arif khan icici project

8/14/2019 Arif Khan Icici Project

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Declaration

I RAHUL PRATAP SINGH., hereby declare that the

project work entitled Marketing Survey and Channel

Development is an authentically work carried out ofICICI

Prudential Life Insurance Company Ltd. New Delhi under the

guidance of. Miss.Sunita khachroofor the partial fulfillment of the

award of the Master of Business Administration and this work

has not been submitted before.

Purpose anywhere else expected to SRM-IST, Modinagar.

Affiliated to SRM University Chennai.

MD.

Arif khan

Reg No.-35084061

M.B.A III Sem

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ACKNOWLEDGMENT

It gives me immense pleasure to introduce my project work entitled

Marketing Survey and Channel Development ofICICI Prudential Life

Insurance Company Ltd. New Delhi.

I sincerely thank my esteemed guide Ms. SARITA SINGH (Sr. AGENCY

MANAGER) for his valuable guidance and co-operation rendered to me

throughout the project report. It would not have been possible for me to

complete this project without there meticulous guidance and suggestions.

I give my thanks to Mrs.SUNITA KHACHRU (PROJECT GUIDE) and

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DR. N.K. SINHA (HEAD OF DEPARTMENT,) for their valuable contribution, co-

operation and guidance from time to time for completion of this project.

Last but not the least I would like to thank my parents, friends, Colleagues and

the staff ofICICI Prudential Life Insurance Company Ltd. New Delhi,

Who directly or indirectly help me during the course of project without which

project would have been a Herculean task.

Ari khan MBA

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PREFACE

People are a companys most important assets. They can make or break the fortunes of a

business. In todays highly competitive business environment placing the right people in the

right position is very critical for the success of any organization.

The recruitment and selection decision is of prime importance as it is the vehicle for obtaining

the best possible person-to-job fit that will, contribute significantly towards the Company's

effectiveness. It is also becoming increasingly important, as the Company evolves and

changes, that new recruits show a willingness to learn, adaptability and ability to work as part

of a team. The Recruitment & Selection procedure ensures that these criteria are addressed

In this project I have studied Recruitment and Selection process of ICICI Prudential Life

Insurance and attempted to provide some ways so as to make recruitment more effective and to

reduce the cost of hiring an employee.

I am privileged to be one of the students who got an opportunity to do my training with ICICIPrudential Life Insurance. My involvement in the project has been very challenging and has

provided me a platform to leverage my potential in the most constructive way.

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ICICI Prudential Life insurance is one of India's leading financial institutions offering

complete financial solutions that encompass every sphere of life. In a short span of time,ICICI

has set an example by having a steady and confident journey to growth and success.

During the training period I have studied deeply the process of hiring in ICICI Prudential Life

insurance and did a SWOT analysis of ICICI Prudential Life Insurance to find out the existing

shortcomings and potential threats and thereby recommended suggestions.

This project however is an attempt to share as best as possible my experience in corporate

world with all my colleagues and my faculty.

I would be delighted to receive readers comments which maybe valuable lessons for my

future projects.

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EXECUTIVE SUMMARY

In todays rapidly changing business environment, organizations have to respond quickly to

requirements for people. The Financial market has been witnessing growth which is manifold

for last few years. Many private players have entered the economy thereby increasing the level

of competition. In the competitive scenario it has become a challenge for each company to

adopt practices that would help the organization stand out in the market. The competitiveness

of a company of an organization is measured through the quality of products and services

offered to customers that are unique from others. Thus the best services offered to the

consumers are result of the genius brains working behind them. Human Resource in this regard

has become an important function in any organization. All practices of marketing and finances

can be easily emulated but the capability, the skills and talent of a person cannot be emulated.

Hence, it is important to have a well-defined recruitment policy in place, which can be

executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate

or rejecting the right candidate could turn out to be costly mistakes for the organization.

Therefore a recruitment practice in an organization must be effective and efficient in attracting

the best manpower.

Coverage The extent and limitation

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With largest number of life insurance policies in force in the world, insurance happens

to be a mega opportunity in India. Its business is growing at 15-20% annually and presently is

of the order of Rs. 450m. Together with banking sector it adds about 7% to the GDP.

Like in the case of BPOs, Insurance sector too faces the problem of attrition. Thus,

recruitment is an ongoing process carried through out the year. The project is based on the

study of recruitment process. The various recommendations suggested have been the result of

the study. The idea is to generate ways of dealing with high attrition and making hiring process

manageable and efficient.

Data Used

There were mainly two sources of data collection

Primary data:

Survey method

Personal interview with candidates

In depth conversation with the placement agency

Secondary data:

Study of recruitment policy

Websites

Published articles

Research methodology used

Study of recruitment and selection at ICICI Prudential Life Insurance by themanual provided by the HR department;

Web sites

Journals

Magazines

Books

Huge investment of time;

Huge recruitment cost;7


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To pursue these, I would be going through the recruitment policies of the company. By active

participation in the recruitment process, the areas where improvement can be bought about can

be identified.

Thus the whole research would be done under the guidance of external guide. It will also

involve recruitment and selection processes, reading the material provide internally by the

organization, information from the new employees.

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INTRODUCTION

6.1 CONCEPT SELLING

Basically concept selling as same as any tangible product, but only different is that product

is service and not tangible and we have to sell the concept. IN ICICI Prudential, concept

selling is popularizing the concept of Financial Advisor Company. Concept selling is

making the people aware of benefits they get from the company while working for it and

also making them known about the products i.e. Insurance Plans in the portfolio of the

company, the commission structures etc.

6.1.1 Reason for selection of the topic:

The reason for selection this particular topic for the project is due to the tremendous

growth that is taking lace in the insurance industry. Also the job was challenging as I was

getting an opportunity to work with a leader in the industry, this will provide a platform to

enter into the service sector.

