-1-A SUMMER TRAINING PROJECT REPORT ON“SUBMITTED IN THE PARTIAL FULFILLMENT OF THE AWARD OF THEDEGREE OFMASTERS OF BUSINESS ADMINISTRATIONSession (2011-13)Submitted to: Submitted ByPROF. SHWETA BATRA PRITESH KUMAR( HOD Of Management Department) MBA: 3rd semROLL NO: 111290051Forte Institute of Technology, MeerutA
-2-SUMMER TRAINING PROJECT REPORTON“MARKETING SURVEY AND CHANNELDEVELOPMENT”ICICI PRUDENTIAL LIFE INSURANCE LTD. ”SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OFMaster of Business Administration(Mahmaya Technical University Noida)ACADEMIC SESSION:2011 – 2013UNDER THE GUIDANCE OF: SUBMITTED BY:Ms. PARUL UPPAL MOH Azhar Khan[H.O.D. of Management] MBA 3rd SemGYAN BHARTI INSTITUTE OF TECHNOLOGY PARTAPURBYPASS MEERUT
-5-ACKNOWLEDGEMENTPresenting a Project report of this type is an arduous task, demanding a lot of time. Icannot in full measure appreciate and acknowledgement the kindness shown and helpextended by various persons in this endeavor. I will remember all of them with gratitude.I must, however, especially Render & My special sincere thanks towards project guideMr. ___________________ (Unit Manager) giving me a chance to take this research forhis valuable guidance, which helped me on all those points, which I needed to include in,with full intensity.My sincere thanks are also due to Pro. Parul Uppal, HOD of Management I can‟t fortheir sign if help extended for the successful completion of the project. I highly the help Igot from them in providing me and a lot of information regarding the functioning of thisorganization.I am always be holder to my God, for always being with me and showing me the rightways, my family, for always doing favors to me and my friends and colleaguesconsistently helped with encouragement and criticism throughout the research work, foralways lifting my sights to higher vision, raising my personality beyond normal limitationand for realizing me my strengths and potential, as I did not always welcome herexhortation, “try again; you can do better.” But this research owes a great deal to it – andso do I.Ankit Dutt( MBA III SEM )
-6-DECLARATIONMy self Ankit dutt Student of MBA III SEM here by declared that theProject report entitled ‘ ANALYSIS OF MARKETING SURVEY ANDCHANNEL DEVELOPMENT”ICICI PRUDENTIAL LIFEINSURANCE LTD. is completed and submitted to Prof.Parul Dutt, HODof Management (Gyan Bharti Institute of Technology, Meerut is my original work.The imperial finding in this report is based on the data collected by me. I have notsubmitted this project report any other University for the purpose of complianceof any requirement of any Examination or Degree.Ankit DuttMBA III SEM
-7-PREFACEICICI Prudential Life Insurance is one of the largest Insurance networks in thecountry, and 2ndLife Insurance Company in India. The ICICI Group has been inexistence since 1955 when ICICI Ltd., was created. ICICI Prudential started in 2002 assubsidiary of ICICI Ltd., Today ICICI Life Insurance has a customer base of 4 millionwith total assets exceeding Rs.1, 00,000 Cr. making it the 2ndlargest life insurancecompany in the country, next only to LIC. The Insurance sector, after the opening up,provides greater opportunities. Several global players have emerged and the market haschanged significantly. In the changed scenario, the expectation is that the low Insurancepremium as a percentage of GDP prevailing in India will improve and will offer betteropportunities to the insurance players.Life Insurance sector is one of the key areas where enormous business potentialexists. In India currently the life insurance premium as a percentage of GDP is 1.3 percent against 5.2 per cent in the US, but in the liberalized scenario, the life insurancepremiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998- 99to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009-10. Corporate non-lifepremium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in 2009-10 and personal line non-life from Rs 4 billion to Rs 51 billion.In the life Insurance segment the Life Insurance Corporation of India (LIC) is themajor player. The LIC has 2050 branches. It is constituted in to seven Zones. Currentlythere are 5, 60,000 LIC agents in India. General Insurance is another segment, which hasbeen growing at a faster pace.
-8-CONTENTS1. Preface2. Introduction3. Statement of the problem4. Objective of the study5. Significance of the study6. Research methodology7. Industry profile8. Company profile9. product/services profile10. Data analysis and interpretation11. Findings12. Recommendations to company:13. Appendix14. Questionnaire15. Bibliography
-9-INTRODUCTIONLife insurance is a form of insurance that pays monetary proceeds upon the death of theinsured covered in the policy. Essentially, a life insurance policy is a contract between thenamed insured and the insurance company wherein the insurance company agrees to payan agreed upon sum of money to the insureds named beneficiary so long as the insuredspremiums are current.With a large population and the untapped market area of this population insurancehappens to be a very big opportunity in India. Today it stands as a business growing atthe rate of 15-20% annually. Together with banking services, it adds about 7 percent tothe countries GDP. In spite of all this growth statistics of the penetration of the insurancein the country is very poor. Nearly 80% of Indian populations are without life insurancecover and the health insurance. This is an indicator that growth potential for the insurancesector is immense in India.It was due to this immense growth that the regulations were introduced in the insurancesector and in continuation “Malhotra Committee” was constituted by the government in1993 to examine the various aspects of the industry. The key element of the reformprocess was participation of overseas insurance companies with 26% capital. Creating amore competitive financial system suitable for the requirements of the economy was themain idea behind this reform.
-10-Since then the insurance industry has gone through many changes. The liberalization ofthe industry the insurance industry has never looked back and today stand as one of themost competitive and exploring industry in India. The entry of the private players and theincreased use of the new distribution are in the limelight today. The use of newdistribution techniques and the IT tools has increased the scope of the industry in thelonger run.Insurance is the business of providing protection against financial aspects of risk, such asthose to property, life health and legal liability. It is one method of a greater conceptknown as risk management –which is the need to mange uncertainty on account ofexposure to loss, injury, disadvantage or destruction.Insurance is the method of spreading and transfer of risk. The fortunate many who areexposed to some or similar risk shares loss of the unfortunate. Insurance does not protectthe assets but only compensates the economic or financial loss.In insurance the insured makes payment called “premiums” to an insurer, and in return isable to claim a payment from the insurer if the insured suffers a defined type of loss. Thisrelationship is usually drawn up in a formal legal contract.
-11-Insurance companies also earn investment profits, because they have the use of thepremium money from the time they receive it until the time they need it to pay claims.This money is called the float. When the investments of float are successful they mayearn large profits, even if the insurance company pays out in claims every penny receivedas premiums. In fact, most insurance companies pay out more money than they receive inpremiums. The excess amount that they pay to policyholders is the cost of float. Aninsurance company will profit if they invest the money at a greater return than their costof float.An insurance contract or policy will set out in detail the exact circumstances under whicha benefit payment will be made and the amount of the premiums.Classification of insuranceThe insurance industry in India can broadly classified in two parts. They are.1) Life insurance.2) Non-life (general) insurance.1) Life insurance:Life insurance can be defined as “life insurance provides a sum of money if the personwho is insured dies while the policy is in effect”.In 1818 British introduced to India, with the establishment of the oriental life insurance
-12-company in Calcutta. The first Indian owned Life Insurance Company; the Bombaymutual life assurance society was set up in 1870.the life insurance act, 1912 was the firststatuary measure to regulate the life insurance business in India. In 1983, the earlierlegislation was consolidated and amended by the insurance act, 1938, withcomprehensive provisions for detailed effective control over insurance. The uniongovernment had opened the insurance sector for private participation in 1999, alsoallowing the private companies to have foreign equity up to 26%. Following the openingup of the insurance sector, 12 private sector companies have entered the life insurancebusiness.Benefits of life insuranceLife insurance encourages saving and forces thrift.It is superior to a traditional savings vehicle.It helps to achieve the purpose of life assured.It can be enchased and facilitates quick borrowing.It provides valuable tax relief.Thus insurance is found to be very useful in the lives of the person both in short term andlong term.
