amar project1

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PROJECT REPORT

ON

Recruitment and selection procedure in

ICICI Prudential

SUBMITTED TO: - SUBMITTED BY:-

AmardeepkumarPGDM, AIMT Roll No:-AIMTDM1113115

PGDM (MARKETING & HR)

2011-13

A report submitted to

Accurate Institute of Management andTechnology

as a mandatory part ofPOST GRADUATE DOPLOMA IN MANAGEMENT


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PROJECT REPORT

ON

Recruitment and selection procedure in

ICICI Prudential

SUBMITTED TO: - SUBMITTED BY:-

AmardeepkumarPGDM, AIMT Roll No:-AIMTDM1113115

PGDM (MARKETING & HR)2011-2013

Signature of faculty

A t b itt d t


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as a mandatory part ofPOST GRADUATE DOPLOMA IN MANAGEMENT


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DECLARATION

I, Amardeep kumar , student of Post Graduate Diploma in Mangement from AIMT CollegeGreater Noida hereby declare that I have completed Dissertation on

Recruitment and selection procedure in ICICI Prudential Delhi NCR region .

.

I further declare that the information presented in this project is true and original to the bestof my knowledge.

Date: Amardeep kumar

Roll no AIMTDM1113115

Place: Gr. Noida PGDM 2011 TO 2013

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TABLE

OF

CONTENTS

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TABLE OF CONTENTSPg .No.

EXECUTIVE SUMMARY . 7

OBJECTIVE OF THE STUDY. 8

Overview of Insurance

Need of life of

Insurance. 11

Roles of

Insurance.13

Types of life

insurance 15

FINDINGS GENERAL

Insurance in India ... 18

Why Private Insurance?. 22

Intermediaries 23

Challenges Before Insurance Industry 26

Company Profile .... 28

ICICI Prudential Introduction. 31

Management 37

Distribution 38

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Recruiting life insurance advisors.. 40

Market survey on life insurance companies 45

Different plans offered by ICICI Prudential 57

Limitations ..

60

RECOMMENDATIONS & SUGGESTIONS 61

CONCLUSIONS 63

BIBLIOGRAPHY.. 65

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EXECUTIVE SUMMARY

Identifying different profiles of the people and giving them a business Opportunity to join

ICICI Prudential as an advisor/agent. (Detailed study on advisors/agent.)

A market survey was done on life insurance companies. Different questions regarding the

companies training programs for agents/advisor, top 5 USPS training centers etc were asked.

The areas covered up in this survey were east Delhi and Gzb. The report contains details of

different life insurance companies, which are in healthy competition with ICICI Prudential

life insurance.

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The report also throws a light on the following:

Working of the unit linked insurance plans.

SWOT analysis of the product.

Comparative study of the competition

Training centers

Commission structure

Current agent force

Different training programs for agents/advisors

Modes and ways through which they recruit agents

Top five USPs (unique selling proposition

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OBJECTIVE OF

THE STUDY

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OBJECTIVE OF THE STUDY

The project undertaken by me as a part of my PGDM is an effort made to study the recruitment

of advisors in ICICI PRUDENTIAL with special emphasis on unit linked products of the

company.

In this era of cut throat competition, any organization needs to select and retain the best talent.

People selected should have positive attitude, ability to inspire others and must be dynamic.

Research Methodology:

Primary data collected by personally visiting different people from different walks of life andgathering information about the leading insurance players for example LIC, Max New York Life

Insurance, Bajaj Alliance, Birla Sunlife, HDFC Stan life.

- Gathering information by visiting branch offices of different Companies.

- Recruiting agents- by making phone calls to people of different

Profile and giving them a business opportunity to join ICICI prudential as advisor/agent.

Data Collection:

Primary data collected through questionnaires.

My market 100

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Overview of Insurance

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Need for Life Insurance

Risks and uncertainties are part of life's great adventure -- accident, illness, theft, natural disaster

- they're all built into the workings of the Universe, waiting to happen.

Insurance then is man's answer to the vagaries of life. If you cannot beat man-made and natural

calamities, well, at least be prepared for them and their aftermath.

Insurance is a contract between two parties - the insurer (the insurance company) and the

insured (the person or entity seeking the cover) - wherein the insurer agrees to pay the insured

for financial losses arising out of any unforeseen events in return for a regular payment of

"premium".

These unforeseen events are defined as "risk" and that is why insurance is called a risk cover.

Hence, insurance is essentially the means to financially compensate for losses that life throws at

people - corporates and otherwise.

The principle of insurance works on the concept of a large number of people exposed to a similar

risk making a contribution to a common fund. Those who suffer losses due to the occurrence of

these events are compensated for them from this fund.

Who can buy a life insurance policy?

Any person above 18 years of age, who is eligible to enter into a valid contract can go for an

insurance policy. Subject to certain conditions, a policy can be taken on the life of a spouse or

children

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MAJOR PLAYERS OF LIFE INSURANCE IN INDIA

1. Life Insurance Corporation of India

2. ICICI prudential Life Insurance

3. HDFC Standard Life Insurance

4. Max New York Life Insurance

5. Birla Sun Life Insurance

6. Om Kotak Mahindra Life Insurance

7. Reliance Life Insurance

8. Bajaj Allianz Life Insurance

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ROLE OF LIFE INSURANCE

Life Insurance As An Investment:-

Insurance is an attractive option for investment. While most people recognize the risk hedging

and tax saving potential of insurance, many are not aware of its advantages as an investment

option as well. Insurance products yield more compared to regular investment options, and this is

besides the added incentives offered by insurers.