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6.1.2 Importance of Company:

The basic objective of the project was to appoint the new financial advisor for the

company, in more precise words it is the expansion of the company the new financial

advisors companys sales is going to increase.

This study will help the company in being known the mind set of the people to

become a financial advisor, as well as the constraints while joining the company as a

financial advisor.

6.1.3 Learning from project:

I learnt how the insurance company works, what are the channels of distribution and

elements in distribution network of the company, what are eligibility criteria to

become a financial advisor.

I studied overall working of Insurance companies. I came to know about channels

of distribution network used by Insurance companies. I studied the policies and

process of appointing financial advisor for ICICI FRUDENTIAL Life Insurance

Company.

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6.2Theoretical Background:

6.2.1 SERVICES:

Services from major part of day today life. Today services sector is the fastest growing

sector in almost every countries economy. Services are the intangible product which are

attached to either the provider that is producer or the service receiver i.e. the customer who

byes it to enjoy the benefits of the services.

6.2.2 DEFINSTION:

Kotler (1988) Define service as:

Any act or performance that one party can offer to another that is essentially intangible

and does not result in ownership of any thing. Its production any or may not be tied top a

physical product.

The American Marketing Association Services as:

Activities, Benefits, or Satisfaction, which are offered for sale and provided in

connection with the sales of goods.

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6.2.3 CHARECTERISTICS OF THE SERVICES:

Following are the different attributes common to the services:

Intangibility:Services do not have a physical form.

Inseparability:A service cannot be separated from sources that render it.

Inconsistency:The quality of service can differ from one service provider to another

service provider. Also may form one service encounter to another even for the same service

provider.

PERSONAL ABILITY:Services are not the physical objects therefore cant be stored.

OWENERSHIP:Buying service does not result into ownership of anything.

SIMULTANEITY: The production and consumption of the service is always

simultaneous.

QUALITY MEASURMENT: There is no particular standard set for the services.

NATURE OF DEMAND: The demand for the service in the market is always

fluctuating.

6.2.4. The 7-S work for a service organization:

1. Strategy.

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2. Structure.

3. System.

4. Styles.

5. Staff.

6. Skills.

7. Shared values.

6.2.5 Marketing Channels for services:

Marketing channels for refers to an organized network of inter connected organization

and agencies involve in the process of making the product or services available to

customers. They are the intermediaries and also known as the middleman. Producers of

services also need to think about the channels of distribution, which can make their

services available to the customers.

They distribution of services is a critical task due to their intangibility, perish,

inseparability, etc. Therefore mostly the direct channel i.e. zero level is used in this case

the provider directly sales his services to customers. However some service provider makes

take help of the agents who can provide information of the customers, book the order and

collect the payment on behalf of the service providers. In any casa channel length does not

exceed one level. Some big and reputed service provider train the individuals to perform

service and franchise their services e.g. Employment agencies, travel agencies etc.

EXAMPLES:

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1. Service provider-customer: Zero level.

For example, customers, lawyers architects, doctors etc.

Use zero level for giving their services to their customers.

2. Services provider-Agent-customers: One level

For example, Education institutes, entertainment, insurance, securities, banks and

financial institutions and appoint agent (direct selling agent).

3. Service provider (Franchiser)-Franchisees-Consumer: One level.

6.3 SECTORS IN SERVICES AND THEIR GROUTH POTENTIALS

Following are the key services industries in India and their growth potentials:

1. Insurance:-

India is not recognized as a first emerging market for a insurance. The Indian

insurance is accepted to be $25 billion in 2010 on an assumption of 9.7 % real growth in

the GDP. With the passing or IRDA act in 2000 the insurance market in India has been

open to privet sector. As a result as many as 34 insurance companies entered the market;

in collaboration with foreign companies by end of 2002-2003 the market has now become

highly competitive and challenging.

2. Transport:-

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Heavy investments are made in means of transport like railways, waterways and

airways. There is need to develop infrastructures, modernize buses and train, aircrafts,

ships, introduces professional management improvement safety and security measure to

make this sector progressive.

3. Telecommunication:-

In spite of significant growth in telecommunication sector in the recent past, the

teledensity in India was abysmally low compared to other countries the teledensity in

India was only 1.89 by the end of 2002. Telecommunication has tremendous growth

potential. The rapid growth in cellular, radio paging, value added services, internet and

global mobile communication by satellite services, besides basic telephone services, is an

indicator of the bright future of sector.

4. Software:-

Computer software is the thrust area in growth plan of India economy. The

focus is to develop the industry for export as well as for domestic needs. Thus

this industry is having bright future.

5. Electricity:-

The government of India has taken up mission 2012 with an object of providing

power for all. A comprehensive plan has been developed to address all the problems

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being confronted by sector. With these initiatives being taken for the growth of the sector,

we can be hopeful of better power generation.

6. Postal services:-

The department of posts is adapting itself to the hanging markets dimension in

spite of the financial impediments. Competition from courier and other services

companies is becoming more intense day by day. However, the department has no parallel

challenge in terms its huge network con connecting every part of India.

7. Tourism:-

Tourism is dynamic field and is subject to constant changes cause by the consumers as

well as social treads. One of the reasons identified for the slow growth of sector in India is

the lack of professionalism in the marketing tourism services. Hence strategy approach in

marketing of truism services is necessary to achieve good results.

8. Banking

Indian banks have a gigantic task of striking of appropriate balance between banking

operations of international standard and commitment and social welfare there is a need to

reset social .economy objective in the larger interest of the nation by taking into

consideration factors such as several competitions customers sophistication business

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diversification product innovation asset and liability mismatch increased business risk,

NPA menace, capital restructure, cyber/e, banking-commerce and universal banking.

