENDIXES

SYNOPSIS

TITLE OF THE PROJECT: AGENCY DEVELOPMENT OF ICICI

PRUDENTIAL .LIFE INSURANCE COMPANY.

NAME OF THE COMPANY:ICICI PRUDENTIAL LIFE INSURANCE

OBJECTIVE BEHIND THE STUDY:

To study and evaluate various strategies and tactics of ICICI Prudential for the agency

development..

RESEARCH METHODOLOGY:

The project is Descriptive in nature and requires use of both primary andsecondary data.

Primary data: Database obtained by market survey, QuestionnairesSecondary data: Database of existing customers with the company

Sample size: 100Area Covered: Delhi and NCR

Using Questionnaire and Interviewing the Respondents obtain the data.


5/79

COMPANY PROFILE


6/79


7/79

ICICI P RUDENTIAL LIFE INSURANCE LTD.It is a joint venture between ICICI bank, a premier financial powerhouse and prudential

Plc, a leading international financial services group headquartered in the UnitedKingdom. ICICI Prudential was amongst the first private sector insurance companies tobegin operations in December 2000 after receiving approval from insurance regulatorydevelopment authority (IRDA). ICICI and Prudential came together in 1993 to formprudential ICICI asset Management Company, which has today emerged as one of theleading mutual funds in India. The two companies bring together two of the strongestfinancial service brands in Asia, known for their professionalism, excellent quality ofservice and long term commitment to you. Riding on the success of this relationship, thetwo companies joined hands once more in 2000, to form ICICI Prudential Life Insurance,with a commitment to provide leading-edge life insurance solutions.ICICI Prudentials equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential

plc holding 74% and 26% stake respectively. In the financial year ended March 31, 2005,the company garnered Rs 1584 crore of new business premium for a total sum assured ofRs 13,780 crore and wrote nearly 615,000 policies. The company has a network of about56,000 advisors; as well as 7 bancassurance and 150 corporate agent tie-ups. For the pastfour years, ICICI Prudential has retained its position as the No. 1 private life insurer inthe country, with a wide range of flexible products that meet the needs of the Indiancustomer at every step in life.

Board of Directors : -The ICICI Prudential Life Insurance Company Limited Board comprises reputed people

from the finance industry both from India and abroad.Ms. Chanda D. Kochhar, ChairpersonMr. N. S. Kannan, DirectorMr. K. Ramkumar, DirectorMr. Barry Stowe, DirectorMr. Adrian OConnor, DirectorMr. Keki Dadiseth, Independent DirectorProf. Marti G. Subrahmanyam, Independent DirectorMs. Rama Bijapurkar, Independent DirectorMr. Vinod Kumar Dhall, Independent DirectMr. V. Vaidyanathan, Managing Director & CEO

Management Team : -Mr.V.Vaidyanathan, Managing Director & CEOMs. Anita Pai, Executive Vice President - Customer Service, Technology & MarketingDr. Avijit Chatterjee, Appointed ActuaryMr. Puneet Nanda, Executive Vice President
http://www.iciciprulife.com/public/About-us/ProfileTeam-Vaidyanathan.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-AnitaPai.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-Dr.%20Avijit%20Chatterjee.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-PuneetNanda.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-Vaidyanathan.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-AnitaPai.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-Dr.%20Avijit%20Chatterjee.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-PuneetNanda.htm


8/79

ICICI BANKA bank is an institution, which deals in money. It means that a bank receives money inthe form of deposits from public and lends money to the development of trade andcommerce. The Indian companies act defines the term Bank as The accepting for thepurpose of lending or investment of money from the public, repayable and demand or

otherwise and withdraw able by cheque, draft, order or otherwiseBanks are classified into several types based on the functions they perform.

1. Commercial Bank.2. Investment or industrial Banks.3. Exchange Banks.4. Co-operative Banks.5. Land Development Banks.6. Savings Banks.7. Central Banks.

(1). Commercial Banks : -Commercial banks perform all the business transaction of a typical bank. Commercial Banks

accept three types of deposits, Like Savings Bank Deposit, Fixed Deposit and Current Deposit.They accept these deposit, which are payable on demand or in short notice. As such they lend orinvest only for short duration. They funds for short-term needs of trade of commerce.

(2). Investment or Industrial Banks : -Investment Banks are those banks, which provide funds on long term for industries.These Banks have specialized in providing long term loans to industries with a view to buy plant of machinery. The investment Banks obtain funds through share capital,Debentures and long term deposits fromthe public. They float bonds for the sake of mobilizing funds to provide funds for bigindustries corporations. These banks also under write or issue new shares of debenturesof industrial concerns.

(3) Exchange Banks : -Exchange Banks are known as foreign Banks or foreign exchange Banks. The foreign

exchange banks provide exchange for imports trade. Their main function is to makeinternational payment through purchased sake of exchange bills.

(4) Co-operative Banks : -Co-operative Banks are promoted to meet the banking requirements of consumers. Theyare established not only in the urban areas but also in the rural areas. In the rural areasthese banks supply finances to agriculture, while in the urban areas they provide financeto consumer goods.

(5) Land Mortgage Banks : -

Whenever agriculturist require investment loans, they have to approach land developmentBanks. Where loans are given on long-term basis. They provide loans on the security ofthe land.

(6) Savings Banks : -Savings Banks are specialized financial institutions established to mobilize savings fromthe people. The primary object of the commercial Banks is to promote thrift among thelow and middle-income groups. The Banks also offer interest on these deposits.


9/79

(7) Central Banks : -Central Bank in an apex Bank in the country, which keeps the entire banking systemunified, controlled and regulated. In fact, the central bank is the Bank, which formulatesthe monetary policy. It regulates the notice issue. In India, the Reserve Bank of India isthe central Bank Of India.

ICICI BANKICICI Bank is India's second-largest bank with total assets of about Rs.1, 67,659 crore atMarch 31, 2005 and profit after tax of Rs. 2,005 crore for the year ended March 31, 2005(Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network of about 560 branches andextension counters and over 1,900 ATMs. ICICI Bank offers a wide range of bankingproducts and financial services to corporate and retail customers through a variety ofdelivery channels and through its specialized subsidiaries and affiliates in the areas ofinvestment banking, life and non-life insurance, venture capital and asset management.ICICI Bank set up its international banking group in fiscal 2002 to cater to the crossborder needs of clients and leverage on its domestic banking strengths to offer productsinternationally. ICICI Bank currently has subsidiaries in the United Kingdom and

Canada, branches in Singapore and Bahrain and representative offices in the UnitedStates, China, United Arab Emirates, Bangladesh and South Africa.ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and theNational Stock Exchange of India Limited and its American Depositary Receipts (ADRs)are listed on the New York Stock Exchange (NYSE).As required by the stock exchanges, ICICI Bank has formulated a Code of BusinessConduct and Ethics for its directors and employees.At April 4, 2005, ICICI Bank, with free float market capitalization* of about Rs. 308.00billion (US$ 7.00 billion) ranked third amongst all the companies listed on the Indianstock exchanges.ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank wasreduced to 46% through a public offering of shares in India in fiscal 1998, an equityoffering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisitionof Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondarymarketSales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formedin 1955 at the initiative of the World Bank, the Government of India and representativesof Indian industry. The principal objective was to create a development financialinstitution for providing medium-term and long-term project financing to Indianbusinesses. In the 1990s, ICICI transformed its business from a development financialinstitution offering only project finance to a diversified financial services group offering a

wide variety of products and services, both directly and through a number of subsidiariesand affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and thefirst bank or financial institution from non-Japan Asia to be listed on the NYSE.After consideration of various corporate structuring alternatives in the context of theemerging competitive scenario in the Indian banking industry, and the move towardsuniversal banking, the managements of ICICI and ICICI Bank formed the view that themerger of ICICI with ICICI Bank would be the optimal strategic alternative for bothentities, and would create the optimal legal structure for the ICICI group's universal


10/79

banking strategy. The merger would enhance value for ICICI shareholders through themerged entity's access to low-cost deposits, greater opportunities for earning fee-basedincome and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders througha large capital base and scale of operations, seamless access to ICICI's strong corporate

relationships built up over five decades, entry into new business segments, higher marketshare in various business segments, particularly fee-based services, and access to the vasttalent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors ofICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retailfinance subsidiaries, ICICI Personal Financial Services Limited and ICICI CapitalServices Limited, with ICICI Bank. Shareholders of ICICI and ICICI BANK approvedthe merger in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002,and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April2002.Consequent to the merger, the ICICI group's financing and banking operations, bothwholesale and retail, have been integrated in a single entity.