-13-Fundamental principles of life insurance contract;1) Principle of almost good faith:“A positive duty to voluntary disclose, accurately and fully, all facts, material to the riskbeing proposed whether requested or not”.2) Principle of insurable interest:“Relationships with the subject matter (a person) which is recognized in law and giveslegal right to insure that person”.2) Non-life (general) Insurance:Triton insurance co. ltd was the first general insurance company to be established in Indiain 1850, whose shares were mainly held by the British. The first general insurancecompany to be set up by an Indian was Indian mercantile insurance co. Ltd., which wasstabilized in 1907 . there emerged many a player on the Indian scene thereafter.The general insurance business was nationalized after the promulgation of GeneralInsurance Corporation (GIC) OF India undertook the post-nationalization generalinsurance business.
-14-CONCEPTUAL BACKGROUNDSatisfaction is defined as . . .“A person’s feeling of pleasure or disappointment resulting from comparing a product’sperceived performance (or outcome) in relation to his or her expectations.”Customer Satisfaction can be defined as supplying or gratifying all wants or wishes,fulfilling conditions or desires, or the state of the mind anything that makes a customerfeel pleased or contented.Consumer Behavior:Consumer behavior is defined as the behavior that consumers display in searching for,purchasing, using, evaluating and disposing of products and services that they expect willsatisfy their needs.The study of the processes involved when individuals or groups select, purchase, use, ordispose of products, services ideas, or experiences to satisfy needs and desiresCustomer value: The ratio between the customers‟s perceived benefits (economic,functional and psychological) and the resources (momentary, time, effort, psychological)used to obtain those benefits.
-15-Customer satisfaction: Customer satisfaction is the individual‟s perception of theperformance of the product or service in relation to his or her expectations.Motivation: The processes that account for an individual‟s intensity, direction, andpersistence of effort toward attaining a goal.Personality can be described ad the psychological characteristics that both determineand reflect how person responds to his or her environment.Perception is defined as the process by which an individual selects,organizes, and interprets stimuli into a meaningful and coherent picture ofthe world.Consumer learning is the process by which individuals acquire the purchase andconsumption knowledge and experience they apply to future related behavior.
-16-THE CONSUMER ADOPTION PROCESSThe consumer adoption process is the process by which customers learn about newproducts, try them, and adopt or reject them. Today many marketers are targeting heavyusers and early adopters of new products recognizing that specific media can reach bothgroups and tend to be opinion leaders. The consumer adoption process is influenced bymany factors beyond the marketer‟s control, including consumers and organizationswillingness to try new products, personal influences and the characteristics of the newproducts or innovations
-17-STAGES OF ADOPTION PROCESSAn innovation refers to any good, service, or idea. That is perceived by someone as new.The idea may have long history, but it is an innovation to the person who sees it as new.Innovation takes time to spread through the special system. The consumer adoptionprocess focuses on the mental process through which an individual passes from firsthearing about an innovation to final adoption. Adopters of new products have movedthrough the following five stages.1. AWARENESS: The consumer becomes aware of the innovation but lacksinformation about it.2. INTEREST: The consumer is stimulated to see the information about theinnovation.3. EVALUATION: The Consumer considers whether to try the innovation or not.4. TRIAL: The consumer tries the innovation to improve his estimate of its value.5. ADOPTION: The consumer decides to make full and regular use of theinnovation.
-18-STATEMENT OF THE PROBLEM“Study of consumer behavior & customer satisfaction towards ICICI Prudential LifeInsurance Products”.OBJECTIVE OF THE STUDYFor every problem there is a research. As all the researches are based on someand my study is also based upon some objective and these are as follows.1. To understand the insurance business and products of ICICI Prudential lifeinsurance co ltd.2. To find out the people‟s perception about life insurance.3. To find out whether people were really aware of life insurance.4. To find out how people think about private life insurance.5. To find out what respondents expect from life insurance.6. To understand Consumer buying behavior7. To come out with conclusion and suggestions based on the analysisand the Interpretation of data.
-19-SIGNIFICANCE OF THE STUDYThe project is concerned with the “STUDY ON CONSUMER BEHAVIORAND CUSTOMER SATISFACTION AT ICICI PRUDENTIAL LIFEINSURANCE. This study is very useful as the financial market become moresophisticated and complex, investor needs a financial intermediary whoprovides the required knowledge and professional expertise on successfulinvesting and Life insurance is a form of insurance that pays monetary proceedsupon the death of the insured covered in the policy. Essentially, a life insurancepolicy is a contract between the named insured and the insurance companywherein the insurance company agrees to pay an agreed upon sum of money tothe insureds named beneficiary so long as the insureds premiums are current
-20-RESEARCH METHODOLOGYResearch in common parlance refers to a search for knowledge. One can alsodefine research as a scientific and systematic search for pertinent information ona specific topic.The word research has been derived from French word Researcher means tosearch.FRANCIES RUMMER defined “Research: It is a careful inquiry or examinationto discover new information or relationship and to expand or verify existingknowledge.Research is the solution of the problem, whether created or already generated.When research is done, some new out come, so that the problem (created orgenerated) to be solved.
-21-RESEARCH DESIGN:Research Design is the conceptual structure within which research is conducted.It constitutes the blueprint for collection, measurement and analysis of data. Thedesign used for carrying out this research isDescriptive.DATA TYPE: In this research the type of data collection isPrimary dataSecondary dataDATA SOURCE: The sources of collection of secondary data are:QuestionnaireBooksWebsitesMagazineBrochure
-22-SAMPLING PLAN:It is very difficult to collect information from every member of a population .Astime and costs are the major limitation that the researcher faces.A sample of 100 was taken the sample size of 100 individuals were selected onthe basis of convenient sampling technique. The individuals were selected in therandom manner to form sample and data were collected from them for theresearch study.ANALYSIS AND INTERPRETATION:Data collection through questionnaire and personnel interview resulted inavailability of the desired information but these were useless until there wereanalyzed. Various steps required for this purpose were editing, coding andtabulating. Tabulating refers to bringing together similar data and compiling themin an accurate and meaningful manner. The data collected by questionnaire wasanalyzed, interpreted with the help of table, bar chart and pie chart.
-23-1. INDUSTRY PROFILE1.1 Insurance in IndiaThe insurance sector in India has come a full circle from being an open competitivemarket to nationalization and back to a liberalized market again. Tracing thedevelopments in the Indian insurance sector reveals the 360 degree turn witnessed over aperiod of almost two centuries.1.2 A Brief history of the Insurance SectorThe business of life insurance in India in its existing form started in India in the year1818 with the establishment of the Oriental Life Insurance Company in Calcutta.Some of the important milestones in the life insurance in India are;1912: The Indian Life AssuranceFor over 50 years, life insurance in India was defined and driven by only one company-the Life Insurance Corporation of India (LIC). With the Insurance Regulatory andDevelopment Authority (IRDA) Bill 1999 paving the way for entry of private companiesinto both life and general sectors there was bound to be new-found excitement- and newsuccess stories. Today, just three years since their entry, their cumulative share has
-24-crossed 13% (source: IRDA), far exceeding expectations. Clearly insurance is on agrowth path.The percentage of premium income to GDP which was just 2.3% in 2000-01 rose to 3.3%in 2002-03; and life insurance has emerged as the dominant contributor to this growth.The industry presented a huge opportunity. Life insurance penetration, for instance, wasat an abysmal 22% of the insurable population. However, private players have had to riseto many challenges. They were faced with attitudinal barriers towards the category andthe perception that insurance was only a tax saving tool. Insurance per se had lost it basicrationale: protection. It wasn‟t surprising then that its potential lay frozen and unexploited.The challenge for private insurance players was to change the established category driverand get customers to evaluate life insurance as an investment-cum-protection tool.