You cannot compare an insurance product with other investment schemes for the simple reasonthat it offers financial protection from risks, something that is missing in non-insurance products.

In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before

comparing with other schemes, you must accept that a part of the total amount invested in life

insurance goes towards providing for the risk cover, while the rest is used for savings.

In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the

term. In other words, if you take a life insurance policy for 20 years and survive the term, the

amount invested as premium in the policy will come back to you with added returns. In the

unfortunate event of death within the tenure of the policy, the family of the deceased will receive

the sum assured.

Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF, your

money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the access to your

funds will be limited. One can withdraw 50 per cent of the initial deposit only after 4 years.

The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-12

lakh (depending upon the plan, age and medical condition of the life insured, etc) and thisamount can become immediately available to the nominee of the policyholder on death. Thus

insurance is a unique investment avenue that delivers sound returns in addition to protection.

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Is life insurance a saving instrument?

Life insurance is mainly considered as a saving instrument rather than an investment avenue as it

promotes compulsory savings besides reducing tax burden on the policyholder and protect the

family of the policyholder in the event of unforeseen happening. It is the only saving instrument,

which covers the life risk besides giving tax concession both at entry (premium paid) and at exit

points. The section 10 (D) of the income tax act totally exempts payment of tax on any amount

received as bonus against life insurance polices .

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Types of Life Insurance Policies

There are four broad types of life insurance policies to choose from:

Term Insurance

Whole Life Policy

Most of the products offered by Indian life insurers are developed and structured around these

"basic" policies and are usually an extension or a combination of these policies. So, what are

these policies and how do they differ from each other?

Term Insurance Policy

A term insurance plan is a pure risk cover for a specified period of time. What this means is

that the sum assured is payable only if the policyholder dies within the policy term. For

instance, if a person buys a Rs 2 lakh policy for 15 years, his family is entitled to the money

if he dies within that 15-year period.

What if he survives the 15-year period? Well, then he is not entitled to any payment; the

insurance company keeps the entire premium paid during the 15-year period.

So, there is no element of savings or investment in such a policy. It is a 100 per cent risk

cover. It simply means that a person pays a certain premium to protect his family against his

sudden death. He forfeits the amount if he outlives the period of the policy. This explains

why the Term Insurance Policy comes at the lowest cost.

Term Insurance variants:

Given the limitations mentioned above, the term life insurance policy has been enhanced to

Convertible Term Assurance and Premium Back Term Assurance policies

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Convertible Term Assurance Policy

A term assurance policy allows the insured to convert the policy into an endowment or a

whole life policy two years before the end of the policy term.

This plan is ideal for people who are not able to afford permanent insurance policies (like

endowment and whole life) when they have just started their careers.

Premium Back Term Insurance Plan

This is a term insurance policy in which insurer will pay back the premium (excluding

accident premium) if the insured survives the policy term.

In case of death, the sum assured would be fully payable.

Anticipated Endowment Policy

These policies are structured to provide sums required as anticipated expenses (marriage,

education, etc) over a stipulated period of time. With inflation becoming a big issue,

companies have realized that sometimes the money value of the policy is eroded. That is why

with-profit policies are also being introduced to offset some of the losses incurred on account

of inflation.

A portion of the sum assured is payable at regular intervals. On survival the remainder of the

sum assured is payable.

In case of death, the full sum assured is payable to the insured.

The premium is payable for a particular period of time.

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FINDINGS GENERAL

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INSURANCE IN INDIA

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

nationalization and back to a liberalized market again. Tracing the developments in the Indian

insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

A brief history of the Insurance sector

The business of life insurance in India in its existing form started in India in the year 1818 with

the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life

insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of

protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central

government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a

capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton

Insurance Company Ltd., the first general insurance company established in the year 1850 in

Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

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1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of

general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of

conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins

and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general

insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and

grouped into four companies viz. the National Insurance Company Ltd., the New India

Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance

Company Ltd. GIC incorporated as a company.

Insurance Sector Reforms

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N.

Malhotra, was formed to evaluate the Indian insurance industry and recommend its future

direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated inthe financial sector. The reforms were aimed at creating a more efficient and competitive

financial system suitable for the requirements of the economy keeping in mind the structural

changes currently underway and recognizing that insurance is an important part of the overall

financial system where it was necessary to address the need for similar reforms

In 1994, the committee submitted the report and some of the key recommendations included:

i) Structure

Government stake in the insurance Companies to be brought down to 50%.

Government should take over the holdings of GIC and its subsidiaries so that these

subsidiaries can act as independent corporations.

All the insurance companies should be given greater freedom to operate.

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ii) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter

the industry.

No Company should deal in both Life and General Insurance through a single entity.

Foreign companies may be allowed to enter the industry in collaboration with the

domestic companies.

Postal Life Insurance should be allowed to operate in the rural market.

Only one State Level Life Insurance Company should be allowed to operate in each state.

iii) Regulatory Body

The Insurance Act should be changed

An Insurance Regulatory body should be set up

Controller of Insurance (Currently a part from the Finance Ministry) should be made

independent

iv) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from

75% to 50%.