9. Healthcare:-

The entry of the corporate sector has brought in dynamic shift in healthcare services.

Having an assured growth in demand due to the increasing population, rise in the

population levels, emergence of communicable diseases, epidemics and falling living

conditions, and the health care sector has prospects of high level growth.

10. Education:-

The liberal financing by banks and other financial instructions, further facilities the

growth of this sector. In spite of several impediments such as school drops outs,

infrastructure constraints quality variations lack of proper vision, financial problems for

public institution and universities, the sector is set to reach new heights each year.

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6.4. INSURANCE

In this age of uncertainties nothing can be called as safe, a small accident can end our life

business home vehicle therefore it is necessary to insure the things including our life so that

if incident occurs the loss can be reimbursed .insurance is a promised given by one to

another where by the promissory undertakes to pay a sum of money to the promise on the

happening of the event insured against.

Types of insurance:

Term life insurance.

Car insurance.

Health insurance.

Long term care insurance.

Burial insurance.

Business insurance.

Home owners insurance.

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Group health insurance.

Disability insurance.

Whole life insurance.

Home improvement insurance.

Others: motorcycle, boat, flood insurance etc.

6.5 LIFE INSURANCE:

Life insurance is promise to perform in future when the obligation is met i.e. the insured

event takes place ,the money ,whose presence can be felt replaces the promise his helps the

insured person or in case of his death his dependences will get the assured amount of

money with which they can obtain the necessities of life.

Marketing approach to life insurance

Life insurance is a personalize service oriented industry, therefore providing the service

that should match the needs and wants of the customer should be a basic objective of life

insurance company. The marketing approach in relation to life insurance involves

following four steps.

1. Research to determine customers insecurity.

2. Designing new policies or innovate old ones.

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3. Market services to the customer for whom they where researched and designed at

profit.

4. In doing so satisfy the customers needs.

MARKETING APPROCH TO LIFE INSURANCE

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6.6 AGENT

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Identify the customers

future needs

Forecasting and research

on future market needs

for insurance

Develop appropriate

insurance plans

Determine the

premium for each plan

developed

Personal selling

through agents;Advertising

Opening of

branches,

appointing agents

and development

officers

Policy servicing


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An agent is an intermediary who acts on behalf of the service principle and is

authorized to make agreement between the customer and the service provider or

principal. Agent does not take title to services but instead deliver the right to

them. They have legal authority to market the services as well as to perform

other marketing functions on behalf of the producers.

TYES OF AGENT:

There are two types of agents:-

1. Selling Agents: - They have contractual authority to sell a services

principals output. E.g. Insurance, financial services.

2. Purchasing Agents: - These agents have a long relation with buyers

evaluating and making purchases for them they are knowledgeable and

provide helpful market information to clients as well as obtaining the best

services and prices available. E.g. agents hired by company to find art,

rare jewelers, antiques etc.

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C OMPANY PROFILE

7.1 ABOUT ICICI

ICICI bank is Indias second largest bank with an asset base of Rs. 2513.89

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As on march 31, 2006.ICICI bank provides a broad spectrum of financial

services to indices and companies. This includes mortgages, car and personal

loans, credit and debit cards, corporate and agricultural finance the bank

services a growing customer base for more than 17 million customers through

multi-channel network which includes over 620 branches and extension

counters, 2200 ATMs, call centers and the retail customers through a Varity of

delivery channels through its specialized subsidiaries and affiliates in areas of

investment banking, life and non-life Insurance, venture capital, asset

management and information Technology, ICICI banks equity shares are listed

on stock exchange of Chennai, Delhi, Kolkata and Vadodara , The Stock

Exchange and The National Stock Exchange of India Ltd. and American

Depositary Receipts (ADRs) are listed on The New York Stock Exchange

(NYSE).

7.2 ABOUT PRUDENTIAL PLC

Prudential PLC was established in London in 1948, Prudential PLC, through

its businesses in the UK and Europe, the US and Asia, provides retail financial

services to more than 16 million customers, policyholders and unit holders

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worldwide. As of Dec. 31, 2005, the company has over US $ 400 billion in fund

management. Prudential has brought to market an integrated range of finance

services products that now includes life assurance, pensions, mutual funds,

banking, investment management and general insurance. In Asia, Prudential is

leading European life Insurance Company with a vast network of 23 life and

mutual fund operations in twelve countries

1. China.

2. Hong Kong

3. India.

4. Japan.

5. Korea

6. Malaysia.

7. Philippines.

8. Singapore.

9. Taiwan.

10.Indonesia.

11.U.K.

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7.3 JOINT VENTURE ICICI PRUDENTIAL

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 U.K. ICICI prudential was amongst the first private sector insurance

companies to begin operations in Dec. 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA).

ICICI Prudentials capital base stands at Rs. 1335 Crores with ICICI Bank and Prudential

PLC holding 74% and 26% stake respectively. For the year ended March 31, 2006, the

company garnered Rs. 2,412crore of weighted new boniness premiums and wrote 837,963

policies. The sum assured in force at over Rs. 56,000 crore.

ICICI Prudential is also the only private Life Insurer in India to receive a national Insurer

Financial Strength rating of AAA (Ind.) from Fitch rating. The AAA rating ids the highest

rating, and is a clear assurance of ICICI Prudentials ability to meet its obligations to

customers at the time of maturity or claims.

For the past five year, ICICI Prudential has retained its position as the No. 1 private Life

Insurer in India, with a wide range of flexible products that meet the needs of the Indian

customer at every step in life. ICICI Prudential has one of the largest distribution networks

amongst private Life Insurers in India with network of over 83,000 advisors, and having

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commenced operations in 207 cities and towns in India, stretching from Bhuj in west to

Guwahati in The east, Jammu in the North to Trivanprum in the south.

ICICI Prudential was registered on Nov. 24, 2000. with registration No. 105.