-25-PREMIUM UNDERWRITTEN BY LIFE INSURERSThe life insurance industry recorded a premium income of Rs.82854.80 crore duringthe financial year 2005-06 as against Rs.66653.75 crore in the previous financial year,recording a growth of 24.31 per cent. The contribution of first year premium, singlepremium and renewal premium to the total premium was Rs.15881.33 crore (19.16 percent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36 percent),respectively. In the year2000-01, when the industry was opened up to the privateplayers, the life insurance premium was Rs.34,898.48 crore which constituted of Rs.6996.95 crore of first year premium, Rs. 25191.07 crore of renewal premium and Rs.2740.45 crore of single premium. Post opening up, single premium had declined fromRs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in 2002-03 with thewithdrawal of the guaranteed return policies. Though it went up marginally in 2003-04 toRs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a significant shiftwith the single premium income rising to Rs. 10336.30 crore showing 74.11 per centgrowth over 2003-04.(Rs. lakh)
-27-(20.75) (20.85)Total PremiumLIC 6353342.70 7512728.98(15.63) (18.25)Private Sector 312032.63 772750.82(178.83) (147.65)Total 6665375.33 8285479.80(18.91) (24.31)1.3 Brief Review of Scenario – InsuranceInsurance in India started without any Regulation in Nineteenth century.It was story of a typical colonial era. A few British companies dominatedthe market mostly in large urban centers.Insurance was nationalized mainly on 3 counts First, Indian lives were not insured.Second, even if they were insured, they were treated as substandard lives and extrapremium was charged. Third, there were gross irregularities in the functioning of Lifeinsurance was nationalized in the year 1956, and then general insurance was
-28-nationalized in the year 1972. In 1999, the private insurance companies were allowedback again into insurance sector with maximum cap of 26 percent foreign holding.1818 The British introduce to India, with the establishment of the Oriental LifeInsurance company in Calcutta.1850 Non life insurance debuts, with Triton Insurance Company.1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer1907 Indian mercantile Insurance is the first Indian non-life insurer.1912 The Indian life assurance companies‟ act enacted to regulate the lifeinsurance business.1938 The insurance act, which forms the basis for most current insurance laws,replaces earlier act.1956 Life insurance nationalized, government takes over 245 Indian and foreigninsurers and provident societies.1956 Government sets up LIC1972 Non life insurance nationalized, GIC set up.1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set upto draw up a blue print for insurance sector reforms.1994 Malhotra Committee recommends re-entry of private players, autonomy otPSU insurers.1997 Insurance regulator IRDA (Insurance Regulatory and DevelopmentAuthority) set up.2000 IRDA starts giving licensed to private insurers
-29-2001 ICICI Prudential Life Insurance came into the market to sell a policy.2002 Banks were allowed to sell insurance plans, as TPAs enter the scene,insurers start settling non-life claims in the cashless mode.1.4 The Insurance Regulatory and Development Authority (IRDA):Reforms in the Insurance sector were initiated with the passage of the IRDA Bill inParliament in December 1999. The IRDA since its incorporation as a statutory body inApril 2000 has fastidiously stuck to its schedule of framing regulations and registeringthe private sector insurance companies.The other decisions taken simultaneously to provide the supporting systems to theinsurance sector and in particular the life insurance companies were the launch of theIRDA‟s online service for issue and renewal of licenses to agents.The approval of institutions for imparting training to agents has also ensured that theinsurance companies would have a trained workforce of insurance agents in place to selltheir products, which are expected to be introduced by early next year.Since being set up as an independent statutory body the IRDA has put in a framework ofglobally compatible regulations. In the private sector 12 life insurance and 6 generalinsurance companies have been registered.
-30-With the demographic changes and changing life styles, the demand for insurance coverhas also evolved taking into consideration the needs of prospective policyholder forpackaged products. There have been innovations in the types of products developed by theinsurers, which are relevant to the people of different age groups, and suit theirrequirements. Continued innovations in product development has resulted in a wide rangeof flexible products to meet the requirements for cover at different stages of life -today avariety of products are available ranging from traditional to Unit linked providingprotection towards child, endowment, capital guarantee, pension and group solutions. Anumber of new products have been introduced in the life segment with guaranteed additions,which were subsequently withdrawn/toned down; single premium mode has beenpopularized; unit linked products; and add-on/riders including accidental death;dismemberment, critical illness, fixed term assurance risk cover, group hospital andsurgical treatment, hospital cash benefits, etc. Comprehensive packaged products havebeen popularized with features of endowment, money back, whole life, single premium,regular premium, rebate in premium for higher sum assured, premium mode rebate, etc.,together with riders to the base products.1.5 Historical PerspectivePrior to 1956 -242 companies operating1956 -Nationalization- LIC monopoly player -Government control2001 -Opened up sector
-31-1.6 Contribution to Indian Economy Life Insurance is the only sector which garners long term savings. Spread of financial services in rural areas and amongst socially less privileged. Long term funds for infrastructure. Strong positive correlation between development of capital markets andinsurance/pension structure. Employment generation.1.7 Insurance Industry prior to de-regulationPrior to deregulation in 2000, market was a public monopoly. Public Monopoly- 2000 Offices- Over 800,000 agents Distribution through tied agents only Sales approach primarily on a tax savings platform
-32- Traditional style product offering : Endowment and money back plans Inadequate and inflexible products Pensions: Small part of product offer Limited focus on customer needs1.8 Improving Service StandardsPre Deregulation – Limited DistributionPost Deregulation – Service through DistributionChannel Access Service Points Use of ITAdvisors BranchNetworkLimited use of ITMulti Channel Access Multiple ServicePointsUse of IT
-33-2. COMPANY PROFILEICICI Prudential Life Insurance Company Limited („the Company‟) ajoint venture between ICICI Bank Limited and Prudential plc of UK wasincorporated on July 20, 2000 as a company under the Companies Act, 1956 („the Act‟).The Company is licensed by the Insurance Regulatory and Development Authority(„IRDA‟) for carrying life insurance business in India.ICICI Prudential Life Insurance Company is a joint venture between ICICIBank, a premier financial powerhouse and prudential plc, a leading internationalfinancial services group headquartered in the United Kingdom (UK). The companybrings together the local market expertise and financial strength of ICICI Bank andPrudential‟s International life insurance experience. The company was granted aAdvisorsBrokers &Corporate agentsBancassuranceCall CentersEmailWebsiteBranchNetworkShorter timearound timeClaimsPolicy Issuance
-34-certificate of Registration by the IRDA on November 24, 2000 and eighteen days later,issued its first policy on December 12. ICICI Prudential was amongst the first privatesector insurance companies to begin operations in December 2000 after receivingapproval from Insurance Regulatory Development Authority (IRDA).From its early days, ICICI Prudential seemed to have the wherewithal for a large-scalebusiness. By March 31, 2002, a little over a year since its launch, the company had issued100,000 policies translating into premium income of approximately Rs. 1,200 million ona sum assured of over Rs.23 billion. When the company began its operations, the needwas to build a brand that was relatable to, symbolized trust and was easily recognized andunderstood. It launched a corporate campaign ICICI Prudential also made using thetheme of „Sindoor‟ to epitomize protection, trust, togetherness and all that is Indian;endearing itself to the masses. The success of the campaign, „the calling card of thecompany‟ saw the brand awareness scores almost at par with its 40 year old competitor.The theme of protection was also extended to subsequent product and category specificcampaigns –from child plans to retirement solutions –which highlight how the companywill be with its customers at every step of life.From day one, the company has unflinchingly focused on being mass-market player,developing products, creating a distribution network and deploying resources that wouldfurther its goal. Apart from ramping up thoroughly training its advisors, the company hastwelve „Bancasurance‟ partners –the largest in the country. It swiftly revised and added toits initial range of products, pioneering market-linked products and pension plans, to offer
-35-customers the most flexible life insurance policies in the country. In February 2004,ICICI Prudential increased its capital base by Rs. 500 million, its ninth capital hike,bringing the total paid –up equity capital to Rs. 6,750 million. With the authorized capitalof the company standing at Rs. 12 billion, ICICI Prudential continues to have the highestcapital base amongst all life insurers in the country. The challenge ICICI Prudential nowfaces is to retain its top-notch position and continue to deliver the finest life insuranceand pension solutions to its ever-growing customer base.ICICI Prudential‟s equity base stands at Rs. 1185 crore with ICICI Bank and Prudentialplc holding 74% and 26% stake respectively. For the year ended March 31, 2006, thecompany garnered Rs.2, 412 crore of weighted new business premium and wrote 837,963policies. The sum assured in force stands at Rs.45, 888 crore. The company has anetwork of over 72,000 advisors; as well as 9 bancasurance partners and over 200corporate agent and broker tie-ups.ICICI Prudential is also the only private life insurer in India to receive a National InsurerFinancial Strength rating of AAA (Ind) from Fitch ratings. The AAA rating is the highestcredit rating, and is a clear assurance of ICICI Prudential‟s ability to meet its obligationsto customers at the time of maturity or claims.