11/79

DIVERSIFICATION OF ICICI BANK LTD
http://www.icicibank.com/http://www.iciciventure.com/http://www.icicilombard.com/http://www.icicibank.com/http://www.iciciprulife.com/http://www.iseconline.com/


12/79

HISTORY OF ICICI1955: The Industrial Credit and Investment Corporation of India Limited (ICICI)incorporated at the initiative of the World Bank, the Government of India andrepresentatives of Indian industry, with the objective of creating a development financialinstitution for providing medium-term and long-term project financing to Indian

businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited.ICICI emerges as the major source of foreign currency loans to Indian industry. Besidesfunding from the World Bank and other multi-lateral agencies, ICICI also among the firstIndian companies to raise funds from International markets.

1956: ICICI declared its first Dividend at 3.5%.

1958:Mr.G.L.Mehta was appointed the 2nd Chairman of ICICI Ltd.1960:ICICI building at 163, Back bay Reclamation was inaugurated1967:ICICI madeits first debenture issue for Rs.6 crore, which was oversubscribed.

1972:Second entity in India to set-up merchant banking services1977: ICICI sponsors the formation of Housing Development Finance Corporation

Managed its first equity public issue.I.1982: Becomes the first ever-Indian borrower to raise European Currency Units.

1986: ICICI first Indian Institution to receive ADB Loans. First public issue by anIndian entity in the Swiss Capital Markets. ICICI along with UTI sets up Credit RatingInformation Services of India Limited, (CRISIL) Indias first professional credit ratingagency. ICICI promotes Shipping Credit and Investment Company of India Limited.(SCICI).

1987:ICICI signed a loan agreement for Sterling Pound 10 million with CommonwealthDevelopment Corporation (CDC), the first loan by CDC for financing projects in India.

1993: ICICI sets-up ICICI Securities and Finance Company Limited in joint venturewith J. P. Morgan.

1994: ICICI sets up ICICI Bank.

1996: ICICI becomes the first company in the Indian financial sector to raise GDR.Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.

1997:ICICI was the first intermediary to move away from single prime rate to three-tierprime rates structure and introduced yield-curve based pricing. The name The IndustrialCredit and Investment Corporation of India Limited was changed to ICICI Limited.

1998:Introduced the new logo symbolizing a common corporate identity for the ICICIGroup.

1999: ICICI launches retail finance - car loans, house loans and loans for consumerdurables. ICICI becomes the first Indian Company to list on the NYSE through an issue

of American Depositary Shares.

2000: ICICI Bank becomes the first commercial bank from India to list its stock onNYSE. ICICI Bank announces merger with Bank of Madura.

2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI withICICI Bank.

2002:Moodys assign higher than sovereign rating to ICICI


13/79

2003: ICICI has ties-up four Banks Goa State Co-operative Bank, Jalgaon Peoples Co-operative Bank, Indoor Paraspar Sahakari Bank & Manipal State Co-operative Bank.

2004: Strategy tie-up with Shamrao Vithal Bank, Which is most prominent Urban Co-operative Bank.

2006: ICICI Prudential Life ties-up with 10 regional rural banks- Avadh Gramin Bank,

Barabanki Gramin Bank, Farrukhabad Gramin Bank, Chandrapur Gadchiroli GraminBank, Bhandara Gramin Bank, Ratnagiri Sindhudurg Gramin Bank, Solapur GraminBank, Baitarani Gramya Bank, Jharkhand Gramin Bank & Narmada Malwa GraminBank operate in the state of U.P, Maharashtra, Orisa, Jharkhand, & M.P.

2007: ICICI Prudential Life enters into strategic tie-up with Sherkhan.

2008: ICICI Prudential Life launches first Micro-Insurance product is Sarv JanaSuraksha.

THE SWOT ANANLYSIS OF ICICI BANK

STRENGTHS: -

The ICICI bank is a strong brand among its competitors.

Wide reach in the urban areas.

With the help of the tie up with the Bank of Madura it has access to rural. WEAKNESS: -

Although it has a tie up with the Bank Of Madura its reach to the rural areas isnot as much as expected.

THREATS : -

It is facing stiff competition from the other private banks.OPPORTUNITIES : -

The present low interest rate is the opportunities to introduce more products andconsequently increasing customer base.

Committee of Directors :


14/79

Ms. Chanda D. Kochhar, Chairperson

Mr. N. S. Kannan, Director

Mr. K. Ramkumar, Director

Mr. Barry Stowe, Director

Mr. Adrian OConnor, Director

Mr. Keki Dadiseth, Independent Director

Prof. Marti G. Subrahmanyam, Independent Director

Ms. Rama Bijapurkar, Independent Director

Mr. Vinod Kumar Dhall, Independent Direct

Mr. V. Vaidyanathan, Managing Director & CEO-

PRUDENTIAL PLC. : -

It is a leading international financial services company in the UK, with around us$250 billion funds under management, and more than 16 million customers worldwide.Prudential has brought to market an integrated range of financial services products thatnow includes life assurance, pensions, mutual funds, banking, investment management

and general insurance. Started operations in 1848 and is now one of the largest life insurance companies

in the world.

Presence in UK, Europe, US and through out Asia.

Insurance and investment funds under management exceed rs.11, 00,000 crores.

Solid reputation built over 150 years.

Already established as one of the biggest private sector mutual fund companies inIndia (prudential ICICI AMC).

India is one of three countries in Asia where prudential is the leading private insurer theother two being Vietnam and Indonesia. It is the second largest insurer in Malaysia andthird largest in Singapore.

It helps people to enhance and protect their own and their dependants financial wellbeing by providing them with appropriate savings and protection products. It has strongpositions in three of the largest and most attractive markets in the world, where risingglobal wealth and changing demographics are fuelling demand for long-term savings.Their strategy is to build sustainable, profitable businesses in each of these markets, andthereby maximize returns to our shareholders over time. In the UK Prudential is a leadinglife and pensions provider with around seven million customers. M&G was acquired byPrudential in 1999 and is the Group's UK and European fund manager, responsible for


15/79

managing over 111 billion of funds (as at December 2003). Launched by Prudential in1998, Egg is an innovative financial services company, with over three millioncustomers, with nearly six per cent of UK credit card balances.In Asia, Prudential is the leading European life insurer with 23 life and fund managementoperations in 12 countries serving some five million customers.

In the US, Prudential owns Jackson National Life, a leading life insurance company, andhas more than 1.5 million policies and contracts in force.Sir David Clementi Chairman, Prudential Plc.

DISTRIBUTION

ICICI Prudential has one of the largest distribution networks amongst private life insurersin India, having commenced operations in over 116 cities and towns in India, stretchingfrom Bhuj in the west to Guwahati in the east, and Amritsar in the north to Trivandrum inthe south.

The company has 8 bancassurance tie-ups, having agreements with ICICI Bank, Bank ofIndia, Federal Bank, South Indian Bank, Ernakulam Bank, Lord Krishna Bank and someco-operative banks, as well as about 290 corporate agents and brokers. It has also tied upwith NGOs, MFIs and corporates for the distribution of rural policies and organisationslike Dhan for distribution of Salaam Zindagi, a policy for the socially and economicallyunderprivileged sections of society.

ICICI Prudential has recruited and trained more than 65,000 insurance advisors tointerface with and advise customers. Further, it leverages its state-of-the-art ITinfrastructure to provide superior quality of service to customers

VISION : -

To make ICICI Prudential the dominant life and pensions player built on trust byworld-class people and service

Hope to achieve by: -

Understanding the needs of customers and offering them superior products andservice.

Leveraging technology to service customers quickly, efficiently and conveniently.

Developing and implementing superior risk management and investmentstrategies to offer sustainable and stable returns to our policyholders.