Board Of Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people

from financial industry both from India and abroad.

Mr. K.V. Kamath, Chairman

Mr. Mark Norbom

Mrs. Lalita D. Gupte

Mrs. Kalana Morparia

Mrs. Chanda Kochhar

Mr. H T Hong

Mr. M.P. Modi

Mr. R Narayanan

Mr. Keki Dadiseth

Ms.Shikha Sharma, M.D.

Mr.N.S. Kannan, Executive Director

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Management Team

Ms.Shikha Sharma, M.D. & CEO

Mr.N.S. Kannan, Executive Director

Mr. N.S. Kannan, Executive Director

Mr. V Rajagopalan, Chief- Actuary

Mr. Sandeep Batra, Chief Financial Officer & company Secretary

Ms. Anita Pai, Chief - Customer Service and Technology

Mr.Puneet Nanda, Chief - Investments

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7.4 PRODUCT LINE

ICICI Prudential is currently having a wide range of products which could meet the

existing demand of the customer this products are the various plans which are flexible in

nature which can be enhanced with up to 6 riders to provide a customized to each policy

holder.

SAVING & WEALTH CREATION SOLUTIONS

Cash plus is a transparent, feature-packed savingplan that offers 3 levels of

protection as well as liquidity options.

SavenProtect is a traditional endowment savings plan that offers life insurance

along with adequate returns.

Cash Bakis an anticipated endowment policy ideal for meeting milestone expenses

like a childs marriage, expenses for childs higher education or purchase of an asset.

It is available for terms of 15 and 20 years.

Lifetime Super & lifetime plus are unit linked plans that offers customers the

flexibility control to customize the policy to meet the changing needs at different life

stages. Each offer 4 fund functions: Preserver, Protector, Balancer and Maxi miser.

Life link Super is a single premium unit linked insurance plan which combines life

insurance cover with opportunity to stay invested in the stock market.

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

term wealth creation.

Invest Shield Life new is a unit linked plan that provides premium guarantee on the

investment premiums and ensures that the customer receives only the benefits of

fund appreciation without any of the risk of depreciation.

Invest Shield Casbakis a unit linked plan that provides premium guarantee on the

investment premiums along with flexible liquidity operations.

PROTECTION SOLUCTIONS

Lifeguard is a protection plan, which offers life insurance covers at very low cost.

Itis available in 3 options: Level term assurance, Level term assurance with return of

premium an single premium.

Home Assure is a mortgage reducing term assurance plan designed specially to help

customers cover home loans in a single and cost effective manner.

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CHILD PLANS

Educational insurance under the Smart Kidbrand provides guaranteed educational

benefits to a child along with life insurance cover for parent who purchases the

policy. The designed to provide money at important millstones in the childs life.

Smart Kid plans are also available in Unit-linked form, both single premium and

regular premium.

RETIRMANT SOLUCTION

Forever life is a traditional retirement product that offers guaranteed returns for the

first 4 years and then declares bonuses annually.

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

HEALTH SOLUCTION

Health Assure and Health Assure Plan : Health assure is regular premium plan

which provide long term cover against 6 critical illnesses by providing policyholder

with financial assistance, Irrespective of the actual medical expenses. Health Assure

Plus offers the added advantages of equivalent Life Insurance Cover.

Cancer Care: is a regular premium plan that pays cash benefits on diagnosis as well

as at different stages in the treatment of various cancer conditions.

GROUP INSURANCE SOLUCTIONS

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ICICI Prudential also offers Group Insurance Solution for the companies seeking to

enhance benefits to their employees.

Group Gratuity Plan: ICICI Prus group gratuity plan helps employers fund their

statutory gratuity obligation in scientific manner. The plan can also be customized to

structure schemes that can provide benefits beyond the statutory obligations.

Group Superannuation Plan : ICICI Pru offers both defined contribution (DC)

defined benefits (DB) Superannuation schemes to optimize returns for the members

of the trust and rationalize the cost .members have the potion of choosing from

various annuity options or opting for a partial commutation of the annuity at the

time of retirement.

Group Immediate Annuities: in addition to the annuities offered to existing

superannuation customers, we offer immediate annuities to superannuation funds not

managed by us.

Group Term plan: ICICI prus flexible group term solution helps provide

affordable cover members of a group .the cover could be uniform or based on

designation/rank or a multiple of salary. The benefit under policy is paid to the

beneficiary nominated by the member on his/her death.

FLEXIBLE RIDER OPTIONS

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ICICI pru life offers flexible riders, which can be added to the basic policy at a marginal

cost, depending on the specific needs of the customer.

Accident of disability benefit; if death occurs as the result of an accident during the

term of the policy, the beneficiary receives an additional amount equal to the rider

sum assured under the policy .if the death occurs while traveling in an authorized

mass transport vehicle. The beneficiary will be entitled to twice the sum assured as

additional benefit.

Critical illness benefit: protects the insured against financial loss in the event of

9specified critical illnesses, benefits are payable to the insured for medical expenses

prior to death.

Income Benefit: This rider pays the 10 % of the sum assured to the nominee every

year, till maturity. In the event of the death the life assured. It is available on smart

kid and cash plus

Waiver of premium: in case of total and permanent disability due to an accident, the

future premiums continue to be paid by the company till the time of maturity. This

rider is available with life time super, life time super pension and cash plus.

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Market Shares of Insurance Companies in India

VISION:

To make ICICI pru the dominant life and pension layer built on trust by world class

people and service.

This we hope to achieve by;

1. Understanding the needs of the customer and offering them superior products and

services.

2. Leveraging technology to service the customer quickly, efficiently and conveniently.

3. Developing and implementing superior risk management and investment strategies to

offer sustainable and stable returns to policyholders.