-36-For the past five years, ICICI Prudential has retained its position as the No.1 privateinsurer in the country, with a wide range of flexible products that meet the needs of theIndian customer at every step in life.Beginning operations in December 2000, ICICI Prudential‟s success has been meteoric,becoming the number one private life insurer within months of launch. Today, it has oneof the largest distribution networks amongst private life insurers in India, with branchesin 54 cities. The total number of policies issued stands at more than 780,000 with a totalsum assured in excess of Rs.160 billion.ICICI Prudential closed the financial year ended march 31, 2004 with a total receivedpremium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20billion. New business premium income shows a 106% growth at Rs. 7.5 billion, drivenmainly by the company‟s range of unique unit-linked policies and pension plans. Thecompany‟s retail market share amongst private companies stood at 36%, making it clearleader in the segment. To add to its achievements, in the year 2003/04 it was adjudgedMost Trusted Private Life Insurer (Economic Times „Most Trusted Brand Survey‟ by ACNielsen ORG-MARG). It was also conferred the „Outlook Money-Best Life Insurer‟award for the second year running. The company is also proud to have won Silver atEFFIES 2003 for its „Retire from work, not life‟ campaign. Notably, ICICI Prudentialwas also short-listed to the final round for its „Sindoor campaign in EFFIES 2002.
-37-ICICI Prudential‟s success is rooted in its philosophy to always offer the customer achoice. This has been the driving force behind its multi-channel distribution strategy,which includes advisors, banks, direct marketing and corporate agents. In fact, ICICIPrudential was the first life insurer to invest in multiple channels and offer the customerchoice and access; thus reducing dependency on any one channel, great strides in theretirement solutions and pensions market.The Company‟s penetration of the retirement market was driven by the focused approachtowards creating awareness through sustained campaign; „Retire from work, not life‟.Within six months, the campaign rewarded ICICI Prudential with an increased share of23% of the total pensions market and 78% amongst private players. ICICI Prudential hasone of the largest distribution networks amongst private life insurers in India, havingcommenced operations in 132 cities and towns in India, stretching from Bhuj in the westto Guwahati in the east, and Jammu in the north to Trivandrum in the south.The company has 9 bank partnerships for distribution, having agreements with ICICIBank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and someco-operative banks, as well as over 200 corporate agents and brokers, it has also tied upwith NGOs, MFIs and corporates for the distribution of rural policies. ICICI Prudentialhas recruited and trained more than 72,000 insurance advisors to interface with andadvise customers. Further, it leverages its state-of-the-art IT infrastructure to providesuperior quality of service to customers.
-38-About CompanayICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, apremier financial powerhouse, and Prudential plc, a leading international financialservices group headquartered in the United Kingdom. ICICI Prudential was amongst thefirst private sector insurance companies to begin operations in December 2000 afterreceiving approval from Insurance Regulatory Development Authority (IRDA).ICICI Prudential Lifes capital stands at Rs. 4,793 crores (as of June 30, 2012) with ICICIBank and Prudential plc holding 74% and 26% stake respectively. For the period April 1,2012 to June 30, 2012, the company has garnered total premium of Rs 2,385 crores andhas underwritten over 13 million policies since inception. The company has assets heldover Rs. 70,000 crores as on June 30, 2012.ICICI Prudential Life Insurance has maintained its focus on offering a wide range offlexible products that meet the needs of the Indian customer at every step in life.
-39-About the PromotersICICI Bank (NYSE:IBN) is India‟s second largest bank with an asset base ofRs.2513.89 billion as on March 31, 2006. ICICI Bank provides a broad spectrum offinancial services to individuals and companies. This includes mortgages, car andpersonal loans, credit and debit cards, corporate and agricultural finance. The Bankservices a growing a customer base of more than 17 million customers through a multichannel access network which includes over 620 branches and extension counters, 2200ATMs, call centers and internet banking (www.icicibank.com)PRUDENTIAL plc, Established in London in 1848, through its business in the UKand Europe, the US and Asia, provides retail financial services products and services tomore than 16 million customers, policy holder and unit holders world wide. As ofDecember 31, 2005, the company had over US$ 400 billion in funds under management.Prudential has brought to market an integrated range of financial services products thatnow includes life assurance, pensions, mutual funds, banking, investment managementand general insurance. In Asia, Prudential is the leading European life insurance companywith a vast network of 23 life and mutual fund operations in twelve countries –China,Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore,Taiwan, Thailand and Vietnam.AchievementsBeginning operations in December 2000, ICICI Prudential‟s success has beenmeteoric, becoming the number one private life insurer within months of launch. Today,
-40-it has one of the largest distribution networks amongst private life insurers in India, withbranches in 54 cities. The total number of policies issued stands at more than 780,000with a total sum assured in excess of Rs.160 billion.ICICI Prudential closed the financial year ended march 31, 2004 with a total receivedpremium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20billion. New business premium income shows a 106% growth at Rs. 7.5 billion, drivenmainly by the company‟s range of unique unit-linked policies and pension plans. Thecompany‟s retail market share amongst private companies stood at 36%, making it clearleader in the segment. To add to its achievements, in the year 2003/04 it was adjudgedMost Trusted Private Life Insurer (Economic Times „Most Trusted Brand Survey‟ byACNeilsen ORG-MARG). It was also conferred the „Outlook Money-Best Life Insurer‟award for the second year running. The company is also proud to have won Silver atEFFIES 2003 for its „Retire from work, not life‟ campaign. Notably, ICICI Prudentialwas also short-listed to the final round for its „Sindoor campaign in EFFIES 2002.
-41-In Keeping with its belief that a happy customer is the best endorsement, ICICIPrudential has embraced the „SIX SIGMA‟ approach to quality, an exercise that beginsand ends with the customer from capturing his voice to measuring and responding to hisexperiences. This initiative is currently helping the company improve processes,turnaround times and customer satisfaction levels. Another Novel introduction is theICICI Prudential Lifestyle Rewards Club, India‟s first rewards programme for LifeAdvisors; it allows ICICI Prudential Advisors to redeem points for items ranging fromkitchenware to gold, white goods, and even international holidays.
-42-PromotionICICI Prudential is a case study in how advertising and marketing can play a vital role inre-shaping an industry. It has demonstrated how an industry where the customer wasnothing more than a policy number has changed to one where „customer preference‟ rulesthe roost.Brand-building in a complex category like life insurance is an uphill and multi-facetedtask. At the time of launching operations, the communications task was to buildcredibility, so as to give the customer the confidence that it was „a company that could betrusted to invest funds with‟. The aim was to encourage people to view insurance not as acompulsory tax saving instrument, but as a means to lead a worry-free, secure life and inthe process, create the differentiator for brand ICICI Prudential.The brand proposition for all the campaigns was reflected in the line: „Suraksha: Zindagike har kadam par‟. The campaign featured a significant competitive advantage, the soundfinancial backing and credentials of ICICI Prudential, and showcased products fromdifferent segments. The advertising idea was encapsulated in the symbol of protection –the „Sindoor‟. This campaign contributed extensively to raising brand awareness andcreating a distinctive identity for the company.