Providing an enabling environment to foster growth and learning for ouremployees.

And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment to 5 core

values :

Integrity.

Customer First.


16/79

Boundary less.

Ownership.

Passion.ACHIEVEMENTS : -

The no.1 private life insurance company with :

Maximum number of policies sold. Largest premium income.

Largest agency force.

Biggest pension player.

Corporate Office : -

ICICI Prudential Life Insurance CompanyICICI Prulife Towers,

1089, Appasaheb Marathe MargPrabhadevi, Mumbai-400025


17/79

PRODUCT

LIFE STAGE : -

Young Professional : -

Life Stage Needs Solution

Young

Professional

Protect loved ones & protection

against liabilities

LifeGuard

Saving / Investing for the future Traditional -

Save 'n' Protect.

CashBak.

SecurePlus.

CashPlus.Unit Linked Insurance Solutions -

LifeTime II.

LifeLink II.

Retirement planning Traditional -

Forever Life.

SecurePlus Pension.Unit Linked Insurance Solutions -

LifeTime Pension II.

LifeLink Pension II.

Tax Planning All Life Insurance plans - Sec 88All Retirement plans - Sec

80CCC(1)


18/79

Newly Married : -


Newly Married Protect loved ones & protectionagainst liabilities

LifeGuard

Saving / Investing for the future Traditional Save 'n' Protect CashBak SecurePlus

CashPlusUnit Linked Insurance Solutions

LifeTime II LifeLink II

Retirement planning Traditional Forever Life SecurePlus PensionUnit Linked Insurance Solutions LifeTime Pension II LifeLink Pension II

Tax Planning All Life Insurance plans - Sec88All Retirement plans - Sec80CCC(1)

Health Concerns Major Surgical Assistance Rider

Critical Illness Rider


19/79

Additional Protection Accident & Disability BenefitRiderWaiver of Premium Rider

Married with Kids : -


Married withKids

Protect loved ones & protectionagainst liabilities

LifeGuard

Saving / Investing for the future Traditional Save 'n' Protect

CashBak SecurePlus CashPlus

Unit Linked Insurance Solutions LifeTime II LifeLink II

Retirement planning Traditional Forever Life

SecurePlus PensionUnit Linked Insurance Solutions

LifeTime Pension II LifeLink Pension II

Tax Planning All Life Insurance plans - Sec 88All Retirement plans - Sec80CCC(1)


20/79

Child's education SmartKid Education Plans

Health Concerns Major Surgical Assistance Rider Critical Illness Rider

Additional Protection Accident & Disability BenefitRiderWaiver of Premium Rider

LIFE STAGE : -

Nearing Retirement : -Life Stage Needs Solution

NearingRetirement

Protection against liabilities LifeGuard

Retirement planning LifeLink Pension IILifeTime Pension II

Tax Planning All Life Insurance plans - Sec 88All Retirement plans - Sec80CCC(1)

SWOT ANALYSIS

The overall evaluation of a companys Strengths, Weakness, Opportunities and Threats iscalled SWOT Analysis.

ICICI Prudential Life Insurance Ltd :


21/79

(1) STRENGTHS :

The ICICI is a strong brand among its competitors.

Wide reach in the urban areas and upgrowing in rural areastoo.

With the help of the tie up with the Prudential Plc it has

accessed as major Insurance player in India. Smart Kid, Life Time & Retirement Solutions are the major

policies captured by ICICI Pru in the market than any otherInsurance Players.

(2) WEAKNESS :

Although it has a tie up with the Prudential Plc the perception of the consumer in terms of insurance is stillremain a bit doubtful compared to the giant LIC and withgrowing competitors like HDFC Standard Life etc.

(3)THREATS :

It is mainly facing stiff competition from the giantLIC and HDFC Standard Life and with other privateinsurance players like TATA AIG, BIRLA SUNLIFE, INGVYSYA etc.

(4)OPPORTUNITIES : The present interest regarding the insurance andsaving plans by customers in India is the biggest opportunityto capture more and more customers by consequentlyincreasing customer base.

WORKING WITH ICICI PRUDENTIALICICI Prudential is India's leading private life insurance company. You could be a part ofthe growing ICICI Prudential family.:

An advisorAn employee

Be an advisorBeing an ICICI Prudential advisor can be an enriching and exciting career option.

Its an opportunity to associate with an industry leader, be in touch with the latest andfinest insurance practices from around the globe, and grow both personally and


22/79

professionally.Here are some of the benefits of being an ICICI Prudential Life Insurance Advisor :

Unlimited earning potential

A clear career path

All round support through exclusive advertising, your own in-house consultant,and world-class training

A comprehensive benefit packageWhat does it take to be an ICICI Prudential advisor?

At ICICI Prudential, we believe that our Advisors are our ambassadors to thecustomers. They are a key source of business for the organization, and are the continuinglink with our clients. That is why, we take a lot of care in recruiting and developing ouradvisor force, so that we continue to set higher standards of quality in service andsalesmanship. To cater to the needs of the knowledge-oriented marketplace, we look forgraduates who are service-oriented, good communicators and enjoy meeting new people.Prior sales experience is an added benefit.

Some of the qualities we seek are: Self motivator

A master communicator

A go-getter

A graduateTraining

At ICICI Prudential, we understand the importance of training in a dynamicbusiness environment. Our advisors go through both generic and specific, professionalprograms that help them remain well-informed and knowledgeable about the companysproducts in the market. There is a further focus on soft skills such as communication,managing long-term relationships and selling skills, which are very relevant in a service-

driven industry like life insurance.State of the art infrastructure training facilities coupled with an excellent faculty,guarantee an exceptional learning environment. For advisors who might be occupied withtheir daily business/professional routines, ICICI Prudential also offers convenient trainingoptions such as online and self-learning are also provided by the organization.A 17-day training schedule covers the mandatory IRDA training requirements and ICICIPrudential product-training module. Revision session ensure that the candidatesthoroughly understand the course contents and are well prepared for the licensingexamination. Theoretical training is interspersed with practical appointment settings withpotential customers, giving advisors a feel of how their business will work from the veryfirst day. All through, the Unit Manager and the management provide continuous support

to the advisors in achieving independence towards garnering business.Career

At ICICI Prudential, career development is emphasized upon from the very daythe advisor joins the system. Though individual meetings with his or her manager, theadvisor can discuss various issues related to business development and careerenhancement. Expectations from the organization in terms of chalking a career in theinsurance industry are also discussed. Tiger Team: ICICI Prudential offers the TigerTeam programme for identified high potential advisors. Hand picked by the


23/79

management, these advisors are placed on a fast-track career path and recognized asTiger trainers. The advisors can participate in this programme, subject to certain criteriabeing fulfilled. Pinnacle Program: Absorption into the management is another careerenhancement option provided at ICICI Prudential through the Pinnacle Program. Thisprogram helps advisors build a full time career as a unit manager in the organization,

offering great potential for managing a team of advisors and personal development. Fasttrack Pinnacle programme is also available to advisors who are able to meet theperformance criteria within the stipulated time.

Rewards and Recognition

ICICI Prudential advisors are constantly recognized and rewarded for theirperformance. Numerous contests all year round promote healthy competition amongstadvisors and recognition for their efforts. Depending on the level of business the advisorachieves in a year, he or she can become a member of various clubs such as thePresidents club, ICICI Pru Star International and the ICICI Pru Star India club. Each ofthese clubs have specific performance criteria for qualification and members of theseclubs are entitled to attend seminars held at exotic international and domestic locations

each year. Advisors can also qualify for the renowned MDRT (Million Dollar RoundTable), an exclusive international insurance advisors club.

An Employee

ICICI Pru offers exciting career oppurtunities for people from a variety of streams.You can apply for jobs at ICICI Prudential Life Insurance through our e-recruitmentsection.Distribution

Tied Agency

Tied Agency is the largest distribution channel of ICICI Prudential, comprising a largeadvisor force that targets various customer segments. The strength of tied agency lies inan aggressive strategy of expanding and procuring quality business. With focus on sales& people development, tied agency has emerged as a robust, predictable and sustainablebusiness model.Bancassurance and Alliances

ICICI Prudential was a pioneer in offering life insurance solutions through banks andalliances. 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 partnersand add value to its customers as well as the partners. Flexibility, adaptation andexperimenting with new ideas are the hallmarks of this channel.