GIC and its subsidiaries are not to hold more than 5% in any company (There current

holdings to be brought down to this level over a period of time).

v) Customer Service

LIC should pay interest on delays in payments beyond 30 days.

Insurance companies must be encouraged to set up unit linked pension plans.

Computerization of operations and updating of technology to be carried out in the

insurance industry.

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The committee emphasized that in order to improve the customer services and increase the

coverage of the insurance industry should be opened up to competition. But at the same time, the

committee felt the need to exercise caution as any failure on the part of new players could ruinthe public confidence in the industry.

Hence, it was decided to allow competition in a limited way by stipulating the minimum capital

requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to

insurance companies in order to improve their performance and enable them to act as

independent companies with economic motives. For this purpose, it had proposed setting up an

independent regulatory body.

Why private insurance?

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All the private companies have a lock in period of 10 yrs hence no disinvestments

possible.

Minimum net worth of 500 Cr required for acquiring license with a minimum paid up

capital of 100 Cr in their insurance venture.

Commitment to increase the paid up capital manifold in next five years.

Re insurance for all its policies worth more than 5 lakhs. Reinsurance partners, best and

the largest in the world general cologne and Swiss reinsurance.

Audit of accounts by at least 2 independent approved auditors each year.

Products and pricing are cleared by IRDA, which looks into the financial visibility of the

product and the financial implication.

IRDA is now proposing a Pvt. Policy Protection fund.

Funds to be invested in only regulated and controlled areas with close to 80%being

pumped into only gilts thereby assuring safety of funds.

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Intermediaries

The IRDA is currently working on norms concerning brokers. In most developed markets,

insurance brokers are regulated in the following areas:

Registration.

Experience, training and qualification, and other restrictions on entry into the

profession.

Solvency requirements.

Professional indemnity or a minimum level of errors. There is also a central

fund to protect clients against broker malpractice.

In India, the practice of brokers acting as intermediaries does not exist except in the case of

reinsurance. Estimates by Ernst & Young show that intermediaries when introduced as a part of

the changes will have a market of between Rs 100 crore and Rs 150 crore to be exploited.

Expertise and Technology

With state monopoly the insurance industry is not subject to disruptive competitive moves or

developments. The strategies of the state insurers are driven more by government policy andcriteria, such as effectiveness and equity in implementing such policy, rather than by efficiency

or impact on the bottomline per se. Naturally, the education and training in the insurance sector

have been influenced by the strategic posture of these public sector insurance companies.

The increasing importance of knowledge in the Indian insurance industry is likely to make

employability a critical factor for retention of qualified managerial manpower in the future. To

create such a milieu, insurance companies need to have a critical mass of management graduates

and professionals (or equivalent) and a top management that encourages a knowledge-basedculture.

Reinsurance

The current thrust is to increase retentions. This is being significantly achieved with reduction in

ceded reinsurance premium overseas from US $ 250 million to US $ 150 million With reinsurers

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like Munich Re and Swiss Re to be licensed there a sea - change is anticipated in reinsurance

practice. Besides other reinsurers like Zurich, Allianz and

AIG are present. A view maybe formed for the possibility of transaction similar to the inter-bank

call money market in respect of risks written by non-life insurers.

Brokers can introduce changes in practice and which could include both coinsurance and

reinsurance placements.

There is likelihood of accelerated introduction of the new alternative risk techniques which

converge risk covers and replace at once insurance and its reinsurance. The market is set to

witness these unconventional changes at a pace permitted by change in local tax laws.

Health Awareness And Growth Of Life Insurance

For the liberalized general insurance industry, retail market is the area of growth. The prospect of

the health insurance market looks the brightest, particularly on account of low level of

penetrations in the area, points out an ICRA report.

According to the agency, in the health insurance market, growth will be a function of evolution

of health care business, and pricing will be the key to success (profitability), especially because

health insurance has been de-tariffed it has been brought outside the scope of tariff settingrecommendations of the Tariff Advisory Committee. But distribution in the remotest area and

service quality will be the key drivers of competitiveness. While the public sector players have a

better reach, private sector players will create a differential on the service platform. In the case of

corporate business, ICRA feels that it will be based on relationships. While most of the players

will have to pay more as a result of increase in the reinsurance rates post September 11 attacks,

reinsurance will be the key driver to the growth of the private non-life players, as most of them

have limited capitalization levels. Effectiveness of reinsurance arrangement will be an important

factor for the private players. In this regard, the rating agency feels that public sector players are

better placed as they have established relationships and reinsurance arrangements. Even in the

case of investment portfolio, the PSU players have healthy portfolios that give them additional

strength. The threats to general insurance companies profitability are the declining interest rate

regime and adverse asset liability position.

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The weaknesses of PSU players are poor service orientation, high operating overheads, limited

underwriting flexibility and poor systems and data collection abilities. While ICRA rated all the

PSU as AAA in terms of the claims paying ability with a short to medium term outlook, thetwo private insurance companies rated below this level by the agency did not accept the rating as

it was not up to their expectation. The private companies have been rated on financial and

operating strength of the promoter, strength of the joint venture agreement and attractiveness of

the venture to both parents and quality and terms of reinsurance agreement. The lower ratings

stemmed from the fragile nature of joint venture agreements, the uncertainty over the evolution

of the market and the short track record of these companies.

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Challenges Before The Industry

The new as well as the old insurers will have to face a number of challenges in the liberalized

market.