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4. Providing and enabling environment to faster growth and learning for our employees.

5. Building transparency in all our dealings.

VALUES

The success of the company is to be achieved in its unflinching commitment to 5 core

values.

1. Integrity.

2. Customer first.

3. Boundary less.

4. Ownership.

5. Passion.

6. Each of the above values described what the company stands for, the qualities of our

people and the way we work.

We aim at unlimited growth coupled with higher quality of customer satisfaction by

providing the quality products and services.

ACHIVEMENTS:

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1. The New Delhi branch office stood 8th, in terms of its business achievements,

amongst 103 branches of ICICI prudential.

2. Record Created 05 06;

Total income till date: 5000cr.

Total Business; 2410cr.

New Business; 1584cr.

Commission paid; 284cr.

Plans issued; 6lac.

Total plans issued: 1.4million.

Only in march; 97000.

No of service transaction: 14lac.

Communication sends out: 65lac.

Average plan of second sale compared to first sale; Higher by 50 %

ORGANIZATIONAL STRUCTURE OF A BRANCH OFFICE:

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38

Territory Manager

Assistant Sales

Manager

SeniorAgencyManager

Channel Development

Manager

Agency Manager

Unit Manager

Assistant Unit

Manager


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INDUSTRY PROFILE

8.1 INSURANCE

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In todays era everything is too uncertain. A small accident can put to end of our vehicles,

business, home or perhaps a life too. So apart from saving money and investing into

different ways insurance should from a major part of our financial planning. Insurance is

nothing but, a promise to perform in future. It is a guarantee giving by one to another where

by the former undertakes to pay a sum of money to the latter on the happening of the event

insured against.

8.2 LIFE INSURANCE

Life insurance can be termed as a device or a plan of compensating a financial loss over a

large number of people, which is too heavy to conveniently born by an individual. It seeks

to reduce the financial uncertainties which can arise from an old age or death of person.

8.2.1 EVOLUATION OF LIFE INSURANCE

Basically the insurance was started by the Greeks and Romans, were in case of a death of a

member the cost of burial was contributed by the other members of the community. This

was an early concept of Insurance.

In seventeenth century, Tontine Annuity system came into existence where as associations

of individuals were formed without any consideration of age. A fund was created in which

each member contributed equal sum of money this fund was invested and at the end of each

year the obtained interest was equally divided among the survived. The person who

survived to the last received the interest as well as the principle amount.

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The first insurance company was formed in 1759 in Philidelphi, North America. Since then

over the past three centuries numbers of insurance companies are formed. And today

insurance is the fastest growing industry in the service sector because people have accepted

insurance as a protection coupled with investment.

8.2.2 INSURANCE IN INDIA

In India the insurance business started in the beginning of the 19th century.

Marine insurance was the earliest form of insurance that was transacted in India.

Marine insurance was followed fire insurance. Many foreign companies

established their branches in India, looking at the business prospects. In 1907,

the India mercantile insurance company was established as the first company of

India origin. The nationalization of insurance business was a major milestone in

the development of insurance in India. Life insurance business was nationalized

in 1956 by taking over 245 private insurance businesses. The General Insurance

Corporation (GIC) was established in 1972 by taking over the business of 107

insurers.

8.2.3 INDUSTRY LIFE CYCLE STAGE41


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Presently the life insurance industry is in the growth stage of its life cycle because of rise in

income of people better standards of living coupled with rise in uncertainties. Life is at risk

therefore people are likely to go for life insurance.

8.3 OTHER COMPETITOR IN LIFE INSURANCE:

1. Bajaj Allianz life insurance company Ltd.

2. Birla sunlife insurance Co. Ltd

3. HDFC standard life insurance Co, Ltd.

4. ING Vysya life insurance Co. pvt. Ltd

5. life insurance corporation of India

6. MAX New York life insurance co Ltd

7. MET life India insurance co pvt Ltd

8. OM Kotak Mahindra Life insurance Ltd.

9. SBI life insurance co Ltd,

10.TATA AIG life insurance co. Ltd

11.AMP sunmar life insurance Ltd

12.AVIVA life insurance co .India Pvt .Ltd

13.Sahara India life insurance co. Ltd

8.4 Market Share of the Competitors:

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On the basis of first year premium of life insurance for year ended March 2008.

(PROVISIONAL)

IRDA

43

Sr.

No.

Insurer Market share based on

Premium Policy

1 TATA AIG 1.18 0.87

2OTAK MAHINDROM KOTAK MAHINDRA 1.48 0.24

3 BIRLA SUNLINE 2.45 0.76

4 MAX NEW YORK 0.89 0.83

5 ING VYSTA 1.11 0.42

6 HDFC STANDERD 1.92 0.79

7 MET LIFE 0.22 0.18

8 BAJAJ ALLIANZ 3.39 1.10

9 ICICI PRUDENTIAL 6.25 2.34

10 SBI 1.91 0.49

11 AVIVA 0.79 0.32

12 AMP SANMAR 0.36 0.13

13 AHARA LIFE 0.01 0.04

14 LIC 78.07 91.50

GRAND TOTAL 100.0 100.0


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IRDA refers to Insurance Regulatory Development Authority. It is formed to

regulate and develop the insurance sector. It keeps check on the activities of the

various Life Insurance companies. All these companies are bound to follow the

rules and regulation laid down by IRDA.

9.1 MISSION:

To protect the interests of the policy holders, to regulate to promote and ensure

orderly growth of the insurance industry and for matters connected there with or

incidental there to.

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9.2 DUTIES, POWERS & FUNCTIONS OF IRDA

Section 14 of IRDA act, 1999 lays down the duties, powers and functions of

IRDA.

1) Subject to the provisions to this act and any other law for the time being

in force, the authority shall have the duty to regulate,

Promote and ensure orderly growth of the insurance business and re- insurance

business.