Customer Service & Operations

The Operations department oils the work processes between the customer and thecompany to ensure consistent and quality service to the customer. To streamline the


24/79

operations, the Operations department interfaces between the clients and the agents, thebranches 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 QueryResolution Unit are all committed to providing effective solutions to over lakhs of

customers across the country


25/79

IT

The Information Technology function at ICICI Prudential is committed to enablebusiness 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 indesigning better product offerings to end-users, the Solutions Group- Web that providesreal-time information to customers and is responsible for customer relationshipmanagement, IT Architecture & Corporate Solutions Group is in charge of developingand maintaining a blueprint for the IT architecture for the enterprise as a whole. Thisteam works as an in house R&D Solution Group, exploring new technological initiativesand also caters to information needs of corporate functions in the organization. ITInfrastructure group is responsible for providing hardware, software, network services tothe whole organization. This group runs the 'Digital Nervous System' of the Enterprise atthe highest levels of efficiency and provide robust, scalable and highly available platformfor deployment of business application.

Marketing

The Marketing function at ICICI Pru covers an array of activities - brand and mediamanagement, channel support, direct marketing and corporate communications. TheBrand and Communications team is in charge of advertising, consumer research, media planning & buying and Public Relations; that helps develop and nurture ICICIPrudential's corporate identity while effectively communicating its varied productofferings to the customer. Channel marketing provides support to the sales force bystreamlining the design and development of collaterals and sales tools across distributionchannels. The Direct marketing team was set up to generate high quality leads for

profitable business. The team achieves this through target database acquisition andcommunicating customised product information through e-mailers, telemarketing andinnovative direct mailers.


26/79

Finance

Finance function in ICICI Prudential is committed to create an infrastructure that isaligned to shareholder expectations. Finance basically comprises of four functions. .

Corporate Planning and MIS provide feedback on business strategies. This includesdriving the budgeting process, providing strategic inputs for decision-making andmanagement reporting and analysis. The Accounts function includes preparation andmaintenance of financial records, funds management, and expense processing andtreasury operations. Compliance ensures that every action is within the regulatoryframework. This includes reviewing compliance requirements and supporting the ethicalframework of ICICI Pru life. Internal audit provides assurance to the management overthe organizations' control framework and includes process risk management, informationsecurity assessment and business continuity assessment.

HR

The people strategy of ICICI Prudential is "To build a committed team with a culture ofinnovation, learning and growth. The Human Resource Function at ICICI Prudentialdrives the people strategy of the business. With its initial focus on operational excellenceto deliver benefits and services to staff members, HR is now committed to buildingcapability through state of the art processes. A robust performance management system,compensation system and a segmented training architecture enable it to deliver value tothe organization.

Business Excellence

Excellence The Business Excellence function is committed to building a quality mindset

across the organization. ICICI Prudential is the first organization in the InsuranceIndustry that has adopted the Six Sigma Methodology for process efficiency andmeasurement. The team is also driving the Malcolm Baldrige framework across theorganization, an intervention that examines management of key inputs for BusinessExcellence.


27/79

Introduction of Insurance

And

Insurance Marketing


28/79

Introduction OF Insurance: -

Insurance may be described as a social device to ensure protection of economic

value of life and other assets. Under the plan of insurance, a large number of people

associate themselves by sharing risks attached to individuals. The risks, which can be

insured against, include fire, the perils of sea, death and accidents and burglary. Any risk

contingent upon these, may be insured against at a premium commensurate with the risk

involved. Thus collective bearing of risk is insurance.

Insurance is a contract whereby, in return for the payment of premium by the

insured, the insurers pay the financial losses suffered by the insured as a result of the

occurrence of unforeseen events. The term "risk" is used to describe the possibility of

adverse results flowing from any occurrence or the accidental happenings, which produce

a monetary loss.

Insurance is a pool in which a large number of people exposed to a similar risk

make contributions to a common fund out of which the losses suffered by the unfortunate

few, due to accidental events, are made good. The sharing of risk among large groups of

people is the basis of insurance. The losses of an individual are distributed over a group

of individuals.

It is used with reference to financial protection against a possibility, such as fire,

accidental damage, theft, or medical expenses: motor insurance, house hold insurance,

travel insurance, health insurance.

It ensures protection of economic value of asset.

It is a joint venture

It is a social security tool

It is a risk transfer mechanism.

The insurance institute of India was established in 1955 fro the purpose of imparting

insurance education to persons engaged or interested in insurance. The institute conducts

written examinations at various levels and arranges tuition services, both oral and postal


29/79

Definitions:

General definition:

In the words of John Magee, Insurance is a plan by themselves which large

number of people associate and transfer to the shoulders of all, risks that attach to

individuals.

Fundamental definition:

In the words of D.S. Hansell, Insurance accumulated contributions of all parties

participating in the scheme.

Contractual definition:

In the words of justice Tindall, Insurance is a contract in which a sum of money

is paid to the assured as consideration of insurers incurring the risk of paying a large sum

upon a given contingency.


30/79

Characteristics of insurance

Sharing of risks

Cooperative device

Evaluation of risk

Payment on happening of a special event

The amount of payment depends on the nature of losses incurred.

The success of insurance business depends on the large number of people insuredagainst similar risk.

Insurance is a plan, which spreads the risk and losses of few people among a largenumber of people.

The insurance is a plan in which the insured transfers his risk on the insurer.

Insurance is a legal contract, which is based upon certain principles of insurancewhich includes utmost good faith, insurable interest, contribution, indemnity, causesproximal, subrogation, etc.

The scope of insurance is much wider and extensiv

IRDA (The Insurance Regulatory And Development Authority): -

A critical element, of financial sector reforms is the development of a pool of humanresources having right skill and expertise in each segment of the industry to providequality intermediation to market participants. Quality intermediation requires personnelworking in the industry need to

(1) Follow a certain code of conduct.(2) Have an understanding of business and skills to service different constituents in

the market.In order to ensure this, the IRDA (hereinafter referred to as the regulations). Regulation6 of the regulations requires that a person desiring to obtain or renew a license to act asan insurance agent or a composite insurance agent shall pass the pre-recruitmentexamination in life or general insurance business, or both, as the case may be, conducted by the insurance institute of India, Mumbai or any other examination body dulyrecognized by the authority

Accordingly, the institute has developed pre-recruitment examinations inboth life and general insurance business. These examinations are administrated all overthe country manually by the institute and electronically by the national stock exchange ofIndia ltd., mumbai (hereinafter referred to as the NSE). The national stock exchange ofIndia ltd. A company registered under the companies act, 1956,provides a testing andcertification mechanism called NSEs certification in financial markets (NCFM) to testpractical knowledge and skills that are required for operations in financial markets in a


31/79

secure and unbiased manner. NCFM is designed to administer tests in a modular fashion.It offers a comprehensive range of modules that cover many different areas of finance. Itis an on-line nation wide testing and certification system where the entire process fromgeneration of question paper to certifying is fully automated.

Insurance industry is at a threshold of a major change. With

the deregulation of the insurance sector, doors of the Indian market have opened up to private sector and foreign companies. Around 30 companies have shown interest forstating the business.

Many foreign companies have also entered into alliance with Indiancompanies. Most of these companies have many years of experience in the financial andinsurance sector. The entry of such private companies is regulated by IRDA.IRDA hasput rules and guidelines to govern private participation (Indian or with a tie-up with aforeign company) in the sector. IRDA has granted license for life insurance to thefollowing companies:

ICICI prudential life insurance company ltd.

HDFC standard life insurance company ltd

Om kotak Mahindra life insurance company LTD Max New York life insurance company ltd

Birla Sun life insurance company ltd

Tata Aig life insurance company ltd

SBI life insurance company ltd

Ing Vysya life insurance company ltd

Aviva life insurance company ltd

Etc.

Mechanism:-

The basic mechanism of insurance works with the principle where people exposed to therisks come together and pool funds to protect each and individual against risk. Therefore,risk is spread out .The insurance companies collect money in advance and creates a fundfrom which losses are paid.