-43-The Company recently tied up with the Forbes Six Sigma rated Dabbawalla organizationin Mumbai for a direct marketing exercise. In a Unique effort to create awareness about atax saving product, the company attached a creative of a bitten apple to Mumbai‟subiquitous lunchboxes. It worked wonderfully with Mumbai‟s office-goers and one thattranslated into substantial business for the company.Brand ValuesMarket Research reveals that the values people associate with ICICI Prudential are,indeed, those that the company hopes to project: lifelong protection and value for money.The core value is protecting your loved ones, throughout life‟s ups and downs. It is apowerful proposition; one, which ICICI Prudential, is taking into the market place.
-44-DISTRIBUTION SYSTEMTied AgencyTied Agency is the largest distribution channel of ICICI Prudential, comprising a largeadvisor force that targets various customer segments. The strength of tied agency lies inan aggressive strategy of expanding and procuring quality business. With focus on sales& people development, tied agency has emerged as a robust, predictable and sustainablebusiness model.Bancassurance and AlliancesICICI Prudential was a pioneer in offering life insurance solutions through banks andalliances. Within a short span of two years, and with nearly a large number of partners,B & A has emerged as a vital component of the company‟s sales and distribution strategy,contributing to approximately one third of company‟s total business.The business philosophy at B&A is to leverage distribution synergies with our partnersand add value to its customers as well as the partners. Flexibility, adaptation andexperimenting with new ideas are the hallmarks of this channel.
-45-CUSTOMER SERVICE AND OPERATIONSThe Operations department oils the work processes between the customer and thecompany to ensure consistent and quality service to the customer. To streamline theoperations, the Operations department interfaces between the clients and the agents, thebranches and the underwriters, and manages work processes.The Vision at Customer Service is to deliver „World Class Service‟ at every opportunity.Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and QueryResolution Unit are all committed to providing effective solutions to over lakhs ofcustomers across the country.Information TechnologyThe Information Technology function at ICICI Prudential is committed to enablebusiness through the use of technology. It is segmented into 4 groups to enable highestlevels of delivery to the customers: Life Asia Solutions Group that provides flexibility indesigning better product offerings to end-users, the Solutions Group- Web that providesreal-time information to customers and is responsible for customer relationshipmanagement, IT Architecture & Corporate Solutions Group is in charge of developingand maintaining a blueprint for the IT architecture for the enterprise as a whole. Thisteam works as an in house R&D Solution Group, exploring new technological initiatives
-46-and also caters to information needs of corporate functions in the organization. ITInfrastructure group is responsible for providing hardware, software, network services tothe whole organization. This group runs the Digital Nervous System of the Enterprise atthe highest levels of efficiency and provide robust, scalable and highly available platformfor deployment of business application.MarketingThe Marketing function at ICICI Pru covers an array of activities - brand and mediamanagement, channel support, direct marketing and corporate communications. TheBrand and Communications team is in charge of advertising, consumer research, mediaplanning & buying and Public Relations; that helps develop and nurture ICICIPrudentials corporate identity while effectively communicating its varied productofferings to the customer. Channel marketing provides support to the sales force bystreamlining the design and development of collaterals and sales tools across distributionchannels. The Direct marketing team was set up to generate high quality leads forprofitable business. The team achieves this through target database acquisition andcommunicating customized product information through e-mailers, telemarketing andinnovative direct mailers.
-47-FinanceFinance function in ICICI Prudential is committed to create an infrastructure that isaligned to shareholder expectations. Finance basically comprises of four functions. .Corporate Planning and MIS provide feedback on business strategies. This includesdriving the budgeting process, providing strategic inputs for decision-making andmanagement reporting and analysis. The Accounts function includes preparation andmaintenance of financial records, funds management, and expense processing andtreasury operations. Compliance ensures that every action is within the regulatoryframework. This includes reviewing compliance requirements and supporting the ethicalframework of ICICI Pru life. Internal audit provides assurance to the management overthe organizations control framework and includes process risk management, informationsecurity assessment and business continuity assessment.Human ResourceThe people strategy of ICICI Prudential is “To build a committed team with a culture ofinnovation, learning and growth. The Human Resource Function at ICICI Prudentialdrives the people strategy of the business. With its initial focus on operational excellenceto deliver benefits and services to staff members, HR is now committed to buildingcapability through state of the art processes. A robust performance management system,compensation system and a segmented training architecture enable it to deliver value tothe organization.
-48-Business ExcellenceThe Business Excellence function is committed to building a quality mindset across theorganization. ICICI Prudential is the first organization in the Insurance Industry that hasadopted the Six Sigma Methodology for process efficiency and measurement. The teamis also driving the Malcolm Baldrige framework across the organization, an interventionthat examines management of key inputs for Business Excellence.BancassuranceOne of the most significant advances in the financial services sector over the past coupleof years has been the growth of Bancassurance – which, in simplest terms, means thedistribution of insurance products through a bank‟s distribution channels. In other words,Bancassurance is a service which can fulfill both banking and insurance needs at thesame time.Banc assurance as a concept first began in India with the opening up of the insuranceindustry to private sector participation in December 1999 which saw the entry of 20 newplayers - with 12 in the life insurance sector and 8 in the non-life sector. Bancassurancehas also seen significant rise in other Asian markets. For example, Bancassuranceaccounted for 24% of new life insurance sales by „weighted‟ premium income inSingapore in 2002. This is a significant increase on the equivalent 2001 statistic of 15%and is as a result of growth in significant bank-centric Banc assurance operations.
-49-Although the concept of Bancassurance looks simple enough, it is far from that in reallife practice. Legislative differences, consumer behavior, impact of history and culture,product complexity, employee work culture and many such other factors have contributedto significant differences in results across countries. For example, in France and Spain 60%to 80% of life insurance products are sold through bank branches compared to 10% inUK and USA.Bancassurance ModelsGlobally we have 4 kinds of Bancassurance business models:Distribution alliance between the insurance company and the bankJV between the twoMerger between bank and insurerBank builds or buys own insurance productsMost of the Bancassurance operations in India fall into the first model, which in a way isquite a prudent decision. The Indian Bancassurance scene as of now looks as promisingas perilous, being a vast, unexplored and uncharted expanse. As banks are quite riskaverse, it is but natural for them to withhold from making any long term commitment,which would be quite costly if the Bancassurance business runs into trouble. In terms ofthe present regulatory framework, one bank can tie-up with only one life and one non-lifeinsurer, while insurers have the choice to tie-up with any number of banks. We also have
-50-examples of joint ventures between the bank and insurer such as SBI Life and ICICIPrudential.Stages in Policy Issuance1) ProposalA Proposal Stage is the First stage before the policy is issued at COPS. At this stage, theapplication form is received by COPS, but it is pending for issuance due to furtherclarifications required from the customer.2) LoginA proposal which is complete i.e., duly filled with all necessary documents attached to it& accepted by the Branch ops, is called a Login3) RejectAn Application gets rejected at the Branch Ops level due to necessary details not filled inthe form or necessary documents not submitted is a Reject. It is then sent back to theAdvisor for completion.
-51-4) IssuanceIssuance means a policy that is issued to the Customer by Central Ops.5) Decline StatusWhen a customer refuses to take a policy post login but before Issuance is called aDecline6) CancellationWhen the cheque given by the customer bounces, it amounts to cancellation of the policy.7) LapseA policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.8) FreelookPost issuance of the policy, the policyholder has the option to turn down the policy within15 days from the date of issuance. This period of 15 days is called Freelook Period.9) Surrender: When a customer wants to discontinue with the policy.