2) Without prejudice to the generality of the provisions contained in the sub-

section (i) The power and function of the authority shall include =

a. Issue to the applicant a certificate of registration, renew, modify,

withdraw, suspend or cancel such registration.

b. Protection of the interests of the policy holders in matters concerning

assigning of policy, nomination by policy holders, insurable

interests, settlement of insurance claim, surrender value of policy

and other terms and conditions of contracts of insurance;

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c. Specifying requisite qualifications ,code of conduct and practical

training for intermediary of insurance intermediaries and agents;

d. Specifying the code of conduct for surveyors and loss assessors;

e. Promoting efficiency the conduct of insurance business;

f. Promoting and regulating professional organization connected with

the insurance and re-insurance business;

g. Levying fees and other charges for carrying out the purpose of this

act;

h. Calling for information form, undertaking inspection of, conducting

enquiries and investigations including audit of the insurer,

intermediaries, insurance intermediaries and other organizations

connected with the insurance business;

i. Control and regulations of the rates ,advantages, terms and

conditions the may be offered by insurer in respect of general

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insurance business not so control and regulated by the tariff advisory

committee under section 64U of the insurance act,1938 (4of1938);

j. Specifying the form and manner in which books of accounts shall be

maintained and statement of account shall be rendered by insurers

and other insurance intermediaries;

k. Regulating investment of funds by insurance companies;

l. Regulating maintenance of margin of solvency;

m.Adjudication of disputed between insures and intermediaries of

insurance intermediaries;

n. Supervising the functioning of the tariff advisory committee;

o. Specifying the percentage of the premium income of the insurer to

finance schemes for promoting and regulating professional

organizations referred to in clause(f);

p. Specifying the percentage of life insurance business and general

insurance business to be undertaken by the insurer in the rural or

social sector; and

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q. Exercising such other powers as may be prescribed.

9.3 QUALIFCTION TO BE AN AGENT

IRDA has laid down qualification to be an agent for any of the insurance

company. This is applicable to all insurance companies. To become an agent

(financial advisor) a person should possess following qualifications; If the. In

other places the applicant should satisfy the minimum educational qualification

of 10th std. or equivalent.

1. He has to complete his 100hrs of practical training in Life Insurance

business, that to from approved institute, where the applicant is seeking

the license for the first to work as an agent.

2. He has to pass the pre requisite test which is conducted by the insurance

institute of India or any other approved body.

3. He required knowledge of solicit and procure insurance business.

4. He should be capable of providing necessary services to the policy holder.

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5. Applicant is living in a resident where the population is 5.000 or above as

per the last census in that case. He must have qualified his 10+2 or

equivalent.

RESEARCMETHODOLOGY

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10.1 MARKETING RESEARCH

DEFINATION

According to Philip Kotler: Marketing research is systematic problem analysis

model building and fact finding for the purposes of decision making of goods

and service

According to Green and Tull:-Marketing research is systematic and objective

search for analysis of information relevant to the Identification and solution of

any problem in the field of marketing.

According to American Marketing Association: - Marketing research is

systematic gathering, recording and analysis of data about and service.

MEANING

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a. Marketing research is systematic activity carried out in pursuit of truth

b. It is a purposive investigation.

c. It is the application of scientific method to add the present pool

knowledge.

d. It is a way of finding new ways of looking at familiar things in order to

explore ways of changing it.

e. It is activity that extends correct or verifies knowledge.

10.2 OBJECTIVES OF THE PRODUCT

To approach the people for becoming a financial advisor.

1. To study about the potential customer in the market.

2. To hire the new financial advisor for the company so that the business of the

company should grow faster.

3. To study about the marketing strategy of company.

10.3 GEOGRAPHICAL SCOPE:

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I choose New Delhi city for my project work-

In New Delhi city following areas were covered;

10.4. TIME SCOPE: 45 DAYS

10.5 SCOPE OF THE PROJECT:

The scope of project was all about recruiting the financial advisors for the company on

commission basis. I was suppose to generate the leads then meet those people, telling them

the concept of financial advisor and convincing them to join the company and finally get

the undertaking forms filled and thus closing the leads.

10.6 RANDOM SAMPLING

In random sampling methods, the sample units are selected at random. Random

sampling follows a precisely specified system where there is no scope for biased selection

of sample units take place by sheer chance of being selected.

SAMPLE PLAN

This is called for three decisions:-

1. Sample unit:-who is to be surveyed?

The target population that is defined.

ICICI Prudential was surveyed in this project.

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1. Sample size: - the refers to the number of items that is to be selected from the

universe to constitute a sample-

3. Sample Procedure: - How the respondent be chosen.

CENSUS SURVEY: - Data is collected from each and every unit in the population; it is

termed as census survey.

To overall census population of questionnaire survey hence proper sampling design is

done so that particular sample represents that census.

UNIVERSE:- Universe sampling accounts for no. of sample size upon which project data

has been collected here to gather that data my sample size was 100 which is universe

sample size.

10.7 DATA COLLECTION INSTRUMENTS:

1. Questionnaires

2. Personal Interviews.

10.8 DESIGNING THE QUESTIONARE:

While designing the Questionnaires we need to keep certain things in mind.

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Simplicity: the Questionnaire should very simple to understand that is the language

used should be easy and understandable. So that the person who is about to fill it can

give appropriate answers to the concern questions.

Briefness: The Questionnaires should very brief that is possibly low number of

questions should be asked, so person will not fill bored.

Clearness: Questions should be cleared and be possibly open ended to save time of

the people filling them.

10.9 PERSONAL INTERVIEWS

Personal interview is mostly commonly used method of data collection. Two purposive

communications between interviewer (researcher) and the respondent (subject) aimed at

obtaining and recording information pertinent to the subject matter of study. The

interviewer resents oral, verbal and written stimuli and receives oral resonances.