Risk is defined as the possibility of adverse results flowing from any occurrence.Insurance reduces the impact of risk on the owner and those who depend on the asset .Itmust however be noted that, only economic or financial losses can be compensated. Forexample, the emotional support that the breadwinner provides can neither be evaluatednor compensated. However, the financial support can be evaluated and compensated.

Role of insurance in economic development : -

Insurance premium collected by insurance companies are invested in variousdevelopment projects. They provide the much needed cash for economic developmentand growth. LIC (Life Insurance Corporation Of India) used this money to invest ininfrastructure development e.g. housing loans, sewage systems and electricity.

Role of insurance in nation building : -

Insurance benefits society by :-

Providing relief to the insured from any mishap.


32/79

Reducing the burden of the government in providing relief to old citizens.

Placing large sums of money at the disposal of the government for developmentof the economy.

Insurance company operations : -

The process of creating a product, making it available to consumers, ensuring customersatisfaction is integral to an insurance company.

Creating the product : -The functional areas that are involved in the creation of a product are: -1. Actuarial.2. Accounting.3. Marketing.4. Agents, brokers & sales representatives.5. Information systems.6. Investment.7. Legal.

8. Underwriting.9. Policy owner services.10. Claim administration.

The creation of a product involves the following stages : -

1. Idea generation.2. Comprehensive business analysis.3. Technical designing.4. Implementation.5. Product introduction.6. Sales monitoring and review.

Basically the various elements, which can upset human plans, are : - Burglary.

Death.

Accidental permanent disability.

Sickness.

Critical illness.Events that must occur at some time, such as death, are provided for by assurance.

There are two different branches of insurance : -

Life insurance.

Non-life or General insurance.

Life Insurance : -

It insures the life of a person. Human life is an income-generating asset. This assetcan be lost through unexpected death or made non-functional through sickness ordisability caused by an accident. There is no certainty that an accident will happen. Onthe other hand there is a certainty that death will happen, but its timing is uncertain.


33/79

Life insurance is a branch of insurance in which compensation ismade available to designated survivors of a deceased person, or to a person on their ownsurvival after a fixed term of years, in return for payments, or premiums. Life assuranceis based on the mathematics of probability, which determines the level of premium to bepaid, and on compound interest, which determines the growth over time,

through investment, of the fund constituted by the intake of premiums. The two togetherensure an adequate fund to provide the compensation required.

Life insurance protects against loss of income of an individual.

Life Insurance :

Does not protect the asset.

Does not prevent its loss.

It is not a contract of indemnity.

It cover depends on the paying capacity of an individual.Insurance reduces the impact of risk on the owner and those who depend on the asset. Itmust however be noted that, only economic or financial losses can be compensated not

emotional support.Life insurance products provide for: -

Risk cover.

Investment.

Health cover.Four main types of insurance policies: -

Term assurance (Only in the term).

Whole-life assurance (Whole-life).

Pure endowment (Only on the survival of the selected term).

Annuity. (A form of pension in which an insurance company makes a

series of periodic payments to a person (annuitant) (or) his (or) her dependentsover a no. Of years. (Term) in the return for the money paid to the insurancecompany either in a lump sum (or) in installments.

Non-Life (Or) General Insurance: -It insures everything except life.i.e. vehicle, electronic, furniture, medical, home (or) building, industry etc.


34/79

Functions of insurance:

Primary functions:

1. Provide protection:- Insurance cannot check the happening of the risk, but canprovide for the losses of risk.

2. Collective bearing of risk: - Insurance is a device to share the financial losses of fewamong many others.

3. Assessment of risk: - Insurance determines the probable volume of risk byevaluating various factors that give rise to risk.

4. Provide certainty: - Insurance is a device, which helps to change from uncertainty tocertainty.

Secondary functions:

1. Prevention of losses: - Insurance cautions businessman and individuals to adoptsuitable device to prevent unfortunate consequences of risk by observing safety

instructions.

2. Small capital to cover large risks: - Insurance relives the businessman from securityinvestment, by paying small amount of insurance against larger risks and uncertainty.

3. Contributes towards development of larger industries.

Other Function:

Means of savings and investment:

Insurance companies are business houses. The product they sell is financial protection.To succeed and survive, they must cover their costs, which include payments to cover thelosses of policyholders, as well as sales and administrative expenses, taxes and dividends.

Insurance companies have two sources of income for covering these costs: premiumsand investment income.

The premiums are collected on a regular basis and invested in GovernmentBonds, Gilt, stocks, mutual funds, real estates and other conservative avenues. However,investment income depends on market conditions, interest rates, economy etc. and variesfrom year to year. Because of the uncertainty associated with the investment income,insurance companies must generate enough income from premiums to cover the bulk oftheir expenses.

The risk becomes insurable if the following requirements are complied with:

The insured must suffer financial loss if the risk operates.

The loss must be measurable in money,

The object of the insurance contract must be legal.

The insurer should have sufficient knowledge about the risks he accepts.


35/79

Fundamentals of Insurance

The fundamental Principles of the Insurance are as follows:

Insurable Interest: Insurable interest means the legal right to insure. InsurableInterest is a must and only then the insurance contract is enforceable at law. This

principle differentiates a Contract of insurance from wager. Lack of insurable interestrenders the contract null and void. For Insurable Interest to exist there must beProperty, Rights, Interest, Life or Liability; this must be insured and the Insuredshould have a legally recognizable relationship thereto. The Insured should bebenefited by the safety of the property or is prejudiced by its loss. Insurable Interestmay arise in the following manner:

1. Ownership: Absolute ownership entitles the owner to insure the property. This isthe commonest method whereby Insurable Interest arises.

2. Partial Interest is also insurable e.g. a mortgagee. A creditor can also insure thelife of his debtor but only to the extent of his loan.

3. Administrators and executors i.e. officials appointed by a court of law to takecare of a property may also insure the property.

4. Relationship does not automatically constitute insurable interest. The onlyrelationship recognized by law for this purpose is the one between a husband and wife.

5. An employer can insure his employee under a Personal Accident Policy as he hasinsurable interest in them.

Proximate cause: Generally, the claims are payable under insurance policies ifthey arise out of events which are proximately caused by the insured perils. In otherwords, the proximate cause of the event has to be peril covered by the policy, so as to

constitute a valid claim. Contribution: An insured may have several insurance on the same subject matter.

If he recovers his loss under all these insurance, he will obviously make a profit outof loss. This will be an infringement of the principle of indemnity. Common Law has,therefore, evolved the doctrine of contribution whereby the insured is prevented fromrecovering more than his loss, despite his having several insurance on the subjectmatter.

Subrogation: The principle of indemnity seeks to prevent the insured from makingprofit out of loss. However, it may so happen that that the insured may recover hisloss under his policy and he may also have rights against third parties. If, after the

insurance claim is settled, the insured is allowed to enforce his rights against thirdparties and to retain whatever damages he receives from them, he will certainly makea profit and the principle of indemnity will be infringed.

Common Law has therefore, evolved the doctrine of subrogation as corollary to theprinciple of indemnity. Subrogation may be defined as the transfer of rights andremedies of the insured to the insurers who have indemnified the insured in respect ofthe loss. The Common Law right of subrogation is implied an all contracts onindemnity, as it arises only after payment of loss.


36/79

Utmost Good Faith: In all General Insurance contracts we know that a propertyor interest or liability or life is offered for insurance and the insured has to takedecisions on the acceptance of the proposal. If he decides to accept the proposal apremium commensurate with the risk has to be charged. To enable him to takenecessary decision in this regard, the insurer must have certain facts about the risk

offered. These facts influence the judgment of the insurer in deciding about theacceptance or otherwise of the risk and the rate of premium to be charged, ifaccepted. Such facts are known as material facts.

NATURE OF INSURANCE CONTRACTS:

When the insured pays the premium and the insurers accept the risks, the contract ofinsurance is concluded. The policy issued by the insurers is the evidence of the contract.The contract of insurance, like any other contract, for example a contract for the sale ofgoods, is subject to the general law of contract as embodied in the Indian Contract Act,1872.