New Insurers-

The new insurers will have to invest a minimum capital of Rs. 100 crores. The normal gestation

period is of five years. The generation of profit normally starts in the sixth year. Hence the new

insurers will have to be ready for locking up their capital for at least 5 years before earning any

profits. Besides they will face problems of shortage of trained manpower for the insurance

industry. The setting up of various offices and distribution network is a time consuming process.

Further the new insurers will have to compete with the established insurance companies like LIC

and GIC which have a corporate image and market presence for several years.

Expectation of the consumers

Today LIC has more than 60 products and GIC has more than 180 products to offer in the

market. But most of them are outdated, as they are not suitable to the needs of the consumers.

Hence old as well as new insurers will have to offer innovative products to the consumers. The

consumers are particularly expecting good pension plans, health insurance, term insurance and

investment products like unit-linked insurance, from the life insurers. Similarly the consumers

expect innovative products from the general insurers for managing healthcare, property

insurance, accident insurance and other products related to the personal line of insurance.

The consumers also expect reduction in the premium of the insurance products as the mortality

rate in India has come down by three times in the last 50 years.

Distribution Channel: -

In the liberalized insurance market, there will be multiple distribution channels, which will

include agents, brokers, corporate intermediaries, bank branches, affinity groups and direct

marketing through telesales and Internet. Some channels will be cheaper than others. Hence there

will be competition among the channels. The new insurers will operate with the help of multiple

distribution channels but the existing insurers may be forced to operate only with the help of

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agents. Hence, intense competition will grow among the old and new insurers in the market to

win the consumers. This will pose a great challenge to the insurers in the liberalized insurance

market.

Consumer Education

Very soon the market will be flooded by a large number of products by a fairly large number of

insurers operating in the Indian market. Even with limited range of products offered by LIC and

GIC, the consumers are confused in the market. Their confusion will further increase in the face

of a large number of products in the market. The existing level of awareness of the consumers for

insurance products is very low, it is so because only 62% of the population of India is literate

and less than 10% well educated. Even the educated consumers are ignorant about the various

products of insurance. Hence it is necessary that all the insurers should undertake the extensive

plan for education of consumers. The consumer organizations and the media also can play very

important role in education of the consumers. This will result in expansion of the insurance

market and will also enable the needy consumer to purchase appropriate products.

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COMPANY PROFILE

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COMPANY PROFILE

ICICI and PRUDENTIAL came together in 1993 to provide mutual fund products in India and

today are the largest private sector mutual fund company in India. The two companies bring

together two of the strongest financial service brands in Asia known for their professionalism,

excellent quality of service and long term commitment to their customers. Riding on the success

of this relationship; the two companies joined hands once more in 2000 to form ICICI

PRUDENTIAL life insurance with a commitment to provide leading-edge life insurance

solutions.

ICICI Bank:

ICICI Bank (NYSE:IBN) is India''s second largest bank and largest private sector bank with over

50 years of financial experience and with assets of Rs. 1812.27 billion as on 30th June, 2005.

ICICI Bank offers a wide range of banking products and financial services to corporate and retail

customers through a variety of delivery channels and through its specialised subsidiaries and

affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset

management. ICICI Bank is a leading player in the retail banking market and has over 13 million

retail customer accounts. The Bank has a network of over 570 branches and extension counters,

and 2,000 ATMs.

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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, policyholder and unit holders worldwide. As of NOV 30, 2012, 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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ICICIPrudential Life Insurance

Company Limited

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The revolution began in 2000Prior to deregulation in 2000, market was a public monopoly

with limited focus on customer needs

Public monopoly 2,000 offices Over 800,000 agents

Distribution through tied agents only

Push sales approach purely on a tax savings platform

Limited focus on customer needs

Traditional style product offering Endowment and money back plans Inflexible and inadequate products Pensions Small part of product offer

Our approach : A new age life insurance model

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Distribution

Rapid expansion of agencyMulti-channel platform

Operations

Best in classCustomer centric

Brand Creation of a superbrand

ProductComprehensive portfolioInnovative and flexible

EntryJoint venture entry platformStrong, respected partners

People Talent from diverse industries


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Our approach : Our joint strengths

VisionTo be the dominant life & Pensions player built on trust by world class people & service ValuesCustomer First/Boundaryless/Ownership/Passion/Integrity

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Reputation

Insuranceexpertise

Product

Distribution

Operations

Brand strength

Infrastructure

Customerbase

Local knowledge

Market Innovators


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India: Overview

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Country

Population 1,055mInsurance penetration2.7%

Life insurance market

Characteristics

Pre-2000 : Public monopolyMarket deregulated in 2000

ICICI entered in 2000 through jointventure with Prudential

Top 5 players

Life Insurance Corp. of India (LIC)ICICI PrudentialBirla Sun LifeBajaj AllianzHDFC Standard

In-force premiums INR 530bFY05* new premiums INR 156bTotal premiums INR 686b


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Retail Market Share : Private Player

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Retail Market Share 2011-12

ICICI - Pru34.2%

HDFC Std.life

9.1%Birla Sunlife

12.9%

Tata AIG6.3%

Bajaj Allianz11.3%

Max Newyork5.5%

Kotak Life4.9%

Aviva

4.5%

ING Vysya6.7%

SBI Life2.7%

AMP Sanmar0.7%

Metlife

1.2%


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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 international financial services group

headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector

insurance companies to begin operations in December 2006 after receiving approval from

Insurance Regulatory Development Authority(IRDA).