Interview may be used as the main method of data collection, or may be used as a

supplement to observation experiments or other technique.

People are more willing to speak rather than write. It also provides an opportunity to note

the body language of the respondent this is called as Personal Interview.

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10.10 FIED WORK:

I visited various places like Cannought place, Nirala Bazar, Osmanpura, Jyoti Nagar, etc.

an meet the shop keepers, housewives, student etc. I gave them information about the

concept. I got the questionnaire forms filled the people. People who were interested in

becoming financial advisor were supposed to fill the form and pay Rs. 1,000/- as their

training fees. My job was getting these people motivating them and gets them to my unit

manager.

10.11 PROBLEMS IN DATA COLLECTION

1. People hesitated in giving personal information

2. People dont listen and pay attention to the things they are not interested in

3. People dont like to fill the questionnaire because of the mind set against the surveys.

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LIMITATIONS

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LIMITATIONS

1. Since the duration of the project training was less it was difficult to study

following aspects in depth.

a. To understand the policy of company

b. To understand the work properly.

c. To learn about the requirement/qualifications of the financial

advisor.

d. To generate the leads.

2. Peoples mindset about becoming a financial advisor for the company is

very narrow, usually they hesitate in giving their personal information &

expressing their views etc.

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3. People are not ready to undergo the practical training of 100Hrs.

DATA ANALYSIS

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ANALYSIS OF THE QUESTIONNAIRE:

TheQuestionnaire was designed to obtain personal information of the person as well as

their interest in becoming a financial advisor.

1. Do you have insurance policy of any of the company?

a) LIC [ ] b) ICICI [ ] c) HDFC [ ] e) others f) No policy [ ]

This question was asked to person I order to know whether he have some knowledge about

the insurance product. Following was outcome observed after asking this question 200

people.

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TABLE 5.1

COMPANY FREQUENCY PERCENTAGE

LIC 80 80 %

ICICI 30 30 %

BAJAJ 20 20 %

HDFC 15 15 %

OHERS 5 5 %

NO POLICY 10 10

TOTAL 100 100 %

Graphical Representation:

0

10

20

30

40

50

60

70

80

LIC ICICI BAJAJ HDFC OHER NO POLICY

80

30

20 155

10

Observation: It is being observed that 80 % of the sample populations are having their

insurance policy in LIC as compared to private life insurance companies.

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2.1) Are you an agent of any of the insurance company?

a) Yes [ ] b) No [ ]

This question asked to make whether the targeted person can become our prospect or not.

TABLE 5.2

RESPONCE FREQUENCY PERCENATAGE

Yes 20 20%

No 80 80%

TOTAL 100 100%

20%

80%

Yes

No

Observation: this shows very low sample population is aware of this business of an

insurance agent and a very few of them are prepared to be an insurance agent.

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ii) If Yes which of following company you are working for?

a)LIC [ ] b) ICICI [ ] c) BAJAJ [ ] d) HDFC [ ] e) OTHERS

The above question helped in getting the information about the brand awareness

of the different insurance companies present in the market and also peoples

mindset about the companies.

COMPANY FREQUENCY PERCENTAGE

LIC 12 60 %ICICI 4 20 %

BAJAJ 2 10 %

HDFC 2 10 %

OHERS 0 0%

TOTAL 20 100 %

60%20%

10%

10% 0%

LIC

ICICI

BAJAJ

HDFC

OTHERS

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Observation: It is observed that nearby 40 % of the people I met had sales

related experience as most of them are self employed and having their own

shops. While 60 % of the population dont have any such experience.

4) Are you interested in being / getting more information about financial advisor?

a) Yes [ ] b) No [ ]

This question is posed to the customer to get information whether he id

interested in knowing about the concept of Financial Advisor and doing

business for the company or not.

RESPONCE FREQUENCY PER CENT

Yes 30 30 %

No 70 70 %

TOTAL 100 100 %

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30%

70%

Yes

No

Observation: It is being observed that 30% of the total sample population said

that they would like to know about the company and its Advisor.

5. If Yes how would you like to be contacted through?

a) Personal Visit [ ] b) Telephone [ ]

This question helps in determining the future step to be undertaken to make the customer

know about the concept and convincing him to join the company. The outcome for this

question was:-

RESPONCE FREQUENCY PER CENT

Personal Visit 27 90 %

Telephone 3 10 %

TOTAL 100 100 %

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90%

10%

Personal Visit

Telephone

Observation: It is noticed that 90% of people do believe in face to face

interaction because they feel it id effective and it helps them in resolving their

doubts on the spot.

OTHERS:-

1. Educational Qualification:

a) 10th Passed [ ] b) 10+12 [ ] d) Post Graduation [ ]

This question helps in knowing the level of knowledge and understanding of the person.

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TABLE 5.7

PARTICULAR FREQUENCY PER CENT

10th Passed 5 5 %

10+2 Passed 35 35 %

Graduation 50 50%

Post Graduation 10 10 %

TOTAL 100 100 %

5%

35%

50%

10%

10thPassed

10+2 Passed

Graduation

Post Graduate

Observation: It was observed that hardly 5% of the selected population even

self-employed was 10th Passed, while others are well educated.

Current Occupation:

a) self employed [ ] b) Salaried [ ] c) Student [ ] d ) House wife [ ]

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The objective behind this question is to determine the interest of the person in

doing the business for the company and if is joins company how much time he

will be able to give for the business. The come was:-

PARTICULAR FREQUENCY PER CENT

Self employed 50 50 %

Salaried 5 5 %

Student 20 20 %

House wife 25 25 %

TOTAL 100 100 %

50%

5%

20%

25%

Self emloye

Salaried

Student

House Wife

Observation:Nearly 50 % people are self-employed as the areas covered mostly

market place. While only 5 % people I met are the salaried person, 20 % are

student and 25 % are House Wives.