According to this Act, a contract must have certain essential features in order to makeit legally valid and enforceable. The following are the essential elements:

a) Offer and acceptance: Usually, the offer is made by the propose, and acceptancemade by the insurer.

b) Consideration: This means that the contract must involve some mutual benefit to theparties. The premium is the consideration from the insured and the promise to indemnityis the consideration from the insurers.

c) Agreement between the parties: Both the parties should agree to the same thing inthe same sense.

d) Capacity of the parties: Both the parties to the contract must legally competent toenter into the contract. For example, minors cannot enter into insurance contracts.

e) Legality: The object of the contract must be legal and the contract should not violateany legal requirements. E.g. no insurance can be had for smuggled goods.

RISK

Reasonable or not, risks are inescapable in business. Every business venture issomething of a gamble, because the possibility of loss is as real as the prospects forprofits. And even though managers do everything possible to ensure that their businesssucceeds, they cannot guard against every conceivable form of risk.

Pure Risk versus Speculative Risk:

Pure Risk: Events representing the kind of risk that no business can predict orescape, known as Pure Risk, it is the threat of a loss without the possibility of gain. Inother words, a disaster such as avalanche or fire is costly for the business it strikes,but the fact that no disaster occurs contributes nothing to a firm's profit.


37/79

Speculative Risk: It is the type of risk that offers the prospect of making profit - andprompts people to go into business in the first place. Every business accepts thepossibility of losing money in order to make money.

Approaches to Risk Management

Risk Management is the process of reducing the threat of loss due to uncontrollableevents. Steps in selecting a risk management approach:

To identify all the things those can possibly go wrong.

To consider the probability that an event will occur.

Techniques of Risk Management are:

1. Avoiding the Risk: When a company avoids risk, it eliminates the possibility that aparticular event will occur. To avoid the possibility of a suit, for example, not to produceany products -which would, of course, eliminate both the threats of a lawsuit and theopportunity to profit. With rare exceptions, avoiding risk entirely is extremely difficult.

2. Reducing Risk: A more practical approach is to reduce the risk by taking precautions.Risk reduction is an important element in most companies' approach to risk management.Typical precautions include putting safety locks on doors to prevent robberies, installingoverhead sprinklers to minimize fire damage, and periodic checking motor vehicles toprevent accidents.

3. Assuming risk: Many companies draw on current revenues or set aside a"Contingency Fund" to cover unexpected losses. Setting aside money on regular basiscould be cheaper than purchasing insurance. Moreover, the company can earn interest onthe reserved cash. Such assumption of risk is also called self-insurance or risk retention.

4. Transferring the risk: Most companies still rely on outside insurance firms forfinancial protection against catastrophic losses. In buying insurance, companies transferthe risk of loss to an insurance firm, which agrees to pay for certain types of losses. Inexchange, the insurance firm collects a fee known as a premium.


38/79

INSURANCE MARKETING:

A marketing mix is a combining of these four variables in a way that will meet

or exceed organizational objectives. A separate marketing mix is usually crafted for each

product offering. When constructing the mix, marketers must always be thinking of who

their target market are. Mix coherency refers to how well the components of the mix

blend together. A strategy of selling expensive luxury products in discount stores has

poor coherency between distribution and product offering.

In the long term, all four of the mix variables can be changed, but in the short

term it is difficult to modify the product or the distribution channel. Therefore in the short

term, marketers are limited to working with only half their tool kit. This limitation

underscores the importance of long term strategic planning. Some commentators have

increased the number of p's in the mix to 5, 6 or even 8. "People" is sometimes added,

recognizing the importance of the human element in all aspects of marketing. Others

include "Partners" as a mix variable because of the growing importance of collaborative

channel relationships.


39/79

7 Ps of ICICI Prudential

TARGETING

Marketing MixOf

ICICI Pru

Target Market

Policy

Premium

People

Physical Evidence(i.e; Returns on

Investment)

Place Promotion Process


40/79

A target market is the market segment, which a particular product is marketed to.Age, gender and/or socio-economic grouping often define it. Targeting strategy is theselection of the customers you wish to service. The decisions involved in targetingstrategy include:

How many segments to target?

Which segments to target?

How many products to offer?

Which products to offer in which segments?

There are three steps to targeting:

Market segmentation.

Target choice.

Product positioning.

Targeting strategy decisions are influenced by:

Market maturity.

Diversity of buyers needs and preferences.

The company's size.

Strength of the competition.

The volume of sales required for profitability.

5 Patterns Of Target Market Selection

Single - Segment Concentration.

- Through concentrated marketing, the firm gains a strong knowledge of thesegments needs and achieves a strong market presence.

Selective Specialization.

- The firm selects a number of segments, each objectively attractive andappropriate.

Product Specialization.

- The firm makes a certain product that it sells to several segments.

Market Specialization.

- The firm concentrates on serving many needs of a particular customergroup.

Full Market Coverage.

- The firm attempts to serve all customer groups with all the products theymight need.


41/79

Single - Segment Concentration

M1 M2 M3

P1

P2

P3

P = Product M = Market


42/79

Selective Specialization

M1 M2 M3

P1

P2

P3



43/79

Product Specialization

M1 M2 M3

P1

P2

P3


ICICI : -

After segmenting, ICICI has targeted Product Specialization in patterns of target marketselection to promote their banking products. ICICI made certain banking products like SBA,CA, JA, FDA, Credit & Debit Cards, ATMs etc. that it sells to several segments.


44/79

Market Specialization

M1 M2 M3

P1

P2

P3


ICICI: -

After segmenting, ICICI has even targeted Market Specialization in patterns of target marketselection to promote their financial products in various markets.ICICI had concentrated onserving many needs of a particular customer group with various types of financial productsthey need like - Banking, Mutual Funds, Insurance etc.


45/79

Full Market Coverage

M1 M2 M3

P1

P2

P3


ICICI Prudential Life Insurance ltd : -

After segmenting, ICICI Pru has targeted Full Market Coverage in patterns of target marketselection to promote their Insurance services. The firm attempts to serve all customer groupswith various types of Insurance services they need.


46/79

Major Segmentation Variable For

ICICI Prudential Life Insurance Pvt. Ltd.

Geographic Segmentation : -

Region : Eastern, Western, Northern, Southern Parts of India.

Density : Urban, Suburban, Rural.

City Or Metro Size.

Demographic Segmentation : -

Age : For All Ages.

Family Size : 1-2, 3-4, 5 +

Family Life Cycle : Young, Single, Married, Married with children, Older.

Gender : Male & Female.

Income : Low, Medium, High.

Occupation : Any.

Education : Any.

Religion : Any.

Generation : Present & Future.

Nationality : Indian.

Social Class : Upper Lowers, Working Class, Middle Class, Upper Middles,

Lower Uppers, Upper Uppers.

Psychographic Segmentation : -

Life Style : Any


47/79

Personality : Any

Behavioral Segmentation : -

Benefits : Quality Service.

Loyalty Status : None, Medium, Strong.

Readiness Stage : Unaware, Aware, Informed, Interested, Desirous.

Attitude Toward Product: Positive, Indifferent, Negative, and Enthusiastic.

POSITIONING OF ICICI PRUDENTIAL LIFE INSURANCE PVT LTD.

Attribute Positioning.

-Positioned as 5 years of existence in India as started their operations in 2000.

Benefit Positioning.

- Positioned as the leader in Life Time, Retirement Solutions & Smart Kid.

Use or Application Positioning.

- Positioned as best for Insurance Services.

User Positioning.

- Positioned as best for all age groups according to their requirements.

Competitor Positioning.

- Positioned as to be 2nd and 3rd in couple of years in terms of quality insurance

services than LIC & HDFC.

Product Category Positioning.

- Positioned as the leader in a certain services like Smart Kid, Life Time &

Retirement solutions category.

Quality or Price Positioning.


48/79

- Positioned as offering the best value for their services.

ROLE OF AN ADVISOR:

1. Identify future clients/prospect

2. Making appointment.

2. Conduct financial review meeting with prospect.

4. Close sale.

5. Get referral

6. Provide service to clients/prospect.

7. Follow internal sales and reporting system.

After analyzing the quality (which the company is looking for), back office

service (which the company is giving to that person). functions to be performed. role to be

played . I used to describe the benefits which the advisor can get out of

his/her joining as an advisor in ICICI Prudential Life Insurance Company.