ICICI Prudential's equity base stands at Rs. 11.85 billion with ICICI Bank and Prudential plc

holding 74% and 26% stake respectively. In the financial year ended March 31, 2011, the

company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780

crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors;

as well as 7 bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI

Prudential has retained its position as the No. 1 private life insurer in the country, with a wide

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

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MANAGEMENT

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DISTRIBUTION

ICICI Prudential has one of the largest distribution networks amongst private life insurers in

India, having commenced operations in over 116 cities and towns in India, stretching from Bhuj

in the west to Guwahati in the east, and Amritsar in the north to Trivandrum in the south.

The company has 8 bancassurance tie-ups, having agreements with ICICI Bank, Bank of India,

Federal Bank, South Indian Bank, Ernakulam Bank, Lord Krishna Bank and some co-operative

banks, as well as about 290 corporate agents and brokers. It has also tied up with NGOs, MFIs

and corporates for the distribution of rural policies and organisations like Dhan for distribution of

Salaam Zindagi, a policy for the socially and economically underprivileged sections of society.ICICI Prudential has recruited and trained more than 65,000 insurance advisors to interface with

and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide

superior quality of service to customers.

OPERATIONS OF ICICI

The company is now operational in, Pune, Mumbai, New Delhi Chennai, Kolkatta, Bangalore,

Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut, Mangalore and

Ludhiana.

ICICI Prudential Life Insurance Co. Ltd.

VISION

To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class

people and service.

This we hope to achieve by:

Understanding the needs ofcustomers and offering them superior products and service

Leveraging technology to service customers quickly, efficiently and conveniently

Developing and implementing superiorrisk management and investment strategies to

offer sustainable and stable returns to our policyholders

Providing an enabling environment to foster growth and learning for ouremployees

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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, Boundaryless, Ownership and Passion. Each of the values describe

what the company stands for, the qualities of our people and the way we work.

We do believe that we are on the threshold of an exciting new opportunity, where we can play a

significant role in redefining and reshaping the sector. Given the quality of our parentage and the

commitment of our team, there are no limits to our growth.

Achievements so far!

- Leading Private Life Insurance company.

- Maximum number of policies sold

- Largest premium income

- Biggest pension player

- Strong brand recognition.

- State-of-the-art support services.

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RECRUITING LIFE INSURANCE ADVISORS/AGENTS.

What is an insurance agent?

An agent is the representative of an insurance company who sells different policies or product to

its clients.

Another term used for insurance agents is advisors; this term was introduced by ICICI Prudential

life insurance company Ltd.

Today in life insurance companies advisors are known to

be the backbone of the whole system. Advisors/agents do not work on monthly payroll basis;

they receive a certain commission on the policies they sell to the clients.The eligibility required to become an advisor/agent is that he/she should be 12 th pass to operate in

urban area and 10th pass for rural areas. Before a person becomes an advisor/agent he/she has to

undergo 100hrs training according to IRDA norms which is compulsory.

70-75% of profits gained in life insurance business is through advisors/agents.

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Advisor Role.

To provide ongoing financial advice for his/her clients:

- Identify future clients

- Making appointments

- Conduct financial review meetings with prospects/clients.

- Close sales

- Get referrals

- Provide service to clients.

- Follows internal sales and reporting system.

Working Environment of an advisor/agent.

- To be a part of world-class sales team.

- Work from your own office or residence.

- Work full time or part time(an advisor can work part time by undergoing only 50hrs of

training and 100hrs training is for full time advisors.)

- Earn Commission, Bonus & Incentives.

- No upper limits on earnings.

- Flexible career.

Opportunities for an Advisor/agent.

- No startup capital required.

- Flexible working environment.

- Be your own boss.

- Unlimited earning potential.

- To be a part of a world-class team.

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Commission Structure.

Different products will have different commission structures.

For example: Single Premium products will have a commission of 2%.

- Renewal Commission is paid at the following rates:

2nd yr:7.5% 3rd yr:7.5% 4th yr:5% 5th yr:5% onwards

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Payments & benefits-commission Structure for advisors/agents.

Year 1 Year 2 Year 3

Number of Policies Sold 50 75 100

Average Premium Rs. 10000 10000 10000

Total Premium Earned Rs. 500000 750000 1000000

Commission @ 25% 125000 187500 250000

Bonus @ 40% of Commission 50000 75000 100000

Earnings from New Business Rs. 175000 262500 350000

Commission on Renewal [email protected]% 37500 56250For year 2, 3, and 5% after that 37500

Earnings from renewal business Rs. 37500 93750

Total Earnings Rs. 175000 300000 443750

Most preferred profiles to recruit as Advisors/agents.

- CAS

- Doctors

- Lawyers

- Retired Defence officers

- Government employees

- Bankers and brokers.

- Agents of other life insurance companies.

- Executives working in call centers.

- House wives.

People from these profiles usually have a good network of communication and do not face much

problem in finding clients and selling different products.

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Thats why almost every insurance company try to recruit people as advisor/agent belonging to

these profiles.

How does an advisor/agent work?

- Firstly an advisor/agent has to make a list of 100 people that he/she knows

- Then the Advisor/agent makes a call to these clients and tries to fix an appointment.

- When an appointment is fixed the advisor/agent meets the customer & tries to sell the product

- After that the advisor/agent asks for the reference of maximum number of people from the

client.