-52-The joint strengthsA powerful joint venture partnership with each carrying a set of strengthscomplementing each othersReputationInsuranceexpertiseProductDistributionOperationsBrand strengthInfrastructureCustomer baseLocal knowledgeMarket InnovatorsPRUDENTIALICICI
-53-2.4 PRODUCT/SERVICES PROFILEICICI Prudential‟s ultimate promise is financial security. A strong brand certainly boostssale, but without customer-friendly, innovative products, even the best brand would notlast long.ICICI Prudential‟s product range has been developed on the understanding that differentpeople have their own sets of needs at various stages of their lives. It has thus built aflexible portfolio of products that can be customized to cater to varying needs of peopleat each stage, and thus ensure protection in every step of life. The company‟s philosophyhas been to help customers understand their financial needs and work closely with themto customize a product that would meet. Advisors can offer a complete range of products–Savings plans, Child plans, Market-linked plans, Protection plans, and Retirement plans– and tailor a flexible solution to meet customers‟ changing needs at every stage of life.In fact, ICICI Prudential was the first to un-bundle product benefits, pioneering theconcept of „riders‟ and soon after introduce comprehensive market-linked and retirementplans.ICICI Prudential has launched a handful of products that are analyzed below:
-58-ICICI Prudentials life insurance products may be loosely categorized under three forms:pure life insurance products without an investment angle to them; a product that is a mixof a cumulative investment scheme and an insurance product; and, finally, standardproducts such as money-back and endowment policies.Single Premium Bond: The Single Premium Bond is the name of a policythat combines the features of an investment in a cumulative deposit scheme with that ofan insurance product.Policy-holders are required to pay a one-time premium based on a target sum assured. Atmaturity, the policy-holder gets the sum assured and guaranteed additions that work outto a compound return of 4.5 per cent the sum assured.The insurance part of the package comes in the form of death benefits that are paid in thecase of the demise of the policy-holder. The size of the death benefit is linked to thenumber of years left for the policy to expire. On maturity date, the maturity value is alsopaid in addition to the death benefits that would have been paid earlier.Life Guard policies: The company offers two pure life insurance products that havean umbrella name, Life Guard. One of them involves a one-time premium for which there
-59-are no maturity benefits. The other requires regular premium payments that are returnedat the end of the policy. Life Guard offers absolutely no investment-related return and issuitable for individuals looking for an unadulterated insurance package.Insurance Solutions for IndividualsICICI Prudential Life Insurance offers a range of innovative, customer-centric productsthat meet the needs of customers at every life stage. Its products can be enhanced with upto 5 riders, to create a customized solution for each policyholder.Savings SolutionsSecure Plus is a transparent and feature-packed savings plan that offers 3 levelsof protection.Cash Plus is a transparent, feature-packed savings plan that offers 3 levels ofprotection as well as liquidity options.Save „n‟ Protect is a traditional endowment savings plan that offers lifeprotection along with adequate returns
-60-CashBak is an anticipated endowment policy ideal for meeting milestoneexpenses like a child‟s marriage, expenses for a child‟s higher education orpurchase of an asset.LifeTime and LifeTime II offer customers the flexibility and control tocustomize the policy to meet the changing needs at different life stages. Each offer 4fund options –Preserver, Protector, Balancer and Maximiser.LifeLink Super is a single premium Unit Linked Insurance Plan whichcombines life insurance cover with the opportunity to stay invested in the stockmarket.
-61-Premier Life is a limited premium paying plan that offers customers lifeinsurance cover till age of 75.InvestShield Life is a Unit Linked plan that provides capital guarantee on theinvested premiums and declared bonus interest.InvestShield Cash is a Unit Linked plan that provides capital guarantee on theinvested premiums and declares bonus interest along with flexible liquidityoptions.InvestShield Gold is a Unit Linked plan that provides capital guarantee on theinvested premiums and declares bonus interest along with limited premiumpayment terms.
-62-Protection SolutionsLifeGuard is a protection plan, which offers life cover at very low cost. It isavailable in 3 options –level term assurance with return of premium and singlepremium.HomeAssure is a mortgage reducing term assurance plan designed specificallyto help customers cover their home loans in a simple and cost-effective manner.Child PlansSmartKid education plans provide guaranteed educational benefits to a childalong with life insurance cover for the parent who purchases the policy. Thepolicy is designed to provide money at important milestones in the child‟s life.SmartKid plans are also available in unit-linked form – both single premium andregular premium.
-63-Retirement SolutionsForeverLife is a retirement product targeted at individuals in their thirties.SecurePlus Pension is a flexible pension plan that allows one to selectbetween 3 levels of cover.Market-linked retirement productsLifeTime Pension II is a regular premium market-linked pension plan.LifeLink Pension II is single premium market linked pension plan.InvestShield Pension is a regular premium pension plan with a capitalguarantee on the investible premium and declared bonusesGolden Years: is a limited premium paying retirement solution that offers taxbenefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation andpayout stages.
-64-Health SolutionsHealth Assure and Health Assure Plus: Health Assure is a regularpremium plan which provides long term cover against 6 critical illnesses byproviding policy holder with financial assistance, irrespective of the actualmedical expenses. Health Assure Plus offers the added advantage of anequivalent life insurance coverCancer Care: is a regular premium plan that pays cash benefit on thediagnosis as well as at different stages in the treatment of various cancerconditions.Group Insurance SolutionsICICI Prudential also offers Group Insurance Solutions for companies seeking toenhance benefits to their employees.ICICI Pru Group Gratuity Plan: ICICI Pru‟s group gratuity plan helpsemployers fund their statutory gratuity obligation in a scientific manner. The plan canalso be customized to structure schemes that can provide benefits beyond thestatutory obligations.
-65-ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible definedcontribution superannuation scheme to provide a retirement kitty for each member ofthe group. Employees have the option of choosing from various annuity options oropting for a partial commutation of the annuity at the time of retirement.ICICI Pru Group Term Plan: ICICI Pru‟s flexible group term solution helpsprovide affordable cover to members of a group. The cover could be uniform or basedon designation/rank or a multiple of salary. The benefit under the policy is paid to thebeneficiary nominated by the member on his/her death.Flexible Rider OptionsICICI Pru Life offers flexible riders, which can be added to the basic policy at amarginal cost, depending on the specific needs of the customer.1. Accident and disability benefit: If death occurs as the result of anaccident during the term of the policy, the beneficiary receives an additionalamount equal to the rider sum assured under the policy. If the death occurs <2. Accident Benefit: This rider option pays the sum assured under the rideron death due to accident.
-66-3. Critical Illness Benefit: Protects the insured against financial loss in theevent of 9 specified critical illnesses. Benefits are payable to the insured formedical expenses prior to death4. Income Benefit: This rider pays the 10% of the sum assured to thenominee every year, till maturity, in the event of the death of the life assured.It is available in SmartKid, SecurePlus, and CashPlus.5. Waiver of Premium: In case of total and permanent disability due to anaccident, the premiums are waived till maturity. This rider is available withSecurePlus and CashPlus.DATA ANALYSIS AND INTERPRETATION1. Age of the respondentsPARTICTULARS NO.OF.RESPONDENT PERCENTAGELess than 25 11 11%25 - 35 40 40%35 - 45 20 20%Above 45 29 29%TOTAL 100 100
-67-020406080100Lessthan 2525 - 35 35 - 45 Above45TOTALAge of the RespondentsNO.OF.RESPONDENT PERCENTAGEANALYSIS:From the survey it was found that amongst 100 respondentsa) 11% of the respondents are less than 25 years old.b) 40% of the respondents are between 25 and 35 years of age.c) 20% of the respondents are between 35 and 45 years of age.d) 29% of the respondents are more than 45 years of age.