OPPORTUNITIES:

1. No start up capital is required to becoming an advisor.

2. Flexible working environment.

3. Be his/her own boss.

4. Unlimited earning potential.

5. To be part of world class team.


49/79

Besides these ICICI Pru has given the following benefits to the individual those who are

willing to join as an advisor in our company.

PROCESS OF INSURANCE ADVISOR:

First of all a questionnaire was made. Cold calling and find which person

have been interested became an advisor was done and the questionnaire was made to be

filled by the respondents there. Data are also collected through personal references,

websites, tata yellow pages, newspapers, phone directories, etc.

After this I fixed the meeting and explain the process of the plan and after that his

queries were answered. If he gets satisfied with the plan then certain questions were

asked from him in order to satisfy the criteria of Q- SCORE SHEET .Q SCORE

SHEET consist of 5 criteria. Out of the five criteria out of the five criteria if minimum

three are satisfied then only the respondent can became a advisor.

Now if it is found that this person is a right according to the Q SCORE SHEET then he

filled his information. After this he submitted the foam with the important documents.

. These documents include: -

1. 10TH MARKSHEET

2. MARKSHEET OF THE GRADUATION

3. PHOTOGRAPHS

4. A DEMAND DRAFT OF RS 1500 IN FAVOUR OF ICICI PRUDENTIAL

LIFE INSURANCE.

The companies provide a 100 hours training with the help of IRDA. This training is

finished in 15-20 days. After this the company gives the date of examination.


50/79

A center was told to them where the examination took place. In the exam the

minimum pass marks were 45 out of 100. If they clear the examination then the company

issued a certificate to them declaring that they had now become a legal advisor of the

company. But if any person were not able to clear the exam then he give the re-

examination by submitted the fees.

After this they become a advisor then the company give an agent code. With the help of

this code an advisor open the zero balance in the ICICI BANK.

This was the whole study during the summer training.

Instructions

Please answer the below question in yes/no.

In case of Q score is less than 3, approval from either

1) Territory manager or above.2) Sales manager-channel development.

Q SCORE SHEET

Application No.

Age above 25? Yes / No

Married? Yes / No

Are you a graduate? Yes / No

Living in same city for more than 5

years?

Yes / No

Household income above 2 lakhs? Yes / No

Total score (Out of 5)


51/79

Research MethodologyAnd

Objective of the study


52/79

RESEARCH METHODOLOGYResearch design depends on type of research studies that we are going to make. My

research study is descriptive type. Research methodology is all of the techniques,

methods and procedures adopted in terminology work to carry out terminology research.

It is a way to systematically solve the research problem.

DESCRIPTIVE RESEARCH STUDY:.

In this type of research study the researcher must able to define clearly, what he

wants to measure and must find adequate methods measuring it along with the clear cut

definition of population he wants to study. Since the aim of study is to obtain complete

and accurate information, who must be interested in insurance company. The design in

such studies must be rigid and rigid. For the study I have taken a sample of about 100

customers, etc from each and every market in Delhi, Noida and Ghaziabad. In planning

and designing a specific research project it is necessary to anticipate all the steps that

must be under taken if the project is to be successful in collecting valid & reliable

information. If it were broken down into very small parts or activities, the marketing

research process would consist of a great no of steps ----

Selecting a sample type.

Specifying research objectives.

Preparing a list of the needed information.

Designing the data collection project.

Determining a sample size.


53/79

Organizing and carrying out the fieldwork.

Analyzing the collected data and reporting the findings.

1. FORMULATION OF OBJECTIVE:

Research Objective must be clearly defined (what the study is about and why it is being

done) then only, it can be achieved in a best way.

With the aim to make comparative analysis between the Insurance companies we

analyse the data of different companies in various prospectives:---

Purpose of study:

To study and evaluate various strategies of ICICI PRUDENTIALfor various section ofsociety.

2. DATA SOURCES

The second stage is the collection of data is the data sources Primary Data Sources and

Secondary Data Sources. Primary Data Sources are collected specifically for the

purpose of research study, which is to be done, and secondary data source are already

collected data, with some other objective.

Primary Data Source:

Questionnaire: A formal list of Questions is formulated and asking the questions from

the people who are having the related information. Here the Questionnaire is Structured.

Close end Questionnaire with Dichotomous and Multiple Choice Questions. Main aim is


54/79

to compare the Customer Attitude and Loyalty towards SMART KIDS PLAN product of

different companies.

Secondary Data Source:

Internal sources: On-Line Information, Report of IRDA( INSURANCE

REGULATORY &DEVELOPMENT AUTHORITY ),

External data : Magazines like Business Standard, Books on insurence and journals .

3.SAMPLING PLAN

Sampling Unit (Who Is Being Surveyed)

All prospectives who are intresting in investment cum insurance.

Sampling Size (How Many People Should Be Surveyed)

100 customers in DELHI & NCR

Contact Method (How The Subject Should Be Contacted)

Cold calling, Personal Contract, Through Internet

After using contact methodthose person interested I meet them individual.


55/79

OBJECTIVE

My objective is to maximize the recruitment number of good quality advisor by

minimizing the relevant cost and comparative study of ICICI Prudential product with

other insurance companies .There are more objectives regarding the research

methodology and these are stated below:

1. To increase the equity base of ICICI Prudential by increasing the number of good

quality advisor who sell the more policy.

2. To hold the market share and also to increase the competitive edge over other.

Then only ICICI Prudential will be able to the position as first rank. Again this

is possible only when the company recruiting good quality advisors those who are

having much more contact with high or medium profile people those who are the

potential customer for the company.

With the aim to make comparative analysis among the various insurance companies

with respect to their smart kids product is done considering following factor:

Entry Age & Maturity date

Premium value & Term

Death Benefit

Surrender Benefit

Withdrawal


56/79

DATA ANALYSIS


57/79

AREA-WISE DISTRIBUTION OF SAMPLE

33%

53%

14%

east delhi

ghaziabad

noida

Figure-1

AGE GROUPWISE BREAK-UP OF THE SAMPLE

37%

24%

22%

17%

15-25

25-35

35-45

45-55

Figure-2


58/79

CONVERSION RATE OF POTENTIAL RESPONDENTS

15%

85%

converted

not converted

Figure-3

0

5

10

15

20

25

30

No. of Respondent

>10000

10000-20000

20000-30000

30000-40000


59/79

0

5

10

15

2025

30

35

40

45

No. of Respondent

Business

Pvt.ServiceGovt.Searvice

Others

Figure-5

0102030405060708090

100

20

05-

06

20

04-

05

20

03-

04

20

02-

03

20

01-

02

LIC

Pvt. Players

Figure-6


60/79

0

5

10

15

20

25

30

MARKET SHARE (%)

ICICIPru

Bajaj Allianz

HDFC

SBI life

Birla SunLife

Tata AIG

Max New York

Aviva

Kotak MahindraOthers

Figure-7


61/79

0

500

1000

1500

2000

2500

3000

PREMIUM COLLECTED

2005-06 (in crores)

ICICIPru

Bajaj Allianz

HDFC

Birla SunLife

Tata AIG

Max New York

Aviva

Kotak Mahindra

Figure-8

.


62/79

0

10

20

30

40

50

60

70

80

MARKET SHARE(Fig

in%)

LIC

ICICIPRUDENTIAL

BAJAJALLIANZ

HDFCSTANDARD LIFE

SBI LIFE

MAXNEW

YORKLIFETATA

Figure-9


63/79

INTERPRETATION


64/79

INTERPRETATION

After analyzing the data the interpretation of the data can be done as follows.

No of clients visited are 100 in the region of Delhi , Noida and Ghaziabad.

(1) The above pie-chart gives the split of the sample area-wise. The sample

constituted 53% of the respondents from Ghaziabad, 33% from East-Delhi and 14%

from Noida.

(2)The above pie chart gives the age-group wise split of the sample. According to

it there were 37% respondents belonging to group 15-25 years. 24% were of

group 25-35 years. 22% were of group 35-45 years and finally 22%belonged to

45-55 years.