- The reference is asked in context to make future calls and the whole procedure is repeatedagain.

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Market survey on major life insurance companies.

A market survey was done on life insurance companies. Different questions regarding the

companies training programs for agents/advisor, top 5 usp's, training centers etc were asked.

The areas covered up in this survey were Ghaziabad and central EastDelhi. The report

contains details of different life insurance companies which are in healthy competition with

ICICI Prudential life insurance.

The list of companies covered up in this survey:

1. LIFE INSURANCE CORPORATION(LIC)2. AVIVA

3. HDFC-Standard life

4. MAX NEW YORK LIFE INSURANCE

5. BIRLA SUNLIFE

6. TATA-AIG

Life Insurance Corporation of India (LIC)

-The Life Insurance Corporation (LIC) was established about 44 years ago with a view to

provide an insurance cover against various risks in life. A monolith then, the corporation,

enjoyed a monopoly status and became synonymous with life insurance.

-Its main asset is its staff strength of 1.24 lakh employees and 2,048 branches and over six lakh

agency force.

-At the industry level, along with the Government and the GIC, it has helped establish the

National Insurance Academy. It presently transacts individual life insurance businesses, group

insurance businesses, social security schemes and pensions, grants housing loans through its

subsidiary; and markets savings and investment products through its mutual fund. It pays off

about Rs 6,000 crore annually to 5.6 million policyholders.

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Training activities for agents/advisors.

As per IRDA,100hrs training is compulsory for 17 days.

Only classroom training are available.

Only full-time training is given.

(ICICIPrudential advantage:- Part time option available.)


Depends on the plan

Features:

The plan provides joint life last survivor survival benefits to take care of education expenses of

children. Recurring monthly survival benefits on increasing scale are expected to meet fees and

other expenses of education. Lump sum survival benefit can be utilized towards expenses for

admission to professional course. Lump sum maturity amount is provided to meet the profession/

business setting up expenses.

The plan is a single premium without profit assurance plan with provision for guaranteed and

loyalty additions. The valuable insurance cover on the life of the parent-proposer in case of

unfortunate event will enable the child to carry on the education without any financial

interruption.

Age of the named child Survival benefit p.a. payable monthly ina year

Upto 9 years Rs.3000 ( 12 %)10 to 17 years Rs.6000 ( 24 %)18 to 23 Years Rs.12000 ( 48 %)

The survival benefit as a percentage of sum assured is shown in brackets

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Death Benefits:On death of the parent - proposer during the policy term, a sum equivalent to the

basic sum assured is payable. Risk on the life of the named child is not covered.

Policy Parameters:

Min Max

Entry Age 20 (0 for child) 70 (12 for child)Sum Assured 25000 1000000Term Not Applicable Not Applicable

Mode of Payment Max Maturity Age Policy loan available

Single Premium 70 years No

Different training programs for agents.

- Skills upgradation: How to give presentations and company introduction.

- Knowing your customers: Matching customer request with products.

Modes & ways through which the company recruit agents.

- Through development officers.

- Through corporate agencies(Bankers and Brokers).

- Carrier agent branch (i) rural carrier agent

(ii) urban carrier agent.

Current agent force

10000 agents in GZB.

Top 5 USPs (Unique Selling Proposition)

- TRUST(since 1956),ORG marks survey has rated LIC most trusted branch in life

insurance

- Having a vast network of 2050 branches and nearly 10 lakh agents.

- Best claim performance in the world by Depth and Maturity claim.- A government undertaken company ensuring safe and corruption free insurance.

- Variety of plans available to match the customer' s needs.

AVIVA.

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-Aviva plc was launched in 1st July 2002 as a new name

for CGNU plc. A world leader in financial services, the

group has 300-year pedigree.- Aviva brings together 50 trading names and enables the group to harness the benefits of its size

and international capabilities as the seventh largest insurer in the world.

- Its main activities are long-term savings, fund management and general insurance.

- The group has 56,000 employees serving 30 million

customers worldwide.


- As per IRDA,100hrs training is compulsory

- Both online & classroom training are available.

- In the 100 hrs training the advisor/agent is given

knowledge about insurance & company.

- Both part time & full time option available.

Training centers.

- NIS: South extension & Patel nagar.

- In-house training center at C.P branch.

(ICICIPrudential Advantage:- More training centers available at different locations.)


Different policies are available

- For single time investment

Minimum- 2%

Maximum-35%

- For insurance policies

Minimum -5%

Maximum - 35%


- Knowing your customers: matching client request with product.

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- Product Training: giving knowledge about the different products of the company.

- Selling skills: How to make the client more satisfied.

Modes & ways through which the company recruit agents.- Newspaper adds.

- Reference.

- Personal contacts.

- Walk-ins*

*Through interviews and written exams.

Current agent force

1500-2000 in Gzb


- Unique way of selling(financial health check)taking

information from the customer, based on that report

advise is given for future investments or savings.

- Showing the future to the customer so that it can decide

the type of investment.

- Seventh largest insurer in the world.

- Provides need based products of different kinds like

non-medical products which are investment oriented.

- Number one asset management company which brings

together 50 trading names.

HDFC - Standard Life

- HDFC Standard Life Insurance Company is a joint venture between India's largest housing

finance provider, HDFC and Europe's largest mutual life assurance company

- The Standard Life Assurance Company (U. K).