-68-2. Qualification of the respondents.PARTICUALRNO.OF.RESPONDENTPERCENTAGEGraduate 52 52%Post Graduate 29 29%Diploma 8 8%Other discipline 11 11%TOTAL 100 100%
-69-020406080100NO.OF.RESPONDENTPERCENTAGEQualification of the RespondentsGraduate Post Graduate DiplomaOther discipline TOTALANALYSIS:From the survey it was found that amongst 100 respondentsa) 52% of the respondents were graduateb) 29% of the respondents were post graduatec) 8% of the respondents were diplomad) 10% of the respondents were other discipline
-70-3) Occupation of the respondentsPARTICULARSNO.OF.RESPONDENTPERCENTAGEBusiness man 34 34%Professionals 18 18%Job holders 37 37%Others 11 11%TOTAL 100 100%
-71-020406080100NO.OF.RESPONDENTOccupation of the RespondentsBusiness man Professionals Job holdersOthers TOTALANALYSIS:From the survey it was found that amongst 100 respondentsa) 34% of the respondents are businessmen.b) 18% of the respondents are professionals.c) 37% of the respondents are job holders.d) 11% of the respondents are background.
-72-4) Average annual income of respondents.PARTICULARS NO.OF.RESPONDENT PERCENTAGEUp to 1 lakh 33 33%1 lakh - 3 lakh 43 43%3 lakh - 5 lakh 20 20%5 lakh & above 4 4%TOTAL 100 100%020406080100NO.OF.RESPONDENTAverage annual income ofrespondents.Up to 1 lakh1 lakh - 3 lakh3 lakh - 5 lakh5 lakh & aboveTOTAL
-73-5) Family size of respondentsPARTICULARS NO.OF.RESPONDENT PERCENTAGEBelow 5 members 50 50%5 - 10 members 32 32%Above 10 members 28 28%TOTAL 100 100%ANALYSIS:From the survey it was found that amongst 100 respondentsa) 33% of the respondents have an average annual income up to 1lakhb) 43% of the respondents have an average annual income from 1lakh to 3 lakhc) 20% of the respondents have an average annual income from 3lakh to 5 lakhd) 4% of the respondents have an average annual income above 5lakh
-74-FAMILY SIZE50%32%28%below 5 members5- 10 memberabove 10 memberANANLYSIS:From the survey it was found that amongst 100 respondentsa) 50% of the respondents are below 5 members.b) 32% of the respondents are between 5 to 10 members.c) 28% of the respondents are above 10 members.
-75-6) According to life insurance is.PARTICULARSNO.OF.RESPONDENTPERCENTAGERisk Coverage 10 10%Tax Savings 3 3%Good return 4 4%Security 3 3%All the above 80 80%TOTAL 100
-76-020406080100NO.OF.RESPONDENTLife Insurance isRisk Coverage Tax Savings Good returnSecurity All the above TOTALANALYSIS:From the survey it was found that amongst 100 respondentsa) 10% of the respondents say risk coverage.b) 3% of the respondents say tax savings.c) 4% of the respondents say good returns.d) 3% of the respondents say financial security.e) 80% of the respondents say all of the above.
-77-7) Awareness of ICICI Prudential life insurancePARTICULARS NO.OF.RESPONDENT PERCENTAGEYes 17 17%No 83 83%TOTAL 100 100%
-78-]ANALYSIS:From the survey it was found that amongst 100 respondentsa) 83% of the respondents say that they are aware of ICICIPrudential life insurance co.b) 17% of the say that they are unaware of ICICI Prudential lifeinsurance co020406080100NO.OF.RESPONDENTAwareness of ICICI PruYes No TOTAL
-80-0102030405060708090100Yes No TOTALINSURANCE AWARENESSNO.OF.RESPONDENTPERCENTAGEANALYSIS:From the survey it was found that amongst 100 respondentsa) 98% of the respondents say that they are aware of insurance.b) Only 2% are unaware of insurance.
-81-9) % of respondents who are under different plans of ICICI Prudential lifeinsurance co.PARTICULARS NO.OF.RESPONDENT PERCENTAGEInvest gain plan 41 41%Unit gain plan 36 36%Child gain plan 8 8%Whole life plan 15 15%Pension plan No NoTOTAL 100 100%
-82-INSURANCE PLANS OF ICICI PRUDENTIAL41%36%8%15%Invest gain planUnit gain planChild gain planWhole life planPension planANALYSIS:From the survey it was found that amongst 100 respondentsa) 41% of the respondents are under invest gain planb) 36% of the respondents are under unit gain planc) 8% of the respondents are child gain pland) 15% of the respondents are whole life plane) No body under pension plan
-83-10) % of respondents benefits of choosing the particular productsPARTICULARS NO.OF.RESPONDENT PERCENTAGERisk coverage 60 60%Additional benefit 20 20%Maturity date 12 12%Sum Assured 8 8%TOTAL 100 100%
-84-01020304050607080901001 2Benefits of Particular ProductsRisk coverageAdditional benefitMaturity dateSum AssuredTOTALANALYSIS:a) 36% of the respondents say that a benefit of choosing the particularProduct is for Safety of life.b) 20% of the respondents say that a benefit of choosing the particularproducts is for additional benefit to familyc) 12% of the respondents say that a benefit of choosing the particularproducts is for maturity dated) 8% of the respondents say that a benefit of choosing the particularproducts is for sum assured
-86-11) % of disadvantages in insurance planPARTICUALRS NO.OF.RESPONDENT PERCENTAGELiquidity 35 35%Lapsation 20 20%Unable to decide premium 19 19%High risk coverage 14 14%Fixed Term 12 12%TOTAL 100 100%
-87-020406080100NO.OF.RESPONDENTDisadvantages in Insurance PlansLiquidity LapsationUnable to decide premium High risk coverageFixed Term TOTALANALYSIS:From the survey it was found that amongst 100 respondentsa) 35% of the respondents say that disadvantages in insuranceplan are liquidity.b) 20% of the respondents say that disadvantages in insuranceplan are lapsation.c) 19% of the respondents say that disadvantages in insuranceplan is unable decide premium.d) 14% of the respondents say that disadvantages in insuranceplan are high risk coverage at high premium.e) 12% of the respondents say that disadvantages in insuranceplan is fixed term
-88-12) % of respondents who want to invest in these different avenues.PARTICUALRS NO.OF.RESPONDENT PERCENTAGERecurring Deposit 40 40%Equity Fund 25 25%Balanced Fund 10 10%Mutual Fund 11 11%Debt Fund 5 5%Cash Fund 9 9%TOTAL 100 100%
-89-INVESTMENT AVENUES40%25%10%11%5%9%R.DEquityBalanced fundMutual FundDebt FundCash FundANALYSIS:From the survey it was found amongst 100 respondentsa) 40% of respondents say that they want to invest in R.Db) 25% of respondents say that they want to invest in equityc) 10% of respondents say that they want to invest in balanced fundd) 11% of respondents say that they want to invest in mutual funde) 5% of respondents say that they want to invest in debt marketf) 9% of respondents say that they want to invest in cash
-90-CONCLUSIONSUnit – linked policies are a very valuable addition to the existing array of insuranceproducers. But, when sold to a wrong prospect they loose their importance. Thecompanies should take proper care that well trained and professional agents market theseproduct.In view of what was discussed above, I have made certain conclusions regarding thebuyer‟s behavior and how a company should approach its prospect buyer.The life insurance provides a range of wealth management services to its clients, butit is not making proper efforts in advertising the Policy features and benefits to theprospects.As a part of my summer training project I was required to do an analytical study ofdifferent responses by the people of different Age groups, Income groups andOccupational classes. On the basis data collected I have drawn the followingconclusions:Related to Age groups:i. The dominant age group is the group 29-38. Though the Age group 39-48 alsohas the same number of policyholders but if we see the number of people havingmore than 4 policies we will say that people belonging to this age group havemore policies. I mean that the people belonging to this age group are more likelyto buy insurance.ii. We observe a mixed trend in term of Preferred features of insurance product.