(3)Out of the total appointments called for is 100,15 of them were finally

converted. Hence the conversion rate turns out to be 15. %.

(4)The above pie chart gives the income group wise split of the sample.

According to this every person earn the different income. The income of the

mostly people is >10000.

(5) I found that those people who are between 30-35% are more serious for this.

Because every people want to earn more money for their family . So that they are more

interested in this area.

(6) And if we analyze according to income then I found that those people who

are having income less than 2 lakh is more serious about this. Because they have

required of the money


65/79


66/79

CONCLUSION


67/79


68/79

senior. Career path and so on.It has sold over one lakh fifty thousand policies till

date.

So, It is my great experience and pleasure working in a company like ICICI

Prudential. It was a great learning experience about recruitment strategy of an advisor,

about the business, about the fulfillment of the business and so on. After going through the

whole project for two months I have got different issues like motivation, encouragement

from the senior.

It was also a great experience of meeting various kinds of people like CA, FD,

LAWYER Service, persons etc. It was a great learning experience of how, to

approach different kind of people.

After this I find that mostly people believe in LIC. Because it is a government company.

Thus it can say that these have been a great two months of learning and growth.


69/79

Suggestions

And

Limitations


70/79

Suggestions and Recommendation

The company is charging Rs. 1500 from person who wants to join the

company as an advisor but the fees is too high for the freshers. They have to arrange the

money for it and if they fail to do so they are left in vain. The fees should be reduced to a

considerable amount so that any person who wants to join the company can easily

arrange it and be part of the prestigious group. Further it has been seen that the no. of the

advisors joining the company is far more in the month of May as compared to the other

part of the year, when the fees is totally whipped by the company. So if the fee is reduced

the no. of advisors joining the company will increase and this will help in capital gain to

the company.

The minimum age criteria set by the company for the person joining as an

advisor is 25 yrs. This age limitation should be reduced to 21 yrs. This is an ideal time for

the fresh graduates to join the company as an advisor and achieve the positions they

deserve. An advisor can easily reach to higher posts in the company with the span of time

and showing their capabilities to do the work assigned to them at different levels. The

company should try to hit this segment. Since the advisors can also became an employee

of the prudential, starting from unit manager, through the pinnacle program, and can go

to more higher posts also, the students finds its a great opportunity for themselves. The


71/79

zeal to show good performance is also much high in them as compared to other segments

people.

The company should take proper care of the advertisements of the new

schemes launched by it so that more and more people are attracted towards it and become

a member of it. The advertisements give a way to the people about the benefits of the

scheme and to overcome the increasing competition with the other big names of the

market.

The company should gives an attractive gifts and packages to the advisors

as per their work so that they can have faith in the company and works in more

enthusiastic manner to earn more and more benefits.

The company should provide an intensive training to the fresh advisors so

that they can cope up with the increasing competition in the market and overcome the

difficulties they faces during their work in a more effective manner.

The commission provide to the advisors should be enhanced so that the

existing employees and the interested candidates to join the company are attracted

towards it. In addition to it a minimum monthly package should also be given to them

and the existing method of giving only the commission should be replaced. When there is

a monthly salary in addition to the commission the advisors will stick to their jobs and

will give the company more profit with the increasing experiences.


72/79

It has been seen that most of the branches of prudential are situated in the

metropolitans and the urban areas. But the life of India lives in the villages and the semi-

urbans. The company should try to hit these areas so as to increase the opportunities. This

will help in boosting the profit of the company and new schemes should be launched to

attract this segment of population.

The companys more sellable life time policy has a minimum premium of

Rs. 18000/- where as this premium is as low as to Rs. 10000/- of their competitors in the

market. If this premium is reduced by the company to a competitive amount than more

people can be attracted towards the life term policies offered by the company and the loss

can be adjusted by increasing the no. of customers. The low income group can also be

attracted towards it by launching new schemes and policies with a low premium.

PROMOTIONAL STRATEGIES

Press publicity:

Paper inserts

Advertisements in newspaper (local and national).

Interest cards distribution

Mailers/personal invitations to selective section of the society

Leaflets

Outdoor publicity:

Banners in commercial areas and prime sites.


73/79

Air balloons at shopping complex.

Bus stands shelters.

Advertisements on Dividers and Railings.

Media:

Local channel advertisement (cable TV scrolls)

Advertisements in news channels and business channels

Face to face:

Personal interaction of marketing executives through

Meetings

Detailing about schemes and updating them from time to time

Event sponsoring in local clubs and social gathering

Road shows

Contacting senior citizens in parks in morning and evening.

Contacting office goers in the morning and evening at stop lights by

distribution of interest cards.


74/79

LIMITATIONS

These are measured in terms of, Interest Time Cost Human error.

Interest : -

Most of people had a bad perception on insurance sector. As most of the people are

satisfied in their works they have very less interest to do a side-by-side business and

especially in insurance sector.

Time : -

Professionals, Business Men, Employees etc dont have time to do an extra business and

even though they are interested they dont have time to attend the training for advisor

ship due to their hectic schedule in their perspective works. As they dont attend the

training they might not be able to know about the process of insurance sector and its

product information. So time takes a major role in this sector.

Cost : -

As concerned regarding cost, company is spending an approximate of 10,000 / - per head

on training. They are spending this money by means of seminars, lectures, stationary,

food etc. so company is charging 1500/ - per head earlier itself for the sake of insurance


75/79

exam and for other formalities so that company have faith on the candidate that he/she

may not escape from company after taking training. Company had kept a motivation

factor too, i.e.; actually by rule that 1500 / - is non-refundable. But if the candidate can

give 7 policies in first 3 months it will be paid from the pockets of ICICI Pru.

Human Error : -

Insurance is a type of industry that is fully 100% based on human feelings and their

actions. Mainly every advisor should have patience in large amounts, shouldnt have ego

problems, have motivation skills, have enough confidence to go through in the market,

have very good relationship skills and ability to maintain good society


76/79

QUESTIONNAIRE

Respondents Profile

NAME:

AGE:

CONTACT NUMBER: RESIDENCE:

OCCUPATION:

ADDRESS:

1. DO YOU THINK LIFE INSURANCE COVER IS IMPORTANT FOR YOU?

a) YES b) NO

2. HAVE YOU TAKEN ANY LIFE INSURANCE POLICY?

a) YES b) NO

IF YES THEN WHAT AMOUNT?

3. DO YOU THINK THE POLICY YOU HAVE TAKEN IS ENOUGH TO COVER

YOUR LIFE?

a) YES b) NO

4. DO YOU HAVE VEHICAL (TWO WHEELER OR FOUR WHEELER) IS IT

INSURED?

a) YES b) NO

5.WHAT ARE YOUR FUTURE GOALS?

a) MONEY b) GOING ABROAD c) CHILD EDUCATION d) HOUSEe) CAR


77/79

SOME IMPORTANT INFORMATION ABOUT FOR AGENT

6. HAVE YOU HEARD ABOUT ICICI PRUDENTIAL COMPANY?

a) YES b) NO

7. WHICH INSURANCE INDUSTRY IS BEST IN INDIA?

a) ICICI PRULIFE b) LIC c) HDFC STANDARD d) BIRLA SUN LIFE

8.DO YOU HAVEB ANY FINANCIAL PRODUCT?

a) BANK A/C b) HOME LOAN c) INSURANCE d) CREDIT CARD

9.WHAT IT IS YOUR ANNUAL HOUSE HOLD INCOME?

a) 150000 b) 100000 c) 175000 d) MORE THAN 200000

10.HAVE YOU ANY EXPERIENCE IN INSURANCE INDUSTRY?

a) YES b) NO

11.WHAT IT IS YOUR MARITAL STATUS?

a) MARRIED b) UNMARRIED

12.ARE YOU GRADUATE?

a) YES b) NO

13.ARE YOU LIVING IN SAME CITY FOR MORE THAN 5 YEARS?

a) YES b) NO

14.AGE ABOVE 25?

a) YES b) NO

15.TELL ME ABOUT YOUR OCCUPATION:

a) STUDENT b) SELF EMPLOYED c) GOVT.SERVICE d) OTHER


78/79

agency development -icici pru

Documents