- Standard Life, UK, founded in 1825, has been at the forefront of the UK insurance industry

for 175 years by combining sound financial judgement with integrity and reliability.

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- It is the Largest Mutual Life company in Europe and has total assets of Rs. 5,50,000

crore.


- As per IRDA guidelines,100hrs training is compulsory.

- Both online & classroom training are available.

- Training is compulsory with both part time & full time

options.

- A clear exam is conducted by IRDA, the minimum

qualification required is-

12th pass for urban areas

10th pass for rural areas.

Training centers.

- NIS: Patel nagar, south extension(Delhi).

- - School net.



Depends on the product, like on savings

20-40% Ist year premium.

- on investment 2%

- on pension 7.5%


- IRDA training:100 hrs training which is compulsory.

- Product training: Making the agents well aware of the company's products.

- Communication training: How to communicate more effectively with your customers.

- Behavioral training: How to understand you customers more properly.

- Presentation skills


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- Direct contacts.

- Newspaper adds.

- Consultants.- Member of the company can introduce a new member.


- Ist private sector life insurance company to be granted a license.

- Declared bonus every year from the day of incorporation(only company.)

- Provides fast service to the customers in terms of claim.

- Best insurer according to Outlook.

- Well supported by foreign partner Standard Life,U.K which was recently voted ' company of

the decade' in U.K by the Independent Brokers called IFAs.

Max Newyork Life.

Max India:

- Max India Limited is a multi-business corporation that has business interests in telecom

services, bulk pharmaceuticals, electronic components and specialty products. it is also the

service-oriented businesses of healthcare, life insurance and information technology.

New York Life:

- New York Life has grown to be a Fortune 100 company and an expert in life insurance. It was

the first insurance company to offer cash dividends to policy owners.

- In 1894, New York Life pioneered the then unheard-of concept of insuring women at the same

rate as men. Thereafter, it continued to introduce a series of firsts - a disability benefit clause in

1920, unemployment insurance in 1992, and complete customer care on the Web in 1998.- Today New York Life has over US billion in assets under management and over 30,000 agents

and employees worldwide.

- The October 2000 Fortune Survey named New York Life amongst the top three most admired

life and health insurance companies worldwide.

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- With over 3 million policy holders, New York Life is a leading provider of insurance in a host

of countries worldwide.

Training activities for agents/advisors.- As per IRDA,100hrs training is compulsory.

- Only classroom training is available.

- Only fulltime training is given.


Training centers.

Max newyork life has in-house training centers all over Delhi.

Himalaya house -C.P

Seactor-18, Noida.


Minimum - 2%

Maximum - 35%.

Varies from product to product- 25%,7.5%,10%&15%.


- Module training: giving details about the product.

- Ethical selling: different techniques of selling.

- Motivational tools: How to make the client more satisfied or to sell better.

Current agent force

2000-3000 in Delhi.


- Training, which is compulsory for every agent/advisor so that they work according to the

company's working style.

- Emphasizes on whole life products.

- Flexibility of the product to adapt to customers changing needs in future.

- Believes in healthy competition with other life insurance companies.

- Agent is the power.

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Tata AIG

-The Tata AIG joint venture is a tie up between the established Tata Group and American

International Group Inc.

-The Tata Group is one of the largest and most respected industrial houses in the country.

-AIG is a leading US based insurance and financial services company with a presence in over

130 countries and jurisdictions around the world

Training activities for agents/advisors. As per IRDA,100hrs training is compulsory for 17 days.

Both online & classroom training are available.

- Then there is six days product training in which an agent is made familiar with different

products of the company.

Only full-time training is given.


Training centers.

Through NIS, Tata AIG has NIS training centers in Delhi for IRDA training.

Berjaya house(New friends Colony.)

Pitampura

G.K-1

Noida Sector-4.



40% on 1st year premium.

7-5% on next 6 years.


Who are we and what we do?

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What does your customer actually need?

How do you create & protect wealth for your client?

How can you meet 5 prospects daily?


Advertisement (Newspaper adds)

- Contacts. (When advisor becomes consultant he/she has its

own team to use contacts.)

Current agent force

6000 agents all over India.


AIG stands second in insurance, in the world.

Tata gives a compounding bonus to policy holders.

Highest commission structure of 40%.

Tata itself is a known brand.

A good carrier graph.

*Advisors become consultants in a short span of time.

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Birla Sun Life Insurance Company Limited

- Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life

Financial of Canada to enter the Indian insurance sector.

- The Aditya Birla Group, a multinational conglomerate has over 75 business units in India and

overseas with operations in Canada, USA, UK, Thailand, Indonesia, Philippines, Malaysia and

Egypt to name a few.

Foreign Partner:

- Sun Life Assurance, Sun Life Financials primary insurance business, has excellent ratings with

the world's top rating agencies.

- With assets under management as on September 30, 2000 totaling more than CDN billion, it

ranks amongst the largest international financial services organizations in the world.


- As per IRDA,100hrs training is compulsory.

-Both online & classroom training are available:

classroom training is 100hrs(13 days)or 50 hrs(7 days)- C.A, Dr, Advocate & MBA.

- Online training is for

100hrs- general

50hrs- CA/Dr/Advocate/MBA.

25hrs(3 days)- Renewal.

- Both part time & full time training option is available.

Training centers.

- Ritu Nanda institute of training(G.K)

- Amity Business school.