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3. Rejections:

Even after people are willing to join the company and do certain rejections come due to

different reasons but the main reason was time constraint as people are too busy that they

can not afford time for 100 hrs training and to certain extend money is a problem especially

for the students who wanted to join the company as a financial advisor.

a) Rejection due to time constraint

89 % rejections were there due to time constraint. People who are self employed are

busy enough with their work. So they do not have sufficient time to spare for training

process. Even the housewives and the jobbers are busy with their work so they find it

difficult to manage to undergo the training.

b) Rejection due to money constraint:

To register for being a Financial advisor applicants need to pay a sum of Rs.1000/-

some people find it difficult to pay at single time. Also people have a mindset that if

they fail in getting the customers these entire sums have to paid will be waste. Nearly

11 % of the rejections are due to money constraint.

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Table 5.9:

PARTICULAR FREQUENCY PERCENTAGERejection due to time

constraint

24 88.88%

Rejection due to money

constraint

3 11.11%

Total 27 100%

89%

11%

Rejection due to time

Rejection due to money

Observation: It is observed that 89 % of people face time as a constraint in joining the

company and undergoing the practical training. While only 11% of the people find money

as a constraint in joining the company and training.

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FINDINGS

&

SUGGESTIONS

FINDINGS & SUGGESTIONS

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1. To register for being Financial advisor applicants need to pay a sum of

Rs.1000/- some people find it difficult to pay at single time. Especially,

the student who are non-residents in New Delhi. Therefore ICICI

Prudential can have installment facility for such people so that they can

pay in lots.

2. After registration the candidates are provided with training of 100Hrs.

they can opt for either classroom training or Internet training as per their

convenience. The company sponsors the classrooms training. Whereas.

Foe Internet Training candidate need to pay themselves. Here the

company can sponsor these students also to create a favorable image in

the minds of candidate undergoing the Internet training.

3. The company can grab more and more customers. If it has image of first

choice employer in the mind of Financial Advisor. It can create such

image by providing additional facilities and assistance to Financial

Advisor.

4. The company can go for outsourcing its business, to take proper care of

its exiting customer and obtain new prospect to expand its business.

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CONCLUSION

CONCLUSION

At ICICI prudential Life Insurance Company Ltd. New Delhi. I observed very

systematic and professional approach toward marketing. People are engaged in

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compulsory task, relates themselves to reach other systematic establishment &

accomplishment of the Marketing Process. After studying various theoretical

approach of company. I have come to a conclusion that ICICI Prudential is a

profit making company and gradually the demand of the product is also

increasing.

The main areas of company are:-

1. Well defined objective.

2. Well organized and co-ordinate group of people.

3. Clear & well defined policies & responsibility.

4. An effective system of the company.

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BIBLIOGRAPHY

BIBLIOGRAPHY

Books:

1. Service Marketing- Valeri A. Zeithaml & Mary Bitner 2nd edition

TATA McGraw Hill

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2. Service Marketing- P.K. Sinha & S.C. Sahoo- 1st edition- Himalaya

Publication House.

3. Service Marketing-K. Rama Mohan Rao- 1st edition-Indian Print-

Peatson Education

4. Channel Management & retail Marketing- Meenal Dhotre - 1st edition-

Himalaya Publication House.

References:-

Companies printed Material.

Websites:

1. www.irdaindia.org

2. www.iciciprulife.com

QUESTIONNARIES

Dear sir/mam

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I m a student ofSRM-IST, For Higher Education, Modinagar an presently Im doing a market survey consumer behavior about life insurance. I request you to kindlyfill the questionnaire below and I assure you that the data generated shall be keptconfidential.

1) What is your age?

a) 18 to 25

b) 25 to 35

c) 35 to 45

d) Above 45

2) Do you have any insurance policy?

a. Yes

b. No

3) You have insurance of which company?

----------------------------------------------------------------------------------------4) Do you pay tax?

a. Yes

b. No

5) You want to do your investment for tax saving in:

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b. NSE

c. Bonds

d. PPF

e. PF

f. EPF

6) Where you want to invest for securing your future?

a. Fixed assets

b. Bank deposits

c. Government securities

d. Shares

e. Insurance

f. Jewellary

7) You want from your investment:

a. Saving and returns

b. Security

c. Tax saving

8) Insurance gives you benefits of:

a. Cover future uncertainty

b. Tax deduction

c. Future investment

9) What attract you for an insurance policy?

a. Money back guarantee

b. Larger risk cover

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c. Easy access to agent

d. Lower premium

e. Company Reputation

10) What type of insurance you want:

a. Life insurance

b. General insurance

c. Both

11) You think insurance as a:

a. A saving tool

b. A tax saving device

c. A tool to protect your family

12) How you get your insurance plan?

a. You approached company/advisor

b. Company/advisor approached you

13) You are satisfy with your policy:

a. Fully satisfied

b. Satisfied

c. Neither satisfied nor dissatisfied

d. Dissatisfied

14) Your satisfaction with service agent:

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a. Fully satisfied

b. Satisfied

c. Neither satisfied nor dissatisfied

d. Dissatisfied

15) What do u look for an insurance company?

a. A trusted name

b. Friendly service responsiveness

c. Good plans

d. Accessibility

16) Are you planning for investment?

a. Yes

b. No

17) Do you want to go away from city if a company is

providing you good services and products?

a. Yes

b. No

c. Uncertain

Personal detail

Name: -------------------------- ---------- Age: ------------------------Occupation: ---------------------------------------------City: Contact No. : ---------------------Address: --------------------------------------------------------------------------

RegardRahul Pratap Singh

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Mo. +919760262570

arif khan icici project

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