-91-Almost every age group says that Security of money is the prime concern. Itshows that company should try to convey the security feature more strongly.TRENDS SHOW THAT AS WE MOVE UP IN THE AGE GROUPiii. PEOPLE HAVE MORE FAITH ON GOVERNMENT (LIC). It means thatpeople with more age are more likely to take insurance from public sector.iv. Family/Friends emerged as the major reference group to buy decisions. Itmeans that people look for familiar and personalize counseling at the time ofpurchase.v. The findings show that people are mostly unaware of insurance as aninvestment product. The main reason of taking life insurance is Tax planning.Investment comes at 3rdplace.Related to Income group:i. AS THE INCOME GROWS PEOPLE USE TO BUY MORE POLICIES.The data collected shows that people with higher income buy more insurance.ii. People belonging to high-income group are more likely to buy from Privatecompanies. More than 50% people belonging to 5+ groups have policies fromprivate companies.
-92-iii. As the income group changes, the awareness level of people about insuranceincreases. There is an upward trend in this.iv. People use to take insurance as investment with the change in income group.v. It means people belonging to high income group have more interest in ULIP.Related to Occupation:i. Private and self-employed persons have higher number of policies. Thepersons who have private jobs have more income comparing to governmentemployees. If somehow we could know the type of policy a person already haveand then offering him some product which he do not have.ii. People having government jobs are more aware of Insurance terms andconditions. It shows the nature of buyer as government service people havelimited and fixed income so they plan their investment more analytically. So theyfollow Central route to persuasion.iii. AS MOST OF THE PERSONS BELONGING TO PRIVATE ARE 19-28AGE GROUP, SO WE CAN ALSO SAY THAT WE SHOULD OFFERULIP PRODUCTS TO THEM.iv. The persons belonging to Government job category take policies primarilyfrom LIC. The trend shows that private and self-employed people are more likelyto buy from Private companies.After working on this project I got a clear picture of the life insurance industry. Apartfrom this I got to know about ICICI Prudential. very closely. The market share is around1.1% and they have a target of 3% in the coming year.
-93-With the fact that the Indian economy zooming ahead at a breath-taking GDP growthrate of 8%, and expected to assume the primary dominance in the global economyalong with China by 2025, according to a Goldman Sachs forecast. Considering thistremendous potential stuffed in the Indian economy, and coupled with the fact thatjust 20% of the total Indian population is insured, which basically amounts to justabout 220 million Indians (assuming the Indian population is 1.1 billion at present).Therefore there is a huge scope for growth in the insurance business in India.With the purchasing power of the Indians masses shooting upwards, there isnothing but a clear ‘yes’ to the question of whether the insurance biggies can makeit a time worthwhile in the Indian sub-continent.From my entire findings I found out that people are not completely aware about ICICIPrudential. As it is primarily a new company so people don’t have much faith in thiscompany. The company should try to reach the untapped rural market and semi-urbanfor higher growth. We also know that LIC is no longer the only choice for thecustomers but due to its brand equity it is still doing its business. A lot of value addedservices is needed to be provided to have a growth.
-94-FINDINGSOn an analysis and evaluation of the data collected from the respondents thefollowing findings were found.Before establishment of private concerns the share of LIC was 22% hence there isa wide scope for private concerns to enter in to market.Total 100 respondents have been approached out of which 75 are the potentialrespondents who have shown interest for investment and finance planAbove 20% of respondents are shown interest for investment and financial planAbout 33.33% of respondents are not interest to give their personal records.About 12.67% of respondents have already been covered by other insurancecompanies.About 10% of respondents have given invalid records.About 10% of respondents are newly employed or trainees.About 10% of respondents interested for investment plan after knowing ICICIPRUDENTIAL LIFE INSURANCE products.
-95-RECOMMENDATIONS TO COMPANY:Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI invested, interms of work force, in terms of market share, in terms of no. of customers. All thesepositive stands of the company place at the number one position. On second aspectwhatever amount of money ICICI Prudential save, can be used to increase the no. ofpolicies, which will helpful to increase the market share of the company. Since thecustomers think about the companies in the industry, when they invest money in the lifeinsurance industry. So it‟s necessary to increase the market share of the company. Thereare some recommendations.Open some more branches in semi urban and rural area.ICICI Prudential has almost its branches in urban area or metros. So in order toincrease the no. of customer, ICICI Prudential should increase the approachtowards potential customers. For that it has to increase the branches in the semiurban cities like C, D grade cities. And the rural marketing is the best option forICICI Prudential to increase its base in the market
-96-Improve customer services.In order to take the advantage of being industry leader in private sector, ICICIPrudential has to improve its customer services. According to my experience inthe company, a good number of customers forget to pay their premium at time soit causes a big loss to the company. ICICI Prudential has already collaboratedwith the ICICI bank for its Bancassurance facility and then can include anotherfeature in it. ICICI bank can offer a bank account with the life insurance policy inwhich an ATM card will be provided. This card will have all the informationregarding the policy as like future premium payment dates, payment made, moneyvalue of the policy at that date, value of the unit linked plan and all otherinformation what the customer want. This will help the customer to pay premiumon time and save their losses. This will be mutually helpful for both sistercompanies, ICICI bank will get new account and ICICI prudential will be able tomore efficient services to their customers.
-97-Bring some unit linked life insurance plans in the market.Being a market leader doesn‟t ensure the leadership in the future. Since afterincrement in FDI from 26% to 49% all player will have the opportunity to capturethe market share. So in order to maintain its position ICICI Prudential should-Introduce some new market linked insurance plan, which will give a competitiveadvantage to the ICICI Prudential against its competitors.Trained the financial advisors more efficiently.In the changed scenario, more efficient training will be needed, so ICICIPrudential should provide good and efficient training to their financial advisors.Because they are the one who interact directly with the customers. So goodtraining will give them the right way to deal with the potential customers.
-98-APPENDIXQUESTIONNAIREDear Sir/Madam,I am a student of CERT, Meerut, conducting a marketing survey on “CONSUMERBEHAVIOUR AND CUSTOMER SATISFACTION of ICICI Prudential LIFEINSURANCE, IN Meerut, U.P.”. I request you to fill this questionnaire & I assure thatthis data will be used only for study purpose & it will be kept confidential.1. Name _________________________________2. Address ___________________________________________________________________________________________________3. Agea. Less than 25 c. 35-45b. 25 – 35 d. 45 and above4. Qualificationa. Graduate c. Diplomab. Postgraduate d. Other discipline
-99-5. Occupationa. Business c. Job holderb. Professional d. Other6. What is your average annual income?a. Up to 1 lakhb. 1 lakh to 3 lakhsc. 3 lakhs to 5 lakhsd. 5 lakhs and more7. Your family sizea. Below 5 membersb. 5 – 10 membersc. Above 10 members7. According to you life insurance is,a. A tax saving planb. A saving scheme with good returnc. A financial security for the familyd. Risk coveragee. All the above
-100-8. Have you taken any life insurance product of ICICI Prudential Life insurance?YES NOIf yes9. Which are in these?a. Unit gain planb. Invest gain planc. Whole life pland. Children plane. Pension planf. Others __________________10. Are you aware of the benefits in your policy?Yes NoIf yes what are they? Sum assured Additional benefits Maturity date Risk coverage
-101-11. According to you what are the disadvantages in an insurance plan? Lapsation Liquidity Fixed term Unable to decide your premium Unable to decide the sum assured High risk coverage at high premiums Other disadvantages12. In which of the following would you like to invest? Equity fund Debt fund Balanced fund Cash fund Mutual fund Recurring deposits13. Any suggestion for ICICI Prudential Life Insurance____________________________________________________________________________________________________________
-102-Thank you for sparing your valuable timeToll Free Help Line Namber
-103-BIBLIOGRAPHYMarketing Management by Philip Kotler, Pearson Education 2nded.Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8thed.IRDA JournalICICI Prudential Company magazinesNewspaper and Business magazinesWEBSITESwww.iciciprulife.comwww.google.co.in/indian insurance industrywww.irdaindia.org