- NIS(8 Balagi estate, Kalkaji)

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- School net India ltd.


- Product training: 3 days training in which agents are made familiar with the products of thecompany.

- Refresher training

- Direct sales training:

indirect channel : in this an agent - calls the client

- fixes an appointment.

- then meets the client.


- Interviews & written exam.

- Newspaper adds.

Current agent force

750 agents in Delhi.


- Trusted name, as a part of Aditya Birla group.

- Indias second largest business house

- Multinational company which is growing rapidly.

- Having second position in private life insurance.

- Offers different plans with ethical and good claim settlement.

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DIFFERENT PLANS OFFERED BY ICICI PRUDENTIAL

As a responsible parent, you will always strive to ensure a hassle-free, successful life for your

child. However, life is full of uncertainties and even the best-laid plans can go wrong. Here's

how you can give your child a 100% safe and assured tomorrow, whatever the uncertainties.

SmartKid is designed to provide flexibility and safeguard your child's future education and

lifestyle, taking all possibilities into account.

1

.

SmartKid regular premium

2

.

SmartKid unit-linked regular premium

3.

SmartKid unit-linked single premium

All these plans offer you:

Guaranteed Financial Benefits: Regular payments at critical stages in your child's life,

like Board examinations, Graduation and Post-graduation.

Total peace of mind

Sum Assured is paid immediately: Ensures that your loved ones stay financially secure, even in

your absence.

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All future premiums are waived: Ensuring that your family is not financially burdened in your

absence.

Policy benefits continue:The educational benefits of the policy continue, ensuring that your

child can realize his or her dreams without any hassles.

Development Allowance: Smart Kid guarantees regular income to secure your child's

educational career and also ensures his or her all-round development, for a nominal additional

amount. The Income Benefit Rider takes care of this through an annual payment of 10% of the

sum assured, to your child, till the maturity of the policy, in the unfortunate event of the death of

the parent.

ICICI Pru Group Solutions AdvantageAn integrated basket of employee benefit solutions that offer incomparable flexible benefits.Sound investment management that focuses on safety, stability and profitability of the portfolio.Personalised financial planning for your employee that takes care of his/her changing financial

needs at every stage of life.Quality service initiatives and transparency across all operations, promising superlative

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operational efficiency.

Group Term Assurance : Helps provide affordable cover to members of a group.

Group Gratuity Plan : Helps employers fund their statutory gratuity obligation in a flexible and

hassle-free manner.

Group Superannuation Plan : A flexible scheme (defined benefit and defined contribution) to

provide a retirement kitty for each member of the group.

LIMITATIONS OF THE SURVEY

- Risk of being identified as a summer trainee( icici prudential) while visiting different life

insurance companies.

- Time

- Climatic conditions.

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RECOMMENDATIONS

AND

SUGGESTIONS

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RECOMMENDATIONS AND SUGGESTIONS

Basic Understanding

There are some very basic understandings in this industry, insurance industry, that I have always

kept in mind throughout my recommendations and which I feel is utmost essential to keep in

mind before formulating any kind of strategies by the company. These understandings are:

An insurance policy is a product which needs a lot of convincing before it can be sold because

what I analyzed in this internship that there are very few people who have a basic knowledge

about life insurance especially the lower middle class society. While selling these policies there

are many different kinds of customers that an advisor/agent faces:

- Customer1: He/she knows about insurance and is interested in being insured

- Customer2: He/she does not have any interment knowledge a

insurance and the advisor/agent has to explain everything and

in the end the advisor/agent gets nothing out of it.

- Customer3: He/she goes through the briefs but takes a lot of time to be convinced.

Promotions.

A customer usually gets convinced through following ways:

- By first knowing what your customer needs.

- Then telling him what he/she can benefit out of it.

- Giving him/her time to think.

Insurance is all a game of showing the future to your customers and giving them a solution to

their future problems, because no body wants to get insured but everyone needs it.

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CONCLUSION

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CONCLUSION

ICICI Prudential life insurance company is the number one private life insurance company in

India with a market share of 42.2%. Birla sunlife stands second in private life insurance

companies with a market share of 18.5%. Looking in private sector ICICI Prudential has been

the dominant player because the amount of gap between the market share is huge.

But if we analyze in all sectors of life insurance then LIC has been the most dominant player

since 1956. The impact of LIC has been so much in both rural and urban areas that people use

the term LIC instead of life insurance.

ICICI prudential faces a big challenge infront of them to stay in the race with Life insurancecorporation(LIC) because with the entrance of other companies like Max newyork , Tata-AIG &

Aviva the competition has become more tough.

But insurance is also growing day by day, India has a population of 1.2 billion and only 33.3%

population is insured. This means insurance is an upcoming industry but ICICI prudential has to

work a lot on their strategies to overcome LIC.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

PASSTRAK Life Insurance License Exam Manual

by Dearborn Financial Service

The Life Insurance Game

by Ronald Kessler

All about life insurance agents

by Vaswar Das Gupta

Laws of Insurance

by Kay Strang

WEBSITES

www.iciciprulife.com

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http://g/exec/obidos/search-handle-url/index=books&field-author=Dearborn%20Financial%20Service/104-1168900-1707107http://www.iciciprulife.com/http://g/exec/obidos/search-handle-url/index=books&field-author=Dearborn%20Financial%20Service/104-1168900-1707107http://www.iciciprulife.com/


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